Worcester gets $11M economic development grant

Worcester recently was awarded an $11 million “MassWorks” economic development grant for continuing the makeover of CitySquare, a multi-phase project in the heart of downtown.

In 2005, the private/public investment project became the first in the state to be named as a District Improvement Financing District. The DIF designation enables the city to use tax revenue from the property to fund the public elements of the project, such as improving roads and other infrastructure.

Heather Gould, chief of staff in Worcester’s economic development office, said the state grant will help support the next phase of the project, which includes the construction of a 150-room hotel, 350 units of housing, and 15,000 square feet of retail space.

The grant also will help with the design and construction of an underground parking garage, Gould added.

The $565 million CitySquare development aims to transform the property on Front Street, the former site of a 1970s urban-renewal project that included the Worcester Center Galleria. A successor to the Galleria closed in 2006.

The goal of the new project is to convert the site into a vibrant, pedestrian-friendly downtown block with retail, office, medical and residential space, Gould said.

The DIF amendment requires approval from the City Council and the state Economic Assistance Coordinating Council before the project can move forward.

While the initial phase of the project is expected to be completed by the end of 2016, Gould said there is potential for additional development in the area.