SALEM — Developers are finalizing plans for what would be the largest redevelopment project the city has seen since the Great Salem Fire of 1914.
Prime Group Holdings is continuing its community outreach as it finalizes plans for the proposed Shetland Park redevelopment of a 30-acre commercial-industrial site into 1,200 mixed-income apartments.
The project would also include a 13-story hotel coupled with a new academic building and gym for Salem Charter Academy School.
The complex originally began as a group of mill buildings built in 1839 by the Naumkeag Steam Cotton Co., which produced bedsheets. The buildings at that time were known as Pequot Mill, home of one of the country’s first steam-operated cotton mills.
The facility initially employed 600 workers, which would balloon to 2,725 workers during World War II, making it the city’s largest employer.
The original mill buildings burned down in the fire of 1914, and in 1953 the complex was sold to Robert Lappin, inventor of the Shetland Vacuum Cleaner who renamed the complex Shetland Park.
Today, Shetland Park’s roughly 1 million square feet of commercial space is home to 190 different businesses, 13 nonprofits, five public service agencies, and one federal agency — the local branch of the Social Security Administration.
After appearing before the Salem City Council in July for a project overview, a concern shared by residents and city councilors was the need for affordability in the 1,200 rental units, which will be a mix of studio to three-bedroom units.
Prime Group initially proposed for 10% of the units to be priced at 60% of the area median income (AMI), and another 10% at 80% of AMI. The current AMI in Essex County for a single-person household is $115,800, according to the Massachusetts Housing Partnership.
However, the developer has since indicated it’s considering a deeper level of affordability beyond what is required by the 40R specifications, and is consulting with the city and residents of The Point neighborhood about a feasible price point for the affordable units.
The final affordability requirements will be established in any new zoning approved for the site and is expected to target a range of income levels. Preference in leasing affordable units will be given to Salem residents.
The redevelopment plan would also create walkways and pathways that extend to the waterfront to enable public access, harbor walks, parks, playgrounds, as well as more than 10 acres of publicly available green space with 400 trees where there was previously none.
“The idea really is to give people access to the water, to have kayaks or canoes, or just throw a fishing rod, because this is a public space,” project representative Greg Lane said.
“People in the neighborhood could come in and hang out there. And that’s really the vision — to give people more access to open space and the water, to get rid of all this asphalt, and make the buildings more usable.”
Also, the seawall will be rebuilt and raised 3 feet to address consistent issues of flooding, as well as capacity for stormwater storage. The plan also includes concepts for a business incubator program to assist emerging commercial businesses, as well as workforce partnerships and on-site union training.
The project would be completed in phases and Prime Group says there should be no interruption to businesses operating in Shetland Park. It has also indicated that it will work with the 13 nonprofits to keep them on-site.
Construction is expected to last 5-9 years and generate more than 1,000 union jobs as well as hundreds of new permanent jobs after the redevelopment, with Salem residents considered first, according to Prime Group.
“Most of the residents who live in The Point neighborhood work far from where they live,” project representative Ana Paniagua said. “So they have to commute or pay someone to bring them to work. So they are very happy that they are going to have an opportunity to work close to home.
“It’s one of the main priorities (Point residents have advocated for), along with creating affordable housing, and also additional parking, because they currently have difficulty parking, especially in these holiday months.”
Prime Group is surveying local residents to ask what additional requirements should be included in a community benefits agreement. Common suggestions have included adding a grocery store, a health center and more frequent bus service.
To address transportation concerns, the plan contemplates an electric shuttle service to the train station and the possibility of a water taxi to the Salem Ferry. Point Neighborhood residents will also continue to have parking access at the new underground spaces during winter storms.
The Prime Group will continue to work out the final details of a proposed zoning overlay and community benefits agreement to submit for city approval. Pending that approval, the project would then undergo a Massachusetts Environmental Policy Act review that could take up to a year followed by a Chapter 91 review for up to another year before construction could begin.
“While there is still much to discuss, I am confident that we are going to be able to work together as a city and as a community to ensure that the impact of this development is one that is balanced and positive for all involved, but in particular, to the Point Neighborhood,” said Lucy Corchado, president of the Point Neighborhood Association.
“Continued dialogue, transparency and a fair community benefits agreement are an integral part of this process.”
More information can be found at thefutureofshetlandpark.com.
Michael McHugh can be contacted at mmchugh@northofboston.com or at 781-799-5202