Do you know what “negging” is? Negging is an act of emotional manipulation whereby a person makes backhanded compliments or constant critical remarks to another person to undermine their confidence and attempt to engender in them a need for the manipulator’s approval. The practice had a moment in the sun a few years back when pick-up culture was getting some media attention.
Last night, the Downtown and Economic Subcommittees convened for the purpose of hearing from the Lupoli Companies as to the lack of progress on their agreement to develop property in the Hamilton Canal District (“HCD”).
So, why did I feel like Lowell was being negged?
To recap, in the fall of 2020 (many months after COVID hit) the city worked out a deal with the Lupoli Companies for the development of various parcels in the HCD. A key component of the deal was that Lupoli would get a prime parcel for a parking garage that would suck money out of our own parking garage located a few hundred feet away. That garage is now complete and open.
Next, Lupoli was to move on to developing either Parcel 5, or a “signature” high-rise on parcels 2, 3 and 4. Fine, but that was supposed to have started in 2023 and construction was to have been substantially completed by 2026.
That hasn’t happened and “substantial completion” by 2026 isn’t going to happen either. So what gives? Why isn’t a deal a deal? For months we have been promised answers. Last night, we got a few answers but were left with more questions.
Mr. Lupoli was on hand to explain the purported reasons for the delay. After some remarks touting the experience and success of the Lupoli Companies, with specific emphasis on the successful Thorndike Exchange project, Mr. Lupoli itemized the reasons as to why he is no longer able to honor the agreement that he entered into back in 2020.
It was emphasized over and over (and over) that Lowell is a “Gateway City” and as per Mr. Lupoli “we all know what Gateway City stands for.” By definition, a gateway city is a midsize urban center that anchors regional economies around the state. Most Gateway Cities face stubborn social and economic challenges, yet retain certain assets and potential. In practice, a Gateway City is place with low self-esteem that should be happy that anyone is even asking them out on a date in the first place.
As to our short-comings, Mr. Lupoli threw the the Donoghue administration under the bus in revealing that the project was initially delayed as he was apparently sold a parcel of land that did not have clean title. Mr. Lupoli stated that this discovery took place “during COVID” and that City Hall was “virtually closed.” As such, Mr. Lupoli spent $500,000 of his own money to clear title “months and months later.”
Mr. Lupoli alluded to ongoing conversations with Manager Golden about that expense, suggesting that an effort is afoot to recoup some costs. Later, Councilor Nuon asked about when Mr. Lupoli learned of the defect. We received a chronology of events, but did not receive a date. A date would have been helpful in weighing the reasonableness of the delay. Nevertheless, Councilor Nuon didn’t insist on an answer to his question. I was also left wondering as to how the Lupoli Companies failed to spot the defect prior to purchase. I also don’t quite understand how this news wasn’t made public for what I would guess is a few years at least. People have been asking for answers for a long time…why not just tell us?
Next, changes in the global economy were cited – specifically an increase in interest rates and construction costs. As a consequence, honoring the original deal lands somewhere between less profitable and impossible. We were never told what the numbers looked like, we we’ll just have to accept it as a given.
In any event, we are being asked to alter the deal as Mr. Lupoli stated: “without your help, we can’t move forward.” Specifically, we would need to alter the form based code so that Mr. Lupoli could build one building vs. the three that the original deal demanded. In addition we need to provide help on MassWorks and HDIP Grants. Finally, Mr. Lupoli is seeking help with TIF and TIE tax breaks.
To answer a question posed above: a deal isn’t a deal when one of the parties is a Gateway City and has no better options.
After Mr. Lupoli concluded, councilors had an opportunity to ask questions. Of note, Councilor Descoteaux asked Asst. City Solicitor McKenna of the Law Department as to what remedies were available to the City if Lupoli failed to deliver. Atty. McKenna noted that the land disposition agreement is “very flexible.” Atty. McKenna then explained the situation from the point of view of the Lupoli Companies in highlighting the challenges faced in developing the parcels. However, he did note that if Mr. Lupoli was merely “over in Chelmsford making pizza, then we’d hold his feet to the fire.” Councilor Descoteaux failed to ask what, specifically, “hold feet to the fire” means.
Indeed, I was wondering the same. I don’t think he’s merely “just making pizza over in Chelmsford,” but I do see evidence of other Lupoli projects somehow moving forward despite the challenges cited last night.
At the end of the day, the Council will likely rubber-stamp these changes. We’re too deep into this process and we need to move on. Further, we’re likely much better off with Lupoli developing these parcels than anyone else. I think he’s done a good job with his other projects. Finally, as much as I may piss and moan, this is how development happens in ugly duckling gateway cities. If Lowell doesn’t bend the knee and make concessions, Haverhill will. If Haverhill won’t, Lawrence will.
Accept the negging and just be happy that you’re not alone at the end of the night.