LOWELL -- The ambitious $800 million Hamilton Canal District revitalization project will break ground by the end of 2009.

The City Council voted unanimously last night to approve the $7 million sale of a 10.9-acre parcel within the JAM (Jackson, Appleton, Middlesex) Plan area to developer Trinity Financial.

Under the agreement, Trinity must begin work within the next 14 months on the first phase of the project, which includes restoring the historic Appleton Mills into approximately 135 units of artist live/work housing and redeveloping the 60,000-square-foot, six-story Freudenberg Building into commercial space. Plans call for construction on the first phase of the project to begin next May.

The entire project is envisioned to breathe life back into the 15 acres of crumbling ruins at the edge of the city's downtown, a long-forgotten gem of the city's industrial past. The plan, through infrastructure improvements, also is expected to connect the city's Acre neighborhood with the downtown, as well as improve pedestrian access from the Gallagher Transportation Terminal to those neighborhoods.

It includes creating 425,000 square feet of commercial/office space, up to 55,000 square feet of retail space and a mix of up to 725 market-rate and affordable-housing units. It is expected to bring 400 new permanent jobs to the area and $4 million in annual tax revenue to the city.

"This is going to serve as a model for big development projects in other cities," said Councilor Rodney Elliott.

City Manager Bernie Lynch praised the council for jumping on board with the project several years ago.

"When the City Council took the steps they took to move this project forward, they were being ambitious, they were being innovative," said Lynch. "They didn't know if we would lose money or even break even, but this project will bring more jobs than expected and more than double the anticipated tax revenue. This certainly is a win for the city."

Councilor Alan Kazanjian questioned whether Trinity Financial is stable enough, financially, to go forward with the project, given the country's current financial crisis.

Lynch said he is confident in Trinity's ability to see the project through. Trinity was chosen to take this project on, he said, over six other nationally known development firms based on its track record for acquiring both public and private financing for complex projects.

Lynch also assured Kazanjian that no taxpayer money will be used for the project and Trinity will work with local vendors during construction.

"We have a wonderful plan that reflects the input of many people, but it is just a plan," said Jim Keefe, president of Trinity Financial. "The real challenge is getting this project started, and we will do everything that we can to make this vision a reality."

Under the terms of the agreement, the project is slated to be completed in 10 years.

This story appeared in the Lowell Sun on Wednesday, September 24, 2008