A Vision for One Cottage Street and Riverside’s Strategic Trajectory

Exciting changes are in store for Riverside and One Cottage Street. Some of these changes have already been reported in the local media, but you deserve to hear of this news directly from us!

Our staff and volunteer leadership team are currently in the implementation phase of a Strategic Framework, paving the way for transformative changes ahead. This strategic planning focuses on growth in three initiative areas: Riverside’s People, Programs, and Place. We have also used this process to further refine Riverside's mission; Empowering people with intellectual and developmental disabilities to maximize their opportunities for acceptance, independence, personal growth, and employment throughout their lives. Additionally, and with input from our staff and external stakeholders, we now have updated organizational values that will guide our work; Respect, Advocacy, Community, Compassion, and Inclusivity.

One of the first actionable strategic initiatives involves our place - an intentional shift in our relationship with the building we own at One Cottage Street in downtown Easthampton. This property came into our possession through an individual act of philanthropy. The complex of mill buildings was gifted from J.P Stevens in the early 1970’s with the intent of becoming a permanent home for Riverside's operations and an asset for the nonprofit.

As a result of the most recent and months-long strategic planning process, we announced a planned rental rate increase at One Cottage Street. That message was delivered to the affected tenants in April of this year. Over 100 tenants in the building (many of whom are artists) currently pay rental rates ranging from $4.88/sqft - $15/sqft. Our proposed rental rate increase is meant to equalize rental rates at $15/sqft for all tenants regardless of their space or tenure in the building. This equalized rental rate is designed to generate enough rental income to sustain the building’s operations and reduce Riverside’s growing financial burden to operate the facility. We have also contracted with a well-respected property management group, NAI Plotkin, to professionally manage the property and further reduce the burden on our staff. This will allow members of our staff team to refocus on other strategic initiatives and Riverside's core mission.

Simply put, Riverside is changing its relationship to One Cottage Street so it can be fully realized as an asset, making the facility more sustainable, and reducing Riverside’s financial burden to operate and maintain the space.

Acknowledging the Impact of Riverside’s Decision.

Several of the longer-tenured tenants at One Cottage Street will be impacted by this decision, making it an incredibly difficult one to make. Many tenants have begun a very public campaign to solicit support for affordable artist workspaces. Their campaign seems aimed at pressuring members of our staff and volunteer leadership into changing or completely reversing the decision to equalize rental rates. Similar campaigns have been launched by One Cottage Street tenants in the past and in direct response to previous rental rate increases. However, this more recent campaign is unfortunately unfolding in the local media and through a direct email campaign targeting Riverside’s business partners, donors, board members, and elected officials across the state. Whether intentional or not, these actions threaten our ability to conduct business and ultimately put our programs at risk. We respect the tenants in our building and have a long history of financially supporting their work. As hard as it may be, we stand by our decision. We have an obligation to our donors, volunteers, staff, program participants, and their caregivers to be good stewards of the valuable resources that are given to us.

For nearly half a century, One Cottage Street has symbolized community spirit and innovation through the coexistence of Riverside’s vibrant program participants, staff, and tenants. Our commitment to preserving the historic One Cottage Street building, while ensuring Riverside's own organizational viability, has never been stronger. For many years, Riverside has consistently shouldered much of the financial burden to operate the property. For 50 years, Riverside has kept rental rates low even in the face of certain financial loss. During the COVID pandemic, Riverside offered a 15% discount on rental rates in an effort to reduce expenses for tenants during extremely challenging times. During that same period, Riverside ceased its own operations and reduced its own staff numbers due to the financial impacts of the global pandemic. While we honor the long-standing relationships that have existed between Riverside and the tenants at One Cottage Street, we simply cannot continue the tradition of subsidizing rental rates.

Re-investing in One Cottage Street and Riverside.

The historically below-market rental rates for tenants at One Cottage Street cannot keep pace with the rising cost for Riverside to operate the building. Today, Riverside receives roughly $740,000 in yearly rental income while the full cost to operate the building is nearly $1.1 million annually. That operational cost is steadily increasing. Due to this growing imbalance, we are unable to invest in our own program growth, employee recruitment or retention efforts, or the building. Following a comprehensive analysis, it became clear that some rental rates at One Cottage Street simply do not even cover the full cost to maintain the space. Financially supporting the tenant community at One Cottage Street with subsidized below-market rental rates is outside the scope of Riverside's mission and an unfair proposition for the community we serve.

Riverside has already invested $3.5 million over the past couple of years in ongoing maintenance and renovation projects at One Cottage Street. We anticipate additional investments ranging in cost from $5 million to $10 million over the next decade. Recently, Riverside has made several long-term cost-saving investments such as the installation of a solar array which will reduce Riverside’s net energy cost by 18%. Additional projects to begin this summer include the installation of a new energy-efficient boiler operation system and gutters. Riverside is currently funding the phased installation of a new fire suppression system and fire doors throughout the building.

Much of the building’s financial shortfall is in its ongoing operations. This is due to growing inflation and historically low or stagnant rental rates. This shortfall has resulted in Riverside absorbing the full cost to maintain the property. Below are examples of those rising operating expenses and other services provided for free:

• maintenance and janitorial services
• moving services
• property taxes
• free wifi
• trash and recycling
• snow removal and landscaping
• tenant-requested electrical services
• installation of window and wall coverings
• installation and storage of individual tenants’ air-conditioning units
• compressed air
• additional storage space

With One Cottage Street on a solid financial foundation, Riverside will be poised to usher in a new era of growth and opportunity that will ensure the 175-year-old building is safe, sustainable, and a hub of activity in downtown Easthampton. With this over-arching goal in mind, Riverside pledges to:

• Elevate One Cottage Street into a cornerstone of its mission, amplifying its impact on program participants and the wider community. The goal is to better utilize the building to enhance Riverside's program delivery, better address the evolving needs of Riverside’s program participants, and ensure they receive the highest quality of care and support. The building and mission-oriented program spaces should be places that Riverside staff and clients can be proud to enter each day.
• Cultivate an environment within the building that nurtures and empowers Riverside's dedicated staff, positioning the organization as an employer of choice and a beacon of excellence in the health and human services industry. This work has already begun and is supported through private and state funding aimed at employee recruitment, retention, and training.
• Increase visibility and accessibility of Riverside, One Cottage Street, and the vibrant community of tenants within the space. Riverside intends to publicly highlight the vibrant ecosystem within the building and create new and innovative ways for collaboration among One Cottage Street tenants and Riverside program participants.

Finding a Path Forward, Together.

Riverside’s board and staff leaders are in relentless pursuit of our stated mission. We are on a transformative journey to ensure Riverside can deliver on its mission far into the future. As with any major change, it does not occur without some pain. We believe these strategic decisions are in alignment with Riverside’s mission and in the best interests of our clients, staff, and caregivers.

We respect the Easthampton City Council’s resolution passed on June 25 stating their support of affordable artist workspaces. With their collective support of the artisan community in Easthampton and with the city’s staff and resources behind them, we welcome the opportunity for an open dialogue. Just recently, and at the request of the Easthampton City Council, Melissa Pike (Riverside's Board President), and members of the Easthampton City Council (Councilors Denham and Gomez) recently met with Ellen Koteen, a representative from the newly formed Cottage Street Studios Artist Tenant Association and a 18-year One Cottage Street tenant. They heard concerns around studio affordability and discussed Riverside's decision to equalize rental rates in detail.

We now welcome other stakeholders including city officials, local and state-wide arts-oriented organizations, Riverside's property management partner, funders, and art patrons to also take up the issue of supporting affordable artist workspaces. We look forward to seeing new partnerships forged which may result in additional financial resources for artists in Easthampton.

We are on a mission to change the world, and we are starting with Riverside. We invite you to join us.

Thank you for believing in Riverside!