http://www.bostonherald.com/business/real_estate/view/2008_08_22_The_Boston_Redevelopment_Authority_weighs_time-limit_for_starting_OK_d_projects/srvc=home&position=also

GBREB was asked to comment on the uncertainty in the capital markets and in particular how it is affecting the project at the Filenes building.  That program is complicated multi-use project with office retail and residences.  Financing is a problem at the moment, as it is for some other projects around the city and country.  Below please find a link to the Boston Globe article that appeared on 8/20, and a NECN story that also ran on 8/20.

Globe

http://www.boston.com/realestate/news/articles/2008/08/20/hole_in_the_funding/

NECN

http://www.necn.com/Boston/Business/Credit-crunch-slows-construction-in-Boston/1219272799.html  

Mayor’s Course of Action

There is a story in today’s Globe that the Mayor is now considering a new regulation to be enforced through the BRA, that a developer would be required to have all their construction financing in place before a shovel can go into the ground. He is not pleased with all the “holes.” GBREB was called for our views on this, and we expressed our deep concern about the course of action he was taking.  We could not be quoted “on the record,” for this story because we appeared in a similar story on the preceding day, written by the same author.

http://www.boston.com/business/articles/2008/08/21/menino_wants_assurances_from_developers/

Needless to say that there are a host of financial, and legal issues associated with a regulation placing a stringent financing restriction like this on a development project.    I can assure you that our advocacy on this issue will be spirited. More details will follow as the situation developes.