Unum Sets CitySquare In Motion
An artist rendering of the $564 million CitySquare project in downtown Worcester. Unum is the first tenant to sign on, triggering the project's start.
At long last, the CitySquare development in downtown Worcester is moving forward.
Unum Group announced this morning that it will move its 700-person Worcester operation from Chestnut Street to the mixed-use project being developed by Berkeley Investments Inc. of Boston.
Unum is expected to occupy a 194,000-square-foot building to be completed at CitySquare in the next 19 to 22 months, according to a statement from the city that was made public this morning in advance of a 10 a.m. press conference. The building will be Leadership in Energy and Environmental Design (LEED) certified at the silver level.
"Needless to say we're thrilled about this just as you are," Kevin McCarthy, president and CEO of Unum US told Worcester and state officials and local business leaders gathered at the Massachusetts College of Pharmacy and Health Sciences.
Michael O'Brien, Worcester city manager, said the fact that the project is moving forward in a rough economic time is proof that Worcester can compete in the global economy.
"It's a shot heard ‘round the world," he said.
The company has signed a letter of intent to move to the new location and expects to wrap up a lease with Berkeley Investments within 60 days, according to J. Christopher Collins, senior vice president and deputy general counsel at Unum.
Young Park, president of Berkeley, said the company is also moving forward on financing the project.
"There are a few banks that are interested and do believe this is a project worth financing," he said.
In total, the project is expected to create 2.2 million square feet of commercial, medical, retail, entertainment and residential space.
The announcement triggers the release of public money to demolish the former Worcester Common Outlets mall that now stands on the site. The $564 million project, which includes $94 million in public investment, had been on hold for several years.
Lt. Gov. Timothy Murray said demolishing the old mall will rectify a mistake made in the 1970s, when the huge building split up the downtown area.
"Sometimes you have to, in order to build a community, you have to tear a bit of it down," he said.
Unum, a Tennessee-based employee benefits provider, has been looking for a new location since the fall. It had said it hoped to remain in Worcester but wanted to reduce its 400,000-square-foot operations center in a more modern building.
The speakers praised the cooperation among private participants and local, state and federal officials that has allowed the project to get this far.
"We are the poster child of this new approach to development, which is a true, functional public-private partnership," Young said.
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