AMESBURY — The city and BankProv have signed an extension for closing on the bank’s Market Square headquarters through June as the bank works to finish the last bits of demolition before the building can begin taking shape as the new City Hall.
Initially, the two sides agreed to close on the sale by the end of May, but the city agreed to an extension to allow the bank to finish the work it needs to do to secure its own separate space within the building.
“BankProv is currently constructing the demising walls to separate the retail branch from City Hall. That must be complete and the bank secure before we can close and have access to the building,” Mayor Kassandra Gove said.
The news broke Nov. 6 that BankProv intended to sell its landmark building to the city for $3.15 million. A portion of the 1850s era structure, located at 5 Market St., will be leased back to BankProv so it can continue banking operations there.
Under a 10-year agreement, BankProv will be using approximately 4,000 to 5,000 square feet of lobby and office space. The city will seek partial financing for the purchase, with the remaining $1.9 million coming from certified free cash.
The leaseback agreement with BankProv is expected to generate approximately $1.6 million, and annual lease payments from BankProv to the city will be used to service the debt of a 10-year bond authorization for a portion of the purchase price of the property, according to Gove.
On Thursday, Gove said staff are anxious and excited to see and move into the new space, with work finishing up the space set to begin as soon as the closing is complete.
“We’re in the process of getting on the schedule for certain vendors now so we can keep things moving,” Gove said.
As part of the move, the city clerk’s office, assessor’s office, treasurer/collector’s office, information technology, human resources, administration and finance, the office of retirement and mayor’s office will be relocated from the Town Hall building on Friend Street to the Market Square building. The Office of Community & Economic Development will also move from 39 South Hunt Road to the Market Street location.
Director of Community and Economic Development Nick Cracknell said he is very excited about the move.
“It is obviously going to be a great move for the office to be closer to the folks in City Hall. It’s going make it easier for us to, I think, engage the public and some of the departments that are in city halls, particularly from an economic development perspective,” Cracknell said.
The relocation is expected to occur in the fall, with one of the larger projects associated with the move being a review and cataloguing of the city’s records.
“We have documents dating back to the 1800s that need to be preserved and catalogued prior to being moved,” Gove said.
Thanks to state Sen. Barry Finegold, the city is anticipating a state earmark in the fiscal 2026 budget to help with the project, Gove added.
“The work with our records may continue in our current space after we relocate staff. Once that project is complete and we can safely relocate records, we will prepare the current city hall for use by other departments,” Gove said.
Matt Petry covers Amesbury and Salisbury for The Daily News of Newburyport. Email him at: mpetry@northofboston.com.