Berkshire Innovation Center Hitting Number of Funding Hurdles
PITTSFIELD, Mass. — The plans for the Berkshire Innovation Center have hit a number of financing snags.
On Tuesday, the City Council was informed that the city did not receive a grant from the U.S. Economic Development Agency that was eyed to improve the gateway to the William Stanley Business Park and the Berkshire Innovation Center. The news is on top of a still dormant funding gap for construction, penned at $3 million, which has delayed construction.
BIC officials say they still have a number of companies and educational organizations signed on to be members of the building, which is hoped to provide research and development for small and medium-sized advanced manufacturing companies. But there is no resolution of the funding gap.
"We are so close to changing the manufacturing and economic landscape of Berkshire County. A shovel can be in the ground by September if we can close the funding gap quickly. We are committed to working constructively with the Massachusetts Life Sciences Center and the commonwealth to make the Berkshire Innovation Center a reality," reads a statement from BIC leadership including Stephen Boyd, Ellen Kennedy, and Pittsfield Economic Development Agency Executive Director Corydon Thurston.
The Massachusetts Life Sciences Center granted the city $9.7 million for the project in 2014. The shared work space is intended to host the latest technology to allow member agencies to develop new products. The funding included some $2 million for equipment and $7.7 million for construction.
The city allocated a quarter of a million dollars from the General Electric Economic Development Fund, which was matched by PEDA, to kick start the organization of Berkshire Innovation Center Inc. Additionally, the City Council agreed to a lease on the William Stanley Business Park and a tax increment financing agreement.
However, bids for construction came in more than $600,000 over the construction allotment of $6.5 million, with the lowest bid coming in at $7.1 million. That, however, did not include a metal panel exterior, the fit-out of the clean room lab space, and the parking lot, which BIC officials have characterized as "essential" and as part of what was approved by the Massachusetts Life Science Center.
"The bids for the stripped-down version of the building alone, even without the 'add-alternates,' came in at $686,000 over the total available construction budget. Once the 'add-alternates,' standard construction contingencies, and other construction requirements are included, the total funding gap becomes $3 million," BIC officials wrote.
The $3 million gap was mostly unknown outside of BIC officials until recently and it triggered alarm among the City Council. (iBerkshires was told that the bids were on a stripped-down project at the time but the actual difference in cost for those other pieces was unknown and an email to the project manager about it went unanswered.)
Ward 1 City Councilor Lisa Tully has now filed a petition asking BIC officials to come before the board to explain the situation. Project Manager Rod Jane is expected to present to the council on June 14.
"It is a significant project for the city of Pittsfield and it does seem like the target is moving," Councilor at Large Kathleen Amuso said.
The city had also applied for a $2.5 million grant from the U.S. EDA for tertiary improvements to such things as the Woodlawn Avenue intersections at both East and Tyler street. The Woodlawn Avenue bridge project is nearing completion — a project from the state Department of Transportation — but it does not extend to the intersections. Other portions of that grant including bring high-speed fiberwire to provide businesses with alternative options for internet was pared out of that application.
Last month, the City Council approved a $1 million match to a $1 million grant from the EDA for just those intersections. That order was rescinded on Tuesday when officials found out the city did not receive the matching grant.
"It's a very competitive grant. There hasn't been an EDA grant in Pittsfield in the last 20 years, or maybe ever," Director of Community Development Janis Akerstrom said.
Akerstrom said the federal agency didn't see enough of a tie in between the road intersections and the job growth envisioned from the BIC.
Loss of the grant doesn't rule out the East Street intersection. The state Department of Transportation has started designing a project for East Street that has been eyed for a number of years but not programmed to go to construction. MassDOT typically only starts design when funding is eyed. The county's Transportation Improvement Plan does have a little more than $2 million in federal highway funds currently not allocated that could be a possible funding source.
"DOT is moving that project up. They are going to be working on East Street now. They are working with the design team right now," Akerstrom. "That is moving forward sooner than thought."
Director of Finance Matthew Kerwood said the city doesn't have any money planned in the capital budget to take on the project itself. The development of a Plan B to do that construction has yet to be determined.
"Some of the money included in this involved the design. We would have to probably look at this in two phases — the design phase and the construction phase," Kerwood said.
Despite the challenges, BIC officials are staying to course and hope for a September groundbreaking. Stakeholders include 10 private companies that have signed membership agreements, 10 that have signed letters of intent and 10 educational and research institutions. General Dynamics and Berkshire Bank are still supporting the effort.
"Never before has a project in Berkshire County received such widespread support from the private, public, and educational sectors. It has spurred enthusiastic and unprecedented collaboration and energy. The BIC project is being effectively managed by a top-notch collaborative team including leaders from BIC, Pittsfield, PEDA, and BCC," BIC officials wrote.
"It is a pivotal project that is priority number one for economic development in the Berkshire region. It will help retain the manufacturing jobs we already have in the Berkshires and help create new job opportunities for students and residents of the region."
Tags: berkshire innovation center, BIC, business park, life sciences, PEDA,
