Worcester Business Journal

8 Worcester Business Journal | March 18, 2024 | wbjournal.com Canal District Transformation Part 1 (in this edition): Since the $160-million Polar Park baseball stadium opened in 2021, property values have risen at nearly double the rate of Worcester overall. Part 2 (coming April 1): The flow of money into the Canal District has impacted businesses and residents, and what that means for the neighborhood's future. e rising value of the Canal District Since Polar Park opened in 2021, surrounding property values in Worcester's trendy neighborhood have risen 83%, more than double the citywide increase BY ERIC CASEY WBJ Staff Writer T he Canal District in Worcester has seen a number of transformations in its storied history: from its namesake canal designed as an artery of commerce, later paved over aer the rise of the locomotive; to the growth of highways and suburbs, which drained the neighborhood of its immigrant-run shops. By the time the current wave of developers started coming in, the neighborhood was a hub for wholesale businesses – and little else, said Allen Fletcher, one of the founders of the Canal District Alliance. "It wasn't nothing, but it wasn't much," Fletcher said. "Nothing exciting in terms of a district, but that's what I walked into." e efforts by Fletcher and others like plumb- er-turned-developer Dino Lorusso attracted the attention of an eclectic mix of small-business entrepre- neurs and created a funky urban neighborhood, which eventually caught the eye of the Pawtucket Red Sox. In 2018, the team announced its intention to move into the Canal District. at kicked off plans by the City of Worcester for another economic transformation of the neighborhood, initially envisioned as a $240-million public-private project with hotels, residences, and retail all centered around what eventually turned into the most expensive minor league baseball stadium ever built. Since the publicly owned Polar Park stadium opened in 2021, the value of the Canal District has risen at more than double the rate of the city, according to a WBJ analysis of more than 200 properties within the district. "I'm very bullish on the Canal District, even in the face of some recent troubles," said Will Kelleher, principal of Worcester real estate firm Kelleher Sadowsky, who represents some property owners in the Canal District. "As residents move into the new developments, retail will likely follow to support the residents in the area." An 83% increase in values WBJ tracked from 2021 to 2024 the assessed property values of the 204 parcels comprising the 92.25-acre district, using data from the City of Worcester property assessor. e exact neighborhood borders are nebulous, so WBJ used the railroad tracks, Union Station, and I-290 as western, northern, and eastern borders while Hermon, Lamartine, and Washington streets, along with a portion of Lafayette Street between Washington and Milbury streets, for the southern border. at research found the assessed value of the Canal District properties – not counting the Polar Park parcel itself – rose from a combined $87.41 million in 2021 to $159.95 million in 2024. at 83% increase is more than double the 41.3% increase seen across the entire city over the same time, according to data from the City of Worcester assessor. "e Canal District is a critical piece to the City's economic development agenda and the city's vibrancy as a whole. It's exemplary of the best practices you want PHOTO | MATT WRIGHT Allen Fletcher stands on Kelley Square, which was remade in the wake of the Polar Park announcement, with his Worcester Public Market in the background, along with The Cove under-construction housing development (in blue).

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