WORCESTER – The lack of development on a parcel of land behind left field of Polar Park in Worcester’s Canal District is creating a contentious relationship between the City of Worcester and the property owner and developer, Madison Properties.
At Thursday morning’s Worcester Redevelopment Authority meeting, chairperson Michael Angelini opened with several minutes of background on the agreements between the City of Worcester and Madison Properties in respect to development around Polar Park and the more recent disintegration of the agreement on the part of Madison Properties.
According to the City of Worcester, a letter from Madison Properties to the City of Worcester in October highlighted these delays, citing aspirational timelines and financial constraints, and terminated its 15-year tax increment financing agreement on the Left Field building property, ultimately stopping any tax payments greater than the tax liability of the current undeveloped property. The city expressed concern over Madison’s disclaimed tax increment financing, impacting city revenue.
“From the city’s point of view, Madison was selected as a partner because we had confidence in Madison accomplishing what it said it would do. This is not a situation where the city put a tooth under its pillow, expecting a tooth fairy to give it a reward. This was a situation where the city had a good faith belief that these projects, in particular the left field building project, would be done,” Angelini said.
The city established a District Improvement Financing Plan (DIF) in 2018 to pay for the borrowing for Polar Park. The DIF originally included the ballpark and two parcels across the street, developments by Madison Properties, who signed an agreement with the City of Worcester in 2021. As part of the agreement, Madison Properties agreed to construct two residential buildings, a hotel and the mixed-use Left Field building at 50 Washington St.
In a report to Worcester City Council on Tuesday, Nov. 19, the administration of City Manager Eric Batista informed councilors that the DIF ran a deficit of over $500,000 in fiscal year 2024.
The agreement between the City and Madison Properties allowed the City to acquire the land for Polar Park and the Polar Park parking garage, which was owned by Madison Properties at the time, without paying Madison any immediate compensation. In exchange, Madison received a Tax Incremental Financing agreement on its proposed developments in the district.
Madison defended its efforts, citing the pandemic’s effects on commercial projects and the focus on stabilizing The Revington, a 228-unit apartment complex across from Polar Park which opened in late 2023, and pursuing a hotel project.
“Madison is focused on the entire development, trying to meet any opportunities that are out there that are clear to themselves, clear to the marketplace, and ready to bear right now,” attorney Mark Donahue, appearing upon behalf of Madison Properties, said. “Madison is a for-profit developer focused first and foremost on doing what’s right for it and its investors and maximizing return for those investors. That focus right now is on the hotel.”
The original agreement between the City of Worcester and Madison required a second residential building to include at least 125 market rate apartments and up to 20,000 square feet with occupancy targeted for Dec. 31, 2023.
As Angelini frequently referred to during Thursday’s meeting, Madison Properties had agreed to deliver the “skin, shell and core” of the Left Field building on top of a platform that had already been constructed. The original agreement called for a five-story commercial office building to open by April 1, 2023.
“There’s no doubt that Madison has not built the shell skin and core. There’s no doubt about that. Madison has failed to meet that requirement,” Donahue admitted.
Donahue said termination of the left building tax agreement and other tax benefits in the agreement were negotiated in 2018.
“There were incentives for Madison to meet its aspirational dates and set forth, because those benefits start to decrease over a period of time when they’re unable to do that. Madison recognizes that it has continued to make its best phase efforts to try to complete the development on a phase-by-phase basis,” Donahue.
The WRA addressed Madison’s failure to meet project milestones, including the delayed construction of the left-field commercial building and a second residential building in the district. Angelini and other WRA members emphasized the need for Madison to fulfill its commitments and suggested potential legal actions if progress is not made.
“The city is not in the business of taking risks, it’s in the business of collaborating with people who are looking to meet commitments that they make. The takeaway from this meeting is that there is no timetable. Madison will do what is in its interests and its profitable interests for its shareholders, and meet its commitments when it’s ready to, but not before. That is the unfortunate takeaway from this meeting. It’s unsatisfactory,” Angelini said.
The WRA will likely consult with legal counsel regarding the options available to the city under the agreement, including the potential to force the sale of the left field property.
