🔒Q&A with the city manager: Balancing Worcester’s development

As Worcester navigates a wave of housing construction, commercial expansion, and shifting economic conditions, City Manager Eric Batista has focused on striking a balance: encouraging development while ensuring projects benefit residents and strengthen Worcester’s long-term economic base.

What development projects are you most excited about?

On the commercial side, GreenTech Park is probably the most exciting project for us right now. It’s not very often you have 50 acres of land ready for development. We’re building the streets, putting in the infrastructure, and there’s one potential business already very close to locating there. Commercial development is really important to me right now, especially around life sciences and biomanufacturing. We need to find ways to encourage those industries to come to Worcester because we need jobs. Worcester cannot become a bedroom community. On the residential side, we have several downtown projects moving forward, conversations continuing in the ballpark district, and SMC Management’s apartments are under construction at the old Table Talk Pie property. The City Council approved a tax-increment financing incentive for GFI Partners’ second residential project in the Canal District, which was important for us.

Average rents in Worcester have fallen for two consecutive quarters. Is the housing affordability crisis easing?

Rent dropping is connected to several things happening at once, including inflation and broader economic pressures, but also the amount of housing we’ve been able to develop in the city. In some ways, it’s a positive sign. It helps stabilize rents, creates more competition, and gives people more options. At the same time, we’re watching it closely because developers are watching it closely. Those rent trends directly affect whether projects pencil out financially. Developers building housing are constantly looking at those numbers and adjusting their pro formas accordingly.

The City appeared to be moving toward pausing its specialized stretch codes but decided to continue on with the heavier eco-friendly enforcement. What happened there?

We took time to review the policies we had in place and initially felt there might be an opportunity to opt out. After the council discussion, our solicitor dug deeper into the regulations and reviewed state law. She reached out to both the Attorney General’s Office and the state Department of Energy Resources to confirm whether the three-year provision applied to communities that had opted into the specialized stretch code. Once we confirmed that it did apply, we realized Worcester would need to remain in the program for at least three years before opting out. As soon as we had that information, we wanted to communicate it quickly. I take responsibility for making sure we cross every t and dot every i before bringing something to the council. Everyone involved learned from the process. Going forward, councilors and departments alike will make sure they’re doing their due diligence before decisions like that move forward.

Has Worcester found the right balance between encouraging development and maximizing community benefits?

We try very hard to strike that balance. We want economic growth because it allows us to generate the tax levy necessary to provide services to residents. At the same time, there are pressure points in the market impacting whether developers can realistically come into Worcester and build projects. Sometimes people see a tax incentive and get frustrated. They see a developer receiving a 50% tax break and ask why the City would do that. You have to look at the bigger picture. If an empty lot is generating $4,000 or $5,000 a year in taxes and then becomes a developed property generating $100,000 annually, that’s still a significant gain for the City even if it’s not the theoretical maximum without the tax incentive.

How does the Affordable Housing Trust Fund play in Worcester’s housing strategy?

The Affordable Housing Trust Fund has been a huge success for the city. It has helped drive hundreds of millions of dollars in investment and supported the creation of a significant number of housing units. The Community Preservation Act continues feeding the fund, along with payments-in-lieu from developers under inclusionary zoning requirements. When developers choose to pay into the fund instead of creating affordable units on-site, those payments can range from several hundred thousand dollars to a couple million dollars depending on the size of the project. That money can then be used by other developers to build affordable housing elsewhere in the city. Housing is not something solved by one policy or one tool. We need multiple tools in the toolbox.

What are the business-related priorities in your $1-billion City budget proposal for next fiscal year?

One issue we consistently hear from businesses is frustration around inspection timelines, especially gas and electrical inspections tied to opening restaurants and businesses. Adding inspectors should help speed that process up so businesses can open faster. We also added a position in economic development specifically focused on supporting small businesses. Small business owners often just need somebody to call: Someone who can help navigate issues, provide information about grants, or explain what’s happening in their neighborhood. The small business community is hurting like everybody else, and we want to continue reducing unnecessary regulatory challenges wherever we can.

Union Station just passed the 25th anniversary of its reconstruction. What’s next for that area?

Twenty-five years ago, the community rallied together to save Union Station, and today it’s one of the most recognizable buildings in Worcester. Our focus now is continuing to activate the space. Most recently, we opened the food hub there. On the transit side, one of the biggest limitations has been the signaling system. The MBTA has now invested $20 million into upgrades to allow for greater train frequency. Ridership has continued increasing, which shows not only that Worcester residents want to travel east, but that more people from Greater Boston are coming into Worcester to work. That movement helps drive the local economy. This interview was conducted and edited for length and clarity by WBJ Managing Editor Eric Casey.