Manchester aldermen Tuesday approved three years of tax breaks for a Massachusetts developer to tear down the former Athens Restaurant and Central Ale House in Manchester and build a new eight-story apartment building with 77 apartments.
The building at 21 and 31 Central St. — to be called Grand Central Suites — will include one- and two-bedroom units and nearly 2,000 square feet of commercial space, according to the plans. The rents will range from $2,000 to $3,000 a month, according to project documents.
Grand Central Suites LLC had requested five years of relief.
The Community Revitalization Tax Credit program, under state law RSA 79-E, lets developers who improve blighted properties in downtown areas delay paying property taxes on the increased value of the improvements for five years.
Applicants must spend at least 15% of the pre-rehabilitation assessed valuation, or at least $75,000, to qualify.
Jodie Nazaka, the city’s economic development director, said the board historically voted to give developers the full five years of relief. However, she recommended Grand Central Suites receive three years of relief.
The developers will be able to request the remaining two years after construction is complete, according to city officials.
The combined 2021 assessed valuation of the two parcels was $765,900. The total project is expected to cost about $23.8 million, according to Nazaka.
During a public hearing Tuesday, Ward 2 Alderman Will Stewart said the project will serve the public good.
“We need housing and we need a lot of it,” he said. “It is a supply and demand issue. I am certainly also excited to have this number of units right in the heart of downtown with people living there 24/7 and spending money and bringing additional vibrancy to downtown.”
He said he would consider the full five years if developers offer affordable units.
Attorney Roy Tilsley, representing Grand Central Suites, said it would be impossible with the cost of materials, interest rates and construction on an urban lot, even with the tax relief.
“One of the real challenges here is we are building this building right to the footprint. It is not going onto a 30-acre lot,” he said.
Work on the Grand Central Suites project is expected to begin next month and be completed by December 2024.
