MassDevelopment has issued $42.54 million in tax-exempt bonds on behalf of Worcester Polytechnic Institute (WPI), which plans to use bond proceeds to build a 250-bed apartment-style residence hall in the city’s downtown.

The 89,000-square-foot residence hall will be across from Worcester’s Gateway Park, the institute’s growing center of research, innovation, and commerce. Bond proceeds will also finance construction of a surface parking lot. 

"Over the past seven years, WPI has grown its life sciences programs significantly. The location of this residence hall near Gateway Park, a life sciences hub that the university has been developing within Worcester, makes sense for students," MassDevelopment President and CEO Marty Jones said in a statement. "Through this low-cost financing, MassDevelopment is pleased to continue our support for WPI, Gateway Park and the city of Worcester."

Originally developed as a joint venture with the Worcester Business Development Corp. (WBDC), WPI became the sole owner of Gateway Park in 2010 and is pursuing the build-out of the park in partnership with companies ready to invest in the region. The master-planned, 12-acre park, located in downtown Worcester, envisions five buildings totaling 500,000 square feet of flexible laboratory and office space for a range of research and commercial activities. The flagship complex at Gateway Park is WPI’s 125,000-square-foot life sciences and bioengineering center, which opened in 2007.