Worcester Gets $4.95M in State Grants to Raze the Denholm Building

Worcester will receive $4.95 million in state Community One Stop for Growth grants for four projects, led by $3 million to demolish the vacant Denholm Building at 484 Main St. and turn its 1.2-acre lot into a development-ready downtown site. The Worcester grants also pay for north-side manufacturing infrastructure, new downtown wayfinding kiosks and a program to fill empty storefronts.

Gov. Maura Healey announced the statewide round on Oct. 1, and state Sen. Michael Moore, D-Millbury, detailed the local share on Oct. 22, saying eight projects in Worcester, Auburn, Shrewsbury and Westborough would split $9.97 million, according to The Worcester Guardian.

Where the Worcester grant money goes

The four city awards, as listed in the state’s award spreadsheet and reported by This Week in Worcester, are:

• Denholm Building, $3 million (MassWorks Infrastructure Program): demolition of the former Denholm & McKay department store building and preparation of the land beneath it.
• GreenTech Park & Greendale Revitalization Initiative, $1.65 million (MassWorks): awarded to the city and New Garden Park Inc., a nonprofit subsidiary of the Worcester Business Development Corp. that owns the land. The money will rebuild an existing roadway and install street infrastructure meant to support up to 1 million square feet of new manufacturing space on the north side.
• Downtown wayfinding, $250,000 (Massachusetts Downtown Initiative capital grant): a joint project with the Downtown Worcester Business Improvement District to buy and install four interactive digital kiosks and hang 88 new banners.
• Vacant storefronts, $50,000 (Massachusetts Vacant Storefront Program): help filling long-empty shops in the city’s Commercial Area Revitalization Districts.

The state announcement does not name the manufacturers that might use the GreenTech Park space, a construction schedule or a jobs estimate, the Guardian noted.

By the numbers: how Worcester’s share compares

The Denholm demolition alone accounts for about 61% of the city’s $4.95 million, and the two MassWorks awards together make up 94% of it, according to TBR calculations from the reported award amounts. The city’s awards are roughly half of the $9.97 million headed to Moore’s Second Worcester District.

Statewide, the governor’s office said this was the largest single One Stop round in the program’s history: $330 million for 403 projects in 207 communities. Worcester’s four grants equal about 1.5% of that total. Measured against each program’s statewide pot, Worcester’s two MassWorks awards ($4.65 million) are about 4.4% of the $105.1 million MassWorks total, its downtown grant is about 5.1% of the $4.9 million downtown initiative and its storefront award is about 8.6% of the $580,000 storefront program (TBR calculations from state figures).

Statewide totals from the Mass.gov Oct. 1 release; shares are TBR calculations.

What happens to the Denholm Building

The Worcester Redevelopment Authority bought the roughly 200,000-square-foot building in August 2022 for $3 million, using a $6.8 million municipal loan approved by the City Council that also covered demolition, tenant relocation and upkeep, the Worcester Business Journal reported. Before that, the building was an office condominium home to about 18 to 20 tenants, mostly nonprofits.

Under terms the authority and developer Menkiti Group agreed to in principle in April, the authority will handle demolition and asbestos removal, Menkiti will pay $3 million for the cleared land within six months of site preparation, and construction of two apartment buildings is expected to start within a year after demolition, the Telegram & Gazette reported. Peter Dunn, the city’s chief development officer, has said abatement and demolition would be covered with up to nearly $6 million in grants plus a $1 million loan, the paper reported.

Menkiti’s plan has shrunk from 233 units in 10- and 11-story towers to roughly 175 to 190 apartments in two midrise buildings, and any version must include at least 175 units, according to reporting by the Telegram and MassLive. Demolition is slated for 2027. The state grant pays to clear the land; it does not approve any specific project for the site.

What’s next

The Menkiti site plan still has to go through the Worcester Planning Board. The wayfinding kiosks, banners and storefront grants will be managed with downtown business partners, and the GreenTech Park road work depends on New Garden Park’s development schedule, which has not been announced.

For more on Worcester city business, see our report on Worcester City Council street repairs and the drone forum and our guide to the Worcester Homeowner Summit and new city rules.

Sources

• Mass.gov: Governor Healey Announces $330 Million for Economic Development and Housing Projects (Oct. 1, 2026)
• Mass.gov: Community One Stop for Growth Awards
• This Week in Worcester: Worcester-Area Projects Win Nearly $10M in One Stop Grants
• The Worcester Guardian: City gets nearly $5 million for Denholm demolition, manufacturing expansion and downtown improvements
• Telegram & Gazette: When will the Denholm building be torn down? Developer agrees to timeline

Additional sources

• Massachusetts Municipal Association: Gov. announces $330M for economic development, housing projects
• Hoodline: Worcester lands $3M grant to demolish Denholm Building (summarizing MassLive and Worcester Business Journal reporting)

Featured photo: Terageorge, Wikimedia Commons, CC BY-SA 3.0 (file photo of Worcester City Hall; does not show the Denholm Building).