December 16, 2012

5 May Street

There are alot of questions right now as to whether the $1,900,000 of NSP (Neighborhood Stabilization) actually was invested into the property or not.    Evidently by a recent article I read in the newspaper, there was not proper documentation and the City of Worcester will need to pay these monies back.  At the same time the article indicated that these monies would be funneled back to the City of Worcester. 

The bottom line is that there was shoddy record-keeping and I am sure employees, who no longer work for the City of Worcester will be blamed for this.   Surely there will be more on this over the coming months.  Needless to say monies distributed need to have better checks and balances, but that is not the purpose of this blog.    Lets look at the numbers.

From what I have heard I would estimate that the cost to finish the project would be between $40,000 to $50,000  per unit.    In the end the total cost would be approximately $310,000.  Don't get me wrong this is ridiculous, but this would end up being the 3rd cheapest of the 9 development projects listed in the City Council agenda Tuesday  in my post below. 

All I am trying to point out is that it is pretty hard to say that this project was a waste of tax-payer monies when your project even costs more?    The average cost of the 6 projects that were higher comes in at $384,000 per unit.  In actuality 5 May Street at $310,000 will be a deal.

  1. 5 May Street    266,538
  2. 9 May Street   414,539
  3. 15 & 17 LaGrange     200,792
  4. Austin Corridor II   355,553
  5. Hadley     514,679
  6. KGH 1 & 2     331,369
  7. KGH 3A    299,610
  8. KGH 3B  365,999
  9. KGH 4  325,995

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