A now-defunct department store that’s sat vacant for years in Newburyport could be on a path toward redevelopment as affordable housing.
Wheels are in motion to transform a former Kmart site inside the city’s Port Plaza Shopping Center into 212 units of rental housing, 25% of which will be affordable in perpetuity.
The city announced on Tuesday it had reached an agreement with site owner Richard Kaplan for the future redevelopment off Low Street. Per the agreement, the “Plaza Landing” project‘s 53 affordable units will be reserved for renters making no more than 80% of the region’s average median income, with the size of the family taken into consideration.
That means a single person making up to $91,200 and a two-person household making up to $104,200 would be eligible, according to the U.S. Department of Housing, which sets average median income limits based on region.
The 159 market-rate units will remain rentals for a minimum of 35 years under the agreement.
Kmart closed in the Port Plaza in 2017 and the large storefront has been vacant since. People living in the proposed development would have access to an array of amenities our their front door: a Shaw’s, Planet Fitness, ConvenientMD and more.
Between 2010 and 2020, Newburyport lost 300 rental units in the city, according to Mayor Sean Reardon, making the potential Kmart redevelopment “a significant step forward.”
“We are acutely aware of the major housing challenges in the city, region and state,” he said in a statement. “Inventory is low and costs continue to rise. Through our Housing Production Plan, we’re committed to looking at a number of other initiatives to create even more housing options.”
The development agreement is considered a “friendly plan” under the state‘s Chapter 40B affordable housing law, and it will raise Newburyport’s affordable housing stock above the state-mandated 10% threshold.
Chapter 40B enables local zoning boards to approve affordable housing developments under flexible rules if at least 20 to 25% of the units have long-term affordability restrictions.
The Port Plaza Shopping Center in Newburyport.Hadley Barndollar
The proposal will head to the state’s Department of Housing and Community Development for review. If approved, the city can issue a permit after the Zoning Board of Appeals reviews it. As part of that process, Kaplan, the developer, has agreed to build sidewalks and pay for a traffic study, water connection and building permit fees.
The city estimates the Plaza Landing development would generate nearly $700,000 in property tax revenue every year.
