Three Rivers Slum & Blight Inventory Three Rivers Village Center Target Area. March, 2016 Town of Palmer Alice Davey, Community Development Director

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1 Three Rivers Slum & Blight Inventory Three Rivers Village Center Target Area March, 2016 Town of Palmer Alice Davey, Community Development Director

2 Introduction The Town of Palmer, through its Community Development Department, with assistance from the Quaboag Valley Community Development Corporation and Tighe & Bond has completed an inventory of the Three Rivers Village Center Target Area in order to determine if the area meets the definition of a substandard, blighted, or decadent area as defined in MGL c.121a and c.121b. Palmer Town Manager, Charles T. Blanchard, as chief official, has determined that the Three Rivers Village Center Target Area does meet this definition, that it is in a state of disrepair and that there is a pattern of visible disinvestments (see Appendix A). This designation will allow the Town of Palmer to seek funding critical to the revitalization of the area which will be used to eliminate the current conditions of blight on an area basis and will be used to prevent further blight by addressing marginal properties, which if left unassisted, will deteriorate further. This designation will allow the Town of Palmer to undertake a Façade/Sign Program, a Streetscape Program, and other activities that support neighborhood revitalization. The inventory shows that the Three Rivers Village Center Target Area meets the definition and criteria to be considered a Slum and Blighted area. The inventory shows that 40% of the buildings experience physical deterioration, 60% of the commercial units are vacant, 32% of the commercial buildings have high vacancy rates, and 78% of the commercial buildings have abnormally low property values. In addition 89% of streets, 84% of sidewalks, 92% of curbing, 93% of drainage, 100% of parks/playgrounds, are in a deteriorated condition. Background The Town of Palmer, population 12,140 is comprised of four (4) villages; Bondsville, Depot, Thorndike and Three Rivers. The Villages of Bondsville, Thorndike and Three Rivers came into existence due to the manufacturing plants constructed on the banks of the rivers flowing through them. During the 1800 s and into the mid 1900 s the factory owners built mini towns to provide for their worker s every need. Main Street businesses flourished until the factories began to downsize and eventually close. The captive market the Main Street business owners once had was now gone and their businesses suffered. Three Rivers is no exception. The Otis Factory building in Three Rivers was utilized until about 1997; a place where hundreds of people reported to work every day. The employees went to local restaurants for lunch, shopped at the hardware store, grocery store, furniture store and clothing store. They patronized the local bank and had their hair done at the local barber shop/hairdresser. Business was good. When Tambrands left the area the customer base shrank and slowly, one by one, these businesses closed. Also during this time people became more mobile, large shopping malls, less than an hour drive away opened, big box stores with cheaper prices began to appear everywhere, and people began to utilize the internet for purchasing goods. People s shopping habits changed from shopping locally for quality products to purchasing at the lowest price regardless of quality, the local businesses suffered more.

3 Today the existing store front vacancy rate for Main Street Three Rivers is 63%; 43% of the commercial buildings no longer have commercial activity in them; and the remaining businesses are struggling to survive. The Otis Company Building is now the Palmer Technology Center and home to about 20 small businesses, which employ far less than the hundreds who once were employed in this building. Some Main Street building owners are finding it impossible to find commercial tenants for their commercial storefronts, so they have resorted to converting these spaces into residential units in order to have sufficient income to cover the expense of owning the building. The Three Rivers Chamber of Commerce and Town of Palmer recognize that if action is not taken immediately to reverse this trend the commercial area of Three Rivers will be lost forever. High vacancy rates and a lack of modernization have resulted in Main Street Three Rivers looking tired. High store front vacancy rates means less people are downtown resulting in a sense of unease for the few people who do patronize the few downtown businesses, especially after dark. In October of 2014 an anchor restaurant which had been in business for approximately five (5) years closed its doors due in part to customer s concern for personal safety. If patrons could not park in front of the restaurant they did not go there. Parking is plentiful with both on and off street areas; however, the off street areas are not desirable after dark due to a lack of lighting and poor visibility. The two most convenient off street lots are located behind the Main Street buildings, and feel isolated. The Three Rivers Village Center Target Area The Three Rivers Village Center Target Area is anchored on the west by the Palmer Technology Center and on the east by St. Stanislaus Polish Lyceum. The area encompasses about 40 acres along Main Street in the Village of Three Rivers (see map in Appendix B). The area contains 28 commercial buildings of which 9 are mixed use; 10 residential buildings, primarily at the east end of the Target Area; and 2 public facilities, Laviolette Field and Hryniewicz Park, the later a classic New England Town Common. The chart below depicts the land use within the Downtown Three Rivers Target Area. Three Rivers Village Center Target Area Land Use 48% 1% 9% 7% 35% Commercial Residential Transportation Open Space Public/Institutional

4 From 2014 to 2015 business closings were occurring every few months. Amoroso s Restaurant in the fall of 2014, the Copacabana Restaurant in the spring of 2015 and the Three Rivers Water Department, Village Barbers and Dominik s Restaurant in the summer of 2015, and the laundromat in January There are 36 businesses remaining in operation in the Downtown Three Rivers Target Area, 20 of which are located in the Palmer Technology Center. The remaining operating businesses on Main Street include a grocery store, package store, take out/delivery pizza, bank, hairdresser, cultural center, fraternal organization, education center, karate studio, lawyer, dentist, CPA, 2 convenience stores, hardware store and a Post Office. The Three Rivers Village Center Target Area is in Census Tract 8103, primarily Block Group 1 with a small area at the east end in Block Group 2. According the U.S. Department of Housing and Urban Development Block Group 1 is 68.44% LMI and Group 2 is 53.18%. An internet search found two (2) buildings listed for sale one of which is also available for rent. The Amoroso building is available with a modified net lease at $0.74/sf/month or for purchase at $110.13/sf. The Dominik Restaurant Building is available for purchase at $41.10/sf. Sale prices in Depot Village range from $45.51/sf to $124.96/sf for similarly zoned properties and advertised rental prices are about $0.83/sf/month. Downtown Three Rivers is located at the confluence of the Quaboag and Ware Rivers which meet and form the Chicopee River. At the west end of the Target Area are beautiful views of the rivers, but no access. The Quaboag River enters Three Rivers from the south and flows along the property line of Laviolette Field, which is used primarily for soccer and little league and attracts hundreds of people to Downtown Three Rivers. At the west end of the Downtown Three Rivers Target Area is Hryniewicz Park a town common type park with a neighborhood playground and gazebo. The Three Rivers Chamber of Commerce utilizes this park for village events several times a year. The target area displays a noticeable trend of deferred maintenance, disinvestment and hopelessness as documented in this inventory. Methodology The Town of Palmer utilized the Quaboag Valley Community Development Corporation for the building inventory and Tighe & Bond for the public improvement inventory. Both inventories were conducted using guidelines provided by the Massachusetts Department of Housing and Community Development. In order to be considered a slum & blight the area must: meet the state s definition of substandard, blighted or decadent areas as stated in MGL ch.121a and ch.121b;

5 have at least 25% of the properties experiencing one or more of the following conditions; physical deterioration of buildings or improvements, abandonment of properties, chronic high occupancy turnover rates or chronic high vacancy rates in commercial or industrial buildings, significant declines in property values or abnormally low property values relative to other areas in the community, known or suspected environmental contamination, public improvements throughout the area in a general state of deterioration. MGL ch.121b defines the following: Blighted Open Area: a predominantly open area which is detrimental to the safety, health, morals, welfare or sound growth of a community because it is unduly costly to develop it soundly through the ordinary operations of private enterprise by reason of the existence of ledge, rock, unsuitable soil, or other physical conditions, or by reason of the necessity for unduly expensive excavation, fill or grading, or by reason of the need for unduly expensive foundations, retaining walls or unduly expensive measure for waterproofing structures or for draining the area or for the prevention of the flooding thereof or for the protection of adjacent properties and the water table therein or for unduly expensive measures incident to building around or over rights-of-way through the area, or for otherwise making the area appropriate for sound development, or by reason of obsolete, inappropriate or otherwise faulty platting or subdivision, deterioration of site improvements or facilities, division of the area by right-ofway, diversity of ownership plots, or inadequacy of transportation facilities or other utilities, or by reason of tax and special assessment delinquencies, or because there has been a substantial change in business or economic conditions or practices, or an abandonment or cessation of a previous use or of work on improvements begun but not feasible to complete without the aids provided by this chapter, or by reason of any combination of the foregoing or other condition; or a predominantly open area which by reason of any condition or combination of conditions which are not being remedied by the ordinary operations of private enterprise is of such a character that in essence it is detrimental to the safety, health, morals, welfare or sound growth of the community in which is it situated. Decadent area: an area which is detrimental to safety, health, morals, welfare or sound growth of a community because of the existence of buildings which are out of repair, physically deteriorated, unfit for human habitation, or obsolete, or in need of major maintenance or repair, or because much of the real estate in recent years has been sold or taken for nonpayment of taxes or upon foreclosure of mortgages, or because building have been torn down and not replaced and under existing conditions it is improbable that the buildings will be replaced, or

6 because of a substantial change in business or economic conditions, or because of inadequate light, air, or open space, or because of excessive land coverage or because diversity of ownership, irregular lot sizes or obsolete street patterns make it improbable that the area will be redeveloped by the ordinary operations of private enterprise, or by reason of any combination of the foregoing conditions. Substandard area: any area wherein dwellings predominate which, by reason of dilapidation, overcrowding, faulty arrangement or design, lack of ventilation, light or sanitation facilities or any combination of these factors, ae detrimental to safety, health or morals. The Three Rivers Village Center Target Area meets the definition of a blighted, substandard, decadent area because the survey documents the area is detrimental to safety, health, morals, welfare or sound growth of the community because of the existence of buildings which are out of repair, physically deteriorated, unfit for human habitation or obsolete or in need of major maintenance or repair, because of a substantial change in business or economic conditions. The Department of Housing and Community Development defines physical deterioration of buildings as those buildings whose condition meets the definition of fair or poor, and public improvements that are in a general state of deterioration. Fair Condition: building shows clear signs of deterioration indicative of a property that has not been maintained for 5 to 10 years. Some building components may be nearing the end of their serviceable life. Small wood and metal trim pieces of buildings may be lifting away from primary surfaces. As least 25% of roofing and related surfaces, including roofline, trim, flashing, and chimneys may be brittle, curled, cracked, and missing, with overall signs of aging, and exhibit levels of deterioration specific to this category. As least 25% of doors and windows may be old and worn, loose, ill-fitting, drafty and otherwise energy inefficient and may have peeling paint or deteriorating vinyl or other surfaces. Exterior walls have at least 25% of surfaces with missing, broken or otherwise deteriorated siding, painted surfaces in progressed state of peeling, or brick surfaces needing repointing. At least 25% of porches, stairs, and decking show early signs of deterioration including worn, cracked, and warped components affecting components such as treads, balusters, rails, jousts, and support posts. Foundations have cracks and voids over at least 25% of surface area. Storefronts and signage are aging, with architectural features that may have been covered with sheet metal, asbestos, asphalt, or other materials from renovations of earlier decades. These covering materials as well as any exposed original surfaces are now showing signs of deterioration over at least 25% of their surfaces. Infrastructure, including parks, playgrounds, and parking facilities, is older and needs regular maintenance and repair. Streets and sidewalks are cracked, uneven, patched, and not conducive to convenient pedestrian and or vehicular travel. Slow drainage causes some ponding to occur during heavy rains.

7 Poor Condition: building appears to not have been maintained for at least 10 years and have components which are beyond the end of their useful life. Exterior trim is missing altogether. One or more major building systems may be in danger of failure. The roof may be sagging with areas of extensive wear, exposed sheathing, and evidence of leaks over at least 50% of surfaces. Roofline trim, flashing, and chimneys exhibit levels of deterioration specific to this category. At least 50% of doors and windows may be rotted, broken, missing, and/or boarded up, with peeling paint or deteriorating vinyl or other surfaces. Exterior walls have at least 50% of surfaces with missing, broken, or otherwise deteriorated siding; painted surfaces rotted or in advanced state of peeling paint or brick or other masonry surfaces needing repair or repointing. At least 50% of porches, stairs, and decking exhibit hazardous and unsafe conditions including sagging, rotted and missing components, and separation from the main structure. Foundations are extensively cracked with missing stone or masonry over at least 50% of areas; indications of structural instability, and may require replacement and shoring up, including sill work. Storefronts and signage are nearing end of useful life with original or old replacement materials which are extensively deteriorated over at least 50% of their surfaces. Infrastructure, including parks, playgrounds, and parking facilities, show advanced stages of deterioration and appear not to have been maintained for an extensive period of time. Streets and sidewalks and other paved surfaces are rutted, cracked, heaving, and appear to require full reconstruction. Curb reveals are minimal or nonexistent. Conditions pose hazards to pedestrian and or vehicular travel. Some surfaces are severely deteriorated and infrastructure is generally antiquated, undersized, or obsolete. Regular street flooding occurs due to poor drainage. The building survey conducted by the Quaboag Valley Community Development Corporation found 40% of the buildings in the Three Rivers Village Center Target Area in Fair or Poor Condition, meaning they are out of repair, physically deteriorated, obsolete and/or in need of major maintenance or repair, and one abandoned building unfit for human habitation. Each building in the Target Area was evaluated based upon the definitions of excellent, good, fair and poor, provided by the Massachusetts Department of Housing and Community Development. Property rating sheets can be found in Appendix C and a location map of property conditions can be found in Appendix D.

8 Commercial Building Conditions 14% 4% Excellent 29% 54% Good Fair Poor. Residential Building Conditions 30% Good 70% Fair Tighe & Bond assisted with the public improvement evaluation. The infrastructure in the Target Area was evaluated based upon the definitions of excellent, good, fair and poor, provided by the Massachusetts Department of Housing and Community Development found above. This evaluation resulted in a finding that: 89% of the linear feet of roads are deteriorated 84% of the linear feet of sidewalks are deteriorated 100% of the parking areas are deteriorated 100% of the public facilities are deteriorated 14% of the lighting is deteriorated 100% of the catch basins are deteriorated 100% of the water system is deteriorated Rating sheets and condition maps of the public improvements can be found in Appendix E.

9 Abandoned properties are defined as residential, commercial or industrial buildings or lots that for the previous 24 months: Have been completely vacant With owners who have not paid property taxes, utility bills or mortgage; or With owners who have not been responsive to notices or citations concerning the property from the municipality. Utilizing Tax Collector records, staff of the Community Development Department determined there is one (1) abandoned property in the Three Rivers Village Center Target area. The owner stopped paying the property taxes in 2006 and moved out of State. In 2013 the Town of Palmer took possession of the property through the tax title process. The property was part of an auction in 2014, but no one bid on it. Chronic high vacancy rates refers to commercial or industrial buildings that have been completely unoccupied for a total of 12 out of the previous 24 months. Utilizing knowledge of the area and discussions with property owners, staff of the Community Development Department was able to determine that nine (9) commercial buildings in the Target Area have chronic high vacancy rates. A location map of the properties that are abandoned and experiencing chronic high vacancy rates can be found in Appendix F. Abnormally low property values relative to other areas in the community refers to buildings or lots in which assessed market values, on a square foot basis, are 25% lower than the average values of other districts in the community with similar zoning and land uses. The Three Rivers Village Center Target Area is zoned Village Center District II. Staff of the Community Development Department created a spreadsheet of all properties in each of the Village Center Districts. The information was then sorted by property use and values of buildings and lands were compared on a square foot basis for each use. Twenty-two (22) commercial buildings were found to have abnormally low property or land values. The range of disparity in building values was found to be 25% - 185% lower than other districts in the community and 25% to 125% lower for land values. A location map of properties with abnormally low property values can be found in Appendix G

10 Comparative Building and Land Values Village Average Assessed Building Value Compared to Three Rivers Average Assessed Land Value Compared to Three Rivers Three Rivers (VC II) $18.16 sq ft $1.79 sq ft Depot (VC I) $32.05 sq ft 76.5% higher $6.01 sq ft 235.7% higher Bondsville (VC III) Thorndike (VC IV) $38.60 sq ft 112.5% higher $3.69 sq ft 106.1% higher $18.43 sq ft 1.5% higher $2.42 sq ft 35.2% higher

11 Summary The results of the completed inventory demonstrate that the Downtown Three Rivers Target Area meets the definition of a Slum and Blighted area because the inventory documents that the area: 1. Meets the Massachusetts definition of substandard, blighted, or decadent as stated in MGL ch. 121A and ch 121B; and 2. The area has at least 25% of its properties experiencing one or more of the following conditions: a. Physical deterioration of buildings or improvements; b. Abandonment of properties; c. Chronic high occupancy turnover rates or chronic high vacancy rates in commercial or industrial buildings; d. Significant declines in property values or abnormally low property values relative to other areas in the community; or e. Known or suspected environmental contamination; Or f. Public improvements throughout the area are in a general state of deterioration Summary Tables Meets Criteria Criteria # Buildings % of Buildings # of Properties % of Properties a Physical deterioration of buildings 15 40% 15 41% or improvements b Abandonment of properties 1 3% 1 3% c Chronic high occupancy turnover rates - or chronic high vacancy rates in commercial or industrial buildings d Significant declines in property values or abnormally low property values relative to other area in community e Known or suspected environmental contamination 9 32% 8 29% % 33 89% - -

12 Three (8%) buildings experience 0 of the above conditions; 22 buildings (58%) experience 1of the above conditions; 10 buildings (26%) experience 2 of the above conditions; 6 buildings (16%) experience 3 of the above conditions and; 1building (3%) experiences 4 of the above conditions Two (5%) parcels experience 0 of the above conditions; 18 (49%) parcels experience 1 of the above conditions; 10 (27%) parcels experience 2 of the above conditions; 6 (15%) parcels experience 3 of the above conditions; 1(3%) of the parcels experience 4 of the above conditions. Meets Criteria Public Improvement Amount Deteriorated Roads 2,101 lf 90% Sidewalk 6,281 lf 85% Lighting 21 43% Storm Drains 30 94% Sanitary Sewer 4,520 lf 3% Curbing 6,084 lf 92% % Deteriorated When looking at all public improvements on each road 5 roads (45%) received an overall rating of fair and 6 roads (55%) received an overall rating of poor. No roads were considered good or excellent. Roads are not structurally deficient but would benefit from a milling and repaving. Harsh winters have created pot holes that require constant maintenance during the spring, roads have been overlaid too many times and no longer have a proper crown or slope to appropriately direct storm water. Sidewalks have cracked over time, contain tripping hazards and are not handicap accessible. Many of the side streets lack light poles resulting in dark neighborhoods. The lighting that does exist on Main Street is the standard metal pole and unattractive. These poles are on the opposite side of the street from the utility lines which detracts from the view of Main Street (utility lines on both side of street). Storm drains are considered to be in need of upgrading based upon their estimated age and the condition of the catch basins. Storm mains are being to break and in one area back up into private property during periods of heavy rain. Catch basins are in a general state of disrepair, including rusting and cracking. Curbing is deteriorated and no longer exists in areas within the Target Area. Roads have been overlaid too many times resulting in no curb reveal, concrete curbs have deteriorated and in some areas no longer exist. The Base-line Information Form for CDBG activities to prevent or eliminate conditions of slums or blight can be found in Appendix H.

13 Appendix A Town Manager Declaration

14 Appendix B Downtown Three Rivers Target Area Map

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16 Appendix C Property Rating Sheets

17 Appendix D Property Condition Maps Commercial Properties page Residential Properties page

18 Appendix E Public Improvement Rating Sheets

19 Public Improvement Condition Maps Deteriorated Roads, Sidewalks and Lighting page Deteriorated Parking, Parks and Drainage page Deteriorated Sewer and Water page

20 Appendix F Location Map Abandoned Properties and Properties experiencing chronic high vacancy

21 Appendix G Low Value Properties Commercial and Residential