Worcester Business Journal

wbjournal.com | September 3, 2018 | Worcester Business Journal 21 L ast year, the Worcester Regional Chamber of Com- merce came out in full support of Mayor Joseph Petty, City Manager Edward Augustus, and a majority of the City Council in their efforts to explore the feasibility of bringing the Red Sox Triple-A affiliate to Worcester. ese efforts were not simply about bringing a major league baseball affiliate and new ballpark to Worcester, but about whether a new ballpark could serve as a catalyst for the reuse of the 22-acre Wyman Gordon site, which has been substantially vacant for decades. In fact, the Wy- man-Gordon property was included in the Worcester Redevelopment Authori- ty's Urban Revitalization Plan, which was adopted by the City Council last year. is plan recognized its blighted condition, making it eligible for emi- nent domain. e Urban Revitalization Plan was to redevelop this property in a manner that would create jobs and expand the tax base. e public announcement of a Letter of Intent executed by Augustus, Larry Lucchino of the Red Sox Triple-A affili- ate, and developer Denis Dowdle on Aug. 17 to build a new ballpark, two hotels, 250 units of market rate housing, retail space, and a garage on this property was welcome news towards reaching the Urban Revitalization Plan goal. Addi- tionally, Lt. Gov. Karyn Polito's commitment of $35 million in state assistance to address needed infrastructure improve- ments within this $240-million project was important. is Letter of Intent, based on conservative revenue estimates, will net the city an additional $7 million per year in additional tax revenue. is project does not include revenues the city will derive from ancillary development surrounding the proposed Polar Park. e chamber is confident additional development will occur, as we have received eight inquiries from developers we have been engaged with over the years. ese developers are seeking to learn about investment opportunities around Polar Park and Mr. Dowdle's proposed development at the Wyman Gordon site. Moreover, we have seen new ballparks have successfully triggered this ancillary development in cities like Durham, N.C.; Indianapolis; Nashville; and Oklahoma City. is additional development will lead to new investments in the Canal District, Vernon Hill, Green Island, Main South and the lower Chandler Street neighborhoods. During his tenure as city manager, Augustus has demon- strated strong fiscal stewardship as evidenced by the city's bond rating being elevated to AA status. Additionally, his project management skills have manifested themselves with the successful completion of Nelson Place School and the construction of a new South High School now underway. Strong leadership from City Hall, working in collaboration with all relevant stakeholders, has been a key to Worcester's success in taking on ambitious economic developments. e chamber has great confidence – with City Manager Augustus' leadership and a constructive and collaborative approach by all parties – this important economic develop- ment project will return positive economic dividends for generations to come along with some great professional Red Sox baseball here in Worcester, Massachusetts – the home of baseball's first perfect game. Timothy P. Murray is president and CEO of the Worcester Regional Chamber of Commerce. The long game with the WooSox A perfect game V I E W P O I N T E D I T O R I A L T here is a famous final scene in the movie "e Candidate" in which the long-shot political campaign of the lead character – played by Robert Redford – upon finding out he won the election, asks his campaign manager, "What do we do now?" Worcester's own campaign to wrest the Boston Red Sox AAA affiliate out from its 48-year home in Rhode Island has been a surprise success, and reason for a real victory party in New England's second largest city. e recruitment of the team was a focused, coordinated effort by the city, its citizens and the state – and unlike the movie, there is a what's-next plan in place. Pawtucket had the incumbent's advantage, but neither the political will or financial backing. e Worcester proposal for a $90-million stadium in a larger $240-million hotel-and-apartment development was simply too good for the team to turn down. e financial details, from the city's perspective, appear less successful. e city is borrowing $101 million, with the WooSox's rent payment covering about 30 percent and the city planning on using the taxes and fees generated by the hotels and apartments – developments which are also receiv- ing tax breaks – to cover the rest. While the city is confident those taxes and fees will cover its annual $3-million payment, if they don't, it has to cover the rest out of its $632-million yearly budget. But even if the worst-case scenario comes trues and the city has to take, say, $40 million away from its police, fire or snow removal budget to cover the stadium payments over 30 years, you still have to look at everything the city is getting in return: the top minor league affiliate of perhaps the most BY TIMOTHY P. MURRAY Special to the Worcester Business Journal Timothy P. Murray The Worcester Business Journal welcomes letters to the editor and commentary submissions. Please send submissions to Brad Kane, editor, at bkane@wbjournal.com. WO R D F R O M T H E W E B well-known brand in New England; private Boston developer Madison Downtown Holdings investing in a hotel, apartment and mixed-use complex on the blighted Wyman-Gordon property; $35 million in state investment in infrastructure and a parking garage; and another state investment in the overhaul of the Kelley Square traffic quagmire. e city must be careful to make the stadium a catalyst for further Canal District investment and ensure the massive, multi-year construction project doesn't weaken the momentum of the area. e stadium and its surrounding buildings need to be designed in a way to seamlessly fit in to the neigh- borhoods. Knitting in a large new development with small-scale urban space requires real expertise. e management of that process and public side con- tribution are critical. e most active spaces in the city are thriving because they have benefited from organic growth – and not because a mega project was beamed in from on high. Getting the connect- ing fabric right is a big deal. Ask a businessperson for a three-year plan for their company, and they might have one sitting on the shelf. But ask the for a 30-year plan, and they'll likely laugh out loud. Who knows things that far in the future? Likewise, projecting the financing model for the stadium over 30 years is a guessing game. Will baseball remain sufficiently popular? Will the Red Sox have the same magic to their brand? Who will run the team aer Larry Lucchino retires? Will ownership have a sustained stake in Worcester like long-time Pawsox owner Ben Mondor had in Paw- tucket? Only time can reveal the answers to the long game, but – today – it is vital the city and its part- ners remain focused and get the details just right. Tweets of the week "#Worcester is killing it right now. #MoreGreatNews" - MrsK (mrs_kinnard), Aug. 28, on a WBJ story about Worcester Regional Airport landing a $463,000 grant from the U.S. DOT "Worcester already has economic development momentum. So we are not counting on this project to spur it. I think that makes a difference. I also think this brand has significant value – maybe someone could study that. Jobs!! During and after." - Sue Mailman (@MailmanSue), Aug. 22, on a story about the Pawtucket Red Sox moving to Worcester and economists criticizing its public financing Facebook feedback "Great guy and great asset to the city." - Nick Maruca, Aug. 24, on City of Worcester project manager Che Anderson being named a WBJ 40 Under Forty winner "What is the malfunction here? The commission was created to give authority for licensing and permitting of cannabis based facilities. Why is there even a discussion about this?" - Trave Harmon, Aug. 24, on the Cannabis Control Commission's inability to decide if it has authority to enforce limits on host community agreements W W

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