Redevelopment Set With City Bond OK
by Tim Buckland, Times Staff Writer
First published: Tuesday, May 21, 2002

The city is buying properties at 109 and 110 Emerson Place and at 711 State St. from Larry V. Silverstein for $197,000 in a deal brokered by Mayor Joseph M. Butler and City Manager Jerry C. Hiller after about a month of negotiations.

The city also is providing more than $339,000 worth of demolition and construction work toward the $4.1 million project, which calls for rehabilitation of the century-old Emerson Row apartment building and renovation of a dozen other houses near the apartments, as well as for the area surrounding Emerson Place.

Workers have started surveying the site and construction is scheduled to be completed by this year.

A $605,000 bond authorization will cover those costs, along with the purchase and demolition of two other properties in the area, some closing costs and contingency costs, said Mary M. Corriveau, assistant to the city manager.

However, the city will not actually borrow that much money, Mrs. Corriveau said. The city has estimated that it will contribute but not be reimbursed for $135,100 of the project's cost through in-kind services, such as labor and equipment provided by the city.

While the city will not borrow money to cover that cost, she said, it still had to be factored in to the project's overall cost.

"The bond ordinance has to be for the total project cost," she said. "While they have authorized the $605,000, we will not bond for that amount."

The city will be paid back much of the money it spends toward the project if two grants worth a total of $503,000 come through.

At question are a $250,000 Federal Home Loan Bank grant Neighbors of Watertown was denied in March, but has reapplied for, and a state Community Development Block Grant for $253,000 the city has applied for to pay for demolition and construction for the project.

The Federal Home Loan Bank in March denied Neighbors the $250,000 grant because Neighbors was unable to acquire Mr. Silverstein's properties.

If the $250,000 grant comes through, Neighbors will use $192,000 of that money to reimburse the city for its acquisition and demolition costs on the three Silverstein properties.

According to a spreadsheet compiled by Mrs. Corriveau, the city would be responsible for cash outlays of as little as $24,900 if both grants come in, and $376,400 if neither grant is awarded. Neither of these figures include the $135,100 in city work on the project.