Governor Patrick "Does the Right Thing!"

Patrick wants state's share to spur private development
By Casey Ross
Globe Staff / January 16, 2009

Governor Deval Patrick is planning to use money from an expected federal stimulus package to jump-start private real estate development across the state, targeting improvements such as new roads and highway connections that the projects need to move forward.

The federal funds would help foot the bill for highway ramps, parking garages, or rail stations that are typically paid for by builders, who are already struggling for financing during the current downturn.

The Patrick administration said it would limit distribution of the money to projects that could begin within six months, in keeping with President-elect Barack Obama's insistence that any federal stimulus should produce im mediate results.

Massachusetts officials argue that directing the federal money to these private developments will have a multiplier effect -creating construction jobs on the front end and creating office, retail, and other jobs once the projects are finished.

"What we're asking ourselves is, 'Where can public investment create more long-term job growth and housing growth in Massachusetts?' " said Greg Bialecki, Patrick's undersecretary of business development. "We want to structure the plan so there are a lot of different opportunities for people to be put to work."

Patrick's administration has previously identified $4.7 billion in spending on projects - which range from upgrades to public buildings to renewable energy projects - it hopes to finance with the state's portion of an $825 billion stimulus package congressional Democrats officially introduced yesterday. Bialecki was unable to provide an estimate of how much the administration would direct to improvements at private developments, but said it would be a significant amount. Governor's aides also would not identify which projects would receive the help.

Among developments already angling for a slice are the $810 million Columbus Center complex in Boston and Westwood Station, a $1.5 billion retail and housing complex at the intersection of Interstate 95 and the Amtrak rail line.

"Like everyone else in the development community, we are exploring all options to move our project forward in this economy," said Pam McDermott, a spokeswoman for the team of McFarlane Partners and WinnCompanies, which is developing Columbus Center. "Columbus Center has its permits and is shovel-ready, and also meets the other federal criteria, including the creation of 2,700 construction jobs, and creates enormous public infrastructure."

Such funding, though, would be controversial, as some of the large developments are not universally popular in their communities. Opponents have said previous requests by Columbus Center's developers for public subsidies were inappropriate for what is largely an upscale development. The project includes a 35-story condominium tower, a hotel, and stores built over the Massachusetts Turnpike that would join the South End and Back Bay neighborhoods. It needs a $50 million deck built over the turnpike.
"Taxpayer subsidies for Columbus Center are wholly inappropriate, whether the source of the money is the city, the state, or the federal government," said state Representative Marty Walz, a Democrat from the Back Bay who vowed to fight any federal funding for the project.

The Westwood Station development, on a large site opposite the Route 128 train station, needs $86 million worth of road and utility upgrades. Its builder said it would create 3,700 construction jobs and as many as 9,000 when it is completed in five years or so.

"We think we can make a good case that this is a sound investment that will have collateral benefits by generating jobs" and bringing business to the surrounding area, said Jay Doherty, president of developer Cabot, Cabot & Forbes. He did not indicate how much money the project is seeking.

The neighboring town of Canton lost a lawsuit over traffic concerns last month, and it continues to squabble with Cabot on mitigation matters.

Meanwhile, Somerville officials are seeking stimulus money for some of the $56 million in improvements, such as to roads and sewers, for Assembly on the Mystic, a proposed 66-acre development with 1.75 million square feet of office space, 850,000 square feet of retail stores, and 2,100 residential units. The city said the project would create 8,000 construction jobs and 4,000 permanent jobs.

Other projects vying for federal funds are Northwest Park, a 300-acre development in Burlington, and the SouthField development at the former Naval Air Station South Weymouth.

Patrick administration officials have not indicated which projects they favor. Within the last few weeks, Patrick's office of Housing and Economic Development has established seven task forces to identify possible recipients.

Bialecki said that he and other officials are still getting input from developers and community groups, and that they will sort through the projects in the next few weeks. The goal is to have a detailed list of projects ready to proceed if and when Congress authorizes the stimulus package. Bialecki said the projects could be as varied as community theaters, rooftop solar panels, and new highway interchanges.

The stimulus bill introduced in the US House yesterday would give states $90 billion for upgrades to public roads, bridges, and other projects, $87 billion for Medicaid costs, and $79 billion for public schools.

One local member of Congress warned the Patrick administration to select only those projects that can generate economic growth immediately.

"If there are states that are not ready to use the money, then it will be sent to other states," said Congressman Michael Capuano, a Democrat from Somerville. "The number one thing is to create jobs as quickly as possible."

Casey Ross can be reached at cross@globe.com.

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