In the News

SPRINGFIELD — The long-awaited start of construction at the former Court Square Hotel property at 13-31 Elm St. is ready to commence as the downtown property is being transferred to developers.

WinnCompanies of Boston, and co-developer Peter Picknelly’s Opal Real Estate, of Springfield, will transform the historic hotel site into apartments after the Springfield Redevelopment Authority completes a hazardous materials cleanup at the downtown site. Transfer of the property will not take place until after that work is completed in November.

On hand for the status announcement Thursday morning were Gov. Charlie Baker, Lt. Gov. Karyn Polito, U.S. Rep. Richard E. Neal, Mayor Domenic J. Sarno, MGM Springfield President Chris Kelley, Picknelly and Gilbert J. Winn, CEO of WinnCompanies.

“The only word that can describe this project is tenacity,” said Picknelly, adding his late father started project 25 years ago believing Springfield can’t reach potential without this property rehabbed.

The Court Square project and its financing were complicated and its preparation work took so many years that there are already 14 separate companies, government agencies and entities involved. Thursday’s news conference with Baker was meant to not only celebrate project but to thank every one of those partners, Sarno said.

“This is the date that clicked,” he said.

Thursday was also the date Baker, a Republican and one of the most popular governors in the country, tweeted his re-election endorsement of Neal.

Baker also toured the building as contractors continued their demolition work.

The partnership includes $5 million from MassMutual, $14.5 million from MassHousing’s Workforce Housing Initiative, and $16 million from MGM, with this funding collectively structured as a loan. The Developer, OPAL/ WinnDevelopment, has also secured approximately $11.3 million in state and federal historic tax credits. They will apply these historic tax credits together with developer equity, a conventional mortgage, and a commitment from the Unions Trades to assist with $500,000 of housing funds to round out the total of $51.3 million of required funding.

The Springfield Redevelopment Authority is currently having $4 million with of demolition cleanup work done inside. It’ll be done by Mid-November when 18 to 24 months of heavy construction will begin.

“This is a historic renovation,” Picknelly said. “This building has to be brought back to what it once was. That takes time and it is very expensive. This is a complicated project.”

Developers plan a 74-unit apartment with 59 market-rate upscale apartments and 15 workforce apartments restricted to tenants earning up to 80% of the area median income, and retail/restaurant space on the first floor. Plans also call for 11,000 square feet of retail on the first floor and another 11,000 square feet of office space on the second floor.

Parking will be located to the rear and residents will have the option of renting spaces at the MGM garage.

Mostly vacant for the last 30 years, the building at 13-31 Elm St. overlooks Court Square in the heart of Springfield’s downtown. Rebuilding projects went through a number of false starts over the decades but it remained a critical part of the city’s revitalization efforts.

MGM Springfield also invested $16 million in the project to satisfy its requirements under its agreement with the city to provide workforce housing downtown, all a part of a larger goal of having the $960 million casino project lift the neighborhood.

The $51 million project at 3-7 and 13-31 Elm St. will be mostly market-rate housing.

Developers are also counting on federal and state historic tax credits, federal New Market Tax Credits, Housing Development Assistance tax credits from the federal government and state workforce housing funds.

The project will create There will be 120 construction jobs created. All construction work will be performed by union labor, as per MGM’s agreement with the city.

“This is one of the largest investments we’ve made in a project of this kind” Baker said. “And we think it’s a bargain”

Speaker after speaker described how with the right mix of housing, retail and restaurant uses the Court Square neighborhood will attract people and commerce.

“This building, this neighborhood will come alive,” Picknelly said.