WORCESTER, Mass. - The Worcester Redevelopment Authority approved a cooperation agreement with the City of Worcester on Friday to access a $6.8 million loan authorization to acquire the Denholm building.

The City Council approved the loan authorization in early April.

The WRA plans to use $3 million of the loan order to buy the building from the Denholm condo trust. The remaining money will go towards the building’s demolition, relocation assistance for condo owners, carrying costs, soft costs and contingency.. 

As Spectrum News 1 reported last week, the Denholm trustees are working on an agreement of distribution of sale proceeds to the 36 condo unit owners. Trustees have also been working on steps needed to dissolve the trust to allow the sale of the building to take place.

The WRA will explore private development options and get feedback from developers before deciding on whether to demolish the building, but the city said demolition is likely.

A final vote for the WRA board’s consideration to sign the purchase and sale agreement could take place at their next meeting. As part of the proposed agreement, the City will allow the condo owners at least four months to vacate the Denholm building once they complete the deal.

If the vote passes, the WRA will issue a request for proposal to see who is interested in buying the property and what their plans would be.