CLAREMONT — The Planning Board has granted a Connecticut developer site plan approval to convert the former state office building on Water Street into 25 apartments.
The board approved the site plan for 17, one-bedroom and eight, two-bedroom units Monday with little discussion as it had already reviewed the project in depth during a preliminary site plan review on June 8.
The company, 1852 MB2 Claremont of Darien, Conn., hopes to complete the $4.8 million redevelopment late next year, Matt Bacon, one of the group’s principals, said. The plans are scheduled to be presented to the Historic District Commission on Thursday.
The 32,000-square-foot building is on the National Historic Register and renovations will require approval from the National Park Service in order for the developer to qualify for historic tax credits.
The four-story brick building was constructed in the 1830s and became part of Monadnock Mills, a textile manufacturer that operated along the Sugar River until closing in the 1930s. The state took over the building in 1980 and renovated it for state offices, which were closed in early 2023.
Under the urging of former City Manager Yoshi Manale, the City Council approved purchase of the building from the state in March 2025 for $700,000 with the purpose of controlling its redevelopment.
1852 MB2 Claremont bought the building from the city for $807,000 in December last year.
Still to be resolved is how the project will meet the parking requirements of one space per unit. The company owns 13 spaces, Bacon said, and the city has said it will work with him to find the remainder before a certificate of occupancy is issued upon completion of the project.
When the city bought the building it also purchased spaces across the street, though it did not sell them to the developer, City Manager Nancy Bates, who also sits on the Planning Board, said at the June 8 Planning Board meeting.
“The intention was to provide parking for the development of 17 Water St.,” Bates said, according to the minutes of the June 8 meeting. “In the process of the sale, the City Council was committed to working with them with parking spaces and between leasing or buying spaces.”
The city owns spaces on Crescent and Water streets, but has not decided on leasing or selling, Bates said.
Bacon told the Planning Board on Monday that the council asked him first go through the permitting process to determine the exact parking needs before it finalizes any agreement with 1852 MB2 Claremont. He said the company would like to purchase spaces.
“I believe we will have a collaborative process to meet all parking requirements,” Bacon told the board Monday night.
If an agreement is not reached with the city, other options exist and the only requirement is that the spaces are within 1,200 feet of the building, City Planner Austin Ford said on June 8.
The City Council also supported the redevelopment project by approving property tax relief for the building on June 10. The council agreed to freeze the pre-renovation assessment of the building for 11 years beginning on April 1, 2028 under state law 79-E, the provisions of which the city first adopted in 2015.
The purpose of the Community Revitalization Tax Relief Incentive law is to incentivize redevelopment by locking in the pre-renovation assessment of qualifying structures. The city has granted relief of varying time periods to several properties.
Currently, 17 Water St., is assessed at $1.4 million and the developer anticipates investing $4.8 million into renovations, according to Planning and Development Director Gina Gavan. The first five years of tax relief qualify under 79-E because the redevelopment brings an underutilized building back into productive use on the existing footprint. The council granted an additional four years because the structure is historic and added two more years because it is being redeveloped for residential use.
The company has already begun some interior demolition, Bacon said Monday. He told the council on June 10 they would like to begin work by July 1, pending all necessary permits, but certainly by Aug. 1.
Patrick O’Grady can be reached at pogclmt@gmail.com.
