Millennium Tower (Filene's) | 426 Washington Street | Downtown

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Re: Filene's

ablarc said:
^ Reductio ad absurdum.



Ron's point is valid.
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I think you actually mean straw man argument, but I get your point.

My point is that ground level retail is not the only factor. To focus only on that for the sake of quickly returning shoppers to DTX is shortsighted (but proves my long-standing opinion that Boston can't get over that 20th century idea of DTX only as a shopping zone).
 
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Of course it's not the only factor, and I obviously would not want a one-story box. But I walk through this area several times a week, and it's quite obvious that damage to the commercial health of the district is radiating out from this site.
 
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Why doesn't Hynes just sell a stake in either Filenes or Seaport to get this project built. Why do the Taxpayers have to flip this bill?
 
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Because equity typically demands a greater return than debt, so the only way to up the equity would be to dilute the returns, and I'm not sure how other investors would feel about that. I get the sense that Hynes is already sold his personal stake for less than market value to make this work. At some point you have to find a plug, and the government offers the cheapest money. If you have a $50M or so, and you don't mind seeing 1%-2% interest with deferred payments, give Hynes a call.
 
Re: Filene's

Barack Obama plan may aid Columbus Center, Filene?s projects
Towers eye fed funds
By Thomas Grillo
Friday, January 16, 2009 - Updated 7h ago


Several high-profile downtown developments, including Columbus Center and the Filene?s redevelopment at One Franklin, could be in line for federal stimulus money.

Gov. Deval Patrick has given commercial real estate trade groups until today to suggest shovel-ready projects that could benefit from federal dollars to pay for infrastructure such as roads and sidewalks.

?All the big projects are looking into possible federal support,? said David Begelfer, chief executive officer of NAIOP Massachusetts, a commercial real estate industry trade group.

Days after President-elect Barack Obama floated the possibility of a major economic-stimulus proposal - now an $875 billion plan in the House - to jump-start construction projects nationwide, the Patrick administration asked for suggestions from the development community on where to spend the cash.

So far, the Executive Office of Housing & Economic Development has received 100 suggestions from developers and thousands from municipalities.

?We?re seeking projects that can get a shovel in the ground in six months,? said Gregory Bialecki, the state?s undersecretary for business development. ?They must demonstrate infrastructure investments that would trigger private economic development.?

The projects that could be eligible for a federal bailout include the Filene?s redevelopment at One Franklin, which stalled last spring when the credit markets tightened. While the money could not be spent on construction of the new 32-story One Franklin tower in Downtown Crossing, it could be used for any new roads built around the development.

Columbus Center, the controversial development in the Back Bay that has faced opposition from House Speaker Salvatore DiMasi, could use the cash to build the deck over the Massachusetts Turnpike, the site of the mixed-use project.

?Columbus Center has lots of infrastructure needs and would definitely be on the list,? said Begelfer. ?The speaker would have lots of difficulty saying no to federal money for that project.?

But Bialecki said the state will select projects with community support. ?Controversial projects may get approved, but an important part of the selection is the level of support in the community where it?s located,? he said.
tgrillo@bostonherald.com
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http://www.bostonherald.com/busines...ts:_Towers_eye_fed_funds/srvc=home&position=5


Looks to me the taxpayers bailout these two projects. At least it's for something tangible instead of bailing out the banks.

BRA should be fired for letting both these projects start without knowing if they had the entire funding.
 
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Re: Filene's

^ Seriously! Where's Palmeiri been since he was brought on? All we hear about is Shen and failed projects. Where's "The Man Who Saved Providence"?
 
Re: Filene's

Don't know exactly where to put this....

Filene's Basement to close 11 stores
January 20, 2009 05:35 PM

Filene's Basement, the landmark merchant that claims to have invented the bargain, today said it is planning to close nearly one-third of its 36 stores, including one in Framingham.

The chain, famed for its annual "Running of the Brides" gown sale, has been unable to negotiate rent reductions at 11 locations and plans to shutter those stores by the end of February, according to Julie Davis, general counsel of Retail Ventures Inc., the private parent company that owns Filene's Basement.

In addition to the Framingham location, stores to be closed include three in Maryland, two in Illinois, two in Pennsylvania, and one each in New Jersey, New York, and Virginia.

"In this economy, we are approaching landlords to effect rent reductions or other economic solutions to help us support these stores," Davis said. "We're still hoping there are some landlord negotiations that might help us keep stores."

Davis declined to comment on whether the store closings would mean cuts at the headquarters of Filene's Basement, which is based in Burlington.

http://www.boston.com/business/ticker/2009/01/filenes_basemen_5.html
 
Re: Filene's

^^^ I think my set of plans for the DTX renovation is about to become a collector's item.
 
Re: Filene's

This doesn't mention Filene's by name, but reading between the lines...

Banker & Tradesman - February 2, 2009
Hub?s $40 Million Development Fund To Target ?Large-Scale? Projects
By Paul McMorrow

Banker & Tradesman Staff Writer

Yesterday


City of Boston officials have finally divulged some details as to how they will implement the $40 million development gap financing program announced in December by Mayor Thomas Menino.

The $40 million loan program, which the city will administer on behalf of the U.S. Department of Housing and Urban Development (HUD), represents 20 percent of the $200 million in available cash HUD has on hand until the start of the 2010 fiscal year, said Evelyn Friedman, director of Boston's Department of Neighborhood Development (DND).

Friedman told the Boston City Council today that DND expects to begin distributing the loans in May. Priority will be given to projects topping $10 million and 20,000 square feet. The city expects to secure HUD approval of the loan program by the end of February, allowing it to solicit applications shortly thereafter

The city will set aside $4 million for small-scale neighborhood commercial projects between 5,000 and 20,000 square feet, and valued under $500,000.

"We're targeting large-scale commercial developments that are ready to start construction, but for their financing," Friedman said. "You have to be ready to go."

In his December announcement, Menino painted the gap financing program as a way to "put people to work, move projects forward, and generate a return on our investment." However, the loans will not represent a significant source of financing for stalled projects. Friedman told the City Council that DND expects the loans to fill the gap in projects that have already secured financing for 60 percent of project costs. The city will require projects to have a minimum of 30 percent equity financing, she said.

Individual loans will be capped at $15 million, though the program will target $10 million disbursements.

Keith Hunt, an aide to Friedman, said the city will price the loans at cost, plus at least one percent. The city expects to receive an additional "success" fee when the projects that use the loans are sold or refinanced.

The loans will be secured by junior collateral positions. If borrowers default, Friedman said, HUD would deduct the default amount from the city's annual Community Development Block Grant (CDBG) allotment. That's why the city is requiring significant equity commitments, and a 1.5 debt service coverage ratio on projects' senior mortgages.

"We need to be very cautious about underwriting," Friedman said.

The City Council is expected to sign off on the program Wednesday.
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Also of note: it looks like Banker & Tradesman is putting some of their content online for free. :)
 
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Re: Filene's

Good move on the city's part, and I agree with the large scale/ready to go projects. As much as I'd rather see more small scale development, it's the big ones who will bring lots of money back in. And make a bigger aesthetic difference. I'm seeing Filene's for sure. Is Dainty Dot ready to go/still on the table/already done? If the City uses caution, this could easily jumpstart some development in the city, and with luck, keep people working until our economy begins to heal.
 
Re: Filene's

Dainty Dot (120 Kingston) is still on the design table anyways. SD docs went out 2 weeks ago. So I'm going to say there is still a good 8-12 months of design time left.

I'm not privy at this time to any construction scheduling. But, definitely not ready to go besides possibly any infrastructure upgrades in Kingston street.
 
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If there's urgency, if projects are shovel-ready, WHY WAIT UNTIL MAY ?
 
Re: Filene's

^^ I assume there has to be some sort of vetting process.
I'm not sure the city should start cutting ten million dollar checks just because a developer says it's shovel ready.
Using Filenes as an example. We know they changed the design around a bit. Is all the reengineering work complete? Is all the other financing still in place?
It would be embarrassing if they used the ten million dollars to, say, pour a new foundation and then, 'Oops, we're out of money again, sorry'. Or if they got the check in
February and sat on it until May while the new design was fleshed out.

That's the only reason I can think of.

Well, that and lawyers. (Sorry Toby).
 
Re: Filene's

Woof!

(Construction lawyers are running out of work, so they won't be slowing anything down!)
 
Re: Filene's

Take with a grain of salt:

Suffolk was ready to start construction again in March with the residential portion removed. Now theyre aiming for 2010 restart.
 
Re: Filene's

Why the new delay? Won't this cause a lawsuit by Filene's Basement, since they are contractually obligated to allow them to reoccupy the store this year?
 
Re: Filene's

Ron Newman said:
Why the new delay? Won't this cause a lawsuit by Filene's Basement, since they are contractually obligated to allow them to reoccupy the store this year?
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Financing of course. Mind you, Suffolk has nothing to do with that. If it were up to them theyd be on site right now.
 
Re: Filene's

I hope there is not a re-design of the building. i hope its merely switching residences for open office floors, or whatever they choose to do with it. I always thought this building would be one of, if not the most attractive tower in boston.
 
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