In some ways this is refreshing:
Rosenthal said he has also approached Governor Deval Patrick’s office of housing and economic development to ask for help with his $7.8 million shortage but has not received a reply. Greg Bialecki, Patrick’s secretary of economic development, did not respond to a request for comment Wednesday.
Rosenthal said the money would fill a gap in funding needed to satisfy his primary financial backer, Bentall Kennedy Group, a major real estate investment firm that wants a 6 percent return on the project.
But by the time the deal was finalized, the project’s construction costs had risen by $48 million. Rosenthal said that increase threw off the expected return of Bentall Kennedy, requiring tax assistance to get the firm to commit money for construction.
This is always true, but usually the actors aren’t quite so direct in saying that they want a tax break so they can get bigger profits. This isn’t much better:
Participating in the event was Jeffrey Simon, the head of real estate for the Massachusetts Department of Transportation, which owns the 4.5-acre property on which Rosenthal is seeking to build, and which stands to collect $226 million in rent from the development.
Earlier this year, the Massachusetts Department of Transportation approved revised lease terms with Rosenthal, who has committed to pay rent to the state for 99 years.
The state built the highway through the middle of neighborhoods against the wish of the neighborhoods, left it open and ugly because that was cheaper, all to benefit commuters. Now they want to make lots of money off of it which is why this project is so big and so complex. Thanks state of Massachusetts.