WORCESTER, Mass. - In Worcester's Canal District, state and local leaders held a groundbreaking ceremony for The Cove, an apartment and retail development adjacent to Polar Park. 

They hope it's a sign of busier days ahead for the neighborhood, which saw several high-profile projects pushed back due to labor and supply issues. 

"It's going to be a real game-changer here for the Canal District," said Mayor Joe Petty. "This development engages with the neighborhood in a real positive way, and I would like to see it replicated in other neighborhoods. So many un-utilized parcels here in the city, parking lots or closed buildings, are being turned into homes for our residents and retail."

The Cove is named after the former Cove Music Hall, which occupied the site at 89 Green Street until 2018. The complex will feature 173 apartments capped with a rooftop deck overlooking Polar Park. There are also plans for a bowling alley, commercial space and a pizzeria. 

The prime real estate won't include any affordable apartments, which the city is in desperate need of, according to a recent report by the Worcester Regional Research Bureau.

Lt. Gov. Karyn Polito said while more work needs to be done to increase affordable housing, market-rate developments like The Cove are still ripe with economic opportunity.

"We need all kinds of housing, that's the biggest headwind facing Massachusetts, not having enough housing," Polito said. "When you don't have enough housing, it makes it difficult for people to afford living in a state that's considered a higher cost state in which to live, work, and raise a family."

If Worcester eventually adopts inclusionary zoning, developments like The Cove could be required to designate a small percentage of its units as affordable. In an interview with Spectrum News last week, City Manager Eric Batista said large-scale changes can get complicated when it comes to affordable housing.

"I think one of the biggest challenges with that is when you have a real estate market that's significantly growing, it's booming, not only in the city, but across the nation, it creates those compressions that we start to deal with in this city," Batista said. "We're going to continue to work at it."

The Cove was first proposed as a complex with more than 300 apartments until an amended plan came out late last year. Construction is expected to be completed by September 2024.