2003 Section 108 Project Summary - Massachusetts

Economic Development

Hotel Development Loan Fund
BORROWER: BOSTON
STATE: MA
COMMITMENT AMOUNT: $40,000,000

The City of Boston will utilize $40,000,000 in Section 108 Loan guarantee assistance to establish a loan fund, the Boston Hotel Development Loan Fund, to assist in financing new hotels in the city. The funds will be used to assist three or four hotel projects that have building permits and other approvals but have funding gaps. The new hotels are expected to provide important public benefits, including an estimated 800 to 1200 new permanent jobs, up to 1500 new hotel rooms, $12 million in new tax revenues, and $6 million in linkage fees that will be used for affordable housing and job training funds. The loan fund seeks to stimulate the creation of large hotels; therefore, only hotels with at least 150 rooms will be eligible to apply. The maximum loan size will be $15,000,000 and the target loan size will be $10,000,000. A requirement of the program will be that at least thirty percent of the project costs are paid for with owner equity. The total investment associated with the project is estimated at $400 million.

Good Harbor Fillet Co.
BORROWER: GLOUCESTER
STATE: MA
COMMITMENT AMOUNT: $300,000

Gloucester, Massachusetts, received a $300,000 Section 108 loan guarantee commitment to assist Good Harbor Fillet (GHF) in constructing a 67,000 square feet building to consolidate GHF's office, production, and warehouse operations into one facility. Specifically, the City will lend the Section 108 Loan proceed to GHF to assist with purchasing equipment. GHF is a major employer in Gloucester and this project will assist in the creation of nine full-time equivalent jobs, of which 51% will be available to low- and moderate-income persons. The proposed activity will meet the national objective of creating jobs for low- and moderate-income persons.

Basketball Hall of Fame
BORROWER: SPRINGFIELD
STATE: MA
COMMITMENT AMOUNT: $4,706,000

The City of Springfield was awarded a $4,706,000 loan guarantee under Section 108 to finance the development of the retail and theater component of the Basketball Hall of Fame Project. The project is located in the City's Neighborhood Revitalization Strategy Area and its urban renewal area. The project is located on an 18-acre site owned by the Springfield Redevelopment Authority. The project will benefit low and moderate-income persons through the creation of 117 jobs, of which 51% of the jobs will be held by, or made available to, low and moderate-income persons.

Housing

Robertson on the River Project
BORROWER: TAUNTON
STATE: MA
COMMITMENT AMOUNT: $600,000

The City of Taunton, Massachusetts has received a $600,000 Section 108 loan guarantee to assist a for-profit developer in financing the acquisition of an old mill building which will be converted into a mixed residential/retail project to be known as Robertson on the River. The project will redevelop the 144,000 square foot former Cohannet Mill Number 3 (also known as the Robertson Mill building) located in Weir Village, one of the City's oldest neighborhoods. The plan calls for development of 65 affordable rental units for individuals and families on three floors with 18,000 sq. ft. of retail space. The units will include one, two, and three bedroom units. All units will be affordable to households with incomes at or below 80% of area median income.

Public Facilities

New Bedford Oceanarium
BORROWER: NEW BEDFORD
STATE: MA
COMMITMENT AMOUNT: $3,000,000

The City of New Bedford, MA, has been awarded a $3,000,000 loan guarantee under Section 108 to assist the New Bedford Oceanarium Corporation, Inc. ("NBOC") to finance construction of a 672-space parking garage and adjacent surface parking lot of 396 spaces as part of the development of an aquarium complex in the City's historic Harbor area. The City will loan the Section 108 funds to NBOC who will construct and operate the parking facilities. The parking will be located on property adjacent to a former power plant structure currently owned by ComElectric, which will be renovated as part of the Oceanarium. Phase I, which includes the parking construction, is planned to be a 1.4 million-gallon aquarium with interactive side gallery exhibits displaying the marine resources of the region. Total project costs are estimated to be over $137,000,000. A HUD Brownfields Economic Development Initiative (BEDI) grant of $2,000,000 was awarded to the City in September, 2001, to assist in cleanup of environmental contamination in the power plant. The development of the Oceanarium is an eligible economic development activity that will meet the criteria for the national objective of benefit to low- and moderate-income persons through the creation of jobs. Phase I is expected to result in the creation of 145 new full -time equivalent jobs, of which at least 51% will be filled by low- and moderate-income persons.

Mass MoCA Commercial Development
BORROWER: NORTH ADAMS
STATE: MA
COMMITMENT AMOUNT: $3,774,000

The City of North Adams, MA, in cooperation with the Commonwealth of Massachusetts, has been awarded a $3,774,000 loan guarantee under Section 108 to assist in rehabilitating two buildings in the Massachusetts Museum of Contemporary Art (MASS MoCA) complex. The project also includes an Economic Development Initiatives (EDI) grant of $2,000,000, awarded in 2000, which will also be used for the renovation and for payment of interest on the Section 108 loan. This award assists in financing Phase II of the expansion of the MASS MoCA cultural complex, in line with their long-range plan to generate commercial revenues to help sustain the cultural activities. The complex is located in downtown North Adams on a former mill complex and is listed on the National Register of Historic Districts. Guaranteed Loan Funds will be used to carry out an eligible rehabilitation activity which will meet the criteria for the national objective of eliminating slums or blight on an area basis.

 
May 19, 2011