The post-pandemic plans for the next build-out of the giant Tuscan Village development in Salem continue to change. 

Earlier this summer, developer Joe Faro proposed construction of an additional 600 housing units at the site of the former Rockingham Park Race Track in Salem, as a way to offset a cutback in the amount of office space he initially envisioned at what’s now called Tuscan Village. 

Faro, via his Tuscan Brand company, had hoped to build about 1 million square feet of office space at the mixed-use Tuscan Village, but the rise of remote working during the COVID-19 pandemic dramatically reduced demand across the region and nation. 

But Faro’s proposed additional housing units met with opposition from residents, forcing him to cut his request to 300 new units following a July meeting of the local planning board. The revamped proposal would eliminate one of the extra buildings at the development’s pedestrian heart that Faro had hope to build for more housing. 

In addition, Tuscan has effectively dropped its tentative plan to add life-science facilities at the site, amid a major decline in demand for biotech-related space in the Greater Boston region, that had originally been slated to replace the office space first permitted for the 170-acre Tuscan Village. 

Town to Decide in Autumn 

Joe Devine, assistant town manager in Salem, said construction so far – with nearly 50 percent of the overall mix-used development now built – has been an overall plus for his community of 30,000 residents, providing new jobs and housing while bolstering the town’s long-term tax base. 

But he acknowledged the project has needed adjustments as a result of changing market conditions, driven mainly by pandemic-driven upheavals, such as the decline in demand for office space and the rapid surge and equally sudden collapse of demand for biotech space. 

“There has to be some ebb and flow to this,” he said. “Office space isn’t renting as well today. It’s tough to hold [the developer] to the original plan.” 

Devine said the town is currently reviewing the latest proposals for Tuscan Village and expects a final decision this autumn. The Salem Planning Board gave initial approval to a master plan change to add the 300 apartments, but still must also grant the proposed building site plan approval as well.

He noted that one of the things town officials will be closely eyeing is how many affordable “workforce housing” units are among the 300 additional housing units requested by Faro. 

If town officials approve Faro’s request for an additional 300 housing units, Tuscan Village could end up with about 1,200 apartments and condominiums. 

Faro, a food-product and restaurant entrepreneur as well as a real estate developer, could not be reached for comment. 

Build-Out Successful to Date 

Michael Powers, senior vice president of leasing and development at Tuscan Brands, told The Registry Review that there’s currently heavy demand for the 537 apartments already built at Tuscan Village – and that all of the site’s new 85 townhouses have been snapped up. 

“They sold very quickly,” he said. 

Next up: the completion this year of 240 apartments currently being built by the Texas-based Hanover Co. 

Also coming this fall to Tuscan Village: The 165-room Artisan Hotel, via Marriot, along with 12,000 square feet of banquet and event space. 

As for future retail and restaurants at the site, Faro has told town officials that Whole Foods is willing to open a store within Tuscan Village, assuming the additional 300 housing units are built. 

According to local media reports, Capital Grille, Friendly Toast, and Tavern on the Square are expected to open soon at Tuscan Village, which already plays host to Chick-fil-A, LL Bean and Pottery Barn, among other national tenants. 

“We’re doing very, very well signing up new tenants,” said Powers. “We’re doing quite well.” 

As far as making Tuscan Village a true “live, work, play” neighborhood, MGH Brigham last year opened a new 75,000-square-foot “integrated care center” at Tuscan Village, providing both primary care and specialty treatment for patients in southern New Hampshire and the Merrimack Valley. 

Town Eyes More ‘Mitigation’ 

Meanwhile, about 85 percent of Tuscan Village’s other 80,000 square feet of office space, much of it located in floors above ground-level retail outlets, has been rented out, Powers said.  

But there just isn’t strong enough demand to justify building more office space at this time, he said.  

As for possible life-science uses at Tuscan Village, Powers said the “demand has changed over the past 18 months” for such facilities.  

While not completely ruling out life science tenants in the future, Powers said “we don’t have anything in the pipeline” related to the industry. 

What else is Tuscan looking at to fill the office-space void? Powers didn’t give specifics, but he said developers are mulling additional medical and even higher education uses at the sprawling site. 

He expressed confidence an agreement can be reached with the town of Salem for what will ultimately be included in the next phases of the Tuscan Village build-out.  

“The town has been very collaborative,” he said.  

Devine, Salem’s assistant town manager, also appeared confident that final details will be worked out.  

But he said talks aren’t just about what type of buildings and tenants will end up in Tuscan Village.  

It’s also about “mitigation costs” associated with the ongoing massive redevelopment project, such police and fire coverage to facilities that are already up and running at Tuscan Village. 

He noted that Faro has already pledged $3 million to pay for public safety needs until Tuscan Village is fully developed – and paying the full amount of property taxes originally envisioned at the start of the project four years ago. 

The town of Salem has also hired a consulting firm to study exactly how much extra mitigation funds Salem may need moving forward, he added.