PITTSFIELD, Mass. — The City Council has approved a tax agreement to transform a historical downtown property into housing, and an effort to designate a local historical district in that area. 

Last week, the council OKed a tax increment exemption agreement for Allegrone Company's redevelopment of 24 North Street, the former Berkshire County Savings Bank, and 30-34 North Street into mixed-income housing. Councilors also approved a study committee to consider a Local Historical District in the downtown. 

The subcommittee on Community and Economic Development unanimously recommended the TIE earlier this month. 

The historic 24 North St. with a view of Park Square has been vacant for about two years, and Allegrone Companies plans to redevelop it and 30-34 North St. into 23 mixed-income units. The total estimated capital investment for both sets of apartments is $15.5 million. 

The 10-year tax increment exemption freezes the current value of the property, base value, and phases in the increased property taxes that result from the redevelopment. The increased property taxes will be phased in over 10 years, with 100 percent forgiveness of the incremental increase in residential property taxes in the first year, decreasing by 10 percent each subsequent year over the term.

Last month, Gov. Maura Healey visited the site and announced housing initiatives that are expected to bring more than 1,300 units online, including units in Pittsfield and at the historic site. 

Ward 1 Councilor Kenneth Warren pointed out that the TIE triggers Allegrone's ability to receive state tax incentives and grants, recalling that they could see as much as $3 million. 

"We have a vacant bank building that's completely empty and everything, and we're going to be able to put something in it, and part of this project does have commercial, but it's a lot of apartments too," he said. 

"So I mean, it's a lot of advantage to the city of Pittsfield." 

Ward 7 Councilor Katherine Moody said the $15 million invested in the downtown will pay dividends to the housing crisis, and in her five years of working at General Dynamics, she saw young engineers moving to the area struggle to find a place to rent or buy.  Moody had many questions about the proposal, as her constituents did, but felt they were answered.