ATHOL — Asked what changes may be in the offing for the former Pequoig Hotel in downtown Athol, new owner Mark Carbone replied simply, “Really, nothing.”
Carbone told the Athol Daily News he has been in the affordable housing business for three decades, having once headed the affordable housing group for a large New York company that “was especially big into affordable housing.” He said he decided to venture out on his own about three years ago.
“I’ve been on my own since 2018,” he continued, “Recently, I’ve begun purchasing buildings on my own in the affordable space, and the Pequoig was very attractive. It’s in great shape. It was kept up well by the prior owner. I bought it as an investment, and I’ll put money into it and make repairs as needed. It’s old, but it’s in very good shape.
“I’ll do whatever is necessary to keep it going the way it is. The town has already approached me with a couple of different ideas — nothing specific at this point — but I’ll sit down and meet with them to go over how we can jointly help that area of downtown.”
Carbone confirmed a Worcester Business Journal report that he had paid $6 million for the Pequoig, which is located at 416 Main St. The building, constructed in 1895, is included in the National Register of Historic Places.
According the WBJ report, the building was purchased in 2014 by RealtyGenesis Corp. for $2.35 million, and was last assessed by the town at $2.7 million.
Carbone said he also owns several other properties along the East Coast.
“I’m actually in contract to buy two Section 8 properties in upstate New York — the Lake Placid area,” he said. “Before Pequoig, I closed on a 72-unit affordable project in St. Petersburg, Florida. I’m also involved in Virginia and I’m in contract to buy three Section 8 properties in Georgia.”
Athol Town Manager Shaun Suhoski said Carbone first approached the town about the Pequoig last fall.
“Basically, he came to town and requested a meet and greet,” he explained. “So, the principal assessor and I, and I had the building inspector, the fire inspector — kind of our housing task force — meet with him.
“So, we met with him and inquired as to what the plan was. Really, the town’s role, when the building was redeveloped all those years ago, there was what’s called a regulatory agreement signed because there were subsidies that went into the building. This was almost 40 years ago.”
Suhoski then gave a little history on the effort to save the building.
“Our former town counsel, Mark Goldstein — now a district court judge in Worcester — at the time, I believe, was either town planner or community development director in Athol. So, he worked with the powers that be back then — in 1980, ’81, ’82 — and they were able to save the Peqouig. They got it renovated.
“And there was a 40-year affordability provision put on the property, and that takes the form of the regulatory agreement. It’s an agreement signed by the property owner and the host community. The monitor of that is the state.”
Suhoski said when ownership was transferred, the regulatory agreement stayed with the property and noted there are still a couple of years left on that agreement.
“So, that’s transferred to the new owner and they have to abide by that for the duration of the agreement,” he said. “That affordability has to be maintained for the duration of those 40 years.”
He also said a special tax treatment has been placed on the building.
“The real estate tax that is calculated goes to the state, and the town does get a real estate tax but it’s a discounted amount.”
Suhoski said he and his team explained to Carbone that the town was in the planning stage of redeveloping downtown.
“It’s our understanding that (Carbone) is looking to retain and hold this property and, in fact, may look at going to assess the need for any renovations,” he said. “And if there were any subsidized types of renovation, that would extend the affordability agreement.
“So, to our knowledge, nothing is going to change.”