Worcester Business Journal

wbjournal.com | October 2, 2023 | Worcester Business Journal 19 FidelityBankOnline.com You deserve a bank that actually cares. Call or visit a caring LifeDesign Banker today 800.581.5363 Clarity. Confidence. during the building of the $160-million Polar Park baseball stadium. Now, the City and WRA are seeking to give teeth to those policies. "For a long time with the TIF policy and the (WRA's) REIPP policy, there's re- ally no interim step for compliance," said Dunn. "It's just: Do you want to decertify the TIF or reduce it in some fashion?" e latest enforcement proposal, which still must be approved by City Council, calls for $5,000 fines and possible reduction of tax break benefits, although developers and construction firms would be given opportunities to return to compliance. It is no small order to achieve the workforce goals. No TIF/TIE construc- tion projects in Worcester are meeting all of the goals as of June 30, according to Dunn's semi-annual report. So many projects happening concur- rently in Worcester, it stretches the local workforce, but the city is trying to help to provide more opportunities to join the workforce, Batista said. "Our biggest commitment to this effort has been the Worcester Jobs Fund," said Batista. "We invest money in that program to get folks to have opportunities to be educated … {and receive} training and certifications so that they can be connected with these types of jobs." Market forces drive development Despite the City's more assertive ac- tions toward development, Sullivan said developers feel supported in Worcester. "Permitting is light years ahead of the Boston area," he said. "Developers can get a 60-day turnaround." Developers still see Worcester as a viable place to build, Jacobs said. "Worcester is still the hottest market in the state," said Jacobs. "e City has had a user-friendly approach with all my clients – multi-family or retail – during this unprecedented period of growth." e City's moves won't be the barrier to development, he said. Larger eco- nomic forces are much more impactful. "Starting at the institutional level down to the local level, most banks are scrutinizing multi-family developments more than in the past. Also, private equity investors are not as bullish on this sector as they were in the past few years," Jacobs said. "ese factors impact most of the industry and will continue to do so until the economy is considered more stable." Tax break job-creation requirements For companies who receive tax-increment financing deals from the City of Worcester, they are required to meet certain job-creation targets or risk losing their tax breaks, which typically total in the millions of dollars. Historically, city officials have let companies slide if they don't meet all the requirements, but in September the City Council voted to decertify Tennessee insurer Unum's tax break for not meeting its requirements. Full-time jobs initially estimated Full-time jobs to be retained actually retained TIF Project and created and created Hilton Garden Inn 100 66 Life sciences facility at 722 Plantation St. 8 0 Saint-Gobain Performance Plastics 98 76 Gateway Park - 50 Prescott St. 70 49 Saint Vincent Cancer Center 48 67 Unum building, now One Mercantile 732 331 (remote) Redevelopment of 20 Franklin St. 46 95 The Oasis at Dodge Park nursing home 49 72 Absolute Machinery Corp. 20 19 AC Marriott Hotel 90 47 (39 part-time) 150 Blackstone River Road, logistics hub 330 397 Table Talk Pies - Armory Street 12 7 Armory Business Center 32 55 Table Talk Pies - Southgate Street 80 109 YWCA Central Massachusetts 73 66 Table Talk Pies - Grand Street 153 127 Note: The City of Worcester has TIF agreements with WuXi Biologics, Washington Square HomeSuites, and Madison Properties, although the job-creation requirements haven't started yet, as the construction projects aren't finished. Source: Worcester Executive Office of Economic Development semi-annual reporting as of June 30, 2023 B A N K I N G & F I N A N C E F O C U S W

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