Worcester Business Journal

www.wbjournal.com April 27, 2015 • Worcester Business Journal 17 In addition to the spending commit- ment, the group also secured a voice in discussions on future developments through regular meetings with the city manager. The coalition is focused on increasing local jobs — both union and non-union — and hiring more minorities, women and youth, he said. Organizations within the group — which includes Massachusetts Jobs with Justice, Stone Soup, and the Worcester-Fitchburg Building Trades Council — have been lobbying for their own interests for years, Kartheiser said. Now there is one unified voice, backed by many groups to give that voice weight, he said. Buy-in from councilors Several city councilors agree with the group's goals. The group "is a healthy coalition because it is made up of a lot of different groups, not just organized labor," said District Three Councilor George Russell, who sits on the council's economic development com- mittee. But the debate surrounding the courthouse did not sit well with Councilor-At-Large Konstantina Lukes, who characterized the demands placed on the developer and the discussion around the project as a "black eye." She also raised concerns that such negotia- tions, which took place after Brady Sullivan reached an initial agreement with the city administration, could dis- suade other developers. Lukes said she's concerned something like this will hap- pen again with the coalition, especially since it will meet regularly with the city manager. "I'm afraid of another level of bureau- cracy that is going to be attached (to development)," she said. Yet, negotiations over development projects occur often, said District Five Councilor Frederick Rushton, who chairs the economic development panel, which provides a forum for community feedback and aims to get the best possi- ble deal out of agreements negotiated by the city administration. But Kartheiser explained that the time to discuss more local jobs is before the council signs off on a development, when the city has negotiating leverage. Unions' potential impact on costs Yet, when the word "union" comes up in negotiations, it raises the reddest of flags for developers. To a developer, that translates into higher costs, said Gregg Lisciotti, a Leominster developer who focuses on projects in Northern Worcester County. Union labor costs can reach 30 percent more than those of non-union workers, he said, and requirements to use union labor could cause concern for potential developers. "It just comes down to money at the end of the day. It's budgetary. If it's going to add 30 percent to your labor costs, if you don't have to do it, why would you do it?" said Lisciotti, who explained that he has no issues with unions, but that union labor is an added cost that would have to be factored in. Even a local hiring restriction could give developers pause, he said. Developers will hire locally where it makes economic sense, as it often does, Lisciotti said, but most developers have teams of subcontractors whose work they know and trust. "It would weigh heavily whether I would want to get involved in a process that could restrict me from doing what I need to do to be successful in a project," he said. "We've already got enough regula- tions and issues to deal with. We don't need another layer." Brian Thibeault, who recently pur- ch a s e d t he Higgins Armory Museum building and plans to reno- vate it, explained that developers are always negotiating with cities as they move forward. But having a discussion with a city board or committee isn't something that would dissuade him from pushing ahead with a project. "You're always negotiating with the city whether it is (a) curb cut or a pull- off lane," he said. "That happens every day. That's just the way it is." In the three years Rushton has chaired the economic development panel, its members have turned down only one proposal. The initial deal to renovate the Osgood Bradley building at the corner of Franklin and Grafton streets was not recommended because of details sur- rounding a real estate tax exemption. But the developer, Vision Development, returned and the council signed off on the project to house 250 college students under a modified tax agreement. Worcester is in a strong position, with a growing economy, good buildings prime for redevelopment and a skilled workforce, according to Rushton and Russell, and the city government needs to continue to ensure that proposed deals will help the community on mul- tiple levels, including the addition of jobs. "The developers have not been scared off," Rushton said. "It was kind of odd hearing business people complain about negotiations when they do it every day … we should never shy away from hav- ing public discussion." Q Broad coalition gains voice in Worcester development deals >> Continued from Page 1 2015 INFORMATION Brought to you by: Register Today! Media Sponsor: Presenting Sponsor: For questions, contact Andrea Hamilton at 774-204-0700 or andreah@towerwall.com Pre-registration required. For more event info and to register visit: www.2015itsecuritysummitma.eventbrite.com KEYNOTE SPEAKERS Platinum Sponsor: Gold Sponsors: June 4, 2015 8:00AM – 1:30PM MassBay Community College 50 Oakland Street, Wellesley Hills, MA 02481 Cost: $45 SUMMIT FEATURES IN-DEPTH, NEW COVERAGE ON: • FBI: Social media and open source targeting: Common sense is the best defense • Network, Application & Infrastructure Security • Mobile & Cloud Security • Security, Risk Management and Compliance • Steps to Satisfy the Demand for Security Talent William T. 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