Manchester Board of Mayor & Aldermen reviews RSA 79‑E application for 944 Elm Street; no vote taken

At a special meeting, the Manchester Board of Mayor & Aldermen heard a presentation on an RSA 79‑E community revitalization tax relief application for 944 Elm Street that would convert the building’s second floor into six market‑rate residential units while preserving two commercial storefronts. No board vote was taken; city staff said the application will appear as item 24 on the board’s regular meeting agenda later the same evening.

Jody Nazzaca, economic development director for the city of Manchester, told the board the RSA 79‑E program offers “temporary property tax relief to encourage qualifying development projects” that provide at least one public benefit. Nazzaca said the applicant proposes three one‑bedroom units and three studios with sizes ranging from about 248 to 848 square feet and an estimated project budget of roughly $500,000 covering demolition, design, engineering and construction.

The application requests the maximum seven‑year tax relief period under RSA 79‑E. Nazzaca explained the project meets the city’s substantial rehabilitation threshold — set by city ordinance at 15% of pre‑rehabilitation assessed value or $75,000, whichever is greater — because the property’s 2022 assessed valuation is $848,000 and the estimated construction cost is just under $500,000.

Applicant Gary LaRusso described his financing plan as primarily self‑funded while he waits for interest rates to fall. “I’m using my own money,” LaRusso said, adding he expects to complete the project. He described design choices intended to make the units distinctive — built‑ins, murphy beds and furnished units aimed at attracting young professionals and empty nesters — and said a five‑year abatement would “make me happy.”

Alderman Terry raised concerns about rents and asked whether any of the units would be offered at affordable or workforce rates; Nazzaca and the applicant confirmed there are no deed‑restricted affordable units in the proposal. Alderman Terry said the proposed rents appear above HUD fair‑market rates and suggested the board consider a term shorter than five years without affordable units. Nazzaca provided FY2025 fair‑market rents for the Manchester metro area from New Hampshire Housing Finance Authority data referenced in the packet: studio $1,336, one‑bedroom $1,485 and two‑bedroom $1,948.

Alderman O’Neil noted the board’s past practice of approving abatement periods longer than five years only where applicants agreed to a deed restriction requiring affordable units and asked whether five years would be acceptable to LaRusso. LaRusso said he preferred not to accept a deed restriction and indicated five years would be acceptable if that eased approval.

Alderman General Vasquez and others expressed support for converting upper floors of downtown buildings to housing, citing increased downtown activity and challenges in renting ground‑floor commercial space. Nazzaca estimated the property’s post‑renovation assessed value could reach roughly $2.3 million and that property tax receipts could rise by about $28,000 in the first post‑rehab year; she also said a five‑year temporary abatement could save the applicant about $152,500 over that period if structured as in the packet.

The public comment period produced no speakers. With no final action on the RSA 79‑E application at the special meeting, the board adjourned after a motion by Alderman Long, seconded by Alderman Cantor; the chair called the voice vote and the motion carried.

The RSA 79‑E application and any proposed abatement term will return for consideration as item 24 on the board’s regular meeting agenda later that night.