Committee backs tax-increment exemption for 139-unit 17 Pearl Street development

The Worcester City Council standing committee on economic development voted to recommend adoption of a tax-increment exemption agreement for a proposed 139-unit, mixed-income development at 17 Pearl Street, a parcel described in committee materials as an underutilized downtown parking lot.

The project, proposed by HHM Cube Properties LLC, would include 139 residential units and a ground-floor commercial storefront intended to be a pharmacy. City staff recommended certifying the project under the Commonwealth’s Housing Development Incentive Program and awarding a 12-year tax-increment exemption with an average annual exemption of 45% on the incremental value.

Peter Dunn, city staff, said the application is “for the project designation under the Commonwealth’s Housing Development Incentive Program, which requires local participation through tax increment exemption agreements.” He described the site at 17 Pearl Street as “currently, an underutilized parking lot in the heart of our downtown district.” Dunn said the developer has planning-board site approval for a mixed-income…