It has been more than six years in the making, but after extensive planning, lobbying and marketing, Telecom City finally appears ready to move into reality. Officials from Everett, Malden and Medford – the three suburban Boston communities that straddle the 200-acre parcel – are expected to cement their agreement this week with Preotle, Lane & Assoc., the New York firm that will serve as master developer for the ambitious project.
“It is a major milestone,” Malden Redevelopment Authority spokeswoman Deborah A. Burke acknowledged last week. “It’s pretty much been a publicly driven concept up until now, so to see the private [sector] step in and make a real commitment is obviously encouraging.”
Preotle, Lane was initially selected last November from a field of seven candidates and has been working ever since to refine and finalize its design. With a project that will take at least 10 years to complete, developer John J. Preotle Jr. said certain elements could change as market demand and the scope of the venture evolves, but he insisted that the original idea of a telecommunications mecca still forms the basis of the unique partnership.
“It’s not going to be an office park,” Preotle said. “It’s more or less a technology-focused project, and the dream is, if it works, [high-tech] companies would want to be here because there’s other companies like them here.”
Initially conceived in 1994 as a way to spark economic activity on land abutting the Malden River, Telecom City was in many ways ahead of its time. But the complexity of getting three traditional rivals to band together to create a workable development vehicle has allowed other high-tech real estate initiatives to move ahead of the tri-city effort. GTE Internetworking is building a 750,000-square-foot complex in Woburn, for example, while Cabot, Cabot & Forbes is pushing a 400,000-square-foot telecommunications switching center in Allston. Just a few miles from Telecom City, Cathartes Investments has already filled up most of one former warehouse in Somerville with telecommunications firms and is about to begin construction on a pair of new buildings that will offer upwards of 400,000 square feet of space.
While admitting it is unclear just how deep the demand for such users is, Preotle nonetheless said he believes Telecom City will attract tenants. He noted that much of the current activity has centered around so-called switch hotels, properties that house switching equipment for Internet access. Telecom City, meanwhile, will feature a blend of headquarter space, R&D facilities and manufacturing operations, all areas that are expected to grow during the coming decade. Colleges and universities, Internet startups, software companies and cable television firms are all potential candidates, Preotle said.
“The park will have a telecommunications focus, but the definition of that, and the companies you would consider to be in the business, are different than they would have been five years ago,” he noted. “It’s much broader today.”
Preotle, Lane’s agreement with the Mystic Valley Development Commission – a tribunal formed by the three cities to oversee Telecom City – will allow the developer to prepare construction of the project’s first building, an office structure of about 110,000 square feet that will be built along Commercial Street in Medford. Preotle said he hopes to have that building underway by the end of the year, although much of that will depend on the success of eminent domain proceedings with the current landowners.
Preotle said he will develop the first building on a speculative basis if necessary, but broker Philip G. Giunta of CB Richard Ellis/Whittier Partners said he is confident that the initial building and subsequent facilities will attract interest. He and CB/Whittier broker George Nugent have nearly leased up all of a 330,000-square-foot office building that abuts the Telecom City property, and Giunta said he believes the quick lease-up of that building reflects the interest in the area among tenants.
“The project has the potential to be a major home run for both the cities and the development team,” said Giunta. “We really feel this is a very vibrant marketplace, and I think companies are clearly going to be attracted to Telecom City.”
Obstacles Remain
Although rents continue to rise throughout the region, and Telecom City’s projections are no different, Giunta said he believes the facility will offer attractive rate differentials from those being found in both Cambridge and Boston. Combined with generous parking ratios, a campus-like environment and proximity to several major public transportation options, Giunta predicted that Telecom City will become a viable option for companies squeezed out of the core commercial real estate market.
“I think the demand is going to be overwhelming,” he said.
Despite that optimism, all parties involved seem to understand that much work remains. Although Burke said she believes the land acquisition process will move smoothly, it is still an extensive effort involving dozens of property owners. Even with the powers of eminent domain, communities such as Chelsea and Lowell have struggled to get similar ventures moving ahead due to squabbles over land values and other issues. Meanwhile, Preotle said he will wait until the state’s highway department moves forward with a commitment to redo Commercial Street before launching the first building. That is one of several infrastructure improvements that must be completed to meet the public commitment to the project.
The commission has been working diligently to meet those agreements, Burke said, and has already won several million dollars to finance improved roads, a new bridge over the Malden River and money for environmental remediation. Much of the property to be taken over is industrial in nature, and Burke said the commission hopes to win additional funds to facilitate that clean-up.
