The pending redevelopment of the Emery School building should be an overall boon for the City of Biddeford, even as it has created mixed emotions among residents who have raised valid concerns about the project.
Overall, the proposal by Developers Collaborative and Avesta Housing to create 24 affordable senior units in the building seems like a winning idea. The building has been sitting vacant since the St. Louis Daycare left in 2007, and plans to house social services there met with insurmountable financial barriers.
Finding a use for the building that will result in a financial return for the city is a plus. The city already pays between $15,000 and $25,000 each year to maintain the building and non-profit agencies would not have been able to pick up that cost.
It’s certainly best that the building go back on the tax rolls instead of being a financial burden on the city.
However, it seems that Biddeford has rushed into this deal with the developers and will be taking quite a loss. The assessed value of the building is approximately $1.6 million, but the city is selling it for $360,000.
As well, a 16-year Tax Increment Finance district has been agreed upon, during which time the city will receive approximately $200,000 in tax revenue resulting from the project. After that, the city will receive an estimated $40,000 each year, a figure based on the building’s estimated future assessed value.
The developers will earn up to $329,000 through this TIF deal, meaning the city might only realize about $31,000 total from the actual sale of the property. The rest of the revenue the city will receive will be from property taxes.
It’s hard to say whether waiting would have brought along a more favorable offer on the building, but we are willing to bet that the council did well in moving swiftly, considering the current real estate environment. Their quick action to approve the TIF and the 24 units, instead of the usual limit of 20, will allow the developers to meet an Oct. 28 deadline to apply for federal low income housing tax credits to help finance the deal. Without that money, it is most likely that the school will sit vacant for several more years.
In these economic times, it’s certainly best to get the building back on the tax rolls despite the significantly reduced price.
By selling the building, it will see new investment such as a sprinkler system and handicapped accessibility ramps ”“ improvements that would not have been made under the city’s watch. As well, the sale will keep the building from deteriorating into further disrepair.
Concerns have arisen about the use, however. Councilors Roch Angers and David Bourque have noted that this project, combined with recent development in the mill district, will flood the city’s housing stock with an additional 100+ apartment units in a short time period.
It is true that newer units such as these could draw renters away from other units, thereby hurting landlords throughout town who cannot get the same tax incentives and federal funding as Avesta/Developers Collaborative or the mill district.
Some low-income older people will find, however, that these “affordable units,” which will rent for $600 to $800 per month, including utilities, are actually similarly priced to other area apartments. For those who need a handicap-accessible apartment, the project will be a great opportunity. For other qualifiers, Emery School will be just one more option.
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