Two companies are in line for tax breaks for the work they are doing renovating vacant buildings.
FALL RIVER – Two companies are in line for tax breaks for the work they are doing renovating vacant buildings.
The city’s TIF board will recommend that Ocean State Job Lot get a Tax Increment Financing agreement and that Alan Macomber receive a Tax Increment Exemption for his work renovating the old Durfee Tech.
Ocean State Job Lot is rehabilitating the former Shaw’s Market, 465 William S. Canning Boulevard, for a new, larger store. It purchased the plaza that contains the store and intends to fill the rest of the space with other businesses.
The TIF board recommended the City Council grant a 5-year TIF to Job Lot. With a TIF, the city agrees to partially exempt the increase in taxes due on improvements made to the property.
For Job Lot, the TIF will be worth 80 percent of the tax increase resulting from improvements to the property, 50 percent in years two and three and 20 percent in years four and five, according to Cathy Ann Viveiros, the city administrator.
A TIE was granted to 64 Durfee LLC, the listed owner of the former Durfee Tech, 64 Durfee St. Viveiros said it will grant an 80 percent exemption on increased taxes for the first five years and 20 percent for the second five.
If the council approves the agreements, Macomber will be able to apply to the state Department of Housing and Community Development for state tax credits available to developers creating market rate housing in gateway cities.
He is eligible to apply for up to $2 million in tax credits, Macomber said.
The plan is to create 55 apartments in the building, with 13 of those reserved for practicing artists. There will also be 20,000 square feet of commercial space, Macomber said.
“I have letters of intent from two tenants,” he said. “One is a retail tenant and one is in the creative and innovative realm.”
Work is scheduled to begin in January. He hopes to have apartments ready for residents in the first quarter of 2020, Macomber said.
“The city has been extremely supportive,” Macomber added. “That has really helped.”
Job Lot officials say they hope to have the store open by Memorial Day.
Email Kevin P. O’Connor at koconnor@heraldnews.com.