COMMUNITY PROFILE
Prices rising as Chelsea's image improves
By Thomas Grillo, Globe Correspondent, 1/05/2002
CHELSEA - This gritty urban hub could be dubbed the "Comeback City."
A devastating fire in 1973 destroyed 30 city blocks, including more than 100 buildings and 60 homes.
In 1991, the Legislature placed Chelsea in receivership, after the city went bankrupt following years of inflated police and school budgets.
Under receivership, the post of mayor was eliminated, and a city manager was hired. In 1992, the city's work force was trimmed 30 percent; municipal fees were increased, and a budget deficit of $9.5 million was erased. The city's budget has been balanced every year since.
And in the late 1990s, the schools were turned over to Boston University in a partnership designed to save the troubled school system.
With receivership and bankruptcy in the past, Standard & Poor's recently gave the city an "A-" rating, citing "continued growth in reserves and the tax base as well as strong management practices and financial operations." Through its Economic Development Incentive Program, Chelsea has lured over $46 million in private investment since 1999.
"We've done a good job in building one success atop of another," said Jay Ash, city manager. Today, Ash has a list of 44 projects in the planning and development stages that represent the next phase of rebirth.
They include the transformation of 65 acres of former junkyards along Everett Avenue into an urban renewal district with a hotel, offices, and residences; a planned biopharmaceutical manufacturing facility; a proposed indoor soccer facility; the conversion of two former schoolhouses into artists' lofts; the transformation of abandoned Parkway Plaza, a 38-acre site of prime real estate; and construction of apartments and a hotel at the foot of Admiral's Hill.
As Chelsea's image improves, housing prices have risen, making it an alternative to the pricey neighborhoods in Boston.
Two-thirds of the city's housing stock is two- and three-family homes. In 1995, the median price for a multifamily dwelling was $65,000, according to The Warren Group. The median price has increased annually since then, to a relatively affordable $255,000 for a multifamily home today.
The single-family home market has not been as robust. In 1990, the median price was $110,000. By 1995 that had bottomed out at $70,000. It rose to $106,000 in 1997, but fell again in 1998, to $85,625. Today, the median price for a single-family home is $197,900, Warren Group said.
Lower prices and a chance to buy a fixer-upper have attracted many new residents. One of them is Michael Albano, a former resident of the South End of Boston who bought a condominium in Chelsea in 1996. Comparing Chelsea to an undervalued stock, Albano, a real estate salesman, said he was lured to the city because it has prospects for a better future.
"Anything that has fundamental value but has been beaten up is a strategic opportunity," he said. "I knew Chelsea wouldn't turn around overnight, but over the long haul it will rise."
The Industrial Revolution helped transform Chelsea, once a pastoral suburb that was settled in 1624, into a manufacturing center. Chelsea flourished, and its ambitious, ethnically diverse population boomed.
Just 1.8 square miles, Chelsea is adjacent to Boston Harbor on the Mystic and Chelsea rivers. Views of Boston's nearby skyline can be seen from the waterfront and from numerous hills. But for now, those water views are blighted by gasoline storage tanks and shipping facilities.
Still, being just minutes from Logan International Airport and downtown Boston, Chelsea offers commuters easy access. But the city has miles to go before it can attract the middle-class residents who insist on higher-quality schools and safer streets.
As Boston University approaches the end of its partnership with Chelsea in 2003, officials will be watching the Massachusetts Comprehensive Assessment Scores closely as they decide whether to renew their contract with the university. So far, the results have disappointed. While the city's aging schools have been replaced, at a cost of $92 million, the district's MCAS failure rate has exceeded the state average in every grade and subject area in each of the three years the test was given.
Still, Chelsea has tireless boosters. David Diaz, a recent immigrant, has a Web site devoted to Chelsea with a simple message:
"I love my city!"
Chelsea has survived so many catastrophes that some observers marvel it's still standing.
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AT A GLANCE
Incorporated: 1739Distance from Boston: 0.5 miles Population: 35,080 Tax rate: $14.52 per $1,000 Median house price: $197,900 Government: city manager, council Public schools: Chelsea High School (9-12); Williams School (6- 8); Mary C. Burke (1-5), Shurtleff School (pre K-1), Tudor Hill (4-6), Northeast Regional Vocational School (9-12) Nearest hospital: Massachusetts General Hospital Community Clinic Transportation: MBTA commuter rail and bus service
More information on Chelsea from Boston.com's Your Town section.
© Copyright 2001 Globe Newspaper Company
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