City wants to prevent nightmare on Elm Street

Date: 4/14/2009

By G. Michael Dobbs

Managing Editor



SPRINGFIELD City councilors, businesspeople and other interested parties questioned the role of the University of Massachusetts (UMass) downtown, what exactly is the status of the 31 Elm St. project and whether the city should enter into a lease agreement to house the School Department in the former Federal Building.

Several of the businesspeople stressed the perception of downtown as crime-ridden must be changed for more development to be successful.

Mayor Domenic Sarno covered some of the same material at a press conference the Friday before the event.

The lunchtime Council subcommittee meeting on Wednesday was presided over by Councilors Bud Williams and Tim Rooke. About 30 people attended.

Although the meeting had been scheduled at a time so William Connolly of Connolly and Partners, the developer of 31 Elm St. could attend, according to Rooke. He cancelled his appearance.

Before the meeting started Rooke said there was no political agenda -- the mayor had been invited to the meeting -- and that he wanted to solicit the opinions of people who work downtown.

Rooke said that he has several ideas himself about downtown development: tear down the former Federal Building and construct a new building and establish an aquarium on the riverfront. He also suggested the city should seriously consider adopting a development model from Paducah, K.Y. in which the city partnered with banks to provide low interest loans to artist to buy building in which they would work, live and exhibit or sell their work.

Williams said that "not having an economic development czar has really hurt us." He thanked Brian Connors, who has been the acting chief development officer since the departure of David Panagore, for his "commendable job" filling the position.

In his presentation, Connors explained the original $60 million plan for 32 Elm St. included retail, a hotel, apartments and a parking area. It fell apart when two hotel companies passed on the project, creating a $10-12 million gap in financing. Connors added that financing market-rate apartments in the building had always been a challenge but were now more difficult.

Connolly and Partners have until the end of June to come up with an alternative plan or with financing for the existing plan. Connors said that after that deadline the city could seek a new developer or stick with Connolly by granting another extension.

Connors cited how state funding enabled Lowell and Worcester to move forward with downtown development and that inquiries should be made about the availability of state money or funds from the federal economic stimulus legislation.

Having UMass play some sort of role in the 31 Elm St. building could supply the state funding to make project possible, he added.

Speaking about the former Federal Building, Connors said the city passed on owning the building and instead MassDevelopment is in final negotiations to buy the building from the government.

Connors said there have been suggestions made publicly that the School Department move into the building and Rooke said that a draft version of the lease he has seen would require the city to put $3 million up front for renovations to the building and charge the city $16 a square foot rent -- a rate Rooke said was higher than other downtown rents.

Rooke added, "It [the lease] doesn't make a heck of a lot of sense."

Connors said, "The last thing any of the neighbors want to see is this building going dark . It's in our best interests to make sure this building has some life in it."

Several of the audience members spoke about crime and the perception the public has about downtown. Real Estate Developer Evan Plotkin said a federal study conducted prior to the decision to build the new Federal Courthouse on its site on State Street concluded that Springfield was no less safe than any other city its size.

Matt Hollander, the general manager of the MassMutual Center, said there are no incidents at the events that are attracting 5,000 people into downtown.

Yet, one businessperson said Liberty Mutual decided to place its customer service center at Springfield Technical Community College's Technology Park because of the feeling that site would be safer than a downtown location.

Williams said the city should adopt a "zero tolerance" attitude toward street crime as Holyoke as done.

Plotkin said downtown needs market-rate housing to bring back the middle class and Russell Denver, president of the Affiliated Chambers of Commerce of Greater Springfield noted that government policy concerning market-rate housing has made changes in downtown.

Denver explained, for example, that when local government allowed the conversion of the apartment towers on Chestnut Street to go from market-rate to subsidized housing that changed the demographics of downtown residents, which in turn affected the retail blend of downtown.

"That's public policy that allowed that to happen," he said.

Real estate Developer Frank Colaccino of the Covest Group cited the recent decision to increase the business property tax rate to $38 per thousand as one that has hampered development.

"What message are you sending to business?" he asked the members of the City Council present who approved the increase. He called the tax increase "a recipe for disaster."

Colvest Group is currently developing the property in the South End that was once the location of St. Joseph's Church on Howard Street.