Worcester Business Journal

wbjournal.com | January 24, 2022 | Worcester Business Journal 11 raging for six months, turning the office, retail, and hotel markets on their heads, even though construction had been delayed for the initially proposed January 2021 opening date well before the pandemic began. "e hotel world is a lot different today than it was when we first started talking about all this three years ago," said Madison Properties President Denis Dowdle, whose revised plan removed one of the two proposed hotels. "We're trying to adapt with the times and find something that's a good long-term fit for the site." e reasoning behind e Cove's reduction, however, is more of a question mark. "It's somewhat surprising that you're seeing something scale back at a time when we've clearly got high increasing prices for housing," said economist Matheson. One potential factor could be materials costs, which have fluctuated throughout the pandemic. e cost of steel has more than doubled since September 2020, according to the U.S. Bureau of Labor Statistics, while lumber prices have been falling significantly since mid-2021. "We took this opportunity to transition from an expensive steel high-rise to a wood frame construction type that is more budget conscious and attainable to the middle market renter," John Tocco, a development leader on e Cove project, said in a statement. Churchill James postponed its Jan. 12 planning board hearing to the beginning of February, and DiLeo and Keane did not return requests for comment on this story. The bottom line: Implications for Polar Park's bill e question now is: Will the three developments be large enough and completed fast enough to pay off Worcester's bill for Polar Park? "While we continue to navigate the changes in the pandemic and the real estate market, we are still anticipating that the [tax district] will have a significant return on investment over the life of the project," said Worcester's chief development officer, Peter Dunn, in a statement. e projects are not officially assessed until aer improvements are made, but Dunn estimated e Cove will be valued at more than $40 million upon completion. e Madison Properties development is continuing to meet delays. Its first phase, a roughly 228-unit residential complex, is still under construction. It was originally slated to open September 2021, then pushed to September 2022, and Dowdle most recently told WBJ it will open in mid-2023. Because of the multiple delays on Madison's various projects, the City's agreement with Dowdle says Madison has to make targeted tax payments on certain buildings, regardless of whether they get built, including the Le Field Building immediately behind Polar Park. Dunn estimated Madison's first residential property will be assessed at $40 million, a significant figure compared to the $49.3-million combined value of Madison's office building, Le Field Building, hotel, and second residential building, which was estimated in a September 2020 report. e third proposed major mixed- use project in the Polar Park tax district is the redevelopment of the former Table Talk Pies headquarters on Kelley Square. Dunn estimates that 400-residential-unit project called Table Talk Los will be valued at $60 million. So far, developer Boston Capital has remained on schedule and on budget, but the company has committed to only the first phase of the multi-phase project, which is 83 of the 400 proposed units. Overlooked costs Matheson, of Holy Cross, said the delays and abridgements of the district's developments prove it's difficult for the City to hold developers accountable. "e only real recourse the city has in terms of stadium issues is simply to keep expanding the amount of the city that is subject to a tax to pay for that stadium," said Matheson. e City's first expansion of the ballpark taxing district came in January 2020, aer construction costs on the stadium increased by 30%. e tax district has stayed the same since that time. Another expansion of the district, Matheson said, could have negative consequences for the city, as more tax dollars are funneled toward the ballpark and away from public services like schools and roads. e Worcester economist raised concerns about the residential nature of the developments, noting they will bring in an influx of residents, which will create new strains on city services not accounted for in the ballpark's cost analysis. "Normally, when you build a big apartment building, you put a bunch of taxes on that building so that you can pay for the services of the people in that building," he said. "at was never done as part of the analysis of the ballpark." The proposed developments in the Polar Park tax district stem out of Kelley Square and surround the stadium. W We plan to go to more WooSox games in 2022 Do you plan to attend WooSox games in 2022? In their inaugural 2021 season at Polar Park, the Worcester Red Sox ranked sixth in attendance out of 120 Minor League Baseball teams, in a year impacted by the coronavirus pandemic. Heading into this year, WooSox officials are aiming to improve their attendance figures for their second season, slated to start in April. When polled online, 83% of WBJ readers said they plan to attend at least one game in 2022, with 61% planning to attend more games than they did last year. F L AS H P O L L 21% 34% 2% 27% 2% 15% Yes, I went last year and plan to attend more games in 2022. 34% No, I didn't go last year and don't plan to in 2022. 15% No, I attended a game last year but don't plan to in 2022. 2% Yes, I went last year but plan to attend fewer games in 2022. 2% C O M M E R C I A L R E A L E S T A T E F O C U S The proposal for The Cove development has shrunk from 13 stories to seven stories. Yes, I went last year and plan to attend the same number of games in 2022. 21% Yes, I didn't go last year but plan to in 2022. 27% "The carpetbaggers are already planning their exit, and it won't be with a dime of mine." - Robert Anderson COMMENT: RENDERING | COURTESY OF WORCESTER PLANNING BOARD

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