Worcester Business Journal

www.wbjournal.com May 9, 2016 • Worcester Business Journal 29 A big stick E D I T O R I A L The Worcester Business Journal welcomes letters to the editor and commentary submissions. Please send submissions to Brad Kane, editor, at bkane@wbjournal.com. W orcester has blossomed into a bustling Gateway City, home to nationally recognized colleges and universities, corporations, a robust healthcare and biotechnology industry, and significant private and public investment. This success is a result of our efforts as a diverse community of teachers, caregivers, businessmen and women. It has not been easy. While the hard work and contributions of area residents have made the Heart of the Commonwealth what it is today, we are still burdened by misguided decisions of the past. An example fresh in our minds is the environmental cleanup on Quinsigamond Avenue. The site, which will serve as the future location of a new Worcester Regional Transit Authority (WRTA) facility, was once a manufactured gas plant from the mid-1800s to 1969. In 2014, the WRTA purchased the land from Eversource Energy to develop a new maintenance facility. The key issue is the WRTA relied on information provided by Eversource about existing contamination on the land prior to purchase, and while Eversource disclosed contamination on the property, the extent to which the property was contaminated was grossly underestimated. What we now know is this site played host to decades of environmental degradation, neglect and inadequate remedies that enabled contamination to fester. While the easy thing to do may have been to let the contamination frenzy continue, it was clear to us that passing this burden to the next generation of Worcester residents would have been an irresponsible decision. Approximately $16 million in state funding was authorized and expended to decontaminate the property in 2014. The more recent underground discovery of coal tar deposits and other hazards led to additional cleanup expenses estimated at more than $3 million. Recognizing the negative environmental implications of the tainted property and the importance of ensuring the WRTA can serve the needs of 38 communities, we took immediate action to secure the funding necessary for detoxification of the site. We understood this buried burden should not be the taxpayers' obligation and requested the Department of Environmental Protection assign proper responsibility to Eversource. This effort, which yielded a positive response by DEP, will assist with recouping millions of the taxpayer dollars expended on this decontamination. The history and ongoing detoxification of this property illustrates how our decisions have a long- lasting impact. Nevertheless, these types of projects are a step in the right direction towards improving our commitment to the importance of health, safety and effective environmental management. Corporations should be part of our communities and help us thrive. We are committed to make sure they do. n State Sen. Michael O. Moore represents the Second Worcester District, and State Rep. Daniel M. Donahue represents the 16th Worcester District. Eversource should cover WRTA cleanup BY MICHAEL O. MOORE & DANIEL M. DONAHUE Special to the Worcester Business Journal V I E W P O I N T Michael O. Moore In an effort to accelerate and manage the positive momentum of its multi-pronged downtown development, the city and its no longer moribund WRA is eyeing 118 acres and 24 properties for its new Urban Redevelopment Plan. The plan is to roll out over a rather extensive 20-year timeline. While city officials say they'll first try to coax building owners to invest in their own properties, the big stick of eminent domain is in the tool box. How long will it take for the city to find the funds, and will the planned $100 million in estimated acquisition costs turn into a figure several times the total? Clearly this is a different kind of plan, and there is no requirement to assemble a single, large urban campus, but to catalyze investment on a p r o p e r t y - t o - p r o p e r t y , smaller scale level. Getting the math wrong again on eminent domain acquisition costs would be a real nightmare. Prop e r t y ow n e rs , especially those that don't want to sell, will fight tooth and nail for all the money they can get. Any eminent domain acquisition efforts need to be managed in a much more accountable fashion – the city can't afford to get stuck with a big, budget-blowing bill. While 24 properties have been earmarked for possible acquisition, the hope is that many of their owners will fall into line with the city's vision and find it a win-win to renovate or sell to another private developer who sees the opportunity in investing. WRA CEO Michael Traynor and City Manager Edward Augustus Jr. have said the important step here is to get the current property owners in line with the long-term goals. At least one property owner – Joseph Donovan, vice president of Quincy real estate development firm MG2, which owns the Paris Cinema – said his company is moving forward with plans to demolish the run-down theater and put in 530 apartments and 60,000 square feet of retail on that parcel and the surrounding properties. Utilizing the Redevelopment Authority's set of tools to spur new investment in key areas of the downtown is timely. The momentum from significant public and private development is palpable. New office space, housing, multiple hotel developments, college-campus expansions and a growing entertainment district all speak to the city's bright future. A strong vision for how different sections of the city will grow and develop is a positive sign for developers looking for a strong public partner. However, eminent domain feels like a tool of the past, when highways blazed a trail through urban neighborhoods and big brother ruled the day. Those days have been in the rearview mirror for some time now. Today, when the government seizes somebody's property, it feels un-American. Eminent domain should be surgically applied only to the top priority properties and not spread across the whole district as an active threat. Has the city picked the three to five most leveraged, underinvested properties where there is little evidence that the current owner will be the one to invest and renovate or expand? It would be more effective if that list were created and made public, and the first phase of the project had a more targeted focus. For those who have spent several decades working or living in Worcester, feeling the stir of any long- promised momentum has been like waiting for Godot. However, today the momentum is real, the cranes are operating, the investments over many years are bearing fruit. The current plan by the city and WRA means our government is setting up to do its part to keep that momentum going. How well they manage that opportunity is still to be determined. The mistakes of the past are clear, and navigating around those icebergs is an obvious priority. Carrying the big stick of eminent domain is potent but must be only used in a very targeted manner. While the Urban Redevelopment Plan may have a 20-year timetable, it should be broken down into smaller, achievable goals with the top priority parcels identified upfront. Accountability is important if public funds are to spur further private development, and the creation of a three-year plan with timetables and action steps will create important benchmarks. n B ack in the mid-1990s, when Worcester city officials were undertaking the Medical City Urban Renewal Project that eventually became the St. Vincent Hospital campus, the Worcester Redevelopment Authority identified 24.5 acres of downtown properties that needed to be assembled to fulfill their vision. They figured it would take $11 million to buy out the various property owners. They figured wrong. After several disputed eminent domain acquisition battles wound their way through the court system, the WRA, in the end, shelled out $31 million in acquisition costs. In a process that was highly flawed, there were many lessons to learn. Has the city learned them? Any eminent domain acquisition efforts need to be managed in a much more accountable fashion – the city can't afford to get stuck with a big, budget- blowing bill. Daniel M. Donahue

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