‘Easier said than done’: Former mill cities struggle to rehab vacant, blighted properties in Western Mass.

 

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***LET'S WORK TOGETHER TO FIND SOLUTIONS! THESE OLD MILL BUILDINGS WERE STURDY & WELL CONSTRUCTED (if they haven't been damaged by rain/snow) THE PLYMOUTH CORDAGE FACTORY IS A PRIME LOCAL EXAMPLE OF  RE-USE OF A HEAVILY CONSTRUCTED BUILDING THAT HAS BEEN  RE-CYCLED****  PLYMOUTH CORDAGE FACTORY  ‘Easier said than done’: Former mill cities struggle to rehab vacant, blighted properties in Western Mass. August 7, 2025 By Hallie Claflin

While walking along Holyoke’s sprawling canals, it’s hard to ignore the former mill city’s industrial past and historic design. Established as a textile and paper manufacturing center, Holyoke became the largest producer of paper goods in the country by 1885. It was also home to some of the largest silk and alpaca wool mills in the world.

Now, dozens of those old mills sit boarded up along the canal system and have been mostly vacant for decades. Some are close to collapsing, while others are covered in graffiti. Scattered across the center of downtown, the battered brick buildings are an untapped opportunity and serve as a constant reminder to city leaders of what could be.

In recent decades, historic mills and old industrial buildings in Gateway Cities across the Commonwealth have been renovated and converted into much-needed housing. The projects are often a way for cities to preserve their historic charm while creating modern residential units in high demand. They also help to revitalize post-industrial era cities that suffered from the long-term decline of manufacturing.

But while Eastern Massachusetts cities like Lowell and Lawrence have had success – with almost no former industrial buildings left to restore – cities farther west with weaker housing markets, which don’t enjoy the luxury of being connected to Greater Boston via the commuter rail, still struggle with an array of blighted properties that have yet to be developed. In these communities – like Holyoke, Springfield, and Fitchburg – the housing market doesn’t support rents that attract developers for these projects.

State and federal funding is almost always needed, but those tax credits and payouts come slowly to only a handful of developers who are willing to invest years into a project before making a profit. But many aren’t willing to stick around, according to Aaron Vega, Holyoke’s director of planning and economic development.

“It's hard to get state money. There's a backlog,” said Cassandra Witthaus, associate director of real estate at The Neighborhood Developers, a nonprofit affordable housing developer in Chelsea, Revere, and Everett. “It might take a year or two, sometimes longer than that, depending on the project.”

The stigma that comes with being a diverse, low-income city is another factor that stunts housing development in Holyoke. Small businesses that would otherwise promote growth and further development don’t want to open next to old, blighted buildings that are boarded up, Vega said.

“Developers seem to just pass Holyoke by, and that's where the perception comes in,” said local resident and developer Denis Luzuriaga. “That whole perception of Holyoke being bad – plus developers just not seeing the right kind of projects here – I think we're somewhat stuck. The question is, how long will it take? Will it be years, or decades?”

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Even with a 10-year anchor tenant providing a stable source of revenue, most banks turned Luzuriaga and his brother Marco down when they asked for a loan to fund a small restoration project that ultimately created 18 market-rate apartments in an old wire manufacturing mill. Some said it was too risky because the brothers were first-time developers, according to Luzuriaga. Others said they wouldn’t loan the money because the project was in Holyoke.

The restoration project was lucky to receive funding from the state’s Housing Development Incentive Program – the only state tax incentive for market-rate housing in Gateway Cities. City officials say the program is essential in areas like Holyoke, where market conditions create barriers to private investment. But Marco Luzuriaga said competition for HDIP funding is high, and they were turned down for other projects despite having architectural plans and cost estimates.

These restoration projects are often seen as a cheaper and faster alternative to new housing construction, which developers say couldn’t be further from the truth.

Blighted properties and century-old mills often require extensive environmental clean-up and remediation efforts, which is time-consuming, expensive, and drives developers away. Five developers have backed out of restoring the 230,000-square-foot former Merrick Thread Mill because the cost alone to get the building “site ready” has been estimated between $12 million and $20 million. Half of the building needs to be torn down, and the lead paint, asbestos, and other contaminants need to be abated.

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