Peabody Sells Tannery I Complex To Private Developer

From the Office of Mayor Edward A. Bettencourt, Jr.: Mayor Edward A. Bettencourt, Jr. is pleased to announce the sale of the Tannery I Apartments to WinnDevelopment. The agreement preserves 284 units of affordable housing in Peabody and bolsters the city’s flood management assets through the acquisition of a dam near the site.

“The sale of the Tannery to WinnDevelopment will enable many low-income Peabody residents to remain in their homes and continue to be part of our community,” said Mayor Bettencourt. “It will also secure a significant portion of Peabody’s affordable housing stock for decades to come.”

Indeed, the Tannery’s deed-restricted affordability, under the Commonwealth's affordable housing preservation program, expired in March of 2018. The owner of the Tannery received an offer to purchase the property for $37.5 million. Unencumbered by low-income use restrictions, the would-be buyer was thought to be considering a plan to convert the Tannery into primarily market rate units. This of course would have struck a disastrous blow to the city’s efforts to maintain and grow its stock of affordable housing.

Fortunately, MGL Chapter 40T exists to help preserve privately-owned affordable housing like the Tannery. The law establishes notification provisions for tenants, a right of first refusal for the Department of Housing and Community Development (DHCD) or its designee to purchase publicly-assisted housing, and tenant protections for projects with affordability restrictions that terminate.

As the DHCD’s designee, partnering with the City, WinnDevelopment sought the resources necessary to purchase the Tannery, rehabilitate all 284 units, and extend the affordability restrictions another 40 years.

Team Effort’ Lauded

“The agreement to save the Tannery represents a remarkable team effort,” said Mayor Bettencourt. “Working together with my administration, the City Council, members of our state legislative delegation, and DHCD, WinnDevelopment proved to be exceptional partners.”

“This is perhaps one of the greatest examples of government collaboration on all levels for the protection of our residents and the betterment of our community,” said State Representative Tom Walsh.

"The need to preserve and increase the supply of affordable housing exists both in my district and throughout the Commonwealth," said State Senator Joan Lovely (D-Salem). "I am pleased to have been part of the team that helped to preserve much needed affordable housing in Peabody so that more people can continue to enjoy living in this terrific city."

“This is wonderful news,” said City Councilor Anne Manning-Martin. “The Winn Management Team has already proven to be a conscientious partner with the city in our effort to provide safe affordable housing for our residents, many of whom are disabled or seniors on fixed income.”

“The preservation of the affordable units at the Tannery Apartments is an important event for the Ward 2 residents that live there as well as the City,” said City Councilor Peter McGinn. “The residents will benefit from ongoing affordability and major upgrades to the property planned by the new ownership. The City will avoid losing 284 units counted by the State as affordable which would have been a major setback in achieving the City’s affordable housing goals.”

“I am very proud that the City took the necessary steps to ensure that the Tannery Apartments will continue to offer affordable housing,” said Rep. Ted Speliotis.”

Dam Acquisition

As part of the sale agreement, the City of Peabody was deeded a modern, registered and licensed dam that sits on the Tannery II property. The dam will help retain water that might otherwise flow into Peabody Square and further strengthens the city’s overall flood mitigation efforts.