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Several members of the Worcester City Council speaking at the body's Tuesday meeting had harsh words for Madison Properties, a key developer in the City of Worcester’s plan to revitalize the Canal District and help pay the cost of the $160-million Polar Park, after a letter from City Manager Eric Batista revealed the Boston-based developer had terminated a tax-break deal in the district.
The discussion, spawned by the inclusion of Batista’s letter in the council agenda revealing a $792,000 shortfall in the fund that supposed to cover the annual bond payments on the stadium, saw several council members criticize Madison for failing to meet obligations with the City and not notifying officials of its intent to terminate the tax-increment-financing agreement relating to the so-called Left Field Building.
Candy Mero-Carlson, District 2 city councilor and head of the council’s Economic Development Committee, said the City’s redevelopment authority should consider taking the Left Field parcel by eminent domain.
“Given all the information we have received over the last several years, we have continued to struggle on many different levels with this developer,” Mero-Carlson said during the meeting of Madison Properties and the Left Field project. “It’s unfortunate to say, but I think at this point that we as a City should think long and hard about eminent domain on this piece of property. They’ve put us in a bad place. I think we should look at any and all options with this developer.”
Madison Properties President Denis Dowdle did not respond to a request for comment from WBJ. Madison Properties is scheduled to appear before the Worcester Redevelopment Authority on Thursday morning to discuss its efforts as part of the Downtown Urban Revitalization Plan.
Calling the behavior of Madison Properties a slap in the face to the City, District 5 Councilor Etel Haxhiaj called for more guardrails to prevent this behavior from Madison or others in the future.
“Our community isn’t an experimental ground for any developers to play with our residents or make empty promises to our residents,” Haxhiaj said.
Worcester Mayor Joesph Petty expressed disappointment about several key Madison Properties parcels near the ballpark still being undeveloped.
“We’ve done a lot of hard work on this over the last five years. Those parcels have been sitting there for the last five years. I know we have a number of developers in the city of Worcester who are looking for properties to develop,” Petty said.
Petty later asked Batista if the ballpark project was still on pace to pay for itself, a key promise of the pitch to construct the $160-million stadium.
“It just plays into a narrative that the ballpark is not something we should have done,” Petty said of the news of the shortfall and Madison backing out of the Left Field Building project. “But we should have done it. It will pay for itself over the next 30 year period. Is that correct?”
Batista said the City’s prior analysis has been that the ballpark would pay for itself over the 30-year lease the Worcester Red Sox have at the facility, but the current year was foreseen as one of the tightest in terms of finances as projects meant to fund the ballpark project continue to come online.
“We are in this position here, and we look forward to moving past this position in the years to come,” he said.
In response to a question from Petty over Madison Properties’ communication methods, Chief Development Officer Peter Dunn said he was disappointed with the fact the development firm’s decision was communicated via a letter from its attorney.
In response to the suggestion of eminent domain at the Left Field Building, Dunn said Madison Properties would legally have to be compensated for the seizure, as it would occur under the authority of the redevelopment authority and because the property would not be utilized for a government-related use.
Councilor-at-Large Khrystian King said he had tried to have Dowdle speak in the front of the Economic Development Committee during his time as chair and prior to Mero-Carlson’s chairpersonship, but that did not happen. He encouraged the consideration of legal action against Madison from the City.
“We have to be able to address and remedy violations of the land disposition and development agreement, in addition to the TIF,” said King, adding he was hesitant to have the City seize private land but the situation necessitated considering it.
Eric Casey is the managing editor at Worcester Business Journal, who primarily covers the manufacturing and real estate industries.
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Worcester Business Journal presents a special commemorative edition celebrating the 300th anniversary of the city of Worcester. This landmark publication covers the city and region’s rich history of growth and innovation.
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