Two new hotel projects in Chelsea have received approval from the Planning Board this week. While the Zoning and Economic Development Boards must still take action, City Manager Jay Ash expressed confidence that construction could start as soon as fall on the $40 million combined investment. The development group behind the project previously built the Residence Inn on Beech Street.
“We’re on an aggressive timetable, and there’s much work to be done, but we’re very close to being at the point where we can announce a definitive timetable for the construction of the hotels,” Ash stated. “There’s a window of opportunity for us to attract two more terrific developments here, so everyone in City government is contributing to the process of putting us in the best position to capitalize on that opportunity.”
The City Manager, who has guided the development strategy that produced both the Residence Inn and Wyndham Hotels, announced last month that an agreement in principle had been reached with the Residence Inn developers to construct two more hotels in Chelsea.
One proposal calls for a 140-room TownePlace Suites by Marriott on long-vacant land at the corner of Central and Eastern Avenues. The other would be a 152-room Holiday Inn with a full function facility at the corner of Beech and Carter Streets.
Significant City involvement has been necessary to advance both projects. The City owns both sites: it acquired the TownePlace Suites property from the MWRA earlier this year and obtained the Holiday Inn property through urban renewal activities in 1999.
Currently, Ash is working with NSTAR to relocate a power line above the TownePlace Suites lot. Meanwhile, the City is collaborating with the EPA, DEP and MassDevelopment on environmental remediation of the Holiday Inn site.
Beyond these two hotels and the two already completed, Ash points to the pending FBI building development and the ongoing One North of Boston residential construction as indicators of the City’s economic development success. Since taking over the previously stagnant economic development program in 1996, Ash notes that 24 major projects representing over $800 million in investment have come to Chelsea.
“We’ve had a great run, and there’s no reason to think that we’re at the finish line,” Ash remarked. “We’ve got a great story and a tremendous team here, not to mention a location that we’ve finally figured out how to leverage. The results are new jobs and important new tax revenues are flowing in, and, maybe more importantly, a new image that many are taking notice of and pointing to as a real success.”
Regarding the hotel projects specifically, Ash noted that the EPA cleanup will require several more months and that relocating the utility pole at the Central Avenue site presents unexpected complications. Additional approvals from the other boards and City Council remain necessary.
“I’m confident in the end result because we have a track record of succeeding,” he explained. “The Economic Development Board has been tremendous, as has the Zoning and Planning Boards. And the City Council has demonstrated real leadership that has allowed my development team to get spectacular results. All signs point to us being able to continue to marshal those forces for further results.”
Ash indicated that he expects permitting to be finished by the end of August. Construction would then take approximately 10 months to complete both hotels, he estimated. The developers have committed to prioritizing local hiring.
Christine Thomas, a principal in the development group that owns the Residence Inn and the two proposed hotels through various limited liability corporations, expressed enthusiasm about the benefits the projects will bring to Chelsea.
“Chelsea’s been good to us, and we’re doing all we can to respond in kind,” Thomas stated. “Forty-percent of our employees at the Residence Inn are from Chelsea, we’ve been involved with numerous local organizations and efforts, we’ll soon be the city’s biggest taxpayer and we’re spending millions above what is necessary in order to develop a better quality product that reflects positively on our host community. Jay, the boards and the City Council have done right by us and we’re anxious to continue to return that respect and then some.”