'Urban village' set for mill site
Proposal includes residences, shops
Old mill buildings in downtown Haverhill would be transformed into an urban village, with shops and hundreds of new residents, under a proposal approved by state officials and the City Council.
The proposal, initiated by Mayor James J. Fiorentini, makes use of a state ‘‘smart growth’’ tool, known as Chapter 40R, that encourages dense development near transit stations — such as Haverhill’s MBTA commuter rail station — and in areas where there already is concentrated development, such as city centers. City leaders won the state’s approval for the zoning change two weeks ago.
The approval paves the way for two large mixed-use projects to move forward. Together, the projects would translate into a $68 million investment in Haverhill’s abandoned mill buildings.
The Planning Office of Urban Affairs, a private, nonprofit housing developer affiliated with the Catholic Archdiocese of Boston, has proposed an $18 million renovation of a 78,000-square-foot industrial building on Granite Street. The project is expected to include a mix of first-floor retail space, consisting of three commercial units, and 57 residential units.
The second project involves the redevelopment of three interconnected mill buildings on a 5-acre site on Locke and Essex streets. The developer, Forest City Residential Group, is planning to invest roughly $50 million to convert the buildings, encompassing some 375,000 square feet, into commercial space and about 300 rental apartments.
The Cleveland-based real estate development firm plans a historical renovation of the buildings, which date to 1916 and were once used by the Hamel Leather factory, and later by Harry Stoller Co. Forest City has received $3 million in state tax credits for the project.
With the state’s endorsement, the City Council was able last week to create a ‘‘Smart Growth Overlay District’’ that encompasses more than 53 acres, or about 20 percent of the city’s downtown.
The overlay district allows developers to build mixed-use developments — projects that feature office space or retail shops on the first floor and residences on the upper floors — in the designated area as a matter of right. As a result, builders will no longer have to seek a special permit, as long as the City Council determines they have met design standards and other requirements.
‘‘Rezoning a portion of our downtown ... could spark millions of dollars of investment in Haverhill’s historic factory district,’’ said Fiorentini, noting that the city’s long-term plans call for the creation of an ‘‘urban village’’ that would incorporate a range of housing options to satisfy the needs of residents who earn varied incomes. ‘‘It will bring new retail opportunities and hundreds of new customers to our downtown.’’
The City Council’s decision to embrace the overlay district ‘‘shows a real commitment to create a vibrant downtown community,’’ said William H. Grogan, chief operating officer for the Planning Office of Urban Affairs.
‘‘We’re very excited to be working with the mayor and City Council.’’
Attempts to reach Forest City officials were unsuccessful.
The planned transformation of the old mill buildings on Granite, Locke, and Essex streets is expected to complement two other developments already under construction in downtown Haverhill. Both are being built by Boston-based Beacon Communities Development LLC.
One involves the historic rehabilitation of the century-old former Haverhill Board of Trade building on Walnut Street and its conversion into 146 rental apartments; the other involves the conversion of an adjacent former industrial building on Locust Street into 32 loft-style condominium live-work units.
Fiorentini said he is thrilled with the way the downtown area is evolving and called Chapter 40R a ‘‘valuable tool’’ for Haverhill’s future growth.
Builders who propose 40R projects must agree to set aside 20 percent of the residential units they create for people who earn low-to-moderate incomes.
The state provides financial incentives to communities that embrace Chapter 40R. Under the law, cities and towns that adopt a smart growth overlay zone are eligible to receive a cash payment from the state of up to $600,000. In addition, for each unit of housing that is built in a smart growth zone, a community is eligible to receive another $3,000.
Haverhill officials estimate the city could receive a total of about $1.5 million — including the initial $600,000 payment — as developments go forward. Haverhill is apparently the first city in the state to rezone a large portion of its downtown under Chapter 40R.
Brenda J. Buote may be reached at bbuote@globe.com. 