The former Sherwood Tool Factory is a prominent, historic structure located in the Kensington section of Berlin and is an example of CIL’s innovative tax-increment financing. Situated along the Mattabessett River, only one mile from the town commercial center and train station, it served as a major employer for over a hundred years before closing in 2004. CIL negotiated a purchase with the owner and spent almost a year preparing architectural and engineering plans, conducting environmental testing, and securing town approvals. Another year was spent securing DEP approval of CIL’s remediation plan, which involved an Engineered Control Variance Request.
Town officials were extremely supportive of CIL’s effort to 1) redevelop the factory into 72 loft-style, market-rate condominiums, and 2) construct 14 new townhouses opposite the factory on the site of a former storage facility. Over a relatively short period of 6 months, CIL secured zoning amendments, Inland-Wetlands approval, and P&Z approval. Subsequently, the Berlin Town Council approved tax-increment financing to partially offset the costs of remediation. CIL financed the remaining costs from the proceeds with State Historic Tax Credits and a private construction loan.
- 72 Market-rate Condominiums
- Town of Berlin TIF project