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I am an independent real estate broker, focused on the residential real estate market in downtown Boston.

Straight From The Mouth: Anti-columbus Center Activist Responds To Criticism

Posted on 08/27/2007 06:04:15 | Link | Post Comment

Columbus Center is a massive, multi-use development proposed for the corner of Clarendon Street and Columbus Ave, where the South End meets the Back Bay.

The project, if built, will rise above the Massachusetts Turnpike, and include condos, apartments, retail & restaurants, and a hotel.

Some of the opposition comes from local residents, mad that their quality of life will be adversely affected (sounds like a legitimate concern, wouldn't you say?). Others have reservations (me, included) because the developer, Winn Companies, is getting a lot of handouts (in the form of loans, mostly) from the local, state, and federal governments in order to build the project, and it seems to many that the private developer should cover its costs, without depending on money from taxpayers (i.e., me and you).

The Architectural Boston Forum has been pretty comprehensive in their coverage of the development.

On July 20th, one of the posters left this comment:

While the $10 MM subsidy is certainly open to question on grounds that Ron has articulated well (i.e., other neighborhoods and cities more deserving of scarce resources), the whole notion that Columbus Center is being further subsidized by "below market" cost of the air rights to the developer is a complete figment of Ned Flaherty's and Marty Walz's imagination, and sadly echoed in the Herald editorial this morning.

The lack of sophistication in the economic thinking in this city is sometimes amazing.

To state the obvious, for something to be "below market" implies that there is a market to compare. But there are so few air rights projects (and in such different locations) it is difficult to establish their value. And because it will clearly cost tens of millions to build the deck (a poster above suggested $100 MM, which is plausible), the value of air rights parcels is a tiny fraction of the value of parcels on solid ground of similar size.

Indeed, it isn't clear to me that there is a ton of value in these air rights parcels themselves - the costs other developers incur to acquire land is in the case of air rights largely required to build the required decks, even if the leases are free. Certainly if developers had been held to the zoning standards of the surrounding neighborhoods (i.e., permitting only modest height), it is clear that the value of this air rights lease would be zero.

[Marty] Walz and [Ned] Flaherty, who have opposed this project from the start, continue to throw around numbers that suggest that if we just snapped our fingers the decks would magically appear - and to imply that if the parcels were handed over to another developer, a lower density project would appear on the site in a jiffy.

Flaherty is a garden variety NIMBY who lives in 75 Clarendon and would just as soon the Pike be left untouched, so his intellectual dishonesty isn't hard to understand. (The most rabid opposition to CC has always been from residents of 75 Clarendon and the Pope building whose views would be compromised - they LIKE the trench). Walz, however, is an elected representative and a lawyer of some academic distinction. Is she being disingenuous, or is she really this dumb?

Marty Walz is a state representative for parts of the Back Bay, and she's been against the project, from the beginning. (In fact, she's against any project, regardless of location or size - which makes her the perfect elected official for its residents, right?)

Ned Flanders Flaherty is a resident in the condo building at 75 Clarendon Street, in the South End.

He is pretty much the face (and voice) of the anti-Columbus Center movement.

Apparently, he found the thread on the ArchBoston forum, because he responded to the criticism, today:

&8212;&8211; No NIMBYs found - Forum member InTheHood was all wrong to write on 20 July: “Flaherty is a garden variety NIMBY who lives at 75 Clarendon and would just as soon the Pike be left untouched” and “the most rabid opposition to CC has always been from residents of 75 Clarendon and the Pope building whose views would be compromised - they LIKE the trench.”

&8212;&8211; None of that is true.

&8212;&8211; I am an urban planning activist who eleven years ago co-founded the non-profit Alliance of Boston Neighborhoods, which educates citizens about urban planning issues. For 15 years, I have endorsed fully developing all air rights over I-90 (turnpike) and I-93 (Big Dig), and all public comments from residents in both abutting buildings have agreed.

&8212;&8211; There is no record of any “NIMBY” opposition to air rights development; that is merely a label used to dismiss valid criticisms of the failed aspects of this 12-year old proposal.

&8212;&8211; Project was sold, then became insolvent - After the former owners sold both the Columbus Center company and the project on 15 March 2006, the new owners wrote to state officials that their project would be insolvent without a looser lease, lower rent, and larger subsidies. (See "Is Columbus Center up in the air?" Boston Globe, 25 August 2006.)

They never paid the rent, investor funds weren’t released, bank loans weren’t disbursed, insurance policies weren’t issued, and the 7-year construction schedule never started.

&8212;&8211; What citizens still oppose - Here’s help for forum members like Atlantaden, who admits being confused about why so many people oppose Columbus Center. People across the city oppose: (1) deletion of the 2-acre public park required by the Turnpike Master Plan; (2) conversion of three promised public parks into privately owned gardens; (3) air pollution from 14 railway and roadway tunnels being captured, concentrated, and vented into the community; (4) no competitive bids; (5) no financial disclosure; and (6) hundreds of millions of dollars in 14 public subsidies to a project that was proposed at 300% of the allowable density because it was going to be subsidy-free.

&8212;&8211; In addition to multiple grants and low-interest government loans, the subsidies include federal income taxes waived for many years, state income taxes waived for 7 years, and city property taxes waived for 19 years, so that the new owners’ taxes are waived, while the public pays for the project.

&8212;&8211; Most recently, the new owners bribed a public agency $500,000 to re-draw Boston's poverty boundary so it illegally wraps around their luxury skyscraper complex, to get low-interest loans and income tax breaks from federal "anti-poverty" programs. Even the bribe itself was to be paid using public funds. [See "HUD to investigate expansion of Boston Empowerment Zone", South End News, 16 August 2007, in on-line news archives at www.SouthEndNews.com.]

&8212;&8211; Everyone wants air rights developed. But no responsible citizen wants non-competitive awards, to unaudited developers, who increase air pollution instead of filtering it, who privatize or delete required public parks, for a project where the former owners promised zero subsidies to get their approvals, and new owners now demand that the public fund their costs, their profits, and even their bribes.

More: Columbus Center - Architectural Boston Forum (page 16)

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