May 20, 2008

City Square Update

I watched the presentation tonight during the City Council meeting on TV. The initial public cost will be 34,500,000 for phase 1A. The good news is that the Commonwealth's $25,000,000,or should I say the GREAT NEWS, is going towards it right up front so the City of Worcester is on the hook for 9,500,000 in DIF bonds. We already, however, have 6,100,000 on DIF bonds invested for a total of 15,600,000 in DIF bonds.

The question is will Building H and 135,000 of leased space produce enough additional revenues to pay $15,600,000 in bonds, since the underground garage will, I do not believe, will be built under phase 1A or will we have to dip into the General Fund? Believe me I want this project to happen, but I just do not see how the development through Phase 1A will generate the "extra" tax revenues to pay 15,600,000 in bonds, without having to take monies from the General Fund.

Hope I am wrong.

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