Subsidizing luxury housing

This is kind of funny:

Mayor Thomas M. Menino’s administration has agreed to give a $7.8 million tax break to  help with the $630 million redevelopment of the former Filene’s property into a towering complex of offices, stores and luxury homes.

The tax incentives will be spread over a 13-year period and will be passed along to retail and office tenants who agree to open on the property. A spokeswoman for Menino said the money will not directly benefit the developer or the eventual owners of luxury condominiums on the property.

“In order to attract premier office and retail tenants, this level of tax certainty is needed for the first few years of the project,” said the spokeswoman Susan Elsbree.  “Many projects receive 30- and 40-year tax agreements, so this is very modest by comparison.”

Given the lower taxes for the tenants, my guess is that Millennium will be able to charge more for the space. For some reason I think this money will benefit the developer and the owners of the luxury condos. There’s always some excuse to help fund the rich and well-connected.

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