HUD Approves $3.65 Million Loan Guarantee to City of Springfield; Loan to Finance the Redevelopment of the Historic Paramount Theater and Massasoit Building

Washington, D.C. – (RealEstateRama) — Mayor Domenic J. Sarno and Congressman Richard E. Neal are pleased to announce that the U.S. Department of Housing and Urban Development have approved a $3,650,000 million loan guarantee to the City of Springfield to finance a $41 million redevelopment of the Historic Paramount Theater and Massasoit Building. This transformative project is intended to provide a focal point for cultural and entertainment activities in western Massachusetts.

This project will preserve, repair and upgrade the historic Paramount Theater which has been closed since 2014, to create a performing arts center. The rehabilitation of the Massasoit Building, built in 1857 and remodeled in 1926, will reposition floors two through four back to its original use as an 81-room hotel and extensively restore and update the rest of the building, which has been vacant for more than a decade. The property is now under the ownership of the New England Farm Workers Council, which has proposed a significant investment in the property to bring back performance space and add a new hotel consisting of 75-85 rooms.

“This is another marquee redevelopment project will lead to significant job creation, increased local revenues and tax revenues here in Downtown Springfield,” said Mayor Sarno. “Plus, just steps away from the rehabilitated Union Station and MGM Springfield, patrons will be in the heart of all that our city has to enjoy. This jobs generator, combined with supporting arts and culture, is a win-win.”

“This grant from HUD to redevelop the Historic Paramount Theatre and Massasoit Building is just another positive step in revitalizing the downtown area,” said Congressman Neal. “As this building is just steps away from the reopened Union Station, it is poised to be a destination for travelers of all kinds. Congratulations to the mayor and the City of Springfield for this great achievement.”

“This is a project that will help solidify the Northern end of downtown’s Main Street,” said Kevin Kennedy, Chief Development Officer. “It will bring jobs, tourism, entertainment, and help serve as another top destination for the millions of new visitors expected in Springfield in the coming years. We are confident that the development team will produce a great product for Springfield and give new life and purpose to a historic building.”