City Hall Plan
On Wednesday, November 6, 2024, BankProv announced its intent to sell its historic main office building in downtown Amesbury, MA to the City of Amesbury. The building, located at 5 Market Street, is a significant landmark in Amesbury’s Market Square, with deep roots in the city’s history and architecture. BankProv’s nearly two centuries of dedication to the community is reflected in the fact that the oldest section of the building was constructed in 1856. Founded in 1828 as the ‘Provident Institution for Savings in the Towns of Salisbury and Amesbury’, the bank has long been an integral piece of the community fabric. This transaction will allow for BankProv to continue to operate at the location, and for the city to provide more effective services to the residents of Amesbury.
Current BankProv building located at 5 Market St.
Note: The new City Hall address will be One Market Square
Current City Hall located at 62 Friend Street.
FAQ's
THE FINANCES
The City and BankProv have agreed to a purchase price of $3,000,000 for the property. Based on preliminary terms of the agreement with BankProv, the lease agreement is expected to generate up to $1.6m over a 10-year term. Notably, the annual lease payment from BankProv to the city will be used to service the debt on a bond authorization for a portion of the purchase price of the property. Factoring in the principal and interest for a municipal bond, the expected lease agreement is estimated to contribute enough annual revenue to the city from BankProv to support the debt service on a bond of approximately $1.25m. The $1.25m would be applied towards the total acquisition price of $3m. Thus, the City’s total out-of-pocket contribution toward the acquisition of the property is expected to be approximately $1.75m.
The appropriation of city funds for the purchase requires a vote of the City Council. A council order was filed on Wednesday, November 6, 2024, requesting approval to expend funds for a purchase price of three (3) million dollars with an additional 5% for incidentals and other related costs. Pending approval from City Council, the city will seek partial financing for the purchase, with the remainder coming from certified free cash. Based on preliminary terms of the agreement with BankProv, the lease agreement is expected to generate approximately $1.6m over a 10-year term. The annual lease payment from BankProv to the city will be used to service the debt of a 10-year bond authorization for a portion of the purchase price of the property.
So called “free cash” is generated when the actual operating budget compares favorably to the projected budget appropriation. Specifically, free cash results when the actual revenue collection is greater than the budget estimates and when expenditures and encumbrances are less than budget estimates, or both. Free cash can also result from new growth for new capital improvements to private property from renovations, expansions, or new development. Once certified by the Director of Accounts at the State Division of Local Services, free cash funds are unrestricted and available for appropriation. According to the State Technical Assistance Bureau, a community should strive to generate free cash in the amount of five to ten percent per year. As a nonrecurring revenue source, free cash should be restricted to paying one-time expenditures, funding capital projects, or replenishing other reserves. Amesbury’s free cash increased from a low of $267,788 (or less than 1% of Amesbury’s operating budget) to $1,978,854 (or 3%) in 2022, to $4,695,302 in 2023 (7%). It is anticipated that the certified free cash for 2024 will be in excess of $5m (or 7% of the FY25 operating budget).
As part of the purchase agreement, BankProv will design and construct the walls required to separate and provide security between their lease area and City Hall. This work will be completed prior to closing to ensure BankProv is able to continue operations within their leased space, uninterrupted by City Hall business. In 2007, BankProv renovated the building as office space, so limited improvements are required prior to occupancy. Additionally, the purchase agreement includes BankProv donating a wide array of office furnishings to the city. Thus, except for the IT infrastructure needed to separate and secure the City Hall network within the building and the reinstallation of an accessible lift, the cost associated with the relocation is expected to be nominal.
The current assessed value of the property at 5 Market Street is $3,331,300.
At the FY24 tax rate of $15.64/$1,000, the annual tax revenue from the property at 5 Market Street was $52,102.
As part of a larger building and site assessment study of all the city buildings along Friend, School and Main Streets, the City is currently seeking to sell the vacant former Ordway School and the Orlando-Bailey House on School Street. Both properties are currently vacant and not on the tax rolls given they are owned by the city. If approved by the City Council, the net proceeds from the sale of these two buildings will be dedicated to funding some of the needed repairs to the Amesbury Public Library. Once redeveloped by a private party, these two properties are expected to have a combined assessed value exceeding $3m. Thus, the sale and redevelopment of these two historic properties will not only help revitalize School Street but will directly support the maintenance and long-needed repair of the Amesbury Public Library, and off-set or mitigate the loss of any tax revenue from the purchase of BankProv’s property at 5 Market Street
The debt service for financing of a portion of this purchase will be fully serviced using the annual lease revenue from BankProv. Utilizing $1.75m in free cash for the purchase of this property will allow the city to maintain free cash reserves of at least 5% for FY25 and not have a direct impact on the tax rate.
The school department announced a budget freeze after the first quarter of the fiscal year due to unbudgeted and unanticipated expenses including out of district tuition, excessive homeless transportation costs, special education transportation cost increases, and electricity overages. Once these unanticipated expenses and any potential savings are clearly identified, the School Committee will address the budget shortfall and determine whether to request additional funding from the City Council. The budget freeze has not impacted hiring and necessary spending for our classrooms.
THE PROCESS & AGREEMENT
The city answered a Request for Proposals (RFP) that was issued by BankProv back in June 2024. Over the summer, city staff performed several site visits with design professionals to evaluate the available space, utilities, and overall condition of the building. In August, the city submitted a proposal to BankProv. After several revisions to the proposal, in early November both parties agreed to the draft terms and executed a Letter of Intent. After several revisions to the proposal, in early November both parties agreed to the draft terms and executed a Letter of Intent. Amesbury City Council authorized the appropriation and borrowing required for the purchase at their December meeting. Due diligence and procurement requirements in accordance with M.G.L. c. 30B will continue.
A condition of BankProv’s RFP was a requirement for confidentiality during the Bank’s review, response, and negotiation process. The Mayor has authority to engage in these negotiations and sign agreements but needs a council vote to appropriate funds. Thus, the Mayor did work with City Council to hold two executive sessions pursuant to M.G.L. Chapter 30A §21(a)(6) for the purpose of considering the purchase, exchange, lease or value of real property. Once a LOI was executed with BankProv the Mayor filed the necessary council bill with the City Council to request appropriation and borrowing authority.
The Purchase and Sale agreement was contingent upon buyer compliance with M.G.L. c. 30B. The city performed inspections on the mechanical systems, electrical, plumbing, elevator, and roof systems. After the inspections, the successful filing of a uniqueness determination with the Central Registry as required by M.G.L. c. 30B and other due diligence on the acquisition, the closing date was June 30, 2025.
The general terms and conditions of the lease agreement for BankProv include BankProv leasing 4-5,000 SF of the building for a 10-year term with two (2) 5-year option periods for a total of up to 20 years. BankProv is providing a corporate guarantee for the initial 10-years and both parties have the option to mutually extend the lease for two, consecutive 5-year periods. Included in the lease agreement, BankProv is also retaining the use of the three drive thru lanes and reserving eight (8) of the 29 available parking spaces for BankProv employees. The lease rate will include a pro-rated share of the common use areas, utilities, and property taxes.
After acquiring the property, the city made some minor improvements and expects to occupy the building in late Fall of 2025.
THE BUILDING
Including accessible parking spaces, BankProv’s property has 29 off-street parking spaces. The existing City Hall parking lot has 39 spaces with four (4) dedicated to EV charging stations. This lot is used by City Hall staff and visitors. Additionally, many non-City Hall visitors and residents currently utilize the Friend Street lot for long-term parking. Except for a few key personnel, at the new location on Market Street, all City Hall employees will be required to park in the city’s Water Street Parking Lot. The Water Street Lot has significant capacity to support employee parking without impeding on existing commercial use of the lot. We anticipate the public having greater access to parking directly adjacent to our new building than they do now.
The new City Hall building has a large meeting room in the basement level. The meeting room has elevator access, adjacent bathrooms, and a full kitchen facility. The City Council, Planning Board, Zoning Board of Appeals, and other land use boards or committees would be able to hold public meetings in this space. When the lease period ends with BankProv, the City will likely relocate the Council Chambers in what is now the main lobby area on the first floor providing additional meeting space.
The total, or gross floor area of the existing City Hall is approximately 13,800 SF. Excluding the 3,000 SF auditorium, the city utilizes approximately 7,000 SF of first and second floor space in the existing City Hall. The 2,668 Sf of the basement level is unavailable due to high moisture and accessibility issues. Additionally, inefficiencies of the terraced floor plan result in over 25% of useable floor area being dedicated to common areas such as stairways, hallways and lobby areas. In contrast, the proposed City Hall space, excluding the 4,263 SF of usable meeting space, storage, and archival space in the basement level, the BankProv property provides the city with more than 9,000 SF of usable floor area (a 30% increase compared to the existing City Hall). Initially, some of this added space will support additional office space, conference rooms and the return of the eight employees in the Office of Community and Economic Development to City Hall. Later, when BankProv vacates the lease area, the net usable floor area will expand to approximately 14,000 SF (a 100% increase in floor area compared to the existing City Hall).
OTHER BUILDINGS & CONSIDERATIONS
In 2022, the School Committee and Mayor’s Office commissioned a study to evaluate the redevelopment potential for repurposing the AES for a community recreation center, central offices for the school department, and the innovation high school. Due to the current age and dilapidated condition of the building, it was determined that repurposing the AES would likely exceed $30m. The building would need a new roof, replacement of all windows and doors, the installation of insulation, new flooring (and likely remediation), a fire suppression system (sprinklers), installation of an elevator, and complete replacement of all mechanical systems. Although City Hall would be a different use than the school, these required updates would not change. Simply put, our preliminary assessment of the AES concluded that replacement of the building would be much more cost effective than renovation but would still result in a project well in excess of $15m to construct a new City Hall at this location. Moving forward, the school department and city leadership are working closely to transfer that property from the school department to the city and develop a plan for its future use. The plans will require City Council votes and will be presented publicly.
The current City Hall was built in 1890. Although it has undergone modifications over the years, it lacks accessibility with no elevator, does not have proper fire suppression, has an inadequate and inefficient climate control system, and has significant space limitations for City Hall services given its relatively small size, terraced floors, and overall condition. Based on preliminary estimates, the cost of renovating the current building for City Hall use would be well in excess of $15m. Just the need for meeting the ADA accessibility requirements would require an external, four-stop elevator, providing access to all four levels of the building as well as accessible bathrooms, hallways, and doorways. This work alone is estimated to cost more than $3m. In contrast, many of the other less intensive uses being considered for the building may not require elevator access or extensive renovations to all four levels of the building, thereby lowering the immediate renovation costs.
As part of a larger building and site assessment study of all the city-owned buildings along Friend, School, and Main Streets, the city is currently evaluating a long-term reuse of City Hall. However, given the level of effort to fully evaluate the cost and feasibility of any permanent reuse, the city is evaluating several interim uses for the building. Such uses include the Amesbury Innovative High School, the city’s recreational program, as well as potential non-profit uses such as artist and theater space, and a private, non-profit parochial school.
While City Hall was not the highest priority, the City is continuing to work to complete a Community Campus Feasibility Study and the Public Library is completing a Conditions Assessment and Facilites Master Plan. BankProv’s issuance of their RFP offered a unique opportunity to consider the benefits of relocation. At nearly twice the usable space as the existing City Hall, the BankProv property offers the city an opportunity to consolidate and improve city services, operate within an accessible and a fully code-compliant and accessible building, with bank vaults for secure archival storage, and room for future expansion when the bank eventually vacates the property. Importantly, having an estimated $1.6m lease agreement with BankProv enables the city to purchase the property for far less than the estimated cost of making accessibility improvements to the existing City Hall.
Future updates and information will be shared here as it becomes available.
Updates
December 6, 2025- 4:30pm to 6:30pm
Community Open House
To mark the occasion, the City of Amesbury and BankProv will host an Open House at One Market Square on Saturday, December 6, from 4:30 to 6:30 p.m., following the annual holiday parade and tree lighting. The community is warmly invited to explore the new City Hall and tour the space.
October 1, 2025
The following minor improvements and preparations for the move have taken place since the closing on June 30, 2025:
- Office space evaluation and reconfiguration
- Minor electrical work including occupancy sensor installation to reduce energy usage and utility cost
- Painted common areas
- Installation of handicap door handles
- Evaluation and reconfiguration of existing office furniture
- Directory signage has been designed and is in final approval stage prior to fabrication and installation
- Customer service counter fabrication (Treasurer's Office)
- Move management proposals have been accepted for evaluation
July 3, 2025
Recording of the transfer of property filed at the Southern Essex Registry of Deeds
June 30, 2025
Real estate closing.
December 10, 2024
2024-149 An Order authorizing the Mayor to acquire the land, building, and structures located at 5 Market Street, Amesbury, for the purpose of using the building for City Hall purposes, and the appropriation of $3,150,000 to fund such acquisition, including the payment of all costs incidental and related thereto. – Mayor Sponsor Summary: This order will authorize the Mayor to acquire the land, building, and structures referenced above for municipal purposes, including for use as the City Hall, and appropriate funds to pay costs of such acquisition, which appropriation would be met by a combination of borrowed funds and a transfer from free cash. Pursuant to G.L. c. 40, §14, the order must be passed by at least a two-thirds vote of the entire membership of the City Council. Approved.
November 6, 2024
BankProv announced its intent to sell its historic main office building in downtown Amesbury, MA to the City of Amesbury.