New Bedford mayor seeks 10-year tax break for 47 apartments in vacant Nashawena Mill buildings

NEW BEDFORD New Bedford Mayor Jon Mitchell has asked the City Council to approve a 10-year property tax break for a developer who plans to turn the vacant power plant and office buildings of the Nashawena Mill complex on Belleville Avenue into 47 market rate apartments. The city puts the project at about $20 million.

The council sent the agreement to its Finance Committee on Oct. 22, and the committee is scheduled to take it up at 7 p.m. Nov. 9. The city's Tax Increment Financing Board voted in favor of it Oct. 6, Mitchell wrote in an Oct. 13 letter to the council.

What the break is worth

Under the proposed agreement, the owner, 620 Belleville Ave LLC, would keep paying full tax on the property's current assessed value of $716,100 and get a break on the tax tied to the value its work adds. The exemption would cover 90% of that added tax in the first year and 80% in years two through five, then drop to 75%, 60%, 40%, 20% and finally 10% in the 10th year.

The parcel pays $16,363 a year now, at the fiscal 2026 commercial and industrial rate of $22.85 per $1,000, according to a project overview by Joshua Amaral, director of the city's Office of Housing and Community Development. Over the 10 years, the overview projects, the developer would save about $576,326 and the city would collect an extra $382,689 on improvements that it says "may not (and are unlikely to) otherwise happen." The overview calls every figure approximate and assumes tax rates stay at current levels. The agreement's 2026 estimate puts the assessed value of the finished residential space at $8.46 million.

Mitchell wrote that the main goal is to let the developer apply for state tax credits under the Housing Development Incentive Program, which requires an approved local agreement first. "It is unlikely the project can proceed without the HDIP tax credits sought by the developer and the exemptions proposed here," he wrote. The program was created under Chapter 40V of the state's general laws, and the site lies inside the city's Housing Development Zone, which the council adopted in 2014 and amended in 2023.

The project

The site holds three empty buildings of the old Nashawena Mills complex: a turbine hall and a boiler building that made up its power plant, and the mill offices. Together they cover about 52,000 square feet on 1.3 acres on the west bank of the Acushnet River in the North End, the overview says. Seven apartments would go in the smaller office building and the rest in the main building, a mix of studios, one-bedroom and two-bedroom units. The plans keep the smokestack, restore the historic exterior, put a new roof on the main building and leave room for the planned extension of the New Bedford RiverWalk along the riverbank.

The agreement's pricing plan proposes starting rents of about $2,000 to $2,200 a month depending on unit type, set by market rates when the work is done. It counts all 47 as market rate units, with room to drop to 80% market rate if financing requires it, and the overview says up to 20% of the units, or nine, could be set aside below market under the program's rules. The owner would report each unit's rent and whether it is leased every year of the agreement.

The overview puts the total cost at about $20 million, or roughly $425,000 per apartment, to be paid with the state housing credits, federal and state historic rehabilitation tax credits, and a loan sized to rent income, "with a possible additional source yet to be determined." Work is targeted to start in 2027, once the credits are awarded and financing closes, and to take about 18 months. Mitchell's letter expects completion in fiscal 2029, with the exemption running through fiscal 2038.

Who is behind it

The company is headed by Jeff Glassman, chief executive of Darn It!, an apparel repair and refurbishment company in the mill next door at 686 Belleville Ave., and development partner Lisa Serafin Sheehan, who leads Athena Real Estate Development, the mayor's letter and the overview say. Glassman bought 620 Belleville in 2019 and also owns Hatch Street Studios, a former North End yarn mill he turned into workspace for artists and makers.

Approvals still ahead

The project also needs a special permit from the Zoning Board of Appeals, for a nonconforming use in the city's Flood Hazard Overlay District and to cut parking from 47 spaces to 39, the overview says. Because the land lies within historic tidelands, it needs a Chapter 91 license from the state Department of Environmental Protection too. As of Sept. 25 it was before the Planning Board for site plan review, and the Conservation Commission had issued an order of conditions. Because the owners are seeking historic tax credits, the Massachusetts Historical Commission and the National Park Service will review the work.

The resolution the council would adopt describes the project as "47 residential condominiums" and authorizes the mayor to sign the agreement with "Vanko Studio Architects," while the agreement itself, the mayor's letter and the overview describe 47 rental apartments and name 620 Belleville Ave LLC as the other party.

What happens next

If the Finance Committee recommends it and the full council adopts the resolution, the city would forward the application to the state Executive Office of Housing and Livable Communities for approval. The exemption would take effect the July 1 after the state's final certification, which includes a certificate of occupancy. If the owner defaults before final certification, the agreement becomes void, and after certification the city may ask the state to revoke the project's certification and sue to recover the value of the break.

The Finance Committee meets in the City Council Chambers, Room 214, at City Hall, 133 William St., and the meeting is streamed live and recorded. Amaral, City Solicitor Eric Jaikes, Glassman and Serafin Sheehan are invited. For accommodations, call the City Council Office at 508-979-1455 at least 48 hours ahead. The full council next meets Nov. 12.

Label: Reported by us, from the town's posted records.