Back Bay Station deal blasted

Written By Unknown on Sabtu, 21 Juni 2014 | 00.32

The Patrick administration has come under fire for what critics say is an inside deal that will give the owner of the John Hancock Tower exclusive rights to build a skyscraper over Back Bay Station — public property that they say should prompt an open bidding process.

"There are many commercial interests who would drool over the prospect of building in that location," said former state Inspector General Gregory W. Sullivan, now at the Pioneer Institute. "I would call that a wired contract. It would be an outrage to even consider it a possibility of not awarding that to the highest bidder. Those air rights are worth ... a lot of money."

The state Transportation Department said this week it was negotiating solely with Boston Properties to allow it to build a tower and another building over Back Bay Station and an MBTA busway in exchange for financing a $25 million rehab of the transit hub.

Boston Properties bought the Hancock Tower in 2010 for $930 million. It also acquired a parking garage adjacent to the station that it leases from MassDOT for $1.5 million a year.

Back Bay Station — and the air rights above it — are owned by the MBTA, which is required to go out to bid.

MassDOT spokeswoman Cyndi Roy said her parent agency intends to acquire the station from the T to avoid a bid and go ahead with the project, which also involves building over the parking garage.

"Under current statute, the MBTA can lease the property to MassDOT, and MassDOT is not required to bid the property. However, under normal circumstances, we would do that to ensure we get the best deal," she said.

Boston Properties, which did not return multiple messages, has 54 years left on its 99-year garage lease. The company would give MassDOT a lump sum to end that lease and get a new 99-year term, Roy said.

Roy argued the garage lease makes it "nearly impossible" for any other developer to build over the site with Boston Properties as its tenant.

Roy said MassDOT has conducted "internal estimates" on the value of the air rights but she declined to provide them.

One longtime Boston-based developer said the best way to determine the market value of the air rights is put it out to bid.

"It could be $30 million below the market value. …Not putting a major project like this, in the core of the city, out to bid is unheard of," said the developer.


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