Cambridge Waterfront Development Incorporated says it's moving closer to finalizing agreements tied to a proposed waterfront hotel and a larger Cambridge Harbor redevelopment project.
But board members also acknowledge that major infrastructure costs and unanswered financing questions remain key hurdles to moving the construction forward.
During the group's monthly meeting, CWDI officials said they and Pinnacle Hospitality Group have agreed in principle to plans for a six story 90 room hotel to be built on nearly three acres along the waterfront.
CWDI Vice President Tim Crosby told board members the purchase and sale agreement for the hotel property has now been finalized on the CWDI side and sent to Pinnacle for review. Crosby said officials hope the agreement could be completed within the next several weeks.
The hotel project has been under discussion for more than a year with earlier predictions that agreements would already be finalized by now.
Much of the discussion centered on how to pay for the infrastructure needed not only for the hotel but for future residential and commercial development of the waterfront district.
Officials estimate total infrastructure costs at approximately $54 million. That includes roads, water and sewer lines, lighting, drainage systems, and related improvements needed before additional development can occur.
Crosby said CWDI has been operating under the assumption that either Cambridge or Dorchester County would support creating a tax increment financing district, commonly known as a TIF. Under this arrangement, future tax revenues generated by the project would be used to help pay for infrastructure borrowing, but the financing picture remains uncertain.
Dorchester County currently lacks the credit rating due to ongoing delays in annual financial audits, while Cambridge City leaders have not yet approved any TIF authorization. Crosby suggested that CWDI may eventually be able to borrow against future TIF revenues, but acknowledge the process remains complicated and did not provide details about how that financing structure would work.
Board members repeatedly stress that the central issue is timing, specifically, how to pay for infrastructure improvements now before the development revenues begin flowing back into the project.
Crosby argued that future land sales, developer contributions, and tax revenues would eventually cover the costs. He also said CWDI controls waterfront property he estimated could eventually be worth between $35 and $40 million.
Board member Gavin Nichols described the project as entering a new phase. Nichols said CWDI and city officials are now shifting from conceptual planning toward execution, including zone amendments, overlay district requirements and regulatory approvals needed before projects can formally move through the city planning process.
Officials also described a new development review structure that would require prospective developers to first present plans to a CWDI design review board before entering the city's formal review channels. That process will rely on several planning documents already developed for the waterfront area, including the master plan, a regulating plan and design guidelines.
Residents attending the meeting raised questions about public oversight, competition for development parcels, and how financing decisions would affect the public.
Board members said future projects aside from the hotel already under negotiation would include a 30-day public comment period before final approval. Cambridge City Manager Glenn Steckman also said the city and CWDI plan to modify an existing covenant to ensure the public receives summaries of developer proposals before developers are officially selected.
CWDI officials said the organization's newly hired brokerage firm, McKenzie Commercial Real Estate Services, has already received interest from developers in Baltimore, Pennsylvania, and elsewhere in the region.
The board also discussed upcoming public events planned for the waterfront promenade, including 4th of July fireworks and a July 9th celebration marking the promenade's official opening. Officials described the promenade opening as a major milestone, noting that permanent and public access to the waterfront had consistently ranked among the public's top requests during earlier planning meetings.
The meeting also included the introduction of new CWDI board member Carol Baker-Jones, a longtime Dorchester County real estate broker.