ACRE URBAN REVITALIZATION AND DEVELOPMENT PLAN

REPORT 2006 - OVERVIEW & CURRENT STATUS

The Acre Urban Revitalization and Development Plan is the earlier of the City of Lowell's two

20-year urban renewal projects approved by DHCD in 2000 under MGL Chapter 121A. The Acre Plan is also fortunate to be supported by an Urban Revitalization and Development Grant in the amount of $10 million. The Plan has been in the implementation stage for 6+ years. Considerable progress has been made with State, Council and community support. The City's goal remains to complete the majority of the Plan actions in the first 6-8 years.

The most effective use of this aggressive planning tool has been the authority vested in the City Council to acquire private properties through the use of eminent domain and the ability to dispose, or convey, those properties to a developer of choice without the cumbersome disposition processes of MGL Chapter 30B. The City has successfully acquired 20 properties in the Acre through eminent domain without resulting in any costly litigation.

An implementation plan exists in three phases. Phase I is completed and resulted in the new Stoklosa Middle School, affordable housing, and infrastructure improvements. The following provides a brief outline of the projects and activities that remain to be implemented to complete the Acre Urban Revitalization and Development Plan.

PENDING PROJECT UNDERTAKINGS (Phase II):

Relocation Effort for Phase II - relocation consultant under existing contract

Infrastructure

Public Relations

Projects and Phasing (see attached map for parcel locations)

The parcels shown below are smaller redevelopment projects within Phase III that would currently displace viable businesses, not having a blighting effect on the Acre. These projects would only be pursued in Phase III of the project if conditions changed enough to warrant their implementation.

ANNUAL ACRE FUND EXPENDITURE TOTALS

The Acre Budget, as defined in the Plan, projects project costs and anticipates income from sale and lease of real estate in the target area. It accounts for bond fees associated with borrowing. With the knowledge that implementing the urban renewal plan results in increased property values and an expanded tax base, we cover the cost of our short-term borrowing successfully. Projects create additional tax revenue, which offsets borrowing costs. A detailed audit of the Plan will be submitted to DHCD in May 2007. As a result of the Audit and new financial staff within the City, tighter controls and account management are put in place to track spending on the City's' two Plans.

The goals of the Acre Plan include preserving the existing housing stock, expanding affordable housing stock through new construction by converting industrial properties to residential use, redeveloping substandard parcels and constructing new housing on vacant parcels. The housing “Tracks” as they are defined in the Plan account for adding 300 new residential units to the area. Phase II defined above will result in 58 of those units. Phase I implementation resulted in over 200 units. Our goal is well within reach.

The City currently has grant funds and City appropriations at its disposal to pursue the continued implementation of the Acre Plan. Cost estimates give us confidence that costs will be covered for appraising, acquiring, relocating, clearing, grading and remediating the remaining acquisition sites. We also anticipate additional real estate revenue and increased tax revenue.

The appraisal profession continues to characterize the market in the Acre as soft. It is still in need of public investment to promote private interest. Until the City approved the Acre Plan there was no interest in private investment in the Acre. With the completion of the commitment to implement the Plan we should see a stronger market, less in need of public investment and an attainment of goals developed by and for the community.

KEY PROJECT HIGHLIGHTS OF 2006

Soucy Site (Parcels 3, 4, 5, 6, 7 aka 234-266 Mt. Vernon Street)

This land assemblage results in a development site just less than 2 acres. The Plan calls for a mix of one to 3 family homes, up to 29 units total with new roadway infrastructure to support the new homes. It calls for the relocation of a long run family owned steel fabrication industry. Soucy Ironworks has been in operation in Lowell for over 75 years. They employee approximately 40 full time employees, many Lowell residents, and approximately 20-30 part time or subcontractors depending on projects. Upon Plan approval, Soucy Industries had just relocated their operation to Mt Vernon Street from the Pawtucketville neighborhood, Riverside Street. They wanted a more appropriate location for their type of heavy industry. However, in the development of the Plan the community sought a consolidation of industrial zoning and focused on the need for housing in the neighborhood. Soucy Industries accepted this strategy for the common good and agreed to work with the City to relocate within Lowell. A Lowell relocation site is now available in the same Acre neighborhood on Western Avenue, appropriately zoned for heavy industry.

The City Council supported the eminent domain acquisition of the Soucy site on October 5, 2006. At this time the City is working with Soucy on their relocation goals. The DPD will continue to work with the City Council to select the most appropriate developer and seek the best design for homes at this site, addressing density and affordability.

Rock Street (Parcel 17)

This land assemblage will result in the City's ability to create 7 housing lots for the construction of 7 new duplex homes, resulting in 14 housing units, for sale to first time homebuyers at 80% or below median income. The City currently owns one of the parcels and is waiting to acquire the additional parcels under two ownerships to complete the assemblage. Two Lowell businesses, both auto related, would be relocated. The City Council Economic Development Subcommittee recently supported moving forward with all aspects of Phase II, which would include the Rock Street homes. A Phase II relocation Plan, which will be proposed to DHCD as an amendment to our original Relocation Plan, will allow the City to move forward with the final acquisitions. Appraisers are in the process of conducting the needed appraisals, which should be complete within 2 months when negotiations can commence.