Left In Lowell

Member of the reality-based community of progressive Massachusetts blogs

November 7, 2008

Trinity: Need State Committment Now

by at 3:34 pm.

I suppose this was, in effect, inevitable, with the credit crisis…Trinity now says it needs the state to come through with its earmarked (though not completely committed) monies in the bond bill the state passed this year.

It’s another Matt Murphy article and it’s full of meat and lays out the situation clearly and fairly. Go read the whole thing.

Keefe, in a letter to Panagiotakos dated Oct. 15, told the senator he was counting on three key sources of state funding to move forward with construction. The timing of the request and amount of money being sought could prove to be very difficult to secure at a moment when the state is monitoring every penny closely.

Apparently this took the Lowell delegation by surprise, as they were not really ever told (by Trinity presumably) how much exactly Trinity was expecting in help from the state. The Appleton Mill itself is in such bad repair, I’d expect no developer would ever touch it except to demolish it without incentives…though how suddenly now telling us that the funding is urgent helps their case I don’t know.

Presumably (though I am making an assumption here) Trinity thinks or knows its investors are a bit spooked by the markets, but would be encouraged by city and state investment if it comes through quickly. Hopefully by spring the credit crisis is somewhat abated, but it is an extremely difficult atmosphere to develop in, even though the live-work spaces would be in demand (affordable housing rental units always are) and wouldn’t be available for two years, when it’s likely we’ll be in better shape economically.

Still, this isn’t the best news for the project, though rescue of the proposed schedule is still possible. Let’s hope that the Lowell delegation can work their magic and with a progressive and decidedly-pro-growth Governor and staff, I’m still not too worried yet.

5 Responses to “Trinity: Need State Committment Now”

  1. waittilnextyr Says:

    The financing of this project has been risky given the overall economic situation, so the current issue is not too surprising. What is surprising, however, is that the groundwork for the amount of State support was apparently not thoroughly executed. There should be no surprises on the level of public funding required at this time.

    Given the tenous financing situation, it would appear that the City/State should require some type of performance bond by Trinity before the infrastructure and other public funding is released. We cannot afford to make a substantial investment without assurance that there will be an economic return.

  2. Mimi Says:

    This disappointing. Trinity spent so much time and effort to get Lowellians involved in the discussion through the charette process, why didn’t they plan to do the same with the State delegation if they expecting (needed) so much State assistance in the launching of this project?

    This letter was written only three weeks after the City Council approved the land disposition.

    I am not optimistic.

  3. middle roader Says:

    I think there is more going on here, afterall this is Lowell. Everyone did or should have known that state or federal asistance would be needed for a project of this magnitude. There are numerous examples out there.

    Reading deeper into the story it seems there is support on all sides and there is money available. I think we need to watch everything unfold.

  4. Lynne Says:

    I agree, m.r. I do think that this will still go forward. I do wish Trinity had done more homework, keeping the officials in the loop, but we don’t really know the whole story here and I do think that everyone’s basically on the same page. The fact that the Governor’s office recognizes this as a Growth District really means something.

    Let’s wait and see. I would really love to put people to work getting this started in the spring on schedule. That’s a better stimulus package than handing everyone $300 to spend at the grocery store, IMHO. (Not that I would say no to Obama’s tax cut LOL.)

  5. Lynne Says:

    Oh and as mentioned, it’s pretty easy to assume this might have happened because of sudden private sector nervousness with regards to lending out credit, and that a commitment from the state earlier rather than later can assuage those fears and get the ball rolling.

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