WORCESTER — On Thursday, July 23, 2026, the Worcester Redevelopment Authority held off on advancing a proposed two-year lease with Luciano’s Restaurant after a neighboring Union Station tenant requested access to portions of the Grand Hall and proposed changing how the venue is operated.
Luciano’s Restaurant, the current tenant, submitted the only response to the authority’s request for proposals for the Union Station restaurant space and management of the Grand Hall.
The restaurant proposed a 24-month lease at $11,500 per month, $500 above the authority’s minimum bid. Luciano’s projected hosting approximately 53 events in the Grand Hall annually and did not propose significant changes to its existing operations.
During the meeting, Worcester’s Chief Development Officer Peter Dunn said representatives of 961 Restaurant & Lounge, a Lebanese restaurant and nightlife venue also located inside Union Station, asked the authority to consider an alternative operating structure that would expand the business’s access to the Grand Hall. Under the proposal, Dunn said 961 would receive the first right of refusal if there are no other events happening in the Grand Hall sponsored by Luciano’s.
The functions 961 proposed hosting in the Grand Hall were “family friendly” events such as birthday parties, brunches, baby showers, and family gatherings, but since 961 operates a licensed smoking bar, those younger than 21 cannot enter its existing space. Dunn said access to the Grand Hall would allow the 961 to accommodate children and families.
Dunn said that this proposal would be “disruptive to the current way that events happen in the Grand Hall” because Luciano’s has a Section 12 License from Worcester’s License Commission, which means that the Grand Hall is part of Luciano’s licensed premises and you can’t have two licensees in the same licensed premise. (In Worcester and throughout the Commonwealth, a Section 12 License is an on-premises alcoholic beverages pouring license).
Dunn said representatives of 961 could contact Luciano’s to request permission to use the area in front of 961’s space for family gatherings when no other event is scheduled in the Grand Hall. However, Dunn said alcohol service during these events could complicate or interfere with Luciano’s longstanding liquor license and lease arrangement.
Attorney Mark Borenstein, representing 961, told the authority that the business has invested more than $1.3 million in its Union Station location. He added that any entity holding a caterer’s license could host events in the Grand Hall.
“Theoretically, anyone who occupies that Grand Hall could do so pursuant to a caterer’s license,” Borenstein said. “So, what we’re proposing is not just a right of first refusal potentially for 961, but also to think really creatively about the Grand Hall as a space. It could provide an opportunity for a more flexible, active, and equitable operation for the Grand Hall.”
Borenstein said the authority could restructure the arrangement so Luciano’s Section 12 liquor license would cover only the restaurant’s interior. Luciano’s would then operate under a caterer’s license when holding events in the Grand Hall.
“Our proposal isn’t seeking to…usurp Luciano’s operations of the hall,” Borenstein said. “It’s simply to provide flexibility when they don’t have an event for other people to have events in the hall.”
Borenstein said 961’s proposal had two components. First, the business would receive access to the first 30 feet of the Grand Hall at no additional fee, creating a space similar to the area Luciano’s currently uses. Second, 961 could request use of the entire hall on dates when Luciano’s has no scheduled event and pay Luciano’s a fee for the space.
Dunn explained that the city managed Grand Hall bookings and allowed outside caterers to use the venue before Luciano’s assumed responsibility for its operation in around 2007. He said the previous arrangement “was fairly unmanageable” and did not use the hall to its full potential.
Luciano’s was subsequently given responsibility for booking, managing, and handling the logistics of events in the Grand Hall. Dunn said the restaurant’s rent reflects its exclusive control of the venue and that allowing other operators to use the hall could reduce the value of the lease.
When asked if Luciano’s had been consulted about 961’s proposal, Borenstein said informal discussions had occurred. However, he said any agreement would need to be incorporated into the lease to ensure it could be enforced. Dunn said city officials had not yet discussed changing Luciano’s liquor-license arrangement with the restaurant.
Borenstein said 961 already holds an annual Section 12C caterer’s license, which would allow it to serve alcohol during catered events. He said that, under the proposed arrangement, Luciano’s would have to get a caterer’s license to serve alcohol during events.
Dunn said that requiring Luciano’s to get a caterer’s license, which costs $1,500 a year and would require the restaurant to establish a separate bar in the Grand Hall and not permit the restaurant to serve alcohol from its own bar during events, could cause the restaurant to reconsider its proposed lease and cost the city $138,000 annually.
Borenstein later explained that 961 spent approximately $400,000 on its heating, ventilation, and air-conditioning system to limit the smoking bar’s effect on the rest of Union Station. He asked why Luciano’s was the only bidder “if it is such a desirable space,” and urged the authority to consider whether restructuring the lease could attract additional interest and increased use of the Grand Hall.
Dunn said the $11,000 minimum monthly rent likely discouraged other prospective bidders. However, he said eliminating the operator’s exclusive control of the Grand Hall and imposing additional conditions would probably make the lease less attractive. Jackson Restrepo, who represents District 5 on the Worcester Redevelopment Authority, expressed concern that Luciano’s could withdraw, leaving the authority without a prospective tenant.
Borenstein said that if the Worcester Redevelopment Authority lowered the rent and had an arrangement where more individuals/entities could use the hall, the city might ultimately make more money.
The authority’s chair, Sherri Pitcher, said members should visit Union Station to examine the proposed 30-foot area 961 wants to utilize and speak with Luciano’s before deciding how to proceed.
“I think we have some unanswered questions that we can address in the next 30 days and bring this up at our August meeting,” Pitcher said.
No vote was taken, and the authority plans to revisit the proposed lease and 961’s request at its August meeting.
