Board Opposes Pennrose Funding, Votes Not To Support CPC Articles

CHATHAM – The select board voted last week not to support a town meeting request for Community Preservation Act funds for the two affordable housing projects being developed by Pennrose.

 The board was split over the private company’s request for community preservation funding for projects on Meetinghouse Road and Main Street. The majority opposing the funding said they didn’t see the need for the town to contribute to the projects given loans and other support the town has provided to the private Pennsylvania-based developer.

 “To me, this is corporate welfare at its best,” said board member Stuart Smith.

 Pennrose requested $750,000 for each project from the community preservation committee. However, with requests exceeding available funds, the committee members decided to reduce the Pennrose allotment, chair Gary Toenniessen said at the Feb. 25 select board meeting. The committee reduced the request for the Main Street development, which has been approved by the zoning board of appeals, to $400,000, and cut the Meetinghouse Road request to $100,001.

 Local support is important for Pennrose’s ability to secure state tax credits for the projects, he said.

 “If they can show that there’s strong local and regional support, that enhances their chance of approval,” he said. Pennrose has also requested community preservation funds from other towns. Harwich has recommended $100,000, but the community preservation committee in Orleans rejected funding both the Main Street and Meetinghouse Road developments.

Select board Chair Dean Nicastro noted that the land disposition agreements the town has with Pennrose for both properties do not commit the town to providing additional funding.

 “I’m a little skeptical about providing funds, but that’s me,” he said.

He wasn’t alone. Both Smith and board member Cory Metters joined Nicastro in voting against select board support for the two separate articles, while Shareen Davis and Jeffrey Dykens voted to endorse the expenditure.

The community preservation committee was also split over the articles, but endorsed both. Under the Community Preservation Act, funding requests must have the support of the committee to be placed on the annual warrant, where voters have the final say. The select board’s position is advisory.

Under the town’s agreements with Pennrose, the sale price of the Main Street property was $2,090,000, with $715,000 of that as a loan from the town and another $500,000 in a loan from the town’s affordable housing trust. The sale price of the Meetinghouse Road property is $500,000, with the trust providing a $300,000 loan.

Smith said it was clear from the agreements that the town does not have to provide additional financial support for the projects. He noted that Pennrose is a for-profit company, but has not revealed the investors in the Chatham projects.

Dykens said it was “mind-numbing” to call the town’s support for the projects into question at this point. He noted that the town contributed CPA funds to Pennrose’s conversion to housing of the former Cape Cod 5headquarters in Orleans.

 “Why would we not support our own projects?” Dykens said. While the 48-unit Main Street development has been approved, the zoning board is still conducting hearings on the 42-unit Meetinghouse Road project, which has faced significant opposition from neighbors. Dykens urged residents to stop fighting against what he said was much-needed housing.

 “This is going to happen. It’s a good thing for the community,” he said.

The annual May 11 annual town meeting will be a referendum on both projects, Toenniessen said.

 “Those who feel strongly one way or another on this will have an opportunity to express their opinion at town meeting,” he said.

The select board also voted unanimously not to support $200,000 in CPA funds to restore one of three lattice towers on the town-owned Marconi property. Voters approved $284,000 in 2024 to restore the towers, but the funds barely covered work on one of the former radio antennas, said Toenniessen (work that is now getting underway). The additional funds would allow restoration of a second tower.

Select board members questioned the need to restore all of the towers. “I’d rather support people than towers,” Dykens said.

The board voted to support the remaining CPC articles, including $750,000 for the affordable housing trust earmarked for the Stepping Stones affordable housing development; $100,000 for a new homeless shelter in Hyannis; $20,000 for the Lower Cape Housing Institute; $25,000 for restoration of Kate Gould Park; $125,000 for the Mill Pond overlook accessible trail; $100,000 for restoration at Frost Fish Creek (see story, page 15); $17,000 for new beach signs; $100,399 to restore 741 monuments and gravestones at People’s Cemetery; $100,000 for exterior renovation of the harbormaster office building; and $98,860 for restoration of the Mack Monument.