As we speak, there are two major holes in the city’s urban fabric that are the result of stalled development – mostly due to financing issues.
The abandoned Columbus Center construction site.
The two specific locations are in Downtown Crossing (the site of the new Filene’s Tower that seemed to be making good progress before it was revealed yesterday that developers were struggling to secure funding) and four air rights parcels near the Hancock Tower on the Back Bay/South End border (the Columbus Center). Both have had issues securing the required funding for their projects.
Both of the above projects are supposed to be monumental developments that would revive two relatively dead areas of the city (Downtown Crossing and the border of the Back Bay and the South End). Unfortunately, all that has resulted to date has been delayed construction, leaving the city with two massive holes in the ground with relatively little going on.
In response, Boston Mayor Thomas Menino is looking to enact legislation that would require developers in the city to prove that they have the necessary financing in hand before they begin construction on major projects. In addition to preventing the city from being littered with holes, Menino is also hoping that the legislation could limit the amount of ‘flipping’ that goes on in the city (that is, a developer does site work for a project and then sells the property for a profit).
While the Mayor has high hopes for such a bill, not everybody seems to be on board with his reasoning, accusing the Mayor to reacting to the poor credit market rather than thinking about what is best for the city:
It will become a barrier to development. The market just doesn’t work that way. To react this way because of the current abnormality in the credit market, I don’t think is very prudent. -David Begelfer, Massachusetts director of the National Association of Industrial and Office Properties
Before Menino’s proposal can go into action, the Boston Redevelopment Authority would need to approve any proposal.
Source: Boston Globe
Image: Boston.com
Filed under: Boston, Funding, Government, Massachusetts
