Rochester restaurant, apartments project gets tax relief

ROCHESTER — City councilors approved Tuesday night 11 years of property tax relief for a project that will convert downtown’s vacant Rochester Bank and Trust building into at least one high-end restaurant and half a dozen market-rate apartments.

The 22 South Main St. project will receive $281,341.98 in total relief over those 11 years in accordance with state RSA 79-E.

The RSA, also known as the Community Revitalization Tax Relief program, is a statewide incentive program that allows governing bodies to grant between 5 and 15 years of property tax relief to property owners looking to improve their structures. The goal is to spur redevelopment in downtown areas by allowing owners to continue paying taxes based on the property’s pre-renovation value, rather than the higher assessment triggered by the upgrades.

Ward 4 Councilor Geoffrey Hamann cast the sole opposing vote Tuesday night. There was no discussion prior to the vote, but councilors and city officials have previously said they believe granting a 79-E exemption for 22 South Main St. will expedite downtown Rochester’s revitalization and lead to other proposals.

Norm and Stacia Vetter, local residents and owners of Norman Vetter Poured Concrete Foundations, bought the prominent brownstone building last November with the intention of rehabilitating it.

Norm has said the plan is to get started on the renovations — estimated to be around $1.4 million — before the end of August. They hope to find a restaurant tenant within a few months and to have the residential units ready for occupancy within six to eight months. They believe the building’s unique facade, vaults, private 28-space parking lot across the street, and the city’s near-nonexistent rental vacancy rate will help them fill the building quickly.

“Really what Stacie and I are trying to do is give a little kickstart to the downtown,” Norm said last month. “Somebody’s got to take a little step and try to do something to get downtown going. With the help of the 79-E program, it really makes it beneficial for us and it does for the city as well.”

City Council is expected to review next month a separate 79-E proposal for the Hartigan block at 73-77 North Main St. Owner Justin Gargiulo is seeking 11 years of relief to offset $1 million in renovations he plans to make in order to turn the vacant building into a restaurant and seven market-rate apartments.

City staff will also ask councilors in September to consider expanding the 79-E program to include Gonic and East Rochester to aid efforts to revitalize those sections of the city.