An abundance of expressions describe “from beginning to end” in culinary terms, evolving from the Roman phrase “from eggs to apples” to our own “from soup to nuts.”
In Massachusetts, a variety of MassDevelopment programs can help projects from start to finish.
As a part of any new project, businesses, municipalities, nonprofits and other developers must complete environmental site assessments and, in many cases, clean up contamination. On behalf of the commonwealth, MassDevelopment manages the Brownfields Redevelopment Fund, which offers several financing solutions. The site assessment program provides unsecured, interest-free loans of up to $100,000 to assess potential contamination and develop remediation plans if needed. The Brownfields Redevelopment Fund also supports the Brownfields Remediation Loan Program, which offers flexible loans up to $500,000 for Brownfields site cleanup.
MassDevelopment also provides early-stage project assistance via predevelopment loans and through our real estate department. Predevelopment loans can finance costs, such as architectural and engineering work or feasibility studies, which advance a project to construction. These loans are available to private, nonprofit and public organizations. Real estate department staff often works with cities and towns to provide community and site planning, site development feasibility and other real estate analysis. These services help municipalities plan, prepare, market and turn around blighted neighborhoods, vacant buildings, and former industrial sites.
Soup-To-Nuts
A few projects exemplify this soup-to-nuts approach. Worcester Polytechnic Institute’s Gateway Park, a research and innovation hub for the life sciences in Worcester, has made use of several MassDevelopment products. To date, the 12-acre, mixed-use project has received $4 million in direct funding from MassDevelopment in 10 separate transactions involving four different funds, including $750,000 in assessment and remediation monies from the Brownfields Redevelopment Fund. In addition, MassDevelopment issued a $40 million tax-exempt bond for the first biotech building.
Most recently, MassDevelopment issued a $14.5 million recovery zone facility bond and provided an $8.45 million New Markets Tax Credit allocation to 50 Prescott St. LLC, which is building a second “wet lab” facility as part of the development. The building, which will have related offices and classrooms, will have about 95,500 square feet of rentable space and create 140 permanent jobs, as well as 85 construction jobs. Finally, MassDevelopment financings have helped Massachusetts Biomedical Initiatives, an organization that assists start-up biotechnology and life science companies in central Massachusetts. One of its projects is an incubator laboratory in the new 50 Prescott St. life science building.
Stergis Commercial Realty, the real estate holding company for Stergis Aluminum Products in Attleboro, also received support from multiple MassDevelopment programs. A $792,000 commercial loan supplemented by $500,000 from the Brownfields Redevelopment Fund helped Stergis clean up 79 Walton St., the former home of a metal stamping and coin mint in Attleboro. The commercial loan financed renovations to the existing building, which has almost 129,000 square feet of manufacturing space. The company expects to create 48 jobs as a result of the project.
Finally, MassDevelopment provided an $11.5 million financing package for Lynn Community Health’s expansion.
MassDevelopment’s assistance started with Brownfields site assessment and predevelopment funds, and moved on to include a $6.5 million, tax-exempt bond issued on Lynn Health’s behalf and purchased by Cambridge Savings Bank. The project, a new, 29,300-square-foot ambulatory center as an addition to the current facility, also received New Markets Tax Credit equity and a $3 million grant from Partners HealthCare.
Those projects help showcase the A-to-Z style that MassDevelopment can bring to the table around the commonwealth. The Brownfields Redevelopment Fund, in particular, has served as an effective urban economic redevelopment tool, especially when augmented by other MassDevelopment financing programs that deliver savings through lower interest rates. We hope that many more projects can take advantage of the first, second, and third courses available, promoting economic development, community revitalization and job creation.
Marty Jones is president and CEO of MassDevelopment.
