City officials have been quiet about plans for the former Department of Employment Security building on S. Main Street since councilors rejected a deal with Dol-Soul Properties to build 125 market-rate apartments there six months ago.
But officials said this week that progress is being made behind the scenes to find a developer with a new vision for the property.
“We are soliciting proposals from interested developers – we are getting good interest in the property,” said Matt Walsh, Director of Redevelopment, Downtown Services & Special Projects for the city.
Walsh said there are a lot of questions city officials can’t answer while the negotiations process is underway, such as who the developers are, how many are involved and what the proposals are for.
Walsh said at least one proposal will eventually be presented to the city council – but it will likely be months before anything is made public.
Councilors have been open about the fact that they would like to see a mixed-use building, preferably one with housing – something the city desperately needs more of – and a restaurant or retailer come in on the bottom floor the development that will replace the former DES building, which has sat empty for years.
The project by Dol-Soul would have brought 125 units, a parking garage and a restaurant to the space. However, to complete the project, the developer wanted $3.5 million in financing through the city’s Sears Block tax district. The city spent $1.575 million in 2014 to purchase the building from the state.
“I think what sums it up for me is that there are math problems. I have not had one person approach me over the last month who has said, ‘I’m in favor of this.’ It’s been just the opposite,” said Ward 7 Councilor Keith Nyhan said in August, when the council rejected Dol-Soul’s proposal.
“I can’t help but think of all the other projects that are essentially competing for the same $3.5 million that could be invested elsewhere in the city,” he added. “If it was less than that, maybe $1 million, I think I’d be much more comfortable, but it’s a big chunk of money.”
Redevelopment of the former Department of Employment Security building on S. Main Street is key to Concord’s downtown economic future.
Nearby, the Smile Building, Capitol Commons building and the Bank of New Hampshire Stage have all been built in recent years as part of the revitalization of Concord’s downtown, particularly S. Main Street.
During its Monday night meeting, the city council was scheduled to vote on rescinding $440,000 in bonds and notes from the Sears Block Tax Increment Finance District that the city had allocated to pay for expenses when the city was working with Dol-Soul, like the demolition of the former Department of Employment Security Building.