Galvan Presents to the IDA

The Galvan Foundation, in the person of Dan Kent, brought the proposed Depot District to the Hudson Industrial Development Agency (IDA) today, seeking a PILOT (payment in lieu of taxes). The terms of the PILOT being sought were not revealed--at least not to the public. Only an overview of the project was presented. Kent did say they were seeking a deviation from the standard PILOT.

The presentation to the IDA included much of the same information presented to the Planning Board, along with some new information. The building proposed for 75 North Seventh Street will have a total of 75 apartments 34 units for households earning between $23,000 and $42,000 a year; 20 units for households earning between $45,000 and $65,000 a year; and 21 market rate units.

In the presentation to the IDA today, it was revealed that of the 75 apartments, 39 would be one bedroom, 28 would be two bedroom, and 8 would be three bedroom. This building would also contain four 1,000-square-foot commercial spaces. Priority for these four spaces would be given to minority- and woman-owned businesses. 

The presentation also provided more detailed information about the rent structure of the "permanently affordable" units in the building:

One Bedroom

9 units at $533 

9 units at $686

10 units at $1,140

 

Two Bedrooms

7 units at $640 

7 units at $823 

7 units at $1,370 

Three Bedrooms 

1 unit at $740

1 unit at $951

1 unit at $1,580

 

The building proposed for 708 State Street would have 63 market rate units and five 1,000-square-foot commercial spaces. 

The presentation to the IDA focused on demonstrating how the project, which Kent asserted is in keeping with Hudson's Strategic Housing Action Plan, meets the criteria of the IDA.

On the topic of creating the retaining jobs, 347 direct and indirect jobs during construction and 65 direct or indirect jobs after construction are projected. Regarding investment of private capital, the figure $38.5 million was cited, $3 million of which is coming from the "development team." In the category of positive fiscal impact, $10.3 million in additional city and school tax revenue and IDA fees was cited. In terms of strengthening existing industries, $25 million invested in the county's construction industry was projected, along with mention of the affordable rents for minority- and women-owned businesses and the creation of new commercial spaces for restaurants and retail.

This picture was offered to demonstrate how the project would revitalize a distressed area.

As evidence of how the project would serve the needs of residents, the following benefits were named:

• Creating high quality, urgently needed housing
• Providing small businesses with affordable spaces in a vibrant district
• Increasing public green spaces
• Ensuring all spaces are handicap accessible

Alderman Rebecca Wolff (First Ward), who is on the IDA because she is minority leader, questioned the choice of making one of the buildings all market rate. Kent told her that one building (75 North Seventh State) will be publicly financed and one (708 State Street) privately financed. Alderman Tiffany Garriga (Second Ward), who is on the IDA because she is majority leader, expressed the opinion that both should be mixed income. Wolff went on to say she was concerned about a "strange dynamic" if one building "is subject only to the market." Dan Hubbell, who is the attorney for the project, explained that making a building mixed income required a more complicated financing structure. When Wolff suggested affordable units in 708 State Street could be subsidized by higher rents, Kent said that the market rate in Hudson is not high enough to subsidize low-income units.

As she did when the original proposal for 75 North Seventh Street was made, Garriga complained that the plan did not include enough three-bedroom apartments in the affordable categories. (There are only three.)

There were questions from Garriga and Wolff about job numbers, hiring practices, and workforce development, and Hubbell reminded them that this was mainly a residential project. Mayor Kamal Johnson asked about the Community Advisory Board that is being proposed for the project and was told it would provide guidance in planning the project and would have an ongoing role in seeing that the project "has a strong relationship with the rest of the community."

It is expected that the IDA will be considering this project and its PILOT request over the next two or three months.

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