Greylock Mill developers seek tax incentives from North Adams
NORTH ADAMS — The developers of the Greylock Mill are seeking tax incentives from the city to bolster their proposed $18 million renovation project.
Salvatore Perry and Karla Rothstein, principals of New York-based developer Latent Productions, will ask the City Council on Tuesday to approve a five-year special tax agreement, according to Mayor Richard Alcombright.
"The [agreement] has been drafted in compliance with all state regulations and provides for tax benefit to Greylock for the significant investment and eventual job creation while fully protecting the city should certain milestones within the agreement not be met," Alcombright wrote in a letter to the council.
Latent Productions purchased the former Cariddi Mill complex on State Road last year for $749,000 with the hopes of developing it into a multi-use residential, hotel, and production center.
Work already has begun on the first phase of the project — transforming what is known as the weave shed, the eastern portion of the complex, into Greylock Works, a space largely focused on artisan food production.
The complex, assessed at a value of $759,200, currently has a full tax bill of $28,796.45 annually.
Under the terms of the deal, the mill would pay no taxes the first year, 25 percent of its taxes the second year, 50 percent of its taxes for the third year, 75 percent of its taxes for the fourth year, and 100 percent of its taxes in the fifth year and beyond.
The company would save approximately $72,000 over the course of the first four years of the deal.
The agreement is contingent on Latent Productions following through with its planned investment, and the state Economic Assistance Coordinating Council must approve the mill as an Economic Opportunity Area.
The company must submit semi-annual reports of its progress to the city, including the complete dollar amount invested in the premises, which must meet the agreed-upon investment schedule. The first report would be due on Jan. 20, 2017.
Other conditions of the agreement include a demand that the Greylock Mill "use its best efforts to encourage tenants to hire city residents" and work with local institutions to ensure that happens.
"Our goal is to foster a culture of hard working people who are dedicated, conscientious, and passionate about what they are bringing to market," Perry and Rothstein wrote in a letter to the mayor. "Our primary focus is not high-growth, but rather high-integrity — starting with the people, imbued in the products, and contagious in the community."
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