The Newport City Council is set to review a purchase and sale agreement for the former Coggeshall School property at its meeting on Wednesday, December 11. The proposed deal with BCM Realty Partners, LLC would transform the site into apartments aimed at providing workforce housing opportunities.
City Manager Colin K. Kennedy has submitted the agreement for council consideration, along with a resolution that would authorize the council chair to sign on behalf of the city.
The agreement calls for BCM Realty Partners to pay $1 million for the property, located at Van Zandt Avenue and Evarts Street. The developer plans to create 32 one- and two-bedroom apartments, with 26 units in the historic school building and six units in three new duplex structures.
A key point of negotiation has been ensuring workforce housing availability. While the city pushed for rent restrictions on the one-bedroom units, the current agreement language allows BCM to charge market rates for all units.
The developer has committed to providing “one and two bedroom apartments at market rates for work force housing opportunities,” according to the proposed agreement. BCM argues that rent restrictions would make it difficult to secure investors and financing for the project.
Christopher J. Behan, Newport’s city solicitor, will present the matter to the council. In background materials, he notes that the developer cited increased construction costs associated with preserving the historic school building as a factor in its position on rents.
The agreement includes several conditions aimed at maintaining the property’s residential character. It stipulates that no units can be rented for less than nine-month terms, prohibiting short-term vacation rentals. Additionally, the total number of units is capped at 32, with a maximum of 44 bedrooms across the development.
As an incentive for the project, the city has agreed to a modified tax arrangement. The property’s assessment would be reduced to $1 million at closing and remain at that level until a certificate of occupancy is issued for the school building renovation. For the first full fiscal year after that, the developer would receive an 80% exemption on real property taxes.
This tax incentive is in lieu of benefits the project might have been eligible for under the city’s existing tax stabilization ordinance for capital improvements.
The agreement also requires BCM to make improvements to a nearby public park at its own expense, as detailed in the developer’s response to the city’s original request for proposals.
If approved, the closing would take place within 240 days of the agreement’s execution, with a possible 60-day extension if zoning approvals are still pending.
The sale stems from a request for proposals issued by the city in March 2023 for the reuse of the former school. The council accepted BCM’s proposal in July 2023, leading to the current negotiations.
Wednesday’s council meeting will determine whether to authorize the council chair to sign the agreement and related documents, pending final review by the city solicitor.
The Coggeshall School project represents a significant redevelopment opportunity for Newport, potentially adding to the city’s housing stock.
