Columbus Center Watch Part 2

Banker & Tradesman
MassHousing Withdraws Funding For Columbus Center
By Thomas Grillo
Reporter

Another state agency has abandoned Columbus Center.

MassHousing, the state’s affordable housing bank, has withdrawn $20.6 million in loan commitments for the controversial project that was to be built above the Massachusetts Turnpike in Boston’s South End.

The loans, pledged in 2006, would have been used to leverage 44 affordable condominiums in the mixed-use project near the turnpike entrance by Columbus and Arlington streets. But the loans were never issued.

MassHousing’s determination comes on the heels of the Patrick administration’s withdrawal of a $10 million Massachusetts Opportunity Relocation and Expansion Jobs Capital (MORE) grant for Columbus Center. The Boston Globe reported today that the state decided against funding the project after months of delays.

“At this point, based on the state withdrawing its MORE grant, we will not be able to proceed with our loan commitment,” said Thomas Farmer, a MassHousing spokesman.

Construction was expected to begin in 2005 for the $800 million air-rights project that would be built “in the air” on a deck over the highway and railroad tracks near the Back Bay MBTA station. When completed, the proposal would have included a 35-story glass tower and four 11-story buildings housing 451 condos, a 180-room hotel and a parking garage.

Funding problems have plagued the massive development as construction costs soared.

A state official said WinnDevelopment’s managing partner, Roger Cassin, has failed to demonstrate that his company had the financing to make the project a reality. “It began to look like a house of cards,” said the official, who did not have authorization to speak for the state. “Every funder has gotten cold feet and wants out.”

Cassin said he was unaware MassHousing had pulled its funding. He told Banker & Tradesman that he plans a meeting with public and private funders to the get the project back on track.