Worcester Business Journal

S14 Worcester Business Journal | May 24, 2021 | wbjournal.com S P E C I A L S E C T I O N : W O R C E S T E R E M E R G I N G S tate economic-development agency MassDevelopment – which provides financing solutions such as low-inter- est loans and tax credits to developers, businesses, nonprofits and communities – has been a major player in Worcester's urban growth initiatives. Part of the city's multilayered, collab- orative approach involving state, federal and local partners, MassDevelopment offers programs in areas of real estate, financing and more specialized sectors, such as manufacturing. When it comes to these programs, Worcester Chief Development Officer Peter Dunn says the city has taken part in just about all of them. "e City of Worcester and organiza- tions in the community have benefitted from just about every tool in MassDe- velopment's toolbox," Dunn said. ese tools include the Collaborative Workspace Grant Program, Dunn said, which supported makerspace Techno- copia and other affordable workspaces for gig-economy workers. He said the Brownfields Redevelopment Fund – programming just right for a post-in- dustrial municipality like Worcester – has supported projects such as the $160-million Polar Park public baseball stadium. New Markets Tax Credits, designed to stimulate investment in low-income areas, were part of the redevelopment of the former Telegram & Gazette building, now home to Quinsigamond Commu- nity College. MassDevelopment was a collaborator in the complex, three-year deal providing other financing sources as well, such as loans and a mortgage insurance guarantee. Programs assisting lower-income ar- eas can produce some of the more dra- matic turnarounds, of course, requiring boots-on-the-ground outreach, layers of collaboration and plentiful patience while results are in motion. "We celebrate the small wins, but it does take time," said MassDevelop- ment's Marcos Marrero, executive vice president of community development. Investing in reuse Downtown's 526-538 Main St. – the former Pawn Shop building in the e- atre District – was bought by MassDe- velopment in 2017. e agency made façade improvements before offering the property to investors. is work was done through the agency's Transfor- mative Development Initiative Equity Investment program, offered in targeted focus areas throughout the state known as Gateway Cities. Worcester was named a Gateway City in 2014. With properties vacant or underuti- lized, Marrero said, their use changes as building codes get updated and modernized, with their infrastructure – roofs, electrical and piping – deteri- orating over time. Eventually, owners can't take on the expense of improving them when comparing that investment to what the cost would command in rent payments and the ability to pay off a commercial mortgage. "So a building needs a whole bunch of work," he said. But 526-538 Main St. has been in good hands with MassDevelopment, with public subsidies addressing that funding gap. Now, many years in the making, a fall closing is set for Washington, D.C. developer Menkiti Group to purchase 526-538 Main St., with New Markets Tax Credits in play. e building will offer retail, arts and cultural uses to keep with the character of the area. "People can oen see development as 'at thing that got built,' but that's just the tip of it," said Marrero. Main South focus MassDevelopment's investment and the work of TDI Fellow Ivette Olmeda have helped the Main South neighbor- hood, said Dunn. Culturally diverse, the relationships and networks Olmeda has built in the five-block area near City Hall and Clark University have paid off. "e efforts of Ivette Olmeda cannot be overstated," says Dunn. "She has helped build a bridge between the small businesses in the community and the government resources that are available to help." When the coronavirus pandemic hit, these existing lines of communication on how to access emergency businesses relief became vital. Olmeda said all but one of the 30-something businesses in Main South survived the COVID-19 crisis. "ese are minority business owners. Some are immigrants," said Olmeda, of the mainly mom-and-pop restaurants, barbershops and nail salons. "It took a little while to create that trust, but it is worth it." Olmeda said work to enhance public and private engagement in TDI zones means making the business community self-sustainable. "We create those connections, but at the same time – working as TDI Fellows on the ground – we know that one day, we are not going to be there. We have to create sustainability among partners," she said. BY SUSAN SHALHOUB Special to the Worcester Business Journal Peter Dunn, Worcester chief development officer PHOTOS | COURTESY OF MASSDEVELOPMENT A state-assisted boost Working to overcome Worcester's unique challenges, MassDevelopment fosters development and community connections This Main South art installation was funded by a $40,000 MassDevelopment grant. (Right) MassDevelopment grants helped create a community garden in Main South.

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