A developer and Somerville officials have both leverage and limits on their ability to shape the final version of the Copper Mill apartment tower proposal in Davis Square. Image courtesy of CBT Architects

For newly-elected Somerville Mayor Jake Wilson, it was an instant litmus test of his platform supporting denser housing development near transit.

Two weeks before Wilson took office in January, Boston-based developer Copper Mill submitted an application to MassHousing, in the first step toward building a 26-story apartment tower located a block from the MBTA’s Davis Red Line station.

Wilson and developer Andrew Flynn share potential risks and rewards in the outcome of the $260 million project, in a high-profile trial of the new administration’s proclaimed approach toward real estate development.

“In some ways, everything is in play and nothing is in play,” said Joshua Michel, a steering committee member of the Somerville YIMBY group, which supports higher-density housing development. “This goes through a very strict [permitting] process. As the public, we really have not a lot of leverage except to convince the Zoning Board of Appeals, probably through the mayor, to get Copper Mill to make changes.”

Copper Mill is seeking approval under Chapter 40B, the state law that allows developers to exceed local zoning regulations if they include at least 20 percent affordable units. Wilson indicated he could delay the project significantly by arguing to state officials that Somerville is exempt from Chapter 40B, if Copper Mill’s formal proposal doesn’t line up with his goals.

And Copper Mill’s Flynn has indicated he will seek approval under a “friendly 40B process,” referring to one in which the developer and community decided on key details of the real estate design, community benefits and affordability requirements before beginning the ZBA hearing.

The developer will open an information center at 235 Elm St. to present alternate designs in the next step before a formal proposal.

Mayor Awaits ‘Community’s Voice’

As a candidate, Wilson listed housing as his top issue and vowed to support upzoning near transit.

Now mayor, he has to navigate pressures from constituents asking for Copper Mill to drastically reduce the 320,000 square-foot project’s size, and a pro-housing group that’s seeking to expand its influence in local politics.

Ground zero in the debate is the row of storefronts at Elm and Grove in Davis Square, a neighborhood that’s become synonymous with Somerville’s gentrification in recent decades and quality of life concerns since the pandemic.

In a statement provided to Banker & Tradesman last week, Wilson took an arms-length stance on the Copper Mill proposal.

“We have big housing goals, and I’m serious about hitting them. But what happens at Copper Mill has to reflect what this community actually wants. I’ve said it before, and I’ll say it again: the community’s voice comes first,” Wilson said.

Opponents made their objections known at a sometimes-raucous community meeting this month, asking Copper Mill to reduce the building’s height by as much as 20 stories.

Developer Andrew Flynn says he plans to seek approval for his Davis Square project in cooperation with city leaders. That could lead to unspecified changes in the design of his 26-story proposal. Image courtesy of CBT Architects

Speakers cited disruption during years of construction, objected to the architectural style and warned of potential accelerating gentrification. Copper Mill estimates in its MassHousing application that studios – which would represent the largest share of unit types – would rent for $3,500.

The project also would include 126 affordable units, or 25 percent of the total, reserved for households earning a maximum 80 percent of area median income.

Average rent in Somerville hit $3,243 this month, according to data from Apartments.com, a CoStar service.

Wilson indicated he has an ace in the hole if Copper Mill’s formal proposal doesn’t line up with his administration’s goals: to assert “safe harbor” under Chapter 40B.

One “safe harbor” trigger is if affordable housing occupies more than 1.5 percent of the total land area zoned for residential or commercial use. The Somerville Zoning Board of Appeals has previously asserted that Somerville’s percentage is over 2.5 percent.

Displacement Argument Wielded by Both Sides

Flynn didn’t respond to requests for comment for this story. At the neighborhood meeting sponsored by Copper Mill this month, he argued that the infusion of new residents would benefit the neighborhood’s shops and restaurants amid rising commercial vacancies since the pandemic.

The market-rate units in the new development would be occupied by young professionals who otherwise would compete with families and neighborhood residents for existing apartments, he predicted.

The argument echoed portions of Wilson’s housing platform.

“I will continue to strongly advocate for upzoning near transit, one of the most important cornerstones of my campaign, to increase density where it’s needed most while also protecting our naturally occurring affordable housing,” Wilson stated in his campaign platform. “This approach will stem the displacement crisis while adding density where there is the most demand.”

The argument also resonates among residents such as members of Somerville YIMBY, who have lobbied in favor of upzoning areas such as Gilman Square and reducing minimum parking requirements for housing developments.

The group “generally supports” the Copper Mill project and is seeking more details from the mayor about his position, said Michel, the steering committee member.

“We have been critical of him not specifying how much [affordability] and leaving it rather vague,” Michel said.

Risk of Appeals, Limits on Returns

Copper Mill has leverage under the state Chapter 40B housing law.

Developers have to weigh the payoffs from pursuing Chapter 40B approvals, such as approval for more density than normally allowed, and the downsides, such as a cap on profits. Under state law, their return on equity is capped at 10 percent per year for rental projects.

Flynn has said Copper Mill wants to participate in a “friendly 40B process,” characterized by extensive discussions with officials and residents before beginning the ZBA hearing.

Steve Adams

“It’s slower and it likely will require more community process and planning before the permitting,” said Andrew DeFranza, executive director of Beverly-based housing developer Harborlight Homes. “You’re talking to neighbors and departments in advance to get agreement. If all goes well, your permitting process is smoother.”

While any proposed 40B project can be characterized as a “friendly 40B project,” the term is often associated with the Local Initiative Program administered by the Executive Office of Housing and Livable Communities, said John Smolak, a North Andover land use and permitting attorney.

The program requires the municipality to endorse the 40B developer’s project eligibility letter application, “but for political or other reasons, the LIP Program may not be the best approach for every project,” Smolak said.

If rejected by the Somerville ZBA, Copper Mill has its own fallback in an appeal to the state Housing Appeals Committee, which often overturns local boards’ denials of 40B projects.

“With 40B, the risk is always the developer will appeal a local decision if it’s denied, or if there are conditions they can’t live with,” said Clark Ziegler, the outgoing executive director of the Massachusetts Housing Partnership. “We always argue it’s in a community’s best interest to find common ground, and denying a permit is the riskiest thing for the town.”