Worcester Business Journal

wbjournal.com | January 7, 2019 | Worcester Business Journal 9 Improvement districs help neighborhoods A Worcester business improvement district, like one that began last year in Hudson, uses a tax surcharge on property owners inside its borders to help with various upgrades, including marketing, events and infrastructure. The Worcester district anticipates about $950,000 in annual revenue. When polled online, WBJ readers said this type of taxation is helpful for neighborhoods. F L AS H P O L L Are business improvement districts a good way to improve commercial neighborhoods? clean to giving out suggestions or directions, are at the top of the list of features organizers want to see imple- mented, said Julie Holstrom, a senior project manager for the Worcester Business Development Corp. and a board member for the district. "You will see and hear and feel the difference a BID will make down- town," Siebels said, using an acronym for business improvement district. Ambassadors are planned to be roaming the district for 16 hours a day, seven days a week. Focusing on the right parcels The district includes many of down- town's largest commercial buildings, including Mercantile Center, the Worcester Plaza tower, the mixed-use Grid District and newer developments, including the AC Hotel and 145 Front at City Square apartments. In all, the district includes roughly 140 proper- ties, from small slices assessed at just $38,000 to the largest buildings up to $62 million in value. The district's boundaries were thoughtfully mapped out to include the right parcels, including those along Foster Street where many enter downtown, said Peter Dunn, the city's business and community development coordinator and a member of the district's board. "You want to identify boundaries that have this sort of natural boundary to it," Dunn said. Worcester's business improvement district joins a list of Massachusetts improvement districts including Hudson's downtown and part of down- town Boston covering Downtown Crossing and Theater District, which has transformed from a seedy neigh- borhood to one with new residential buildings and a long pedestrian-only stretch of restaurants and shops. Downtown Hudson created its own business improvement district last year to capitalize on growing retail. Boston's business improvement dis- trict started in 2011, with initiatives including promotional literature and maps, walking escorts, trash and graf- fiti removal, and street and sidewalk upgrades. The district brings in more than $6 million a year. Turning Worcester into a destination Worcester's district has received broad support from property owners, including Davis Publications, which owns the Printers Building at 44 Portland St., and the Menkiti Group, which in 2018 bought three buildings in the district with plans for revitaliza- tion. Representatives from both urged the Worcester City Council to approve the project in November, when it did so unanimously. The owners of the Mercantile Center, Grid District, City Square are also among those on board. "Our family has seen the ebbs and flows and the pendulum swing, and the pendulum is swinging back for Worcester," said Julian Wade, the president of Davis Publications. Paul Morano, a former development official for the city and now a regional director of real estate for the Menkiti Group, said the district will help property owners secure tenants. Such a partnership is needed to help ensure steps are taken to make the neighborhood a destination, he said. The Worcester district received support from all except six property owners, Siebels said. Dean Marcus, the owner of the Midtown Mall on Front Street, is opposed, saying he and others already pay substantial taxes. "It's another tax on a lot of properties. Many [property owners] can afford to, some of them cannot afford to," Marcus said. The district set up a board of directors in December and expects to have resumes in hand later this month for its first executive director. District leaders, who should begin seeing revenue for the first time in February, hope to begin making visible changes to the district in time for the spring. "The whole idea," Holstrom said, "is taking the winter to organize ourselves and when the spring comes, we can really hit the ground running with this." Yes. They pool property owners resources to make necessary improvements. 59% No. Property owners already pay property taxes to cover neighborhood improvements. 41% W

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