[MassHistPres] Tax Credits for projects with adverse impacts not in the application

[Ralph Slate]

The original recommendation of the Springfield Historical Commission (SHC) was based on a presentation in 2011 at which there was no mention of the demolition of the adjacent commercial block. Support letters were requested and sent 15 different times (for different funding rounds) since the initial letter went out, with the applicant giving one, perhaps two update presentations which did not mention the demolition.


There was talk several years later about the demolition of the adjacent commercial block by the city, with the SHC giving feedback that to help the primary historic effort, it would be OK with a solution that included a parking structure on the site of the adjacent commercial block if said structure could preserve storefronts and a streetscape (this block is at the heart of the downtown area, at the corner of State and Main Streets, and the concern is that, beyond the loss of the historic structure, an open-air parking lot will both disrupt the historic streetscape and will negatively impact the historic structures down the street because the open air parking lot will impede pedestrians from venturing to those structures, making them economically unviable and thus eventually resulting in their demise.


The applicant did not make this presentation; it was made by a city employee.



After a the most recent request for a support letter, the applicant was called to give a status update (since this project has been on the books for 5+ years). There had been rumors that the adjacent commercial block would be demolished for an open-air parking lot, so the applicant was asked if this was part of the project. The applicant responded that it was. The applicant stated that they did not consider any alternatives to demolition because they felt that demolition was the best solution for them. The commission declined to offer a support letter for the latest funding round. 



The applicant then exerted political pressure, and the city's legal department issued a ruling that since the original application for tax credits did not include the demolition of the structure, the commission could be exposed to liability if it withdrew its support due to that factor. Faced with this implicit threat, the commission reluctantly voted to extend its support. 


This is further complicated by the fact that the main historic property in question is owned by the city's Redevelopment Authority but the project (and tax credits) is being pursued by a private group. The Redevelopment Authority has been the party mentioned to take the adjacent commercial block by eminent domain for demolition (it is currently owned by an unrelated party), then turning the property over to the private owner for 34 extra parking spaces for their project. 



My question is, are there any safeguards in place to monitor this kind of situation, where an applicant for tax credits acts in conjunction with another party in an effort to separate the negative impact of a project (i.e. demolition) from the positive impact (i.e. rehabilitation), specifically to avoid historic review? Especially when the applicant freely admits that they want the negative impact to happen - in fact, arguing that it is vital to their project?



Please note that I have first-hand knowledge of the events up until early 2016, and then my information is gathered from SHC minutes for this latest development.


Thanks,


Ralph Slate
Springfield, MA



On Fri, 27 Jan, 2017 at 10:48 AM, Roughan, Michael <Michael.Roughan at hdrinc.com> wrote:
 

To: Ralph Slate; MassHistPres MA
Ralph,

Was the recommendation of the SHC based on the historic tax credit application or other preliminary documents that allowed the SHC to infer that the historic structure now proposed for demo would have been left intact?

If your decision was based on documents other than the application, one would think any changes to that scope documentation would allow the SHC to reconsider your letter of support. 

.....Mike

Michael Roughan, AIA, EDAC, LEED AP

D +1.617.357.7725 M +1.617.784.6463


-----Original Message-----
From: masshistpres-bounces at cs.umb.edu [mailto:masshistpres-bounces at cs.umb.edu] On Behalf Of Ralph Slate
Sent: Friday, January 27, 2017 12:06 AM
To: MassHistPres MA
Subject: [MassHistPres] Tax Credits for projects with adverse impacts not in the application

The Springfield Historical Commission has supported the historic tax credit application of a particular hotel project in the city for a number of years. As each new round of credits comes up, the project needs an updated letter of support.

That proponent recently decided that in order to move forward, it would need to knock down a historic building next door to the property receiving tax credits for use as a parking lot for the structure receiving tax credits. Our city solicitor claims that this is not relevant to the tax credit application because the demolition is not included in the tax credit application (since they are not asking for tax credits for the demolition).

That seems like an incorrect opinion - the tax credits are going to a project which is now directly causing the demolition of a historic structure - so that demolition should be part of the overall project. 
The solicitor claims that if the Springfield Historical Commission withdraws its support for the project due to something not in the original tax credit application, this could expose the city and the commission to legal action by the developer.

Is there an obligation on the part of the developer to amend his application to include this demolition? What happens if he does not? Who oversees this?

Thanks,

Ralph Slate
Springfield, MA
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