Worcester Council Green Lights Economic Development Project that Could Top $100 Million
Wednesday, June 15, 2016
City Manager Ed Augustus vehemently argued for passage of the plan could cost $104 million including improvements for infrastructure and, if required acquisition by eminent domain and a corresponding.
Augustus argued that the goals of the plans are to spark or force economic development by creating an environment that brings more residence downtown, more college activities and more businesses in the the area.
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What are the costs and the opportunity
The plan as adopted envisions as much as $19 million be budgeted for taking of private property via newly approved powers of eminent domain.
An exchange between Councilman Michael Gaffney and Worcester’s Chief Economic Development Officer unveiled that the last time the city took on such an effort the cost for the project skyrocketed.
The Med City project cost the City of Worcester about $40 million ($33 in acquisition costs — $22 million higher than expected and budget). The net impact of retaining St. Vincent to Worcester via Med City has been $52 million over twenty-three years. Thus, the net financial impact was $12 million to the City.
Gaffney questioned if the acquisition costs associated with this urban development project could spiral, but Traynor outlined that acquisitions under the power of eminent domain were budgeted against current assessed value, but actual payments are determined after two independent appraisals at fair market value are made.
Therefore, there is some unknown factors to the costs.
Augustus also admitted under questioning that environmental clean-up costs are unknown - we don’t know the costs “under the ground” at the Wyman Gordon development.
The city’s Traynor said, some property owners are incapable and some are unwilling to redevelop their properties.
Councilman Khrystian King raised strong concerns about displacing small, local ethnic businesses and further promoting "systemic and structural inequalities."
Councilwoman Candy Mero-Carlson was concerned that there was no requirement for local hiring in construction projects sparked by the plan.
Over the past decade, downtown Worcester has witnessed substantial public and private investment.
• The Theatre District Master Plan is a strategic review of the strengths, challenges, and opportunities of an approximately 30 acre area in the downtown.
• The goal: To drive growth and spur private investment by leveraging public improvements with the outcome of activating the street life throughout the District.
• The vision: An active, mixed‐use, 18‐hour neighborhood with significant institutional growth to support a vibrant entertainment and cultural environment drawing residents, businesses, and visitors to downtown.
‐ To achieve these: Create a district identity and a sense of place; identify buildings and sites that provide opportunities for transformation; and outline strategic public improvements and design guidelines to enhance the public realm.
DOWNTOWN URBAN REVITALIZATION PLAN
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