New Garden Park Inc., an affiliate of the Worcester Business Development Corp., is constructing an academic facility at the former Worcester Telegram & Gazette building in downtown Worcester.
MassDevelopment has provided more than $16 million in financing – including a $12 million New Markets Tax Credits allocation and $4.2 million in direct loans – to finish renovations to the building on Franklin and Federal streets. When completed, the 135,000-square-foot facility will house Quinsigamond Community College’s new urban campus for its Allied Health Services and Workforce Training and Employment Programs.
"The Telegram & Gazette property is a crucial element as we invest in the future of downtown Worcester," Rep. Jim McGovern said in a statement. "I appreciate the dedication of the financing partners to see this project through, one that will be a catalyst for future downtown development."
The building’s plans call for a business incubator, café, black box theater and professional office space. About 75 faculty and staff from QCC expect to locate in the downtown campus in the fall of 2014, along with about 1,800 students that will attend classes at the new location.
MassDevelopment participated in the primary financing for this project with lead lender Fidelity Co-operative Bank and six other local participating institutions: United Bank, Webster Five Cents Savings Bank, Bay State Savings Bank, Commerce Bank, UniBank for Savings and Middlesex Savings Bank. The city of Worcester has committed $2.5 million to the project through its U.S. Department of Housing and Urban Development 108 Loan Program. In addition to these funds, the city, through its Brownfields Cleanup Revolving Loan Fund, has provided a $250,000 grant and a $250,000 loan to assist in the remediation of this property. The Worcester City Council has also executed a 20-year tax increment financing agreement for the 20 Franklin St. facility.
Other funding sources include the U.S. Environmental Protection Agency and the Property and Casualty Initiative. New Markets Tax Credit allocations were provided through the Massachusetts Housing Investment Corporation, MassDevelopment, U.S. Bancorp and The Community Builders.
