Stalled Urban Development Blamed on Economy, Lack of Financial Oversight by Boston Officials

 

Boston’s Downtown Crossing neighborhood development has been stalled for months. Filene’s Basement, a Boston-based chain of department stores, is missing a wall. The building is on the National Register of Historic Places.

Boston Globe Says City “cut corners repeatedly”

The Boston Globe reports that city officials overlooked the “absence of mandatory developer submissions” and city zoning codes in a rush to get redevelopment going in the Downtown Crossing neighborhood.

The $700 million commercial and residential project redevelopment has stalled and been in limbo for four months, leaving Boston with a “ bombed-out block.” One historic building is cut in half, and Filene’s Basement, a Boston-based chain of department stores, is missing a wall. The building is on the National Register of Historic Places.

The Globe said developers were allowed to demolish the city block area “before filing necessary forms with the Boston Redevelopment Authority, including a required statement of financial interests.”

When credit markets tightened and the economy went south in the fall of 2008, Boston was left with a partially demolished area in a bustling district. As the project is on private land, the developers can set their own timetable for rebuilding the razed areas.

Boston Mayor Thomas Menino is asking city officials to find ways to get the rebuilding going. Menino explained Boston doesn’t have performance guarantees requirements for developers, which is typical of U.S. cities, but clearly any city has to be wary of expediting development permits without carefully examining the financing.

The Globe’s review of public records reveals the city “cut corners repeatedly.” The developers reportedly contributed $1,550 to Menino’s mayoral campaign.

The Boston Redevelopment Authority (BRA) basically blames the economic downturn and that it could not have anticipated it. However, the BRA, with direction from the mayor, announced it would put “a stop to practices that have allowed construction to begin before projects are fully vetted.” BRA reviews of developer financing in the past has been described as “informal.”