WPI’s Plan to Purchase Two Hotels for Student Housing Faces Backlash from Worcester Leaders

**Worcester Leaders Oppose WPI’s Plan to Convert Hotels into Student Housing**

WORCESTER ― Worcester Polytechnic Institute’s (WPI) plan to purchase and convert two local hotels into student housing has sparked significant opposition from some of the city’s top business and political figures. These leaders argue that the move could severely impact the city’s tax base and undermine the goals of the multimillion-dollar Gateway Park Project.

In a letter dated Friday, the Worcester Economic Development Coordinating Council expressed strong disapproval of WPI’s intention to buy the Hampton Inn & Suites at 65 Prescott St. and the Courtyard Marriott at 72 Grove St. The letter, addressed to WPI President Grace Wang and the chair of the institute’s board of trustees, criticized the plan, emphasizing that it contradicts the original purpose of the Gateway Park Project.

The Gateway Park Project, a 55-acre mixed-use development, was established with approximately $170 million in public and private investments. The project aimed to clean up contaminated lands and repurpose old industrial buildings, creating a hub that includes WPI’s 125,000-square-foot Life Sciences and Bioengineering Center.

“The Gateway Park Project was never intended to use public resources solely for WPI’s campus expansion or student housing needs, which would remove property from the city’s tax rolls and place additional burdens on Worcester’s residential and commercial taxpayers,” the letter stated. It was signed by Mayor Joseph M. Petty, City Manager Eric D. Batista, and Tim Murray, president and CEO of the Worcester Regional Chamber of Commerce.

The potential loss of $780,000 annually in local property taxes and more than $850,000 in hotel/motel tax revenue is a significant concern, according to the Economic Development Coordinating Council. Additionally, the closure of the hotels would result in the loss of 100 jobs and reduce Worcester’s hotel room capacity by 25%, which could negatively affect the city’s ability to accommodate visitors for business and entertainment.

City Manager Batista declined an interview but issued a statement highlighting the potential financial impact on the city’s budget if the hotels are removed from the tax rolls. “The hotel industry is a crucial part of the city’s economy, contributing essential tax revenues that fund public works, safety, and facilities, including Worcester Public Schools,” Batista said. He emphasized the importance of expanding the city’s hotel inventory to meet the growing demand from conventions, tournaments, and large entertainment events.

Mayor Petty, who learned of WPI’s intentions just a week ago, expressed his frustration, stating, “I’m pretty upset by the whole thing.” He mentioned that Batista is expected to meet with WPI officials this week, although Petty himself will be in Chicago attending the Democratic National Convention. “Hopefully, we can convince [WPI] not to go through with it. My sense is they’re going forward with it,” Petty added.

Tim Murray described WPI’s actions as “incredibly disappointing” and criticized the manner in which the institute has handled the situation. “You almost get the impression WPI was trying to deceive people with what their intentions are,” he said.

The letter was also signed by Craig Blais, president and CEO of the Worcester Business Development Corporation, and Jon Weaver, president and CEO of Massachusetts Biomedical Initiatives. Weaver pointed out that the potential purchase of the hotels not only reduces the city’s tax revenue but also limits the availability of land for local biotech companies to build necessary facilities. He noted that the situation is further complicated by WPI’s recent purchase of a building at 50 Prescott St. to expand its Life Sciences and Bioengineering Center.

While WPI has the right to buy the hotels, Weaver questioned whether the move aligns with the community partnerships and the legacy of the Gateway Park Project. WPI declined to comment on the matter. According to a notice from the Massachusetts Development Finance Agency, WPI plans to use $26 million in state-issued bonds to purchase and convert the Hampton Inn & Suites.

The Worcester Historical Commission is also being asked to weigh in on WPI’s plans as they relate to 65 Prescott St., according to the commission’s Thursday night meeting agenda.

The letter from the Economic Development Coordinating Council expressed shock at WPI’s intentions, stating that the move violates the original goals of the Gateway Park Project, which were to create jobs and enhance the city’s tax base. “WPI’s lack of fidelity to the shared mission, vision, and history of the Gateway Park Project, which has existed for nearly 20 years, is disconcerting and will have severe reverberations that will make future partnerships with higher education institutions in Worcester much more difficult,” the letter warned.

The letter also noted that WPI already has student housing within the Gateway project, including at 10 Faraday St. Recent discussions had included the possibility of a new WPI dorm on Institute Road and a partnership with a private developer to build student housing near Gateway Park. Additionally, there were talks about a potential facility for student housing and academic research at the corner of Park Avenue and Sagamore Road on WPI property.

The letter described WPI’s decision not to purchase residence halls owned by the former Becker College, which could have housed over 200 students, as “perplexing.” WPI also passed on assuming leases held by Becker that would have housed another 245 students, a move that would have cost the institute $3.8 million.

**Contact Henry Schwan at henry.schwan@telegram.com. Follow him on X: @henrytelegram.**

Source: telegram.com

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