The Raymond Property Co.’s bid to replace the massive Government Center Garage with a $2.2 billion mixed-use project has slowed dramatically since it became a political football in Boston’s mayoral race.
Development watchers had expected Raymond to formally file its project notification form (PNF) with the Boston Redevelopment Authority in mid-January. Raymond had been discussing the project with its North End, West End and Beacon Hill neighbors since last summer. However, shortly before the expected filing, mayoral candidate Michael Flaherty ripped the central assumption underlying the months-long public planning process – that Raymond’s project would be able to leverage city-owned parcels along New Chardon and New Sudbury streets, including a recently-renovated police station.
Since Flaherty’s comments, Raymond has been reviewing its draft PNF to insulate it from Flaherty’s criticisms and make the strongest possible case for expanding its footprint onto public land. When the PNF is filed – it’s coming soon, Raymond’s representatives say – it will essentially be two applications: one for the 3.3-million square-foot complex it has been pitching since the summer, and one that would restrict development to the garage’s current footprint.
BRA: Work With What You Have First
“It’s a little tricky,” said BRA Director John Palmieri. “We never told them to include the city property. They talked about their prospective needs, which might include contiguous space. But they first need to consider their own parcel, and whether they can accomplish their goals within it. If they can’t, we’ve told them, they ought to identify other options. But we told them that they have to first demonstrate that they’ve considered their own site as the development site, to weigh whether it can work, and to the extent they can’t accomplish it, let us know why it can’t work. They’ll likely explain that it can’t work, based on what we’ve seen so far.
“The burden rests on them,” Palmieri added.
The BRA, Palmieri said, is “not beginning with that assumption,” that the project is entitled to public land. “We’ll address those issues in scoping. First, we need to get the application.”
Raymond’s $2.2 billion proposal would replace the urban renewal-era garage with 2 million square feet of office space in 42- and 52-story towers along Congress and New Chardon streets, 1.3 million square feet of retail and housing in four smaller buildings, and a new 2,000-car garage.
Menino Looking Over His Shoulder?
It’s no surprise mayoral politics have slowed the project. Sources inside City Hall say the Menino administration has taken to weighing virtually every issue – from where to stand on large-scale developments to when to cancel school because of snow – with an eye toward how the mayor’s challengers are likely to spin them in the press. As of press time, Mayor Thomas M. Menino had not formally announced plans to run for a fifth term.
The irony is that, while Flaherty has put the city on the defensive, he may have staked out the wrong side of this political fight. Palmieri anticipates hearing concerns around the project’s height and massing. Raymond CEO Stephen Kasnet has said the development’s goal is to “expand the Financial District” past Government Center. Restricting Raymond’s project footprint to the garage site would leave the developer with less leeway to respond to objections about height and shadow along the Rose Kennedy Greenway.
Simple economics dictate that if Raymond tears down the garage, it has to replace it with something big enough to generate significant cash flow. The developer has to replace the robust revenue stream currently being supplied by the garage, for which it paid $243 million.
The Beacon Hill and West End communities have also been pushing hard for substantial community benefits. They’ve put a new public elementary school at the top of their wish list. It’s hard to conceive of a situation where Raymond would be able to make that wish – or any other large public facility – come to fruition while leaving the existing public parcels next to its garage untouched.
“It’s entirely appropriate to address development scenarios with and without public properties,” said Bob O’Brien, executive director of the Downtown North Association. “We’ll look at them both and see if it’s a convincing case.”