Wrecking Ball For Worcester's Denholm Building After Proposals Picked

WORCESTER, MA — Worcester will pursue two ideas for the redevelopment of the former Denholm building downtown after four development companies from across the U.S. pitched proposals last month.

The top two proposals — from Washington, DC-based Menkiti Group and Stamford-based RMS Companies — will now be evaluated by the city's economic development department and ranked by how advantageous they are for Worcester.

Both proposals call for a mix of apartments and retail on a portion of a downtown block between Main, Chatham and High streets. Both proposals also call for the demolition of the Denholm building, a former department store built in 1884, but refit in the 1950s with a mid-century facade.

The four proposals were presented to the Worcester Redevelopment Authority (WRA) at a meeting Thursday morning. Worcester Chief Development Officer Peter Dunn told the WRA the two other Denholm proposals did not meet the city's minimum criteria. One developer said it would not submit a deposit for its proposal, and another did not meet the employment and inclusion policy for city-sponsored developments.

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Whatever developer Worcester selects, the company will have to purchase the Denholm site for $3 million — although the city is offering a $2.5 million demolition credit. The WRA bought the Denholm building in August for $3 million after the city authorized a $6.8 million loan for the purchase, which includes the demolition amount and relocation assistance for Denholm tenants. The building was most recently used as an office condominium.

Menkiti's plan calls for 233 new residential units with about 20% set aside as affordable, and 10% accessible for disabled renters. The project would be split between a 10-story building along Main Street and an 11-story building along High Street. The proposal calls for up to five commercial storefronts along Main Street, a promenade open to the public and more than 200 parking spots split between a surface lot, underground garage and 10 spaces in front.

Menkiti has already completed or is in the process of constructing several projects in Worcester, including the luxury Chatham Lofts building along Chatham Street, the renovation of the former Shacks Clothes building along Main Street and a planned redevelopment of the former RMV office along Main Street.

The RMS plan calls for 200 luxury apartments at the Denholm site with 130 covered parking spots and about 6,600 square-feet of commercial space along Main Street. The proposal would keep an attached parcel along Chatham Street as parking, but reserve it for possible future development. The company has completed many residential projects in the Northeast, with several in New Haven, Stamford and Hartford, where the company developed a residential building near that city's minor league baseball field.

Dunn told the WRA the economic development department will interview each developer and score their proposals before returning with a final recommendation. The city will give the highest marks to the project that could break ground within 18 months of taking ownership of the site.