After concerns over alleged subcontractor wage theft, WRA holds off on recommendation for Denholm Building developer
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WRA's recommendation of a proposal for the redevelopment of Worcester's Denholm Building was stalled at the July 13 meeting of the board.
The shorthanded Worcester Redevelopment Authority paused plans to recommend a developer out of the two plans proposed for the Denholm Building, after a WRA member raised concerns over allegations of subcontractor wage theft tied to the preferred proposal.
Worcester Chief Development Officer Peter Dunn revealed which of two developers his office recommended to redevelop the Denholm Building at 484-500 Main St. at the WRA meeting on July 13, but WRA members raised concerns about the general contractor chosen for the job.
Dunn recommended the Washington D.C. developer The Menkiti Group’s more ambitious plan, which features a 10-story, steel-construction building, 10,000 square feet of ground-level retail space, and 233 apartments, after a review process by a committee of City Executive Office of Economic Development staff.
The overall design and scope of the project edged Menkiti’s proposal past the six-story wood-framed proposal from Stamford, Conn.-based RMS Companies, despite Menkiti’s project being more financially risky in a tough economic environment for building, Dunn said.
Committee members weighed the advantages of diversifying ownership of buildings in Downtown Worcester against having a landlord who controls multiple properties, as Menkiti does, and can coordinate potential commercial tenant opportunities in an effort to fill the large number of vacant downtown storefronts.
The Menkiti Group owns neighboring 526 Main St. and 554 Main St., as well as other downtown residential and commercial properties. The Denholm project would be RMS’ first in the city, if the Connecticut firm is selected.
The July 13 meeting took a turn when WRA member David Minasian, who is the regional manager for the North Atlantic States Regional Council of Carpenters Local #336 Worcester, brought up concerns of alleged past wage theft by subcontractors of Maryland-based The Bozzuto Group’s construction division, which Menkiti selected as the general contractor for the project.
Menkiti Group Vice President of Development Mark Rengel attempted to convince the WRA of his confidence in Bozzuto as a general contractor, saying the company was never implicated in any of the allegations and faced no legal action.
WRA member and Fallon Health President and CEO Richard Burke said he shared Minasian’s concerns and was uncomfortable moving forward with the recommendation with one member of the short-handed board having significant reservations. WRA Chair Michael Angelini removed himself from the decision citing a conflict of interest, and the board is awaiting the city manager to appoint an additional member to the board with five seats.
In the end, the board voted to hold the recommendation pending a conversation with Bozzuto to address the concerns over labor practices.
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The City suffers from being naive when it comes to dealing with developers
This company appears to be recommended by an employee of a local college, they have only been around for 20 years or so, and their portfolio doesn't seem too extensive, in regards to these types of projects, from what I can find
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