Apr. 14—Manchester aldermen will hold a public hearing Tuesday on an application for the RSA 79-E tax credit program for a project involving property at 959 Elm St., also known as the Dunlap Building.

The hearing is scheduled for 5:30 p.m. in the aldermanic chambers at City Hall.

The tax credit program lets developers who improve blighted properties in downtown areas delay paying property taxes on the value of the improvements.

To qualify, the applicant must meet several requirements under the statute, including that the rehabilitation of the structure must cost at least 15% of the pre-rehabilitation assessed valuation, or at least $75,000.

North Street Properties LLC is asking aldermen to approve five years of tax relief under RSA 79-E for the property. North Street agreed to purchase 959 Elm St. with the contingency that tax relief be granted under 79-E.

North Street wants to change the use from a commercial property to a mixed-use property. Currently, 959 Elm St. is five floors of commercial space, but only the first floor is occupied. "Floors two to five are currently underutilized and unlikely to be rented as commercial space because of the decline in demand for office space," according to paperwork filed by North Street Properties.

The applicant plans to retain the existing commercial tenants and add an additional commercial tenant to occupy three commercial spaces on the first floor.

The remainder of the building will feature 36 apartments — 30 one-bedroom units and six studio apartments.

Based on the information provided, it does not appear the applicant is offering any affordable units.

"The applicant will update the existing building to meet the needs of residential tenants," the paperwork states. "This will include adding individual bathrooms, kitchens, and living spaces in each unit. The outside of the building will maintain its historic look but the inside will be updated to ensure the comfort of future residents looking to live in Manchester's downtown."

The building was constructed in 1879 for Thomas Dunlap on the site of one of Manchester's first large commercial buildings, dating to the early 19th century. It was designed by local architect and engineer George W. Stevens, and the fourth floor was originally occupied by the meeting hall of the International Order of Good Templars, a fraternal society.

The building's 1908 alterations were designed by locally prominent architect Chase R. Whitcher, introducing structural steel and styling derived from skyscrapers in major cities.