Michaels Organization proposes 48 apartments at the Witt School
Two weeks after the YMCA of Greater Hartford came to Stafford to hear from residents about the services they wanted to see in town, Michaels Organization held a meeting to present its proposal to reuse the Witt School. This national organization claims to be the number-one private-sector provider of affordable housing in the nation. Its proposal for the old school in Hyde Park includes 48 units of affordable housing for people ages 55 and up.
As we learned with The Borough School project, what constitutes affordable is a complicated calculation based on the area’s income. However, according to the presentation, the Witt School apartments would rent for 25%-41% below market value. Michaels Organization would invest $33.8 million into the project, drawing on a mix of tax credits to make it feasible. As of right now, they do not expect to need any financing from the town—though residents did raise questions about the potential need for and costs of road upgrades and other infrastructure improvements.
The plan also calls for adding about 40 parking spaces on the side of the building as well as an addition to house a community space. While most of the renovation would aim to preserve the building's historic character—including replacing windows with replicas—the addition would not mimic the building's appearance. In fact, according to the representatives at the meeting, it must look distinct to qualify for historic tax credits.
While the details of any potential agreement with the Town of Stafford are yet to be fully fleshed out—that would come only if the Town chooses to move forward with this proposal—Michaels is proposing a ground lease for the school area and the parking lot beside the building. They say they would likely pay the town a fee based on the appraised value of the building, and a yearly “Payment in Lieu of Taxes” (PILOT). A PILOT is commonly used to offset property tax losses caused by state-exempted properties, such as state-owned land. Michaels is suggesting paying 5% of the yearly rent collected as its PILOT. The representatives also noted that they would still be subject to any other taxes or fees that residential buildings in the area are required to pay, such as the service district tax.
Several community members were worried about whether the organization could sell or sublease the property after the project is finished. While it’s not the goal, it is possible. Matt Lupini, Senior Development Associate from Michaels Organization, said that would be determined by whatever lease agreement it signs with the Town.
The full proposal can be found on the Town’s website. There is a 30-day feedback period, and those who were unable to attend the meeting can submit their feedback via this form.
