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Village Hill 2002 Northampton State Hospital CDAG InfrastructureCOMMUNITY DEVELOPMENT ACTION GRANT PROGRAM PRELIMINARY PROJECT ANALYSIS INFRASTRUCTURE IMPROVEMENTS NORTHAMPTON STATE HOSPITAL CITY OF NORTHAMPTON Table of Contents 1. Project Description 1 2. Need for Public Investment 2 3. Minimal Funding 3 4. Economic Impact 4 5. Job Creation 5 6. Open/Blighted Finding 6 7. Low/Moderate Income Residents 7 8. Match 8 9. Private Investment 9 10. _CD/ED Experience 10 rt?`:` 11. Secondary Economic Growth 11 41 12. Potential Property Value 12 -13. Current Unemployment 13 14. Site Ownership 14 15.. Permits Required 15 16. Local Elected Official Certification 16 App„er%d~x 1 Sources and Uses AppendiX-2: Match Documentation Appendix 3. Project,Description.,Phase One Report Appendix :4 Phasing Plan ,Appendix 5 -Market Study` Appendix 6:. Comprehensive'Economic" Development Strategy Project Proposal Listing Form Prepared by: Ws DEVELOPMENT 75 FEDERAL STREET • BOSTON, MA 02110 • PHONE 617-330-2000 • FAX 617-330-2001 'n COMMUNITY DEVELOPMENT ACTION GRANT PRELIMINARY PROPOSAL NORTHAMPTON STATE HOSPITAL 1. Project Description Northampton is a culturally and economically diverse community located within the heart of the five-college area of the Pioneer Valley in Western, Massachusetts. Home to Smith College, Northampton also serves as the county seat for Hampshire County. It is located at the intersection of a major east-west state highway (Route 9), which links Amherst and the University of Massachusetts with Northampton and the hill towns to the west. Northampton is comprised of a lively and vibrant downtown and several village centers, which are focal points for outlying residential neighborhoods. The community has a diverse economic base consisting of a strong retail and commercial sector and a manufacturing sector, featuring a mix of traditional manufacturers and innovative new industries. Situated on a prominent hill west of downtown, Northampton State Hospital (NSH) has been a significant landmark in its community since its opening in the late 1850s. Since the 1960s, societal changes have rendered large mental health institutions like Northampton obsolete. The closing of the hospital was viewed as an opportunity to address housing and economic development challenges facing the community. An ambitious reuse plan developed by the community includes an office and light industrial zone that provides much needed employment to the area; child and elder care; and a diverse range of residential types which are all dynamically tied together by a traditional "main street" within the mixed-use village center. The Village at Hospital Hill is a joint public-private redevelopment project, resulting from years of effort by the Commonwealth, the City of Northampton, the Massachusetts Development Finance Agency ("MassDevelopment"), The Community Builders, elected officials, advocates and concerned citizens, to provide a forward-looking, economically viable use for the core campus of NSH. Phase.I of the project comprises the redevelopment of a portion of the former state hospital, which now includes approximately 70 buildings on 124 acres of land. This phase includes the development of 109 dwelling units, by private partner The Community. Builders, and up to 152,000 square feet of commercial space by MassDevelopment, the quasi-public partner. Future phases will add approximately 325,000 square feet of commercial development and another 98 homes. The mix of residential and commercial uses is key to the success of the overall redevelopment project. Community Development Action Grant funding is sought to pay for the portion of site preparation needed to initiate the commercial and mixed-use development in this first phase. It includes construction of 3,620 linear feet of roads and walkways, and installation of sewer and water lines. Also included is demolition and disposal of 210,000 square feet of existing structures and a network of tunnels on the section of the NSH property planned for commercial use. While two other buildings are earmarked for reuse, the four to be demolished are obsolete and decayed. Phase I access is proposed via three access roads onto Route 66, with new roads connecting with Prince Street and Earle Street, respectively. The northbound and southbound approaches to this location will serve as the principal commercial and residential access points to the redeveloped campus. L CITY OF NORTHAMPTON NOVEMBER, 2002 PAGE1 COMMUNITY DEVELOPMENT ACTION GRANT PRELIMINARY PROPOSAL NORTHAMPTON STATE HOSPITAL 42. Need for Public Investment Capital costs to ready NSH for redevelopment are projected to exceed $20 million. These costs include planning and permitting, on-site infrastructure, environmental remediation, off-site infrastructure required under the Massachusetts Highway Department's Section 61 permit, and costs associated with building demolition. It was determined early in the planning process that the private sector would be unlikely to take on the replacement of obsolete infrastructure and the substantial demolition and environmental remediation which would be required to make the property redevelopable. A variety of public users were assigned property at the site, ranging from a homeless shelter administered by the local Housing Authority to 282 acres of land transferred to the Department of Food and Agriculture for use by the Smith Vocational-Agricultural High School. The remaining land was earmarked for a. mixed-use development featuring approximately 200 units of housing and 476,000 square feet of commercial space, with the assumption that this too would require significant investment of public funds in order to be feasible. Overall, the project represents a significant investment of public funds, and therefore is consistent with the clause in the CDAG legislation which encourages use of the program to "provide reinforcement for other housing or other community development-related investments by the commonwealth."' Over the life of the project, $14.3 million in grant funds will be needed to support the phased infrastructure improvements. A complete proforma showing sources and uses of funds is included as Appendix A, and a summary, addressing only the phase for which CDAG funding is sought, is shown below. Table 1. CDAG-Funded Project, Sources and Uses Phase I Infrastructure Uses Roads and Utilities Type D roads Walkways Sewer Water Clerk of the Works 1,169,575 251,350 228,375 305,950 409,172 Total Roads and Utilities 2,364,422 Demolition and Abatement abatement 103,410 Demolition 2,673,345 Total Demolition and Abatement 2,776,755 GRAND TOTAL, PHASE I INFRASTRUCTURE $5,141,177 Funding Sources Community Development Action Grant 2,000,000 DCAIMNI (Planning, Permitting, Development) 1,200,000 DCAIV 1(Environmental Remediation) 2,000,000 GRAND TOTAL, FUNDING SOURCES $5,200,000 Theron-site infrastructure improvements will be owned and maintained by the city of Noithampton. 1 Massachusetts General Laws, Chapter 121, Section 57A. CITY OF NORTHAMPTON NOVEMBER, 2002 PAGE 2 'COMMUNITY DEVELOPMENT ACTION GRANT PRELIMINARY PROPOSAL 0 NORTHAMPTON STATE HOSPITAL Minimal Funding The significant infrastructure costs associated with this project preclude its being undertaken solely by the private sector. Further, plans for the redevelopment have been repeatedly modified to reflect an increasingly complete understanding of the complexity of the project. Within the context of the original master plan adopted by the City in 1992, alternatives were evaluated on that basis of impact to historic resources, traffic, wetlands, and the objective of creating a campus-like mixed-use community. Most recently, a Market Study prepared by Crowley and Associates, Real Estate Appraisers and Consultants, recommended against an early plan for a hotel/convention center, against reuse of most existing historic buildings, and against marketing the commercial property primarily to technology-based uses. Even with these scaled-back plans, the Crowley study projects that absorption of the commercial space will occur over a decade, not the "several years" originally anticipated. This market analysis assumes the property will be delivered in developable, environmentally clean condition. The cost to make the entire property development-ready exceeds the projection for available funds by some $5. million. Phasing will permit MassDevelopment to use revenues from property leases and sales to offset development costs, and The Community Builders to do the same for the residential portion of the property. In addition, it is anticipated that the City will return to some public funding sources to complete these future phases. \,"R • 1: CITY OF NORTHAMPTON NOVEMBER, 2002 PAGE3 COMMUNITY DEVELOPMENT ACTION GRANT PRELIMINARY PROPOSAL NORTHAMPTON STATE HOSPITAL ~n T: 4. Economic Impact Since the 1980s, when the Commonwealth of Massachusetts began the process of consolidating and closing state hospitals, the city of Northampton has recognized the opportunities and the challenges that the state hospital property represents. The redevelopment plan, adopted by the Northampton Planning Board in 1992 as part of the town's master plan, culled components of four major studies and input from numerous public meetings. A mixed-use development was selected as the preferred alternative. Generally, the 1992 plan recommends economic expansion and diversification within the context of neighborhood development patterns, replicating the evolution of other parts of the community, and the need to preserve the unique historic and agricultural resources present at NSH. The Village at Hospital Hill willretain businesses by creating space for'existing, expanding companies in the region, and attract new businesses through the proactive marketing efforts of MassDevelopment, the state's. economic development authority. Planning for the NSH redevelopment has occurred within the context of a regional economic development strategy, 1994's "Plan for Progress," which features specific, tangible goals to foster private investment and economic development. The plan is updated annually by the Pioneer Valley Planning Commission as a Comprehensive Economic Development Strategy (CEDS). Among its goals is to develop regional business incubator and technology transfer programs. With nearly $1 million in funding from the Economic Development Administration, Springfield Technical Community College (STCC) established the Springfield Enterprise Center, a first-class incubator facility sited in one of Springfield's more economically distressed urban neighborhoods. Now, the prospect of a satellite campus, at NSH, is being contemplated. Also within the regional plan's context was the selection of industry sectors for MassDevelopment to target in marketing the new commercial space: technology-related media in particular, and technology and manufacturing in general. A Phase One Report prepared pursuant to the Massachusetts Environmental Policy Act (MEPA) for the NSH redevelopment project and released on April 30, 2002, documented the evaluation of a "no build" alternative as follows: The need for the proposed pr ject is, quite simply, that NSH represents an enormous opportunity for moving forward, and conversely, an enormous risk in not moving forward.... NSH has the potential to be a singular engine for economic development, centrally located in Massachusetts with good access to the major economic centers of the New England states.... Conversely, without a coherent andpragmatic development plan, NSH will become increasing blighted, its assets will deteriorate and decay, and it will become a public safety ha.Zard.' The synergy resulting from strong public support, backing from the municipal government, and participation by a respected quasi-public economic development agency and equally respected private non-profit housing developer assures the project's success. ,aa1 N,` . The Village at Hospital Hill Phase One Report, EOEA #12629, Epsilon Associates Inc., Maynard, April 30, 2002, p 3-3. CITY OF NORTHAMPTON NOVEMBER, 2002 PAGE 4 v hG r COMMUNITY DEVELOPMENT ACTION GRANT PRELIMINARY PROPOSAL NORTHAMPTON STATE HOSPITAL 5. Job Creation Overall, the redevelopment of Northampton State Hospital is expected to result in the creation or retention of 800 jobs. Phase I, with a total of 152,000 square feet of commercial space, is projected to create or retain 410 jobs, ranging from managerial and technical to retail sales jobs. Kollmorgen will retain 200 jobs in the City and potentially create 50 more as a result of their expansion. Projections by use are shown below. Table 2. Job Creation Projections, The Village at Hospital Hill A\ cra.-cA-miti ll - Square Fcet Johs Salary' Tutiil Pa\rO11 Light Industrial 80,000 170 $28,550 4,853,500 Retail n nnn 3n 1.51n R 9a5.n(1 ' Total 152,000 370 529,737 S 10,754;300 All planning documents and local economic development strategies which reference the NSH redevelopment project cite two different types of jobs that will be located at the site: new jobs, and jobs which will be retained in the region but would otherwise be lost because of a lack of suitable commercial space. "Limited inventory of industrial land readily available across the region with essential infrastructure services" was one of 10 "threats" to economic development identified in the Pioneer Valley Planning Commission Comprehen ive Economic Development Strategy Annual Report.' An example of this type of user is Kollmorgen Electro-Optical, a Northampton currently occupying 70,000 square feet on King Street. The firm recently won a new Navy contract for telescopic sights. The base contract and an option for additional sights is worth $25 million. Kollmorgen was also recently awarded a $9.6 million contract to build 12 submarine masts for the U.S. Navy. Another "threat" was the gap in availability and affordability of high-speed broadband Internet and telecommunication infrastructure in the region. Given the strength of the service sector in Hampden and Hampshire counties, and the growth in the new media sector, it is considered key to the health of the local economy that new media and service companies be supported. The commercial development at NSH is designed to do that. 2 U.S. Department of Labor, Bureau of Labor Statistics 2000 State Occupational Employment and Wage Estimates for 11tassachusetts. s Comprehensive Economic Development Strategy Annual Report, Pioneer Valley Planning Commission, June, 2002, p 51. CITY OF NORTHAMPTON NOVEMBER, 2002 PAGE5 i r' COMMUNITY DEVELOPMENT ACTION GRANT PRELIMINARY PROPOSAL NORTHAMPTON STATE HOSPITAL titl,a.~ 6. Open/Blighted Finding An open and blighted area determination was completed for the site of the former state hospital in 2001, allowing CDBG funded activities in this area of the city to be classified under a slums and blight criteria rather than exclusively economic development. The open and blighted. determination was prepared by the Office of Planning and Development and will be considered at regular intervals as redevelopment of the former hospital proceeds. Full redevelopment and build out at the site is anticipated to take up to 20 years. The blight analysis, adopted by the Northampton Planning Board on June 14, 2001, complied with the Massachusetts General Laws and HUD regulations. Generally, the 538-acre site was found to have deteriorated infrastructure and buildings, and infrastructure of insufficient capacity to support reuse. A copy of the vote on blight is shown below. I ',t 't l tl yr 17 t ~ J l J s tr~~ s r lN, J_ '.rapt - SLa . . Jam.. and uJrm~.h n dov .1 m! .n.S...... rl c nu-alu u~s>_.iYprr c n ntt aru ccof,m (l4(~-H1IS[r~.A rr 'S!~u hd u: nr:al h"i 61 Irh.!-'!... LCIJ.... "IP. il._ J.Ln, _m~no[.,a JUS d,_ ~oc..all td IsJ>_~.; J r-C)i umu, 2:1 Pa- ol e=r;b cl_J io.s_..r_ned 11 t.., .,a.j__ to ue - `-nak it t 1tJcl' 4"o' --2V0: 1 .1 ...mmn, Ls, I i c ct~.~,.,Cam 1 «t.._r;t; Iln s cc - ~.mJ.. '1i .,L-- tL Rio n G"rnld WAIsmofWh 'bmi Way, 1. . C r L~l w 7L I; L n c' 'hat h 1 r1i mr t a u1tJt.is Ius. a J b'ht T.uv ond.d LS. J.,u,i ➢1..S~~llT lent ;la CITY OF NORTHAMPTON NOVEMBER, 2002 PAGE 6 Kl COMMUNITY DEVELOPMENT ACTION GRANT PRELIMINARY PROPOSAL NORTHAMPTON STATE HOSPITAL 7. Low/Moderate Income Residents This project will benefit low- and moderate-income residents in two ways: by improving a blighted area in a neighborhood where a significant percentage of low- and moderate-income persons reside, and by providing jobs for such persons. Beyond the CDAG-funded project, the overall. redevelopment will result in additional housing for low- and moderate-income persons.. Census Tract 8219.02 With 37.4 percent of its population having a low to moderate income, Northampton ranks 271St, in the state's lowest quartile, according to DHCD's calculations based on the 1990 U.S. Census. According to Northampton's One-Year Action Plan for Year 19, of the City's 11,151 households, 39 percent, have very low or low incomes. Four tracts, including the one in which a portion of Northampton State Hospital is located, exceed the city-wide average. Demographic data clearly reflect the dominant presence of recent college graduates in the vicinity of NSH. Twenty-four percent of residents in Census Tract 8219.02 are between the ages of 22 and 29, according to the 2000 US Census - more than twice the rate of persons of that age throughout Hampshire County. More than half of adult residents have a bachelor's degree or higher, compared with a third statewide and 38 percent in Hampshire County. Yet the median household income, at $32,311, is 64 percent of the state average.' Job Creation/Retention Kollmorgen employs a full spectrum of engineering and manufacturing disciplines to design a variety of sensor and weapon systems for submarines, surface ships, combat vehicles, and other defense platforms. With facilities in Massachusetts and Vermont in the US as well as Bologna, Italy, Kollmorgen is an experienced developer of integrated and stabilized, high-peiformance optronic sensor, antenna, masts and weapon control systems for defense applications. The firm, acquired in June by the publicly traded Danaher Corp., is particularly proud of its family-oriented employment practices. "We want your talent, not your life," its recruitment web site states. "We recognize the importance of your life outside of work, and provide the flexibility in your job that enables you to strike that all-important balance." In preparing a master plan for the site development, The Community Builders hired Mount Auburn Associates, Inc., to examine the potential for bringing "new media" companies to the NSH site. The term refers to companies engaged in web page design, Internet publishing, digital recording, software development, video games, and other related functions. Efforts will continue to attract this type of business, which employs persons with a broad range of skills and experience.' In addition, the City and the developers received inquiries from other technology and manufacturing businesses about possible sites at the Village at Hospital Hill. 4 Census 2000 Summary File 3 (SF 3). An Assessment of the New Media Sector for Business and Job Development at the Northampton State Hospital Site, < { j y ~ Mt. Auburn Associates, Inc., July, 1999, pp 1-2. CITY OF NORTHAMPTON NOVEMBER, 2002 PAGE7 COMMUNITY DEVELOPMENT ACTION GRANT PRELIMINARY PROPOSAL NORTHAMPTON STATE HOSPITAL 8. Match MassDevelopment and The Community Builders intend to pursue all available sources of public funding for this project. Funds that will be pursued for the public improvements to support the cominercial component of the project are shown below. Table 3. Grant Solicitation Plan PROGP-1-N rL NDI NG AL T HORTTY NMOUNT ~iiu~~uluz~ Deg=elopmeii.Department~of Housing and.CoininwJ t5r . ' 000 000 CT,' lit Development Pul)JI, L:C(d7 ~CCLII L' )1 llt'i' F!r 1 i,ILl"~~ I( :1I ,III f _11(111 ill!I! ICSCi~ ~1 ~IllC1l I ~ r ~11~T11 l~ lli ,11 Historic Landscape Program p "Dei,.ll-tine i of Envirom-ental Nlanatrement 100;000 1'ecreatlonalTia>l L~~paru 1~nt~',~ E n,-n „t1>~i~i it l 3n cln~r~t 50'000- T Trl)2r) Forest,-~T P1 narair Department of Environmental Management 10`;000` C'Liilim;~. P~n~t~_~ De~elciptl~ent D( F- ~ 1IC,n711CPr~~ 11e~ ~C(~LcL~.ll D~ ~ ~l_'.1 ~ I I! ~I) I li II I TOTAL 860000; Preliminary discussions have been held with the Public Works Economic Development program staff, and with the state Executive Office for Administration and Finance regarding overall statewide economic development goals of which this project is a part. Additional funding, totaling $5.7 million, has already been allocated by the state Division of Capital Asset Management and Maintenance (DCAMM), and will be used as the match for the CDAG project. Projects in Northampton are not currently eligible for funding through the US Department of Commerce Economic Development Administration. However, preliminary discussions have been held with EDA's regional staff, and the Pioneer Valley Regional Planning Agency has identified the NSH project as a priority for regional economic development in its most recent Comprehensive Economic Development Strategy. EDA relies upon the regional planning agency network to perform an initial screening of projects. CITY OF NORTHAMPTON NOVEMBER, 2002 . PAGE 8 COMMUNITY DEVELOPMENT ACTION GRANT PRELIMINARY PROPOSAL NORTHAMPTON STATE HOSPITAL 9. Private Investment Upon completion of the infrastructure improvements, MassDevelopment will market the commercial property to light manufactuing and other businesses identified as prospects worth pursuing in a Market Study prepared by Crowley and Associates. Projections regarding private investment are based on interest to date, industry averages. and MassDevelopment's experience with seal estate in other parts of the Commonwealth. Table 4. Private Investment Fit-taut ~knd Total PriN-alc Purcha""e Contitruction Equihyitcnt Inl°c"tn]cilt Asstimhtiorls~SF $60' construction Light Industrial $ 336,000 4,800,000 1,600 000 $ 6,736,000 X20 fit-out 7-1 Tl 1,061-1 )CH) k f=i ~i 1 cC>nSt 1 C rio I _ Retail 150,159 ` $ 2,090,000 380,000 $ 2,620,159 11 construction $20 fit-out : ~<y Total $-,-,49,504 S 11,130,000 ti 31040,000 $ 1'xM19,504 CITY OF NORTHAMPTON NOVEMBER, 2002 PAGE 9 ;i;;;. 5 COMMUNITY DEVELOPMENT ACTION GRANT PRELIMINARY PROPOSAL NORTHAMPTON STATE HOSPITAL 10. CD/ED Experience This grant will be administered by the City of Northampton's Office of Planning and Development in conjunction with the Mayor's Office of Economic Development. Northampton is an entitlement community which receives in excess of $900,000 annually from HUD in Community Development Block Grant program funds. With these funds, Northampton last year provided support and administration for 29 different projects. In addition to CDBG administration and general planning, the Department provides staff support for the Planning Board, Conservation Commission, Historical Commission and Historic District Committee, Northampton Housing Partnership, Northampton Redevelopment Authority, Zoning Board of Appeals, and other special organizations. The Mayor's Office of Economic Development provides the following services applicable to this project: • Marketing and development support for economic development initiatives in the City • Business assistance to existing and new businesses in the City • Management of the Massachusetts Economic Development Incentive Program in the City • Staff support and liaison to the City Council Industrial Affairs Committee and Northampton State Hospital Citizen Advisory Committee. CITY OF NORTHAMPTON NOVEMBER, 2002 PAGE 10 ' COMMUNITY DEVELOPMENT ACTION GRANT PRELIMINARY PROPOSAL NORTHAMPTON STATE HOSPITAL 7 11. Secondary Economic Growth While nearly 400 permanent jobs will be created or retained as a direct result of this project, more are expected as an indirect result of the project. Table 5. Direct/Indirect/Construction Job Creation Perm:~t,cr~t Direct Indirect Gmstruct](M ` ~~1~?}i1 ~ilCtllU'1',li l II iflll -~-(I Office 170, 270 90 R, L, t 4i) Infrastructure 0 17 Total 370 " 610 207 Sources Direct job creation was based on the Institute of Traffic Engineers' projections per square foot for building construction in different categories. MassDevelopment utilizes the Bureau of Economic Analysis' RIMS II Multipliers, based on 1997 benchmark Input-Output accounts calculated July 2001, to estimate secondary job creation impacts from projects. Construction job projections were derived from two sources. For infrastructure construction and demolition, we utilized the Federal Highway Administration's "Direct On-Site Employment Rates on Federal-Aid Highway Construction Projects." For building construction employment, we used job projections (Burchell, 1994) adjusted for inflation. In each instance, the number of jobs cited represents one for each 1,600 hours. CITY OF NORTHAMPTON NOVEMBER, 2002 PAGE 11 COMMUNITY DEVELOPMENT ACTION GRANT PRELIMINARY PROPOSAL NORTHAMPTON STATE HOSPITAL 12. Potential Property Value State and local tax revenues will also increase as a result of this project, as shown below. Table 6. State and Local Tax Revenues NewStatO_TaX Total Private "(1111ated Squaw Feet Rcvcnuc, : Iriscstnlcnt Propcrty flc% Light Industrial 80,000 253,400 $ 65736,000 $ 102 620 ttfc~ HI lil 0() •Retail 19,000 $ 45,600 2,620,159 $ 42,480 Total 15?,00U S 5 62,4UU s I-,019 ~O4 S 234,497 An Economic Opportunity Area application for NSH was approved by the Economic Assistance Coordinating Council (EACC) on October 31, 2002. This designation will permit the City to authorize the granting of local tax incentives, and applications for state tax credits. The city of Northampton is part of the Greater Franklin County Economic Target Area. Sa Estimated by The Community Builders. 7 Based on 2002 tax rate of $15.91 and total project cost, which typically exceeds the assessed value. CITY OF NORTHAMPTON NOVEMBER, 2002 PAGE 12 ` COMMUNITY DEVELOPMENT ACTION GRANT-PRELIMINARY PROPOSAL NORTHAMPTON STATE HOSPITAL 13. Current Unemployment As the table below shows, the unemployment rate for the Franklin/Hampshire Service Delivery Area consistently falls below the state and national averages. Table 7. Unemployment Rate Comparisons _ Franltilinj 1 II:tYll)Slll1'C SDA- IatiS j)s August 2002 3.7 5 5.7 i 4. _ June 2002, 3.4 - 419 6.0 4.2 4.1 April 2002 3.1 ' 4.5 5.7 "4:Lrc1" a)()- 4: N . Februai7, 2002 . 3.4 4.7 6.1 ;y 2001 Annual Average 2.9 3 However, the challenge in western Massachusetts is underemployment rather than unemployment. The traditional correlation between educational attainment and income does not apply in Hampshire County as it does elsewhere, although the presence of higher education in the region certainly has a statistical impact. Although 25 percent of the adult population in Northampton has a master's degree or higher, the median household income is lower than the state or national median, in part because of the young age of the population. Fifty percent of Northampton residents work in one of four industry sectors that tend to dominate college towns: eating and drinking establishments (10 percent), health services (18 percent), educational services (15 percent) and social services (7 percent). Nationally, only 21 percent of the population work in those four sectors combined'. $ Bureau of Labor Statistics, 2002. CITY OF NORTHAMPTON i NOVEMBER, 2002 PAGE 13 i 1 I COMMUNITY DEVELOPMENT ACTION GRANT PRELIMINARY PROPOSAL NORTHAMPTON STATE HOSPITAL 14. Site Ownership The NSH property is currently owned by the Massachusetts Division of Capital Asset Management. DCAM has agreed to convey the property to a limited liability corporation comprised of the Massachusetts Development Finance Agency, the state's economic development authority, as managing partner, and The Community Builders, a private non-profit agency, as the selected developer. This conveyance was expected to occur on November 21, 2002. Under an agreement with the City of Northampton, MassDevelopment will manage the construction of infrastructure improvements, then submit the improvements for acceptance by the city. k`~1,81 CITY OF NORTHAMPTON NOVEMBER, 2002 PAGE 14 COMMUNITY DEVELOPMENT ACTION GRANT PRELIMINARY PROPOSAL NORTHAMPTON STATE HOSPITAL 15. Permits Required The table below shows permits required and their status as of October, 2002. Permit/Permitting Agency Status MEPA Certificate Phase 1 Report submitted April 30, 2002. 30-day review period concluded June 7. Special Review Procedure established by the Secretary of Environmental Affairs permits the development of Phase 1 to proceed following the issuance of a certificate on the Phase 1 Report. A subsequent Draft/Final Environmental Impact Report must address the cumulative effects of the development. Notice of Project Change filed and approved. Section 61 Draft findings included in the Phase 1 Report. Massachusetts Historic Memorandum of Agreement executed between Massachusetts Commission Historical Commission and Division of Capital Asset Management on August 10, 1995. Note that it is anticipated that federal funds will be utilized for a portion of the project development, invoking the requirements of Section 106 of the National Historic Preservation Act, as amended. Planning Board Permits Preliminary and definitive subdivision plans, site plan approval, and special permit all required. The special permit for Phase I has been issued. Conservation Commission Order of Conditions required under the Wetlands protection Act Approval and local ordinance. Determination of Applicability issued. Local Public Works Permits Trench, sewer entrance, water entrance and backflow prevention permits all required from the Northampton Department of Public Works Demolition, renovation and All required from Northampton Building Inspector. building permits CITY OF NORTHAMPTON NOVEMBER, 2002 PAGE 15 COMMUNITY DEVELOPMENT ACTION GRANT PRELIMINARY PROPOSAL 1 NORTHAMPTON STATE HOSPITAL f 16. Local Elected Official Certification To the best of my knowledge, all information in this preliminary project analysis packet is true and correct. 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