For new business owners, judicial center delay just bump in the road

By Rita Savard, rsavard@lowellsun.com

Barbara Livingstone, owner of the Livingstone's Courthouse Deli in downtown Lowell, says the delay in the judicial-center project will hurt her business. SUN/David H. Brow

LOWELL -- For businesses that took a chance on a blighted downtown neighborhood, the lure was simple: dollar signs.

But a new $200 million judicial center that promised to jump-start the economy in a long-neglected part of the city has been put on hold and business owners are beginning to worry.

"This feels like we're taking more than a couple of steps backward," said Barbara Livingstone, who opened Livingstone's Courthouse Deli with her husband, Fred, at 155 Middlesex St. last March.

"We're the Courthouse Deli without a courthouse in sight."

Livingstone, much like her neighbors, was counting on heavy foot traffic from the proposed judicial center, which has been touted as the centerpiece of the Hamilton Canal District revitalization. Now the project's completion date, originally set for 2013, has been pushed back to 2015 because of the state's economic hardships.

The state purchased the four-acre parcel at the end of Jackson Street in 2008 for $3.8 million to build a judicial center housing five court departments. It became the crowning piece to the 15-acre Hamilton Canal District plan, which, when completed, will boast up to 45,000 square feet of commercial and office space, 55,000 square feet of retail space, and 700 units of affordable and market-rate housing.

The idea of an up-and-coming bustling city center sold some merchants, who saw a strong potential for business growth. But the courthouse delay has touched a nerve in those who are also feeling the brunt of a recession.

While the areas of Jackson, Appleton and Middlesex streets still undergo cosmetic surgery, restaurants struggle to attract regular crowds.

Ervy Garcia, co-owner of Garcia Brogan's Cantina, Pub and Restaurant at 131 Middlesex St., located inside the new Early Parking Garage, called the delay a disappointment.

"It means two years of less business than we expected," said Garcia, who added that he's still fighting for a lunch crowd. "The courthouse was definitely one of the main things that attracted us to this area."

City officials say they too are disappointed by the setback, but stress that many parts of the Hamilton Canal District's development are moving forward.

"Even though construction on the judicial center has been moved back, people will continue to see construction crews mobilized in that area straight through," said Adam Baacke, assistant city manager and director of the Department of Planning and Development. "This project is moving forward."

A number of building projects are underway, with more coming before the courthouse is scheduled to break ground, Baacke said.

First is the Appleton Mills at 216 Jackson St., under construction now. Once finished, the rehabbed mill will feature 130 units of affordable housing for artists.

Next is the Freudenberg building. Last Monday, Trinity Financial, master developer of the Hamilton Canal District project, presented plans to the city's Historic Board to transform the large orange building, visible from Dutton Street, into about 60,000 square feet of office space.

Baacke said construction will begin when the Appleton Mills project is finished sometime around April 2011. Following these renovations are the addition of two new brick-and-glass buildings in the Appleton Mill yard along the Pawtucket Canal, which will hold a combined 135 units of housing.

Meanwhile, plans to relocate the Lowell Community Health Center inside the Hamilton Crossing Building on Jackson Street are also in the works. The medical facility is projected to employ as many as 300 people and "bring a significant population in the area during the day," Baacke said.

Another 42 units of housing are slated for 165 Jackson St.

Baacke said the city is also being eyed by a "significant employer" that's showing interest in the former Adden Furniture building on Jackson Street. If the employer chooses Lowell to set up shop, it could create 250 to 400 office jobs, he said.

"I can understand the concerns of business owners," said Mayor Jim Milinazzo. "But I'm confident the project is moving forward. They will continue to see a lot of activity in that neighborhood -- construction workers, cranes, increased foot traffic -- it's going to pick up."

State Sen. Steven Panagiotakos said the poor economy led to the delay. The state had to scale back its capital building plan, leaving fewer financial resources to finish the courthouse design and prepare for construction.

In fiscal 2010, the state borrowed $111.8 million to fund ongoing court and correctional-facility projects, including new court-construction projects in Fall River, Salem, Taunton and Lowell. During the past two years, Gov. Deval Patrick's administration has reduced the state's bond cap by $1.1 billion to ensure its ability to afford debt payments.

City Councilor Rita Mercier said she's optimistic the courthouse is still on track, despite the delay.

"It's very disappointing that the economy is hurting big projects like this that will be a boost to local businesses," Mercier said. "I feel bad for the businesses. I hope that they can stick it out, because in the end there will be a payoff."

C.J. Dunnaway, manager of Merrimack Reality Group at 155 Middlesex St., said the courthouse delay will most likely affect downtown real estate in the renovated mills.

"The courthouse was a big attraction," Dunnaway said. "People aren't going to buy units surrounded by a vacant buildings and a homeless shelter. It's like going into a war zone and putting in a commercial hotel. Nobody's going to want to go there."

Karen Bell, owner of The Club Fitness Center at 80 Middlesex Street, took a gamble on the neighborhood long before anyone was talking about a judicial center or downtown revitalization. Bell has operated the gym for 17 years.

"The promise of the project still going forward is the important thing," she said. "But I can understand that it's hard to imagine for some people who haven't been here that long."

Bell has seen the lights go out on longtime neighboring businesses, including Barney's Delicatessen and Parrot Hatters. But she's also seen lights turn on, with the construction of the Early Garage, the renovated Marston Building that houses the Courthouse Deli and Merrimack Realty, and the addition of Garcia Brogan's.

She remembered first putting up flower boxes outside her business. All her neighbors said she was "crazy."

"Sure, people stole them and knocked them down for a while," Bell said. "Now they leave them alone. It only took 20 years but it worked. If you have a vision, if you do whatever you can in your own neighborhood, you can make a difference. Things will change."

This story appeared in the Lowell Sun on Sunday, March 14, 2010.