from today's globe..
Chiofaro thinks big as Greenway project would rival the Pru
By Steve Bailey and Chris Reidy, Globe Staff | May 26, 2006
Don Chiofaro, the man who built giant International Place, does not think small. And he is not thinking small as he eyes an ambitious new development on the Rose Fitzgerald Kennedy Greenway
According to Chiofaro and City Hall officials briefed on his plans, the huge mixed-use project would total about 1.2 million square feet -- the equivalent of the Prudential Tower itself. It would include a 175-room hotel, 125 condos, 800,000 square feet of office space, and significant retail space. The early concept is for two buildings, including a 475-foot tower -- about 75 feet higher than the neighboring Harbor Towers. Ted Oatis, Chiofaro's partner, said the project would open a pedestrian corridor, creating a view to the harbor.
Projected cost: $600 million to $800 million.
City Hall officials, who met with Chiofaro for the first time yesterday, called the project ``very preliminary." But they and Chiofaro confirmed that the developer has secured an option to buy the parking garage just in front of the New England Aquarium, and plans to demolish the garage and replace it with 1,400 underground spaces. One official estimated it would take two to three years to get the project through the permitting process. The site is about 1.3 acres in all, bounded by Milk Street, East India Row, and Atlantic Avenue.
``This is the most exciting piece of real estate in the city of Boston," Chiofaro said yesterday after meeting with the Boston Redevelopment Authority.
The project, reported in The Boston Globe yesterday, would mark a remarkable comeback for Chiofaro. Two years ago, Chiofaro was in danger of losing control of International Place to New York-based Tishman Speyer Properties. In response, Chiofaro took International Place into bankruptcy, and brought in Prudential Real Estate Investors to refinance the project. Tishman Speyer walked away with about $40 million in profit, Chiofaro's ownership was reduced, but he retained his position in International Place.
Prudential has had very preliminary talks with Chiofaro about participating in the new project, but is far from a deal, the firm said. ``Don Chiofaro has been a great partner in the International Place deal," said spokeswoman Theresa Miller. ``As with all our partners, we are eager to explore an opportunity that has potential for benefiting our investors. This project could be one of them."
Since he completed the second tower of International Place in 1993, Chiofaro has tried to do other large projects in the city and failed. Chiofaro won and then lost the development rights to build what later became the 36-story headquarters for State Street Corp. on the edge of Chinatown. He later sued the minority investors who were his partner. He also had and lost the rights to develop the South Boston Waterfront site that became Manulife Financial's US headquarters.
Chiofaro is known to have a cool relationship with Mayor Thomas M. Menino, whose support is critical for any developer. Yesterday Menino said housing affordability and parking are of particular concern to him.
``Whatever goes there has to be sensitive to the people of Harbor Towers and the aquarium. Both have gone through a lot in the last 12 years," Menino said, referring to the Big Dig reconstruction. The BRA declined to comment.
Early reaction to the Chiofaro proposal was cautious. Until more details are public, the Rose Fitzgerald Kennedy Greenway Conservancy plans to withhold comment, said Nancy Brennan , the conservancy's executive director. The conservancy is a private nonprofit gradually assuming responsibility for maintaining the new parks.
In general, the conservancy is inclined to look favorably upon development that would bring new life to neighborhoods along the Greenway, she said. ``Residences and offices that bring more families and people who will use the Greenway's parks and amenities would be a great thing for the city and would strengthen the neighborhood," Brennan said.
Joseph T. Baerlein , co chairman of the Harbor Towers Condominium Trust , noted that Harbor Towers residents take up about 400 parking spaces in the garage that Chiofaro wants to redevelop under leases that won't expire until 2018 and 2019. The heating and cooling systems for Harbor Towers also are located in the garage, he said.
Baerlein expects that Chiofaro's project would include underground parking that would replace what would be lost from the garage. Concerns about Harbor Towers parking and its heating and cooling systems are not ``obstacles that can't be overcome," he said. ``It's prudent and wise to have an open mind about this" proposal, said Baerlein. Of the garage, he said, ``We wouldn't exactly be losing a crown jewel here."
Steve Bailey can be reached at
bailey@globe.com; Chris Reidy at
reidy@globe.com.
