Elizabeth Hannum, director of Economic Development, and Community Development Director Matthew Sullivan, speak about the city's upcoming real estate developments during the State of The City event on March 19. Telegraph photo by CHRISTOPHER ROBERSON

NASHUA – During his recent State of The City address, Mayor James Donchess reiterated his concerns about the torrent of proposed federal budget reductions and what they could mean for Nashua.

He said that in Nashua alone, there are 16,778 residents, many of whom are children, who rely on Medicaid. Donchess also said 82 percent of residents who receive addiction services are on Medicaid. The program is now at risk of being cut by $880 billion.

“We face the prospect of many people losing healthcare,” he said during the March 19 event. “We are watching what’s happening closely.”

He also set the record straight about how tariffs work.

“These are not paid for by someone else,” said Donchess.

Mayor James Donchess delivers his remarks during the State of The City event on March 19. Telegraph photo by CHRISTOPHER ROBERSON

He is currently working with the Division of Public Works on a cost estimate for a new DPW garage. That number is now expected to skyrocket as a result of the 25 percent tariff on steel and aluminum, which took effect on March 12.

“It’s going to add millions of dollars to that project,” he said.

Regarding affordable housing, Donchess said Nashua’s apartment vacancy rate remains at less than one percent.

“It’s been that way for a long time,” said Donchess, adding that the cost of single-family homes has doubled.

Therefore, constructing rental housing downtown will be a priority going forward.

“Downtown is the natural place,” he said, adding that downtown rental units would not disrupt the neighborhoods with single-family homes.

Additional residents living downtown would also help the local business community.

“We need more walk-in traffic,” said Donchess. “The downtown is the focal point of the city.”

Elizabeth Hannum, director of Economic Development, spoke about the city’s Economic Mobility Strategic Plan.

She said the top three needs of Nashua residents are workforce development, childcare and housing.

Regarding childcare, Hannum called attention to a possible incubator program, which would provide childcare while creating 40 jobs.

Hannum and her colleagues are also looking at opening a Financial Empowerment Center at the Nashua Public Library. She said the center would offer individualized financial counseling with the objective of preventing residents from being evicted. Hannum also said the center would create three job openings.

She said the results of the recent skills gap analysis showed that 70 percent of Nashuans work outside of the city. Therefore, there will be a push to attract more businesses that offer jobs matching residents’ skill sets.

Hannum also highlighted the Riverfront Expansion project, which is slated to be completed by the fall.

“We’ll have a view all the way down the (Nashua) River,” she said. “It’s going to bring a lot of people downtown.”

Community Development Director Matthew Sullivan said the Nimco property is a “keystone site” that will feature 250 housing units, onsite parking and a dog park.

He also said there are “three or four sites that are currently in play” as part of the city’s Millyard Momentum project.

“Housing has become our primary opportunity,” said Sullivan.

He said developers have also been agreeable to building more affordable housing.

“We’ve seen tremendous compromise around this,” said Sullivan.