EDFC

Officials begin $20 million conversion of Burwick's into Hadley Apartments

Bob Kievra, TELEGRAM & GAZETTE STAFF
rkievra@telegram.com
May 22, 2008

WORCESTER— The transformation of a downtown city block got under way yesterday as a Dedham developer and various local and state officials broke ground for Hadley Apartments, a 45-unit project at the site of the former David Burwick furniture store at 651 Main St.

"Hallelujah," said District 4 Councilor Barbara G. Haller, a longtime project proponent. "Many people predicted it would fail and many felt it should fail," she said. "But we saved the building for its highest and best use."

The development, slated for completion by the end of this year, is the first component of a larger project that will add over 200 apartments and condominiums by renovating and constructing new buildings along Madison, Main and Beacon Streets.

"We'll see real people living here at the start of next year," said David Rodriguez-Pinzon, chief executive officer of Economic Development Finance Corp., the developer.

In his remarks, City Manager Michael V. O'Brien cited an old McDonald's jingle, a reference to a previous proposal to knock the 65,000-square-foot building down for a McDonald's restaurant, a convenience store and a gasoline station.

"That was a far cry from the vision we had for our community," he said.

The McDonald's project died in the face of neighborhood opposition and the project reached a milestone in June 2006 when it received $5.1 million in low-income tax credits and another $550,000 from the Massachusetts Department of Housing and Community Development's Stabilization Fund.

The project's current cost is approximately $20.1 million to retrofit the 85-year-old building into 40 apartments designated for low-income residents and five market-rate units. The building was originally constructed for the Hadley Furniture and Carpet Co. and was later occupied for several decades by David Burwick Fine Furniture.

While the housing market has softened since the project began, Mr. Rodriguez-Pinzon said there is a shortage of affordable apartment space in Worcester. He said he hopes to entice workers employed by area colleges and universities, the biotech industry or those who work for local trade organizations.

The ground floor of the five-story building will feature 5,000 square feet of commercial space. No tenants have yet been inked, officials said.

"Our objective is to attract working people with some disposable income," Mr. Rodriquez-Pinzon said. The project's success is not dependent on other parts of the local economy, such as the expansion of commuter rail service to Worcester or the pace of the downtown CitySquare project, he said.

"For our site, the labor force is primarily here," he said. "We have enough market in Worcester."

A renovated Hadley Building is one part of a project that will spread across the two-acre property.

The former Caravan Coffee building at 661 Main St., which abuts the Hadley Building, will be torn down by Columbus Day. The site will temporarily be used for parking but will later be replaced with a new building consisting of 60 apartments and 10,000 square feet of commercial space.

Another new building, known as Beacon Place, will be constructed on Madison Street and feature 45 condominiums. In addition, the former Boys & Girls Club at 2 Ionic Ave. will be converted into 21 apartments.

Thomas R. Gleason, executive director of the Massachusetts Housing Finance Agency, said the project defied the odds, overcoming many obstacles over many years.

"When I think of the Hadley Building, I think of the little engine that could," Mr. Gleason said.

© 2008 Worcester Telegram & Gazette Corp.