Town of Erving - Redevelopment Of The Former IP Mill

From: Town of Erving
May 17, 2022

For the past two decades the Former International Paper (IP) Mill has sat vacant and waiting for its rebirth into contemporary society. Recently, the Town of Erving Select Board has been working to find a developer interested in the property and have reached a crossroads in the process.

History

The original structures at 8 Papermill Road were built in 1902 by International Paper. Over the next century the mill would expand into 8 buildings with many more sub-buildings and grow into a large employer of Franklin County residents. The company suddenly shuttered the mill in 2000 and the property was sold to a private developer who left the complex vacant and delinquent on property taxes. The Town began the process of taking the property while working with consultants to evaluate the site for contaminates. In 2014 the Town completed the taking of the property and over the next five years conducted a series of feasibility studies & evaluations to understand the potential future of the property. All of the studies are posted to the Town website here. The Town has received several grants to clean up and improve the site:

$200,000 to remove hazardous materials (plus an $80,000 match from the Town)
$500,000 to install a new, properly sized force sewer line and pump station
$600,000 to demolish several of the deteriorating buildings (on hold)
Various programs have been established in Town which may attract developers to this property including being designated an Opportunity Zone, New Market Tax Credit eligibility, and Property Assessed Clean Energy eligibility.

Zoning

In 2020 the Planning Board began meeting to discuss updating the Zoning Bylaws and the consideration of adding a “mill district”, proposed by the Planning & Administration staff. After consulting Franklin Regional Council of Governments they were advised that a Planned Unit Development overlay district would accomplish the flexibility in zoning with Planning Board oversight that they were considering and was a tool which neighboring communities of Amherst, Bernardston, Deerfield, Montague, and Sunderland had already adopted. After nearly two years of public discussion and research on the topic, five locations for this overlay district were proposed. The Former IP Mill was one of the five locations included and the district would not determine the use of the site but the form requirements of the buildings. The amendment was voted on at Special Town Meeting in March, and after lengthy discussion it lost by a narrow margin. The Planning Board continues to work on updating the bylaws with an attorney.

Process

The Select Board has two options when it comes to disposing of this property: request the Treasurer to auction the property to the highest bidder without consideration of the potential use or conduct a Request for Proposal process where the Select Board is allowed to evaluate proposals from developers based on predetermined criteria. In fall 2021 the Select Board decided that they would like to issue a Request for Interest which is a process where developers can submit general concepts which the Select Board can then use to inform how they write their Request for Proposal.

Request for Interest (RFI)

Prior to the Request for Interest process, there had only been interest from developers to use the site for commercial or industrial uses. The one formal response to the request for interest was from the developer The Community Builders. They proposed a two-phase plan, the first phase would convert the largest existing building into approximately 60 units of studio, one-, and two-bedroom housing units for market and affordable rates and demolish many of the other buildings. The second phase would include a new building to be used for senior housing or a commercial/industrial use. A public riverwalk would be included in the site design.

A second informal concept was shared by Rural Development Inc. It shared that the firm is interested in the property and that they envisioned it could be used for live/workspace for young professionals; affordable housing for individuals, families, or seniors; mixed-income condominiums; commercial space including restaurants, breweries, coffee shops, galleries; industrial space. It was proposed that if there were a residential use, it may be feasible to have 40 affordable housing units in a mix of one-, two-, and three-bedroom sizes plus 20 mixed-income condominium units for sale. A future phase could include 20 more units of mixed income housing. An idea included was that although much of the complex would need to be demolished, perhaps some could be kept as a “building as sculpture”. It was explained that due to their current capacity and projects they did not have the ability to put together a formal response with more specific numbers or plans.

Request for Proposals (RFP)

The Select Board considered the Request for Interest responses and discussed the rubric and requirements laid out in the Request for Proposals at public meetings throughout the winter. They unanimously agreed that residential, commercial, and light industrial uses should be given equal opportunity to succeed in the process and that the determination of the most advantageous use should be in the specifics of the proposal and that a mixed-use development would be preferable. They also included that they were considering dividing the nearly 50 acre parcel into a smaller parcel which the complex sits on and a larger parcel along the Millers River to be kept for public recreational use.

In March, the RFP was released and advertised in the State’s Central Register, Greenfield Recorder, Montague Reporter, Springfield Republican, and Boston Business Journal. Emails were sent to developers who had previously expressed interest and developers who have completed redevelopment projects at other similar sites were cold-called. Two site visits were conducted, and two addenda were issued with clarifying information and the deadline was extended to May 12 to allow more time for advertising.

Unfortunately, no responses were received by the deadline. A letter was sent by The Community Builders explaining that while they still have interest in the property, two changes would need to be made for them to submit a proposal in the future: a Planned Unit Development overlay district is adopted to allow for zoning flexibility and an amendment to the zoning definition of “multifamily” housing to allow for more than four units.

Next Steps

While the Select Board is disappointed that no responses were received, we are looking to the community to gather input on how we can best move forward as a community. As we understand it, there are three options for next steps with several considerations for each option:

Should the Town continue to hold the building in the short-term and long-term?

Do we begin selectively demolishing buildings or refrain from any more work at the site?

What funds, if any, beyond grant funds are we willing to spend? We have already been awarded $600,000 for the demolition of several buildings and more money may be available if the FORWARD bill passes. The total host of the demolition of the 5 buildings the grant is for is estimated at $933,000. This funding may have stipulations regarding the use of the property in the future.

How will we keep the grounds safe to our community & first responders?

How will the buildings continue to degrade over time and what potential risk does this pose?

Will we be able to renew our insurance policy? It is difficult finding an insurer for this property. We have requested several short term extensions to our current coverage but do not expect them to renew our policy in August. If we are able to find new coverage we expect the premium to be very high.

How much are we losing to taxes every year we keep this property in municipal control?

Should we ask the Treasurer to auction the building to the highest bidder?
No considerations to the proposed use or layout

Should we issue another Request for Proposal in the near future?
How will the market change over time?
Are there any changes needed in the RFP language or evaluation rubric?
Are there any zoning or bylaw changes which need to be considered?

The Select Board hopes to hear the voices of interested stakeholders as we move forward with this project. A community forum will be scheduled before the end of 2022 to discuss the future of the Former IP Mill. Until that is scheduled, interested stakeholders may send thoughts to the Assistant Town Planner mariah.kurtz@erving-ma.gov and they will be forwarded to the Select Board or come to a Select Board meeting at the Erving Senior & Community Center 1 Care Drive. At the June 6 meeting the Select Board will be briefly discussing the status of the current RFP and a more robust discussion is expected at their tentatively scheduled June 20 meeting.
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