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Worcester Business Journal www.wbjournal.com 2015 Economic Forecast 9 2015 Worcester officials will find a developer for the former courthouse building in Lincoln Square. Aer the success of the Voke Los apartments, which reached full occupancy just three months aer it opened inside the former Worcester Vocational Technical High School, there's a demand in the city for the redevelopment of classic properties, and the city is intent on returning that building to the tax rolls. } The Massachusetts legislature, although still heavily Democratic, will approve at least one of Governor-elect Baker's tax- cutting plans for business. Baker campaigned on a platform of easing the pressure on business, starting with the elimination of the inventory tax and exempting businesses that earn less than $500,000 from the corporate income tax. Democrats may dominate the Legislature, but that doesn't mean many of them dislike tax cuts. } Economic growth in Massachusetts will struggle to reach 3 percent as interest rates rise, making it more expensive for businesses to borrow money. e economy is growing, as evidenced by the strong job gains throughout 2014. at will create upward pressure on wages in 2015, which will lead the Fed to tighten the money supply. } More Central Massachusetts communities that tax business property at higher rates than residential property will work toward narrowing that gap. } Hey, it's chic! ree of the region's largest communities — Worcester, Framingham and Fitchburg — made such moves in 2014. More will follow. Hospitals in Central Massachusetts will continue to lop off non-acute services that they believe would be better handled by smaller specialty providers. e focus on keeping patients well rather than treating illness has already put revenue pressure on hospitals. To maximize that revenue and cut costs, there will be more alliances with specialty providers of non-acute care, all part of the mission of accountable care organizations. } More colleges will broaden their online course offerings, largely amid increasing demand from students. But it will also help them hold the line on costs. Higher education, especially private institutions, are under heavy pressure to limit the growth in tuition and show how the degrees they offer translate into future earning potential. Offering more online courses can help limit overhead. } Despite the drop in oil prices in 2014, use of the fuel in Massachusetts and New England will not rise, while use of renewable energy sources such as solar and wind will gain. Natural gas is the chief heating source, but efforts to increase its flow will continue, and more property owners will latch onto solar. } A life sciences firm will relocate from inside Route 128 to Greater Worcester as the city builds on some advantages to attract companies in that industry. e pending move of GE Healthcare Life Sciences' headquarters to Marlborough gave Central Massachusetts notable skin in the game for fostering the growth of an industry of the future. More businesses will take notice of the cost advantages and the access to talent at the region's colleges. } The 495 corridor will continue to see a drop in office and industrial vacancy rates. Marlborough has become a business magnet over the last two years. at will continue as the economy improves, and its neighbors will see a spillover effect. You know what they say about a rising tide … } A mutual bank in Central Massachusetts will seek state approval to sell stock. Banks, particularly smaller ones, are facing a tough regulatory climate while still handcuffed by low interest rates. Going the stock route can provide an influx of cash and possibly open the door to a merger. Other Bay State banks already asked for state approval in 2014. } ...and why it will happen Our prediction...