1. Nton Lumber_CPA App Cover Ltr.pdf
September 8, 2014
Ms. Sarah LaValley
Conservation, Preservation, and Land Use Planner
City of Northampton
City Hall
210 Main Street – Room 11
Northampton, MA 01060
Re: Redevelopment of the former Northampton Lumber Yard
Dear Ms. LaValley:
Please find enclosed a Community Preservation Project Application for Valley Community Development
Corporation’s (Valley CDC) proposal to redevelop the former Northampton Lumber property located at
256 Pleasant Street. Valley CDC is requesting a commitment of $500,000 in CPC financing toward the
development of this project. These funds would not be expended until the project is fully funded. Valley
CDC intends to purchase and redevelop the 1.25-acre site into approximately 60 units of rental housing
that will be affordable to households earning between 30 to 60 percent of the Area Median Income (AMI)
with approximately 3,500 square feet of commercial space on the first floor. The development will
provide family rental housing that includes one, two, and three-bedroom apartments. Valley CDC expects
to provide 0.7 to one (1) parking space per unit and on-site there will also be a laundry room, residential
community space, green space, and a management office.
The project is in line with the goals of the City of Northampton’s Strategic Housing Plan and Master Plan.
The project also addresses several of the project evaluation criteria set forth in the Northampton
Community Preservation Plan 2012-2014. Additionally, the project will help to revitalize the Pleasant
Street corridor to create a more vibrant downtown while also adding 60 income-restricted housing units
to the City’s inventory of affordable housing.
Construction is expected to begin in May 2016 after we have obtained all necessary permits and we have
closed on the financing of the project. We currently have a signed Option Agreement with the owner of
the property. We are required to go through a local permitting process for which the uses are allowed by
right. We intend to submit our proposal for site plan approval in October 2014 and we project that we will
have all required permits by February 2015. The state’s funding process requires all other funding for the
project to be committed at the time of submission.
The total development budget for this approximately 60-unit project is $19,977,096. We expect the total
hard costs to be $13,848,240 and the soft costs to be $3,040,029. The amount we are requesting from the
CPC is approximately 2.5% of the total development budget. In order to finance the buying of the
property, Valley CDC has obtained an acquisition loan commitment of $1,000,000 from the Community
Economic Development Assistance Corporation (CEDAC). The loan will carry an interest rate of 2% for a
term of two years. The principal amount of the loan would be repaid to CEDAC at closing on the financing
for the construction of the development. Valley CDC has also obtained a $400,000 pre-development loan
from CEDAC to pay for third-party pre-development expenses including architecture, engineering, and
legal costs.
Permanent financing is expected to come from a variety of sources including: Federal and State Low
Income Housing Tax Credits (LIHTCs), MA Department of Housing and Community Development (DHCD)
affordable housing funds, Smith College Affordable Housing Fund and permanent bank financing. Valley
CDC will also submit an application to the City of Northampton requesting $150,000 from its Community
Development Block Grant allocation.
The project will conform to the existing Central Business District design requirements and will be designed
to be highly energy efficient. Sustainable materials will be utilized to the extent it is financially feasible.
Valley CDC has selected Davis Square Architects, based in Somerville, to design the project. The firm
specializes in affordable housing design has been designing affordable housing developments for more
than 20 years. The principal of the firm is the project architect for the project. Valley CDC has also hired a
development consultant, MBL Housing and Development. The Amherst-based firm specializes in
affordable housing developments and serves as the consultant to many of the region's affordable housing
developments.
The site is centrally located in downtown Northampton with access to nearby amenities as well as several
forms of public transportation. The property is within a quarter-mile of a bike path entrance and the
future location of the Amtrak station that is scheduled to begin service in late 2014. Also down the street
from the property, adjacent to the bike path entrance, is bus service to the VA Hospital in Leeds and
Williamsburg as well as to Easthampton and Holyoke Community College. Bus service to Hadley, Amherst,
and the University of Massachusetts is available less than a half-mile from the site. The Peter Pan bus
station is also less than a half-mile from the site, offering service to Springfield and Holyoke as well as
Boston and Hartford. This project is unique in that it utilizes an under-developed prime parcel of land in
downtown Northampton.
If you have questions about the project or if you require additional information please contact me by
phone at (413) 586-5855 x 19 or by email at jc@valleycdc.com. Thank you for your consideration.
Sincerely,
Joanne Campbell
Executive Director