By Michael Lafleur, mlafleur@lowellsun.com
LOWELL -- Boston-based development firm Trinity Financial has agreed to pay the city up to $7 million for the rights to transform a large swath of the so-called Hamilton Canal District into a $500 million extension of downtown.
At issue are about 15 acres of city-owned land on the fringe of the downtown, now largely occupied by blighted buildings and vacant lots and trisected by three historic canals -- the Hamilton, Lower Pawtucket and Merrimack.
The city acquired land through negotiated purchase or its eminent-domain powers, representing a nearly $8.2 million public outlay.
The plan is for Trinity Financial to steer $500 million to $800 million in private investment over the next 10 years into nearly 11 district acres, converting that area into 2 million square feet of new development: a mix of 350,000 square feet of new commercial space, 700 new apartments and condominiums, and an estimated 1,000 new jobs.
City and Trinity officials recently agreed to the $7 million cost for those 11 city-owned acres, as well as a number of other terms that will be contained in a formal disposition agreement on the district. The remaining district land will be sold to the state for construction of a new $125 million judicial center.
Under the agreed-upon terms, the first phase of construction would begin within 14 months of signing a formal disposition agreement and must include a commercial component plus renovation of the decrepit Appleton Mills complex -- the district's most prominent eyesore. The first phase of construction would be complete within 36 months.
Trinity would pay the city at least $1 million for any land involved in that first phase, with the balance of the $7 million to be paid at a later date in the course of the 10-year canal-district project, minus up to $4.8 million in environmental cleanup costs, according to Assistant City Manager Adam Baacke, director of the city Division of Planning and Development.
A formal land-disposition agreement between the city and Trinity must be ratified by the City Council. City Manager Bernie Lynch said that agreement now is being finalized. He expects a council vote on the matter by June.
Lynch added, however, that the fact that the Boston firm has come to terms with the city on a number of important issues "certainly convinces me we made the right choice with Trinity Financial."
"It's certainly very exciting for us, and it's very reassuring," he said. "This project is so important for the city. Trinity's going to do a great job with it."
If all goes as planned, Lynch said construction could start as early as sometime next year.
The state Division of Capital Asset Management will acquire the remaining four acres in the district to be used for the judicial center.
Baacke said the sale price for that judicial-center site will be large enough that the city will recoup in excess of the originally estimated sale price of $10 million for all 15 acres of district land. He declined to reveal specific financial terms for the judicial-center land, however, citing ongoing negotiations with the state.
He noted that city officials now estimate that after they are entirely built-out, the privately held district properties will contribute $4.1 million annually toward the local property-tax levy.
Trinity officials could not be reached for comment yesterday.
The firm already has held three community meetings on the district and unveiled its conceptual plan for the project. Two more community meetings are expected to be held in May and July, at dates that have yet to be set.
In the past, city and Trinity officials have said their goal is to develop a master plan for the district by September, which will involve adding a whole new section to Lowell's zoning code, specifically prescribing the area's appearance.
This story appeared in the Lowell Sun on Tuesday, April 1, 2008