A streamlined zoning plan is aimed at paving the way for what would be the largest real estate development in the Town of Newbury's history.
Beacon Communities LLC of Boston, and Coastal Partners LLC of Beverly, are partnering on a proposal to build a mixed-use development on a 100-acre site that includes 32 acres on Route 1 targeted for a smart-growth district.
The project at the intersection of Middle Road and Hanover Street, which is being called The Village at Little River, would include 150 housing units, 122,000 square feet of retail space, and 48,000 square feet of office space.
The Board of Selectmen recently approved filing an application with the state Department of Housing and Community Development for preliminary approval of the smart-growth district. Through the state law, Chapter 40R, cities and towns are encouraged to create so-called smart-growth zones, where streamlined permitting is used to attract dense residential and mixed-use developments.
The state rewards participating communities with one-time incentive payments, and bonus payments once housing units are permitted.
Smart-growth districts allow uses in addition to those permitted by the existing zoning.
The developers are proposing to locate 98 of the housing units in the targeted smart growth zone. Included would be 68 rental units and 30 condominiums for those 55-and-over. Twenty percent of the rental units and 25 percent of the senior units would be affordable.
Currently, 3.6 percent of Newbury's housing stock is classified as affordable, well below the 10 percent the state has set as a mandate for all cities and towns.
"It really just seemed a good option for creating the affordable units because Newbury really does need a broader choice of housing," said Judy Tymon, town planner.
"The whole idea of having smart-growth appealed to the town," she added. "Having denser development in one part of town kind of relieves pressure for development in other parts of town."
The Planning Board identified the site as a good one for a smart-growth district because it is near the Newburyport train station and is underutilized, Tymon said. Zoned for industry, it has just one operat ing business, a recycling hauler.
Tymon said by creating the zone, Newbury would receive a one-time payment of $75,000 and later payments totaling $288,000 once housing units were permitted.
Board of Selectmen chairman Dr. Vincent J. Russo said he is "cautiously optimistic" that the overall project would benefit the town.
"I like the fact that there are senior dedicated units," Russo said. Also appealing, he said, is that the developer has offered to provide the town with a new senior center - the facility would be located on the first floor of one of the proposed office buildings.
He said the project also would help broaden the tax base in Newbury, which he noted is currently about 98 percent residential, and overall would generate needed revenue.
A consultant hired by the town estimated the development would net of about $440,000 in annual tax revenue after the costs of town services are subtracted. The site generates $11,512 in annual taxes, according to the town's website.
Of concern, Russo said, is the height of the proposed buildings, which may require the town to purchase a new ladder truck for the Fire Department.
In addition, if the project results in more school-aged children than the 30 or fewer estimated, that could prove costly for the town, he said.
Tymon said residents also have voiced concerns about potential traffic and environmental impacts - the site has considerable wetlands and is traversed by the Little River, a tributary to the Parker River.
The developers need approval from Newburyport to tie into its water and sewer systems. Mayor John Moak said he has just set up a task force to study whether the city could meet that demand.
Jason Korb, a development director for Beacon Communities, LLC, said the project was inspired by a 2005 study undertaken by Newbury and Newburyport that identified the site as a good one for a smart-growth development.
He said the project is envisioned as a village-style development that reflects the character of the town.
"We are integrating residential, retail, and office together to create something very walkable," he said. "We've designed the site to have a Main Street feel with storefronts facing the main street" and parking to the rear.
"In some ways, we are trying to create a little downtown for Newbury," he said.
Korb said the project would be environmentally sensitive, noting that it incorporates water conservation measures and that no structures will come within 50 feet of wetlands. Conservation restrictions barring future development would be placed on all the wetland areas, which comprise a sizable portion of the 100-acre site the developers have agreements to purchase from two private owners.
The developers also have committed to traffic improvements, said Korb, who noted that the companies are meeting regularly with residents to address their concerns.
"This is really collaboration between us and the town and hopefully, Newburyport," he said.
