Worcester Business Journal

wbjournal.com | January 10, 2022 | Worcester Business Journal 37 Offshore wind delivers benefits V I E W P O I N T E D I T O R I A L M assachusetts will be the home of the first utility-scale offshore wind development in the country with the Vineyard Wind Project, with more projects off our coast in the pipeline. Offshore wind is picking up momentum, and with a partner in the Biden-Harris Administration eager to open new lease areas throughout New England, we are on the precipice of a dramatic expansion of clean energy. e economic impact from these projects has the potential to be transformative. For residents and business owners in Massachusetts, offshore wind will help stabilize our electricity rates. e two offshore wind bids selected thus far by the state come with a cost of 6.5 and 5.8 cents per kilowatt-hour respectively, some of the most affordable energy in the Northeast. Offshore wind has the potential to deliver thousands of good-paying jobs. We must make thoughtful, bold investments in our people and communities to ensure we have a ready workforce. First, in developing the requests for proposals for the next tranches, we need to focus on maximizing potential economic development across the state, workforce investment, and job creation returns, and investments in minority-owned businesses and diverse communities. e Baker-Poli- to Administration made modest tweaks to the criteria weight in these areas in their latest RFP last spring, but we need to think bigger in future procurements, especially those with neighboring states. Second, our Commonwealth urgently needs to prior- itize workforce development. Speaker Ronald Mariano aided this priority significantly by championing the cre- ation of the Offshore Wind Energy Career Training Trust Fund and capitalizing it in the fiscal 2022 state budget. State colleges and universities in Southeastern Massa- chusetts have partnered through their Connect4Wind initiative. Expansion of efforts like this should be a core focus of the new legislation filed by Gov. Charlie Baker, legislation being developed in the House, future invest- ments by the legislature in the Offshore Wind Energy Career Training Trust Fund and other initiatives. ird, given the incredible opportunity that offshore wind and other clean energy technologies present, the Commonwealth should replicate the successful compo- nents of the 2008 Life Sciences law for the clean energy industry. Massachusetts must make every effort to distin- guish itself as the place to be for clean energy job creation. We can do that by offering direct funding investments and competitive tax incentives for existing and emerg- ing businesses through the Massachusetts Clean Energy Center as Gov. Baker proposed. Timothy Murray, president and CEO of Worcester Regional Chamber of Commerce, is former Mass. lieutenant gover- nor. Jen Benson, president of Alliance for Business Leader- ship, is a former member of Mass. House of Representatives. BY JEN BENSON AND TIMOTHY MURRAY SPECIAL TO WBJ The above Editorial is the opinion of the WBJ Editorial Board. The Viewpoint column, the A Thousand Words cartoon, and the Word from the Web commentary represent the opinions of their authors and do not necessarily reflect the views of WBJ or its staff. WBJ welcomes letters to the editor and commentary submissions. Send them to bkane@wbjournal.com. A T H O U SA N D WO R D S B Y R A M Ó N L . S A N D O V A L e price of a hot market Timothy Murray H ousing prices throughout Massachusetts have been on a tear over the last few years, and those increases have been particularly acute in Worcester. Rather than dampen demand, the coronavirus pandem- ic has put even more pressure on a hot housing market. In the city of Worcester, single-family home prices rose 12% in 2020, and another 18% through the first 11 months of 2021, according to Peabody real estate data firm e Warren Group. Over the last few decades, waiting for housing prices to rise any more than the low single digits in Worcester was like waiting for Godot. But that's not true anymore. e recent rise in prices has both winners and losers. On the plus side, more wealth is coming into the city, and a growing population with a healthy percentage of young adults in their 20's and 30's is a metric spelling success in any eco- nomic development plan. Rising prices help attract more developers who are investing in new housing stock and fixing up older homes. e acceleration in development has brought significant investment to the city while shoring up its tax base. On the down side, rising prices means higher costs for just about everybody, whether it is rising rents or increased property taxes on homes with in- creased valuations. Worcester has been attractive in part due to its affordability. But steep rises in rental rates and the cost of housing make it less affordable, which hurts those with below-average incomes. As Realtor Brian Allen points out in the "Luxury" story on page 8, Worcester is already seeing an exodus of its low-income residents to communities like Southbridge, Webster, and Spencer, which impedes Worcester from having a well-rounded workforce. While Greater Boston's high residential and commercial costs have in no small part contributed to the momentum here, the price of new construc- tion in both areas is about the same. And that is reflected in the cost of new projects. So what does a city do when so much of its momentum stems from its relative affordability? A great balancing act will be required in Worcester when it comes to sup- porting a mix of affordable, market rate, and luxury housing. e most vibrant neighborhoods will be a combination of all three. Worcester isn't yet a mar- ket for new condominium development, but when it is, that will add another pressure to the scale. Back in the day, finding a large-scale outside developer to invest in Worcester was a rare occur- rence. Today, Worcester is a hot market with a lot of outside interest and few signs of slowing down. Having a long-term strategy and vision for the city and its neighborhoods is critical to assuring the Worcester of tomorrow continues to progress, but still maintains its unique character and soul. is puts a heavy burden on city leaders and planners to influence and prod projects to assure they make a positive contribution to their neighborhood and the city, as well as ensuring they contribute their fair share of taxes to support that growth. ere will be winners and losers regardless, but the more the city can retain its unique character while protecting the most vulnerable and encouraging new blood to come into the community, the better off Worcester will be. W Jen Benson W

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