A host of proposals aimed at thwarting climate change-related disasters is on the horizon, and developers and investors need to watch for new requirements affecting the design and management of commercial real estate properties on Boston’s waterfront.
The city, state and federal regulations – some already in effect – are aimed at preventing damage to buildings and people from coastal storm flooding caused by rising sea levels.
Government officials are rightly concerned about the potential disaster from climate change and rising sea levels. By mid-century, sea levels in Boston are predicted to be up to two feet higher than today’s levels, according to a report last year by the Boston Harbor Association. By 2100, coastal floods that are now considered a 100-year “storm surge” could occur as frequently as high tide.
While office towers and hotels have sprouted up rapidly in Boston’s Seaport District over the past decade, new environmental review standards for large projects may temper such rapid growth.
Under guidelines adopted last fall by the Boston Redevelopment Authority (BRA), all projects undergoing Article 80 review must complete and receive approval of a climate change preparedness and resiliency checklist including design and construction strategies to address climate change impacts. The new checklist is aimed at ensuring the survivability and safety of projects and their inhabitants over a project’s lifetime, and applies to all new projects subject to Article 80 review.
Climate Change Adaptation Plans
In addition to the new BRA checklist, climate change-related proposals and discussions affecting commercial real estate include:
Preliminary federal flood maps for Boston that would increase the number of businesses considered in danger of flooding to 4,000 from 250. Flood zones in the Seaport District, Financial District and East Boston would be expanded, and building owners would be forced by lenders to buy flood insurance. Building owners in the Seaport District would have to put electrical systems on roofs, instead of in basements, and make sure the lowest floors are above flood levels, according to Brian Swett, the city’s chief of environment and energy.
A $50 million investment unveiled by Gov. Deval Patrick in January for a statewide plan to address the present and future impacts of climate change in the commonwealth. Massachusetts Emergency Management Agency (MEMA) planners will advise on hazards and resiliency, and share hazard data for use in building assessments.
Recommendations from the Boston Green Ribbon Commission, a group of business, institutional and civic leaders working to develop shared strategies to improve the resilience of existing buildings in coordination with the city’s Climate Action Plan. The potential strategies resulting from its commercial real estate working group range from training building owners on tools for implementing the city’s landmark building energy reporting and disclosure ordinance, to exploring next-generation energy efficiency finance tools, to developing a behavior-based commercial energy conservation initiative.
Potential changes to the Massachusetts wetlands regulations. The Department of Environmental Protection is considering new performance standards that would address climate related impacts in land subject to coastal storm flowage. The Boston Conservation Commission reviewed similar issues last year while studying a proposed local wetlands ordinance.
Renewed interest in finalizing the Obama administration’s 2010 draft guidance on considering effects of climate change in environmental review of projects under the National Environmental Policy Act.
Legislation introduced in January by Sen. Marc Pacheco, D-Taunton, chairman of the Senate Committee on Global Warming and Climate Change, that would require the state to adopt a climate change adaption management plan.
Sharing Best Practices
NAIOP Massachusetts, the commercial real estate industry organization, has expressed concern about regulatory mandates that could drive up commercial real estate costs, resulting in uncompetitive rents and stunting development.
Officials of NAIOP Massachusetts have wisely suggested that the commonwealth closely assess best management practices adopted in other cities, particularly New York, to consider their applicability to Boston. Former New York City Mayor Michael Bloomberg last year announced a $19.5 billion plan to increase the city’s capacity to withstand future extreme weather events. The proposal calls for everything from constructing “adaptable floodwalls,” storm-surge barriers and dune systems, to revising building codes throughout the city.
Looking forward, it seems clear that climate change adaptation will be a factor in development applications. Property owners must address climate risk and adopt long-range views, rather than viewing projects as short-term investments. Financiers and insurers, along with local, state and federal agencies will demand that the impacts of climate change be considered in commercial real estate projects.
Upgrading existing properties to reduce climate change risk will enhance property value in the long run. And responsible property investment is an opportunity to improve returns by adding capital value.
Victor Baltera is a land use and environmental law attorney in Sullivan & Worcester’s Boston office. Email: vbaltera@sandw.com
