Boston Capital seeks approval for $19.6M bond for Table Talk Lofts
Photo | Worcester Planning Board
The first phase of the 400-unit affordable housing complex on the former site of Table Talk Pies.
As demolition of the former Table Talk Pies factory in Worcester continues, Boston Capital Development LLC is seeking approval to issue a tax-exempt bond worth up to $19.6 million to help fund construction of the first phase of its Table Talk Lofts housing project in Kelley Square.
A hearing will be held on Aug. 9 by MassDevelopment to discuss the final approval of the bond. The bond made it through initial action vote in 2021, enabling the developer to pursue a bank agreement.
If approved by MassDevelopment, Boston-based Eastern Bank will purchase the bond and will not be charged tax on the interest.
MassDevelopment partners with developers of residential projects with affordable components to issue tax-exempt bonds to fund the projects. The bonds are then attractive to investors, often banks, because they do not have to pay tax on the interest they receive from the bond.
Tax-exempt bonds are only one tool available to developers of affordable units.
Boston Capital is applying for state Low Income Housing Tax Credits. These are to be sold to the Royal Bank of Canada in Toronto to raise capital for the project.
Table Talk Lofts is in phase 1 of a proposed six-building mixed-use development at the former site of the Table Talk Pies factory. When complete all phases of the project will offer 400 new units of housing.
The property was sold in January for $4.55 million in a deal brokered by NAI Glickman Kovago & Jacobs of Worcester.
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