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Pittsfield Accepts TIF Agreement With John's Building Supply
By Jack Guerino, iBerkshires Staff
01:18AM / Thursday, April 30, 2020
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PITTSFIELD, Mass. — The City Council has accepted a tax incentive agreement with Johns Building Supply, which wants to expand its business.
 
After some months of volleying the item between committees, the council took action Tuesday and accepted the tax incremental financing agreement that will aid the Crane Avenue building supply company to construct a new building.
 
"The TIF looked great. These are local business owners who are dedicated to the city and who want to improve their business," Councilor at Large Earl Persip said. 
 
With the proposed Ashuwillticook Rail Trail extension into Pittsfield, the 70-year-old company plans to move its office from the north to the south side of Crane Avenue.
 
William and Sherry Koziara, owners of Johns Building Supply, look to invest between $850,000 and $950,000 in the new building that will expand their retail business.
 
The new construction would allow them to bring in a new tenant and create a possible 10 new jobs.
 
According to the agreement, Johns Building Supply would be exempt from paying the increased property taxes for the first year. This percentage would step down over the five years. In year two, it would be exempt from paying 80 percent, 60 percent for the third year, 40 percent for the fourth year and 20 percent for fifth year.
 
There was some concern about wetland encroachment but at a March meeting, the city's conservation agent noted that he was working with the applicant and anticipated full cooperation in mitigation efforts. 
 
Director of Community Development Deanna Ruffer said this was still the case.
 
"I touched base with the agent today and they are fully complying," she said. "It was not a matter of building anything in the regulated area it was a filling and they have agreed to move forward with removal and mitigation."
 
Furthermore, she said, the filling happened on a separate adjacent parcel owned by the applicants.
 
Ward 2 Councilor Kevin Morandi, who was the only vote in opposition, asked if the mitigation has been completed and if a building permit had been awarded.
 
William Koziara said they do have a permit for the foundation work but both mitigation work and foundation construction have been suspended because of the COVID-19 pandemic.
 
"We will do what we got to do and we will get this straightened out," he said. "I know you may feel that other people may have not done what they said they were going to do, but I will." 
 
He said when the pandemic ceases, they plan to complete the work and apply for another building permit.
 
Morandi was taken aback that a permit was awarded when mitigation work was not complete and noted that he has heard multiple concerns about the property -- which is in his ward -- from surrounding businesses. 
 
"There are all kinds of materials and trucks and trailers back there and especially when the investment that is coming with the rail trail that will run along this property," he said. "... It is nothing against the business or the TIF but I want to make sure when the city has some leverage we use that."
 
He also asked if the item went before the Conservation Commission.
 
Ruffer said the conservation agent is the commission's enforcement agent and added that he had to sign off on the permit. He did this after the applicant accepted the mitigation plan. 
 
Persip added that the conservation agent was clearly OK with the process and that the council should not second guess him. 
 
"I will listen to the professional that we hired who has no issues with the conservation issues that they found," he said. "So I don't think holding this up any longer will do any good."
 
Ruffer added that the city does have leverage with the building permit.
 
There were questions about continued survey of the property and Ward 5 Councilor Patrick Kavey asked if there would be any follow up.
 
Ruffer said the conservation agent is on the case and will continually monitor the project.
 
There were also questions about the city's ability to make sure the business held up its part of the bargain. Mayor Linda Tyer said this has not been an issue in the past and that the city has a strict monitoring system for such projects.
 
Council President Peter Marchetti recused himself from the conversation and vote because of a new conflict of interest that did not exist during earlier meetings on the matter.
 
The City Council also appointed Paula King to the Board of Assessors.
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