Developers pitch 132-unit Westborough Plaza redevelopment; trustees approve negotiating team for subsidy talks

Developers for the Westborough Shopping Center on Lyman Street presented plans on May 9 to add 132 residential units to the southern portion of the site while preserving first-floor retail and renovating existing commercial space.

Attorney Mark Donahue, representing Colangelo Massachusetts Real Estate Trust, introduced the project and said the team intends the site to retain retail in front while adding a four‑story building with underground parking and a second renovated residential building. ‘‘We are proposing 132 new residential units between the two different buildings,’’ civil engineer Brittney Gessner of VHB said during a slide presentation, noting the proposal would add about 4.5 acres of improved landscaping and stormwater controls to the site.

Trustees focused questions on affordability, unit mix and whether any units could be age‑restricted. Gessner and Donahue said the proposed unit mix would be roughly 36 studios, 62 one‑bedrooms and 34 two‑bedrooms. Donahue said the developers would pursue local preferences rather than a strict age restriction because state guidance from the Executive Office of Housing and Livable Communities limits how age rules can be applied.

Town staff briefed trustees that current permitting and prior zoning actions require 25% of units to be listed on the state’s Subsidized Housing Inventory (SHI) for credit toward the town’s goals. Staff also described prior settlement proceeds the trust holds following the Highlands (East Main Street) settlement and noted that a portion of those funds could be used as subsidies if the trust and developer agree to restrictions.

To advance negotiations, Trustee Alan moved to appoint Mr. Bain, Ms. Storm and Mr. Edinburgh as a working negotiating team to discuss subsidy amounts, criteria and conditions related to the six incremental affordable units the trust may support. The motion was seconded and approved by trustees by show of hands.

Trustees emphasized the need to balance legal and financing constraints — including 40B and MassHousing program rules — against local goals for senior downsizing options and local preference. The trust asked the developer to continue dialogue and to provide financial and legal detail to inform any subsidy package.

The trustees took no formal subsidy vote on May 9; they authorized the working group to negotiate terms and return with recommendations and potential contract language.