WOOSTAPRENEURS TOUT DIVERSITY, INSIDE THIS EDITION COLLABORATION, • NEW DEVELOPMENTS • SMALL BIZ ROUND-UP PAGES 8&9 • GAME CHANGERS EXPO • EDITORIAL/OPINION

WORCESTER REGIONAL CHAMBER OF COMMERCE NEWSPAPER • VOL. 1 ISSUE 1 - NOVEMBER 2016 Tax classification, by the numbers Need for more 2016 Commercial / Industrial Tax Rates Worcester and Surrounding Communities equitable city

Residential properties account for tax rate weighed West 71.0% of the valuation with business Boylston WORCESTER – With a City Council vote Boylston accounting for 29.0%. Holden $18.45 likely scheduled in December to set a new $17.25 $16.37 residential and commercial/industrial tax rate, However, businesses are paying Northboro recent developments have underscored the Paxton $17.17 for 40% of the levy while residents $20.59 need for a more equitable percentage to ease the are paying 60% burden placed upon many businesses. WORCESTER*WORCESTER Shrewsbury Westboro The Fiscal Year 2016 Indicates a reduction in $33.98 $13.00 $17.77 the business tax rate Leicester * Worcester residential tax NEWS Business NOTE: All are single rate communities $14.90 Tax rate is $20.61 per $1,000 ANALYSIS Rate Community Grafton of assessed valuation and Auburn Millbury 13.00 Shrewsbury $16.75 $24.31 $16.46 the commercial/industrial property tax rate is 14.90 Leicester * $33.98. That commercial rate is projected to 16.37 Boylston rise even further next year. Worcester’s 2015 Sutton 16.46 Millbury Oxford residential tax rate was $20.07 per $1,000 assessed $16.68 $16.93 16.68 Sutton valuation and the commercial/industrial tax rate 16.75 Grafton was $31.73. 16.93 Oxford As it now stands, Worcester sits at a competitive 17.17 Northboro disadvantage to tax rate structures as compared 17.25 Holden to surrounding communities. Every year the 17.77 Westboro Chamber compiles a fiscal analysis of the region’s 18.45 West Boylston residential and commercial/industrial tax rates. 20.59 Paxton In 2016, Worcester’s residential properties 24.31 Auburn accounted for 71 percent of the total valuation with businesses accounting for 29 percent. 33.98 Worcester However, Worcester businesses are paying for 0 5 10 15 20 25 30 35 40 percent of the levy while residents are paying only 60 percent. This forced an 11 percent or $30 million shift of the city’s residential levy to Property Tax Base Levy commercial/industrial properties in 2016. (Valuations) (Property Taxes Collected) Most tax rates in surrounding towns are going $11,236,881,245 $274,868,950 down or holding stable. Worcester’s commercial tax rate has steadily risen for many years. The Businesses account city is only one of two municipalities out of 14 for only 29% of property values area towns that still utilizes a dual tax rate. Even but are paying 40% of the burden. the city of Boston’s commercial tax rate is $7 lower than the city’s. Businesses Businesses Moreover, Worcester’s average residential 29.0% 40% tax burden is also lower than surrounding communities, with the cost per square foot less Residents Residents than half of neighboring towns resulting in 71.0% 60% Worcester residents getting a greater value for Portion of their investment. An average home’s price per the residential square foot in 2016 for Worcester was $92 with levy shifted to Dual tax Rate Communities the next highest cost being $143 in Millbury. businesses in 2016 * Meanwhile, Worcester enjoys the second lowest 11% or $30 Million residential property taxes among five abutting towns at $3,916 for the average homeowner SEE TAXES, PAGE 16 Game Changers show in force at conference WORCESTER – In a sold out Worcester the country is really a sweet spot to be in,” Regional Chamber of Commerce event, said Lt. Gov. Karyn Polito, who served as Game Changers from across Worcester one of two keynote speakers along with and Central Mass. converged upon Worcester Railers pro hockey team owner Mechanics Hall Oct. 14 to celebrate Cliff Rucker. business innovation while envisioning During her remarks, Polito highlighted ways to attract even more development to recent initiatives her administration has the city. brought to fruition, including a MassWorks “The fact that we can match our history grant to help enable the deal with Franklin Timothy P. Murray, president and CEO of the Worcester Regional Cham- with being the most innovative state in ber of Commerce, speaks before a large audience gathered at Mechan- SEE EXPO, PAGE 15 ics Hall during the Game Changers Business Conference. PAGE 2 • IN THE NEWS - NOVEMBER 2016 Region hails From left, Kathryn Meng, a senior program advisor at the Worcester Clean Tech Incubator, travels to Boston aboard Heart the Express Train with friend Kyla Pacheo of the to Hub Worcester Idea Lab. Express

WORCESTER – Judging by the long traffic jam on the MassPike near Newton May 23, the Express Train's non-stop commuter rail trip from Worcester to Boston won by a mile with more than 300 riders aboard. Trading in car keys for ticket stubs will offer commuters a net time savings of around 30 minutes per trip. The previous Worcester-to-Boston commuter rail schedule for the Framingham/Worcester lines could take more than 90 minutes with as many as 16 stops along the way. “This is a talent train,” said Worcester Polytechnic Institute President Laurie Leshin during remarks delivered inside Union Station with six students along for the ride. “This brings the talent in Worcester to the opportunities in Boston. My dream is Lincoln Square is the next Kendall Square.” The non-stop train service has long been not only a dream but an active pursuit for former Lt. Gov. Timothy Murray, now president and CEO of the up to more than $30 million in de-stressing tracks market in Boston,” Augustus said. Worcester Regional Chamber of Commerce. At South and infrastructure upgrades. Murray helped envision Echoing the city manager's thoughts, Polito added Station, Murray said the train would link millennial and channel some of these enhancements during the that Worcester is “an affordable, livable place to have workers to high tech and new economy start-up Gov. Deval Patrick administration and previous to a good and exciting life yet still feel connected to the companies, spurring economic development. that as a city councilor and mayor working alongside innovation economy in our capitol city or even here “The things that drive the Worcester economy the Worcester legislative delegation. in Worcester.” Congressman Jim McGovern spoke are the same things that drive the Boston economy. Worcester Mayor Joseph Petty called the new line to the tax benefits commuters can now capitalize There is a natural synergy in the underpinnings of critical to the continued transformation of Worcester's upon in parity with drivers. “It never made any both economies,” Murray said. “This was not just a economy, building the middle class, taking traffic off sense to me that our tax code gave preference to transportation imperative, it was also an economic of the MassPike, and getting city residents to Boston parking benefits over mass transit. That has changed one if we're going to be serious about keeping people faster. “Worcester is closer than people think with our permanently on the federal level.” McGovern said and companies in Massachusetts.” thriving biomedical industry, medical breakthroughs similar Massachusetts' legislation is now in the works. Crediting current Lt. Gov Karyn Polito, who also at UMass Medical, and growing neighborhoods,” MassDOT Secretary Stephanie Pollack, who rode attended the event, for making sure this service Petty said. “One train is good, two would be better, on the train with Polito and her peers, reflected remained a priority for state transportation officials, and three would be wonderful.” on the Express Train as part of a wider update of Murray said the state has invested in significant City Manager Edward Augustus called the new commuter rail schedules, calling the new times the improvements along the tracks to facilitate the non- service the most important tool to entice investments most substantive changes in decades that will lead stop service over the past 10 years. by developers in the city. “When I tell them we're to improved service. While there are no ridership Those enhancements have included moving the going to have one hour service back and forth projections for the new non-stop service, Pollack is rail yard, acquisition of the track, new rail ties and from Worcester to Boston, their eyes light up. They confident that word of mouth will spread fast in the better signalization, and new rolling stock with understand the opportunity this presents for them city supported by active promoters at WPI, the city, locomotives and coach cars to add capacity, adding and to take advantage of a very expensive housing Worcester Chamber and Action Worcester.

st ANNUAL 141 MEETING FRIDAY, DECEMBER 2, 2016 Noon - 2 pm Discover the intellectual capital LOCATION DCU Center | 50 Foster Street | Worcester of Central Massachusetts. PROGRAM FEATURES SCHEDULE • New Officers and Directors 11:45 a.m. Registration More than 8,000 students graduate annually from our 12 area institutions. • President’s Report 12:00 p.m. Luncheon Access them all in one Career Fair on March 29, 2017. • Advocate of the Year 12:45 p.m. Program • Keynote Address 2:00 p.m. Adjournment The Live. Work. Play. Stay! Internship and Career Fair will take place from 3 - 6 pm at Worcester State University. Presented by REGISTER: WorcesterChamber.org

Employer registration and sponsorship KEYNOTE SPEAKER information is available online at EDWARD M. AUGUSTUS, JR. has worked in public www.worcesterchamber.org or contact service for more than 20 years. City Manager Augustus Karen Pelletier at 508.753.2924, ext. 229 has focused on continuing Worcester’s economic development renaissance, supporting education and or [email protected]. youth, and making city government inclusive for all residents of New England’s second-largest city. IN THE NEWS - NOVEMBER 2016 • PAGE 3 Feeding start-ups for Aggregation, Marketing, and Distribution segment is providing New Food greater market opportunities for local farms by offering logistical support to Hub tenants help increase the produce purchased by local institutions, as well as the amount of affordable, local, healthy food fire up plans available in underserved communities. Worcester Public Schools, QCC, WORCESTER – Piloted in January College of the Holy Cross, and 2016, the pieces are now in place for Worcester County Food Bank have the Worcester Regional Food Hub been consistently increasing local to fully implement its three-tiered sourcing through our offerings and the mission to enhance food producer Food Hub began selling local produce and local consumer networks, targeted to two different mobile farmers’ workforce development programs, and markets serving the city of Worcester, small business incubation. REC Mobile Farmers’ Market and As a collaborative effort between Black Seed Market. the Regional Environmental Council “We have the largest concentrations (REC) and the Worcester Regional of small farms of anywhere in the state, Chamber of Commerce, the Food Hub Johnson said. “Scaling up is their biggest program has launched its first-ever challenge. Farmers’ markets are a very Commercial Kitchen Incubator. The common opportunity for farming. But facility, located at the Worcester County farmers’ markets aren’t helping entire Food Bank at 474 Boston Turnpike communities eat. Institutional buyers Road in Shrewsbury, will provide a provide scales to those farms for them regulated commercial kitchen, culinary to sell.” training, and planning assistance to Professor Dr. Ramon Borges- support the development of food Mendéz, who works at the Community businesses by farmers, caterers, and Development and Planning at Clark other food entrepreneurs looking to University, originally teamed up with start or grow an existing business. REC and the Central Massachusetts Food Hub Operations Manager Regional Planning Commission to Dave Johnson, a Quinsigamond Manager Dave Johnson in his commercial kitchen, also shown below. submit a grant to the USDA requesting Community College graduate who funds to investigate feasibility of brings nearly 10 years of agricultural called YouthGROW, which is dedicated Program that rolled out last July aims creating a food hub in Worcester. A experience and four years of food hub to fostering youth mentorship and to provide employment opportunities subsequent $524,485 grant from the operations management in the non- employment opportunities. “We have to chronically un/under-employed health foundation is funding the one- profit sector to the position, said the an urban farm in downtown Worcester populations through a comprehensive year pilot program. incubator has already brought on area and they have a line of hot sauce that education in both classroom and work The pilot year goals seek to recruit food entrepreneurs and farmers as kids have sold at the farmers’ market environments in partnership with incubator tenants, coordinate business stakeholders. Chamber President and for a few years now,” Johnson said. “Our Quinsigamond Community College. assistance services for tenants, and offer CEO Timothy P. Murray is co-director kitchen allows them to really scale up Johnson said two cohorts of 10-12 co-packing services to assist farmers of the project. that operation.” students will be created through a with enhanced sales. Of the currently permitted tenants, Cost for tenants is $25 per hour certificate program where students will From a culinary perspective, the four are farmers creating value-added to use kitchen facility, and there will receive 50 hours of classroom training kitchen also hopes to define a navigable products (Seven Hills Farmstead, be a cap at the incubator kitchen for over three to six weeks, followed by process for new tenants regarding a YouthGROW Urban Farm, Autumn vendors subject to the scheduling of a four-month internship with an bevy of regulatory hurdles they will face Hills Orchard, and Flats Mentor Farm), REC staffing. “We are really trying to institutional partner. The culinary out in the real world by working closely tailor the program to tenant needs,” said training cohorts have begun with one produces baked goods (RUKA), with local and state health officials. and two create specialty food products Johnson. As a food justice organization, training this past October. Food Hub wants to create low barriers (Giacomo’s Gourmet Foods and Peg’s Applicants and inquiries should call for entry into the program. The kitchen MARKETING/DISTRIBUTION Preserves). Thus far, the kitchen has Johnson at 508-799-9139. yielded products ranging from local incubator application simply asks for jellies and pickles to organic granola, culinary experience, product offerings The Food Hub program’s Hub baked confections, and culturally and basic demographic information. specific foods. Program participants REC staff then sit down with promising are local business owners based in applicants to determine their goals and Central Massachusetts and range in experiences and what support they Discover Central Massachusetts… entrepreneurial experience from 0-5 need.” New regional tourism council announced years. Most tenants are currently selling to help promote Worcester and the region direct to customers with the goal of CULINARY TRAINING PROGRAM reaching wholesale markets within the With dozens of new restaurants and new cultural attractions — from coming year. The two other tiers of the Food Hub Johnson said the kitchen will also program have spread their wings as well. theatre to art galleries to unique shopping experiences, Worcester and be utilized by another REC program The Food Service Culinary Training Central Massachusetts have become must-see destinations. That’s why the Chamber of Commerce and its affiliates were proud to partner with the new regional tourism agency, aptly named Discover Central Massachusetts, on its efforts to market Worcester and 35 cities and towns that make-up Central Massachusetts. The new agency, which was created in 2015, is housed at the Chamber’s Worcester office at 446 Main Street, in Worcester. Discover Central Massachusetts launched a new web site portal at www.discovercentralma.org earlier this month, complete with a calendar of events, business listings of restaurants, hotels, and attractions, as well as blogs on the best places to enjoy. You can follow Discover Central Massachusetts @visitcentralma on Facebook, Instagram, and Twitter.

Visit DiscoverCentralMA.org to find out more! PAGE 4 • IN THE NEWS - NOVEMBER 2016 Manufacturing confronts growth manufacturing. But she has also discovered that like many areas of Central Mass., there is a waiting list of Workforce shortage a key concern students who want to enter vocational technical high schools. WORCESTER – Capping off a month-long careers in manufacturing, including straight out of “In meeting with superintendents, they have discussion and tours of manufacturing prowess high school, trade or via internships. told me they don’t quite know what to do because throughout Central Mass., three experts gathered at “For us, you start at the shop floor level,” Zea said. they are busy preparing kids for college preparatory Saint-Gobain’s historic North Hall Oct. 27 to examine “A lot of what we do is on-the-job-training for those education,” Hebert said. “These kids are most at risk ways to attract the next generation of workers. who want to do work with their hands in materials for dropping out of school.” In recent years, Massachusetts’ manufacturing sciences like putting together a mold, filling that Herbert said what the Valley is trying to do is get companies have seen a 67 percent increase in jobs mold, and then making a solid from there. What are these students acquainted with local manufacturers created, 71 percent increase in the number of new the physical properties that drive that?” and also bring guidance counselors along for tours. hires, 63 percent increase in sales and 79 percent Zea added that “watching sheet steel be pressed This year, four busloads of students journeyed to increase in cost savings. Manufacturing in Worcester at thousands of tons of pressure at 12 miles an hour local businesses and a few for day-long apprenticeship was the strongest sector in comparison to Boston, through a factory and my wheel is grinding the side programs. This year the chamber is looking to expand as reported in the most recent census. Across of that to make sure its surface is as shiny as possible by bringing manufacturers into the classroom for Worcester County, 31,279 people were employed for that kitchen countertop you’re making is a really presentations, and possibly customizing school in manufacturing, and nearly 10,000 people had interesting connection to make. This all starts back at curriculum for students poised to enter that industry. city-based manufacturing jobs. State-wide, 300,000 raw materials.” Bill DiBenedetto, president of Lampin Corp. in people work in manufacturing but much of that Not every manufacturing job has to be on the shop Uxbridge who serves as chair on Hebert’s chamber same workforce is also nearing retirement age. floor, either, according to Anna Robertson, human manufacturing committee, said he can’t encourage Worcester and Central Mass. parallel a resources manager at Eaton Corp. Customer service, his peers enough to get involved in local schools. manufacturing workforce gap nationally with more human resources and administrative roles are also “It really is an avenue of opportunity to reach out than 2 million unfilled jobs projected within the next in demand. She recommended that new applicants to middle and high schoolers in regular programs, decade, with at least 100,000 of those expected here really think long and hard before and during a job not technical programs. We try to supplement that in Massachusetts by 2020. A 2014 UMass Dartmouth interview about whether that potential role fits their by giving kids an opportunity for an internship at survey found that one in three Massachusetts own personality, acquired soft skills, and family Lampin,” said DiBenedetto. manufacturers report The state-wide having a difficult time Alliance for Vocational hiring the production Technical Education workers they need. That (AVTE), which the has led organizations Worcester Regional such as the MassMEP Chamber of Commerce to develop new methods helped establish and training to inspire recently under Murray’s today’s youth to view leadership, affects six manufacturing as a different voke schools career option. in the region. Murray “Manufacturing is said there is a waiting fourth among the top list of about 3,500 employers in this region,” students every year. said Timothy P. Murray, As a result, AVTE president and CEO of commissioned a report the Worcester Regional lead by Secretary Jay Chamber of Commerce. Ash and Barry Bluestone “The average annual (Staying Power 1&2 wage in Central Mass manufacturing study for manufacturing is Ted Bauer, director of workforce development strategies at MassMEP, Anna Robertson, human resources author) that inspired Gov. $60,000 and state-wide manager at Eaton Corp., and Nicole Zea, plant manager of superabrasives at Saint-Gobain address questions Baker’s Administration during a panel discussion at Saint-Gobain’s Norton Hall on Oct. 27. $75,000. If we don’t to allocate a $75 million refill that workforce To learn more, visit www.macwic.org, www.massmep.org and www.qcc.edu budget to upgrade pipeline, companies equipment and expand have options where they vocational technical can locate, grow and invest. So it’s really in all of our needs. “I think people don’t always realize that they schools state-wide. Baker’s proposal was later pared best interests to make sure we are giving young people have options. It’s important that you align with the down to $45 million in the state Legislature. In that and those needing re-training those opportunities.” company. What can you offer the company and what funding allocation was a $1 million planning grant, Ted Bauer, director of workforce development sets you apart? My biggest question in job interviews which Worcester was awarded to examine how to strategies at the state-wide Massachusetts is why would I pick you? The job has to be something improve Worcester Vocational Technical High School. Manufacturing Extension Partnership (MassMEP), you are truly passionate about and truly believe in,” The Chamber of Central Mass. South Executive said this severe workforce shortage needs the Zea said. Director Alexandra McNitt and her members are immediate and collective attention of employers, getting excited about a new development set for colleges and technical-vocational schools to re-brand AFFILIATED CHAMBERS INVOLVED September 2017 opening called the Innovation manufacturing as a career pathway that is more Technology Center. As part of the Patrick-Murray advanced and technology-based today. At a separate panel discussion held earlier this Administration’s original vision, QCC in collaboration “There are multiple pathways for employees that fall at Quinsigamond Community College, QCC with local manufacturers, MassMEP and Fitchburg might have very different interests,” said Bauer. President Dr. Gail E. Carberry, Ed.D. said her college State University, the center will address the need for “Fifteen years ago, entry level positions may have is trying to get employers to not shred employment skilled manufacturing professionals by expanding been referred to as technicians. Today, the bar has applications but rather to share them. educational opportunities for area residents in the been raised. There is more brain than brawn now.” “We hear all the time that employers get many QCC Southbridge location expansion with a back lab A MassMEP-backed organization known as applications - more than you can handle - but they and concentration in optics and photonics. Manufacturing Advancement Center Workforce are not all from skilled people,” said Carberry. “What electronics were to the 20th century, Innovation Collaborative (MACWIC) located on QCC has forms that employers can hand out to optics and photonics will be to the 21st century. Grove Street in Worcester is now the statewide focal applicants that they believe have promise, but not Our young people don’t even know that job exists point for employer-led workforce training. “When enough developed skillsets. Dr. Carberry added, in manufacturing,” said McNitt. “We need to make our people retire, they leave with them a lot of “Refer them to us. We will school them, we will re- sure that people looking for those opportunities knowledge,” Bauer added. “Some of that knowledge tool them, and we will work with you to make that know where to go. Hopefully, over the next few years can’t be replaced. MACWIC has 235 company individual who has the motivation and interest to of successes with our programs we can help people members that represent 19,000 employees and $9 work in your company to become viable.” understand that there are some great opportunities billion in sales. We tackled retraining incumbent With manufacturing occupying about 17 percent in manufacturing.” workers, we communicated with vocational technical of the employment base in Central Massachusetts Targeting students and parents at the middle schools about what was important for recruiting new and an estimate that 100,000 employees will soon school level seems to be a growing target demographic workers, and now we have a pathway and connected be aging out or retiring from those jobs, Carberry’s as well as shifting manufacturing career tracks more it to apprenticeships and college credentials. You words underscored the general consensus felt among under the auspices of STEM and pharmaceutical can start on the shop floor and work your way to an roundtable participants. programming. Hebert said one of the more associates’ degree.” The Blackstone Valley Chamber of Commerce compelling programs she heard last year was offered Nicole Zea, plant manager of superabrasives at President Jeannie Hebert said this is the third year by Wyman Gordon Corp. that came to talk in one Saint-Gobain, said her company tries to stress to new her organization officially participated in National of the schools. “If they followed the program and and future employees that it can be really fun and Manufacturing Day as a month-long celebration. advanced from machine to machine, within 10 years rewarding making cool things for a living. She added She found early success in partnering with area with stock options they could be making six figures,” that there are a lot of different entry points today for schools to identify students who have a vocation for said Hebert. IN THE NEWS - NOVEMBER 2016 • PAGE 5 Chamber, Greater Worcester Community Foundation announce Leadership Worcester Class of 2016

WORCESTER - The Worcester Regional Chamber of Commerce, the Greater Worcester Community Foundation, and the Leadership Worcester Advisory Committee have announced the selection of 27 TIF allows talented professionals as the class of 2017. Members of the Leadership Worcester Class of 2017 include Che Anderson, Sandra Brock, Liz Sheehan Castro, Peter Caruso, Jr., Alex Cruz, Micki Davis, Jared Imperial Fiore, Kwesi Foster, Laura Glaser, Andrea Gossage, Patrick Hare, Sam Kenary, Emily Kent, Jamie Leehy, Jessica Morris, David Murphy, Lauren Petit, Jake Poplaski, Jason Port, Sarah Potrikus, Stacey Price, to relocate Peter Rawinski, Giselle Rivera-Flores, Benjamin Rivest, Jeannette Roach, Cornelius Rogers, and Elizabeth WORCESTER - When city and business leaders Wambui. gathered last summer to celebrate a ribbon cutting Selected from more than 40 applicants, the class for the 610,000-square-foot 150 Blackstone River includes a diverse group of 14 women and 13 men Road warehouse development in the Quinsigamond from Central Massachusetts. The rigorous application Village neighborhood, tax increment financing was process included an online application, a video, and the silent partner present. recommendations. The selection committee sought Known as 150 Blackstone, leaders lauded the tax motivated individuals who aspire to take an active increment financing (TIF) agreement formed last leadership role in Worcester and the surrounding year between the city and GFI Partners, an active towns and who want to learn and hone new leadership real estate developer in Worcester since the mid- skills. 1980s, as the catalyst for the development’s early The Leadership Worcester Class of 2017 represents success. After completion, a 15-year TIF propelling a variety of industry sectors, cultural backgrounds, the $26 million, 36-acre redevelopment will create and diverse educational experiences. Participants about 300 new jobs over five years and generate $1.4 are affiliated with the following organizations or million in property tax revenues annually. employers: American Red Cross of Central Mass., Future tenants will include Imperial Distributors, GFI Partners President Steve Goodman, left, and Central Mass. Workforce Investment Board, Clark Mid-States Packaging, a current tenant at the site Imperial Distributors, Inc. CEO Michael Sleeper. University, City of Worcester, Commerce Bank, for more than 30 years, and Gallo Wines. Imperial Bowditch & Dewey, EcoTarium, The Hanover will occupy half of the total square footage and Mid- business, doors mean a lot,” Sleeper said. “The thing Insurance Group, The Hanover Theatre for the States’ footprint will be 70,000 square feet, leaving the Performing Arts, Lamoureux, Pagano & Associates remaining space for Gallo. The Worcester Railroad that gives me the most pleasure of all is to look at 45 doors for receiving and shipping and that this Architects, The Learning Hub, MCPHS University, that runs through the property and connects to the Mirick O’Connell, Morgan Stanley, National Grid, new building via rail spur makes it one of very few puts our entire family under one roof. We feel really blessed.” Niche Hospitality Group, Nitsch Engineering, locations in the region with that connectivity. Reliant Medical Group, Inc., Saint-Gobain Abrasives, Timothy P. Murray, Worcester Regional Chamber Goodman felt it was somewhat of a leap of faith by the city to agree to grant GFI Partners a TIF. Sustainable Comfort, Unum, Webster Five, Worcester of Commerce president and CEO, credits GFI County Food Bank, and Worcester State University. Partners President Steven Goodman for working However, as soon as that commitment was ironed out, his company was able to attract Imperial The class got underway in September with an diligently on the TIF deal with City Manager Edward overnight retreat at the Beechwood Hotel, offering Augustus, Mayor Joseph Petty, and the City Council. Distributors within 12 months. “We felt if we had a competitive position on the tax rate, we could participants an opportunity to get to know one That teamwork allowed him to then work out an another, determine individual leadership strengths, agreement with Imperial Distributors. Murray encourage new businesses to come here and we would be successful,” said Goodman. “Without the learn more about participants’ experiences, and to noted the need for more first class, commercial and understand more about the Worcester community industrial spaces in the city as the last major space collaboration with the city of Worcester, we’d be sitting in the old U.S. Steel building (which closed in and the diversity of our emerging leadership. developed here was back in the 1980s with the Monthly sessions explore topics that are critical airport industrial park. the mid-1970s).” City Manager Ed Augustus noted that there’s much to Central Mass. The first session, Community and “Because of Worcester’s high industrial tax Economic Development, familiarized participants rate, Steve Goodman would not have been able to discussion about ongoing downtown development, but that this is a prime example of leaders not with Worcester’s efforts to develop its downtown and offer a lease price to Imperial that was competitive neighborhoods. for modern, commercialized spaces,” Murray forgetting about other city neighborhoods. Augustus worked closely with City Councilor George Russell The daylong sessions will take place between 8:30 said. “Approval of this project and private sector a.m. and 4:15 p.m. on the second Thursday of the investment is allowing his company to grow. With and state Rep. Daniel Donahue as well as his Chief Development Officer Michael E. Traynor to help month through April and culminate in graduation in the iron up and construction underway, we are May 2017. Additional session topics include: Urban looking forward to a ribbon cutting.” galvanize neighborhood support. “We are working downtown as well as with the rest of our city, Environment and Sustainability; Diversity, Inclusion Imperial Distributors, a third generation family- and Equity; Education and Youth Development; Arts, owned business based in Auburn that employs more whether it be the South Worcester Industrial Park, which is virtually filled, or numerous other projects,” Culture and Quality of Life; and Justice, Law, and than 700 people, has been operating from several Community Safety. Applications for the next class locations for far too many years, according to its CEO Augustus said. “We’re focused on how to get it done, not why it won’t happen.” will be available online in February 2017. For more Michael Sleeper. Imperial’s first three warehouses information, visit www.leadershipworcester.com were all based in Worcester. Eventually, the company The facility will open in January 2017. moved operations to the Auburn Industrial Park and built a 30,000-square-foot facility. The family then expanded that building three times and added HIGHER EDUCATION - BUSINESS PARTNERSHIP another building in Worcester until it had no more room left to expand. The Worcester region is home to 12 colleges and universities, “We were landlocked,” Sleeper said. “So clearly we Supplement your have outgrown our distribution and office facilities with a combined 35,000 students. workforce and provide and were searching for quite a few years to support Anna Maria College | Assumption College | Becker College | Clark University our growth and we found it here at 150 Blackstone College of the Holy Cross | Cummings School of Veterinary Medicine, Tufts University an opportunity River Road. Securing the TIF and the investment tax MCPHS University | Nichols College | Quinsigamond Community College for a college student to gain expe- credit from the state was a game changer.” UMass Medical School | Worcester Polytechnic University | Worcester State University rience through an Imperial Distributors has been providing non- internship program. Check With more than 10,000 faculty and staff at our area colleges and univer- food products to about 3,500 supermarkets and out the Chamber’s free and easy sities, higher education is Worcester’s second largest merchandising services for 77 years. Once moved internship database for industry—creating a hub of expertise right in our city. in, Imperial will occupy 325,000-square-feet at 150 students and employers. Blackstone and its 40-foot high roof will allow three The total economic impact of Worcester area institutions on the Com- levels of steel pickling and an abundance of palette InternHub.com positions for storage. “If you’re in the distribution monwealth is estimated to be more than $2.5 billion. PAGE 6 • IN THE NEWS - NOVEMBER 2016 Seltz pushes for controlling health care costs hospitals scattered across the state. 2014, an increase of just under 10 percent. Speaking before chamber members gathered More costly health care providers in Boston and at Saint Vincent Hospital, Seltz advocated for the other eastern Massachusetts cities coupled with HPC’s three new innovation investment programs, rising drug prices are two other contributing factors which create an opportunity for Massachusetts working against the goal of long-term health care providers, health plans, and their partners to receive reform viability, Seltz said. funding to test and spread innovations that advance A puzzling new norm is medical care’s shift to the Commonwealth’s cost containment goals while pricier Boston doctors and hospitals while lower prices improving access to high-quality care. are still offered by providers in other Massachusetts “We’re worried about the wide variation of towns and cities such as Worcester. Controlling payments to hospitals for the same services that are prescription drug spending in Massachusetts is not tied to quality outcomes,” said Seltz. “Prescription another challenge altogether. Seltz cited spending drug costs are still growing by 13 percent year after for prescription drugs, which has risen 13 percent year, which demand the need for more transparency.” between 2013 and 2014. One part of the challenge is that the state’s Health Murray added that with the state’s Health Care Care Law - now a national model in its 10th year - Finance Commission a relative newcomer, “all of has become a zero sum game for many employers. our efforts to bring spending under control will be Compounding the problem is the growing escalation required to humanely navigate an often complicated in costs to fund the state’s Medicaid program serving industry with better care, better health and lower the poor. Known in Massachusetts as MassHealth, costs.” that fund has grown exponentially in recent years, and when combined with other health reform spending amounted to $14.7 David Seltz, executive director of the state’s Health billion last year. Gov. Charles Baker’s StartUp Worcester helps Policy Commission. proposed budget for the new fiscal year projects MassHealth spending at WORCESTER - The challenges of spiraling health $15.47 billion. 12 companies take ideas care and prescription drug costs and their potential In 2015, a MassHealth administrators solutions were addressed recently by special guest budget analysis estimated that to local marketplace David Seltz, executive director of the state’s Health approximately 211,000 people were Policy Commission (HPC), during the Worcester newly eligible for MassHealth: WORCESTER - StartUp Worcester has announced 12 new Chamber’s Healthcare Roundtable sponsored by approximately 103,000 people moved Salmon Health. companies that will be a part of the next cohort of this initiative from Commonwealth Care, 2,000 started last year aimed at helping entrepreneurial college Concerned with family health insurance premiums moved from the Medical Security graduates kick-start their business concepts with the intent of now among the highest rates in the country and Program, and 106,000 moved into retaining them in the region. outpacing wage increases, Seltz provided an overview coverage for the first time. Most of StartUp Worcester is a partnership between the Worcester of health care cost growth and cost containment these people enrolled in MassHealth Regional Chamber of Commerce, Running Start Coworking – efforts stemming from omnibus health care legislation over the course of FY 2014, and 20,000 that was passed in 2012. of the 211,000 enrolled during FY shared workspace on Prescott Street in Worcester, and The Venture Introducing Seltz, Timothy P. Murray, president 2015. By the end of FY 2015, close to Forum – a not-for-profit community for technology entrepreneurs and CEO of the Worcester Regional Chamber of 1.7 million residents of Massachusetts at any stage. The 12 StartUp Worcester entrepreneurs receive full- Commerce, said an economic imperative exists for received MassHealth coverage, up year memberships to all three organizations providing them space dealing with this issue, given the 110 community from an average of 1.5 million in FY in which to work, access to a community of peers, and business resources and connections to help their idea grow. This year, StartUp Worcester had 24 applications from students and alumni from six area colleges and universities. That pool was Chamber touts WRA’s narrowed down by two rounds of judging to 12 individuals with innovative business plans who were given the resources, space, and support to develop their ideas and take them from concept urban revitalization plan to marketplace. Winners included Dormboard, Fit, I’mPossible WORCESTER - The Worcester Regional public meetings. Considerable thought and Workshop, Maximum Crash, Rookie, ShopRagHouse, Slydde, Chamber of Commerce has announced it deliberation went into establishing the plan Solar for Our Superheroes (S4OS), The Learning Hub, Vimesys, fully supports the Worcester Redevelopment that seeks to capitalize on this important Worcester Soccer House, and Zephyr Workshop who is a returning Authority’s (WRA) proposed 20-year, $100 business district. company from 2015. million Downtown Urban Revitalization Robert Johnson, chair of the Chamber’s Breeze Grigas, founder of Zephyr Workshop said, “Start- Plan. board of directors and president of Becker Up Worcester means a lot to [Zephyr Workshop] because as a The plan strategically targets 24 properties College said, “A city’s downtown business company with a lot of remote team members around Central that are neglected and/or underutilized and district affects all parts of the community Mass., the office space awarded offers us a centralized place to that have created barriers to fully leveraging from those adjacent to it to the farthest away. meet and collaborate. We’ve been able to make real progress the district’s potential to draw new developers It sets the tone for residents and visitors by on many projects, grow our professional presence and be more to the downtown. The plan indicates that creating an environment that offers a variety active in the local game development community through this the WRA will work with existing owners to of retail businesses, destinations, residential program’s continued support.” improve their property – or sell it if they are space, and office environments. Worcester is “The goal is to retain these bright, young entrepreneurs and unwilling to invest. Ongoing investment is poised to enhance all of those elements in the encourage them to grow their business here – in Worcester – critical to maintaining a property’s safety, downtown, and we will work with all those where they will soon learn that they have access to everything complying with regulations and code, and who want to achieve this important goal.” they need to succeed, including a well-educated and trained remaining viable as a location to established Important stipulations are made in workforce,” said Timothy Murray, president and CEO of the and relocating businesses. Without this the plan to protect those owners who are Worcester Regional Chamber of Commerce. A great example of investment, properties fall into disrepair reinvesting in their properties. Only those this is a company from the inaugural StartUp Worcester class, affecting not only the tenants of those that have been categorized as blighted and Petricore, a game, website and app development company who buildings, but also neighboring properties substandard, because of a chronic lack of has grown the company over the past year and now has an office and their tenants. investment; are brownfield sites that have at 20 Franklin Street in downtown Worcester. Importantly, the plan indicates that the been vacant for 20 years; are obsolete and “Being a member of StartUp Worcester will consolidate our WRA will utilize the eminent domain option lack up-to-date infrastructure; or have commitment to local manufacturing in Worcester. It would mean only as a last resort. The city’s leadership is accessibility concerns are included in the building relationships with local resources that could not only invested in the success of Worcester business inventory of targeted properties. help us reach our target market, but also help us navigate the owners and will work with them to create best course of action to keep expanding,” said StartUp Worcester a climate in which all businesses can thrive Chamber Calendar Events winner Julia Carrasquel, a Clark University 2016 graduate, and grow. Friday, December 16, 2016 who is the cofounder of Dormboard, a start-up that designs, “This plan is one tool in the city’s toolbox Connect for Success manufactures and sells an attachable bedside desk for college to fully leverage public/private investments 7:15 am – 9 am dorm rooms. that have been made to date,” said Chamber Chamber - 446 Main Street, Worcester StartUp Worcester is financially supported by Chamber President and CEO Timothy P. Murray. “It Thursday, December 15, 2016 members Commerce Bank, Grove Street Commercial Properties, will also allow for the better utilization of Business After Hours and DarrowEverett LLP. Brian Thompson, president of Commerce prime space within the designated downtown 5 - 7:30 pm Bank said, “Sponsoring StartUp Worcester which provides critical redevelopment area.” The Hanover Theatre resources to new and emerging local businesses so they can thrive, The Chamber supports the process by 2 Southbridge Street, Worcester pay taxes and create good paying local jobs is not only part of which the plan was established. A Citizen Tueday, December 20, 2016 Commerce Bank’s commitment to community giving, it is good Advisory Committee, composed of 15 Women's Information Network (WIN) business!” representatives of the community, helped 12 - 1:30 pm This second cohort of StartUp Worcester entrepreneurs began to shape the plan over the course of 10 Chamber Conference Room446 Main Street, Worc. in June 2016 and continues through May 2017. IN THE NEWS - NOVEMBER 2016 • PAGE 7 Leaders celebrate AC Marriott beam signing WORCESTER - On Nov. 2, state and local officials, business leaders and partners joined with XSS Hotels of Manchester, NH to celebrate the construction of the AC Hotel by Marriott to be located at 125 Front St. in Worcester. XSS Hotels collaborated with the Manchester based PROCON, who is the designer and construction manager for the 117,000-square-foot upscale hotel. Colwen Hotel Management of Portsmouth, NH will provide comprehensive management services for the new hotel. Attendees added their names and best wishes to the steel beam in celebration of the construction project that will be part of Worcester’s master plan for urban revitalization. The six- story AC hotel is situated in the heart of the downtown Worcester with access to local shops, restaurants, and Celebrating steel construction of the new AC Marriott Hotel, entertainment. It is a short walk from from left to right, Donald Birch, executive VP/COO at Leggat Union Station offering train and bus McCall, Tony Economou, Worcester city councilor District One, service and is just two blocks from the Tim Murray, president and CEO of the Worcester Regional Chamber of Commerce, Mark Stebbins, chairman and CEO at DCU Convention Center. PROCON and Partner XSS Hotels, Ann Tripp of Opus Invest- Mayor Joseph M. Petty was unable to ments, City Manager Edward Augustus, Jr., Candy Mero-Carlson, attend, but shared his sentiments about District Two city councilor, Leo Xarras, partner at XSS hotels, the new hotel in a prepared statement. Christine Thomas, development partner at XSS Hotels. “The CitySquare development and this hotel are at the heart of our plan for that will fit into place alongside new restaurants, revitalizing our city’s core,” Petty said. “Even before apartments, and high-class office space to help the construction began we started seeing the positive create the 18-hour downtown we’ve all been working impact with new restaurants and businesses opening towards.” around our downtown. I want to thank XSS hotels, The Worcester AC Hotel is rising from the ashes and all of the partners for being part of our vibrant of the demolished Galleria mall and sits atop the new vision for downtown and for Worcester as a city’s recently opened 586-car underground parking whole.” garage; that will service the hotel and surrounding buildings. AC Hotel guests will have ample venues Plans call for 170 king suites and double-queen guest rooms to be located on floors two through six for shopping, dining, and entertainment at their of the building. The European-inspired hotel will fingertips. offer a robust package of guest-friendly amenities. The momentous beam signing The design concept includes a fitness center, a yoga can be summed up in the words of City Jobs Fund targets room, a 24/7 market, conference center and meeting Worcester District 2 City Councilor rooms and a business center. Expansive public space Candy Mero-Carlson who said, “This designs feature a bar/lounge area that flows to an is a great day for everyone and we are workforce development outdoor terrace. In addition, the 7,100-square-foot certainly a city on the move.” WORCESTER - The Worcester Jobs Fund is now providing function room will include an in-house full-service Work began on the site in three training programs that prepare residents for employment restaurant with an outdoor patio seating area. early October, and structural steel in a long-term career path in fields where there is an immediate installations are currently in progress. Worcester is undergoing a renaissance, and workforce need the new AC Hotel is part of a series of four high- The building is expected to be weathertight by February 2017. The “The Worcester Jobs Fund is an important new tool that offers profile projects that will comprise the CitySquare Worcester residents the opportunity to get the skills necessary to area, including the Grid District, a 365-apartment signed beam will be installed towards fill open positions in our workforce,” said Worcester City Manager mixed-use development already under construction, the end of the structural steel erection, and numerous street-level retailers and upscale with an expected project completion Edward M. Augustus, Jr. “This benefits us all, providing a workforce restaurants are expected to set up shop within the in late 2017. that has the skills to meet the needs of employers.” next two years. Together, a section of downtown “This hotel is the continued This year, the Worcester Redevelopment Authority gifted Worcester will be transformed into a live-work-play implementation of the CitySquare $100,000 of the proceeds of its sale of a parcel of land in Washington hub, designed to attract young professionals. vision when we proposed tearing Square to the Fund. Worcester Jobs Fund proceeds are only available City Manager Edward M. Augustus, Jr. was one down the old Galleria Mall,” said to Worcester residents. In addition to these funds, the committee of the morning’s speakers. He said, “This hotel is Timothy P. Murray, president and successfully obtained a grant from the Massachusetts Department another fantastic sign of the vitality and momentum CEO of the Worcester Regional of Transportation and an allocation from the state legislature, Chamber of Commerce. “We are we are seeing downtown and throughout Worcester. collectively in excess of $187,000, for use in job training. These This project brings us one step closer to fulfilling the creating density by having people living and working downtown.” funds are not restricted to Worcester residents. vision of CitySquare. It’s another piece of the puzzle The Worcester Jobs Fund was created to bring a direct benefit to Worcester residents in the form of jobs, job training, and related services. The Worcester Jobs Fund is monitored by an oversight committee that includes representatives from The Worcester Regional Chamber of Commerce, Central Mass Workforce Investment Board, Workforce Central Career Center, Worcester Community Labor Coalition and Worcester Public Schools. The Fund consists of a $100,000 annual city tax levy appropriation for the first three years. New staffer joins Worcester Chamber WORCESTER - Kristen Luna joined the Chamber as a membership services and development representative responsible for recruiting new Chamber members and assisting them with member benefits. Ms. Luna comes to the Chamber with a background in business development and event planning and had previously been a Chamber volunteer. Kristen Luna PAGE 8 • WOOSTAPRENEURS - NOVEMBER 2016 Woostapreneurs celebrate diversity, collaboration ome of the best and brightest involved in operating small businesses participated in the Worcester Regional Chamber of Commerce’s Woostapreneurs Forum during National Small Business Week at Worcester State University. Sponsored in concert with the U.S. Small Using social media to Business Administration, the event attracted almost 200 small business owners, budding entrepreneurs and students reach new customers Sas well as 12 expert panelists and breakout workshop leaders. WORCESTER - At the Worcester Forum supporters from local banking and lending institutions Regional Chamber forum known as including Commerce Bank, Fidelity Bank, UniBank, Spencer Bank, Hometown Bank, Southbridge Savings Bank, TD Bank, Woostapreneurs, Laura DiBenedetto United Bank, Webster Five, Rollstone Bank & Trust and Bank from the city-based Vision Marketing of America added information sharing kiosks as an attractive explained how social media could backdrop to this first-of-its-kind event. be used to generate more customers In opening the forum, Worcester State University President and more sales beyond just their Barry M. Maloney called the city’s recently developed local neighborhoods. Below are a few entrepreneur incubation labs and co-working shared spaces highlights from that discussion. to help support start-ups a critical component to future The four primary social networks economic development. These labs provide flexible spaces, that apply to you for commercial use shared equipment access, and health and safety services to lower the initial costs of running a new business. Maloney said are Facebook, Twitter, LinkedIn and that “86 percent of WSU graduates go on to stay and work in Instagram. Massachusetts,” which only further underscores the growing If you are doing B2B, don’t bother footprint of entrepreneur ecosystems across the city. with Instagram. If you are doing B2C SBA Massachusetts District Director Robert H. Nelson A Woostapreneurs audience listens to a panel discussion. and you’re not on Facbook, you’re nuts. told listeners to “think big and start small. That’s how many Ghana, Dominican Republic, Vietnam, Brazil, and Albania. If you are trying to sell a commercial businesses start with us.” He went on to highlight the rise of minority-owned businesses, which comprise 28 percent of all Foreign-born entrepreneurs in the city now account for 37 product, you need to be on LinkedIn.... percent of all business owners, which is double the state average. Period. Twitter is the weird one. It can Main Street businesses in the US. “We want to try to reach new Americans and immigrant entrepreneurs,” Nelson said. Collectively, that immigrant population generates $947 million be useful for all sorts of things. Citing a recent Seven Hills report regarding the immigrant annually in earnings. cornerstone upon which Worcester’s recent economy and “That’s buying power; that’s economic impact,” Murray said, community has been built, Worcester Regional Chamber of “but we need more options. Anyone coming here or graduating Tips to avoid human Commerce President and CEO Timothy P. Murray said 21 from our colleges needs to be supported and mentored and resource problems in percent or 37,790 immigrants from 85 countries now live and encouraged to not only work here, but also start their own work in Worcester among a total population of 183,000, which company. We are seeing spaces emerge in the city that give a growing business is considerably higher than the state-wide average of 15 percent. students and entrepreneurs a place to go to collaborate. They The majority of that immigrant population came here after allow cross-pollination of ideas, energy and creativity that 1990, Murray added, with the largest populations coming from encourage entrepreneurship.” WORCESTER - At The expert panel discussion was moderated by Clark the Woostapreneurs Forum, D. Moschos, Esq., of Counsel at Marketing plans increase sales Fundamentals of financing a start-up business Mirick O’Connell discussed a number opportunities for small businesses WORCESTER - At the Woostapreneurs of potential human Forum, Patrick Royce, vice president resource problems WORCESTER - At the Woostapreneurs Forum, Fern Nissim from and small business banking manager at that businesses can the Round Pond Group presented options to advertise, market, and UniBank, and lli Spahiu from SBA lender encounter if they promote a small business. Most small businesses have very limited relations teamed up to explain the types of financing available to new or very young do not have proper resources for marketing. She explained why it is important to develop a systems in place as a businesses. Below are a few highlights marketing plan to maximize the impact on limited resources. Below are from that discussion. company grows and D. Moschos, Esq. a few highlights from that discussion. “The SBA program is a guarantee hires more employees. “You should put a live Facebook newsfeed program, which means we can not directly Below are a few highlights from that on your website so that conversations going on loan to an individual.” discussion. there can also be seen on your website. It’s not an “Mass Tax Connect found at Patrick Royce and lli Spahiu talk about financing. “To be eligible for the Family Leave http://www.mass.gov/dor/e-services/ icon; it’s actually alive and helps your ratings on Act, an employee must work at a masstaxconnect/mtc-go-paperless.html” location where the company employs search engines.” makes it so much easier to file your taxes and to pay for old admissions of debt.” 50 or more employees within 75 miles.” “Make sure you put a blog on your website “You want to think this through before you get started, which is why you want to have a “You have to have a summary plan that is actively changed on a regular basis.” business plan and having everything in writing.” description for life, disability and health “Email marketing is one of the most “If you have high personal debt, your debt-service ratio is going to be a lot lower on a global scale. You could hit it really big or have zero [for money] in the first month. Living on less and insurance and you have to have that inexpensive ways to reach your customers these sacrifices are decisions you will have to make.” available and give employees notice.” days through Constant Contact, Salesforce or “The preference of the business plan is getting on the disparate parts moving together: you’ve Mailchimp by designing your own newsletter. “A brand new law that applies Fern Nissim considered what the target market is, what the competition is, and overall marketing strategy.” to everyone whether you have one But how do you build that email list? Go to tons “In terms of what the bank is ultimately concerned with, I’ve seen dozens of beautiful business employee or 3,000 says you have to of chamber events, and use a smartphone app plans, but at the end of the day the bank does not care about the flash in the business plan. In provide sick leave to employees. They [like the Camcard app] that lets you take pictures of business cards that that hour-long meeting, the banker is going to know if this is something they want to get behind. earn sick leave on the basis of accruing can then go direct through a CSV file direct to Mailchimp.” And that comes out of the personal interaction and interview component. The most influential one hour for every 30 hours of actual “Instant and text messaging mobile marketing is becoming the new factor is the financial projections showing you put together a budget on a month-to-month work. If you have below 11 employees, frontier in terms of reaching clients via their cell phones.” basis.” “Anyone who is looking to start-up [a business] should look at the Massachusetts Small that sick leave can be unpaid. The “Print and web advertising can be very pricy. But if you decide to do Business Development Center regional office located at Clark University [http://www2.clarku. Attorney General’s Office has a lot of print advertising, make sure you don’t do brand advertising because you material that can help you relative to edu/offices/sbdc/] first.” can’t afford that.” this law.” “At the SBA, we do have resource partners that can be part of your personnel, but they don’t “If you are doing direct mail, maybe you are doing a postcard with a have to be paid staff.” “If you have seasonal help, you can magnet on the back teasing a free give-away.” say that they have to be employed for 90 calendar days to use the sick leave WORCESTER - At the Woostapreneurs they have earned. There is a very good Forum, Pam Stevens, Esq. Attorney, Seder & poster explaining this law that you can Avoiding legal pitfalls Chandler, LLP tackled the many legal issues post.” that can cause significant problems for start-up businesses. Her session provided tips for new PLEASE RECYCLE in start-up businesses businesses to avoid legal pitfalls, a few of which are highlighted below. THIS NEWSPAPER Pam Stevens, Esq. “You need to have some money set aside when WOOSTAPRENEURS - NOVEMBER 2016 • PAGE 9

Entrepreneuring in Woostapreneurs celebrate diversity, collaboration the 21st century

“We need more options. Anyone coming here or graduating from our colleges needs to be Kyla Pacheco and Joe Bush WORCESTER - At the Woostapre- supported and mentored and neurs Forum, Joe Bush, from Worces- encouraged to not only work here, ter Clean Tech Incubator and Kyla Pacheco, from Worcester Idea Lab, but also start their own company. We combined forces to discuss strategies are seeing spaces emerge in the city for starting a business in the 21st century, which is being approached in that give students and entrepreneurs quite a different manner than previous a place to go to collaborate.” generations. Below are some highlights captured live during the session. Bush: “Instead of spending $1,100 - Timothy P. Murray, on rent each month, you can use an President & CEO incubator space much cheaper for Worcester Regional Chamber of Commerce events, private offices and 11,000 square feet of space located in the Printers Building downtown - a hidden gem of Worcester.” A Woostapreneurs audience listens to a panel discussion. Pacheco: “The Worcester Idea Lab is an initiative that came out of Action University Program Director Amy A. Whitney, broached several Bueno, Founder/CTO of Domitek, said he started down the path Worcester Development. Located at diverse topics, including why certain entrepreneurial paths are of small business ownership with the dream of being able to 20 Franklin Street, it’s an idea space provide a different future for his family. He found much success chosen, best practices for running a successful business, and focused on innovation, and it’s open dipping into the giant employment pool of college students how to stay ahead of challenges. for private rentals. We also host free Standing out with a personal story, panelist Loreta Gjonca, that exist in and around Worcester. “You have to look at other public community days for free where owner and operator of Nuovo Restaurant, shared her own businesses to see what you’re doing right and wrong,” Bueno husband’s battle with cancer and how her restaurant had to said. “Being able to delegate was the hardest thing to learn. You a lot of independent business owners change some of its business model to adjust to that evolving must shift your business from being reactive to proactive.” and entrepreneurs come to the space, situation. “There are no vacation days in owning restaurants. Other panelists, including Amy Chase, Founder/CEO of network with each other and use it for We were open seven days a week. We changed the hours and just Crompton Collective, and Raphael Bibiu, Co-Founder & COO Internet, coffee, and programming.” served dinner. We went through this terrible, hard experience, of Ace Medical Services, shared similarities in their thoughts Bush: “An incubator provides a but we surrounded ourselves with caring, talented people. You’d on building strategic partnerships and accessing networking suitable network for entrepreneurs be surprised how good people are when you are in need.” opportunities through chamber membership and other means facing similar challenges.” As a 16-year-old Dominican who migrated here in 1987, Libis as critical tools.

Fundamentals of financing a start-up business Finding financing to expand Deciphering federal government contracts WORCESTER - At the Woostapreneurs your existing business Forum, Patrick Royce, vice president WORCESTER - At the Chamber’s and small business banking manager at WORCESTER - At the Woostapreneurs Forum, Woostapreneurs Forum, David Polatin, UniBank, and lli Spahiu from SBA lender Nadine Boone, SBA Lead Lender Relations, and SBA assistant district director, discussed relations teamed up to explain the types of Thomas L. Rose, Managing Director of the Worcester how your business financing available to new or very young Commercial Banking Group, Commerce Bank & Trust can tap into a federal businesses. Below are a few highlights Company, lead a workshop explaining the various and state government from that discussion. direct loan and loan guarantees that can be provided market that purchases “The SBA program is a guarantee by a bank and the SBA to help a small business grow billions of dollars of program, which means we can not directly and expand. Below are a few highlights from that products and services loan to an individual.” discussion. from the private sector. “Mass Tax Connect found at Patrick Royce and lli Spahiu talk about financing. David Polatin Below are a few “Here’s how the SBA loan works. A small business Nadine Boone http://www.mass.gov/dor/e-services/ highlights from that masstaxconnect/mtc-go-paperless.html” applicant goes to the bank and the bank approves it discussion. makes it so much easier to file your taxes and to pay for old admissions of debt.” subject to the SBA guarantee. Then the bank submits it to SBA. Just because the bank “You want to think this through before you get started, which is why you want to have a says you are SBA eligible, the SBA may disagree. There are no shortcuts.” “Federal government is the largest business plan and having everything in writing.” “Do you have some historical data and are your financials apparent and ready for purchaser of goods and services in the “If you have high personal debt, your debt-service ratio is going to be a lot lower on a global the bank to see them? Are they endorsed by your CPA? Just because you produce tax world. It has a goal that 22 percent of scale. You could hit it really big or have zero [for money] in the first month. Living on less and forms does not mean the IRS ever saw them. We are going to need to contact the IRS all buying goes to small businesses.” sacrifices are decisions you will have to make.” and ask for transcripts. This is a requirement by law.” “If you want to do business with the “The preference of the business plan is getting on the disparate parts moving together: you’ve “The SBA has preferred and certified lender programs such as through the federal government, there is a database considered what the target market is, what the competition is, and overall marketing strategy.” Commerce Bank & Trust Company, which means Tom has a certain amount of that you should signup for called “In terms of what the bank is ultimately concerned with, I’ve seen dozens of beautiful business authority and expertise to do the SBA guarantee program without coming to us first Systems Award Management (SAM), plans, but at the end of the day the bank does not care about the flash in the business plan. In to ask us to underwrite every decision he makes. That’s a blessing and a curse because which is free to register for at sam.gov.” that hour-long meeting, the banker is going to know if this is something they want to get behind. to whom authority is given there’s greater risk. So Tom’s decisions have to be on “Businesses who want to do And that comes out of the personal interaction and interview component. The most influential point with the guidelines. If your business went belly up, he would have to eat it.” business with the federal government factor is the financial projections showing you put together a budget on a month-to-month independently can do so without basis.” “The terms and interest rates are negotionable between you and the bank. The relationship is between the borrower and the bank. The SBA is relatively transparent getting certified.” “Anyone who is looking to start-up [a business] should look at the Massachusetts Small “If you want to do business with Business Development Center regional office located at Clark University [http://www2.clarku. unless if the bank sees that there is risk.” Veterans Affairs, however, there are edu/offices/sbdc/] first.” “There is a cost to borrow money. The SBA charges the lender a fee and those fees certain certifications you have to do “At the SBA, we do have resource partners that can be part of your personnel, but they don’t are usually passed on to the borrower.” have to be paid staff.” “Right now we have 2 percent fee waiver program to encourage our lenders and found at certify.sba.gov, which is brand other lenders to make small loans to your businesses.” new.” “HUBZone programs involve the WORCESTER - At the Woostapreneurs starting a business. For the privilege of having from the City Clerk’s Office in Worcester. The federal government spending money in Forum, Pam Stevens, Esq. Attorney, Seder & a corporate entity - even if you don’t make any certificate is good for five years and costs about areas of economic development need. Chandler, LLP tackled the many legal issues money - the Department of Revenue still takes $50.” You should check at sba.gov to see if that can cause significant problems for start-up $456 annually.” “Go to the Secretary of State’s corporations your business is located in such a zone. businesses. Her session provided tips for new “Should you file a ‘doing business as’ division. There’s a database in there that will Also, 35 percent of your employees businesses to avoid legal pitfalls, a few of which certificate? If you plan to name your business tell you if there is another entity that has your have to live within it. Parts of Worcester are highlighted below. other than something with your legal name in it business name already. Do a Google search as are in a HUBZone.” “You need to have some money set aside when [as a sole proprietor], such a certificate is needed well.” PAGE 10 • EDITORIAL - NOVEMBER 2016 OPINION Tax rate ratio OPED COLUMNS must change State loses important s the calendar moves from fall to winter and another year begins to draw to a close, the conversation local economic driver about tax rates gears up. Worcester, he Worcester Regional Chamber of with retailers in their community who are known like Auburn and Webster, is a dual Commerce understands the state budget and respected. Atax-rate community, where a portion of the is challenged this year just like it was in Local businesses, both big and small, are tax levy burden is shifted from residents to a recession-plagued 2009, the last time the backbone of the community. Many local businesses through a higher business tax rate. the tax-free holiday weekend was not organizations and worthy causes count on their Each year as this topic is debated among Tadopted by the Massachusetts legislature. Even support year-round, and time and again, those local businesses, residents and city officials, the though it was cancelled by the state Legislature this businesses are there to lend their support. Drive by degree to which the tax rate influences a year, there are compelling reasons to preserve this a little league field or attend a charity event, and business’s decision making is also debated. vital economic tool for years to come. you will find the names and logos of many local The tax-free holiday weekend offers significant, businesses – like Rotmans and Percy’s, among Some try and argue that the tax rate means positive financial impacts for countless small others - adorning the outfield wall or program very little to businesses as they determine businesses, as customers are more prone to shopping booklet. While the lack of a tax-free weekend will where to locate or spend their capital. While when they don’t have to pay the 6.25-percent sales not likely cause local businesses to stop giving we do not wish to give the impression that tax on purchases up to $2,500. Last year, the Retailers their support, without the economic boon and the the tax rate is the end-all and be-all in the Association of Massachusetts published survey activity associated with a tax-free weekend, that decision making process for businesses, it results estimating the economic benefit of having support might be a challenge to come by. is an important part of a formula that each a tax-free weekend to be roughly $168 million. While we are mindful of the financial constraints business uses to influence decisions. For many retailers, the sudden rush of consumer facing the commonwealth, we strongly contend that As part of that equation, the Worcester City spending, during traditionally their slowest sales the loss in tax revenues during the tax-free weekend Council has complete discretion over and the season, makes a substantial contribution to their is largely outweighed by the economic activity ultimate say in determining what the tax rate economic survival. generated. We respectfully ask lawmakers to keep will be. Other parts of that calculation, such Consider the multiplier effect carried over to local retailers in mind, should the financial picture restaurants, and other retailers of non-consumer brighten. The chamber, and our retail members, as health insurance premiums, minimum goods, who also realize increased sales and activity. look forward to the inclusion of a tax-free weekend wage, cost of materials, and transportation The tax-free holiday weekend allows our members during next year’s fiscal debate and review. costs – to name a few – are not dictated by – like Rotmans Furniture and Flooring Center or The tax-free holiday is a proven economic the City Council. So while some may debate Percy’s TV & Appliance – to compete on a more stimulus. A healthy retail economy helps to mitigate where the current tax rate falls in the priority level playing field with states like tax-free New the hit to the state budget in lost sales tax revenue, list of a business owner in making his or her Hampshire and big box stores from out of state while its benefits are long-term and wide-reaching. decisions it is the one part of that decision who, thanks to a loophole, process transactions via In an era when more financial and regulatory hurdles that is directly affected by the vote of the City the internet allowing them to forego charging sales are placed in front of small businesses, the tax-free Council. tax. weekend not only provides a financial benefit but Worcester had been on a trend of A tax-free holiday weekend is a win-win for also shows these companies that the state values and reducing the gap between the residential and businesses and residents as it keeps money in local appreciates their contributions to the community. commercial tax rates, by continually lowering communities. It encourages residents to shop locally the CIP Factor. The CIP Factor represents the shift that takes place from the residential taxpayer to the commercial taxpayers – e.g. a 1.00 CIP Factor is a single rate. The Worcester City renaissance underway City Council had reduced that factor to 1.353 I am pleased to present the Worcester Regional biotechnology, and a revitalized manufacturing by FY 2015. However, last year the Council Chamber of Commerce’s Chamber Exchange sector back into the area. In addition, our higher erased that hard work and effort by voting for Newspaper. Many thanks to my fellow trustees, education and medical institutions are flourishing a factor of 1.389. This was a step in the wrong members of the chamber, and everyone who has which are vital to a burgeoning economic district. direction and an indicator to businesses that helped inspire the Worcester economy. By equipping the region with the necessary a majority of the Worcester City Council I especially want to thank our President components of a thriving industrial center, believes they should fund city services by and CEO Tim Murray for his leadership we can attract, retain, and cultivate the asking business owners to pay more and in transforming the Chamber during an next wave of business success. The future residents to pay less than their fair share. unprecedented era of change in the global of the area is promising, but not without For many of our small businesses, this economy. challenges. is compounded by the fact that this same I write this letter with a renewed sense To that end, we must focus on the future commercial/industrial tax rate is also applied of confidence that economic development of work and think about the unknowns. As to personal property values. This turns into a within the region is reaching new a business community, we must anticipate double-hit for businesses as not only is their heights of vibrancy and resiliency. Young DR. ROBERT the winds of change including training real estate property taxed at a higher rate but entrepreneurs, current business owners, JOHNSON people for jobs that do not currently exist they are also taxed on the value of equipment, students, and organizers are emerging and solving problems that we have not inventory and other property located within throughout the community to launch and even identified. While this might seem a their business. While depreciation is taken incubate new businesses. There is a palpable sense of tall task, we are laying the foundation across the into account, the values on personal property opportunity and excitement streaming through the region for a sustained period of growth that will be are not reduced to $0; the equipment carries region that is evidence of an economic revolution. driven by innovation and determination. Working a value if it is still in use. Personal property At our recent Game Changers Conference, we were collaborations between our colleges and universities, tax is not something that is levied against proud to announce that more than $2.6 billion businesses, nonprofits, and civic leaders is critical to residents for the furniture and other items of development funds have come into central bringing about this futureproof economy. in their primary residence. This is, again, Massachusetts. I know you join in my elation at all At the Chamber, we are enthusiastic about another way in which businesses pay more the wonderful initiatives that will come out these shepherding a new generation of agile leaders and than their fair share in taxes for city services. funding opportunities. workers that will help our region become a shining The higher the tax rate that is set for Already you can drive around the Worcester area example of modernization and a 21st-century and view improvement in action. Whether it is the economic powerhouse. I hope you will contribute businesses, the higher the taxes they pay ongoing development of CitySquare, the Burns to our collective efforts on this journey. and the higher their cost of doing business Bridge, or the newly renovated WRTA Center, becomes. That certainly factors heavily into we are seeing practical examples of building a - Robert E. Johnson Ph.D. is the board chair for the decisions businesses make about where to contemporary infrastructure. This infrastructure the Worcester Regional Chamber of Commerce, and locate, jobs and making investments. has already helped draw new industries like president of Becker College. EDITORIAL - NOVEMBER 2016 • PAGE 11 OPINION FROM THE PRESIDENT & CEO Vocational, technical education the Start-ups key to filling our workforce pipeline define our s the president and CEO A particular focus is to eliminate the annual waiting list of of the Worcester Regional students seeking to attend Voke/Tech schools. This statewide Chamber of Commerce, waiting list is conservatively estimated at 3,500 students next steps I am often asked what is annually. the biggest issue that we Also in 2015, AVTE hired respected researcher and Ahear about from our 2,300 members. economist Barry Bluestone of Northeastern University’s for city While concerns like health care and Dukakis Center to conduct an in-depth study of energy costs, taxes, and burdensome Massachusetts’ Voke/Tech education system. This study TIM MURRAY regulations are often raised, by far the included a comprehensive survey of employers across the and region single biggest issue presented is the need state. Of the responding employers, 90 percent indicated a for a trained, motivated and educated workforce. The need need to increase the number of Voke/Tech graduates. The By Timothy P. Murray for a robust workforce pipeline comes from businesses of all AVTE briefed the Baker/Polito administration on these n the aftermath of a successful sizes and sectors of the economy. results and the report. Woostapreneurs Forum held To meet the needs of our members and the business Subsequently, Gov. Baker joined the AVTE for the roll at Worcester State University, a community, the Chamber has undertaken a multi-pronged out of the Bluestone/AVTE study and announced that his shared belief emerged that we approach to expand the workforce pipeline in Central administration was proposing a five-year, $75 million capital should continue to enhance Mass. One of those initiatives has centered around the program for workforce development equipment to ensure Iopportunities for our immigrant vocational technical (Voke/Tech) schools, established under Voke/Tech students are trained on state of the art equipment. minority population to pursue starting Massachusetts Chapter 74, that serve our Chamber’s region Additionally, AVTE recently conducted a Statehouse their own businesses. of 35 cities and towns. advocacy day to meet with legislators to enlist their support We have taken great strives to In 2014, the Chamber convened the statewide Voke/Tech for adequate funding for Voke/Tech education in the Fiscal improve upon this goal, which is and Agricultural Schools Summit at the DCU Center with Year 2017 budget that is currently in deliberation on Beacon underscored in a report that the Seven the Mass Association of Vocational School Administrators Hill. Hills Foundation recently produced, (MAVA). Massachusetts House Speaker Robert DeLeo, AVTE also believes that, with proper resources, our Voke/ titled “Foreign Born Populations of a long time supporter of Voke/Tech education was our Tech and agricultural schools could eliminate waiting lists Worcester - Assessing the Challenges keynote speaker. Through panels and employer and student by operating 18-hours a day and during summers. They and Contributions of a Diverse presentations, we helped make the case to legislators as also could play a more significant role in worker retraining Community”, with additional research well as municipal and school officials as to why continued efforts in coordination with regional employment boards done by the UMass-Dartmouth Public investment in Voke/Tech education is critical to providing and our statewide community college system. Our students Policy Center. young people with meaningful career pathways and meeting want meaningful careers and Massachusetts employers need That study found that 21 percent or the needs of the employer community. more employees to fill good paying jobs. AVTE knows that 37,790 immigrants from 85 countries In 2015, the Chamber was the lead business organization we can meet both of these objectives by expanding access now live and work in Worcester among that helped to form the statewide Alliance for Vocational to our Voke/Tech and Chapter 74 programs and we will a total population of 183,000, which is Technical Education (AVTE) in partnership with MAVA and continue to work towards these goals to make Massachusetts considerably higher than the state-wide the Massachusetts Communities Action Network (MCAN). a more desirable place for employers to grow good jobs. average of 15 percent. The majority of that immigrant population came here As the co-chair of this effort, I am encouraged that the after 1990, with the largest populations coalition has grown to more than 23 organizations. The - Timothy P. Murray is president and CEO of the Worcester coming from Ghana, Dominican Regional Chamber of Commerce, and former city mayor and AVTE’s primary mission is to ensure that every child has Republic, Vietnam, Brazil, and Albania. access to high-quality career, vocational, technical education. lieutenant governor of Massachusetts. Foreign-born entrepreneurs in the city now account for 37 percent of all business owners, which is double the state average. That immigrant Canada is Massachusetts’ #1 customer population generates $947 million By Timothy P. Murray and beyond. annually in earnings. These jobs require continued investment in our trade When I started at the Chamber back in 2013, we decided to do a benchmark uring the 2016 Presidential campaign, there relations with Canada –– our number one customer. of the Central Mass. economy. So was considerable talk about the equity of Annually, $3.1 billion in goods are exported from we studied this issue extensively in international trade deals and whether they Massachusetts and $7.6 billion are imported from Canada. 2014 and identified nine sectors of help or hinder the U.S. economy. During In 2015, Massachusetts exported more than $2.2 billion of the Central Mass. economy. The four those conversations, it was critical for all product to Canada. largest sectors were health care with not DAmericans, and the people of Massachusetts, to fully Travel and tourism between Massachusetts and Canada is only UMass Memorial and St. Vincent’s understand the incredibly important economic and trade part of the positive two-way economic impact as well. In 2015, but also community hospitals and small medical service start-ups; higher relationship between the U.S. and Canada. approximately 886,300 Canadians visited Massachusetts and education with 38,000 college students Speaking before a large audience gathered for the spent $365 million, and Massachusetts’ residents spent $721 here spread across nine institutions who Chamber’s Business & Government Forum sponsored million traveling to Canada. all are major employers and employee by Ventry Associates on April 5, David Nathan Alward, Canada and their business partners have collaborated recruitment hubs; countless financial Canada’s Consul General to New England, offered a with the Commonwealth and other states on energy trade services and high quality banks; and fascinating overview of this successful relationship. Prior to projects with a determined focus toward environmental manufacturing that continues to David Alward’s role as Consul General, he served as the 32nd protection and preservation while continuing to reduce its develop jobs with 100,000 vacancies premier of New Brunswick, a position comparable to that of own carbon footprint. expected between now and 2020. Not surprisingly, the fastest growing governor in the U.S. Here in New England and throughout the U.S., Canada in the Central Mass. economy is the French Canadians are one of our region’s largest is a strategic partner in energy production to the tune innovation sector with scientific and demographic and played a crucial role in Worcester’s early of $11 billion annually, helping to lower this region’s technology industries that are expected development. By 1870, nearly 40,000 French Canadians high energy costs both for consumers and businesses. to grow by 38 percent by 2020 - many had settled across Central Massachusetts. What many may Hydroelectric power accounts for more than 60 percent of being small start-ups incubated right not know is that even today, our Canadian ties continue to Canada’s electricity generation, making Canada the world’s here in Worcester. This is computer be a core contributor to successful trade and commerce in third largest producer of hydropower. A recent study by design, video digital gaming, and Massachusetts, not to mention travel and tourism. the Massachusetts Clean Electricity Partnership found robotics firms to name a few. That’s buying power meets real There are 219 Canadian-owned companies operating hydropower reduced wholesale electricity, natural gas, and community impact, but we need in the Commonwealth providing 26,000 jobs in nearly emissions by $603 million annually in Massachusetts. Along to continue to invest in this great every economic sector with average salaries of $57,610. with low operating costs, hydropower is also renewable and renaissance our entire region is This amounts to $1.5 billion that contributes to paying for offers storage capacity that complements other renewables, powering with both existing and housing, taxes, goods and services, and more in Worcester such as wind and solar. emerging economic ecosystems. PAGE 12 • SMALL BUSINESS ROUND-UP - NOVEMBER 2016 Early internship pays dividends for Bartholomew WORCESTER - As an Assumption Bartholomew’s early experiences College junior back in 1977, Thomas inspired his own commitment to Bartholomew was fortunate enough providing internship opportunities at through his own accord to be hired as his company today coupled with the an intern at the former New England growing trend toward younger people Mutual Life Insurance Co. (now under becoming more interested in the Metropolitan), planting the seeds for financial services field. His company what has become a successful career in hosts high school and college students financial services. for semester-long formal programs. Bartholomew interned as a sales The firm’s last intern this past spring associate for the last two years of his was a junior at West Boylston High schooling and then went to work there School, which hosts a formal internship full-time, leaving in 1981 for a new program. Over the years, at least 10 opportunity at the Worcester County students have benefited from the National Bank. In 1994, he founded company’s paid and unpaid tutorials. and currently serves as president of One of those former interns from two the Worcester-based Bartholomew & years ago, Kathleen Glowacki, is now Company, Inc. Today, his company back on his team as a full-time analyst sports a team of 23 employees, who just started in that role this month. including registered representatives, As an intern, Glowacki was also to a full-time job where I knew I would 1 - Barron’s Top 1,200 listing is based registered assistants, and support staff involved in client services and analytical not only love the work, but also the on assets under management, revenues that manages in excess of $1.4 billion work. “She was such a talent that we team that I work with,” Glowacki said. generated by advisors for their firms, annually. His firm was honored in were right on getting her to come back Bartholomew feels the most difficult quality of their practices (which includes 2016 as Barron’s “Top 1,200 Financial here,” Bartholomew said. “She went to aspect for his new and younger examination of regulatory records), and Advisors for 2016” and as the Financial school as an economics major and this employees to learn involves knowing philanthropic work. Times’ “Top 400 Financial Advisers.” is something she always has wanted the differences and relationships “Instead of coming out of to do. This was clearly right in her between product and process. “The 2 - Financial Times Top 400 is based school starting from scratch when wheelhouse.” product is textbook and reasonably on each advisor’s performance in several I graduated, I already had a couple Glowacki stuck with financialstraightforward,” he said. “But learning primary areas, including assets under years of experience and was able to services studies in college because the product application, or process by management, asset growth, compliance get a head start on a lot of other folks,” she knew it would be a field that which you measure results will take record, experience, credentials, and said Bartholomew. “At the tail end of constantly changes and allows for new years to master.” accessibility. For the full methodology, the recession in the late 1970s, there learning daily. “After interning with the The largest challenges his interns and please visit ft.com. was not a lot of employment around. Bartholomew team, I experienced a the company face today is managing So I was fortunate to have had that real-life example of my dream to keep growth, understanding regulatory (Thomas J. Bartholomew, AIF® is a opportunity.” monotony as far away from my working hurdles and delivering on client financial advisor located at Bartholomew Back then, internships were not life as possible along with maintaining expectations, given Bartholomew & & Company, Inc., 370 Main Street, Suite nearly as prevalent and organized as those topics that I was interested in,” Company, Inc. has grown assets for all 1000, Worcester, MA 01608. He offers many of today’s formal agreements are Glowacki said. 22 years minus one dip in 2009 when it securities and advisory services as an crafted between colleges and employers. She later became a research intern, still managed to break even. Investment Adviser Representative of “Colleges did not generally place which not only encapsulated the big- “We’ve had over a billion dollars Commonwealth Financial Network®, interns back then,” Bartholomew said. picture of economics, but also a new in assets for the past three years,” he Member FINRA/SIPC, a Registered “And the failure rate in the insurance world of investigation to understand says, which makes it one of the largest Investment Adviser. Fixed insurance business is still quite high. When that the complex details of finance for financial services institutions inproducts and services offered through company hired me as an intern, it was the betterment of real people and Central Mass., and a very attractive one CES Insurance Agency. He can be reached something quite new and not done to institutions. “The internship was really for interns to place at. at 800-440-8807 or attom@bartandco. any great level of success.” the best of every world, and it led me com.) Entrepreneurs assess hospitality’s future WORCESTER – Three entrepreneurs who have in what we are presenting that people positively disrupted Worcester’s rapid growth in want to buy?” the food and hospitality industries explained their Eisenhauer added that growing approach to finding success during a Game Changers competition for the restaurant business conference panel discussion on Oct. 14. industry “is the best thing that can Moderator Roberta Brien, vice president of projects happen to us” because Worcester is at Worcester Business Development Corporation, becoming a dining destination. She was joined by Ed Russo, owner of Lock 50 at 50 Water feels Worcester’s booming restaurant St.; Troy Siebels, president & CEO of The Hanover hub should now be thought of as Theater; and Alina Eisenhauer, executive chef and highly as Providence’s, if not more. owner at Sweet Kitchen & Bar on Shrewsbury Street. “There is no reason we should Russo, who hails from a previous career leading not be on the same level as Boston,” equipment and lab design for large pharmaceutical Panelists Ed Russo, owner of Lock 50 at 50 Water St.; Troy Siebels, Eisenhauer added. “That can’t happen companies, decided to open a restaurant recently with president & CEO of The Hanover Theater; and Alina Eisenhauer, without a lot of diversity in restaurants. Lock 50 located in a historic building in the Canal executive chef and owner at Sweet Kitchen & Bar on Shrewsbury I think the next step is for our districts District offering a café during the day and a sleek, Street. to become connected. The one piece contemporary restaurant in the evening. He opened Center,” Siebels said. “We added depth to the stage to that is missing is sustainability and the restaurant with several apartments above because host broadway shows on tour. It’s about going all in connecting all those pieces so people don’t see all the district and city is making a big comeback as well and laying out a vision and to position yourself to be these different districts.” as a new ice arena set to open adjacent to his business. successful. Perception is reality.” Russo said Worcester is not the “ugly step sister “We tried to bring our building back to what it Eisenhauer has made a name for herself not only to Boston.” He welcomes competition, adding would have looked like in 1910,” said Russo, adding through Sweet Kitchen & Bar that opened in 2008 in that there’s a large group of restaurateurs who that the renovation earned his business the Chamber’s a smaller space on Shrewsbury Street and moved five meet regularly and talk about how to better brand Silver Hammer Award. “It’s everything that is going years later to its present location. She has also enjoyed Worcester. All panelists agreed that with all the new on around me that is making it successful.” several national television appearances including apartment units being added to the city, more retail With performances exceeding 140 playing to Chopped, Cup Cake Wars, Re-Wrapped, and overall is sorely needed. “I think we have identified the black audiences of 180,000 annually, the 2,300-seat Hanover victor on Sweet Genius. eye of Worcester,” Russo said. Siebels added that it is Theater is now anchor and catalyst to a vibrant and Moderator Brien asked panelists what is missing all about connectivity and changing perceptions that growing theater district with an active master plan. or now here in the city that would make new Worcester really is a walkable city. A new performing arts conservatory will also soon businesses sustainable? Siebels said his theater is not “Every restaurant owner I know, the one thing that open there. It took $30 million to renovate the 1926 trying reinvent what is being put on stage, his team always comes up is more retail,” Eisenhauer said. “In historic theater. “We created Worcester’s Lincoln is putting “great entertainment” on stage. “What is it each district, there is an opportunity for that happen.” SMALL BUSINESS ROUND-UP - NOVEMBER 2016 • PAGE 13 Railers bring pro hockey back to Worcester WORCESTER - The city will begin up about 90 percent of a minor league its new chapter of hosting professional hockey team’s revenue,” Rucker said. hockey in October 2017 when the With one year to go before the Premier “AA” ECHL Hockey League Railers’ first puck drops, the team is opens its 30th season, making it the currently 14th out of 29 ECHL teams in third-longest tenured professional corporate sponsorship and advertising, hockey league behind only the National and 16th in season ticket sales. Rucker Hockey League and the American added that he expects to be within the Hockey League. Top 5 in both these financial areas by The Worcester Railers will play the time the team begins playing in a its home games at the DCU Center, market much smaller than the other a 12,239-seat building located in top four ECHL teams. downtown Worcester. The DCU “This is a city primed for explosive Center opened in 1982 and underwent growth,” Rucker said, “with a downtown a multi-million-dollar renovation that offering an 18-hour lifestyle. This will was completed in 2013. be a city where you can shop at eclectic, As keynote speaker, team owner independently owned retail stores all up Cliff Rucker told attendants at the and down Main Street and apartment Worcester Regional Chamber of Cliff Rucker, president and owner of the Worcester Railers, was keynote density above all those stores. I look Commerce’s recent Game Changers speaker at the recent Game Changers business conference. forward to the Canal District’s growth business conference that “if you believe fed by a new sports center that will so strongly in something, then you league hockey world said it could not any of that. I wanted to create my own bring up to 500,000 turns of the door actually have the capacity to make happen as a successful venture. reality.” annually. I see people milling about others believe it as well. You have the “Worcester is too close to Boston, I While Rucker said the Sharks after sporting events at new restaurants capacity to create your own reality, was told; there’s no network tv station; were successful from a sport play and at the Mercantile Center and The Grid. which in turn brings everyone you there are too many choices for hockey management standpoint, they failed I see young entrepreneurs staying in connect with into that same reality.” and entertainment dollars; it could at the business aspect. Rucker said the the city.” When Rucker came to Worcester not be done without a Boston Bruins Sharks were 27th out of 30 teams in the Learn more about the future of a few years ago to look into replacing affiliation; and Providence Bruins AHL for ticket sales, and 25th out of 30 pro hockey in Worcester and join the the outgoing Worcester Sharks hockey would never let that happen,” Rucker teams for corporate sponsorships and Founder’s Circle today by visiting www. team, almost everyone in the minor said he was told. “I did not listen to advertising. “Those combined make worcesterprohockey.com. 2016 Chamber Award winners heralded Shi-Shi’s Lounge – Small many cases, we view these volunteers 2010, it set the stage for an important Junction Shop Lofts Business of the Year as an extension of the Chamber staff. partnership between Massport, the Located on Chandler Maureen certainly falls into that City of Worcester, and Chamber of Purchased by Brady Street, it’s a neighborhood category. Commerce’s business community. Sullivan Properties and business in the true sense Maureen puts in many hours of Two years later, when Thomas Glynn the Starr Development Partners in 2012, the Eurayshia -- Shi Shi’s hosts events service for many different ambassador became CEO of the Massachusetts that bring the community assignments including welcoming new Port Authority, that partnership grew Junction Shop Lofts is our Williams second Silver Hammer together including ladies’ members to the Chamber, greeting exponentially with his support of the recipient. Spanning nearly night and other opportunities for them at events, inviting businesses to Chamber. a city block on Beacon Chris social gatherings. join the Chamber, and supporting staff ••• Street, the building was Starr ••• with various volunteer activities. Euro-American Logistics – constructed in 1851 near Emerald Meats – Joe Cohen Retailer ••• Family Owned Business of the Year three railroads, and served as a major of the Year Award Marvin Silver - Christopher, Hays, center of manufacturing in Worcester. Wojcik, & Mavricos, LLP Located at the Worcester These renovated lofts feature Located on Chandler – Chamber Achievement Award Regional Airport, Euro- stainless steel appliances, original Street, the bustling deli and American Logistics has reclaimed hardwood or bamboo floors, butcher shop was founded Marvin Silver’s years of been helping our local granite countertops, and sophisticated a dozen years ago – in service as an ambassador business community to ship colors, all in combination with the mill’s characteristic soaring ceilings 2004 – by Robert and Joan J. Culbert have witnessed many their Made in Central Mass Culbert. changes at the Chamber – 4 products all over the world. and large windows. Eric ••• CEOs, 2 moves, dozens of For their generations of Busenburg Lock 50 ••• new staffers, hundreds of first-class service, they are GFI Partners – Richard B. initiatives, and thousands Marvin the 2016 recipient of the Chamber’s Silver Our final recipient of the Kennedy Business of the Year Award of events. He has been a Family-Owned Business of the Year. 2016 Silver Hammer Award constant through it all. Not ••• is the perfect Chamber This 610,000 square only is longevity his strong suit – he SILVER HAMMER AWARDS story. A successful chef foot industrial behemoth also does double duty. Marvin has been dreams of opening his own was on a 36-acre blighted a member of the Chamber’s board of Edge at Union Station restaurant, finds a building and vacated property directors for the past 6 years. Located at 6 Grafton Ed Russo in need of a new life, invests in desperate need of ••• on the edge of Route both money and and hard redevelopment. Ryan Canuel – 290 but in the heart of work to open a dining establishment Steve in an area of the city that is on the rise Goodman GFI Partners’ $26 million Entrepreneur of the Year the city, The Edge at redevelopment plan to Union Station has a rich with other entrepreneurs who are just renovate this property is Ryan Canuel, a graduate history that has been as motivated to bring the canal district creating a multi-use industrial building of one of the top digital brought back to life to life. with a modern, first class, commercial gaming schools in the world, with the restoration of That’s just what Tim and Ed Russo industrial facility -- the type of space Becker College is part of the Rick and this historic building. and Sean Struder did. This trio of family Mary Shaffer members brought together culinary that was lacking in the city’s inventory. region’s growing mobile Vision Development Ryan invested $33 million skills, business savvy and a lot of sweat ••• gaming industry. Canuel into this large property known as the equity to launch Lock 50 – a unique Maureen Raillo ••• Osgood Bradley building creating 82 dining experience with atmosphere. (Airport Limousine) – Thomas Glynn, CEO, Massport – units of university housing for the city’s Located at 50 Water Street, the Ambassador of the Year Chamber Advocate of the large college population and young restaurant aims to bring back the heart The Chamber of Year award professionals. Just steps away from and vitality of the Canal District with Commerce ambassadors When ownership and the train station, The Edge at Union a creative landmark featuring unique are an important team of operations of the Worcester Station is centrally located near some storefront designs, a beautiful mural professionals who assist us Regional Airport were of the city’s best restaurants, museums, and an upscale modern restaurant. with a variety of duties. In turned over to Massport in T. Glynn parks, bike paths, shopping and more. M. Raillo PAGE 14 • IN THE NEWS - NOVEMBER 2016 Retail revolution next step for Worcester WORCESTER – If there was one Panelists, from common theme born from the Oct. left, included 14 Worcester Regional Chamber of Robert Bran- Commerce Game Changers business ca, principal conference, it would be the golden at Branded opportunity that now exists for retail Management developments in Worcester. Group, Amy In a breakout morning discussion Chase, owner titled “Retail Revolution” sponsored of the Cromp- by Country Bank, panelists agreed ton Collective, that retail is the one component of Eurayshia Worcester’s unfolding redevelopment Williams, renaissance that has yet to fully get owner of Shi traction. The table is certainly set for Shi’s Lounge, a retail resurgence with three new and Charles hotels, a forthcoming new ice arena, Norton, presi- the redevelopment of CitySquare dent of Franklin project (Mercantile Center), more Realty Advisors. than 1,000 new apartments spread Below, panel across 10 different developments, Moderator and tens of millions of dollars being Roberta Brien, invested in both city infrastructure and vice president streetscapes. of projects at Other developments are also playing WBDC. key roles, including commuter rail and airport expansion, Hanover Theater’s blossoming footprint, and at least seven new retail developments, panelists new downtown eateries opening within agreed that it will also need to solve a the next year at Mercantile Center and major challenge in labor and workforce across the common at The Grid District shortages affecting almost all industries in addition to Shrewsbury Street’s right now. “As labor cost increase, it well established restaurant corridor. really is going to be a confluence of Space and access are also being created events because real estate is getting more with many larger, older commercial expensive,” Branca said. “Commodities, buildings being redeveloped into retail fuel and interest rates are historically destinations as well as the planned low. When those things change, I think 70,000-square-foot bus station on you are going to see some carnage Grove Street with mixed used office and because all businesses have loans and retail. all loans have financial commitments.” “We’re witnessing $2.6 billion being Branca said that the city needs invested into our city,” said panel to learn from its mistakes, such as moderator Michael Jacobs, a partner the isolated North Cinemas theater at NAI Glickman, Kovago and Jacobs, being built in an old industrial park a full service commercial real estate far outside the downtown area where firm based in Worcester. “There are there’s no interest in spin-off retail. more new developments underway in On the other hand, the former Public years that is developing Mercantile the Foothills Theater site. the city than in any other time during Works buildings just off Shrewsbury Center’s sprawling downtown complex As to attracting more retailers to the the past seven generations. There are Street have become a potential Triple to replace most of the former Galleria city and reasons why national retail is more national and regional retailers A redevelopment site with thousands Mall with new mix-used office, retail, historically so light here, Moderator analyzing and touring our market than of commuters passing by daily. “That’s hotel and restaurant space - said timing Jacobs concluded, “If a space is not we’ve ever seen.” a good opportunity for retail,” Branca is everything. prototypical, they won’t do it no matter For Robert Branca, principal in added. Norton originally shied away from how much logic it seems to have or several family enterprises including the remnants of the Worcester Fashion opportunity there is.” Branded Management Group that LOCATION, LOCATION, Outlets mall when it was first put on Norton added that his first floor, leaner owns and operates a large chain of LOCATION… AND TIMING the market in summer 2014 because it square footage approach to building Dunkin’ Donuts franchises as well as was too fat at 200,000 square feet of two more retail downtown is primarily commercial and residential real estate, due to the 1,000 new apartment units Amy Chase, owner of the Crompton story retail. “I knew that second story one key to his success is seeking out retail was challenging in any market,” spanning 10 developments that exist iconic properties to redevelop. As Collective, said she grew up in places or are now being added downtown. like the Fashion Outlets and Greendale Norton said. an example, Branca used the 1930s What unlocked this potential barrier Retail traditionally follows residential Edward Buick Building and Harrington Mall, but found nirvana when she developments, he said. visited other cities as a young fashion was the need by UMass Memorial Corner developments to illustrate how Health Care to expand its footprint historical properties can find new life designer fresh out of college. “There were farmers’ markets, craft breweries and find 80,000-square-feet of prime – even ones like Harrington that had downtown space. Norton had that tenants residing in it during President and cool coffee shops where you could just sit outside, go get a cool gift and vacant space and delivered the deal, $2.6 billion in private Lincoln’s Administration. leaving an additional 50,000 square feet “They were largely abandoned when just spend a day,” she said. and public Investment Chase brought that inspiration back of space on the first floor to lease to we took them over and we knew that future retail businesses, not including • 1,000 new downtown luxury and to Worcester with her 2012 business we could make something special in the old Foothills Theater space. loft-style apartments launch on Green Street. “I felt the area them,” Branca said, adding that doing “That smaller size of retail felt better where I needed to be had to be walkable • 3 new hotels – 380 new hotel rooms away with the city’s dual tax rate would to us,” Norton said. “This enticed us to and had to be able to grow. I needed • 1,500 new jobs, dozens of business attract more retail. “We were able to move forward to do the project.” opportunities, office space attract Class A tenants because of that. space for other businesses to join me With three locations, two opposite Worcester has a good stock of historic and wanted to be in that neighborhood. • New Worcester Sports Center, city common and a third two-story retail, restaurants, entertainment buildings that retail can occupy.” The Canal District was the perfect base building attached to the new parking One prime example of that is for that,” Chase added. garage, Norton said the unfolding • $18+ million in Main Street found in Branca’s first major tenant at The fear of increased competition tenant mix at Mercantile Center looks improvements including streetscape Harrington - Harvard Pilgrim Health from an influx of additional retail & infrastructure such as paving, bike very promising with two local operators lanes, and lighting Care – which was looking to establish businesses is simply overstated, lined up so far and currently being in itself here as an outsider new to this according to Eurayshia Williams, negotiations with a third national firm. • WRTA Hub market. “That [building] allowed them owner of Shi Shi’s Lounge hair styling. In the near future, Mercantile Center • Updated Wayfinding System to put themselves on the map day 1 “Competition is a way for me to grow,” will unveil an additional 30,000 square because they were in such a highly she told about 100 gathered audience feet of space on the Commercial/ visible location.” members. “I look at other business Front Street side that will entertain a owners as a friend, as an ally.” variety of retail options, including three UNPRECENDENTED LABOR SHORTAGE FACTOR Charles “Chip” Norton, president restaurants. Norton said he wants to MOMENTUM of Franklin Realty Advisors – an active complete phase 1 of retail development If the city is going to attract major firm in Worcester for more than 20 before deciding possible future uses for IN THE NEWS - NOVEMBER 2016 • PAGE 15 Game Changers gather at Mechanics Hall EXPO, FROM PAGE 1 “The average manufacturer for every $1 invested with us gets $28 in Realty Advisors and the CitySquare return,” Healy said. “Worcester has 20 project; impressing the importance percent of its gross domestic product in of Worcester Regional Airport upon manufacturing private industry.” MassPort board members; advocating for the new Heart to Hub Express Train from Worcester to Boston; and resolving environmental issues to facilitate a first class renovation of the 100-year-old WRTA site on Quinsigamond Avenue. The lieutenant governor added that a recent $5 million grant for UMass Medical Center is another true breakthrough. There are only a handful of devices in New England that assist researchers in better understanding the inner workings of the atom that could lead to more individualized medicines. “We need to utilize our assets better. We’re one of the largest property owners in the Commonwealth,” Polito said. “Why not put parcels that are not being utilized to better use? That turns into tax revenue and brings in more jobs.” One unfolding example of that vision, Polito added, now exists at the site of the Worcester State Hospital recovery center near UMass Medical School where an 80-acre site will be re- utilized as 500,000 square feet of future bio-manufacturing firms, estimated at generating 400-500 good paying jobs. “Our biggest asset is people and our biggest opportunity,” Polito said. “If we’re not matching through our education system what’s happening in the workplace, then we are not being as From left to right, Worcester Railers owner Cliff Rucker, Lt. Gov. Karyn Polito, and Game Changers co-sponsor Fallon competitive as we should be and we’re Health led by President & CEO Richard P. Burke spoke about the many developments completed or underway in the city. losing market share. Our commitment [in Massachusetts] is building the nation’s highest skilled workforce.”

GAME CHANGERS IN MANUFACTURING This educational component, Polito said, is evident in Worcester with the growing demand for more skilled manufacturing workers, driving innovation between vocational From left to right, Chris Starr, Brady Sullivan; Rick Shaffer, The Edge; Gilbert Winn, Winn Companies; Joe Donovan, The schools and two-year colleges. With Grid; Robert Cox, Bowditch & Dewey; Glenn Gaudette, Ph.D., WPI; David Crouch, ten24; Laurie Leshin, Ph.D., WPI. manufacturing employment losses of more than 112,000 between 1996 and 2006 alone, a straight line projection would suggest that the remaining 300,000 manufacturing jobs in Massachusetts will completely disappear by 2025 unless new workers are identified and an aging workforce retrained. To combat that glaring statistic, the state is helping to expand Worces- ter Tech’s veterinarian medicine From left to right, Steve Rothschild, Access Fixtures; John Killam, MassMEP; Craig Blais, WBDC; Christina Andreoli, training capacity as well developing Discover Central Massachusetts; Steve Goodman, GFI Partners manufacturing workforce pipelines at Clockwise Quinsigamond Community College from top and WPI. In addition, the state recently left, Service kicked in $200,000 in urban agenda awards grants to help low income families were given obtain manufacturing training and to Charles jobs as part of larger $9.3 million in Monahan of MCPHS U., workforce training capital funds as well Jack Healy, as another $12 million to help re-train retired the aging manufacturing workforce in MassMEP Massachusetts. founder, Jack Healy, who helped found Mass Lisa Manci- Manufacturing Extension Partnership ni of CSX, in 1999 and retired just this past year, and Ann Tripp of received an award at Game Changers Hanover for his decades of vision in that Insurance. industry. In accepting the honor, Healy Awards said the recent workforce development were pre- partnership between area vocational sented by schools and colleges have helped Chamber retrain 300 long-term unemployed President people with new skills and now placed Tim Murray and Chair in high paying manufacturing careers Dr. Robert with good wages. Johnson. PAGE 16 • WORCESTER REGIONAL CHAMBER OF COMMERCE NEWSPAPER - NOVEMBER 2016

Price of Home Per Square Foot by Community

Tax rate disparity hits $225 $229 $222 250% higher than Worcester $190 $208 small businesses hard $150 $143 Does not include tax bill. TAXES, FROM PAGE 1 “We must create a $92 more competitive tax $75 in 2016. The city also retains the lowest actual home price regionally at rate. A majority of small $190,500 with at least 500 more square and medium-sized feet than surrounding towns. businesses don’t have Grafton Holden Shrewsbury Auburn Millbury Worcester “Even in some years where the ability to access a TIF Worcester’s commercial rate was and afford attorneys and Home Cost, Taxes, and Size by Community being lowered, you were still getting $6K better quality and value for homes in accountants to navigate 5,854 Actual Property Tax by Community a dollar per square foot than people in that process...” $5K 5,173 5,200 neighboring communities with lower rates were,” said Stuart Loosemore, $4K 4,159 Esq, the Worcester Chamber’s General - Timothy P. Murray, 3,916 Counsel & Director of Government President & CEO 3,522 Affairs and Public Policy. “You get a Worcester Regional $3K better home here for a lower number. Chamber of Commerce Grafton Holden Shrewsbury Auburn Millbury Worcester

We’ve tried to move away from it’s Actual Price * $349,500 $299,900 $400,000 $229,900 $214,000 $190,000 Comparison just the rate as that is only part of the new $8 million, 110,000-square-foot More for Less On average, equation.” addition at 70 Hartwell St. in West House Size in housing in Square Feet 1,840 1,308 1,803 1,104 1,500 2,072 Worcester costs less than in Boylston, occupying a 163,000-square- surrounding towns and are usually Average Home $342,182 $298,326 $398,336 $232,921 $236,606 $187,815 larger. foot lease. It is unclear what property Cost TIFs A CATALYST tax liability will exist, or if future BUT NOT PANCEA tenants will immediately occupy Curtis Not only is Worcester’s average residential tax burden lower than surrounding Prepared by Worcester Regional communities, the cost per square foot it less than half of that of neighboring Industries’ existing 150,000-square- Chamber of Commerce towns resulting in Worcester residents getting a greater value for their dollar. 9.22.16 To partially combat higher business foot Worcester headquarters at 111 * SOURCE: RedFin.com as of 9.22.16 taxes, the city of Worcester has provided Higgins St. and three other city Tax Increment Financing (TIF) plans to locations. The company plans to move increase commercial property values, to West Boylston in July 2017 when utilize the TIF as a tool.” “everything is nearby or right around retain existing Worcester businesses construction is completed. Juxtaposed between the city’s the corner,” including the rail port interested in expanding operations, In contrast, a TIF agreement formed Curtis Industries and GFI Partners authority, which he uses to export his attract new business and private last year between the city and GFI experiences sits one of its newest TIF products from Main South to overseas. development, and reduce the financial Partners was the primary catalyst for a applicants, Chacharone Properties, When the opportunity arose to purchase risk to ensure development projects newly constructed 610,000-square-foot which is seeking tax relief in order to the building he was renting space in at move forward and are successful. 150 Blackstone River Road warehouse allow Table Talk Pies to expand from 118 Cambridge St., Trenta decided it However, when Worcester’s residential development in the Quinsigamond its existing Worcester and Shrewsbury would be a good investment and would tax rate is applied to the overall tax Village neighborhood. locations to construct a new $4.6 provide security to the tenants. Since levy in comparison to commercial/ After completion, a 15-year TIF million, 50,000-square-foot building 2012, Trenta’s tax bills have increased to industrial properties, TIFs account for propelling the $26 million, 36-acre in the South Worcester Industrial Park. well over $8,000. Hesitant to pass too only a small fraction of the equation. redevelopment will create about 300 The TIF, which was approved by the City much of the burden on to his tenants, Council in September, would make the There is also ceiling on how many new jobs over five years and generate Prime-Air continues to shoulder more city’s tax rate more comparable to those TIFs any municipality can afford to $1.4 million in property tax revenues of the burden. Couple these high taxes negotiate. annually. Future tenants will include available in surrounding communities. The company began construction with the rising cost of health care as The widening disparity that exists Auburn-based Imperial Distributors, well as increasing sewer and water rates, between Worcester’s residential and existing tenant Mid-States Packaging, this fall following state review of the and Trenta is finding it hard to operate. commercial split tax rate is most and Gallo Wines. TIF, and the company plans to move Likewise, the Maykels opened the profound in the recent decision “Because of Worcester’s high 30 employees here and add 50 new jobs popular EVO restaurant in Worcester in by Curtis Industries, LLC to leave industrial tax rate, Steve Goodman over five years. Without the TIF, the 2008, which recently was relaunched as Worcester where it has existed for (Founding Partner at GFI) would not expansion would never have happened Bootleggers Prohibition Pub, provider almost 50 years. The company is taking have been able to offer a lease price under the city’s high commercial tax of a fun, eclectic dining experience. advantage of West Boylston’s much to Imperial that was competitive for rate. Table Talk moved some of its lower single tax rate of $18.45 per modern, commercialized spaces,” said operations to Shrewsbury a few years Like many successful business owners, $1,000 of assessed valuation - almost Timothy P. Murray, president & CEO ago because of a similar TIF deal struck the Maykels have considered expanding half that of Worcester’s commercial of the Worcester Regional Chamber there and that town’s much lower single beyond their Chandler Street location rate - padded by a $803,000 TIF deal of Commerce. “This only happened tax rate of $10.67 per $1,000 of assessed and growing their workforce. approved by that town’s voters last here because we artificially reduced valuation. However, the rising minimum wages, August. the commercial/industrial tax rate via “We must create a more the high cost of food and inventory, The deal gives the maker of vehicle a TIF. We feel more businesses would competitive tax rate,” said Murray. the constant volatility of energy costs, cabs and accessories a two-year, 100 strongly consider Worcester as a prime “A majority of small and medium- and the city’s high tax rate have left the percent tax elimination period on a development location if the tax rate sized businesses don’t have the ability family-owned business discouraged. was lowered as not all businesses can to access a TIF and afford Since 2012, the Maykel’s have seen a 13 attorneys and accountants percent jump in taxes. to navigate that process. A “Small businesses struggle to make more equitable rate makes ends meet and it is important to our it competitive, allowing family to continue to provide our for job creation and customers with a place to purchase reinvestment.” natural and organic foods; that becomes harder and harder with ever increasing costs,” said Albert Maykel, Jr. SMALL Since 1973, the Stultz family BUSINESSES has owned and operated Standard Auto Wrecking on Granite Street in FEEL THE Worcester. Worcester made sense PINCH because “it has everything” and their loyal customer base knows where One further downside they are located. to TIFs is most small The auto parts dealer has done businesses lack the financial everything to keep costs low by resources and staff to modernizing processes but running pursue them. a company in Worcester has been Alex Trenta, owner of difficult. In 2012, Standard Auto Prime-Air Blower, Inc., saw its valuations for three parcels chose to start his business increase by 74 percent, with a 44 in Worcester because percent increase in their taxes.