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Old 02-23-2018, 12:41 PM   #181
odurandina
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Re: DOT Parcels 25, 26, 27, 28 Kneeland Street

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Originally Posted by bakgwailo View Post
They already put a no minimum bid on them and still no one bid...
Certainly it was a response to the absurd price. Very possibly, they didn't want to deal with the ramifications of being that low, if it could hurt already what would be a complex business relationship, or negotiating on future projects. If it isn't the Steam Plant issue, how many developers show interest in building decking? How many have you eliminated right there?

Developers prefer to deal with existing low fruit.
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Old 02-23-2018, 12:43 PM   #182
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Re: DOT Parcels 25, 26, 27, 28 Kneeland Street

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Originally Posted by odurandina View Post
Certainly it was a response to the absurd price. Very possibly, they didn't want to deal with the ramifications of being that low, if it could hurt already what would be a complex business relationship, or negotiating on future projects. If it isn't the Steam Plant issue, how many developers show interest in building decking? How many have you eliminated right there?
What absurd price?? It had no minimum bid.
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Old 02-23-2018, 12:55 PM   #183
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Re: DOT Parcels 25, 26, 27, 28 Kneeland Street

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What absurd price?? It had no minimum bid.
I think he's suggesting the optics and/or potential future ramifications of a bid that is extremely low compared to the desired asking price would be bad.
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Old 02-23-2018, 01:00 PM   #184
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Re: DOT Parcels 25, 26, 27, 28 Kneeland Street

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Originally Posted by The Globe

.... The project, marketed as SouthGate, with up to 2 million square feet of development potential and building heights to 300 feet, was supposed to be a signature part of a Baker administration effort to sell off surplus state land.

But by the time bids were due last spring, there were no takers.

State officials have subsequently floated the idea of selling the parcels without the steam plant, owned by the energy conglomerate Veolia. The facility provides heat to many office buildings in downtown Boston, and Veolia has no plans to shut it down or build a replacement on its own.

But developers apparently have not warmed up to that idea, either. So now they sit.

Development experts in Boston say a number of issues undermined the SouthGate proposal in 2016, including requirements that the existing steam plant be replaced, the Reggie Wong Memorial Park be preserved in some form, and a deck be built over one of the highways.

The biggest factor, though, may have been the state’s minimum asking price: $167 million.

“The number they came out with was way too high,” said Michael Rubin, a real estate lawyer at Posternak Blankstein & Lund.

“The upfront money and the tentacles that came along with it made it much more expensive. . . . By the time you’re done as a developer, it’s not economically viable.”

State officials eventually waived the minimum bid, but developers and investors had already been scared away by then.

Still, some local real estate experts found it surprising that the state couldn’t work out a deal, given the parcels’ prime location.
That $167M must have given them an idea of what the state desired to receive – if bidding wouldn't have pushed that number well higher.
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Old 02-23-2018, 01:05 PM   #185
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Re: DOT Parcels 25, 26, 27, 28 Kneeland Street

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That $167M must have given them an idea of what the state desired to receive – if bidding wouldn't have pushed that number well higher.
Yes, but as it goes on to say that minimum was dropped when they got no bids, and even after doing so they... got no bids.
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Old 02-23-2018, 01:27 PM   #186
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Re: DOT Parcels 25, 26, 27, 28 Kneeland Street

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Yes, but as it goes on to say that minimum was dropped when they got no bids, and even after doing so they... got no bids.
It signaled to developers what the State's "asking" price was.

For instance, if you saw a house listed for $500k asking price but you thought it was only worth $200k, would you make a bid? Probably not. Even though the price is negotiable (i.e. no minimum), your estimate is so far off it's not even worthwhile to proceed.
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Old 02-23-2018, 03:12 PM   #187
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Re: DOT Parcels 25, 26, 27, 28 Kneeland Street

Yeah the point is that there is (almost certainly) environmental contamination and the process didn't allow for adequate due dilligence.
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Old 02-23-2018, 03:30 PM   #188
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Re: DOT Parcels 25, 26, 27, 28 Kneeland Street

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Yeah the point is that there is (almost certainly) environmental contamination and the process didn't allow for adequate due dilligence.
And I believe the restriction on due diligence was imposed by Veolia as their terms to be part of this deal with the City and State. They know there is contamination there and want no part of the clean-up.
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Old 02-23-2018, 03:37 PM   #189
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Re: DOT Parcels 25, 26, 27, 28 Kneeland Street

Jeff Bezos earned $1B today.

Jeff, can we sell you these parcels and the Steam Plant?
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Old 02-24-2018, 05:52 AM   #190
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Re: DOT Parcels 25, 26, 27, 28 Kneeland Street

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I thought I have read that another parcel is basically a landfill (that was grassed over) that most likely contains a bunch of asbestos, too. Actually probably read it up thread here
That is the huge mound in the middle of Parcel 27. None of the developers were at all interested in Parcel 27 (the one surrounded by highway, not on Kneeland Street).
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Old 02-25-2018, 10:06 AM   #191
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Re: DOT Parcels 25, 26, 27, 28 Kneeland Street

In New York the other day, i noticed the 59th St Powerhouse. I remembered looking at it a few years ago and not giving it much thought. Someone mentioned the topic of 'preserving some of our smokestacks' on another thread. Cool how much this powerplant is revered, at least by some in NYC.

https://untappedcities.com/2012/04/1...-powerstation/
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Old 02-25-2018, 01:28 PM   #192
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Re: DOT Parcels 25, 26, 27, 28 Kneeland Street

^^^ NOT see smokerSTACK on Mansattan toDay pictura?
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