MassDevelopment.com: Press Room: MassDevelopment, Mass Permit Regulatory Office Announce $49 Million in Low-Cost Financing for Haverhill Mills

MassDevelopment, Mass Permit Regulatory Office Announce $49 Million in Low-Cost Financing for Haverhill Mills
Under New State Guidelines, Project Uses Smart Growth Zoning Overlay Zone
January 9, 2008

Contacts:
Adam Bickelman, MassDevelopment, 617-330-2086
Kofi Jones, EOHED, 617-788-3652

MassDevelopment and the Massachusetts Permit Regulatory Office today announced a $49,000,000 financing package for Cleveland-based Forest City Enterprises, developer of Haverhill Mills, a 305-unit mixed-income apartment complex in Haverhill. Forest City is using tax-exempt bond proceeds to rehabilitate four, early 20th century mill buildings – once used for shoe manufacturing – located on a four-acre parcel of land adjacent to Duncan, Essex, Locke and Winter streets. Of the housing units, 61 will be designated affordable and offered to individuals earning up to 50 percent of the area median income. Forest City officials broke ground for the mixed-use project last summer.

"The Patrick Administration is delighted to see the City of Haverhill using the incentives of Chapter 40R to bring new life to these old mill buildings and surrounding neighborhoods," said Undersecretary of Housing Tina Brooks. "Actions like these are helping us to keep communities strong, vibrant and economically viable for residents all across the Commonwealth."

"This project exemplifies what we can get done when government, quasi-public agencies and business work together," said Undersecretary of Business Development Greg Bialecki. "We are excited to see growth and smart development throughout Massachusetts."

Haverhill Mills is the second project in Haverhill to utilize the city’s smart growth overlay zone created under Massachusetts’ new 40R legislation. The Department of Housing and Community Development oversees the municipal-level implementation of 40R and on February 8, 2007 approved the adoption of the Downtown Smart Growth Overlay District. The Downtown Smart Growth District contains three developable subdistricts allowing for the construction of 526 residential units. For all developments within the District not less than 20 percent of the housing units constructed must be affordable. The new zoning regulations approved by the Department of Housing and Community Development also provide for an expedited zoning approval process.

"MassDevelopment’s tax-exempt bond program is an important economic development incentive that can help attract companies willing to invest in the revitalization of the Commonwealth’s cities and towns," said Robert L. Culver, MassDevelopment president/CEO. "In this case, coupling access to low cost financing with Haverhill’s establishment of a 40R smart growth development district and efficient permitting proved to be a powerful magnet for investors."

Established in 1921, Forest City Enterprises, Inc., a $9.5 billion publicly traded real estate company, is principally engaged in the ownership, development, acquisition and management of commercial and residential real estate throughout the United States. A NYSE-listed real estate company (NYSE: FCEA and FCEB), based in Cleveland, Ohio, its portfolio includes interests in retail centers, apartment communities, office buildings and hotels throughout the United States. Forest City is committed to building superior, long-term value through a consistent strategic focus on projects in markets with high-growth potential and challenging barriers to entry.

"We are excited to bring a quality Forest City development to the City of Haverhill," said David Levey, Forest City executive vice president. "Haverhill has several qualities we look for in the cities or towns we choose to work in. It has a beautiful stock of mill buildings set for redevelopment, the downtown is situated near a scenic river and right next to the highway, and we’re right across the street from a commuter rail station. Haverhill Mills will showcase smart growth development at its best."

MassDevelopment, the state’s finance and development authority, works with businesses, financial institutions and local officials to stimulate economic growth across the Commonwealth. During FY 2007, MassDevelopment financed or managed 211 projects statewide representing the investment of more than $2 billion in the Massachusetts economy. These projects are supporting the creation of more than 1280 new housing units and more than 11,000 permanent or construction-related jobs.