WORCESTER—Worcester’s mayor, city manager and top business leaders are angry about WPI’s plan to turn two hotels in the Gateway Park area into student housing.
In a letter sent to WPI President Grace Wang and the college’s board of trustees, the city and business leaders argue the purchase and conversion of the Hampton Inn & Suites and the Courtyard Marriott could cost the city millions in tax revenue, rob the city of its effort to develop the area and cripple the city’s entertainment industry.
“We were collectively stunned to learn that WPI has been exploring for many months the possibility of acquiring the two hotels in Gateway Park for student housing,” reads the letter signed by Mayor Joseph M. Petty, City Manager Eric Batista and Worcester Regional Chamber of Commerce President and CEO Timothy P. Murray, as well as Craig Blais, president and CEO of the Worcester Business Development Corporation, and Jon Weaver, president and CEO of Massachusetts Biomedical Initiatives.
Petty, Batista, Murray, Blais and Weaver represent Worcester’s Economic Development Coordinating Council or EDCC. They say acquiring the hotels was never mentioned in numerous meetings with WPI leadership and would violate the original vision and intent of the project.
“As individuals and organizations,” the letter reads, “we have made public and private representations that Gateway Park was about creating a mixed-use district that expanded the city’s tax base, created jobs, and could be an example of how government officials, businesses, and academia can work together in a mutually beneficial way.”
Gateway Park is considered a flagship redevelopment initiative of the EDCC’s, one that was originally designed to transform contaminated brownfield sites and underutilized commercial properties into a thriving mixed-use district with the goal of fostering economic growth in the North Main Street area.
The project, which garnered millions in state and federal grants, was intended to support new business ventures, research and development companies, and educational facilities — all while expanding the city’s tax base and creating jobs.
The letter highlights the significant public and private investments that have been made in Gateway Park, including approximately $170 million in development that resulted in the construction of several key facilities, such as a dormitory at 10 Faraday St., commercial buildings at 50 and 60 Prescott St., two hotels, and a parking garage.
The city leaders say the investments were made with the understanding that Gateway Park would be a vibrant, mixed-use district that would benefit the city’s economy.
They further argue that turning the hotels into student housing would undermine the project’s original goals by taking valuable property off the city’s tax rolls, eliminating hotel tax revenue and reducing Worcester’s hotel capacity by 25 percent.
This, they say, would have a detrimental impact on the city’s ability to attract and host major events, including conventions and tournaments at the DCU Center and Polar Park. Additionally, they say, the loss of these hotels could wipe out roughly 100 jobs.
The letter also notes that WPI had previously passed up an opportunity to acquire student housing from the now-closed Becker College, which could have housed more than 400 students and was available for what was considered a relatively modest $3.8 million.
The letter urges WPI to reconsider the proposal and work with the city in a transparent manner to address any student housing needs, while keeping with the original vision of the Gateway Park Project.
City Manager Batista issued the following statement: “The hotel industry is an essential part of the city’s economy. Its tax base is a critical piece of the city’s budget, contributing both annual property tax and hotel and meals tax revenues. These funds are key to investing in public works, safety, and facilities, including the Worcester Public Schools, among other municipal services. As the city grows, we must expand our hotel inventory to meet the demands of conventions, tournaments, and large entertainment events. Gateway Park is an incredibly important mixed-use district, creating jobs and increasing Worcester’s taxbase, and it is imperative that it remains a hub of economic development.”
The EDCC warns that going ahead with the plan could severely damage future partnerships between Worcester’s higher education institutions and the city.
“WPI’s lack of fidelity to the shared mission, vision, and history of the Gateway Park Project, which has existed for nearly 20 years, is disconcerting,” the letter concludes. “We urge you not to go forward with this proposal, and we stand ready to work with you in a spirit of full transparency to address any student housing needs that WPI may have.”
The Worcester Guardian contacted WPI for a statement, but a spokesperson said the school was declining to comment.
Charlene Arsenault can be reached at carsenault@theworcesterguardian.org
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