SOUTH HADLEY — Residents implored the Municipal Light Board on Wednesday to rethink building a $37 million headquarters for the South Hadley Electric Light Company while the town navigates financial challenges.
“I don’t think anybody’s against the deed. We’re probably against the timing. Timing was 10 years ago,” said Jeffrey Labrecque, chief operating officer of the Village Commons.
At a public forum, the Municipal Light Board presented plans to build a 45,000-square-foot facility on Old Lyman Road next to Big Y shopping center. The building would cost ratepayers an additional 2.3 cents per kilowatt hour, or an average of $16.27 per month.
That charge would decline to an average of $13.14 per month after 10 years, then to $9.92 per month after another decade. Municipal Light Board Chair John Hine said any additional revenue from Fibersrping, SHELD’s fiber optic internet service, could further offset rates.
“As opposed to $130 per month for an average South Hadley resident, you’re now talking about $147,” Hine said. “SHELD is historically at some of the lowest rates in the state, and even an increase in rates will still keep us below the state average.”
SHELD’s current building in South Hadley Falls requires between $6.5 million and $8.5 million in renovations, Hine explains. Since SHELD has outgrown its current space, the organization leases a building on Ludlow Road for $72,000 a year. In addition, its location in an 100-year flood plain endangers the essential service.
“With climate change and this frequency of storms and violent weather that keeps increasing over time, it’s just a matter of time,” Hine said. “In fact, I think it was just last spring when we had some heavy downpours, the river was very high and we had water close to 5 to 10 feet from the building.”
The designs for the building are based off blueprints and a needs assessment completed 12 years ago. Plans for a SHELD headquarters on the other side of Old Lyman Road failed at Town Meeting in 2013. Residents had raised concern about an electric facility in a residential zone and SHELD’s lack of involvement in reviving the South Hadley Falls.
The building was estimated cost $12 million then. Now, the design has tripled in cost.
“This should go to a Town Meeting or a town election. It’s that big a deal,” Department of Public Works Director John Broderick said. “It’s $37 million for a building. That’s not operational cost. Out town budget is $58 million.”
Broderick and many other speakers at the forum acknowledged the efficient and effective work of SHELD, but opposed the timing of the proposal. Not only is South Hadley facing a predicted $4 million structural deficit for fiscal year 2027, but Town Meeting members will vote on rezoning the Route 202/33 corridor in November. The new zoning would potentially bring in more commercial development.
“It appears that SHELD is looking to buy $750,000 of prime commercial real estate,” Labrecque said. “SHELD already owns three or four parcels, two with at least potentially for building on Old Lyman Road.”
Municipal Light Board member Ron Conutu agreed with Broderick and Labrecque. He thinks the price tag is too high and admits that relying on Fiberspring profits to offset costs is risky.
“If you look at who is the biggest internet service provider in the country 25 years ago, it was America Online. Where are they now? They just shut down,” Conutu said. “There’s no guarantee that the technology we’re using now is going to be used in 25 years.”
Hine, however, said the Municipal Light Board spent the last decade looking at every option. They bought several parcels in town, none of which meet the needs of the facility. They spent years working with the owner of the Mohawk building on 28 Gaylord St., but efforts lead nowhere. Next to Big Y, he said, is the best place for SHELD.
“It’s not a great time,” Hine said, “And we are committed to doing what we hope to do as least expensive as possible or with a minimal impact on rates as possible. We’re not sure what we can do in terms of cost, but we might be able to do things in terms of the impact on the rates.”
Though its still months away, SHELD’s next steps would involve securing funding for the project and getting permits from the Planning Board.