KGH Phase III:



As of this writing, KGH Phase IIIA, consisting of ten new units of affordable housing located on Hollis and Kilby Street, has been completed and is currently pending sales. Consistent with our previous developments, these units have incorporated “Green” features. However, this phase of the development is unique from those previous to it being one of the area’s first housing development projects utilizing photovoltaic solar energy. The total development cost of the housing is approximately $270,000 per unit while the sales price is $130,000. The Main South CDC received $1,049,600 of HOME funds from the City and State to subsidize the development of these ten units and additionally, received $190,000 grant from Mass Technology Collaborative to purchase the photovoltaic cells.

Furthermore, work is underway on the KGH Phase IIIB, Kilby Street Townhouse Development, which will create 14 new units of affordable housing. The total development cost of the housing is approximately $250,000 per unit. The Main South CDC received $850,000 of HSF funds from the State and $650,000 of HOME funds from the City to subsidize the development of these 10 units.



The Grand Street Mill Development parcel is bounded by Hollis Street and the railroad tracks, which run parallel to Main Street, Gardner Street and Grand Street. The development of this block is crucial for the neighborhood as it abuts the new Boys & Girls Club and the housing associated with the Kilby-Gardner-Hammond Project. 93 Grand Street is an ideal site for a mixed use development project that would complement the existing redevelopment work done in Main South, reinforcing ongoing stabilization and revitalization efforts. Comprising four major parcels, the site currently houses several abandoned mill structures, some which are in good condition and suitable for conversion into high-ceilinged, loft-style apartments and artists’ live/work space as well as commercial and retail space. The total development cost of 93 Grand Street is $23 million. When completed, it is expected to generate approximately $200,000 per annum in tax revenue to the City of Worcester. It will create over 100 housing units of which about 20% will be made available to low and moderate income families as affordable housing. In addition, a mix of market rate and affordable housing will be augmented by amenities such as cafés, galleries and commercial/ retail space so as to support the target population.

The scope of the Grand Street Mills Development – an entire city block – is consistent with the Main South CDC’s comprehensive approach to community revitalization. As the developer, the Main South CDC will be responsible for facilitating all aspects of the development including the project design, financing, predevelopment (permitting, asbestos removal, environmental assessment and remediation, demolition), development (renovations and new construction), marketing the units and management of rental space. It will also be responsible for securing the community support as well as private and grant funding required to complete the project. The Main South CDC has full site control of 93 Grand Street area.





KGH Phase IV: 22 Units of Scattered Site Rental Housing (22 units –Development Cost $6.4 million)

The final phase of the housing development work in the KGH area is likely to be the work that is planned on upper Beacon Street, Hammond, Tainter Kilby Street and Gardner Terrace. Again, the CDC has acquired site control of all of the lots in this area upon which the proposed development is to take place and so the actual build out will be dependent upon the availability of grant subsidy.

The proposal is to construct a total of seven two and three family structures and a four unit multi-family low rise on these lots. The total development work will cost approximately $6.4 million. We expect that work will begin in 2010 and be completed by the early 2012. The housing will again be designed by DHK and will be consistent in design with the housing throughout the rest of the site.

The KGH plan presently accounts for the development of 93 units of new and rehabilitated housing of which approximately 43 will be for rental purposes. To date, 48 have been completed; 13 are underway and we are seeking grant funding to bring about the expeditious completion of the remaining 32 units.