Page 68 - BusinessWest November 24, 2021

have to think about the large amounts of office space currently unleased and the potential for those numbers to climb, he went on, adding that some thought should go into repurposing some of this space into flexible workplaces.
Getting projects like these off the ground is often difficult because it’s not easy to make rede- velopment projects like the Overland initiative “pencil out,” as developers say, meaning make the numbers work. Often, historical tax credits or other forms of funding are needed to bridge gaps, said Martin, adding that the state and indi- vidual communities should look at using the fed- eral funds flowing to them to make such projects more feasible and doable.
“We run into a gap between the cost to build something and the actual asking price for some- thing,” she said, citing the Overland project as
an example. “We got 60 apartments out of it and rents that fit the area, but none of that would have happened without historical funds and state housing funds. So if the city had something that could bridge some of the financial gap between new-build and the current economic conditions in Springfield, that will help to bring developers here.
“It’s hard to justify an $18 million project with $2-per-square-foot rent,” she went on. “But if there’s some way to help bridge that gap, I think you’d see more developers willing to come in and give you a good product.”
Daley agreed, noting that the developers of the so-called Clocktower Building at Ludlow Mills, another housing project, have had to wait the better part of six years for the historical tax cred- its needed to move that initiative off the drawing board.
“We have another mill that’s 600,000 square feet; if we were to start today and try to get those kinds of tax credits, it would be 12 to 15 years before they were all distributed,” he said. “If the state wanted to have an impact on develop- ment of those kinds of projects, it should make more money available for good projects that are shovel-ready.”
Martin said the gap in funding facing those looking to develop existing but older and chal- lenged buildings is one of
the key factors impeding
tourism, for example — they want to attract,” he said. “It’s about determining what you want your future to look like, and investing in it.”
Paying It Forward
Summing things up, Sullivan said these are what he hopes are once-in-a-lifetime windfalls that have come to area cities and towns.
“Hopefully, we won’t ever have to go through this again,” he noted, adding quickly that this
redevelopment of the build- ings across Main Street from MGM Springfield.
“It’s not that people don’t want to be there,”
she said. “It costs a lot to redevelop these buildings, and then to charge a rent that fits the community ... it doesn’t pencil out with- out some kind of help,” she said. “Using these funds in a smart way like that would help bring back the Main Streets in Western Mass.”
“I do think this is an opportunity for communities to
look at the bigger picture regarding where they want their communities to be 10 years down the road, what they want their downtowns to look like, and what sectors — be it a restaurant district or an entertainment sector, travel and tourism, for example — they want to attract.”
Sullivan agreed, and said such investments are part of that process of looking beyond today and to tomorrow, and what communities want and need to look like in a rapidly changing landscape.
“I do think this is an opportunity for com- munities to look at the bigger picture regarding where they want their communities to be 10 years down the road, what they want their downtowns to look like, and what sectors — be it a restaurant district or an entertainment sector, travel and
unique moment in time represents an opportu- nity to pause, think about the future, and make some investments in it.
Fixing a bridge or putting a new roof on the fire station might be a suitable use for some of the money, he went on, but overall, cities and towns have to think bigger. Much bigger. u
George O’Brien can be reached at [email protected]
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