A planned $21-million residential and public market development on Kelley Square in Worcester has been recommended for a tax break to save developer Allen Fletcher an estimated $838,000 over 10 years.
The City Council’s economic development committee voted unanimously Tuesday night to recommend the full council approve the deal at its Sept. 5 meeting.
The project, located between Crompton Place and the congested Kelley Square intersection, is proposed to include 48 market-rate apartments and a 20,000-square-foot public market and restaurant.
The tax break is estimated by the city to save Fletcher $838,000 in residential tax bills in the next decade, a 70-percent discount. The city will still earn more in tax revenue with a higher-valued property than the current surface parking lot. The city estimates the assessed value will rise from $390,700 to more than $8.5 million.
