City of Newburyport Reaches Agreement to Develop Former Kmart Site into Rental Housing

NEWBURYPORT — Mayor Sean Reardon announces that the City of Newburyport has reached an agreement with a developer to create 212 units of rental housing at the former Kmart site at Port Plaza off Low Street.

Highlights of the Plaza Landing project include:

• 25 percent of units will be affordable. Renter eligibility is set at no greater than 80 percent of the region’s Average Median Income (AMI), with size of family taken into consideration.
• All affordable units will remain in affordable status in perpetuity.
• Non-affordable units will remain as rentals for a minimum of 35 years.

“The City lost more than 300 rental units from 2010 to 2020, so the Plaza Landing proposal is a significant step forward,” Mayor Reardon said. “We are acutely aware of the major housing challenges in the City, region and state. Inventory is low and costs continue to rise. Through our Housing Production Plan, we’re committed to looking at a number of other initiatives to create even more housing options.”

The agreement with site owner Richard Kaplan is considered a “friendly” plan under the state’s Chapter 40B affordable housing law, in that the City and Kaplan have agreed upon guidelines and potential fees in advance.

Significantly, Port Plaza will raise Newburyport’s affordable housing stock above the state’s mandated 10 percent threshold. Chapter 40B creates a pathway for affordable housing developers to seek state approvals and bypass local zoning ordinances and regulations in communities below the 10 percent “safe harbor.”

Mayor Reardon will sign a Local Initiative Project application, which Kaplan will forward to the state Department of Housing and Community Development for review. DHCD will review the proposal and visit the site. DHCD approval allows the City to issue a Comprehensive Permit through Zoning Board of Appeals review.

Kaplan has agreed to build sidewalks and pay for a traffic study, which will be part of the ZBA permit review. He will also pay for the water connection and building permit fees. Kmart has been vacant for seven years. The city estimates that Plaza Landing will generate nearly $700,000 in property tax revenue annually.

Mayor Reardon would like to thank members of the Planning Department who worked diligently on behalf of the City. He also would like to thank at-large Councilors Afroz Khan, Ed Cameron, and Heather Shand, Ward 1 City Councilor Sharif Zeid, and Ward 5 City Councilor Jim McCauley for providing vital feedback throughout negotiations.