COVER STORY, JANUARY 2005

PROFILES OF PROGRESS
Four northeastern cities work to keep their economic development agencies at the forefront of new development.
Lara Fuller

Cities across the Northeast each have their own unique character and style. The economic development plans of each area also vary in the ways they attract business and promote development.

Northeast Real Estate Business recently spoke with several economic development organizations to get an idea of what each city is about and what type of industry and development each city is looking for.

Dover, Delaware

Many know Dover as home to Dover Downs International Speedway, part of the NASCAR circuit. The city is also recognized for its gaming, horse racing and entertainment venues. But Dover has more going on than just racing and gaming — a comprehensive downtown revitalization project is currently underway.

The Main Street Dover organization was created to develop public and private partnerships in order to enhance and preserve the unique historical character of the downtown area, says Edwin Perez, executive director with Main Street Dover. “In the past 2 years, we’ve reached significant milestones,” says Perez. “We have developed four committees to coordinate the activities in our historic downtown area; appointed a membership drive committee to launch an annual giving campaign to increase our resource base; recruited nine new businesses in the downtown central business district; awarded 12 businesses awards through the Small Building/Big Impact façade program to promote the rehabilitation and restoration of their respective buildings in the historic corridor; and hosted financial workshops for downtown merchants.”

Right now, major parking developments, street and landscape projects, a new hotel project and the relocation of the city library are fueling the revitalization of downtown Dover. BBC Properties currently has plans to build a six-story hotel, known as The Collegian, which will feature 60 to 75 rooms, a pool and ground-level retail stores. A 374-space parking garage will also be constructed nearby. BBC Properties is also planning to develop a new location for the city library. The library has outgrown its existing site and a downtown address would benefit both the library and the redevelopment efforts going on downtown.

The population of downtown Dover is currently 4,000 people. The city hopes to continue to attract new businesses and projects to the area to encourage growth. “We are experiencing a slow renewed interest in downtown living but if we can convert these pending projects into physical outcomes, it will enhance the quality of life for downtown Dover,” says Perez. One issue the city is facing in its revitalization plans is dealing with abandoned buildings. “A big challenge is handling absentee property owners of vacant buildings,” says Perez. “However, we are in the process of developing new code and zoning policies to deal with this issue.”

Fitchburg, Massachusetts

Redevelopment of unused sites plays a large role in economic development efforts in the Northeast. In Fitchburg, Massachusetts, for example, the former General Electric site has been rehabilitated to create Putnam Place, which features almost 300,000 square feet of office and manufacturing space for large and small businesses.

The city of Fitchburg is currently in its fourth year of a 20-year urban renewal project. The $43 million initiative will help the city continue to attract new businesses, including light manufacturing and high-tech companies. The Fitchburg Redevelopment Authority (FRA) is working with the city of Fitchburg to stimulate the economy through redevelopment, removal of blight, implementation of the master plan, construction of industrial and business parks, and improved cultural and transportation opportunities.

At the center of the downtown revitalization project is the redevelopment of an existing facility. “The former General Electric site [now called Putnam Place] has been rehabilitated to create almost 300,000 square feet of office, and light and heavy manufacturing space for large and small businesses,” says Lisa Wong, executive director with the FRA. In addition, a new riverfront park, a 400-space parking garage, and 12,000 square feet of retail and office space are being developed as a part of the plan. “The project will accommodate the improved transportation services to Boston and within the region,” says Wong.

As a result of the urban renewal initiative, there has also been an increase in multifamily developments. “There have been several new projects in the downtown area to create new housing units from vacant or underutilized properties,” says Wong. “A recently approved project will create 36 new units for commuters in a former mill building near the commuter train station.” Another multifamily development, located along the river, will include 204 luxury units.

One of the primary goals of the FRA is to continue to revitalize vacant properties in Fitchburg. “We are assisting property owners with transforming vacant upper levels into housing units to attract people downtown,” says Wong. “We have a housing grant program for this purpose. The city has hired a full-time business development director to work with brokers and owners, as well as to market the city.”

The city of Fitchburg has a population of 40,000, with 15,000 residents living in the downtown area. Fitchburg State College, with more than 8,000 students, faculty and staff, is also located nearby. In order to increase the number of people that come to the downtown area, either as daytime workers or residents, the city is working closely with Fitchburg State College, Fitchburg Cultural Alliance, Fitchburg public schools, local businesses, citizen committees and the regional planning and transportation organizations. “Our goal is to create 600 new jobs, create new housing units in vacant buildings, demolish or rehabilitate blighted property and create a network of parklands for recreational use,” says Wong.

Warwick, Rhode Island

The city of Warwick is located 10 miles from Providence, Rhode Island, and just 60 miles from Boston. It also lies in close proximity to Cape Cod, Hartford and Newport. This location, coupled with the fact that two major interstates run through the city, has made Warwick an attractive place for businesses to locate. “Warwick is currently seeing numerous redevelopments of existing mill buildings to hotels and office centers, speculative office developments, reuse of existing retail centers, expansion of industrial facilities, and the reuse of brownfield properties for financial service and manufacturing uses,” says William Facente, director of the department of economic development in Warwick.

Warwick, Rhode Island, is home to a 76,000-square-foot Herff Jones manufacturing facility, which occupies a site that was vacant for 20 years prior to 2003.

The Herff Jones property is a great example of this reuse of vacant commercial/industrial property. In 2003, Herff Jones, a leader in the emblematic and commemorative jewelry industry, opened a new 76,000-square-foot manufacturing facility on a 25-acre site that was vacant for more than 20 years. This state-of-the-art facility, employing approximately 350 people, is home to Herff Jones’ high school ring division.

Another big project is the development of a train station at T.F. Green Airport, Rhode Island’s main airport. The development will include a rail station, parking garage and a people mover. While the completion of the actual train station is not expected until 2007, several companies are in the process of developing commercial ventures near the proposed site. Joseph Piscopio, a restaurant owner, is developing a 163-room Hilton Garden Inn, as well as an additional hotel and a 110-unit apartment building, all located adjacent to the site. The total cost of the project, which will be called Metro Center Plaza, is $55 million.

While there are a number of new developments in Warwick, much of the development is devoted to reuse and revitalization projects, primarily due to the scarcity of land. The city has faced challenges in finding available commercial and industrial land to develop. “To overcome this challenge, the city works closely with developers to find effective ways of revitalizing existing properties,” says Facente.

As nearby cities such as Boston and Providence continue to grow, many people, as well as businesses, will look at locations such as Warwick. The city offers the amenities and attractions of a much larger city with less congestion. In addition, the proximity of Warwick to other major metropolitan areas will encourage the growth of the city as a place to live and commute. “We will continue to promote and market the city of Warwick as a location to own and operate a successful business,” says Facente. “We also hope to grow the commercial/industrial tax base of the city while also maintaining the high quality of life for our residents that exists today.”

Hartford, Connecticut

When asked what type of development is going on in Hartford, Sandra Johnson, vice president and business development officer of the MetroHartford Alliance, simply answered, “A lot!” Hartford is flourishing, with a rapidly growing residential base that will attract a number of new businesses and developments. “Within the next year, we will have at least 1,000 new residences in the downtown,” says Johnson. “Leasing has been robust, bringing in higher rents than forecasted. We believe that having ‘feet on the street’ in our central business district will create a defining difference in the city.” One of the new residential projects includes the renovation of the Capewell Horse Nail Co. factory building into 92 condominium units and offices. The Sage-Allen Building is also being replaced with 78 loft apartments and 42 townhouses to be completed in 2006. The $43 million project will also feature 12,000 square feet of retail. Hartford 21 is a $155 million development that will include 262 units in a 36-story residential tower, 53,000 square feet of retail/restaurant space, 93,000 square feet of office space, 800 parking spaces and 35,000 square feet of public space. The development will be the tallest residential housing structure in New England.

The increase in residential construction has spurred the development of mixed-use and retail centers. In West Hartford, the $158.8 million Blue Back Square complex is currently being developed. The center will feature 30 retail stores, six restaurants, a 169,000-square-foot office building, a 30,000-square-foot Healthtrax fitness center, two parking garages, a plaza, a five-screen movie theater and 70 condominiums.

CIGNA is redeveloping its 655-acre office campus into a $300 million mixed-use development. A 7,180-yard championship public golf course is located at the site and a 246-unit apartment complex is currently under construction. The project will also feature 150 single-family homes, a 10,000-square-foot Bright Horizons Child Care center, a 16,000-square-foot retail component, Ruby Tuesday restaurant, Starbucks, hotel, conference center and 2 million square feet of office space.

Though the city is seeing a lot of new development, one of the most important projects for Hartford is Adriaen’s Landing. The $874 million project is part of a comprehensive effort to re-energize the city. The 30-acre site will feature the Connecticut Convention Center, a Marriott hotel, retail space, science center and multifamily developments. The project is expected to open this year.

Even with all of this growth, Hartford has still faced difficulty in getting itself known. “One challenge for the Hartford region has been the lack of image,” says Johnson. “Surveys found that we did not have a poor image, but rather we did not have a distinguishing image, which is important when trying to be ‘top of mind’ for those making key location decisions.” To remedy this, the city recently launched a new marketing campaign, “Hartford, New England’s Rising Star” to promote what the area has to offer. Johnson explains, “The campaign focuses on improving both perceptions and attitudes of Hartford as an outstanding place to live, work and play.”

Burlington, Vermont

Burlington Community Land Trust has developed 300 Lake Street, a 40-unit multifamily complex in Burlington.

Burlington has received multiple rankings as one of the top places to live and work in the United States. One of the reasons for the city’s success is the benefits it offers businesses. The city has a high-tech telecommunication system, a number of business/education partnerships and an educated labor force. “Greater Burlington also offers an outstanding quality of life that includes vibrant downtowns with world-class shopping, restaurants and cultural amenities, and a natural playground for activities such as golf, tennis, sailing, hiking, biking and skiing,” says Bruce Seifer, assistant director for economic development with the community and economic development office in Burlington.

The high quality of life in Burlington continues to attract new residents. To accommodate this, there are several multifamily projects underway. At 300 Lake Street, Burlington Community Land Trust has developed a $4.8 million, 40-unit complex. Thirteen loft units with retail are being constructed at 45 Cherry Street The $2 million project is being developed by the city and Retrovest. At 114 College Street, a $2.95 million, 50-unit residential building is underway, which will also feature a three-story parking garage and two commercial units.

In Burlington, Vermont, Main Street Landing Company is building a project that includes office space, a theater, retail space, and a 56-car underground parking garage.

The city of Burlington is also home to a number of students, as the University of Vermont is located in the city. Redstone Campus, a new student dormitory with 200 apartments, is being developed for $12 million. University Heights, an 825-bed dorm, is being developed for $35 million. A $51.3 million student center and theater are also being developed on the campus.

The waterfront area of the city is also undergoing a large-scale renewal. “The city has assumed the lead role in efforts to redevelop the Burlington waterfront, one of the community’s most important visual and recreational resources,” says Seifer. “The city has also spearheaded a number of planning and infrastructure development efforts. A priority for the city is to continue redevelopment of the waterfront as a mixed-use neighborhood accessible to all city residents for business, housing and recreation needs.”

Some of the projects completed in the area include a new lake education center, a science lab, train station, Coast Guard station, skate park, fishing pier, museum, sailing center and lighthouses. At the corner of Lake and College streets, the Main Street Landing Company is currently building a $12 million project that includes 34,000 square feet of office space, a theater, retail space, a 56-car underground parking garage, sculpture garden and promenade. Also on the waterfront, the Depot Street Housing project is underway with 40 units of mixed-income housing. At the corner of Cherry and Battery streets, the city of Burlington recently purchased a parcel of land, which will be developed into a 114-room hotel, mixed-income housing and a 193-space parking garage.

“The ability to enhance and maintain the vitality of Burlington’s downtown is the core economic development strategy for the city,” says Seifer. “A strong and vital downtown enhances the quality of life for local residents.”


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