A Boston Redevelopment Authority (BRA) official said the proceeds from redevelopment of Winthrop Square Garage will go the city’s financial accounts, rather than remaining in the agency’s coffers.
“Whether this ends up being an outright sale or long-term lease of the property, all of the revenue will flow to the city,” BRA Director Brian Golden told a city council committee Monday.
The announcement comes as the city council prepares to vote Wednesday whether to declare the 1.1-acre parcel at 115 Federal St. as surplus property, clearing the way for the BRA to negotiate a sale or lease with a master developer. The Boston Finance Commission, a municipal watchdog agency, recently raised questions about the transparency of the garage redevelopment process.
Golden challenged the commission’s estimate that the sale could generate a $100-million windfall.
“We think it’s considerably less,” he said. “Theoretically it could be $100 (million) but in all our conversations with commercial real estate appraisers, we have heard as low as $10 million and as high as $60 to $70 (million).”
Eight developers responded this spring to the BRA’s request for ideas on how to redevelop the property, where a municipal parking garage built in 1945 has been closed since 2013 due to structural deterioration.
Thomas O’Brien of Boston-based HYM Investments, a former BRA director, proposed a 780-foot-tall residential tower that would become Boston’s second-tallest building. Seven other developers submitted large-scale proposals for housing, office space, hotels or some combination of uses.
Golden said city hall agencies would be included in the review. The next step could be inviting some of the developers to submit a more detailed request for proposals.
“We may narrow the scope. We may determine we have specific wants and needs that should be addressed in a proposal,” Golden said.
Also submitting proposals were Steve Belkin of Transnational Properties, The Fallon Co., Lincoln Property Co., Lend Lease Development in a partnership with Hudson Group, Millennium Partners, Trinity Financial and Accordia Partners.
In recent history, the BRA has preferred to lease rather than sell properties because it relies on lease revenues for its operating budget, Golden said. But it’s open to input from city agencies, he said.
Typically, surplus municipal properties are disposed of by the Department of Neighborhood Development, said Sheila Dillon, the department’s head. Those parcels have tended to be schools and small municipal buildings as opposed to a downtown development parcel.
“This being a very large parcel, we felt it was really better that the BRA do it, given their experience overseeing this type of project,” Dillon said.
Resident Shirley Kressel criticized the BRA for a history of ignoring the city council’s wishes.
“The idea (the council) will be included and there will be thoughtfulness and public participation, I think my notes on that are, `Ha-ha,’” Kressel said.
