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Worcester Council Grapples with WPI Hotel Purchase Fallout

September 17, 2024 | Worcester City, Worcester County, Massachusetts


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Worcester Council Grapples with WPI Hotel Purchase Fallout
In a recent city council meeting, officials expressed significant concern over the recent acquisition of two hotels by Worcester Polytechnic Institute (WPI), which has removed these properties from the city’s tax rolls. Mayor Petty highlighted the long-standing partnership between the city and WPI, emphasizing that the original agreement aimed to expand Worcester's tax base and create jobs. The mayor expressed frustration over the loss of taxable properties, noting that the hotels represented a substantial annual tax revenue of approximately $2 million.

Councilor Kenny Merrill Carlson echoed these sentiments, questioning WPI's decision to purchase the hotels instead of expanding its campus in a way that would not detract from the city’s tax base. He pointed out that the hotels' removal from the tax rolls would place an additional financial burden on Worcester residents, who already face rising taxes. Carlson also raised concerns about the potential loss of jobs associated with the hotels and the impact on local businesses that rely on hotel capacity for events.

Councilor Bergman criticized the decision as detrimental to the city, suggesting that WPI had the opportunity to expand using properties that were already off the tax rolls. He called for legislative changes to ensure that educational institutions contribute fairly to the local economy, noting that a significant portion of Worcester's properties are already exempt from taxation due to their nonprofit status.

The councilors discussed the need for better community benefit agreements and emphasized the importance of maintaining a healthy tax base to support city services. They urged the city manager to negotiate effectively with WPI to address these issues and to consider the broader implications of such acquisitions on Worcester's economic landscape.

As the council deliberates on this matter, the overarching theme remains clear: the relationship between educational institutions and the communities they inhabit must evolve to ensure mutual benefit and sustainability. The council is poised to explore legislative avenues to prevent similar situations in the future, aiming to protect Worcester's economic interests while fostering collaboration with its educational partners.

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