The BRA and one of its affiliates — owed a combined $5.6 million in outstanding rent as of April, according to a recent audit — were criticized yesterday as lenient landlords that are far too "cozy" with the businesses that lease space from the agencies.
But several tenants defended the Boston Redevelopment Authority and its offshoot, the Economic Development Industrial Corp., saying their mission is to promote business growth.
Former state Inspector General Gregory W. Sullivan, a longtime BRA critic, said the agency has an obligation to Boston taxpayers to manage its assets and collect the money due.
"The BRA has a dismal record of collecting the full amount due from its licensees and grantees," said Sullivan, now the research director at the Pioneer Institute. "What we have been seeing is that the BRA is way too cozy with business owners, and they cut them slack and coddle them and do everything but what they are supposed to be doing, which is to get value for the taxpayers... It's an outrage."
But Michael Labadie, president of National Color, a printing company that is behind on its rent for space in the EDIC-controlled Boston Marine Industrial Park, said carping on unpaid rent misses the point.
"It's tough to be a manufacturing company in Boston right now," Labadie said. "I think people do get behind in their rent, and they do try to work with people. The whole program was instituted to keep manufacturing jobs in Boston."
According to the KMPG audit of the BRA released Wednesday, National Color owed the EDIC $93,118 as of April, but the BRA said yesterday the amount in back rent now stands at $24,874.
The audit also contended that as of April, Geekhouse Bike owed the EDIC $86,162, of which $62,704 was 90 days past due. The BRA said yesterday the rent that is three months past due has climbed to $86,162.
Geekhouse owner Marty Walsh said the debt applies to a separate company he owns, Headquarters Boston, that rents EDIC space on Channel Street.
"We're on the right track now ... but we got behind, and now we're trying to fix it," he said. "The BRA is working with us. They want us to stay here and do well."
The two companies are among more than a dozen the audit highlighted for owing the BRA and EDIC large amounts. Copy Cop, a print shop, as of April owed $213,859, of which $197,658 is now 90 days past due; while Pappas Enterprises, a real estate developer, owes $295,908, all of it 90 days past due. Neither company returned messages.
The auditors criticized the BRA for lacking a policy to deal with delinquent tenants and a process to evict them.
"We are trying to support businesses and don't want to force anyone out before negotiating an agreement (on back rent)," said BRA spokesman Nicholas Martin. "But at the same time it's clear there was a lack of a standardized protocol on what do to in these situations where the rent goes unpaid for so long."
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