Four companies have been named finalists to become master developer of Somerville’s Union Square, as the city prepares to redevelop 117 acres in its oldest business district to leverage the stimulus effect of the Green Line Extension.
The Abbey Group of Boston, Gerding Edlen of Portland, Ore., Chicago’s Magellan Development Group and a partnership between Newton-based National Development and Boston’s Federal Realty Investment Trust made the cut. Nine companies made presentations last month to the Union Square Citizen Advisory Committee.
Wig Zamore, chairman of the advisory committee, said the developers’ grasp of the city’s goals for the neighborhood was impressive.
“It was frankly more than I expected,” Zamore said. “For nine competent development teams to respond like this is a really good sign, and they all have good relevant experience.”
Among the big-name Boston developers not surviving the first round were The Fallon Co., which is building the 3-million-square-foot Fan Pier project in South Boston, and HYM Investment Group, developer of the 2.3-million-square-foot Government Center garage project.
The committee evaluated developers based upon such factors as financial capacity, experience with urban redevelopment projects and a track record with sustainable development.
Best-Ever Opportunity
Plans to upgrade Somerville’s oldest commercial district have been floated for decades. But planners say the Green Line Extension presents the best-ever opportunity to attract economic development and well-paying jobs, just as the Red Line Extension is widely credited with gentrifying Davis Square.
Today Union Square houses a mix of independent shops, eateries and service businesses bordered by parking lots and warehouses. The city’s 2012 revitalization plan calls for over 2.3 million square feet of commercial and residential development, and a design that maximizes open space, pedestrian access and mass transit connections.
Planning studies of Union Square focus on the dilapidated nature of many of the pre-World War II buildings and undesirability of lingering industrial parcels in an area that could potentially become the city’s true downtown. But planners acknowledge the importance of offbeat shops and artists’ collaboratives that have arrived in recent years and could be forced out by rising rents. Many of the developers said they’ll try to retain some of the square’s independent businesses.
“Those efforts get valued in the evolution of Union Square,” Zamore said. “If you look at the South Boston waterfront, without the arts and crafts district in Fort Point, there wouldn’t be much of an Innovation District there.”
In presentations, developers took pains to show their commitment to public spaces and sustainable building practices.
The Abbey Group suggested setting aside zones for public art and second-floor retail spaces for art galleries. Gerdling Edlen emphasized its experience with transit-oriented projects. Magellan Development Group said it held 400 community meetings as it builds the $4-billion Lake Shore East mixed-use development on a former rail yard near Lake Michigan. The team of National Development and Federal Realty Investment Trust suggested building a pedestrian bridge connecting Union Square to Boynton Yards and said they want to create a "statement building" making Boynton Yards a visitor destination.
Leverage Will Shift
But the balance of power will shift significantly once a master developer is selected and takes ownership of key parcels.
“Once we sign this contract, we’re definitely married and we’re committing ourselves to a long-term relationship,” said Mimi Graney, executive director of Union Square Main Streets community development organization. “Now it’s the courting stage, so everybody’s on their best behavior.”
The city plans to acquire five development parcels totaling 15 acres on Prospect Street, Somerville Avenue, Washington Street and Bow Street to turn over to the master developer, after acquiring 12 acres last year that it will convey to the MBTA for the new station.
The looming land-taking weighs on the future plans of small businesses in properties targeted for acquisition, many of which are operating under annual leases.
“Folks are worried about disinvestment, vacancies, having a negative impact with any delays. At the same time, folks are worried about (the project) moving too quickly,” Graney said. “Having clarity about timelines would help things greatly.”
The new mixed-use zoning plan for Union Square approved in 2009 gives developers flexibility to build whichever products are in market demand. What gets built and when will be a hot-button topic.
City officials have talked of their desire for office and lab space to be built first, as part of the city’s goal to generate 4,300 new jobs in Union Square and the neighboring Boynton Yards industrial area. But the market’s greatest current demand is for housing, HYM Investment Group Founder Thomas O’Brien said during his presentation.
“The question was raised, ‘Which comes first?’ How do you attract that higher-end R&D and biotech?” said Scott Hayman, a CAC member and director of real estate development at the Somerville Community Corp. “You’ve got to time that just right with regards to access and housing and amenities.”
The CAC will recommend a developer to the Somerville Redevelopment Authority, which will make the final decision. Mayor Joseph Curtatone issued a statement last week praising the qualifications of the applicants.
“I am confident that the selected developer will help us achieve that vision, and make Union Square not only a business and entertainment destination, but a model of civic innovation,” Curtatone said.
This story has been updated since was originally published.
Email: sadams@thewarrengroup.com
