In a recent special meeting, the Manchester City Council convened to discuss a community revitalization tax relief incentive application for a property located at 1138 Elm Street. The proposal, presented by Economic Development Director Jody Nizaca and applicant Andrew Winslow of North Elm Rentals LLC, seeks to convert a four-story office building into a 17,000 square foot apartment complex with commercial space on the ground floor.

The project, estimated to cost approximately $5.2 million, aims to provide significant public benefits, including the addition of 36 new apartment units—14 designated as workforce housing and 22 as market-rate units. This initiative aligns with the city's goals of increasing residential density in the downtown area and enhancing economic vitality by attracting more residents and foot traffic.

Under New Hampshire statute RSA 79-E, the applicant is requesting a seven-year tax relief period, which is the maximum allowed for projects that include affordable housing components. The board discussed the implications of granting such a lengthy tax abatement, with some members expressing concerns about the duration compared to the standard five-year relief typically granted for similar projects.

The proposed development is expected to increase the property's assessed value from approximately $1.2 million to an estimated $7.25 million post-renovation, resulting in an anticipated annual tax increase of about $108,000. If approved, the tax relief could yield approximately $1 million in savings for the applicant over the seven-year period.

Council members debated the merits of the proposal, particularly the inclusion of affordable housing units, which they recognized as a critical need in the community. While some expressed hesitation about the seven-year request, others emphasized the importance of supporting developments that provide affordable options for residents.

The council ultimately acknowledged the potential benefits of the project, particularly in addressing the city's housing challenges. The discussion highlighted the delicate balance between incentivizing development and ensuring long-term affordability for residents in Manchester. The board is expected to continue deliberating on the application in future meetings.