Photo by James Sanna | Banker & Tradesman Staff
Battle lines are entrenched as Boston officials near decision time on new ground rules for downtown development.
Supporters say encouraging high-rise development in Downtown Crossing and the Financial District will ease the housing crisis, fill vacant storefronts and head off a potential fiscal cliff related to declining tax revenues from rising office vacancies.
Opponents warn of damage to historic sites, increased shadows on Boston Common and an influx of high-end luxury housing. They say the plan is being ramrodded through with only lip service paid to public comments.
“This is an inflection point for the neighborhood and the city,” Rishi Shukla, co-founder of the Downtown Boston Neighborhood Association, said at a public hearing last week. “We want to get the development right and … as the plan is currently constructed, I worry that’s not the case.”
A third school of thought argues that the rezoning is likely to have little short-term effect, as financial headwinds and new regulations continue to constrict high-rise and mid-rise projects alike.
“As a Boston resident and urbanist, I’m supportive of the plan,” Matt D’Amico, chief operating officer of Boston-based developer Cabot, Cabot & Forbes, said in an interview. “Will it have an impact on moving projects forward in the short term? My opinion is no.”
The Boston Planning & Development Agency directors are expected to vote on the PLAN: Downtown rezoning at their July meeting. That would clear the way for final approval by the Zoning Commission in August.
Balancing Growth and Preservation
Two dramatic revisions to the plan in January and May caught many observers by surprise.
The latest version, released by the Boston Planning Department in late May, includes a “Sky” zone allowing skyscrapers from Washington Street east to the Rose Fitzgerald Kennedy Greenway. Maximum building heights would be limited only by FAA airspace guidelines, which range up to 700 feet, and a state law limiting new shadows on the Common.
West of Washington Street, and in the Park Plaza area, a “Sky-Low-D” district would have maximum building heights from 100 to 300 feet. But it also would allow taller projects on minimum 1-acre sites that include a landmark that would be preserved, and would devote at least 60 percent of gross floor area to residential use.
Chief of Planning Kairos Shen said the latest version balances the need for growth and housing production against the need to preserve historic structures.
Unlike previous planning studies such as PLAN: South Boston Dorchester Ave., the Planning Department has not released a graphic showing potential buildout scenarios for the neighborhood.
A graphic compiled by the Coalition of Downtown Stakeholders spotlights 10 potential sites that could be redeveloped as skyscrapers under the latest downtown rezoning proposal. Image courtesy of Downtown Boston Neighborhood Association
But the Downtown Boston Neighborhood Association last week released its own graphic showing 10 eligible sites in which skyscrapers could be built under the current proposal.
“That’s the realm of possibility,” Shukla said in an interview. “This is not to say it’s good or bad. It’s just to say that’s what it could be. There have been zero renderings and no impact analysis that’s been shared [by the Boston Planning Department].”
The city also hasn’t studied the extent of additional infrastructure needed to accommodate the anticipated development, Shukla noted.
The potential skyscraper sites stretch from just south of City Hall to the edge of Back Bay. They include the Massachusetts Department of Transportation building in Park Plaza, and a row of properties along Washington Street in Downtown Crossing including The Druker Co.’s Corner Mall, The Abbey Group’s Lafayette City Center, and 600 Washington St., an office building owned by Newton-based Northland Investment Group.
A city of Boston graphic showing areas, outlined in yellow, where state shadow laws and Logan Airport airspace restrictions would allow tower heights to reach the full 700 feet. Of the commonly-discussed potential development sites downtown, only the Pi Alley Garage and Midwood Investments’ Bromfield Street site are covered, while other sites like the Motor Mart Garage near Bay Village are limited to shorter heights. Image courtesy of the Boston Planning Department
Properties that span at least 1 acre are eligible to seek approval as a planned development area (PDA). Under Boston’s zoning code, PDAs allow greater flexibility for large or complex projects in exchange for additional community benefits.
And the number of eligible PDA sites could climb if developers acquire neighboring sites to climb above the 1-acre threshold, the downtown residents group noted.
Councilors Split on Support
Two local commercial real estate developers spoke in support of the rezoning at last week’s hearing, while a pair of city councilors landed on opposite sides of the issue.
“Nothing is going to change unless there’s development, and that’s a fact,” Druker Company President Ron Druker said, alluding to the downtown’s rising vacancies and quality of life complaints. “We need to have responsible development and we need to have development done within the bounds of the current controls. So we’re committed to doing it well.”
Newton-based Northland Investment Corp. “wholeheartedly endorses” the plan for encouraging mixed-use growth, affordable housing and public benefits, Vice President Santo Dettore said.
District 8 Councilor Sharon Durkan said the plan will encourage investment in downtown while bolstering foot traffic and the neighborhood population.
“Boston’s downtown needs more homes, more residents and more activity. That is what creates safety and sustainability,” Durkan said.
But District 2 Councilor Ed Flynn echoed opponents’ criticism that the two updates presented this year have given residents insufficient information and time to comment. Flynn asked for another formal public comment period.
Developers See More Obstacles
Passage of the plan is no guarantee that contractors will begin raising steel on new towers transforming the skyline anytime soon.
Obtaining financing for high-rise housing projects in Boston and nationwide has grown increasingly difficult since the Federal Reserve’s interest rate increases of 2022. The list of delayed projects in Boston continues to grow, including a 231-unit condominium project at the Motor Mart Garage property and a 125-unit condo project at the Dock Square garage property.
Steve Adams
Costs of construction are expected to rise as new buildings are required to comply with Boston’s new net zero zoning. Interest rates remain high, making projects more difficult to finance. And Boston’s inclusionary development policy requires a 20 percent affordable component for multifamily developments, diminishing rental income.
“The increase in height allows for the costs per square foot and per unit to come down a little bit,” said Quinlan Locke, a project manager at Cabot, Cabot & Forbes. “The real issue is there are 19 or 20 other variables that need to be solved to make it work. Those haven’t been solved.”
