Developer: development always needs a public subsidy
Plans for a revitalized Assembly Square in Somerville are on track.
The project will bring new stores (including an IKEA) and commercial and residential to the neighborhood. As well, the state will fund and build a new Orange Line train station, partially paid for by the US federal government (thanks, Scott Brown!). The developer is also getting millions of its direct costs paid for by the state through its i-Cubed development fund (bonds to be paid back by future tax receipts).
I was quite surprised to read the following quote from a member of the development team of the Assembly Square project, as quoted in Banker & Tradesman:
“Assembly Square would not happen, but for the public financing,” said Don Briggs, head of development for Federal Realty. Assembly Square is getting approximately $90 million in public infrastructure money, between I-Cubed, stimulus funds, and a federal transportation earmark for a new Orange Line station.
“Without this money, we would not be going forward today,” Briggs said. “In the last 50 years, development has never paid for itself. The question is, what type of development is the public subsidizing? The Federal Highway Act is a significant subsidy to suburban sprawl. Only in the last decade has there been a shift in priorities. If we’re going to reinvigorate urban areas, it will require some form of public subsidy. That will take a great deal of creativity.”
!! Really? Perhaps Arthur Winn should get back in line for money to fund Columbus Center. I mean, everyone else is doing it!
