Re: Waterside Place
Justin7 said:
Ask and you shall receive!!
Waterfront project is scaled back
Facing weak economy, developer plans more apartments, fewer stores
By Casey Ross, Globe Staff | August 28, 2009
Developer John E. Drew, facing stiff economic headwinds, is scaling back plans for a massive urban shopping center on the South Boston Waterfront and will shift to building more residences, which are seen as easier to finance.
Drew said yesterday that the revisions will help him proceed with construction of $600 million Waterside Place, which was originally planned to include a 640,000-square-foot retail center, a 19-story condominium building, and a 300-room hotel. He said plans for the retail building are still being discussed, but will probably include mostly apartments, with a smaller number of stores.
?The large retail mall concept is not workable in this environment,?? said Drew, president of Drew Co. ?And it?s not just a question of the moment, but it?s something that?s going to stay this way for a while. We?ve got to think about the development in a different way.??
His project, on 10.3 acres known as the core block, between Summer and Congress streets, received city approval in June 2007 but has been delayed by a legal dispute between financial partners over cost increases and the sharp downturn in the economy.
The legal issues were resolved last fall, when Drew and Vornado Realty Trust bought out the interests of Maxx Private Investments, an entity that includes Kraft Group LLC, led by New England Patriots owner Robert Kraft and Edward A. Fish.
But the broader economic woes have persisted, and large retailers, especially, are loath to open new stores during a period of shaky consumer demand.
Drew has been working to revise the plan with officials at the Massachusetts Port Authority, which designated him to redevelop the property in 2004.
The land stretches over the Massachusetts Turnpike and MBTA property; most of it is owned by Massport.
A top official with the authority said he supports the shift toward more residences because of the difficulty of opening vibrant new retail stores during the recession.
?Trying to build something that?s not consistent with the current to mid-term economic environment is a fruitless exercise,?? said Lowell Richards, chief development officer for Massport. ?I don?t think the project will be dramatically different, but there will be a significant change in emphasis.??
Drew said he still intends to build some stores, including a supermarket and a pharmacy, which are needed to serve residents in the growing neighborhood. But he said the stores will be spread throughout the development, instead of being concentrated in a three-story shopping center.
Drew also said he will probably reduce the size of the 19-story condominium building and convert the units to apartments.
A 300-room hotel and a large parking garage are still included in the development plan.
Any changes would need to be approved by the Boston Redevelopment Authority. The authority?s director, John Palmieri, said he has not had any discussions with Drew about the revisions.
?This is a substantial project that generally met with a lot of support in its current form,?? Palmieri said. ?So now for Mr. Drew to consider a significant change requires that he present to us an amended proposal. We?ll need to get the community to weigh in.??
Drew said he is still working on the proposal and intends to present a revised version in the fall.
His neighbors on the South Boston Waterfront said they are eager to see development move forward, but only if it fits with larger plans for the area.
?We?re obviously interested in what happens on the site,?? said James Rooney, executive director of the Massachusetts Convention Center Authority, whose largest facility is across the street from Drew?s project site.
?The development of the waterfront is a key component for us,?? he said. ?We need more hotels, retail stores, and restaurants. It?s OK that it?s not happening as quickly as we?d like, but those things are going to be critical to our success in the long term.??
Casey Ross can be reached at
cross@globe.com.