The Cambridge Waterfront Development Inc. (CWDI) is preparing to move forward without its largest source of construction funding, as its primary federal grant winds down and remaining reimbursements inch toward closeout.
At last Thursday’s Board of Directors meeting, Finance Chairman Frank Narr said nearly $1.9 million from the U.S. Economic Development Administration has already been spent, largely on building the promenade. About $20,000 remains to be drawn, and the grant is now entering a closeout process expected to take 4 to 6 months.
As of year’s end, the organization reported just under $658,000 in cash on hand. Accounts receivable totaled roughly $400,000, mostly tied to EDA reimbursements. Narr said payments have since lowered that amount to about $105,000, still pending, with 10 percent to be retained until the grant is fully closed out.
“For nonprofit accounting purposes, grant money is recorded as a liability until it is spent,” Narr said, explaining that the funds are recognized as income only after they are used.
The board approved a 2026 project budget of about $653,000. Most of that funding is expected to come from remaining state and city grants and the anticipated sale of property within the development area. The budget also accounts for the possibility that the organization may need to draw on a line of credit while waiting for final federal payments.
The discussion reflected a turning point for the project. The federal grant that paid for the promenade and other visible improvements is now largely exhausted, meaning the next phase will not be driven by large construction grants. Instead, progress will depend on completing engineering work, determining the cost of new infrastructure, and securing private development to move forward.
Board President Angie Hengst said they are at a point where major financial assumptions must be finalized before any development agreements can move forward. With infrastructure design nearing completion and updated cost estimates expected this spring, she said the board needs clearer numbers before committing to next steps.
“We really need to lock in that development envelope and figure out those capacity assumptions before we move forward with those specific deal terms,” Hengst said.
Much of the meeting centered on what qualifies as “public infrastructure” because those costs will shape what can be built next. Board members clarified that infrastructure refers to streets, utilities, pump stations, and other underlying systems needed to support development.
It does not include buildings, a second phase of the promenade, or the planned park. Those distinctions matter because infrastructure must be designed and priced before the board can finalize agreements with a hotel developer or other private investors.
“This is infrastructure,” Narr said, referring to ongoing design development work covering streets, utilities, pump stations, and streetscapes across the property. He clarified that the work does not include a second phase of the promenade, the planned park, or any vertical construction.
Design development documents are expected by mid-March, with pricing anticipated by May 15. Narr acknowledged that current cost figures are based on conceptual estimates and that full pricing will provide clearer guidance on what the site can support.
In practical terms, that means infrastructure costs will shape how and when private investment proceeds. The board is working with a marketing broker and continues discussions tied to a hotel project, but members indicated that updated infrastructure pricing must come first.
The 2026 budget also allocates funds to complete the remaining promenade work, including construction closeout and banner installation, and about $76,000 for wharf repairs.
Planned work includes filling in a landscaped stormwater planter to create a direct connection between the wharf and the promenade, restoring other drainage planters that have filled with silt, addressing areas of settling and cracking in the pavement, and installing hardware to hang decorative banners.
Zoning changes are also in progress. Final draft design guidelines are under review by city planning staff, and state sign-off will be required before the proposal moves to the planning commission and City Council.
By late spring, updated infrastructure pricing is expected to clarify what the site can support and at what cost. From there, zoning approvals and potential property sales will determine whether the long-planned redevelopment advances beyond publicly funded improvements and into private construction.