The phrase “sadder but wiser” seems to be tailor-made for the recent problems with the conversion of the former Sacred Heart Church on Pleasant Street to condominiums. So does the phrase “in hindsight.”
The project, carried out by Concord developer Jon Chorlian, clearly would have qualified for property tax relief under state law 79-E. That law allows municipalities to forgive, for a variable number of years, the value of improvements made to properties of historic, economic, cultural or social value to the community when rehabilitating the property would benefit the public.
By saving rather than leveling the gorgeous 1934 church and placing the property on the tax rolls for the first time, Chorlian provided a major benefit to the city and its taxpayers.
The law gives local authorities, in this case Concord’s city council, wide latitude in applying the law.
The tax value of improvements can be forgiven for as little as one year or, when affordable housing is involved, for seven or more years. But the law, as often happens, is less than perfectly clear. Same for the city’s interpretation of it.
The law originally applied only in two small zones, one along Main Street and the other in the heart of Penacook village.
Last year, at Chorlian’s request, the council expanded the redevelopment zones to include all historic properties anywhere in the city, a smart move that encourages the re-use rather than the demolition of buildings that give Concord a sense of self.
Unfortunately, the law does not say when in the process an applicant for relief under 79-E must submit an application, but it does say that the property value used as the baseline is its assessment at the time the relief application is approved.
Chorlian purchased the property early last year when the building’s appraised value was just under $1.5 million, but he didn’t submit his 79-E application until last month when its renovation was nearly complete.
Presumably by the time the city council approved the request, which was withdrawn last week, the beginning and ending values for calculating the tax relief would be virtually the same.
The value of the tax break, an average of roughly $6,000 per year per condominium buyer, would have gone to the condo owners, not to Chorlian. One of those buyers is Concord Deputy City Manager Brian LeBrun.
LeBrun recused himself from all involvement with the project and informed City Manager Tom Aspell and Mayor Jim Bouley of the conflict. That was appropriate.
City councilors, however, were not informed. Doing so was neither legally or ethically required but it would have, for appearances sake, been smart.
Similar conflicts are likely to occur in the future, and we encourage maximum transparency.
Redevelopment projects are vital, and 79-E has proven to be a great way to facilitate them. That will likely be used in the eventual redevelopment of the other church put on the market by Christ the King Parish, St. Peter’s on North State Street, as well as other properties.
The city should make its rules and policies regarding 79-E as clear as possible. That means urging applicants to apply soon after a potentially eligible property’s purchase.
It is also city council policy, by tradition though not in writing, that relief under the law be granted only if it’s deemed necessary to the financial success of the redevelopment.
That requirement should be spelled out and the policy should give the benefit of the doubt to developers willing to gamble on making money and providing a public benefit.