On the menu: revitalization
By margaret leroux
Supporters of downtown revitalization plans for Worcester and Fitchburg are cheering the opening of three new restaurants and plans for a fourth. In Worcester, the former GAR building on Pearl Street emerged from years of neglect as a fine dining establishment, TiNovo, with chef-owner Mitch Terricciano at the helm. A few blocks over on Green Street, Block 5, a sophisticated urban bistro owned by a partnership of former employees of Sole Proprietor and One Eleven Chop House, seeks to be a catalyst for growth and development of the Canal District.
In Fitchburg, developer Christopher Iosua’s plans for Café Destare, a 3,500 sq. ft. European-style café on the ground floor of the historic Dickinson building were greeted enthusiastically by investors who snapped up all the shares in the first phase of stock offerings. At the other end of Main Street, a pair of investment bankers recently reopened the venerable but worn Boulder CaféArduous quest
In Worcester, Terricciano faced tough challenges. He closed his successful Tiano’s restaurant on Grove St. in July 2004, planning to reopen within months after renovating the GAR building. Delays in funding stretched the process to 18 months. In the spring of 2005, Digital Federal Credit Union put together a $2 million funding package through the Small Business Administration 504 Program.
Stephen Mackowitz, vp, commercial lending for DCU, says that Terricciano’s plans "made sense; we think it is a good loan; he has a great reputation and we’re looking to expand our Worcester market."
Terricciano closed on the loan in April and immediately began removing debris from the building. Four months and two days later, TiNovo opened in time for the holidays. "Not a pace I’d recommend to anyone," he says.
Terricciano’s renovation restored the building’s Victorian-era splendor, with oak woodwork and crystal chandeliers. Full-length mirrors and delicately tiled fireplaces give warmth to the high-ceiling dining rooms. Walls are painted a muted ochre; interior design was by Nancy Laurienzo of TriMark USA.
Though optimistic about TiNovo’s downtown location, Terricciano says it wasn’t a deciding factor in his plans.
"I didn’t choose the building for its location, I made my decision on the basis of the building," he says.
On Green Street just off Kelley Square the trendy new Block 5 bistro occupies the building that housed the original Sir Morgan’s Cove. Michael Covino, majority owner of Block 5, says the partners took "a calculated risk. We wanted to see if we could be a catalyst for the growth of the street."
With the inherent risk of new restaurant business in mind — statistics on failure rates range from 60 percent to 90 percent — the partners researched properties all over town.
"I wanted to own rather than lease," Covino says. " I learned from my mentors, Robb and Madeline Ahlquist, the smartest thing is to make a real estate investment."
Covino credits his experience working at the Ahlquists’ restaurants with teaching him operational skills. "It was a tough decision to leave and go out on my own, but I had this dream and didn’t want to realize years from now that I could have or should have," he says.
Three colleagues joined Covino: Steve Champagne, Michael DesRosiers, and Kevin Ludy, now minority shareholders in the S corporation established for Block 5. Champagne is also executive chef.
Financing was difficult. "We had some money saved and equity in our home, but restaurants are difficult businesses," Covino says. "We went down the rejection route, but found a supporter in Commonwealth National Bank."
Block 5 also used the same contractor, R.L.Whipple Co. and architect, Jordan O’Connor & Associates, Petersham, a big plus for the bank. "We needed to be comfortable with not only his plan but also whom he was using for construction and design," says Commonwealth commercial lender Carl Bindoo.
"It was almost surreal how well it all fit together," Covino says. "We closed on the building in April and opened the restaurant in September."
The bank was also impressed that Covino "did significant market research and skillfully segmented the market."
On a weekend evenings there’s a crowd and a party ambience at Block 5. The bar is packed and so is the cool blue and warm green dining room, lined on one wall by a cushy, suede banquette. The well-trained staff isn’t harried; diners are warmly welcomed when they arrive and bid a pleasant good evening when they leave.
"Here in Worcester, we make or break our livelihood on repeat business," Covino says. "If you do a good job, the city will support you."
Summer’s the target
When it opens in mid-summer, Café Destare, on the ground floor of the new Fitchburg Business Center housed in the Dickinson building, "will be the most visible sign of the Renaissance of downtown Fitchburg," says Christopher Iosua, president and CEO of Trident Properties, developer of the Center.
Iosua is partnering with Lance Dellogono, owner of the former Mocha Alley. He’s expanding on that restaurant’s European cafe theme for the new establishment with an investment of $1 million funded by private stock offerings.
Most restaurants are over-leveraged when they open, according to Iosua.
Iosua’s notes that his acquisition and development of the Dickinson building was funded by equity money, adding, "there’s no debt on this building."
Shareholders’ return on investment in Café Destare, based on their participation, is very attractive," he adds. "They’ll get fixed monthly dividends and VIP treatment at the Café."
Café Destare is also offering memberships for those who want to be in on the development at a lower financial level of participation.
"There’s a lot of interest in the redevelopment of Fitchburg," Iosua says, "and these partnerships provide a way for people to be a part of it."
At the other end of Fitchburg’s Main Street, two young investment bankers are doubling as restaurateurs, breathing new life into an old watering hole.
Boulder Café has been in Fitchburg since 1934. The former owner, Christo Bicoules, "was very aware he was passing on not just a restaurant, but a legacy," says Christopher Bujold, managing partner and manager of the Fitchburg branch of Lendia mortgage bank. Bujold opened the Lendia office next door to the Boulder Café.
Ide says it took three years to negotiate the purchase of the business.
The Boulder Café is at Main and Putnam Streets, on the upper common populated by the bank, the post office and a few shops, including a hair salon, and an art gallery. "We won’t be competing with Café Destare," Bujold says. "Downtown Fitchburg really has two different districts."
The pair restored the bar area of the restaurant and say that a limited pub menu will soon be available. The kitchen reconstruction is still underway. "We’re taking small steps," Bujold says.
Margaret Leroux is a contributing writer. She can be reached at
mleroux@charter.net
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