By Patrick Adrian
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CLAREMONT — The Peterson building positioned along the Sugar River in Claremont has drawn interest for development into an apartment building after several years of standing vacant.
Chinburg Properties, a development company based in Newmarket, is under agreement to acquire 29 Water Street to create a residential building with 80 to 90 market rate apartments in Claremont’s historic mill district.
Chinburg Properties President Eric Chinburg, who sought the city council’s approval on preliminary items Wednesday, said he has been interested in developing the building for a number of years. Since 1996 Chinburg has renovated 17 former mill buildings into residential apartments in Maine, Massachusetts and New Hampshire. The company typically finances the projects through federal and state tax programs that incentivize the repurposing of old or historic buildings to spur economic development.
Chinburg’s units cater primarily to single adults or couples without children, rather than families, Chinburg said. The majority of units will be studio or one-bedroom apartments, with two-bedrooms apartments comprising about one-fourth of the mix. Units range in size from 500 square feet to 1,000 square feet, with an average unit size of 600-700 square feet.
“It’s our way to create spaces that people can afford but are market-value and nice,” Chinburg said. “That’s the way we’ve had to adapt to the rising costs of construction and regulatory compliance.”
Chinburg Properties supplement the smaller individual living spaces with multiple larger common areas, like fitness rooms and meeting rooms. Chinburg said he hopes to reach an agreement with the city to develop an easement adjacent to the property into a community green space and to develop a rooftop common area for tenants to enjoy the river view.
Claremont city councilors expressed excitement toward the proposal.
“That building is absolutely beautiful and it’s about time that something happens in it,” said Councilor Abigail Kier.
“Every time you walk by it and see it deserted is a stark reminder that we need to do something,” concurred Assistant Mayor Allen Damren.
The Peterson building was originally renovated in 2006 as part of the broader Monadnock Mills project that used federal stimulus to repurpose the district’s shuttered historical manufacturing buildings. The project included the renovation of 21 Water Street, which houses Red River Technology’s headquarters and The Common Man. The Peterson building is still owned by Sugar Mills Redevelopment, who intended to develop the building into condominiums, though the project stalled.
The council granted Chinburg’s request through a unanimous vote to remove a property use restriction on the deed to allow the building to provide rental housing, rather than strictly ownership housing or commercial use.
Chinburg said his company retains and manages its apartment buildings, as opposed to selling them once developed.
The timing of this venture aligns neatly with the city’s other major target: the Pleasant Street renovation project. On Wednesday, Aug. 26, the city council will consider a resolution to authorize a $4.6 million bond for downtown revitalization. If approved, the project will — in addition to upgrading the water lines beneath the roadway — reconfigure Pleasant Street to include a pedestrian plaza, lighting upgrades and new landscaping to increase opportunities for community gatherings, cultural events and tourism.
Claremont residents believe that revitalizing the downtown hinges greatly on its ability to attract younger professionals to live in the city. While the Pleasant Street revitalization aims to bolster the downtown’s nightlife, dining and arts, market rate apartments would fill a great local need, councilors pointed out.
“I’m in property management and the minute we have a vacancy in one of our units it’s gone in 24 hours,” said Councilor Deborah Matteau. “There’s like a 0% vacancy rate in Claremont. So to attract the people that we want to attract, there has to be a nice place for them to live, and this sounds like it’s going to be great.”
Chinburg said their properties attract a diversity of tenants, from younger professionals who commute to work to retired “empty nesters” who want a smaller home.
Also on Wednesday, Aug. 26, the city council will consider whether to approve a tax relief exemption, under New Hampshire RSA 79-E for the Peterson building. RSA 79-E is a state-created tax incentive program created in 2016 to encourage renovations or upgrades to commercial or residential properties by allowing the owner to continue paying taxes on the property’s pre-renovation value for a five- to 11-year period.
If approved by the council, Chinburg would only pay taxes on the Peterson building’s current assessed value, set at $45,000, for up to 11 years.
Chinburg said that these state-based tax programs are key components to financing these mill renovation projects. Chinburg also plans to seek federal historic tax credits for the Peterson building project, which were also used to fund the building’s renovation in 2006.
The project will also seek to acquire up to 30 additional parking spaces in the area to meet tenant needs. The Peterson building already has 94 leased spaces in the Sawtooth Parking Garage.
City Planning and Development Director Nancy Merrill said Claremont would plan to find “surface spaces” outside the garage property to fill the remaining need. The city owns 56 public spaces in the Sawtooth Parking Garage, which would not be impacted.
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