Worcester Leaders Laud Work Of Departing Officials

Michael O'Brien has “set the table perfectly,” a local business leader says.

Tim McGourthy wins points for committing to action and his straightforward approach.

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Business and educational leaders in and around Worcester hope the city’s new manager and economic development chief will continue the work begun by their predecessors, both of whom will be leaving City Hall within the next two months.

Key people outside city government hope the transition after the departures of City Manager Michael O’Brien and Chief Development Officer Timothy McGourthy won’t slow ongoing efforts to develop downtown, control costs and work harmoniously with diverse stakeholders.

“Mike O’Brien has set the table perfectly, and the next (city manager) has the opportunity to be a hero,” said Michael Angelini, chairman of the law firm Bowditch and Dewey.

O’Brien earned high marks from the private sector for streamlining the permitting process, rehabbing roads and sidewalks and aggressively pursuing firms considering a move to Worcester.

“Worcester has more projects going on now than at anytime I can remember,” said John Merrill, president and CEO of Fidelity Bank. “I attribute a lot of that to Michael’s commitment.”

Merrill lauded O’Brien for making time to talk with companies who were thinking about relocating to Worcester.

O’Brien said that he will be leaving Jan. 5 to become an executive vice president with The Winn. Cos, a Boston-based real estate developer. He has been with the city since 1994 and was elevated to the city manager’s role in 2004. He didn’t respond to requests for comment on this story.

Less than a week after O’Brien’s announcement, the Worcester Regional Research Bureau announced it had selected McGourthy as its next executive director. He’ll change jobs in February.

Angelini said McGourthy’s greatest assets are his straightforwardness and commitment to action rather than talk.

“With Tim, everything was on top on the table,” Angelini said. “You knew exactly what you were going to get.”

Merrill hopes private groups such as the Worcester Business Development Corp. can push projects like CitySquare forward while the city searches for a new manager and development officer. But he knows the departures will be felt.

“There’s no way that we’re going to avoid some loss of momentum,” he said.

Focal Point: CitySquare

CitySquare stands as the most tangible evidence of O’Brien’s and McGourthy’s work, said Donna McCabe, president of the Central Massachusetts Convention and Visitors Bureau.

She praised city leadership for securing outside support for the project — such as an $11-million contribution from the commonwealth recently for an underground parking garage — as well as sticking to its guns to bring in a mix of tenants that will create the most foot traffic downtown.

The project should also make downtown more appealing to young professionals, Angelini said.

Quinsigamond Community College President Gail Carberry hopes O’Brien’s successor will focus on luring businesses that will hire college graduates and expand incubator programs, which are most frequented by young people looking to start businesses.

“We’re graduating people who can create new businesses, not just people who can be employed by businesses,” she said.

Jim Collins, Clark University’s chief investment officer, praised O’Brien for building consensus among diverse stakeholders. O’Brien excelled at finding areas of mutual agreement and presenting win-win situations, Collins said.

Collins hopes O’Brien’s successor will maintain his legacy of maintaining good relations with various constituencies and being receptive to outside ideas.

“I don’t think we should hire someone with all the answers … as much as someone who’s willing to put a process together and listen to the (city) council,” he said.

Within city government, O’Brien didn’t flinch when faced with potentially unpopular decisions, Carberry said, such as laying off workers and slashing spending to keep the city’s financial house in order as the recession hit a few years ago, she said.

“I think he’s shown incredible courage,” Carberry said.

O’Brien’s willingness to cut spending in the face of declining revenue helped Worcester avoid the vicious cycle of higher tax rates and a shrinking tax base that has plagued many other New England cities, Collins said.

Meanwhile, business leaders hope the next city manager will press the city council to lower the tax burden for companies. Businesses that operate within the city are assessed $30.85 in property taxes for every $1,000 of assessed value, which is the third-highest commercial tax rate in Central Massachusetts, although in the last two years, the council has narrowed the gap between the commercial levy and residential rate ($18.58).

“We cannot afford to be unattractive to the businesses we like,” Angelini said.

But political leaders have pressed the city to rein in tax increment financing (TIFs) deals for businesses that can immediately provide good-paying jobs with benefits.

“Without new taxable entities, the homeowners and existing businesses will continue to bear regular tax increases,” City Councilor George Russell wrote in his June evaluation of O’Brien. “TIFs have become our third tax rate and should be given only when jobs are to follow for Worcester residents.”

Elected leaders have identified a temporary replacement for O’Brien. Mayor Joseph Petty has been lobbying for the council to hire Ed Augustus — a former state senator and current director of community and government relations for The College of the Holy Cross — to fill in as city manager for six to 12 months.

Angelini hopes the next city manager will take advantage of the city’s educational institutions and blossoming downtown and work to bring a couple thousand white-collar jobs to the city.

“We have a great set of assets here,” Angelini said, “and now we need to think about deploying them.”