Related, Beal to Try and Save Floundering Columbus Center

The empty site is littered with trash, graffiti, and abandoned construction materials. That is a far cry from what was supposed to be here, an elegent mixed-use project featuring a 400+ foot tower that would deck parcels 16-19 over the Mass Pike and reconnect the South End and the Back Bay. As of now, the project is stalled, sinking in its own financial problems.

An overhead rendering showing the entire Columbus Center plan.

All seemed lost for the project back in March, when developers WinnCompanies and CalPERS asked for an 18 month suspension on construction so that they could get their finances together. The AngloIrish Bank pulled some $500 million in promised funds, and another $35 million in public subsidies were taken back as well.

Today, however, brings the first good news that the Columbus Center has seen in some time. Developers Related Properties (New York) and the Beal Cos. (Boston) have both been hired to come on board with the project and do a top to bottom review of the projects’ finances in an effort to see if this proposal is still feasible.

While the two companies have committed to a review of the project, they are not saying that they will invest in the project once the review is complete. However, Bruce A. Beal (chairman of the Beal Cos.) has said that there will be no attempt to revise the projects plans. Rather, the company would like to focus on bringing the overall cost (currently estimated at about $800 million) down to a more manageable amount while keeping the project essentially the same.

The Beal Cos. have significant interest in the success of this project, as they are a key player in the development of The Clarendon condo project just down the street. While that project is rising, the Columbus Center (which would significantly raise the property value of the residences at The Clarendon) remains dormant.

In addition to saving the project, The Beal Cos. has also begun cleaning up that abandoned construction site, an eyesore that has had neighbors coming after the mayor constantly. Work on the site began last week.

One area that has continually sparked concern over the project has been the amount of public subsidy involved with the project. Originally, there was supposed to be no public subsidy at all, but developers later claimed that they did indeed need that subsidy to complete the project. Beal has said that there is no point in speculating what kind of public money would be needed for the project until the review has been completed.

While the outlook for the Columbus Center project is still bleak, and the new partners on the team are being rather tight lipped, The Beal Cos. seems encouraged that they will be able to push through with the project:

We’re excited and encouraged by what we’ve seen so far. -Bruce A. Beal, chairman of the Beal Cos.

Source: Boston Globe