CLAREMONT — The City Council on Wednesday unanimously approved a purchase and sales agreement for the former state office building on Water Street to a Connecticut developer who proposes to convert the historic mill building into 30, one- and two-bedroom apartments.
The purchase price of $1.02 million, is roughly $300,000 more than what the city paid for it earlier this year.
“This is a very exciting project for us as it is a very important building to the downtown,” Matthew Bacon with Anagnost Realty and Development of Manchester and one of the principals of the buyer, 1852MB Claremont LLC, told the council. “It is a historic structure with beautiful views and we are looking forward to bringing it to a useful and vital life.”
The council quickly voted to approve the agreement without discussion. The council had previously reviewed the two bids submitted in May and during subsequent discussions had all its questions answered, Councilor Nick Koloski said.
The proceeds from the sale will be used to pay the loan the city took out to buy the building for $700,000 plus any carrying costs, which as of Aug. 17 had totaled almost $47,000, the resolution approved by the council states. The remaining proceeds would go into the city’s general fund.
Last October, the state offered to sell the 19th century, four-story brick building to the city for about half its assessed value of $1.4 million and the council went through with the purchase in March.
Yoshi Manale, the city manager at the time, recommended the purchase to give the city some control over its redevelopment. The city also paid $45,000 to buy 20 parking spaces in front of the building, but those have not been designated for the building at this time.
The buyer, based in Darien, Conn., has seven days to make a deposit of $150,000 and then will have 30 days to complete an inspection of the property before closing, Mayor Dale Girard said Thursday.
The agreement includes several deadlines once the sale is complete. An architect has to be hired within 30 days and the developer will be required to apply for tax credits with the National Park Service within 120 days after completed architectural drawings are submitted. Once those tax credits are obtained, another 120 day deadline will require all permits to be applied for. Once they are approved, construction must begin within six months.
The apartments are scheduled to be ready for occupancy in January 2027, according to a schedule submitted to the council.
The same company is currently renovating the upper floors of 32-40 Pleasant St. and those apartments should be ready for occupancy in a few months, Bacon said. The council granted that project a 79E approval, which freezes the preconstruction property assessment for seven years.
