Downtown Intersection to be Reconfigured With State Money, Will Make Way for Hotel, Housing Project

There is $2.5 million from the state government headed to Salem to help reconfigure a downtown intersection and make way for new housing units, a hotel and commercial space.

The announcement was made by state Housing and Economic Development Secretary Greg Bialecki on Tuesday.

The money will be used to help pay to reconfigure the intersection of Dodge and Washington street and relocate public utilities.

The reconfigured intersection will make way for the construction of a 190,000 square foot mixed-use development by RCG that will include a hotel, 81 housing units and commercial space.

Previously, officials from RCG have said they plan a $45 million mixed-use development for the property, a project that Mayor Kimberley Driscoll has said will revitalize an underutilized downtown block.

The project at the corner will include a 65-foot-tall hotel with retail space on the first floor, build partially on the existing parking lot, which RCG bought from the city. The project could break ground as soon as spring, the Salem News reported in August.

Earlier this month, RCG tore down the former Dodge Street Bar and Grill to create a staging area for the project, according to a report by the News.

The announcement was part of $4 million in MassWorks grants for public infrastructure improvements on the North Shore announced Tuesday that also in $1.5 million for a Peabody Square Reconfiguration Project that will add new lighting, crosswalks and pedestrian safety features. The work there is also designed to support new development - 73 new residential units, the renovation of 124 existing residential units, a 54 room boutique hotel and commercial space.

“This $4 million in MassWorks grant funding allows the cities of Peabody and Salem to pursue important public improvement projects that will advance the North Shore’s economy by creating additional housing and commercial space,” state Senator Joan Lovely (D-Salem) said in a written statement about Tuesday’s announcement. “I’d like to thank the Executive Office of Housing and Economic Development for making this significant investment that will help with the revitalization of downtown Peabody and the economic development of Salem.”

The grant brings the total to $4.8 million in infrastructure improvements and public and community development funding in Salem since 2007, according to MassWorks.

“I am very excited to welcome Secretary Bialecki back to Salem for this important announcement,” said Salem Mayor Kimberley Driscoll. “The Office of Housing and Economic Development has been a terrific partner with our City in our continual efforts to create jobs, support our businesses, and grow our housing supply. The level of support the Patrick Administration has devoted to Salem over the years, especially when it comes to critical projects such as this one, have truly helped to transform our community for the better.”

Image: Massachusetts Department of Housing and Economic Development