CitySquare needs support, not rancor.

Byline: Robert Z. NEMETH

COLUMN: ROBERT Z. NEMETH

City Manager Michael V. O'Brien believes Young Park's recent discussions with business leaders and city councilors about the status of the $563 million CitySquare project were "most beneficial." Mr. Park is president of Berkeley Investments Inc., a Boston-based company engaged in remaking a large section of Worcester's downtown.

"Great things happen here in Worcester due to strong interpersonal relationships and solid communication," Mr. O'Brien said. "Young's face-to-face candid conversations serve to strengthen those local relationships. It eases doubt, dispels rumor and builds trust."

The meetings followed harsh criticism of the project's slow progress by some city councilors, public comments the tone of which revealed election-year grandstanding rather than common sense. "This has been ridiculous," declared Michael C. Perotto at a council meeting last month. "It's now time for him to show his face. I've been very patient, but my patience is gone. Let's be honest with this community: Is it going to happen or not?"

Understandably, Mr. Park took exception. He pointed out that CitySquare, while receiving public support, is essentially a private project owned by Berkeley and that the "city is not exposing itself to any risk." Actually, there are "measured risks" for both parties. This private-public partnership, the largest in Worcester's history, entails nearly $93 million in public money. The state contributed $25 million, in addition to about $7 million in federal funding. Much of the city's $61 million share will come through DIF bonds, an economic development tool that allows borrowing against anticipated tax revenues. Private investment is well over $400 million. Disbursement of public money is in four phases, commensurate with the project's progress. Ample protection is built in for both sides.

Berkeley purchased the mall at a bargain-basement price. It could cut its losses and walk away without suffering a crippling financial blow. But for Worcester, the future of downtown hinges on the outcome of this massive urban renewal and economic development enterprise. Failure would be a major blow. A setback of such magnitude would be hard to overcome anytime soon.

That is why rapport with Berkeley is particularly important. And that is why intemperate grandstanding by Mr. Perotto is ill-advised, as is the meaningless rhetoric of Gary Rosen, who implored the developer: "Mr. Park, tear down the mall!" They not only antagonize the city's partner in a crucial enterprise, but send an ominous message across the development community: Don't try to come to Worcester because you're likely to encounter a hostile environment.

Mr. Perotto's conduct was especially irritating because it brought back memories of an earlier example of heavy-handed interference. On March 6, 2002, I watched him - then a member of the Commerce and Development Committee that he now chairs - take apart a comprehensive economic renewal plan for Union Station and Washington Square by the Worcester Business Development Corp., the city's eminent developer of private and public projects. The master plan, complete with implementation strategy, was drafted by top-notch economic and real estate experts and based on the conclusion that "Union Station is unsustainable without a complimentary development scenario."

The council threw out the plan for all the wrong reasons: neighborhood squabbling, dispute over traffic patterns and the influence of special interests. WBDC bowed out and moved on to such rewarding endeavors as the CenTech Park in Grafton and the amazing Gateway project in Worcester, one of the most remarkable urban renewal successes. Meanwhile, nearly empty Union Station remains a drain on the local economy, and Washington Square is a shambles. As Mr. Park pointed out, it has taken 10 years of preparations to build a parking garage behind the station - and it's still not done.

Both Young Park and the city manager remain optimistic about CitySquare. Berkeley hired a national company, Jones Lang LaSalle, to market the project, which involves the demolition of the defunct outlet mall, and complete remaking of 20.2 acres of land in the heart of the city into retail, commercial and residential space. The work entails an underground garage, opening four new public streets, pedestrian ways and plazas. It will reconnect the rest of downtown with Washington Square and Union Station. Predictions include 2,300 construction jobs and 1,700 permanent positions.

The developer believes a combination of political, economic and demographic forces augur well for CitySquare. So does the city manager. "We must recognize there are more moving parts in a project of this magnitude than in the Hubble Telescope," Mr. O'Brien told me. "Each is key to success: the national economy, state economic development policy, the development push westward, construction costs, the real estate marketplace, demographics, public support, the city's financial health, and so on. We have to recognize these broader economic forces, support Young Park and his team each step of the way, and capitalize on every opportunity."

However, the complex arrangement has some Catch-22 elements. While some potential tenants might be encouraged to locate here once construction is under way, Berkeley's agreement with the city stipulates that construction cannot begin until sufficient numbers of tenants are lined up to lease 275,000 feet of office space in designated "trigger buildings." The second phase of disbursement, an $18.5 million payout, provides for the demolition of much of the former mall, preparation for the new garage and new streets.

During an interview a year ago, Mr. Park said he was looking to Worcester's business, professional and academic communities to provide the bulk of occupancy in the trigger buildings.

"So far it has been a city-Berkeley show," he said. "Now we need local business involvement." He warned against inflated expectations and recommended a cautious approach. "The worst thing that could happen is to tear down the mall, and then have the project stopped," he said.

Mr. O'Brien suggested Mr. Park should keep the community abreast of progress. "Again, it's all about relationships," he stressed, "It is important to engage members of the public in a project they support. They appreciate candor, expect the truth and wish to hear updates. It forms the very foundation of mutual respect between the partners. This is the most important element of our long-term partnership and success."

Mr. Park has said, time and again, that he believes in Worcester's capacity to grow and prosper. "We don't intend to fail," he said. "There's a great story unfolding in Worcester, and I want to be part of it."

When a city councilor recently asked what the council could do for him, the developer replied: "Moral support." Given the huge stakes inherent in this partnership, that doesn't seem too much to ask.

Robert Z. Nemeth's column appears regularly in the Sunday Telegram.