Up in the air: Berklee, Lesley ponder building options
Boston Business Journal - December 22, 2006
by Brian Kladko - Journal staff
As Berklee College of Music revives its interest in building over the Massachusetts Turnpike, Lesley University has quietly dropped a similar plan to expand over the MBTA's commuter rail tracks in Cambridge.
Both schools, despite their different missions, are confronting similar situations: They are urban campuses, each with about 4,000 students, and they are in desperate need of more space. The air rights over transportation corridors present an obvious relief valve.
But Lesley's decision to walk away from three years of negotiations with the Massachusetts Bay Transportation Authority presents a cautionary tale for Berklee and its dreams of building over the Pike. Such deals carry a level of financial risk and regulatory complication that have traditionally been left to ambitious developers, not nonprofits.
"Let's face it -- it's cheaper to build on dirt than it is on air," said Bill Doncaster, a Lesley spokesman.
Besides the $3 million that the MBTA was asking for air rights, expected construction costs ballooned to more than $25 million. Fortunately for Lesley, more conventional spaces became available. The Harvard-Smithsonian Center for Astrophysics moved out of the second floor of the Lesley-owned Porter Exchange building, allowing the university to consolidate its education school in one place. The university also bought a church and empty lot across the street, which will become the new home of the Art Institute of Boston, which is now located in Kenmore Square and merged with Lesley in 1999. The university has yet to fulfill its third major space need -- another dormitory.
Berklee, whose campus in the Back Bay and Fenway neighborhoods is even more congested than Lesley's, floated the notion earlier this month of a 25- to 30-story dormitory and theater at the intersection Massachusetts Avenue and Boylston Street, replacing the Berklee Performance Center and a two-story academic building -- something that probably couldn't be built until 2012. But Berklee officials said another option would be a structure over the Turnpike.
Berklee first put forward the idea in 1999, as the New York-based Millennium Partners ran into community opposition in its effort to build a 49-story hotel and entertainment complex over the Turnpike. Berklee officials hope another developer might be willing to pick up where Millennium left off, encouraged by the prospect of two other air rights developments over the turnpike.
Student housing won't generate the same kind of returns as $1,500-per-square-foot condos, but also won't generate as much traffic and serves the city's goal of removing students from the housing market, said David Hornfischer, Berklee's senior vice president of administration and finance.
Developers have met with Berklee to gauge its interest in such a project but haven't provided specifics, Hornfischer said. One sticking point is how much the Massachusetts Turnpike Authority would charge for air rights, which may make such a project too expensive.
"This could very well be an opportunity for our new governor ... to help promote a social good in the city of Boston ... by not seeking to overvalue what the Turnpike thinks the air rights are worth," Hornfischer said.
Brian Kladko can be reached at
bkladko@bizjournals.com.