WORCESTER, Mass. — The Worcester Redevelopment Authority on Friday approved a cooperative agreement with the City of Worcester to access a $6.8 million loan approval to acquire the Denholm Building.
The city council approved the loan authorization in early April.
The WRA plans to use $3 million from the loan order to purchase the building from the Denholm Condominium Trust. The remaining money will go to the demolition of the building, help with the relocation of co-owners, possession costs, incidental costs and contingencies.
Like Spectrum News 1 reported last week, the trustees of Denholm are working on an agreement to distribute the proceeds of the sale to the 36 owners of condominium units. The trustees also worked out the necessary steps to dissolve the trust in order to allow the sale of the building.
The WRA will explore private development options and get feedback from developers before deciding whether to demolish the building, but the city has said demolition is likely.
A final vote for the WRA board’s consideration of signing the purchase and sale agreement could take place at its next meeting. Under the proposed deal, the City will give condo owners at least four months to vacate the Denholm building once the deal is finalized.
If the vote passes, the WRA will issue a request for proposal to see who is interested in buying the property and what their plans would be.