MetroWest495 Biz

MetroWest495 Biz | February 2014 21 50-percent return on the Holliston building. Both were nearly full at the time of sale, according to Levin, and continue to house some of the same tenants today — most of which are professional service firms. "There is definitely a type of person who is at- tracted to that kind of space," Levin said. One those people is Tim Merry, owner of Merry Design Group, a branding and design firm that has set up shop at Levin's Water Street project in Holliston since January 1996. Merry described his decision to lease space on in the old mill build- ing in simple terms. "The reason we chose this space is because it's like a tree house," Merry said. There are other reasons, of course. Merry said he felt the industrious nature of a mill building lent itself well to getting work accomplished in the modern era, too. And a resident of Sherborn, he enjoys being able to walk to work. But it's the space itself that makes coming to work so pleasant. It's sun-splashed and airy, with original Georgia yellow pine floors and none of the drop ceilings found in modern offices, which Merry happens to loathe. "It's a beautiful place to live and work," Merry said. Winning workplaces Indeed, companies are putting far greater emphasis in creating work environments that are conducive to productivity and creativity. Must- have elements include lots of light, greenery, and large open spaces conducive to collaboration, and Levin said those elements are easier to find in historic buildings, particularly those used in the industrial era. While it may be cheaper to buy an older build- ing, it doesn't necessarily translate to lower rents for tenants, according to Levin. He was charging $17.48 per square foot at the Water Street mill building in Holliston before he sold his stake in the property in 2011; he said a comparable office building on Route 9 in Natick would have netted roughly the same price, plus more convenience for employ- ees and clients. But tenants who are mindful of their work environments are willing to sacrifice some of the convenience. "Where do you want to go to work every day? Because you don't see clients every day," Levin said. Another route that developers sometimes take in Massachusetts is renovating historic buildings for modern use using historic tax credits to help defray some of the cost of construction. Levin did not pursue that option, he said, because historic tax credits did not outweigh the higher cost of renovating to preserve all original elements at his properties. And preserving all historic elements can be more complicated. For example, if an old spiral staircase cannot be used because it is not up to code, it must be walled off but not torn down, Levin said. This can cut into layout plans and creates a problem of unused space. But Levin added that some developers do save money using historic tax credits; it just de- pends on the project. Whether a developer preserves every historic detail of a property may not be as im- portant as the impact a successful project has on the real estate landscape in the com- munity. Westborough Town Planner Jim Robbins highlighted the importance of mak- ing defunct buildings habitable for the business tenants of today. He believes historic properties play a special role in the mix. Robbins said news that the 1790 House closed and the building was for sale sent shockwaves through the community. But he's relieved that it's been redeveloped by Penta. The building has joined the ranks of other historic Westborough office buildings, including Levin's Milk Street project, and others downtown, like the four-story building known as the American Block, and the Keating Building, now used as an art gallery. "It's good for property values," Robbins said of the redevelopment. "Plus, it creates what planners call a 'sense of place'." n deborah Penta of Penta Communications calls her purchase of the 1790 House in Westborough "blending the old and new." about technological gaps that may make it hard for some people to enroll through an online private exchange. At a small workplace like a gas station, em- ployees who don't have home computers might have to go into the office one by one to sign up. "That's a very long, protracted enrollment pro- cess," she said. Dave Przesiek, chief sales and marketing officer at Worcester-based Fallon Health, said there's nothing terribly new about defined contribution plans as an option, although the technology involved in private exchanges may make it easier to adopt them in some cases. Fallon doesn't offer its own private exchange, but it does partner with third parties that run online exchanges offering plans from different carriers. Przesiek said many businesses Fallon works with have chosen direct contribution plans in combina- tion with the carrier's limited network options. An employer could set its pricing based on the Direct Care network, which includes a defined group of providers. A worker who wants to save more money could then opt for the Steward Health Care system, which channels patients to Steward hospitals, while someone who wants more choice could pay more to enroll in the broader Select Care network. Do marketplaces help? "I think these marketplaces help people make more cost-conscious decisions," Przesiek said. "Is broader or narrower better? People are looking at how much things cost, as they should. It's becoming much more transparent." Since 2012, Fallon has been working with the Mas- sachusetts Retailers Association, providing defined benefits plans to association members through its insurance cooperative. Association President Jon Hurst said offering the plans to small businesses has allowed many of them to move from offering a single plan to a variety of options. "In the past, it's been pretty much a take-it-or- leave-it type option," he said. Companies would simply choose a plan that seemed best suited to a majority of employees — or the one the owner wanted, Hurst said. By offering more options, employers can meet more workers' needs. "It allows the employees to comply with the law, get insured, and perhaps choose something less robust than what the owner wants," Hurst said. "And most importantly, you're offering choice." He said the combination of defined contribution and limited network plans with risk pooling coopera- tives help small businesses achieve a level playing field with larger ones, something he said is a key to making state and federal insurance mandates fair for everyone. "If you're going to tell everybody they must buy health insurance, you should have similar choices and similar options to save money," he said. n HealTH INSUraNCe continued from page 14 s People are looking at how much things cost, as they should. it's becoming much more transparent." - Dave Przesiek, Fallon health "Where do you want to go to work every day?" - Jim levin, Developer

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