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Springfield City Council funds Union Station's $145,606 deficit, with some worrying about 'perpetual cycle' of city bailouts

SPRINGFIELD -- The City Council approved $145,606 in supplemental funds for Union Station's operational budget Monday night to prevent a deficit in its first year of operation.

Some councilors, however, said they remain concerned about the amount of city subsidies that might be needed in future years.

The vote occurred as the historic Union Station nears its one-year anniversary, having reopened last June following a $95 million restoration on Frank B. Murray Street.

Councilor Jesse Lederman said he understands the importance of the station to the city and region, but is concerned if the city subsidy will be "perpetual." Councilor Marcus Williams also raised concerns about there being a "perpetual cycle" of needing city tax revenues.

The city initially provided $750,000 for Union Station for its first-year operations, but revenues were less than estimated this fiscal year, leading to the request for additional funds, officials said.

MGM Springfield contributed an additional $650,000 to the first-year budget, and the station received revenues from many transportation, retail and office tenants.

Councilors raised some concerns and questions about Union Station's deficit. Union Station is owned by the Springfield Redevelopment Authority, which serves as the city's urban redevelopment agency.

Union Station in Worcester is also owned by its redevelopment authority, and the station has needed annual subsidies from that city since the station reopened in 2000 after a $32 million renovation. It has annually operated with a deficit.

SRA Executive Director Christopher Moskal said Springfield Union Station is 71 percent occupied and a priority is to attract more tenants.

There are further improvements occurring to the station including a new $8.2 million platform being constructed and expansions in rail traffic from Connecticut that will aid the station and its revenues, Moskal said.

Tenants at Union Station include Peter Pan Bus Lines, Greyhound, the Pioneer Valley Transit Authority, Dietz & Co. Architects, Sixt Rent A Car, a Subway sandwich shop, Dunkin' Donuts, Commuter Variety newsstand and some retail kiosks