The Other Worcester Development | A Q&A with David Rodriguez-Pinzon, developer of a key parcel in downtown Worcester
Photo/Christina H. Davis
David Rodriguez-Pinzon, founder and CEO of the Economic Development Finance Corp.
While much attention has been paid to the languishing $500 million CitySquare project in Worcester, there is one significant downtown mixed-use development that's actually underway. That project is the $21 million Hadley-Burwick project, which when completed, should transform an entire city block on Main Street into a mix of street-level retail and workforce housing. The developer behind the project is David Rodriguez-Pinzon, founder and CEO of the Economic Development Finance Corp. (EDFC) of Dedham. Here, he talks about the status of the project and the new equity fund the firm has launched in reaction to the credit crisis.
EDFC sounds suspiciously like a state agency. What's the story behind the name?
We do sound perhaps like one of the alphabet soup state agencies and quasi-publics, but we're a for-profit. Our focus has a lot in common with the state agencies in that EDFC's corporate goal is to work closely with cities and towns to identify properties that are located within their special districts, such as here in Worcester.
How did you find the Hadley-Burwick building?
We'd been in touch with the city since 2004 and they had identified this particular site as the portal for the redevelopment of their arts district. We acquired the former Burwick furniture building and then we decided to acquire the balance of the city block, which includes the former Caravan Coffee building and the former Boys and Girls Club building.
How is the financing for the project arranged?
We acquired the property with private funds. The public funding includes a variety of funding sources from the city and state, including three types of tax credits. There's approximately $12.7 million in tax credit funding for the project that we are guaranteeing.
What is the status of the project?
Presently, the Hadley project is in full construction mode. That will provide 45 rental units and 5,000 square feet of commercial space on the first floor. The construction period is expected to end in December/January at which time we'll begin to occupy the building with residents. Beyond the Hadley project, the scope includes 60 condo units behind the Hadley, 20 units inside the Boys & Girls club as an historic rehab and an additional 55 units that will be going into the new Caravan building, which is now next to the Hadley.
How has the credit crunch impacted you?
I think every developer has been impacted because of the constraints of the credit market after last August. We did convert 95 percent of our planned condominium projects into rental projects because of the shift in underwriting in the bank and credit markets. EDFC, in order to address the credit crunch, has also created an equity fund of $50 million that can grow into $100 million. It just went to market two weeks ago and the fund will liberate EDFC from the ups and downs of Wall Street and from the traditional bank sector.
Do you have an eye on CitySquare? Is that project getting off the ground key to your project?
No it's not key to what we're doing, but it's certainly complementary, given the fact the core of the city is between our projects. I see them as two economic engines that are autonomous, but are complementary in the end.
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