A Massachusetts developer wants a tax break to tear down the former Athens Restaurant and Central Ale House in Manchester and build a new eight-story 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 $1,995 to $2,995 a month, according to project documents.
The Board of Mayor and Aldermen will hold a public hearing at 6:30 p.m. Tuesday at City Hall.
The heritage commission voted that the building has no historical significance, but the developers have agreed to pay homage to the Athens Restaurant, which has been important for the Greek community in the city.
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, wrote in a memo she believes the project qualifies for the relief.
“Rehabilitating these parcels and adding new residents to this block is an important step forward as we work to bring more residents downtown,” she wrote. “Replacing these empty, blighted buildings with working professionals will likely increase the sense of community and safety for neighborhood residents and business owners.”
The combined 2021 assessed valuation of the two parcels is $765,900. The total project is expected to cost about $23.8 million, according to Nazaka.
In 2022, property taxes paid on the two parcels was $14,203.
Attorney Roy Tilsley, representing Grand Central Suites LLC, said the company is requesting the full five years of relief.
“The tax relief will allow Grand Central to deliver a project that will provide market-rate housing in downtown Manchester in a location off Elm Street that is currently underserved by the current use of the properties,” he wrote in a letter to the board.
Nazar Vincent of Massachusetts-based Bridgewater Associates has previously said he recognized a need for such housing when he signed on for the redevelopment project.
The apartments will range from 596 to 935 square feet, according to project documents.
In August, aldermen approved a RSA 79-E request from Boston-based Jones Street Investment Partners, a private equity real estate firm focused on multi-family developments, to build a 250-unit apartment complex on West Auburn and Depot streets.
A brick warehouse building and the former John B. Varick Company agricultural store have since been torn down.
Work on the Grand Central Suites project is expected to begin next month and be completed by December 2024.
