Grand slam!

WORCESTER - The Pawtucket Red Sox and the city have signed an agreement that clears the way for the Triple A team to move here and play in a stadium that will be built on the former Wyman-Gordon property near Kelley Square.

City Manager Edward M. Augustus Jr. emphasized Friday that the project involves more than just bringing a minor league baseball team to Worcester and building a ballpark for it.

He said it includes a large-scale redevelopment of 18 acres of largely vacant and blighted property in the Kelley Square area that will add to the ongoing revitalization of the Canal District and transform that part of the city.

In addition to construction of a 10,000-seat multi-use stadium, at and estimated cost of $86 million to $90 million, the deal includes a development blueprint that calls for $90 million in private development for 225 market-rate apartments, a 150-room hotel, a second boutique hotel consisting of about 100-110 rooms overlooking the ballpark, and 65,000 square feet of retail/restaurants.

All of that would be done in the first phase of the project by March 2021, according to city officials.

The second phase of the project would include 200,000 square feet of residential, office and/or mixed-use development.

The project also includes a $35 million investment from the state over the next two to three years, which will support new market-rate housing through the Housing Development Incentive Program and leverage MassWorks funding for construction of a 350- to 500-space parking garage in the Kelley Square area.

In addition to other street and traffic signal improvements in that area, the state is also looking to redesign and reconstruct Kelley Square - a long-time traffic riddle and nightmare for many motorists.

The total cost of the overall development project has been pegged at about $240 million.

Overall, the project is expected to create more than 500 full-time jobs and 2,000 part-time jobs both in construction and non-construction positions related to the ballpark, hotels, apartments, retail locations and infrastructure improvements.

"This is a historic day for our city," said Mayor Joseph M. Petty. "This is the result of not only months of negotiations but years of making our city a better place to live. When this project is completed it will truly be a community park and a community space."

The ballpark will be named Polar Park, marking the involvement of Polar Beverages of Worcester.

It will be built on a 6-acre parcel on the northern portion of the Wyman-Gordon property. It is a triangular parcel surrounded by Madison Street to the south, the CSX railroad to the west, Washington Street and Summit Street to the east and a northern terminus at the city-owned Pickett Municipal parking lot on Green Street.

Mr. Augustus said he will seek authorization to have the city borrow $100.8 million - $70.6 million in general obligation bonds for the cost of the ballpark, land acquisition, culvert work, capitalized interest and borrowing costs, and another $30.2 million in bonds that will be covered by the baseball team's annual rent payment for the stadium.

In addition, the team will make a $6 million equity contribution toward the construction and equipping of the ballpark.

Mr. Augustus emphasized that the project, including construction of the ballpark, will be "self-supporting" and will not cost Worcester taxpayers any additional money.

He said the project has been structured in such a way that new taxes and other revenue sources it generates will be used to to pay for the ballpark. The city will create a District Improvement Financing area around the ballpark to capture the new revenue created by the project, he said.

The manager said those new revenues, which include ballpark taxes, lease payments, parking revenue, advertising, hotel occupancy taxes, real estate taxes generated by new construction and personal property taxes, will be used to pay back bonds over a 30-year period.

"This project will pay for itself," Mr. Augustus said. "No (municipal budget) revenues will have to be diverted to support this project. That was a fundamental principle to this project. The development costs and revenue streams identified are interconnected and codependent."

At a press conference Friday afternoon, Mr. Augustus announced that the city had signed a letter of intent with the Pawtucket Red Sox to move to Worcester. He said both sides agreed to that letter of intent late Thursday morning, culminating months of negotiations between the team and the city.

"After 15 months of courtship and negotiations, I have never been more confident in a proposed arrangment/partnership as I am in the one between the city of Worcester and the Pawtucket Red Sox," Mr. Augustus said. "The vision shared by the ball club, the city, the Commonwealth and the developer is one that is certain to have a profound and long-lasting outcome on businesses, residents and visitors alike. The Pawtucket Red Sox are not only committed to relocating to Worcester, but to position the club as part of the city's fabric and future."

In addition to signing a letter of intent with the Pawtucket Red Sox, the city also signed a similar agreement with Boston-based Madison Downtown Holdings, LLC. That is the group that will be involved with the private development aspect of the project.

The group is headed by Denis Dowdle, who Mr. Augustus said has a history of successful ventures. In Worcester, he was involved with the major redevelopment of the former US Steel Co. property off Route 146 in the Qunisigamond Village area several years ago. That commercial development includes a Walmart and several other retail buildings.

Mr. Dowdle's group will be acquiring the vacant Wyman-Gordon property off Madison Street, according to the city manager.

The majority of the Madison Downtown Holding development will be located on the southern portion of the former Wyman-Gordon site. The largely vacant parcel is south of Madison Street and abuts Lamartine Street to the south, Washington Street to the east and the CSX railraod to the west.

"I have eyed this particular site for many years," Mr. Dowdle said. "The city and state's investment in infrastructure, as well as the construction of the ballpark, catalyzed and expanded my involvement in this project. Together, we will help to transform approximately 18 acres of blighted property and continue adding to the revitalization of the Canal District."

He added that Timothy P. Murray, former mayor and head of the Worcester Regional Chamber of Commerce, played a key role in bringing him to Worcester and getting him to consider the Wyman-Gordon property for private development.

In a statement released Friday, Gov. Charles Baker said the Baker-Polito Administration is committed to working with its partners at the local level to support economic development opportunities across the Commonwealth to create jobs and strengthen communities.

Lt. Gov. Karyn Polito, who participated in Friday's press conference, said she and Gov. Baker are proud to support the revitalization of Worcester through various economic development tools and in partnership with the city.

"We continue to be focused on the Canal District and Kelley Square," she said.

Ms. Polito said state funding for the new parking garage will not only serve the needs of the ballpark but also the parking needs of businesses in the Canal District. She added the Massachusetts Department of Transportation is moving forward with a project to redesign and reconstruct Kelley Square, along with other street and traffic signal improvements.

"Today we celebrate an exceptional opportunity for growth and development for Worcester and for the Commonwealth with the announcement of this ball club (Pawtucket Red Sox) planning to relocate to Central Massachusetts," she said.

 Mr. Petty said the financial package for the project will formally be presented to the City Council Tuesday night.

At that time, he said the council will refer it to its Economic Development Committee, which will hold public hearings on the proposal. He said at least two public hearings have already been scheduled and more will be held if necessary.

"It's important to get community input on this," Mr. Petty said.

The mayor added that he hopes the financial package can be up for a final vote by the City Council by the end of next month.

PawSox moving to Worcester? Say it ain't so.

— Stephen King (@StephenKing) August 17, 2018