Worcester Business Journal

4 Worcester Business Journal • February 29, 2016 www.wbjournal.com D emolition has begun at the site of the extended stay hotel in Washington Square, but it isn't the only project underway, with several projects tied to downtown redevelop- ment breaking ground or opening. Washington Square The Homewood Suites Hotel by Hilton being constructed by First Bristol Corp. will be located on the rotary near historic Union Station. Demolition of two parcels that housed the former locations of KJ Barron's, Gabriel Racing and the Gun Parlor commenced this month. Weather permitting, construction on the founda- tion of the building could begin in March. The completed hotel will stretch up six stories and contain approximately 120 long-term stay rooms. Parking will consist of 115 spaces. The hotel is expected to employ 35 full and part-time workers and will generate more than $350,000 in property taxes and local hotel tax revenues. "This project is going to revitalize an underused parcel," said City Manager Edward Augustus. "With a nearly 80 per- cent occupancy rate ... Worcester has a great demand for new hotels." More hotels? Another hotel slated to come online in the next 18 months is the AC Hotel by Marriott, set to break ground in June, said Michael Traynor, the city's chief develop- ment officer. The high-end, 120,000-square-foot, 168-room hotel will bring the European luxury experience at a $30 to $50 premium over the current $150 to $199 high-end Worcester market. The hotel includes a 250-seat restaurant. The Hampton Inn at Gateway Park will have an opening in late March, said Traynor. Construction of the 100-room hotel was delayed due to an unexpected electrical line running through the site. The rest of City Square The underground Worcester Common Garage that will serve as the foundation underneath the AC Hotel will open in March with 340 of the final 550 spots. The 145 Front @ City Square 237-unit apartment complex located nearby is the first phase of a residential development that will include 128 residential units and a parking garage. Construction began in November on the first phase of the devel- opment from developer Roseland. The final project is expected to include two four- and five-story residential buildings with a total of 365 units, 402 parking spaces and approximately 11,200 square feet of street-level retail. City infrastructure work will tie these projects together. Streetscaping is com- plete at Federal and Salem streets and will continue on Portland Street. In 2017, a $7.5-million streetscape project will stretch along Main Street from the Federal Court to Worcester District Court. It will cut in half the number of travel lanes, adding a turning lane in the median and bicycle paths on the sides. n Spectrum Health president Faris to retire Spectrum Health Systems President and CEO Charles "Chuck" Faris has announced he will retire in July after 16 years leading the Worcester nonprofit. Faris joined the addiction services nonprofit in 1971 as a counselor and climbed the ranks up to associate execu- tive director in 1979, vice president in 1985 and to president and chief executive officer in 2000. In December, Worcester Business Journal named him a Central Massachusetts Power Player. "I am grateful to have spent 45 years with this great company, with an out- standing staff of professionals. It has been an honor to have had the opportunity to lead it for the last 16," Faris said in a state- ment. "As I transition to this new phase, I plan to stay active in the addiction treat- ment field, and will remain connected to all the wonderful people who have been involved with and supported Spectrum over the years." EMC-Dell merger receives FTC clearance The $67 billion acquisition of EMC by Texas-based Dell has been cleared by the U.S. Federal Trade Commission, paving the way for the largest IT merger in U.S. history. The waiting period for the merger of the two companies officially passed at midnight Feb. 22, with the FTC raising no issues with the acquisition, according to a release from Dell. The combination of Dell and Hopkinton-based EMC will create the world's largest privately-con- trolled, integrated technology company. The transaction remains subject to approval by EMC's shareholders, with a vote expected in the spring. Regulatory clearance in certain other jurisdictions and other customary closing conditions must also take place. The acquisition of the Massachusetts information storage company by the mammoth Texas com- puter company is set to sail through the European Union's antitrust regulators without any concessions. Unresolved in the matter is what would happen to EMC employees, including the nearly 10,000 in Massachusetts. The question of jobs comes as VMware has announced it will lay off 800 employees and a new chief financial officer will come in. The layoffs are expected to cost the company $55-$65 million in the first half of 2016 but will result in savings moving forward. Saint Vincent hires new COO Saint Vincent Hospital will have a new chief operating officer beginning March 7 when Ava Jo Collins will take over the position. Collins comes to Worcester from a 20-year career at Ochsner Health Systems in New Orleans, the largest not-for-profit healthcare system in Louisiana, said Steve MacLauchlan, CEO of Saint Vincent Hospital. Collins most recent position at Ochsner was COO and vice president of operations. Collins earned her bachelor's of science in medical technology from Northeast Louisiana University and a master's degree in healthcare administra- tion from Tulane University. Saint Vincent's former COO Deborah Bitsoli is now the president of Morton Hospital in Taunton, which is part of the Steward Health Care System. Staples sells $550M in bid for acquisition In a move to appease the Federal Trade Commission and get approval for the acquisition of Office Depot by Staples, the companies announced the sale of $550 million in commercial contracts. The two companies have agreed to sell the contracts to Essendant for approxi- mately $22.5 million in a move the com- panies said will strengthen Essendant as a national office supply competitor. The FTC has opposed Staples' acquisition of Office Depot citing competition con- cerns. Staples is currently in litigation with the FTC to allow the acquisition. The commercial business and assets being divested relate primarily to accounts held by Staples and Office Depot acting as wholesalers to minority and female-owned office supply resellers. The acquisition of this business and relat- ed assets will significantly increase Essendant's presence with large corporate customers, improve its capabilities, and further enable it to collaborate with inde- pendent dealers to more effectively com- pete for national business, according to a release from Staples and Office Depot. UMass saves $25M in refinancing move UMass Memorial Health Care issued bonds that will save the organization just shy of $25 million dollars in a refinancing move officials say could not have been carried out at a more perfect time. UMass Memorial issued its bonds to refinance approximately $140 million dollars of debt on Jan. 20 in the shadow of a volatile stock market. However, it was not only the volatility in the market and investors looking for a more stable investment. The bonds hap- pened to be offered on a day where inves- tors had money to spend. The organiza- tion's recent return to investment-grade status by organizations such as Fitch Ratings contributed to a large demands for the bonds. Speaking to this demand is when the bonds were issued, they were oversubscribed at a ratio of 7 to 1. The savings that UMass Memorial officials initially estimated at a floor of REGIONAL BRIEFS Verbatim "These efforts, and our legislative pro- posal to bring addi- tional hydroelectricity and other renewable resources into the region, will ensure we meet our ambi- tious greenhouse gas emission reduc- tion targets while also creating a stron- ger economy for the commonwealth." Gov. Charlie Baker, on an accord to unite a group of governors in implementing clean energy solutions >> "We're really look- ing to create much more accountable care. If we do it right, we'll actually help to manage costs." Marylou Sudders, Health and Human Services secretary, on changes at MassHealth >> "Bottom line, the state economy is doing well despite the global setting of slowing economic growth and rising uncertainty. Still, there are issues that demand attention if the state's long- run economic health is to be secured." Robert Nakosteen, MassBenchmarks execu- tive editor, on investments the state needs to make in education and infrastructure >> In Review CENTRALMASS >> Continued on next page Downtown Worcester development moving along BY SAM BONACCI Worcester Business Journal Digital Editor

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