A proposal to for a big increase in Boston’s development fees passed a key hurdle Thursday night, moving it closer to reality.

The Boston Planning & Development Agency board voted to approve a request by outgoing Mayor Marty Walsh to increase the “linkage fee” paid by projects over 100,000 square feet to $15.39 per square foot, up from the current $10.81 per square foot. The Boston Zoning Commission must also approve the measure and Walsh must sign it for it to come into effect.

The money raised largely funds affordable housing development, but also provides some money to workforce development programs. The linkage program generated over $43 million in 2020 alone.

“We’ve had candid, constructive conversations with developers spanning more than a year, and we’re convinced that the economics of real estate development in Boston, even in this difficult period, can handle this increase,” BPDA Director Brian Golden said in a statement. “We estimate that this increase could potentially generate tens of millions of dollars in additional Linkage funding annually. That means more affordable housing and a lot more job training programs for Boston’s most vulnerable residents. We believe we are prudently ensuring that development in the City continues to address the needs of Bostonians.”

Commercial real estate industry trade group NAIOP-MA has said they believed there was room to increase linkage fees, but questioned the size of the increase Walsh proposed just weeks before he is likely to leave for Washington, D.C. to be President Joe Biden’s secretary of labor. Linkage fees were last increased in 2018 by 8 percent.

Walsh’s appointment was approved by the Senate Committee on Health, Education, Labor and Pensions on Thursday. The nomination now moves to the full Senate and will likely be taken up as soon as the body has finished with the impeachment trial of former President Donald Trump. Walsh has said he will resign as soon as he is confirmed by the Senate.

At the same meeting, the BPDA board also approved an 18-unit development in Jamaica Plain. Local developer GCB Realty sought permission to build the 4-story apartment project at 638 Centre St., along the neighborhood’s primary commercial strip. Amenities will include 34 bicycle storage spaces, an electric vehicle charging station and all-electric utilities. The building will have four ground-floor commercial spaces, rooftop solar panels and four income-restricted apartment units.

BPDA OKs Linkage Fee Hikes, JP Development

by Banker & Tradesman time to read: 2 min
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