MANCHESTER, NH – Rents at an upcoming downtown apartment building could be slightly lower after a decision by the Manchester Planning Board on Tuesday night.
An upcoming 77-unit building on Central Street obtained a reduction in required school impact fee payments from the board, given that it began construction prior to a modification in the school impact fee rates.
Newly-built residential units in Manchester are required to pay fees for the impact of their additional residents on the city’s school district and fire department. Prior to the rate change, all units were required to pay $3,120 per multi-family unit. However, that amount went down to $625 or one-bedroom units or units under 900 square feet given the assumption that units of that size would not likely have children entering the school district.
At the Central Street development, 42 of the units are eligible for this discount, bringing the total impact fee amount down from $240,625 to $135,625.
Nazar Vincent of Avatar Construction told the board that the reductions would go toward reduced rental prices and that the building is targeting young professionals from 25 to 45 without children as tenants.
The vote was not unanimous, with Andy Boyle serving as the only vote in opposition. Planning Board Member Robert Gagne said that he normally does not vote for impact fee waivers, but would in this case since the building will not be occupied until 2025 and that other developments in a similar situation had also been given waivers. However, he expected that this would be the last development receiving such an exception due to the rate change.