O’Connell Feasibility & (CBAC Presentation 8.3.2021)CBAC PresentationO’Connell Hawley LLC10 Hawley Street, Northampton, MA 8/3/2021
Presentation Summary•Site Orientation and Existing Conditions•Central Business District Demolition Criteria•Structural Obsolescence•Extensive Deferred Maintenance•Prohibitive Cost of Restoring the Building’s Base and Shell to Weather Tight Condition •Functional Obsolescence•Marketing History of the Site•Current Market Conditions •Construction Material Costs •Recalibrated Rent•Adaptive Reuses and Market Outreach•Cost Implications of Renovation v. New Construction•Historic Tax Credits•Low Income Housing Tax Credits•Proposed Design of New Replacement Buildings –Post 4/6/2021 CBAC Meeting
Site Orientation and Existing Conditions
Site Orientation and Existing Conditions Cont’dExistingSummary GSF AreaBasement 1,4801st Floor 6,3661st Floor Mezzanine 9502nd Floor Tower 2103rd Floor Tower 210Bell Tower Floor 210Total GSF 8,476 (NIC Mez.)Basement Floor Plan - ExistingScale: 3/16" = 1'-0"
Site Orientation and Existing Conditions Cont’d1st Floor Plan - ExistingScale: 3/16" = 1'-0"
Site Orientation and Existing Conditions Cont’dBuilding Section -ExistingScale: 3/16" = 1'-0"Building Section -ExistingScale: 3/16" = 1'-0"3rd Floor Plan -ExistingScale: 3/16" = 1'-0"2ndFloor Plan -ExistingScale: 3/16" = 1'-0"38'‐11"
Central Business District Demolition CriteriaIII. Applicability•Demolition of Historic BuildingsDemolition of historic buildings (those built prior to 1945) should be considered onlyafter allreasonable(emphasis added) alternatives‐‐especially rehabilitation‐‐havebeen fully considered. For historic landmark or theme buildings, demolition should beconsidered only when the building isunusable or is functionally and structurallyobsolete(emphasis added), and when an appropriate new building has been designedto replace it (emphasis added). Demolition of historic transitional residential orhistoric anomaly buildings should be considered only when the building is unusable oris functionally and structurally obsolete, and when an appropriate new building hasbeen designed to replace it; however, an approved new theme building may replace atransitional residential building regardless of its condition.Design Guidelines Manual ‐Downtown Northampton Central Business DistrictChapter 161. Demolition§161-3: Buildings and structures regulated by this chapter.Buildings or structures located within Local Historic Districts are subject to the provisions of Massachusetts GeneralLaws Chapter 40C. Applications for demolition in such districts will be reviewed as part of the Historic Districtpermitting process. Applications for demolition within the Central Business Architecture Districtwill be reviewed bythe Central Business Architecture Committee(created by Chapter 156 of the Code) (emphasis added). If any of theabove-mentioned should cease to exist, the Northampton Historical Commission would administer this chapter inthose areas. The Historical Commission will review demolition applications in all other areas of the City.
Asbestos-Containing Thermal System Insulation Piping is throughout boiler room and into the crawlspace. Piping diameter ranges from 2 to 5 inches.
Last Maintenance Record in December 2015.The boiler is insulated around the exterior with an asbestos jacket.Asbestos-Containing Thermal System Insulation Piping is throughout boiler room and into the crawlspace. Piping diameter ranges from 2 to 5 inches.
Deteriorated Window Caulk and Window Framework Fully Exposed Mortar Joints.
Fully Exposed Mortar Joints and Miscellaneous, Significant Cracking.Rotted Trim, with Water Infiltration.Exposed Roof, with Extensive Missing Shingles adjacent to Bell Tower.
Fully Exposed Mortar Joints and Miscellaneous, Significant Cracking.Efflorescence and Staining on the Bell Tower Brick, with Evidence of Water Infiltration to the Interior.
Central Business District Demolition CriteriaStructural Obsolescence1. Cost to Restore the Building to Weather Tight and Minimally Safe Conditiona. Cost Implications:b. Rent Implications –Breakeven Analysis:6,400Construction Cost Adjustment (%) 15%Shingle Slate$378,600 $378,600Roofing:Architectural Shingle (without downspouts and gutters)$108,842Slate Roof (including downspouts and gutters)$554,875Downspouts and Gutters (including carpentry)1$50,000 $20,000Scaffolding $100,000 $100,000$100,625 $100,625Total ($$) $738,067 $1,154,100Footnote 1: Slate roof includes carpentry only. Downspouts and Gutters are covered directly above. Rentable Building Square Footage (Approximate):Comparison (Shingle v. Slate Roof)Cost (Trade Description)Masonry ‐ Repointing and Restoration CleaningReplacement Windows$350 $35015% 15%$2,576,000 $2,576,000$738,067 $1,154,100$3,314,067 $3,730,100$331,407 $373,010$51.78 $58.2810 Year Lease Annual Rent (Fixed $$/Yr)Construction Cost Adjustment (%)Breakeven (10 Year Hold):Commercial/Restaurant:Fitout for Restaurant ($/GSF)Fitout for Restaurant ($$)Add'l Cost for Weather Tight Building10 Year Lease Annual Rent (Fixed $/RSF/Yr)$250 $25015% 15%$1,840,000 $1,840,000$738,067 $1,154,100$2,578,067 $2,994,100$21,483.89 $24,950.83$2,387.10 $2,772.31$4,340.18 $5,040.57Monthly Rent Required (Fixed $/RSF/Mo)Required Starting Rent (45% OPEX Ratio)Multi‐Family (9 Unit Rental)Multi‐Family Construction Costs ($/RSF)Fitout for Multi‐Family ($$)Add'l Cost for Weather Tight BuildingAdd'l Monthly Rent Required (Fixed $$/Mo)Construction Cost Adjustment (%)
Central Business District Demolition CriteriaFunctional Obsolescence1. Marketing History of the Sitea. The Building’s prior use ended on January 3, 2010, and has sat vacant and unused since that time, despite being actively and continuously marketed until O’Connell Hawley’s purchase in March 2020.b. Approximately eleven years later, the Building has extensive signs of deferred maintenance, after laying dormant and unheated for a large part of that period. 1. Current Retail and Commercial Market Conditionsa. Downtown Northampton is in a very challenging transition due to the pandemic and Amazon effect. b. Twice as many commercial vacancies as we have ever seen.c. Obvious locations, such as Serio’s, have become challenging to fill with new tenants.d. Multiple restaurants have closed.e. Commercial realtors showed the church multiple times over the last 10 years. Prospects opted not to offer on it because the costs to bring it to contemporary standards –i.e. due to structural obsolescence –in order to create restaurant or commercial space, were prohibitive.
Central Business District Demolition CriteriaFunctional Obsolescence3. Adaptive Reuses and Market Outreacha. Retail/Commercial ‐With the outbreak of COVID‐19 and the government issued orders and strict measures that followed, the end uses that were previously contemplated became financially unviable. i. Boston‐based restaurant/hospitality group proposed a multi‐use venue, with outdoor music and outdoor dining, but the lingering uncertainty over the long term effect on consumer spending habits caused them to withdraw.ii. O’Connell Development Group engaged Austin Design to design a brewery/restaurant concept space, but no interest among breweries.iii. Few Retail/Commercial end users are expanding their physical presence or have plans to do so. In fact, many have begun to reevaluate their current space needs and business models, and have sought to reduce their real estate footprint.
Outdoor Dining Patio
Central Business District Demolition CriteriaStructural Obsolescence1. Cost to Restore the Building to Weather Tight and Minimally Safe Conditiona. Cost Implications:b. Rent Implications –Breakeven Analysis:6,400Construction Cost Adjustment (%) 15%Shingle Slate$378,600 $378,600Roofing:Architectural Shingle (without downspouts and gutters)$108,842Slate Roof (including downspouts and gutters)$554,875Downspouts and Gutters (including carpentry)1$50,000 $20,000Scaffolding $100,000 $100,000$100,625 $100,625Total ($$) $738,067 $1,154,100Footnote 1: Slate roof includes carpentry only. Downspouts and Gutters are covered directly above. Rentable Building Square Footage (Approximate):Comparison (Shingle v. Slate Roof)Cost (Trade Description)Masonry ‐ Repointing and Restoration CleaningReplacement Windows$350 $35015% 15%$2,576,000 $2,576,000$738,067 $1,154,100$3,314,067 $3,730,100$331,407 $373,010$51.78 $58.2810 Year Lease Annual Rent (Fixed $$/Yr)Construction Cost Adjustment (%)Breakeven (10 Year Hold):Commercial/Restaurant:Fitout for Restaurant ($/GSF)Fitout for Restaurant ($$)Add'l Cost for Weather Tight Building10 Year Lease Annual Rent (Fixed $/RSF/Yr)$250 $25015% 15%$1,840,000 $1,840,000$738,067 $1,154,100$2,578,067 $2,994,100$21,483.89 $24,950.83$2,387.10 $2,772.31$4,340.18 $5,040.57Monthly Rent Required (Fixed $/RSF/Mo)Required Starting Rent (45% OPEX Ratio)Multi‐Family (9 Unit Rental)Multi‐Family Construction Costs ($/RSF)Fitout for Multi‐Family ($$)Add'l Cost for Weather Tight BuildingAdd'l Monthly Rent Required (Fixed $$/Mo)Construction Cost Adjustment (%)
Central Business District Demolition CriteriaFunctional Obsolescence Cont’d3. Adaptive Reuses and Market Outreachb. For Sale/For Rent Multi‐Family Conversioni. Cost Implications of Renovation v. New Constructionii. Historic Tax Creditsi. Journal of Tax Credits reports that according to the NPS project database, that of more than 40,000 historic tax credit applications since the 1990s, only 0.7% involve churches, and of those only 0.2%, or 82 developments, were successfully executed.ii. Most projects do not receive the full 20% state tax credit allocation; allocated credits typically reflect 12‐15% of the total qualified rehabilitation expenditures.iii. The NPS database notes that since the 1990s, only five MA projects submitted Part 2 applications; four received approvals for the Part 2 applications and one was denied.iv. The project would take at least two and one‐half‐years of applications to MHC to receive Massachusetts historic tax credit allocations.v. It's an all or nothing program. All of the proposed treatments need to meet the standards or no credits. Even additions and new construction are evaluated by NPS and MHC to make sure they are compatible with the historic building.iii. Low Income Housing Tax Creditsi. Funding Success Typically Requires Minimum Density of 30‐40 Units•Current test fit will only allow for a maximum of 9 units •Assuming 5,120 RSF per floor, with 5 units per floor, any proposed building would be (at minimum) 6 stories tall. ii. Highly Competitiveiii. Schedule: 2 years from Pre‐Application to Full Application to the Awarding of Tax Credits iv. Parent Company’s Portfolio includes 1,228 units of income‐restricted properties (all in Massachusetts). •112 units are owned in Northampton.iv. Housing Development Incentive Program (HDIP)i. Project is Ineligible – Northampton is not a “Gateway City”, which requires: •Population greater than 35,000 and less than 250,000;•Median household income below the state average; and•Rate of educational attainment of a bachelor’s degree or above that is below the state average.
Central Business District Demolition CriteriaFunctional Obsolescence Cont’dConstruction Cost Adjustment (%) 15%Total SFDivision #Description of workRenovate Church into 5 For-Sale Units1General Requirements280,000.00$ 2Existing Conditions118,500.00$ 3Concrete66,335.83$ 4Masonry504,390.00$ 5Metals15,238.65$ 6Wood & Plastic510,974.11$ 7Thermal & Moisture682,530.75$ 8Doors & Windows137,509.87$ 9Finishes394,923.23$ 10Specialties27,982.95$ 11Equipment43,011.80$ 12Furnishings96,392.46$ 13Special Construction-$ 14Conveying System-$ 21Fire Suppression36,250.00$ 22Plumbing167,500.00$ 23HVAC218,875.00$ 25Integrated Automation-$ 26Electrical171,781.06$ 27Communication-$ 28Electronic Safety & Security-$ 31Earthwork75,000.00$ 32Exterior Site Improvements22,000.00$ 33Site Utilities4,505.50$ SubTotal3,573,701.21$ General Requirements Additional CostGen liability and umbrella insurance $3.75 / 1,00013,401.38$ P&P Bond $0.00 / 1,000Contingency/OH&P500,318.17$ TOTAL CONSTRUCTION COST4,087,420.76$ Soft CostSoft Costs (Architectural and Engineering) 5.50% 200,000.00$ Builder's Risk Insurance (Premium Per Year) 20,000.00$ Land Cost (Allocation)230,000.00$ Real Estate Commissions 6.00% (of Sales Price) 289,622.60$ Cost per Unit (Breakeven)965,408.67$ 10% Contingency/4%OH&P
Central Business District Demolition CriteriaFunctional Obsolescence Cont’d
Central Business District Demolition CriteriaFunctional Obsolescence Cont’d
Central Business District Demolition CriteriaFunctional Obsolescence Cont’d
Construction and Material Costshttp://enr.construction.com/economics ‐ 2,000 4,000 6,000 8,000 10,000 12,000 14,0001/1/20034/1/20037/1/200310/1/20031/1/20044/1/20047/1/200410/1/20041/1/20054/1/20057/1/200510/1/20051/1/20064/1/20067/1/200610/1/20061/1/20074/1/20077/1/200710/1/20071/1/20084/1/20087/1/200810/1/20081/1/20094/1/20097/1/200910/1/20091/1/20104/1/20107/1/201010/1/20101/1/20114/1/20117/1/201110/1/20111/1/20124/1/20127/1/201210/1/20121/1/20134/1/20137/1/201310/1/20131/1/20144/1/20147/1/201410/1/20141/1/20154/1/20157/1/201510/1/20151/1/20164/1/20167/1/201610/1/20161/1/20174/1/20177/1/201710/1/20171/1/20184/1/20187/1/201810/1/20181/1/20194/1/20197/1/201910/1/20191/1/20204/1/20207/1/202010/1/20201/1/20214/1/2021ENR Building Cost Index (Historic Pricing since 2003)
Construction and Material Costs Cont’dhttp://enr.construction.com/economicsTrailing 12 MonthsBuilding Cost Index: 68.38 hours of skilled labor at the 20‐city average of bricklayers, carpenters and structural ironworkers rates, plus 25 cwt of standard structural steel shapes at the mill price prior to 1996 and the fabricated 20‐city price from 1996, plus 1.128 tons of portland cement at the 20‐city price, plus 1,088 board‐ft of 2 x 4 lumber at the 20‐city price. [https://www.enr.com/economics/historical_indices]
Construction and Material Costs Cont’dhttps://fred.stlouisfed.org/series/WPU081Historic Pricing Since 2000 ‐‐Up 84% Y‐on‐Y
Construction and Material Costs Cont’d
Affordable Housing Projects under O’Connell Development Group Ownership in Northampton36 Bedford Terrace, Northampton, MA20 units ‐1, 2 and 3 bedrooms74 State Street, Northampton, MA6 units –2 bedrooms71 State Street, Northampton, MA86 units – Efficiency, 1 and 2 bedroomsAge and Income Restricted
Proposed Design of New Replacement Buildings
Options During and After Demolition1. Pre‐demolition salvage of materials/components with architectural value and integrate components into final design of green space.2. Photographic inventory of structure. 3. Memorialize structure with information plaques (similar to those found at Village Hill).
Appendix
Boiler House (https://www.roundhillnoho.com/apartments) (as of 7/1/2021)Completion Date: January 2021Unit 1 ‐‐1 Bd./1 Ba.725 SQ/FT ‐‐‐‐‐$2,000 / MonthUnit 3 ‐‐1 Bd./1 Ba.735 SQ/FT‐‐‐‐‐$2,000 / MonthApril 2021July 2021Rental Growth = ~3%
Downtown Retail Market
Downtown Retail Market (March 2021)March 2021
Downtown Retail Market (July 2021)July 2021
Downtown Retail Market (March 2021)
Downtown Retail Market (July 2021)
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Memo_4.5.2021.docx
One Federal Street
Bldg. 103-3N
Springfield, MA 01105-1121
P 413.747.7113
To: Matthew Welter, O’Connell
Development Group
Date: April 5, 2021
Project #: 42540.01
From: Quinn R. Stuart, Senior Preservation
Planner, VHB
Re: Historic Rehabilitation Feasibility Study
St. John Cantius Church, 10 Hawley Street, Northampton, MA
This memorandum is in response to the Central Business Architectural Committee’s request to further study the
feasibility of the adaptive reuse of the St. John Cantius Church. The study includes the application of federal and
Massachusetts historic tax credits to partially fund a rehabilitation project by comparing successful projects involving
churches to the details of the St. John Cantius Church development.
Federal Historic Preservation Investment Tax Credits
Federal historic preservation investment tax credits are available for income-producing buildings which are listed in or
are eligible for listing in the National Register (also referred to as “certified historic structures” in the historic tax credit
program), and which are substantially rehabilitated according to the Secretary of the Interior’s Standards for
Rehabilitation (Standards). Under this program, 20% of the total qualified rehabilitation expenditures (QREs) are
returned to the owner in the form of a dollar-per-dollar credit on federal income taxes. The cost of a project must
exceed the greater of $5,000 or the building’s adjusted basis, and after rehabilitation, the historic building must be
used for an income-producing purpose for at least five years.
A three-part Historic Preservation Certificate Application (HPCA), including project plans and photographs, is
submitted to the MHC and NPS. The federal HPCA applications are accepted on a rolling basis.
Part 1 presents information about the significance and appearance of the building, for the building to be
determined a certified historic structure.
Part 2 describes and documents the existing conditions of the building, including extant historic materials, and
details the proposed scope of work.
Part 3 is submitted after the construction is complete, documenting that the work was executed according to
the approved Part 2 scope of work. An approved Part 3 certifies that the project meets the Standards and is a
“certified rehabilitation.”
The MHC has a review and comment role in the process, while the NPS has the final decision-making authority
regarding certification of the completed rehabilitation. NPS tax credit review has purview over all proposed treatment
to the exterior, interior, and the site, including landscaping, parking, additions to the historic building, and detached
new construction buildings on the same property. Successful certification of the completed project, and obtaining the
subsequent tax benefits, is dependent upon a rehabilitation scope of work that meets the Standards.
From: Quinn R. Stuart
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April 5, 2021
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Massachusetts Historic Rehabilitation Tax Credit Program
The Massachusetts Historic Rehabilitation Tax Credit (MHRTC) largely mirrors the federal tax credit program. It is
available on a competitive basis for income-producing buildings which are listed in the National and/or Massachusetts
State Registers, and which are substantially rehabilitated. The three-part MHRTC application is similar to the three-part
NPS application, with additional required supporting information. Like the federal tax credit, the rehabilitation,
including the exterior, interior, and site, must be determined a certified rehabilitation, meaning the executed scope of
work meets the Standards. There is no fee assessed by MHC for review of MHRTC applications.
Under the Massachusetts tax credit program, up to 20% of the total qualified rehabilitation expenditures (QREs) is
returned to the owner in the form of a dollar-per-dollar credit on state income taxes. The cost of rehabilitation must
be no less than 25% of the assessed value of the property prior to rehabilitation. Currently, the program has an annual
cap of $50 million in tax credits. Because requests typically far exceed the amount of credits available, the program is
highly competitive in nature. Thus, most projects do not receive the full 20% state tax credit allocation; allocated
credits typically reflect 12-15% of the total qualified rehabilitation expenditures.
The MHRTC has three application rounds per year, with deadlines of January 15, April 30, and August 31. Projects
generally do not receive an allocation in the first submission. Standard project awards each round are in increments of
approximately $100,000 - $300,000, necessitating resubmissions in subsequent rounds.
Renovation of Churches and Historic Tax Credits
Although churches offer high architectural values, a large amount of square footage, and typically well-located
properties, there are few successful historic tax credit applications. An article published in June 2019 by Novogradac in
their Journal of Tax Credits reports that according to the NPS project database, that of more than 40,000 historic tax
credit applications since the 1990s, only 0.7% involve churches, and of those only 0.2%, or 82 developments, were
successfully executed. The primary factor listed of why there have been so few successful historic tax credit
applications involving churches is due to the need to preserve the sanctuary space. Most applications that were
denied included changing the floor plan, either by addition or demolition, which is rarely approved. The Novogradac
article also states that “while subdividing these spaces may be critical to the economic viability of a project by adding
leasable square footage, it is important to remember that the HTCs are an incentive and must meet the NPS standards
regardless of economics.”
VHB took an approach similar to Novogradac’s exercise and refined the number of NPS applications involving
churches to just churches in Massachusetts. A search of the NPS project database resulted in eight applications for
From: Quinn R. Stuart
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projects including historic churches or chapels.1 Of these, seven received approvals for the Part 1 applications, but only
five projects submitted Part 2 applications; four received approvals for the Part 2 applications and one was denied.
The five projects that submitted Part 2 applications to the National Park Service are outlined below.
St. Anne’s Church and Rectory, 47 J Street, Turner Falls
The St. Anne’s Church and Rectory project received a Part 1 approval in 2009 and a Part 2 conditional approval in
2010. According to an article published in 2009, in the Valley Advocate, the project proposed to convert the church
sanctuary space into a combination music venue, pub and bistro, which would retain a portion, if not all, of the
original full height volume of the sanctuary. The project does not appear in the MHC records as having received a Part
2 approval by the state. Unfortunately, the project as proposed to NPC and MHC was withdrawn in 2011 due to
funding issues.
St. Gabriel’s Church and Monastery, 159 Washington Street, Boston
The St. Gabriel’s Church and Monastery project received a Part 1 approval from NPS and MHC; however, was denied a
Part 2 approval from NPS due to the planned demolition of a secondary contributing structure on the property.
Unable to resolve this issue, the project proceeded with only the MHRTC applications and received a Part 3 approval
from Massachusetts in 2018. The final project included the rehabilitation of all but one historic building and
construction of several new residential building. The original sanctuary in the church and the chapel in the monastery
were converted into community spaces and retained their full height volume and many of their original ornamental
details.
Nobscot Union Chapel, 881 Edgell Road, Framingham
The Nobscot Union Chapel is an active historic tax credit project with NPS and MHC Part 1 and Part 2 approvals
(2020). The chapel was moved in the spring of 2020 to the southwest edge of the existing property to make space for
mixed-use development. The project proposes to rehabilitate the small chapel for retail use, which allows for the full
height of the sanctuary space to be retained.
1 The keyword search also included mosque, synagogue, mission, temple and parish as well as ancillary religious buildings including
rectory, convent, shrine, monastery, and meetinghouse to ensure all possible churches or chapels were accounted for across the
state.
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Mission Chapel, 205 Summer Street, Worcester
The Mission Chapel is an active historic tax credit project that received NPS and MHC Part 1 and Part 2 approval in
2019. The project proposes to construct four one-bedroom units, two two-bedroom units, one large three-bedroom
unit. The full volume of the main sanctuary will be retained by constructing two bedrooms and a bathroom below the
balcony and having a loft bedroom in the balcony space itself for one 2,450 square-foot unit.
St. John the Evangelist Mission Church, 35 Bowdoin Street, Boston
The St. John the Evangelist Mission Church is an active historic tax credit project that received NPS and MHC Part 1
and Part 2 approvals in 2016. The project proposes to construct one apartment in the basement of the church and one
in the attic. An open-concept office will occupy the sanctuary space and balcony levels of the church without any full-
height partitions. The adjacent rectory is being renovated into three rental apartments but is not utilizing historic tax
credits.
Adaptive Reuse of Historic Churches without Historic Tax Credits
VHB also identified several churches across the state that were rehabilitated not utilizing historic tax credits. These
appear to be both income-producing and non-income producing residential and commercial properties. By not
applying for tax credits, the proposed project plans were only restricted by any local architectural or preservation
review board and are not reviewed by MHC or NPS. Although many of the projects carefully and thoughtfully retained
a high percentage of the historic architectural features, not all treatments adhered to the Secretary of the Interior
Standards, primarily concerning the division of the plan.
The following is a list of some of the non-historic tax credit church renovations in Massachusetts, including those
completed by western Massachusetts developer David Carver. VHB also utilized records from the Boston Preservation
Alliance, Cambridge Historical Commission, Boston Landmarks Commission, Worcester Historical Commission, and
local newspapers to identify a variety of church rehabilitation projects throughout the state.
Church Corner Apartments, former St. Raphael’s Catholic Church, Williamstown: Converted the church and
rectory into eight rental apartments by dividing the interior of the space. The project utilized private and town
funds.
625 State Road, former Our Lady of Mercy Church, North Adams: Converted the church into four high-end
apartments built into the balcony and sanctuary space.
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Morning Star Apartments, former St. Mary the Morningstar Church Complex, Pittsfield: This church complex
comprises 29 market-rate apartments constructed throughout the school, rectory, convent, and church
including within the sanctuary space.
Powerhouse Lofts, former Holy Family Church, Pittsfield: Converted church into ten market-rate apartments by
dividing the sanctuary into two floors with a single-loaded corridor around the perimeter.
The Residences at St. Augustine, Boston: Converted the church and rectory into 29 luxury condominiums with
approximately 33,000 square feet of new living area and additional surface and below-grade parking at the
site.
80 Prospect Street Condominiums, former Gloucester Methodist Church, Gloucester: Converted into
condominiums by dividing the space into four levels.
St. Mary’s Condominiums, former St. Mary’s Roman Catholic Church, Marlborough: Converted the school,
rectory, church and constructed a new townhouse building to create 36 rental units across the property.
St. John Cantius Church and Historic Tax Credits
A project involving a unique structure, such as a church, would most likely result in at least three rounds of
applications; the initial round and at least two additional rounds responding to MHC comments on the proposed
treatment. There are three application rounds per year, so it would take at least one year to receive the initial MHC
approval and receive the first allocation of credits, which as stated above are approximately $100,000 - $300,000. The
proponent would therefore resubmit an application for additional allocations three times a year until either the project
is completed, or MHC has capped the credits for that project. Many projects begin applying for credits two years or
more before construction even begins to ensure they are able to accumulate the maximum credits available.
Reapplications for the credits can continue through the construction phase but must cease when the project files for
its Part 3 Certificate, which is necessary to claim the credits.
For example, if the QREs for the rehabilitation of the St. John Cantius Church was approximately $10 million,2 that
would make the 20% in eligible federal historic tax credits about $2 million. However, because the Massachusetts
historic tax credit typically allocates, on average, 12-15% of the QREs that amounts to only $1.2 to $1.5 million. As
mentioned above, it could take approximately one year to receive the first allocation from MHC and the project may
only receive $300,00. If the proponent continues to receive the maximum in average allocations, the project could
2 This figure does not reflect any actual costs estimated by the project proponent and only being used as the example.
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receive up to $900,000 in year two and the remaining $200,000 in year three. However, MHC also “steps down” the
allocation amounts, therefore, the totals may be spread out in smaller allocations. Based on this example, the project
would take at least two and one-half-years of applications to MHC to receive Massachusetts historic tax credit
allocations.
The Secretary of the Interior’s (SOI) Standards for Rehabilitation is the criteria used to determine if a rehabilitation
project qualifies as a certified rehabilitation. The SOI standards call for the “preservation of exterior and interior
portions and features of the building that are significant to its historic, architectural and cultural values.” The SOI offers
guidance on identifying and evaluating these significant components, or “character-defining features”. Exterior
features could include the general categories of shape, openings, roofs, projections, materials, and setting. On the
interior, the significant features may include the building’s plan, spaces, individual architectural features, and the
various finishes and materials. 3
For churches, the primary challenge in a development project is the need to preserve the sanctuary space. A sanctuary,
comprised of the narthex, nave, crossing and apse, and any associated balcony are fundamental and character-
defining features. In addition, the significance of the sanctuary is not tied to its finishes. The presence or absence of
high-end finishes does not eliminate the importance of the volume of the space.
St. John Cantius Church is identified in the Pomeroy Terrace National Register Historic District nomination as a late-
Italian basilica with exterior character-defining features of the bell tower, center entrance with vaulted portico,
centered rose window, and limestone pendants and trim. 4 Interior features of the church, which are not identified in
the National Register nomination, are the large, two-story open sanctuary, the painted barrel-vaulted ceiling, wall
panels, and dome above the alter, the wood panel wainscoting, and a few of the stained-glass windows that remain.5
These features are modest in comparison to large cathedrals; however, they are still beautifully executed and those
that remain retain a high level of integrity.
3 Refer to Secretary of the Interior’s Preservation Brief 17: Architectural Character: Identifying the Visual Aspects of Historic Buildings
as an Aid to Preserving Their Character and Preservation Brief 18: Rehabilitation Interiors in Historic Buildings, which are available
online at, https://www.nps.gov/tps/how-to-preserve/briefs.htm
4 These exterior character defining features are described in the Pomeroy Terrance Historic District National Register nomination
(2001). Interior features are not taken into consideration on the eligibility of contributing properties in the listing for a historic
district; however, the interior features are reviewed for historic tax credit purposes for both individually listed historic properties or
those listed as contributing properties to a historic district.
5 When a church is closed and sold, the Catholic Church removes the consecration of the church and all sacred items, including the
tabernacle, altar, as well as relics and stained-glass windows with particular religious significance are removed.
From: Quinn R. Stuart
Ref: 42540.01
April 5, 2021
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One Federal Street
Bldg. 103-3N
Springfield, MA 01105-1121
P 413.747.7113
The sanctuary at St. John Cantius Church is one of the major character-defining features of the church. Retaining only
the architectural finishes and details of the interior space would not meet the Secretary of the Interior’s Standards
required for historic tax credit projects. Based on VHB’s extensive experience in assisting developers through the
federal and Massachusetts tax credit process, we believe that unless an income-producing reuse could be identified
that would retain the overall massing of the sanctuary space, St. John Cantius Church would not be a candidate for a
historic tax credit rehabilitation.