Case study: Power House Lofts, Massachusetts
Leverage alternative financing models to reduce project costs and promote public-private collaboration.
Challenges • Adapting the vacant church building in line with contemporary residential standards. • Balancing the cost of restoration works with the market value of the proposed apartment units. • Scale of disrepair meant large amount of resources required to bring structure back into secure use. Intervention • The Pittsfield City Council recognised the benefit of restoring the historic structure to active use and its positive impact on the wider neighbourhood. • The City Council approved a tax incremental financing package for the scheme, whereby required tax payments for the site were frozen and incrementally paid back to the Council on an annual basis. • This payment model helped reduce short term costs for the developer, supporting the viability of the restoration project and ensuring that new residential units could be rented at the market rate.
Short-Term Impact • The former church has been converted to provide 10 loft units, which have since been sold to owner-occupiers at market value. • The converted lofts take advantage of the historic structures unique built form, providing high ceilings and arched windows. Long-Term Impact • The successful project has sparked further collaboration between public and private actors, with the council securing state funding to support CMT in delivering a similar project to convert the former at St. Mary of the Morningstar Church into 29 apartment units. • The incremental tax payment scheme will allow the City Council to recoup their financial investment in the long- term.
Massachusetts
• Originally constructed in the early 20th century for industrial use before conversion into a Catholic church. • Church building closed in 2008 due to reduced attendance. • Site lay vacant for ten years before being acquired by CT Management, who converted the vacant building for residential use.
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