🔒Menkiti receives pushback over tax break request for 48-apartment project in Worcester

The Worcester City Council debated on Tuesday giving a tax break to a developer interested in adding to Downtown’s housing stock, pushing a decision on the request to a later meeting. The Menkiti Group is seeking to construct 48 apartments on the upper floors of the historic Clark Block, located at 401- 409 Main St. The Washington D.C.-based firm requested the council authorize the project as a certified under the state’s Housing Development Incentive Program, a move that would unlock state tax credits, and to approve a local tax increment exemption agreement. The TIE would be a 10-year agreement which would see Menkiti Group save $613,211 in taxes to be paid to the City of Worcester, according to documents included in the council meeting agenda packet. The project would involve 11 studio apartments, 25 one-bedroom apartments, and seven two-bedroom apartments, with five of the units being affordable and the rest market rate. It would bring new life into a building first constructed in 1854, which has been largely underutilized since the COVID-19 pandemic led to a decline in use of the office space in the building’s upper floors, according to a letter from Worcester Chief Development Officer Peter Dunn included in the meeting packet. Menkiti Group has invested $70 million in Downtown so far, according to a letter by the firm. The developer finished its Chatham Loft Projects at 6 Chatham St. in late 2021, bringing 24 luxury apartments to Downtown, and is working to complete a renovation of the Kane Building at 204 Main St., a project involving retail space and 20 apartments. Menkiti Group’s work in Downtown has not been without controversy, as the firm was fined $5,000 after being found to be in violation of Worcester’s responsible development ordinance in relation to a subcontractor involved in the 204 Main St. project, which also involved a TIE agreement. Wareham-based Barber Drywall, one of the subcontractors on the project, was issued five civil citations from the Fair Labor Standards Division in September 2024 and June 2025 for work on another project, according to MassLive. Worcester’s RDO requires developers to ensure that all subcontractors working on the project have not been found in violation of any law applicable to their contracting businesses within the prior three years. Dunn’s letter said Menkiti Group has reaffirmed its commitment to the RDO and was not aware of the 2024 citations prior to the subcontractor’s work on the project. Barber Drywall is appealing the citations from 2025 but did not appeal the citation from 2024. WBJ has reached out to Menkiti Group for any additional comments on the project and RDO violation. Worcester-based North Atlantic States Carpenters Union - Local 336 has been vocal in its opposition to Menkiti Group receiving additional tax breaks from the City, citing the company’s violation of the RDO. The group held a protest in front of City Hall on Monday, asking the city council to reject the TIE proposal. On Tuesday, Councilor-at-Large Krystian King stood in opposition to the TIE for Menkiti Group, saying he had been attempting to meet with the firm for a year but had yet to hear back. Citing the citations in front of him, King said one of the citations against Barber Drywall was for failing to pay prevailing wages for work performed and failure to submit payroll records. Dunn reiterated the violations Menkiti Group paid the fine for came from a project worked on by the subcontractor outside of Worcester. “We have no evidence or claims or concerns about any type of payment of wages on any Menkiti Group project in the city of Worcester,” Dunn said in the City Council meeting. The Menkiti Group did not have a representative at the meeting on Tuesday. Councilor-at-Large Moe Bergman said the questions about Menkiti Group could be answered in committee meetings, arguing the proposal should be advanced to subcommittee in order to find resolutions to concerns. “I’ve heard some people saying wage theft occurred in Worcester, and I hear Mr. Dunn saying wage theft did not occur in Worcester,” Bergman said. Bergman is now chair of the council’s Economic Development committee, joined by Vice-Chairperson and Councilor-at-Large Kathleen Toomey and newly elected Councilor-at-Large Satya Mitra. Councilors Gary Rosen and Robert Bilotta expressed concerns about the proposed tax break. Dunn said the project may not be financially viable without the tax break. King moved to table the item, meaning it will be held until a vote at the next council meeting to move it to the Economic Development committee. Eric Casey is the managing editor at Worcester Business Journal, who primarily covers the real estate and banking & finance industries.