An economic impact report released by Liberty Junction finds that the new Springfield Regional Justice Center will generate significant economic benefits for the city and state. BW Research, an independent research firm, produced the report.
The project will create an estimated 3,000 jobs and generate $419 million over the 3.5-year construction period. The report also highlights induced effects, or the effects of increased household spending on the local economy. It also provides the example of “a local restaurant hiring more staff because the construction workers have new disposable income and eat at this local restaurant.”
In July, the Division of Capital Asset and Management (DCAMM) selected Liberty Junction as the general contractor, and it has been the center of controversy in recent months. Local contractors expressed concern that they won’t have the opportunity to participate in the project, and two developers who lost the bid are suing Liberty Junction, alleging a conflict of interest.
Colton Andrews, President of the Western Massachusetts Building Trades Union, said that despite the backlash, there is wide support for the project amongst community members.
“It's a loud minority, I think that's the best way to put it. It's one particular developer that's disheartened at the result of the DCAMM process. And I think that FD Stonewater did a great job highlighting the benefits of this project from a local level and a tax incentive level,” he said.
James E. “Jeb” Balise, owner of USPB JV, LLC, is one of the developers that lost the bid and is suing Liberty Junction. In a statement given to NEPM, he shared his thoughts on the report.
“Springfield absolutely needs a new courthouse, and any new courthouse will put thousands of people to work,” he said. “But this biased report doesn’t change the facts: Liberty Junction proposed the slowest schedule of any finalist and a location that will land yet another terrible blow to downtown Springfield.”
The bidding process for local contractors has not begun. Officials have been meeting with labor unions and community members to introduce them to the project and find ways to involve them.