FALL RIVER — Two local developers were granted tax breaks on three housing projects that will bring 45 market-rate residential units and five affordable residences to the downtown area.
“This is a leap of faith. As far as I can remember, we’ve talked about bringing market-rate and new housing to help spur the economy after hours and even in hours,” developer Anthony Cordeiro told members of the city’s Tax Increment Financing Board on Thursday.
The tax abatement agreement has a combined value of approximately $129,000 over a 10-year period.
The agreement begins in 2021 with the first five years at 80 percent exemption of increased valuation. The last five years, the exemption is 20 percent.
Cordeiro’s company, Downtown Development Company LLC, will build 16 rental units at the Benjamin Nathan building with 13 market-rate at 162 Pleasant St., and 12 rental units at the former trolley building at 30 Third St. with 10 at market rate.
According to the TIF application, Cordeiro will invest $3.35 million and $2.26 million for the projects respectively.
David Hebert, of Hanover Properties, also received the TIF Board approval for tax relief for 10 years to redevelop the former Lincoln School at 439 Pine St. into 22 market-rate apartments.
With the same schedule as Cordeiro’s tax agreement, Hebert’s property will be exempt 80 percent in the first five years, then down to 20 percent exemption in the last five years with an estimated savings of $175,916.
Consultant Anthony Gudas said the project will cost $6 million and Hebert is also seeking state and federal tax credits as the project still has a “financial gap.”
“Realistically we should be able to start construction in the fall,” said Gudas after TIF Board member Frank Marchione asked about the developer’s timeline.
Cordeiro, along with partners Alan Couto and Alan Macomber, developed Commonwealth Landing located on the Taunton River with 103 upscale market-rate apartments. The property also houses businesses, including restaurants and educational institutions.
“That’s what I envision in being able to develop 28 units and have people with disposable income that can create a synergy that can create a “live and play” situation and that’s what I see happening,” said Cordeiro.
Hinting there was a bigger housing project on the horizon, Cordeiro said he has property at the corner of Bedford and Seventh streets where he plans to build a 5- or 6-story rental housing project that would create another 125 units, should the Pleasant and Third streets projects pan out.
Mayor Jasiel Correia II, who is the chairman of the TIF board, said the projects make sense as the city attempts to diversify its housing stock in the downtown area.
The three tax increment incentive agreements require City Council approval as well as state approval.