The Worcester City Council narrowly approved a tax-increment exemption for the Washington, D.C.-based Menkiti Group’s proposed $27-million redevelopment of a downtown Worcester office building into apartments. The council voted 6-4 on March 10 to approve the TIE for 401-409 Main St., which was first presented in January. The vote came after a Feb. 17 meeting […]
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The Worcester City Council narrowly approved a tax-increment exemption for the Washington, D.C.-based Menkiti Group’s proposed $27-million redevelopment of a downtown Worcester office building into apartments.
The council voted 6-4 on March 10 to approve the TIE for 401-409 Main St., which was first presented in January.
The vote came after a Feb. 17 meeting of the council’s Standing Committee on Economic Development, where members of the North Atlantic States Carpenters Union – Local 336 and other members of the public expressed concerns about the tax break, citing alleged wage theft by subcontractors used by Menkiti.
The carpenters union has long expressed concerns about Menkiti’s business practices and City support of its Downtown Worcester projects.
During the March 10 council discussion, Councilor-at-Large Morris Bergman dismissed the complaints as allegations, while Councilor-at-Large Khrystian King said discussions with the state attorney general’s office led him to believe the claims were serious.
In the end, Bergman joined Councilor-at-Large Kathleen Toomey; Mayor and Councilor-at-Large Joseph Petty; Councilor-at-Large Satya Mitra; District 3 Councilor John Fresolo; and District 5 Councilor José Rivera in supporting the tax break.
Councilor-at-Large Khrystian King, District 2 Councilor Robert Bilotta, Councilor-at-Large Gary Rosen and District 4 Councilor Luis Ojeda voted against the measure. District 1 Councilor Tony Economou was absent.
Now that the project has received a TIE from the City, it will be eligible for state tax credits from the Executive Office of Housing and Livable Communities’ Housing Development Incentive Program.
The 10-year City tax break will see an average annual exemption of 35% of the incremental increase in the property’s assessed value resulting from improvements made to the site as part of redevelopment, according to a letter from City Manager Eric Batista to the council included in the Jan. 27 meeting packet.
Menkiti Group plans to renovate the building’s upper office floors into 48 apartments, with five of those apartments being restricted to those with income at or below 60% of the area median.
The firm hopes to begin construction early this year, according to an Aug. 5 letter from Menkiti Group to Batista. Menkiti Group did not respond to an email from WBJ seeking an update on the project’s timeline or the expected completion date.
The project has an expected price tag of at least $27 million.
The property received a 2026 assessment value of $589,500, according to City of Worcester property records. Menkiti purchased the site for $600,000 in 2017.
Eric Casey is the managing editor at Worcester Business Journal, who primarily covers the real estate and banking & finance industries.
