The sale of the former school administration building for development as downtown apartments needs approval from the City Council
Springfield School Department building on State Street.SPRINGFIELD – Mayor Domenic J. Sarno has selected a New Haven, Conn., company as the “preferred developer” of the former School Department administration building on State Street to convert the building to market rate apartments.
College Street Management (CSM North) of New Haven is proposing 30 to 35 apartments in the century-old building at 195 State St., which was vacated a year ago. The School Department moved to the old federal courthouse at 1550 Main St. last summer.
Sarno said he is “very excited” about the housing project, adding that it fits with the city’s goal of bringing in more market rate housing to the downtown area.
Under its proposal, CSM North would pay $1 for the property. The transfer needs approval from the City Council.
The price is “due to the immense investment required to redevelop the property,” said Brian M. Connors, deputy director of the city’s Office of Planning and Economic Development.
Connors estimated the developer will invest $3.5 million to $4 million in private funds, with no taxpayer subsidies.
One other proposal was received, submitted by GLC Development of Boston, offering $25,000 for the city property. However, GLC’s proposal required $500,000 in city funding commitments through its Neighborhood Stabilization Program and Community Development Block Grant program. The proposal would have also triggered low income restrictions, and was conditional on receiving a number of tax credits, Connors said in a project summary.
Domenic SarnoSarno said the $1 price offered by CSM North is offset by the city’s gains.
The city benefits from the major private investment, the restored use of the State Street building, new annual tax revenues estimated at between $40,000 to $60,000, and by the addition of market rate housing, Sarno said.
Groups that have supported the CSM North’s proposal include the State Street Alliance, the Armory Quadrangle Civic Association, the Business Improvement District, the Springfield Preservation Trust, and neighbors such as the Springfield Museums and Classical Condominiums, Connors said. A city review committee recommended selection of CSM North.
The School Department vacated the building due to concerns about building’s age, interior conditions, lack of air conditioning and poor ventilation.
Renovations will include a new heating and air conditioning system, an all new elevator core, and significant asbestos cleanup, Connors said. Parking will be available at an adjacent lot, under a planned agreement with the Springfield Museums.
The company has completed market rate housing projects in New Haven, Hartford, Lowell and Lawrence, and owns 22 properties in 10 cities in four states, Connors said.
The review committee consisted of Carol A. Costa, Glenn Davis, Samalid Hogan, Robert McCarroll and Holly Smith-Bove.
The City Council’s Planning and Economic Development Committee has a meeting scheduled Tuesday at 1 p.m., at City Hall to discuss the project.