Worcester Business Journal

wbjournal.com | September 28, 2020 | Worcester Business Journal 7 Federally Insured by NCUA ICCreditUnion.org Intelligent Business Solu ons Looking for a be er approach? Look here! We provide a more cost-effec ve way to run your business. Our approach has proven successful with small businesses and start-ups as well as larger, established companies. Call Bruce at 978-353-1331 or email businessbanking@iccreditunion.com and get started today! Better Business Banking Solutions August 18, 2018 City of Worcester, Pawtucket Red Sox and Madison Properties announce plan for minor league baseball team to move to proposed $101-million stadium, with play to begin in 2021, along with a surrounding $140-million development from Madison. September 2018 Worcester City Council formally approves Polar Park project. April 1, 2019 The deadline for Madison Properties to convey ownership of the ballpak land to the city April 12, 2019 City begins eminent domain process to take properties for ballpark site. July 11, 2019 Ceremonial groundbreaking takes place for Polar Park. August 28, 2019 First building demolished to make way for ballpark. January 11, 2020 Projected costs for Polar Park costs rise to $132 million. April 2, 2020 Ballpark construction delayed because of coronavirus pandemic May 11, 2020 Construction resumes. September 18, 2020 Delays and size reduction announced for Madison Properties development and planned parking garage. September 25, 2020 Worcester Redevelopment Authority expected to vote on deal in which Madison Properties conveys ballpark property to the city. The city anticipates owning the land within 10 days of the vote. January 2021 Original date Madison Properties announced the first phase of its project would be complete. April 2021 Planned opening for Polar Park September 2022 Date when the first of five buildings from Madison Properties is expected to open, a residential building across the street from Polar Park. December 2024 Date when the last of the five buildings from Madison Properties is expected to open, a commercial laboratory development. Polar Park, a timeline A look at key dates in the history of the Polar Park baseball stadium and its related development in Worcester. Source: City of Worcester, Worcester Business Journal lion Las Vegas Aviators stadium as the most expensive ever. at was before the coronavirus pan- demic threw the cost and construction timeline into disarray. "I can say with confidence there will be impacts, and we will share them with the council when we fully understand," Augustus told the City Council in May. e construction of the stadium was shut down for almost two months in April and May in an effort to stem the spread of the coronavirus. To make up for that lost time, PawSox Executive Vice President Dan Rea said in a WBJ interview in August construction crews have been working double shis over the summer, so the city and the team can still meet the anticipated opening date in April 2021. On Sept. 18, Augustus said in a report to the Worcester City Council the ball- park construction team will meet the April 2021 opening deadline, describ- ing a Herculean effort by all parties involved. Who pays for the cost overruns – the city or the team – will come out at the negotiating table. Aer the team agreed in 2018 to move to Worcester in 2021, the city and the team never had a specific deadline for when they would finalize the lease agreement for the team to occupy the stadium. Typically, though, a govern- ment wants that deal complete before it starts sinking money into construction costs, said Edelman, from Baruch Col- lege, so it can maintain its negotiating leverage. "ere's kind of a poker game, and the public usually has a bad hand on that," said Joel Maxcy, a sports economist at Drexel University in Philadelphia. City spokesman Walter Bird said it would be more unusual for a lease to be completed at this stage of a project. In the meantime, the initial agree- ment from August 2018 be- tween the city and team serves as a governing document between the two sides. "e base lease has been draed but operational decisions like public access logistics, parking coordi- nation, and shared advertising assets, continue to be fleshed out as the con- struction takes shape and we're able to see first-hand how the entire develop- ment interconnects," Bird said. Experienced negotiators e 2018 memorandum of under- standing between the city and PawSox said the team will be responsible for all construction cost overruns. at initial agreement says neither side shall be responsible for so-called force majeure events, a legal clause for unforeseen events such as a pandemic. But that clause was to be defined in the lease, which hasn't been signed. When asked, the team didn't com- ment on whether it's committed to picking up all the extra ballpark construction costs as spelled out in the memorandum of understanding, instead referring questions to the city. e team also declined to com- ment on the lack of a signed lease to move into the stadium. When asked about if the plan is to still have the team pay for all construction cost overruns, the city said the team's obliga- tions in the memorandum of understanding remain. "e team and city are working collaboratively on the construction of Polar Park to ensure it is a ballpark that makes the community proud," Bird said. "We have also worked to overcome COVID-19 delays and obstacles together as part- ners, while still being ready for an April 2021 Opening Day." In January, when the construction costs on the stadium first rose from original estimates by $9.4 million, the team said then it would to pick up those extra costs, although the city agreed to give the team a portion of the facility fee collected on the price of tickets – money originally slated to go to the city for the stadium upkeep. When governments negotiate with businesses – especially those like the Denis Dowdle, the president of Madison Properties Continued on Page 8

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