Worcester Coming Under Fire for Downtown Delays
Wednesday, October 16, 2013
“Worcester’s revival proving elusive,” the Boston Globe headlined yesterday’s story. “Ten years ago, Worcester’s downtown was going to hum. A consortium of city officials and investors pledged to turn 21 acres of blight into offices, stores, entertainment sites, and luxury residences. The $565-million project - to be privately and publicly funded - was named CitySquare. Today, CitySquare is still a far-off promise, an unrealized revitalization effort that is all too common in the region’s old mill and manufacturing cities.”
Ouch! It brings back sad memories of when, many years ago, the New York Times referred to Worcester as “the utility closet of the Northeast.”
For more on the status of development efforts for downtown Worcester, see the slides, below.
Downtown Worcester still deserves a lot of criticism. Of course, it’s not like nothing at all is happening there. Far from it, as these key examples demonstrate:
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MCPHS University, formerly known as Massachusetts College of Pharmacy and Health Sciences, has invested more than $350 million in the downtown since opening its Worcester campus there in 2000. Most recently, last January, MCPHS bought a 3.5-acre site at Lincoln Square, formerly owned and occupied by Morgan Construction Co., for development as student housing.
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CSX has completed a $100-million intermodal freight-rail facility along Franklin Street. And, after years of negotiations, the Commonwealth officially accepted from CSX ownership of rail tracks and operations along the Framingham/Worcester line. This enabled the MBTA to increase commuter-rail service between Boston and Worcester, to a total of 31 stops arriving in or departing from Worcester.
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WPI is completing a $38-million, 89,000-square-foot residence hall on Faraday Street that will house 258 graduate students.
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Saint Vincent Hospital, located in Worcester Medical Center, is completing a $21-million medical office building in the nearby CitySquare development, to house a comprehensive cancer center. The new facility will offer ambulatory medical oncology in addition to radiation oncology services that the hospital currently offers at its Center for Cancer Services, located on Vernon Hill in what remains of the former Saint Vincent Hospital complex.
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The Worcester Regional Transit Authority has completed a $14-million, 14,000- square-foot transportation hub at Union Station. The facility is designed to support, encourage and promote connections between the various transportation modes at Union Station.
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The DCU Center has completing a $23-million renovation and expansion of the 30-year-old civic-center portion of the complex.
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Worcester Business Development Corp. is doing a $26-million renovation of the former Telegram & Gazette building on Franklin Street for Quinsigamond Community College’s 73,000-square-foot Health Care and Workforce Development Center, which will attract about 2,000 students and faculty to downtown.
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The WBDC has also acquired and demolished several portions of the former Vocational High School at Lincoln Square, leaving a 116,000-square-foot building with on-site surface parking. WinnDevelopment, a Boston real estate developer, is gutting and renovating the space into 84 units of mixed-income housing, with completion planned for next spring.
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Daniel Jalbert and Russell Stewart of SJ Realty, have spent between $3 million and $4 million to renovate two rundown Main Street buildings into 55 units of 300-square-foot, market-rate, loft-style rental apartments for graduate students and young professionals.
But it’s still not enough - not by a long shot. One key measurement is the tax rate for commercial, industrial and open-space property. Worcester’s is $30.85 per $1,000 of assessed valuation – more than 160 percent higher than the business rate in neighboring Shrewsbury.
And, downtown Worcester, with a population of about 25,000 – one-seventh of the citywide total of 181,000 - has a median household income of only $27,000 – three-fifths of the citywide amount of $44,000.
This brings us back to CitySquare, which its developers have hailed since Day One as “largest single public/private development project in Massachusetts history outside of Boston.” The Paul Revere Life Insurance Company, a division of Unum Group, has a long-term lease for a new, 200,000-square-foot office building at CitySquare, which the disability-and-life insurer occupied last January.
Perhaps tellingly, the three-year-old item about the CitySquare groundbreaking is the latest posting on the CitySquare website. This may help explain the headline on yesterday’s Globe story. Worcester’s revival is, in fact, proving to be elusive.
A MassINC report earlier this year laid out the economic challenges that face Worcester’s downtown-development efforts. In so-called Gateway Cities such as Worcester, most new commercial and residential projects don’t live up to expectations because they generally cost more to build than they can charge for rent. It's not because Worcester's vision is not wrong, the report indicates, but instead because the marketplace does not always support such a vision.
Steven Jones-D'Agostino is chief pilot of Best Rate of Climb: Marketing, Public Relations, Social Media and Radio Production. He also produces and hosts The Business Beat on 90.5 WICN, Jazz Plus for New England. Follow him on Twitter @SteveRDAgostino.
Related Slideshow: Worcester’s Remaining Eyesores
The downtown of any vibrant, dynamic city is composed of much more than its buildings. But it is those very structures – and the shape they’re in - that can cause people to be either attracted or repelled. Downtown Worcester has seen much in the way of building construction and restoration in recent years, as noted in the main article. But the buildings shown here are among the key reasons that the downtown of New England’s second-largest city still has a way to go, to be widely regarded as truly revitalized.
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