WORCESTER, Mass. — New revelations on Polar Park show its financing district fell short of its tax revenue goals last fiscal year, and the nearly $800,000 shortfall has once again sparked conversation about whether the investment was worthwhile.

 The district’s inability to meet the target is frustrating for some economists like Victor Matheson, an economics professor at the College of the Holy Cross, because the park was initially pitched as a facility that would ‘pay for itself’ with the help of money generated from new hotels, businesses and apartment buildings surrounding it.

This larger vision is still a work in progress as evidenced by ongoing construction in the area, but where city leaders see opportunity, Matheson sees uncertainty.

“This is all about rolling the dice, and when you issue over $100 million worth of bonds, you’re taking on a huge amount of risk,” Matheson said. “Sometimes, those rolls of the dice don’t come up. And so far, they have not come up well for Worcester.”

In a letter to the Worcester City Council, City Manager Eric Batista signaled he remains optimistic about the long-term prospects of Polar Park.

“...Based on the development completed and in the pipeline, we remain confident that the DIF (District Improvement Financing Plan) will return significant funds to the municipality’s coffers as new development occurs and certain tax agreements expire,” Batista wrote.

One of the key factors causing the shortfall is a bioscience facility being built by Madison Properties which hasn’t made enough construction progress to begin generating tax revenue through Tax Increment Financing (TIF).

Tim Murray, president and CEO of the Worcester Regional Chamber of Commerce, said the bigger picture still looks hopeful.

“Eighty units on Washington Street done, completed, full,” Murray said. “The Cove is coming online as we speak, then the Table Talk lofts, 40 units as well. Those were not originally in the district plan, so that is good and positive news. I think the issues with Madison Properties, the city will appropriately vet.”

But Matheson believes the city took on a sizable risk when they built Polar Park, and whether the slow start to construction is due to COVID-19, inflation or other unforeseen circumstances, he feels it was a flawed bet from the beginning.

“If you’re selling the ballpark saying, ‘This is going to be a great ballpark because it’s going to be a sound economic investment,’ that was never based in reality at all,” Matheson said. “If you were saying, ‘Hey, this is a ballpark we want because it’s a fun amenity for the people of Worcester and we think it’s worth spending taxpayer money on to give people an entertainment option,’ I don’t think many economists like me would have objected particularly strongly.”

Properties opened in the Polar Park area in recent years include The Revington, District 120 and The Cove, all apartment buildings offering more than 400 total units combined.