Mayor & City Council

City of Rochester City Council Workshop March 17, 2026 CITY COUNCIL WORKSHOP Tuesday, March 17, 2026 Council Chambers 6:00 PM Members Present Others Present Councilor Creteau Katie Ambrose, City Manager Councilor Fitzpatrick Mark Sullivan, Finance Director Councilor Gianotti Terence O’Rourke, City Attorney Councilor Horne Michael Scala, Director of Economic Councilor Larochelle Development Councilor Rice Sasha Weinreich, Chief Executive Officer Councilor Richardson at Cyrus Holding Corporation Councilor Sullivan Joe Pelich, President and Director Councilor Thompson at Cyrus Holding Corporation Deputy Mayor Walker Christopher Berry, President of Mayor Grassie Berry Surveying and Engineering Carol Petrusewicz, resident Members Excused/Absent Ray Turner, resident Councilor Fontneau Errol Baun, resident Councilor Hamann Tom Kaczynski, resident Stacey Baun, resident Christopher Rice, resident Corinne Turner, resident human, resident Minutes 1. Call to Order Mayor Grassie called the Workshop to order at 6:00 PM. 2. Pledge of Allegiance Mayor Grassie asked Councilor Walker to lead those present in the Pledge of Allegiance. 3. Opening Prayer Mayor Grassie asked those present to observe a moment of silence. 1 City of Rochester City Council Workshop March 17, 2026 4. Roll Call Austin S. Leavitt, Deputy City Clerk, took the roll call attendance. Councilors Fontneau and Hamann were excused. All other members were present. 5. Public Input Carol Petrusewicz, resident, discussed the School budget. Ray Turner, resident, thanked the Council for the opportunity to participate in the Council’s goal-setting session on February 20. Mr. Turner pointed to section B.1.b of the Code of Ethics and Conduct for Elected and Appointed Officials (“Practice civility and decorum in discussions and debate”), and asked the Council to consider whether it had followed these guidelines in its goal-setting discussions. 6. Communications from the City Manager Katie Ambrose, City Manager, read seven items of online public input with the following subjects: • “Crosswalks on Main Streer (sic)” from Jenni Palkovic • “Public Works” from Mr. & Mrs. Harrington • “City Officials” from Mr. & Mrs. Harrington • “Why are you trying to add more problems” from Jason Elliott • “Keep Music Education in Our Schools – Rochester students thrive in the arts” from Courtney Pedersen • “Stepping Up to Defend Music Education in Rochester” from Sara Cantrell • “Homeless people coming through my community” from Justin Provost City Manager Ambrose noted that the City hosted the New Hampshire Interscholastic Athletic Association (NHIAA) at the James W. Foley Community Center gymnasium for its Division 1 and Division 2 boys’ basketball semifinal games. She thanked the Recreation & Arena staff as well as the City’s first responders for supporting the event. City Manager Ambrose thanked the Recreation & Arena staff, Deputy Chief Administrative Officer Kim Conley, and the Wellness Committee, for 2 City of Rochester City Council Workshop March 17, 2026 organizing an employee wellness event at the Rochester Ice Arena. She additionally thanked the Wildlife Encounters Ecology and Wellness Center for bringing its animals to the wellness event. City Manager Ambrose briefly discussed the ongoing work on the School budget and expressed her willingness to collaborate with the School Department on analyses and solutions to budget shortfalls. 7. Communications from the Mayor Mayor Grassie noted that the Music Drives Us organization had made a donation of musical instruments to the Rochester Performance and Arts Center (RPAC). He also noted a recent meeting with the advisory board for the Richard W. Creteau Regional Technology Center. The Mayor highlighted these as opportunities to keep informed of educational programs within the City. Mayor Grassie congratulated the Spaulding Highschool boys’ hockey team for winning the Division 2 state championship for the first time in 19 years. 7.1 Legislative Update Mayor Grassie asked Councilor Walker for any updates on current legislation in the state legislature. Councilor Walker briefly discussed some bills under consideration at the most recent meeting of the legislature, but there were no specific items to bring to the Council’s attention at this time. Mayor Grassie noted that on April 8 the New Hampshire Fiscal Policy Institute will be at the James W. Foley Community Center to provide a presentation on the relationship between state funding and local communities. Councilor Rice requested additional time to review future legislative updates and raised objections to the Council taking a stance on state legislation at all. Mayor Grassie explained that these agenda items usually come to his and the City Manager’s attention through the New Hampshire Municipal Association, which offers a stance on current legislation that it considers especially relevant to municipalities, but that there is often very limited time for the Council to review these items before they are voted on at the state legislature. Councilor Sullivan additionally explained that, in 2025, 3 City of Rochester City Council Workshop March 17, 2026 the state legislature had actively considered many bills which, in his view, removed local authority from municipalities; at that time, the Council was not positioned to react to legislation that could have a direct impact on the City, and individual Councilors could not advocate on behalf of the City without the Council having taken an official stance on such legislation. Councilor Rice suggested that bills in the state legislature were exclusively the concern of state representatives. Councilor Fitzpatrick responded that it is reasonable for towns and cities to wish to have their perspectives heard on state law that will directly affect them and their residents. Mayor Grassie added that it is important to communicate to state representatives who ostensibly represent the City how their votes will impact the City. 8. Discussion Items 8.1 Presentation: RFP 26-07 for Downtown Redevelopment (161 South Main Street) Michael Scala, Director of Economic Development, introduced two groups who had submitted proposals for this project to provide presentations on their respective proposals. Sasha Weinreich, Chief Executive Officer at Cyrus Holding Corporation, gave an overview of the company and their experience. Ms. Weinreich discussed their proposal for this project (see the agenda packet for details), highlighting the company’s flexibility on adjusting to the needs of the City and how they believe the proposal aligns with the City’s stated values and goals. Councilor Rice inquired about the height of Cyrus’ proposed structure. Ms. Weinreich answered that the height would be determined by the maximum allowed under current zoning requirements. Councilor Sullivan inquired about adding on-street parking at the location. Joe Pelich, President and Director at Cyrus Holding Corporation, answered that traffic patterns along the location make on-street parking complicated, but that they are interested in working with the City to develop a plan to add on-street parking spaces. Councilor Creteau inquired how many commercial businesses would be located within Cyrus’ proposed structure. Mr. Pelich answered that there would 4 City of Rochester City Council Workshop March 17, 2026 be commercial spaces for two businesses to operate on the first floor of the proposed structure. Additionally, a second, smaller structure on the property has been planned to serve as either additional housing units or a third commercial space, depending on the interests of the City. Councilor Rice inquired about expanding parking at the location with the construction of an underground parking structure. Mr. Pelich answered that a construction project of that scale would not be economically feasible. Michael Scala, Director of Economic Development, introduced the second of the two groups to provide a presentation on their proposal. Christopher Berry, President of Berry Surveying and Engineering, presented on behalf of Knox Marsh Development and StoneArch Development. Mr. Berry discussed their proposal for this project (see the agenda packet for details), highlighting their intent to incorporate mixed-used structures into the local community and extend the downtown area. Councilor Sullivan inquired about the total number of housing units in Knox/StoneArch’s proposed structures. Mr. Berry answered that the current plan includes 84 units, 24 of which would be income-restricted under U.S. Department of Housing and Urban Development (HUD) criteria, with the potential to add an additional 12 HUD-restricted units. Councilor Rice inquired about adding on-street parking to the location. Mr. Berry answered that the Knox/StoneArch site plan would include around 10 parallel parking spaces along South Main Street. Councilor Rice inquired about the commercial component of Knox/StoneArch’s proposed structures. Mr. Berry outlined approximately 9,000 sq ft of commercial space spread across the first floors of two of the proposed structures, with the potential to expand the total to approximately 14,000 sq ft by including commercial space in a third structure. Councilor Rice inquired about the total number of parking spaces in Knox/StoneArch’s proposed site plan. Mr. Berry outlined approximately 160 parking spaces, with a target of at least 1.5 parking spaces per resident unit plus additional spaces for commercial patrons. He added that the final design may include up to 20 additional parking spaces open for community use, such 5 City of Rochester City Council Workshop March 17, 2026 as parking to access the Rochester Common, in addition to the 10 on-street parking spaces. Councilor Thompson inquired how many parking spaces in Knox/StoneArch’s proposed site plan were set aside for commercial parking. Mr. Berry answered that current zoning did not require dedicated commercial parking at the location, and that the final site plan would determine how many parking spaces to make available for commercial patrons based on projected need. Mayor Grassie opened the floor for public input on the two proposals. Carol Petrusewicz, resident, expressed concerns about the cost of rent and the availability of parking spaces for the proposed residential units. Errol Baun, resident, expressed concerns about increased traffic in the area and the impact of the proposed structures on adjacent residential properties. Tom Kaczynski, resident, expressed concerns about the financial details of the project. Councilor Sullivan inquired whether Mr. Kaczynski would prioritize a return on the City’s investment as the most important factor in deciding between proposals. Mr. Kaczynski indicated that he favored as little initial investment or subsidization as possible on the City’s part. Stacey Baun, resident, expressed concerns about increased traffic in the area. Mayor Grassie clarified that, once a proposal is approved, the party behind the proposal will be required to meet with the Planning Board to carry out traffic studies and discussions on traffic management strategy. Christopher Rice, resident, shared his opinions on the proposals. Mr. Rice additionally expressed confusion about the idea of eating ice cream indoors. Ray Turner, resident, inquired to what extent the City would be expected to underwrite either proposal. When Mr. Turner later clarified that he was hoping to have an answer from the respective parties at this meeting, Mayor Grassie clarified that negotiations on the project had not yet reached the stage where they could discuss those specific financial details. 6 City of Rochester City Council Workshop March 17, 2026 Corinne Turner, resident, expressed concerns about the aesthetic impact of the proposed structures as well as the impact on traffic and parking in the area. human, resident, requested to see more detailed information on the budgets for the proposals. Mayor Grassie invited the presenters to come forward again and respond to the public comments. Mr. Berry highlighted that Knox Marsh Development and StoneArch Development were specifically not requesting tax relief for their proposal under RSA 79-E, but that they could not yet discuss additional financial details. Mr. Berry briefly discussed the difference between subsidized housing and their proposed units with HUD-restricted pricing. He brought attention to the proposal’s focus on structures with a 3-4 story profile, comparable in height to other large buildings in the area. Additionally, he highlighted the intention to drive downtown commercial traffic through mixed-used development, and noted the developers’ historically low vacancy rate for the commercial spaces in other properties due to their flexibility in working with prospective businesses to fill those spaces. Councilor Rice inquired about a specific, older residential home that was currently located on the property. Mr. Berry answered that Knox/StoneArch currently had no plans for what to do with the specific structure. Councilor Rice inquired if the structure could be incorporated into the site plan. Mr. Berry answered that the structure would either be removed or demolished. Mr. Pelich discussed how the Cyrus Holding Corporation intended its design to minimize intrusiveness to the adjacent residential properties. He highlighted that there was flexibility in the scope of the proposal to adjust the height and base footprint of the structure to meet the interests of the City. He noted specifically that the company was not interested in pressuring adjacent residential property owners into making concessions, and would work with property owners either looking to sell their properties or implement dividers between the properties. Additionally, Mr. Pelich highlighted that the proposal included only a small number of commercial spaces to minimize vacancies, and included flexibility spaces that may be utilized to house on-site amenities or additional commercial spaces as needed. 7 City of Rochester City Council Workshop March 17, 2026 Councilor Rice inquired about a specific, older residential home that was currently located on the property. Mr. Pelich answered that he would be willing to work with the City on having the structure moved to a new location. Mr. Pelich emphasized that Cyrus’ proposed structure was not intended to feel like an urban development, and that the site plan included, for example, significant green space to break up or mask parking spaces. Mayor Grassie inquired about potential “micro units” indicated in their presentation. Mr. Pelich answered that Cyrus’ proposal included an option to expand the total number of residential units by including micro units, which would have a comparatively reduced size and reduced scope of in-unit amenities and thus a reduced cost to rent, making up for the reduced quality of the individual units with access to amenities on-site or in the local community. Councilor Rice inquired about coworking spaces in the proposed structure. Mr. Pelich answered that coworking spaces were included in Cyrus’ design and would be available to residents. Councilor Gianotti inquired about the project timeframe. Mr. Pelich answered that Cyrus’ target timeframe would be no greater than 24 months, and noted similar projects that had been completed in less than that time due to the company’s capacity to handle all stages of development in-house. 8.2 Discussion: Municipal Governance Training Councilor Rice made a request to have training organized and provided to councilors on matters relevant to the Council’s role and responsibilities, citing, for example, training on RSA 91-A and “right-to-know” requests. Councilor Rice went on to raise additional topics not included on the agenda. Councilor Rice discussed right-to-know requests she had initiated with the City and sought clarity on the distinction between her access to information in her capacity as a councilor and that of members of the public under RSA 91-A. 8 City of Rochester City Council Workshop March 17, 2026 Councilor Rice request clarification on how the City handles ongoing litigation, specifically referencing a court case involving the School Department. Councilor Rice requested to see official minutes of the Council’s goal- setting session on February 20. Councilor Rice inquired about a memo from the City Manager regarding the City’s artificial intelligence (AI) use policy, and requested further details on the origin and authority of that policy. Mayor Grassie requested that Councilor Rice submit a memo outlining her questions so that he could work with the City Manager to provide specific answers. 9. Department Reports Councilor Rice explained that, after reviewing the reports of the Finance Department, the Tax Collector’s Office, and the Police Department, she had concerns about the state of the current fiscal year budget. Councilor Rice requested clarification on Police and Fire Department overtime rates. She noted a list of additional questions regarding City finances she was seeking answers to. Mayor Grassie requested that Councilor Rice submit her questions so that he could work with the City Manager to provide specific answers. 10. Public Input Carol Petrusewicz, resident, asked for clarification on the selling price of the property at 161 South Main Street for which the City was presently considering proposals. Mayor Grassie answered that, once the City was ready to move forward with a proposal, a development agreement would be created in which the City would outline expectations or requirements for the use of the property, and that the terms of the development agreement could affect the final sale price of the property. Ms. Petrusewicz asked to clarify that the chosen developer would be purchasing the property outright, not co-owning the property with the City. Mayor Grassie confirmed that the property would 9 City of Rochester City Council Workshop March 17, 2026 be sold in its entirety, but that if the City demanded the developer incur additional costs as part of the development agreement, that may reduce the final price of the property itself. Councilor Sullivan added that the City would need to weigh the initial price against the potential return from taxes related to the property. Tom Kaczynski, resident, reiterated his concerns about the development at 161 South Main Street. human, resident, expressed opposition to the City Council taking a position on state legislation during its legislative updates. Councilor Walker responded that it was vital for him, in his capacity as a state representative, to be able to hear and understand the interests of his constituents, one of which is the City of Rochester. Councilor Rice thanked retiring Fire Chief Mike George for his service. 11. Non-Meeting / Non-Public Session 11.1 Non-Meeting (Consultation with Legal), RSA 91-A:2 I(b) 12. Adjournment Mayor Grassie ADJOURNED the Workshop at 8:06 PM and entered into a non-meeting. Respectfully submitted, Austin S. Leavitt Deputy City Clerk 10