Baker wants to develop, sell empty state lots
WBJ File
Gov. Charlie Baker
In early 2017, the Baker administration will seek proposals to develop 250 acres in Monson for industrial, agricultural, commercial or residential use.
The Massachusetts Department of Transportation plans to conclude lease negotiations with a "large local employer" in Quincy to turn space underneath a former state-owned bridge into employee parking and to a solicit ideas for a mixed-use development on six acres of land on West Boylston Street in Boston.
Two armories in New Bedford and Lynn are also on the selling block.
All of these projects are part of the Baker administration's "Open for Business" initiative set up to find the "highest and best use" for underutilized, and in some cases empty parcels of state-owned land to generate revenue and advance housing and economic development goals, according to the governor.
Gov. Charlie Baker recounted on Thursday how the initiative, launched in October 2015, started "as an accident" stemming from his time on the campaign trail in 2014 when people in various communities would ask about the fate of state lots he said were home to little more than "burnt out automobiles and empty beer cans."
"It's translated into about 80 projects that are currently underway in about 40 or 50 communities around the commonwealth with the potential, I think over time, to put a lot more unused, non-revenue generating, in some cases downright eyesores in neighborhoods and communities to work on behalf of the people of Massachusetts," Baker said during a briefing on the first 15 months of the program.
The administration said more than 85 projects have been started in 41 cities and towns covering over 570 acres.
From the 22 sites already sold, leased or put under agreement, Baker's team said the state will eventually generate $413 million in revenue and create 260 new jobs and 1,556 units of housing, including 94 low-income or workforce units.
Just $7.5 million will come from property sales, while the rest is tied into long-term leases. An administration official said it's "inconclusive" how much revenue could become available to deal with fiscal 2017 budget shortfalls or to support the fiscal 2018 budget.
In Beverly, for instance, Barnat Development agreed to a 99-year lease for $32.4 million to develop and manage a mixed-use project adjacent to the Beverly Depot Commuter Rail Station where it will create 70 units of housing and 3,000 square feet of new retail space on Rantoul Street.
While other administrations have periodically tried to move surplus state property from their asset inventories, Baker said he believes his is the first to systematically comb through the various parcels and create a process and structure by which it would seek the best deals to repurpose the land.
A working group representing various state agencies meets monthly with the governor to discuss progress on certain parcels and ideas for new projects, helping, participants said, keep their focus on the goals of "Open for Business."
The list of inventory remains fluid, Baker said, but his team prioritized land it thought it could act on the fastest. Some parcels, officials said, are more complicated than others. Some parcels are owned by multiple agencies, while other transactions require approval from the Legislature.
"If the question you're asking is do we think we've chewed through most of what the available opportunity is here, my answer would be no, not by a long shot," Baker said.
Not every project involves selling or leasing of land, either. Thirty-seven MBTA parking lots and structures were selected for installation of solar canopies that will eventually save the MBTA $250,000 in annual maintenance cost savings.
"Over time, this is going to become a really interesting way for us to support local communities around housing development, local communities around downtown development, local communities around dealing with sort of mixed use opportunities," Baker said.
The governor said "Open for Business" has increased the visibility of certain parcels, such as Myles Standish Business Park in Taunton, that have been eyed for redevelopment for years, but required the state to send a definitive signal that it was ready to make a deal happen.
In choosing sites and how to go about redevelopment, the administration says it tried to strike a balance between generating maximum revenue for the state and advancing goals like developing more low-income housing.
Abigail Vladeck, project director for real estate assets in the governor's office, said that generally the goal is housing inside of Route 128 and job creation outside of Route 128.
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