April 7, 2009
By Robin Kaminski/The Daily Item

The office of Economic and Community Development is in the process of applying for $5 million from the Department of Housing and Urban Development (HUD) to assist future projects associated with the Waterfront Master Plan.

The Section 108 Federal Loan Guarantee Program would allow the office to lend low-interest loans to businesses to facilitate economic development to underutilized areas of the city, namely the waterfront.

Community Development Director James Marsh said the money would be used to maintain, create, or retain low-income jobs such as maids at future hotels on the Lynnway or employees at new restaurants.

"It's another pool of money for the project," he said.

Land and infrastructure improvements would also qualify for the funds.

Donald Walker of the Economic and Community Development office said once the South Harbor power lines are relocated, the funds would be used to assist any developers who wish to undertake a project in the waterfront area.

"The purpose is to put financing in place for the developers," he said. "We anticipate that as the market turns, development will occur along the waterfront, which is comprised of 305 acres."

Walker said developers who have interest in demolition, environmental cleanup, site preparation, site improvements, business expansion, start up businesses and acquisition of property on the waterfront would be eligible for loans.

The developers would then pay the loan back to the city, and then the city would repay HUD.

Walker said he expects to hear the outcome of the HUD application in three months.

City officials are hopeful the massive waterfront master plan and powerline relocation will pave the way for development, create jobs and boost the lagging economy.