October 18 â The Council of Mayors and Aldermen will hold a public hearing this week on an application for the RSA 79-E tax credit program to renovate a 43-unit building at 73 Hanover Street.
The planning board approved the project in the Independent Order of Odd Fellows building opposite the Palace Theater in July.
The tax credit program allows developers who improve dilapidated downtown properties to delay paying property taxes on the value of the improvements.
To be eligible, the applicant must meet several requirements under the law, including that the rehabilitation of the structure must cost at least 15% of the appraisal assessed before the rehabilitation, or at least $ 75,000.
Online appraisal records show that the appraisal appraised in 2021 for the project plot is $ 1,859,200. The proposed renovations total $ 7,664,000.
Red Oak Apartment Homes purchased the building for $ 1.5 million at the end of 2020 with the intention of converting the top four floors into apartments at market price. The company also owns the Hanover Street parking lots and the 10-story Citizens Bank building, which houses 91 apartments.
The proposed project consists of a five storey full basement commercial building having a footprint of 7,372 square feet along the south side of Hanover Street in the block between Elm and Chestnut streets.
The building recently housed retail on the first floor and commercial offices and studios on the upper floors.
The proposed floor plans submitted to City Hall show that the first floor will be commercial retail space, including a proposed one-story addition on the west side of the building.
The upper floors will be converted into residential apartments with 10 apartments on the second floor – 6 studios and 4 one bedroom – and 11 apartments on floors three to five (six studios and five one bedroom apartments on each floor).
The project will include a total of 43 residential apartment units, 24 studio units and 19 one-bedroom units.
A new elevator will be installed, as well as new plumbing, heating, electrical and mechanical systems. Currently, the fifth floor is partially open to a fourth floor auditorium below. There will be structural earthworks on the fifth floor, converting it to a full floor.
âThe plan describes the maintenance of the existing brick exterior walls, consistent with the historic character of downtown Hanover Street,â writes assessor Bob GagnÃ© in his review of the project application.
The application for the tax credit program requires a period of five years. City Ordinance 36.40 (C) under RSA 79-E: 5 states that the Council of Mayors and Aldermen may grant a period of tax relief of up to five years, but not exceeding.
The public hearing on the RSA 79-E tax credit program application for the project is Tuesday 5:30 p.m. at City Hall.