Re: Columbus Center
Back again for more
Boston Globe ? July 4, 2008 ? by Globe Columnist Adrian Walker ?
http://www.boston.com/news/local/massachusetts/articles/2008/07/04/back_again_for_more/
Real estate developers are a persistent lot. Especially when it comes to public money.
The Columbus Center project is a proposed $800 million hotel, retail, and condominium development at the border of the Back Bay and the South End.
It happens to be stalled. That is partly because the construction business is not so hot, and the market for high-end condos could be better, too.
But there?s another reason: The Patrick Administration backed off $20 million in public subsidies that had been promised by its predecessors.
That decision did not represent some big, brave stand. A piece of the project is in Sal DiMasi's district, and the speaker was not a fan. The project?s staunchest legislative advocate was state Senator Dianne Wilkerson, who, at that moment, the Patrick people happened to be mad at. It was easy to say no.
But the developers, Arthur Winn and Roger Cassin, have resurfaced. They?re back asking for the same money that was taken away less than a year ago.
To be fair, the project has its merits. It would be built in an area that certainly has room for improvement. It would create jobs, though, as with all projects of this type, just how many jobs is disputed. And, in developer?s parlance, it would ?knit together? the South End and the Back Bay. That rationale was also used to sell Copley Place in the 1970s, and before that, the Prudential Center. Apparently, we are anxious as a city not to leave any holes between neighbors.
The developers are under considerable pressure. When their public subsidies were withdrawn, the project?s financing collapsed. The land for Columbus Center is leased from the Massachusetts Turnpike Authority - it is to be built over the Pike - and those leases require action within a given time frame. But nothing is happening, and nothing is on the horizon.
Ah, but help could be on the way. The exact amount the developers are seeking is unknown, though it is definitely north of the $20 million they would have settled for previously. You don't get to be a big developer like Winn without an extra helping of chutzpah.
I have been critical in the past of pouring tens of millions of dollars of public money into what is, essentially, a project for rich people. But the developers, of course, don't see it that way.
One person close to the project explained that even though market conditions are plainly unfavorable now, it isn?t surprising that the developers are trying to make a deal.
?Even if there were a plan in place, they wouldn?t move forward now, because the market wouldn?t justify that,? he said. ?The idea is to get some kind of workable agreement with the state, something that both sides can live with, so when the market turns around, instead of beginning the process, you can be ahead of the curve.?
The official also pointed out, correctly, that public subsidies for big-ticket developments are far from unheard of. The arguments are always the same in those instances, that the public still benefits and that, over time, the project will be worth it in jobs and tax revenue.
But what about all the other things government can do with $20 million or more?
Columbus Center is not a bad project. But it is a terrible choice for spending massive amounts of public money that could go to so many more valid uses. Boston is not exactly short of pricey condominiums or hotels. Why should the public subsidize building a few more? If the developers have a good answer to that question, they?ve kept it to themselves, and people have been asking for more than a decade.
The state should stick to its guns and say no to a big handout for Columbus Center. If Columbus Center is the godsend it is cracked up to be, it will eventually get built anyway.
Even if state officials refuse to kick in public money now, they should brace themselves for more requests in the future. These guys keep asking until someone says yes.