DOT Parcels | 25-28 Kneeland Street | Chinatown

They already put a no minimum bid on them and still no one bid...

Certainly it was a response to the absurd price. Very possibly, they didn't want to deal with the ramifications of being that low, if it could hurt already what would be a complex business relationship, or negotiating on future projects. If it isn't the Steam Plant issue, how many developers show interest in building decking? How many have you eliminated right there?

Developers prefer to deal with existing low fruit.
 
Certainly it was a response to the absurd price. Very possibly, they didn't want to deal with the ramifications of being that low, if it could hurt already what would be a complex business relationship, or negotiating on future projects. If it isn't the Steam Plant issue, how many developers show interest in building decking? How many have you eliminated right there?

What absurd price?? It had no minimum bid.
 
The Globe said:
.... The project, marketed as SouthGate, with up to 2 million square feet of development potential and building heights to 300 feet, was supposed to be a signature part of a Baker administration effort to sell off surplus state land.

But by the time bids were due last spring, there were no takers.

State officials have subsequently floated the idea of selling the parcels without the steam plant, owned by the energy conglomerate Veolia. The facility provides heat to many office buildings in downtown Boston, and Veolia has no plans to shut it down or build a replacement on its own.

But developers apparently have not warmed up to that idea, either. So now they sit.

Development experts in Boston say a number of issues undermined the SouthGate proposal in 2016, including requirements that the existing steam plant be replaced, the Reggie Wong Memorial Park be preserved in some form, and a deck be built over one of the highways.

The biggest factor, though, may have been the state’s minimum asking price: $167 million.

“The number they came out with was way too high,” said Michael Rubin, a real estate lawyer at Posternak Blankstein & Lund.

“The upfront money and the tentacles that came along with it made it much more expensive. . . . By the time you’re done as a developer, it’s not economically viable.”

State officials eventually waived the minimum bid, but developers and investors had already been scared away by then.

Still, some local real estate experts found it surprising that the state couldn’t work out a deal, given the parcels’ prime location.

That $167M must have given them an idea of what the state desired to receive – if bidding wouldn't have pushed that number well higher.
 
That $167M must have given them an idea of what the state desired to receive – if bidding wouldn't have pushed that number well higher.

Yes, but as it goes on to say that minimum was dropped when they got no bids, and even after doing so they... got no bids.
 
Yes, but as it goes on to say that minimum was dropped when they got no bids, and even after doing so they... got no bids.

It signaled to developers what the State's "asking" price was.

For instance, if you saw a house listed for $500k asking price but you thought it was only worth $200k, would you make a bid? Probably not. Even though the price is negotiable (i.e. no minimum), your estimate is so far off it's not even worthwhile to proceed.
 
Yeah the point is that there is (almost certainly) environmental contamination and the process didn't allow for adequate due dilligence.
 
Yeah the point is that there is (almost certainly) environmental contamination and the process didn't allow for adequate due dilligence.

And I believe the restriction on due diligence was imposed by Veolia as their terms to be part of this deal with the City and State. They know there is contamination there and want no part of the clean-up.
 
Jeff Bezos earned $1B today.

Jeff, can we sell you these parcels and the Steam Plant?
 
I thought I have read that another parcel is basically a landfill (that was grassed over) that most likely contains a bunch of asbestos, too. Actually probably read it up thread here ;)

That is the huge mound in the middle of Parcel 27. None of the developers were at all interested in Parcel 27 (the one surrounded by highway, not on Kneeland Street).
 
A little confused at all the different posts on different forums. Could someone explain what is exactly going on here?
 
A little confused at all the different posts on different forums. Could someone explain what is exactly going on here?

I'm confused by your confusion. This thread died in late-winter of 2018. It was bumped today because the state spun off one of the parcels for sale. I split it to a new thread that's solely about that one parcel, rather than this dead proposal lumping together all three. There's an article posted in that new thread explaining what's going on with the parcel.
 
Ehh, it's not a scenic walk and is stretching the definition of "adjacent", but from the corner of S. Station Connector & Albany to the corner of Herald & Albany is about 1100' straight down the sidewalk on Albany... about the distance from the S. Station Bus entrance down Beach St. to the Chinatown Gate. It's nearby, certainly.
 
Ehh, it's not a scenic walk and is stretching the definition of "adjacent", but from the corner of S. Station Connector & Albany to the corner of Herald & Albany is about 1100' straight down the sidewalk on Albany... about the distance from the S. Station Bus entrance down Beach St. to the Chinatown Gate. It's nearby, certainly.
It's not the worst walk honestly.
 
"Adjacent to the Ink Block". 🤔Umm..."seperated by highway infrastructure...". 😂 Yeah, that highway infrastructure...it puts them in a different zip code and congressional district...
Ehh, it's not a scenic walk and is stretching the definition of "adjacent", but from the corner of S. Station Connector & Albany to the corner of Herald & Albany is about 1100' straight down the sidewalk on Albany... about the distance from the S. Station Bus entrance down Beach St. to the Chinatown Gate. It's nearby, certainly.
I was just being a hard ass. 7 min max walk time between the 2. And given the res portion of the proposals, walking distance to Whole Foods is actually pretty huge for the area.
 

Back
Top