Worcester City Manager Eric Batista is requesting the City Council approve a tax-increment exemption for a 197-apartment development planned for the Canal District, a tax break originally intended for Madison Properties.
The 10-year agreement would result in about $1.4 million in property tax savings for GFI Partners, the Boston-based developer behind the project at 39 Green Island Blvd.
GFI effectively would take over the original TIE agreement for the apartment building originally envisioned by Boston-based Madison Properties for the site, according to Batista’s letter to the Worcester City Council. Since the Madison project was never built, no tax exemptions have been awarded yet for that particular parcel.
Madison plans to sell the parcel to GFI Partners following commencement of the new apartment project. Madison has previously found itself at odds with City leaders over projects in the Polar Park baseball stadium area after constructing The Revington, a 228-unit building next to the GFI site.
The project will not include any units designated affordable, with GFI opting instead to instead make a payment to the City’s Affordable Housing Trust Fund.
The GFI project has received Worcester Planning Board approval, and construction is expected to begin this summer, aiming for completion by the fall, according to a letter from Worcester Chief Development Officer Peter Dunn included in Tuesday’s meeting packet.
The tax-break proposal was held by District 2 Councilor Rob Bilotta at Tuesday’s meeting, meaning the agreement will be considered at a future council meeting.
Eric Casey is the managing editor at Worcester Business Journal, who primarily covers the real estate and banking & finance industries.Â
