Released October 14, 2025
The City of Salem MA (“Salem” or the “City”) has proposed creating zoning overlay districts in accordance with MGL (Massachusetts General Law) Chapter 40, Section R (“40R”). Called the “Smart Growth Zoning and Housing Production Act,” Chapter 40R creates incentives through cash payments for municipalities to zone for mixed income multifamily development. A 40R or “Smart Growth” district overlay creates an “as of right” permitting framework for the desired development. Meaning developments permitted under it would then be allowed so long as they comply with the set standards.
Using this 40R zoning, the City has already put in place a 40R overlay for the former Salem State University South Campus for a 475-unit residential project named Forest River Residences. Previous historic preservation agreements with the Department of Capital Management and Maintenance (DCAMM) will provide protections for historic structures on that site during the development process. Additional 40R zoning for an overlay at Margin, Endicott and High Streets is now under consideration with the potential to be put in place by the end of calendar 2025.
Each of the 40R overlays is paired with a development partner (“Developer”). In the case of the potential third 40R at Shetland Park, the Developer is the Prime Group. As we have learned from the Imagine Salem website, collaboration with a developer does not mean that the approved zoning overlay cannot be utilized by a different developer in the future. In other words, any presentations, commitments, or adjustments agreed upon by a specific developer (in this case, the Prime Group) during the public review process need not be honored as this Developer, or others, go through the limited (as-of-right) 120-day City review process unless those commitments are immortalized in the specific 40R zoning overlay approved by the City.
Historic Salem Inc. (“HSI”) has been carefully monitoring the zoning overlay process. Members of the Preservation Committee have attended presentations by the Developers for the first 40R overlays, commented on draft applications, and suggested edits to the zoning language.
The 40R proposal being advanced by the Prime Group and their team envisions 1,200 new units of nine-story high-rise rental housing and a new 13-story hotel with a reduced “replacement” of existing commercial space, and replacement of the Salem Academy Charter School within the new development portion of the project. The proposal calls for an increase of 1,591,000 sf comprised of new high-rise waterfront apartments.
Why does Historic Salem, Inc. care about what happens at Shetland Park, and the two other 40R developments?
We are our history. We are a very small city that has been targeted to create far more than our fair share of new rental housing. Our beautiful and precious historic resources, once lost, cannot be returned to us. Dense redevelopment can literally destroy the delicate balance between preservation and progress, thriving and declining. The proposal by Prime Group is a typical developer’s unoriginal scheme to create a closed high-end community that enjoys spectacular waterfront views and in-house amenities with little regard to impacts on the surrounding neighborhood and city.
For these reasons and many more, the final 40R zoning overlay for Shetland 40R must contain stronger and specific language to require historic building and neighborhood preservation, infrastructure support and reconstruction, transportation improvements, reasonable building heights, setbacks, open space, etc. Reduction of the residential building program should limit residential structures to no more than 6 stories, provide adequate parking and reduced traffic impacts while still meeting open space commitments, resilience and waterfront accessibility goals. The draft 40R Regulations for Shetland are currently being prepared by the Prime Group Team with legal lobbyist Goulston and Storrs, LLP, which most likely means that the 40R application will skew to benefit the developer, not our community.
This is what Salem is facing, and HSI needs your support to ask the city to work with the community to ensure the following:
- A robust and transparent public information and review process which is publicly advertised, widely accessible and which is led by the city and not by the Developer.
- Professional peer review by a qualified and impartial consultant of any submittals by the Developer and/or the city under the 40R zoning overlay provisions prior to requesting state review.
- Public vetting of said peer review and ample response time for citizens and neighbors to review materials and provide meaningful comment.
- Real information regarding cumulative infrastructure requirements and impacts, including transportation, water, sewer, public service and school impacts resulting from 1,200 new rental units at Shetland Park in the context of concurrent and future development. Compilation and tabulation of public comments and comment letters, with a specific public meeting devoted to review and respond to those comments.
- Evaluation of alternative-density build scenarios prior to submittal to the Commonwealth.
Historic Salem, Inc. looks forward to working with our community leaders and citizens to affect the best possible outcome for the largest development project proposed for Salem in our 400-year history.
