WORCESTER – The Worcester Redevelopment Authority authorized the execution of the purchase and sale agreement for the Denholm building property on Main Street in downtown Worcester.
The WRA board members voted in favor of the agreement on Monday morning and will purchase the building for $3 million.
In April, the City Council authorized a $6.8 million loan to the WRA for acquisition and demolition costs of the Denholm building at 484-500 Main St. The loan request included the $3 million acquisition cost, $2.5 million for demolition, $900,000 in relocation assistance for the Denholm building condo unit owners and $400,000 in carrying costs, soft costs and contingency.
Under the plan negotiated between representatives of the building and the WRA, the Denholm building condo unit owners dissolve the condominium trust, leaving each owning a percentage of the sale of the property.
The WRA expects to close on the sale of the Denholm by next week. Once the sale is closed, each condo unit owner will receive a notification of the sale and will have at least four months to vacate the building. Worcester’s Chief Development Officer Peter Dunn said realistically the WRA should expect all condo unit owners to vacate the property by February 2023.
At Monday’s meeting, the WRA also approved an agreement with Glickman, Kovago & Jacobs Management to manage the Denholm building property following the execution of the purchase and sale agreement.
Dunn said the City expects to release a Request for Proposal this fall for development proposals at the Denholm building site.
