Worcester Business Journal

4 Worcester Business Journal | June 12, 2023 | wbjournal.com C E N T R A L M A S S I N B R I E F V E R B AT I M Angel investors "With the recent growth of the Central Massachusetts startup scene, it's a really exciting time to provide a new generation of entrepreneurs and investors with a connection through our group." Zachary Dutton, founding member of the new Worcester-based angel investment firm Wire Group, in a May 31 press release announcing the group's formation Closing dispensaries "These difficult but necessary measures are part of ongoing efforts to bolster business resilience and our commitment to cash preservation as we continue to focus on our business strategy of going deep in our core markets and jettisoning non-contributive assets." Kim Rivers, CEO of Florida-based cannabis company Trulieve, in a June 1 press release announcing the closure of its dispensaries in Framingham and Worcester Departing headmaster "We are fortunate and grateful to have had and continue to have a leader like Alex with tremendous expertise and an even-larger mission-forward outlook. Alex's vision and dedication have propelled Saint John's High School to new heights." Christopher Creed, chair of board for Shrewsbury all-boys private Saint John's High School, in a May 25 press release announcing the planned 2024 departure of Headmaster Alex Zequeira. Pictured is Zequeira. BY BRAD KANE WBJ Editor D espite anticipated revenue shortfalls, the City of Worcester projects to continue paying the debt on the $160-million Polar Park baseball stadium, as promised, without tapping general taxpayer funds. As was the case for the first two years of debt payments, the saving grace for the current fiscal year 2023 and the next fiscal year 2024 is a $3-million property sale from 2021, the proceeds of which were placed into a reserve fund to help make the Polar Park payments. ose reserve funds will be nearly depleted by the end of fiscal 2024, but by that time, the City anticipates the special district improvement financing (DIF) area around the ballpark will become revenue positive, particularly as more proposed housing, hotel, and office developments in the DIF come online. If those revenue-positive years start adding up, the City projects the DIF will generate at least $50 million in excess funding, above what is needed for the debt payments, over the 30-year lifespan of the DIF. "e ballpark, it is successful," Worcester City Manager Eric Batista said. "It continues to pay for itself, and it is attracting developments to the neighborhood and bringing attention to the city." In order to acquire the land, build the ballpark, and make other improvements to the Canal District neighborhood like street and sidewalk upgrades, the City of Worcester from 2018-2022 borrowed a total of $146 million through six long- term municipal bonds, according to a presentation Batista made to the Worcester City Council on June 6. When the ballpark was initially proposed in 2018 as a publicly-owned home for the relocating Pawtucket Red Sox minor league baseball team, the City planned for the revenues from inside the DIF to cover the annual debt payments. en City Manager Edward Augustus repeatedly called this pay-for-itself promise his North Star for the stadium project, a mantra Batista has continued since he took over as city manager in June 2022. "I don't want it to be in a place where I'm pulling more revenues from the general budget," Batista said. e amount of the debt payments vary by year and generally increase annually, including a significant spike in 2049 when the annual payment exceeds $14 million, according to the presentation. e first year the City needed DIF revenues to help cover debt payments was fiscal 2021, and every year since then those DIF revenues have fallen short of what the City needed: In fiscal 2021, the DIF revenues were short about $250,000. In fiscal 2022, DIF revenues were short $1.3 million. In fiscal 2023, which is the current fiscal year ending on June 30, the City projects DIF revenues will be short $1.8 million. In fiscal 2024, which starts July 1, the City projects DIF revenues will be short $644,000. However, those shortfalls have been offset by the City's DIF reserve fund, which received its most significant contribution in November 2021 when the City sold a publicly-owned property on Green Street for $3 million to the developers of e Cove, a 171- unit, seven-story housing complex now under construction. e City had originally purchased the parcel in anticipation of needing it for Polar Park and then sold it when it wasn't necessary for the ballpark. e DIF reserve fund had $2.7 million le at the start of fiscal 2023, and aer the projected DIF revenue shortfalls for the two next fiscal years, the City anticipates the fund will have $310,179 le at the end of fiscal 2024, according to Batista's presentation. "is is where it gets tightest," City of Worcester CFO Tim McGourthy said. "2024 is when we get closest to the base of the reserve." If the reserve gets so low where the City can't make the debt payments out of the DIF revenues, Batista would ask the City Council for a special appropriation out of general taxpayer revenues to cover the difference. Batista and McGourthy do not anticipate that needing to happen. Despite shortcomings, Worcesters anticipates making Polar Park debt payments as promised W Crowds gather along Madison Avenue in front of Polar Park before a Worcester Red Sox home game in their inaugural 2021 season. PHOTO | WBJ FILE

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