The Worcester City Economic Development Committee on Dec. 10 recommended that the City Council designate 57 Exchange Street as a certified project under the Housing Development Incentive Program and approve a 15-year tax increment exemption agreement to support the conversion of the historic building into mixed-income housing.

Chair Candy Merrill Cowleson moved the committee recommendation after Peter Dunn, the city’s chief development officer, described the developer CMK Development Partners’ plan to convert the roughly 48,000-square-foot building (also referenced in records as 1 Exchange Place) into about 44 residential units with roughly 4,500 square feet of first-floor commercial space. Dunn said the project represents an estimated $16,000,000 investment and would set aside 20% of the units as affordable, split between units targeted at 60% and 80% of area median income.

"This is the building, historic building that had the police station in at one time," Dunn said, describing the adaptive-reuse approach and noting the importance of state and federal historic tax credits to make the work financially viable. He recommended a 15-year tax increment exemption at an average annual exemption of about 17%, which staff estimated would amount to roughly $200,000 in total tax savings over the term, and said the local TIE is necessary to unlock eligibility for the state HDIP investment tax credit.

Public commenters and local stakeholders voiced support. Darnell Dunn, director of business recruitment for the Worcester Chamber of Commerce, said the plan would reactivate an underused downtown property and add housing stock. "We're very much in support of this project," he said. Citizen Greg Degamazian urged attention to public-safety concerns, quoting a regional economic-development leader: "There is no economic development if there is no public safety." Developer Jerry Cavender thanked the committee and city administration and said his team has been working on the project for four years. "We look forward to being in the ground and provide much needed housing next year," Cavender said.

After the presentation and public comment, the committee moved to approve the recommendation; the clerk recorded affirmative roll-call responses from Councillor Kate Toomey, Councillor Pesillo (as recorded), and Councillor Meryl Carlson, after which staff confirmed the recommendation.

The recommendation now moves to the full City Council for consideration at its next available meeting. Staff and the developer said construction is targeted to begin in spring 2025 if the developer receives the anticipated state tax-credit awards; the timeline is contingent on the outcome and timing of the state HDIP rounds and on the developer securing a general contractor, which had not yet been selected.

The committee adjourned after completing its agenda.