Kelley Square development slated for $838K tax break
Grant Welker
Allen Fletcher plans to build a mixed-use development on this vacant lot in Kelley Square.
Worcester’s city manager is recommending a 10-year, $838,000 tax break for a planned mixed-use development in Kelley Square.
The 70,000-square-foot project, which will consist of 48 market-rate apartments and a 20,000-square-foot public market and restaurant, will increase the total assessed value of its site from $390,700 to $8,529,000, according to a letter from City Manager Ed Augustus to the city council. The current use of the site is an empty dirt lot primarily used as unofficial parking for Crompton Place.
The proposed savings are equivalent to a 70-percent real estate tax exemption on the residential portion of the project.
During the 10-year period, the city is projected to receive $1,455,140 in commercial and residential tax revenue, which is about $1,311,000 more than what it would receive if the properties remained as is.
The project, located at 152 Green St. and 220 Harding St. in Kelley Square, is being developed by Allen Fletcher. It will cost an estimated $21.3 million, including about $4 million for acquisition, site work and soft costs and about $17.3 million for construction, according to Michael Traynor, the city’s chief development officer.
It’s eligible for a tax break because it’s in a designated Urban Density Residential District, which means that it can receive up to an 80-percent real estate tax exemption for up to 20 years. However, in this case, the city proposed a 70-percent exemption over 10 years and Fletcher agreed.
The proposal is scheduled to go before the city council on Tuesday night.
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