Worcester Business Journal

34 2023 Economic Forecast • Worcester Business Journal • www.wbjournal.com moving, and Corrales plans to add staff. e first such project is the redevel- opment of the Curtis Apartments in the Great Brook Valley neighborhood. e WHA is partnering with Boston devel- oper Trinity Financial on the project. Trinity Financial previously devel- oped Courthouse Los, a 118-unit mixed-income development of the former Worcester County Courthouse on Main Street. e project, completed in 2021, offers 118-units to tenants of a range of incomes from 30% of the area median income to full market rate. e company has partnered with housing authorities around Greater Boston, New York City, and Connecti- cut to redevelop old projects and build new affordable developments. Curtis Apartments, built in 1951, is a 372-unit state family housing development, offering one-, two-, and three-bedroom apartments to residents making less than 30% AMI. e build- ings do not have a sprinkler system, nor did they have elevators until they were added 20 years ago on the outside. "It's costing an awful lot of money just keeping the lights on. at's part of the problem when you're maintaining an old property that is 75 years old," said Corrales. e proposed redevelopment would replace the existing buildings with modern structures and add 155 units. e redevelopment will add units affordable to tenants earning 60% and 80% AMI, and some market-rate units. e project will take place in phases, with phase one expected to start in summer or fall of 2023. In the $90-million phase one, three buildings containing 90 units will be demolished and replaced with two buildings offering 129 units, 90 of which will be for the current tenants and the others making less than 30% AMI. e capacity for accessible units will expand as the new buildings will have elevators. "is is a good model for future development: how they involve the community, their level of communi- cation," said Sean Rose, Worcester city councilor, whose District 1 includes the Curtis Apartments. Rose worked near municipalities in Greater Boston and Connecticut where Trinity partnered with housing au- thorities, and he said Trinity effectively reached out to the community. Trinity has formed a corporate entity with WHA to develop the property, which will lease the land from WHA. Housing authorities cannot borrow against their own properties, so the partnership with Trinity allows for $160 million in financing. Worcester has a rent problem Rising rents in Worcester are hitting residents at every income level. As the cost of leased housing has risen and wages have stayed relatively stagnant, the portion of Worcester rent- ers who are overburdened by the cost of their homes has risen to 51%, a rise of 6% from 2010 to 2020 and outpacing nearly all comparable cities in Central Massachusetts and the Northeast. For businesses in and around the city, the increasingly unaffordable costs for their employees to live in Worcester compounds their workforce problems, still exacerbated by the fallout from the coronavirus pandemic and other issues like childcare costs, said Alex Guardio- la, vice president of government affairs and public policy at the Worcester Regional Chamber of Commerce. "You see this in the area's industrial and manufacturing sectors, hospitality, and especially in health care," Guardi- ola said. Worcester Business Journal has partnered with the nonprofit Worcester Regional Research Bureau on this re- port "Redlining: An Economic Legacy" to examine the impact of rising rental costs in the city, along with the historic decisions that have led to specific neighborhoods and people of color to disproportionately bear the brunt of the issue. "As householders spend higher and higher percentages of their income on household costs, they necessarily must make trade-offs in other areas of their lives," WRRB writes. "us, cost-burden has the effect of exacerbat- ing income inequality and inhibiting asset growth; people need a place to live, and may cut back on other areas of spending in order to pay increasingly high household costs." Worcester has long been considered an affordable alternative to Boston, and while rents in Worcester do not yet match those in Boston, other commu- nities like Fitchburg, Leominster, and Clinton are touting their affordability, challenging Worcester. Call for 2023 Nominations Worcester Business Journal WBJ Looking to sponsor one of these high profile annual events? Contact Mark Murray, associate publisher at mmurray@wbjournal.com for more details! BUSINESS LEADERS OF THE YEAR & HALL OF FAME AWARDS Nomination deadline: January 20, 2023 Publication date: March 6, 2023 To nominate: www.wbjournal.com/businessleaders is special edition and event honors top business leaders in Central Massachusetts for their companies' successes and contributions to the community. In addition, we'll honor a select group of Central Massachusetts business leaders with our annual Hall of Fame awards. Presenting sponsor: MANUFACTURING EXCELLENCE AWARDS Nomination deadline: February 17, 2023 Publication date: April 3, 2023 To nominate: www.wbjournal.com/manufacturing Recognizing some of the area's top manufacturing firms with our annual Central Mass "Manufacturing Excellence Awards". Manufacturing companies are recognized in the areas of general excellence, product design, workforce development, green manufacturing, collaboration and we'll also honor one "Manufacturing Champion." 40 UNDER FORTY AWARDS Nomination deadline: May 5, 2023 Publication date: August 21, 2023 To nominate: www.wbjournal.com/40underforty is special annual award recognizes outstanding young leaders who are shaking up the Central Mass business community and leading us into the future. ey come from a variety of industries and may be climbing the corporate ladder or charting their own courses as entrepreneurs. OUTSTANDING WOMEN IN BUSINESS AWARDS Nomination deadline: August 5, 2023 Publication date: October 16, 2023 To nominate: www.wbjournal.com/womeninbusiness is annual awards program recognizes the achievements of strong, talented and remarkable women who are making their mark on the Central Massachusetts business community. Presenting sponsor: H O U S I N G W The Vernon Hill neighborhood in Worcester

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