boston2024 midtown development plan

SITE FOR TEMPOR ARY OLYMPIC STADIUM 2024

MIDTOWN DE VELOPMENT PL AN

THE OLYMPIC STADIUM

iMIDTOWN DE VELOPMENT PL AN JUNE 2015

1. Executive Summary ................................................. 1

2. Vision for a Neighborhood .................................. 5

3. Vision for an Olympic Stadium.........................37

4. Midtown Today ........................................................45

5. Land Assembly ...................................................... 49

6. Infrastructure ......................................................... 53

7. Financial Plan .......................................................... 63

8. Regulatory Issues ..................................................79

9. Required Stakeholder Engagement .............. 81

10. Schedule.................................................................. 83

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1. Executive Summary

1MIDTOWN DE VELOPMENT PL AN JUNE 2015

Boston 2024 has proposed constructing a temporary Olympic Stadium at a site situated between South Boston and the South End at the southern end of Fort Point Channel. We have referred to the area as Midtown, which is not an official designation, but simply a way to identify a collection of properties that has no distinct identity today, although it has enormous potential.

Given its location at the heart of the City, Midtown is a compelling site for the Stadium. It would provide the centerpiece for the Games and the starting point of a pedestrian Olympic Boulevard that would run to South Station. Just as important, siting the Stadium in Midtown would serve as a catalyst to create a vibrant new neighborhood that will benefit the city and residents of Boston long after the Games have ended.

Today, Midtown is an underdeveloped and little known area of the city home to the New Boston Food Market cooperative and a collection

of facilities used for, among other things, maintaining city vehicles, city salt sheds, washing of Amtrak trains, and the Boston Tow Lot. Active Massachusetts Bay Transportation Authority (MBTA) tracks also run through the area. In the future, with the Olympic and Paralympic Games serving as the catalyst, the area can be transformed into an urban center that achieves the ambitions the city has for a transit village.

Midtown can be the next great neighborhood in Boston. It will connect two vibrant, historic neighborhoods well-served by the MBTA Red Line. It can replace underutilized properties with the value created by mixed-use blocks and supplant non-tax-generating property with highly productive new tax generation. The Olympic and Paralympic Games are not the end, but a means to achieve smart infill development in the heart of the City of Boston.

A development vision that we are calling the Midtown Legacy development plan has been crafted for the site that includes an assemblage of the land, a competitive solicitation for developers to buy or lease the property, construction of the platform and infrastructure by a designated master developer, and several decades of development above the platform. While the Midtown Legacy plan is very viable and desirable with or without the Olympics, it

1. EXECUTIVE SUMMARY

2can provide an excellent home for the temporary Stadium during the Games.

The development potential of Midtown will be unlocked by the construction of a platform or plaza supporting development and open space above and parking and relocated city and MBTA facilities below, as well as allowing uninterrupted use of the train tracks.

The investment in the land, platform, and development will be made by private developers, including providing the platform in time for the Games at no cost to the public. The temporary Stadium and related Olympic facilities will be paid for with Olympic funding; again, no public funds will be involved. This value creation is made possible by visionary planning, land assemblage, rezoning by the City, and a location that promises to maintain strong annual absorption. The result is a temporary home for the Games and a dynamic new neighborhood of Boston resulting from private investment.

The mixed-use Midtown Legacy development, which will span 18 years, represents the engine for new jobs construction jobs and permanent jobs with new hotels and retail, and new office spaces providing expansion space for Boston businesses and the ever-evolving Boston innovation economy.

The benefits to the City of Boston are substantial:

500750 construction jobs annually at Midtown over 18 years

+/- 1000 permanent jobs for hotel workers, building maintenance, and retail employees

** The specific tax phase-in in the proposal is for illustrative purposes. It has not been agreed to by the City of Boston and would be subject to negotiation between the city and the successful developer after a competitive process. Future tax revenues are based on assumed property values and current estimated tax rates

Increased tax revenues to the City of Boston from approximately $857,000 annual revenue today to $7.3 million annual in 2030, $26.9 million annual in 2040, $64.0 million annual in 2050 and $362.0 million annual in 2080 when all tax phase-ins have expired**

4,000 new units of mixed-income housing in the heart of the city, including 520 affordable units

15 acres of permanent new open space (8 times Post Office Square) and a vital link in the open space network of the city

Accommodation for 9,000 office/science and technology workers

New resilient and sustainable MBTA bus maintenance facilities on site and City of Boston facilities.

New community and cultural spaces

A catalytic effect on the development of the Dorchester Avenue corridor

Improved connectivity from South Boston to the South End to the Back Bay.

This study is organized as follows:

The Midtown Legacy vision for this new neighborhood is followed by the vision for a temporary Olympic Stadium. The Olympics and Paralympics are the catalyst for change.

Following the vision are descriptions of current uses and land control, existing and planned infrastructure, and most importantly, a financial plan to achieve the vision.

Lastly, are sections on regulatory issues to be explored and resolved, an outline of stakeholders engagement to date, and a preliminary schedule for planning, community engagement, approvals, selection of a development partner, and finally, development itself.


The Boston 2024 team believes the proposed Midtown Legacy site represents one of the most interesting real estate investment opportunities in the United States. It is a unique opportunity to develop a large master plan environment with a high-quality sense of place that is fully zoned with supporting infrastructure in one of the most dynamic urban environments in the country. It is anticipated that some of the largest national and international development and infrastructure firms, in association with financial institutions and investors with ample financial resources, will be highly interested in the Midtown Legacy project.

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2. Vision for a Neighborhood


The Midtown neighborhood will be a vibrant neighborhood with diverse housing options, a new generation of workplaces, active streetscape with ground floor shops and restaurants as well as locations for anchor stores, cinemas, and grocery and entertainment venues.

2. VISION FOR A NEIGHBORHOOD

6TODAY

8THE FUTURE 2040

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H OT EL R ES I D EN T I A L O FFI CE T R A N S I T

S O U T H E N D

MIDTOWN LEGACY

LEGACY PARK

DORCHESTER AVENUE(O LY M P I C B O U L E VA R D)

S O U T H S TAT I O N

A N D R E W S TAT I O N

B R OA DWAY S TAT I O N


S E A P O R T

S O U T H B O S T O N

Midtown will be the site for a mixed-use, transit-oriented neighborhood of 18 blocks and 8 million square feet connecting two historic Boston neighborhoods, South Boston and the South End. The Midtown Legacy plan calls for commercial development over multiple phases with an anticipated build-out schedule of 18 years.

In addition, there are 15 acres of permanent new park space and 28 acres of temporary park space.

The Midtown neighborhood will be a vibrant neighborhood with diverse housing options, a new generation of workplaces, active streetscape with ground-floor shops and restaurants as well as locations for anchor stores, cinemas, and grocery and entertainment venues. The Games can be the catalyst for enhanced transit by means of an expanded MBTA Broadway platform on the Red Line and a new commuter rail station on the Fairmount Line, funded by the successful developer. Midtown offers multi-modal connectivity: MBTA transit on the Red Line; highway on I-93 and I-90; arterial roadway on West 4th Street to the Back Bay, A Street to the Seaport, Melnea Cass Boulevard to Longwood, the South End and Roxbury, and Dorchester Avenue to South Boston, Columbia Point and Dorchester; biking paths to the waterfront and downtown; and walkability to Back Bay, the Seaport, the waterfront, and downtown.

SPORTS PARK

NEW CIVIC SPACE

0 900450

NEW BROADWAY MBTA STATION ACCESS

NEW FAIRMOUNT LINE COMMUTER R AIL STATION

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MIDTOWN 2024

14

OLYMPIC PLAN

OLYMPIC PLAN

MIDTOWN 2024

I L LUS T R AT IVE PRO G R AM (S F) PHAS E 1 TOTAL

RE TA I L 30 0,0 0 0 30 0,0 0 0

H OT EL 240,0 0 0 240,0 0 0

RES I D EN T IAL 90 0,0 0 0 90 0,0 0 0

O FFI CE 250,0 0 0 250,0 0 0

I N S T I T U T I O NAL 0 0

O FFI CE (S TAT E) 50,0 0 0 50,0 0 0

TOTAL 1 ,740,0 0 0 1 ,740,0 0 0

PARK I N G S PACES 1 ,50 0 1 ,50 0

T

TW 4 T H S T R E E T

A PPR OX . 9 50 U N I T S

DO

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SUMMER 2024

photos: istockphoto.com

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PHASE 2

DO

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MIDTOWN LEGACYPHASE 2 - 2025


RE TA I L 30 0,0 0 0 60 0,0 0 0

H OT EL 0 240,0 0 0

RES I D EN T IAL 50 0,0 0 0 1 ,40 0,0 0 0

O FFI CE 50 0,0 0 0 750,0 0 0

I N S T I T U T I O NAL 250,0 0 0 250,0 0 0

O FFI CE (S TAT E) 0 50,0 0 0

TOTAL 1 ,550,0 0 0 3, 290,0 0 0

PARK I N G S PACES 1 ,50 0 3,0 0 0

MIDTOWN L ANDING

TEMPOR ARY GREEN SPACE

PERMANENT OPEN SPACE



T

W 4 T H S T R E E T

A PPR OX . 525 U N I T S

T

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MIDTOWN LANDING

photos: (1) Mikkel Frost/CEBRA, (2) Etienne Frossard/brooklynbridgepark.org, (3) Mark Stephenson/flickr.com, (4) onboardthegravytrain.com

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2 3

4

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PHASE 3



RE TA I L 50,0 0 0 650,0 0 0

H OT EL 20 0,0 0 0 4 40,0 0 0

RES I D EN T IAL 50 0,0 0 0 1 ,90 0,0 0 0

O FFI CE 50 0,0 0 0 1 , 250,0 0 0

I N S T I T U T I O NAL 250,0 0 0 50 0,0 0 0

O FFI CE (S TAT E) 0 50,0 0 0

TOTAL 1 ,50 0,0 0 0 4,790,0 0 0

PARK I N G S PACES 1 ,0 0 0 4,0 0 0

MIDTOWN OUTDOOR

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T

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MIDTOWN OUTDOOR

photos: (1) Steve Debenport/istockphoto.com, (2) NIPPaysage/landezine.com, (3) John Gollings/landezine.com, (4) Crooked Tree Arts Center

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2 3

4

20

PHASE 4

DO

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RE TA I L 50,0 0 0 70 0,0 0 0

H OT EL 0 4 40,0 0 0

RES I D EN T IAL 50 0,0 0 0 2,40 0,0 0 0

O FFI CE 50 0,0 0 0 1 ,750,0 0 0

I N S T I T U T I O NAL 0 50 0,0 0 0

O FFI CE (S TAT E) 0 50,0 0 0

TOTAL 1 ,050,0 0 0 5,8 40,0 0 0

PARK I N G 50 0 4,50 0

OLYMPIC BOULEVARD

T

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W 4 T H S T R E E T


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OLYMPIC BOULEVARD

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photos: (1) Victor Dover/streets.mn, (2) B+B/landezine.com, (3) B+B/landezine.com

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PHASE 5

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RE TA I L 50,0 0 0 750,0 0 0

H OT EL 0 4 40,0 0 0

RES I D EN T IAL 50 0,0 0 0 2,90 0,0 0 0

O FFI CE 50 0,0 0 0 2, 250,0 0 0

I N S T I T U T I O NAL 0 50 0,0 0 0

O FFI CE (S TAT E) 0 50,0 0 0

TOTAL 1 ,050,0 0 0 6,890,0 0 0

PARK I N G 50 0 5,0 0 0

MIDTOWN CAFE

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W 4 T H S T R E E T


T


MIDTOWN CAFE

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photos: (1) Hullettable/wikipedia.org, (2) Shaun Robinson/Shutterstock.com, (3) Greg Linhares/imgkid.com, (4) Clement Guillaume/dezeen.com

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PHASE 6



RE TA I L 0 750,0 0 0

H OT EL 0 4 40,0 0 0

RES I D EN T IAL 50 0,0 0 0 3,40 0,0 0 0

O FFI CE 0 2, 250,0 0 0

I N S T I T U T I O NAL 0 50 0,0 0 0

O FFI CE (S TAT E) 0 50,0 0 0

TOTAL 50 0,0 0 0 7,390,0 0 0

PARK I N G 0 5,0 0 0

SPORTS PARK

T

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W 4 T H S T R E E T


T

DO

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ST

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AV

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SPORTS PARK

1

2 3

4

photos: (1) Rose Etherington/dezeen.com, (2) EFFEKT/archdaily.com, (3) EFFEKT/archdaily.com, (4) Andrew Lloyd/architectureau.com

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PHASE 7



RE TA I L 0 750,0 0 0

H OT EL 0 4 40,0 0 0

RES I D EN T IAL 50 0,0 0 0 3,90 0,0 0 0

O FFI CE 0 2, 250,0 0 0

I N S T I T U T I O NAL 0 50 0,0 0 0

O FFI CE (S TAT E) 0 50,0 0 0

TOTAL 50 0,0 0 0 7,890,0 0 0

PARK I N G 0 5,0 0 0

LEGACY PARK

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W 4 T H S T R E E T

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LEGACY PARK

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4

photos: (1) Wrigley fielder/vimeo.com, (2) ANNABAU/landezine.com, (3) nyclovesnyc.blogspot.com, (4) Alija / istockphoto.com

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MIDTOWN LEGACYLOWER LEVEL - EL 8-0

S O U T H E N D

PARKINGL E V E L O N E

EXISTING MBTA BUS FACILIT Y







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S E A P O R T


DPW MAINTENANCE

MBTA STOR AGE TR ACKS + L AY-DOWN SPACE



The Midtown Legacy plan, with or without the Olympic Stadium, will be constructed on a new platform, or Plaza, at a new grade. Serving as the foundation for approximately 8 million square feet of development over several decades, it will be comprised of two levels, one at an elevation of 8'-0"* and the second at an elevation of 18'-9"*.

* Elevations based on the North American Vertical Datum of 1988 (NAVD88).

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MBTA BUS MAINTENANCE

WA S H + F U E L


BUS STOR AGE

FUTURE PARKING

S O U T H E N D

MIDTOWN LEGACYMIDDLE LEVEL - EL 18-9

PARKINGL E V E L T WO





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S E A P O R TBelow the new grade will be a new MBTA bus maintenance facility replacing the current Cabot bus facility. Located at elevation 18'-9"*, the bus maintenance facility is planned for resiliency; at 18'-9"* feet, it is above the 100-year flood and storm surge.





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renderings: Related | Oxford

HUDSON YARDSA CASE STUDY


Hudson Yards on New York Citys West Side establishes a strong precedent for the Midtown Legacy strategy. Evolved out of the planning for an Olympic Stadium for the 2012 Summer Olympic Games, Hudson Yards is the largest private development in US history, currently under construction on a 26-acre platform over working rail lines of the Metropolitan Transportation Authority. When complete, the project will include 12 commercial and residential towers, a park, and a cultural center.

Hudson Yards will eventually be home to six million square feet of office space, five million square feet of residential space, a mixture of affordable and high-end condominiums and one million square feet of retail, including a cinema and a department store. While Hudson Yards is built largely over rail lines, at Midtown, only 6.8 acres of the total 83 acres are actually proposed over active rail; the remainder is more conventional and less expensive construction. Hudson Yards demonstrates that a large, mixed-use project on a deck is viable.

As part of the Hudson Yards development, an extension of the No. 7 subway line from Times Square to 34th Street and 11th Avenue will open this year, and work is nearly complete on a new tree-lined boulevard between 10th and 11th Avenues.

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BCEC

E A S T B E R K E L E Y S T R E E T

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B A C K B AY

VIABILITY WITHOUT THE OLYMPICS

INKBLOCK

SOUTH BAY

S O U T H E N D





The Midtown Legacy plan is viewed as a plan that would proceed with or without the Olympics.

Its core physical assets remain:

Site that connects South Boston and the South End

Excellent access to transit on the MBTA Red Line

Location at the heart of the city one mile to Fan Pier; one mile to Commonwealth Avenue; less than one mile to South Station

Proximity to the waterfront and Fort Point Channel

Immediate access to I-93, the Southeast Expressway, I-90, the Massachusetts Turnpike.

In addition, the site has the size to achieve a coherent urban sense of place with a mix of office, residential, hotel, shops, and restaurants. The master plan describes more than 15 acres of permanent open space for active and passive recreation. The Olympic Games provide the catalytic effect that makes this smart development happen sooner.

The proposed density is the equivalent of an FAR of approximately 3.8, which compares to other development areas in the city, e.g., Fan Pier at 4.0 and the Fenway with a base zoning of 5.0. This vision for Midtown is conceptual: it must be fully aligned with the Citys vision for this property and the surrounding development opportunities, and be fully vetted through the normal community development process. It must be Bostons vision for this pivotal site the seam between two great neighborhoods.

FAN PIER

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S E A P O R T

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3. Vision for an Olympic Stadium


In the summer of 2024, the Olympic Stadium will be located at Midtown, an urban sports park in the heart of Boston created from currently underutilized properties at the southern end of Fort Point Channel.

3. VISION FOR AN OLYMPIC STADIUM

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MIDTOWN 2024PLAZA LEVEL

OLYMPIC BOULEVARD

FIRST PHASE OF DEVELOPMENT

OLYMPIC PL A ZA

OLYMPIC STADIUM69,0 0 0 S E AT S

S O U T H E N D

H OT EL R ES I D EN T I A L O FFI CE T R A N S I T





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WARM-UP FIELDS

S E A P O R T


The Olympic Stadium will have a capacity of 69,000 spectators in a state-of-the-art temporary facility with expansive guest gathering, dining, and celebration spaces.

The temporary Stadium focuses on re-usability and sustainability by:

Leasing from temporary stadium suppliers

Erecting with local labor

Re-using 95% of all materials at future sites

Designing efficiently, economically, and sustainably

Retaining land for future highest and best use development.

With newly created grade at elevation +34.0*, the Olympic Plaza will be at the same elevation as West 4th Street and will be directly connected for pedestrians to South Station by Olympic Boulevard on the right-of-way of historic Dorchester Avenue. Olympic Boulevard will connect Summer Street to Broadway and South Station to the Olympic Stadium. Below Olympic Plaza will be the full inventory of Olympic back-of-house facilities including security, broadcast, operations, ceremonies, and athletes preparation areas.

Served by MBTA Red Line stations at Broadway and Andrew and less than a mile from South Station, Midtown has unparalleled public transit capacity as well as adjacency to I-93, the Southeast Expressway, I-90, the Massachusetts Turnpike. Bounded by I-93, West 4th Street, Dorchester Avenue, and the reconfigured Haul Road, the Midtown site is 83 acres.



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S O U T H E N D

MIDTOWN 2024LOWER LEVEL



AT H L E T E M ED I AO LY M PI C FA M I LY O PER AT I O N S CER EM O NY





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GAMES OPER ATIONS

S E A P O R T


Spectators will enter the Stadium from the north at West 4th Street with queuing and security within the 83-acre park boundary. Athletes will enter the secure perimeter from Dorchester Avenue, having arrived by bus from the Athletes Village at Columbia Point, less than a mile from the Stadium. A vehicle-screening area is the entrance way to 12 acres of practice and warm-up facilities. From there, athletes proceed on a secure pedestrian bridge to the lower level of the Stadium for final preparation and entrance into the Stadium from the northwest corner.

VIPs will enter the Midtown site from the south, where a continuous vehicular ring road circles the perimeter of the field of play below the Plaza and provides secure access and egress to all VIP accommodations on the west side of the Stadium.

At the time of the Games, the first phase of development will already be complete, MBTA facilities will be relocated and City facilities will be temporarily located off site. This private commercial development will include the following components:

Office: 250,000 square feetRetail: 300,000 square feetHotel: 400 keysResidential: approximately 950 unitsParking: 1,500 spaces


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photos: (1) Rosie Tulips/flickr.com, (2) Henrico Prins/flickr.com, (3) Daniel Coomber/flickr.com

1

HORSE GUARDS PAR ADELONDON, ENGL AND

EMPIRE FIELDVANCOUVER, CANADA


The proposed Olympic Stadium will seat 69,000 spectators and will be temporary. There is a long history of flexible and sustainable temporary stadium construction for popular global sports and cultural events.

The advantages of temporary and modular construction are multiple:

no white elephants left behind

reduced capital costs

no cost allocation required for maintenance and operation

sustainable strategy with high reuseability of component parts

installation and disassembly speed.

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AMI STADIUM CHRISTCHURCH, NEW ZEAL AND

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4. Midtown Today


4. MIDTOWN TODAY

Midtown today presents an extraordinary opportunity for a new neighborhood, connected to the South End and South Boston and an opportunity for signif icant investment in the city.

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The site is one mile away from the booming construction of the South Boston Waterfront, one mile away from busy Back Bay, and less than a mile from South Station, the transit hub of New England. Adjacent to I-93, with easy-access through Boston arterial roads, and adjacent to the MBTA Red Line, Midtown is easily connected to the rest of the city and the larger Metro Boston region by vehicle or public transit. Due to its location and its access to the MBTA Red Line, the current underutilized site is adjacent to one of the areas labeled as a Strategic Planning Area in the City of Boston.

The existing site is comprised of both public and private ownership. The five principal owners are as follows:

The City of Boston uses 17.8 acres for public works storage, City vehicular fleet maintenance, salt sheds, and a tow lot.

The Commonwealth of Massachusetts uses 2.0 acres for maintenance (unaffected by this plan); the MBTA uses 23.1 acres for bus maintenance, fueling, and washing; a .85-acre parcel controlled by the Commonwealth of Massachusetts Highways is unused.

The New Boston Food Market uses 16.4 acres for a wholesale food distribution facility.

ART Mortgage Borrower (Americold) controls 4.7 acres and maintains a cold storage facility related to the New Boston Food Market.

National Railroad Passenger controls a segment of rail bed totaling 1.4 acres (Amtrak wash facilities).

In addition, development of the site for the new neighborhood requires the control of air rights above the MBTA rail lines that are used by the MBTA and leased to Amtrak.

The New Boston Food Market houses multiple businesses and supports more than 800 permanent jobs. These businesses were relocated from Quincy Market in the 1970s, and these businesses are critical to keep in Boston. A relocation strategy is being pursued that will provide excellent highway and airport access for these businesses and their employees.

The entire area is currently zoned for General Industrial uses, designated I-2 by the Boston Zoning Code.

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5. Land Assembly

MIDTOWNLAND OWNERSHIP


The Midtown site proposed as the home for the Olympic Stadium has several current public and private owners of the property.

5. LAND ASSEMBLY

CO M M O NWE A LT H O F M A S SACH U S E T T S

CI T Y O F B O S TO N A M T R A K

N E W B O S TO N F O O D M A R K E T

A RT M O RTGAG E B O R ROWER ( A M ER I CO L D)

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Parcels to be assembled include:

New Boston Food MarketAn approximately 16.4-acre parcel containing a series of buildings housing primarily food-related processing and storage businesses in a cooperative ownership arrangement. These are successful businesses that need to be relocated, and a collaborative strategy for relocation with excellent access to Logan International Airport is currently being explored.

ART Mortgage Borrower (Americold) An approximately 4.7-acre parcel containing a cold storage facility. The business would also be relocated, and proximity to a new food market location is being explored.

City of Boston A collection of contiguous parcels totaling approximately 17.8 acres housing a fleet maintenance facility, a police vehicle maintenance facility, a towed-car parking lot, offices, and a parking garage. These functions would need to be relocated.

Massachusetts Bay Transportation Authority Cabot Bus FacilityA collection of contiguous parcels totaling approximately 25 acres containing a bus storage and light repair facility. The functions would need to be relocated nearby; the proposal explores the possibility of relocation on site.

Massachusetts Bay Transportation Authority Track 61An at-grade train track currently used for train turning and storage, but envisioned as a potential passenger train link to the Seaport

from other key parts of Boston and the region. This right-of-way needs to be maintained in a usable form so as to not prohibit future use for passenger trains.

Amtrak A train car washing facility that would need to be modified or relocated; air rights over tracks would be needed.

All the landowners above have been engaged in conversations with Boston 2024 about options to sell or lease their properties and relocate, as described below.

As discussed in earlier chapters, the plan for Midtown is viewed as a plan that would proceed with or without the Olympics. Based on that understanding, all land assembly actions are being taken to allow for and facilitate either path.

PURCHASE AND RELOCATION STRATEGY AND STATUS

Assembly of the required land for the Midtown site and properly planning and zoning for its uses is the overriding strategy for this site and the core of the financial viability, as described in Chapter 7. The intent is to negotiate purchase and relocation agreements, as applicable, with each land owner in the near term. A competitive procurement process is anticipated to be undertaken by a process guided by the City of Boston to transfer control of all parcels to a master project developer. The developer will be responsible for financing all land and related costs, including relocating tenants and building the deck and related infrastructure.


The status of each parcel is as follows:

New Boston Food MarketThe owners of the site, a cooperative, have engaged in dialogue to sell their site subject to satisfactory relocation facilities and economic arrangements that meet their needs. Discussions about value, timing, and relocation have been initiated. Site relocation alternatives are actively being explored in the Seaport and surrounding areas.

ART Mortgage Borrower (Americold) The owner of the site, a real estate investment trust, is interested in selling and relocating to a new site. Discussions about value, timing, and relocation are underway.

City of Boston The functions performed by the City of Boston at this site would need to be relocated on the site or elsewhere in the city. For this analysis, it is assumed that the majority of the functions will be relocated below the deck. The cost of the new facilities will be funded by the site developer. Discussions are underway with the City of Boston about relocation.

Massachusetts Bay Transportation AuthorityCabot Bus FacilityThe functions performed by the MBTA at this site would need to be relocated on the site or nearby. For this analysis, it is assumed that the functions would be relocated largely under the deck (bus storage) and possibly on a nearby site (light maintenance) on Albany Street that is already controlled by the MBTA. Discussions are underway with the MBTA about relocation.

AmtrakThe train wash facility modification or relocation plan, as well as the air rights issues, will need to be developed, working with Amtrak.

RISK ANALYSIS

Potential risks involved in the land assembly of this site could include:

Any potential land owner holdouts, resulting in well-above-market asking prices, delays in selling, or refusal to sell

Problems with relocation sites, including identification, cost, and timing.

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6. Infrastructure


One of Midtowns strengths is its adjacency to high-quality, high-capacity transportation facilities.

6. INFRASTRUCTURE

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BCEC

B A C K B AY

REGIONAL TRANSPORTATION


S O U T H E N D B R OA DWAY

M I DTO W N

A N D R E W

N E W M A R K E T

E X I T 24

E X I T 1 8

E X I T 2 0

E X I T 1 8

E X I T 2 0


BCEC

S E A P O R T


E X I T 2 5Adjacent to Broadway Station; located less than a mile south of South Station, the Commonwealths busiest and highest-capacity public transport hub; and less than a mile from Tufts Medical Center Station and Andrew Station, Midtown is well connected to Red Line, Orange Line, Commuter Rail, and Silver Line services.

The Red and Orange Lines, two of the most important public transport lines serving the Commonwealth, currently have a maximum capacity of 70,000 passengers per hour. With previously planned improvements, including rolling stock, power upgrades, and signal upgrades, carrying capacity of these lines will increase, backfilling the MBTA system with much needed capacity and leaving the city and Commonwealth with transit capacity to support housing expansion, economic development, and new employment opportunities, regardless of the Games.

A revitalized Dorchester Avenue will provide direct pedestrian and bicycle connection between South Station, Midtown, and the South Boston residential neighborhood. New points of access to local roads from the elevated deck will greatly improve connections between future developments and adjacent communities.

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B A C K B AY

ARTERIAL ACCESS

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Midtowns proximity to I-90 and I-93 provides excellent access to the regional roadway system. Midtowns ease of access to I-90 and the Silver Line provides strong vehicular and transit connections to Logan International Airport.

The most significant barrier the MBTA faces to expand its bus service is its capacity to store and maintain an expanded bus fleet. Redevelopment of Widett Circle allows relocation of the Cabot Bus Maintenance Facility from its current location to below the elevated deck after the Games, at an elevation that provides a resilient solution and protection against storm surge.

S E A P O R T


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58

MIDTOWN TRANSITIMPROVEMENTS

M I DTOWN PU B L I CLY FU N D ED I N FR AS T RU C T U RE CO S T S

CO M P O N EN T CO S T

B ROADWAY S TAT I O N I M PROVEM EN T S $10 0,0 0 0,0 0 0

TOTAL $10 0,0 0 0,0 0 0

M I DTOWN D E VELO PER-FU N D ED I N FR AS T RU C T U RE CO S T S

CO M P O N EN T CO S T

WI D E T T CI RCL E R A I L S TAT I O N (P O S T- GAM ES) $96,0 0 0,0 0 0

MAS S AVE CO N N EC TO R E X T EN S I O N (P O S T- GAM ES) $10,0 0 0,0 0 0

A S T REE T CO N N EC T I O N/E X T EN S I O N (P O S T- GAM ES) $10,0 0 0,0 0 0

ROADS ARO U N D O LYM PI C S TAD I U M (PRE- GAM ES) $10,0 0 0,0 0 0

ROADWAY RECO N FI G U R AT I O N O F S O U T H B O S TO N BYPAS S ROAD (P O S T- GAM ES) $30,0 0 0,0 0 0

TOTAL $156,0 0 0,0 0 0


The Games and the Midtown Legacy development plan can also be the catalyst for significant infrastructure improvements.

The Legacy transportation plan for Midtown proposes a new entrance for Broadway Station, a new Fairmount branch commuter rail station to support regional public transport access, a reconfigured Haul Road, an extension of the Mass Ave Connector, an extension of A Street that will connect Midtown to the South End, South Boston and beyond.

The Broadway Station expansion will increase the effective reach of the station by adding an additional head house in the vicinity of West 4th Street and Dorchester Avenue. This will spread the existing and future passenger loads more evenly along the platform and increase vertical access options to increase station capacity and accommodate emergency evacuation of high passenger loads.

The new Midtown Station serving the Fairmount branch rail station will support regional public transport access, providing enhanced connectivity from South Station, the Seaport and the new Midtown development to the neighborhoods of Dorchester, Roxbury, Mattapan, and Hyde Park.

In addition to the Midtown Station, the following infrastructure improvements are included within the scope of the master developer:

Multiple access points to/from Widett Circle to connect to local and regional roadway system

Existing access/egress from the frontage road under South Boston Bypass Road

A new access/egress point to the west, as an extension of the Mass Ave Connector into the site

Right-in/right-out from frontage road

A new access/egress point on West 4th Street.

The Midtown development should serve as a catalyst for improvements to the MBTAs subway capacity that account for future ridership growth. For example, signal and power upgrades for the Red Line will decrease peak-hour headways from 4.5 minutes to 3 minutes providing 50 percent greater peak-hour capacity through the core, and will decrease station wait time, resulting in less overall travel time and increased comfort from less crowding during peak service.

The Olympics can also be the catalyst for a permanent transit connection between the Boston Convention and Exhibition Center (BCEC) and Back Bay and on to Allston by means of improvements to Track 61 via New Diesel Multiple Units (DMU) service. Midtown can be designed to accommodate a future DMU station that connects the Back Bay and the Seaport District.

60

MIDTOWNUTILITY PLAN


S O U T H E N D

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The Midtown site is well served by infrastructure with regional utility services available at the perimeter of the site.

The Midtown site includes Widett Circle and areas extending north to West 4th Street. This area includes the Olympic Stadium and will be redeveloped in to a mixed-use neighborhood with office, retail, hotel, and residential uses under the Legacy plan.

This area is well served by infrastructure with regional utility services available at the perimeter of the site. The area to the west and east of the site is densely developed and supported by regional utility systems that traverse portions of the Widett Circle site or are located in public corridors at the perimeter of the site.

WATER

Multiple water systems are available in Frontage Road to the west of the site and Dorchester Avenue to the east of the site. As many as five 12-inch looped water systems exist in immediate proximity to the site. These systems are cross-connected to the north and south of the site, increasing system redundancy and reliability in the case of a break on any of the subject segments.

The proposed stadium facility is anticipated to require approximately 220,000 gallons of water per day. The Legacy development is expected to require 1,150,000 gallons per day of water, with its flow including the following:

Residential - 3,900,000 square feet with 5250 bedrooms generating approximately 635,000 gallons per day

Retail 675,000 square feet generating approximately 37,000 gallons per day

Restaurant An anticipated 5,000 seats generating 192,500 gallons per day

Office 2,250,000 square feet generating approximately 186,000 gallons per day

Hotel 750 rooms generating approximately 97,000 gallons per day

Based on initial discussions with the Boston Water and Sewer Commission (BWSC), this capacity can be accommodated via the existing regional infrastructure. The designated master developer will need to work with the City and the BWSC to develop a local network plan to support specific building site needs and firefighting capability, anticipated to include system modeling to confirm system performance and delivered capacity.

CO M B I N ED S E WER FI B ER O P T I C

D ED I C AT ED D R A I N AG E

D ED I C AT ED S E WER S T R E A M

62

SANITARY SEWER

Sanitary sewer capacity in the Midtown/Widett Circle area is also robust. The site is bordered by two sanitary collectors that are directed to the main sanitary tunnel between the city and the Deer Island Regional Treatment Facility. Over the last decade, the BWSC has undertaken a program of separating sewerage and drainage in the areas to the south of the city center. In parallel, the Massachusetts Water Resources Authority (MWRA) has upgraded the regional collection system. These improvements have resulted in increased system capacity. Currently the Deer Island Treatment plant has a capacity of 1.2 billion gallons per day with an average flow of 348 million gallons per day. The BWSC indicates that capacity exists for the proposed project.

The Stadium facility has a projected sanitary generation of 220,000 gallons per day. The Legacy development projections at the Midtown site are projected to be approximately 1,100,000 gallons per day and are generally comparable to water demand minus about 10%.

TELECOM/DATA

Frontage Road and Dorchester Avenue immediately adjacent to the site include regional data loops that connect to long haul fiber via local network switches in Boston.

DRAINAGE

The storm water management system proposed for the Midtown site will incorporate innovative storm water management systems and techniques to limit off-site flows and reduce pollutants prior to discharge to the municipal infrastructure. The end result will be a positive impact on water quality and collection system performance.

A portion of the Dorchester Brook Conduit, a major local drain collector, is within the site limits. Construction of the Stadium may require relocation of a portion of this line that will include provision of direct connections to the facility storm water systems. The proposed rainfall management and treatment system for the Stadium will include facilities to treat runoff from roof, plaza, and paved areas and infiltration features that will recharge the underlying groundwater table. Spill prevention functionality will be included at loading and service areas to protect the aquifer.

Given the configuration of the Midtown site as a raised development area, we anticipate the use of localized bioretention areas to manage storm water volumes, improving hydrologic performance over the existing condition. These areas will also provide storm water treatment to improve water quality over the existing condition. Other measures that are being explored include storm water capture and reuse strategies to decrease site potable water demands, vegetated roof areas, and the use of blue roofs (roof retention areas).

7. FIN

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7. Financial Plan


The Midtown site has unique characteristics that make it compelling for mixed-use development as well as for a temporary Olympic Stadium.

7. FINANCIAL PLAN

64

MASTER PLAN VISION

L EGAC Y V I S I O NGA M ES V I S I O N

T ECH N I C A L S O LU T I O N S

L AND ASSEMBLYO P T I O N AG R EEM EN T S

R ELO C AT I O N PL A N S

SELECT DEVELOPERO FFER L A N D F O R SA L E

S EL EC T D E VELO PERT R A N S FER L A N D

REZONINGR E ZO N E F O R PL A N

TA X S T RU C T U R E

First, by using the Games as a catalyst for development of this site into the next great neighborhood of Boston, the City will achieve an important city-building ambition.

Second, as described in earlier chapters, a temporary Olympic Stadium in this location creates a highly functional, attractive centerpiece for the Games. Third, and the focus of this section, the potential financial value that can be created by the long-term development of the underutilized site will attract private investment to prepare and temporarily provide the site for the Stadium.

While development of the site involves multiple parties and steps, the proposed financial structure is not complicated. By creating a comprehensive master plan for the district and assembling and re-zoning the land, the City of

Boston and Boston 2024 will create real estate value that does not exist today, which, when monetized, would be adequate to fund the preparation and temporary provision of the site for the stadium.

The benefits to the City of Boston are substantial:

500750 construction jobs annually at Midtown over 18 years

+/- 1000 permanent jobs for hotel workers, building maintenance, and retail employees

Increased tax revenues to the City of Boston from approximately $857,000 annual revenue today to $7.3 million annual in 2030, $26.9 million annual in 2040, $64.0 million annual in 2050 and $362.0 million annual in 2080 when all tax phase-ins have expired**

4,000 new units of mixed-income housing in the heart of the city, including 520 affordable units

15 acres of permanent new open space (8 times Post Office Square) and a vital link in the open space network of the city

** The specific tax phase-in in the proposal is for illustrative purposes. It has not been agreed to by the City of Boston and would be subject to negotiation between the city and the successful developer after a competitive process. Future tax revenues are based on assumed property values and current estimated tax rates


GAMESO N E Y E A R O F PR EPA R AT I O N

A N D U S E

POST-GAMES DEVELOPMENTFU T U R E PH A S ES O F

D E VELO PM EN T

PRE-GAMES DEVELOPMENTD ES I G N + A PPROVA L SR ELO C AT E T EN A N T S

B U I L D PA R K I N G + D ECKPH A S E 1 D E VELO PM EN T

GAMES PREPAR ATIONT EM P O R A RY S TA D I U M

WA R M-U P A R E AS U PP O RT S PACE

Accommodation for 9,000 office/science and technology workers

New resilient and sustainable MBTA bus maintenance facilities on site and City of Boston facilities.

New community and cultural spaces

A catalytic effect on the development of the Dorchester Avenue corridor

Improved connectivity from South Boston to the South End to the Back Bay.

OVERVIEW

The proposed financial plan described here represents an illustrative example of a viable mix of uses, of appropriate height and density, of well-considered costs and reasonable projected revenues, as well as reasonably phased schedule based on historic absorption data. We recognize that there are opportunities to refine cost and optimize revenues and also opportunities to align with evolving public policy for mixed income housing in the city, and as mentioned, any final tax structure needs to be agreed to by the City

of Boston and the successful developer. We fully expect that there will be multiple iterations of this financial plan.

We have estimated a $1.2 billion investment by the initial developer that is selected to build and finance the proposed infrastructure, land assemblage and relocation needs, and deck on the 83-acre site. To be selected via a competitive process guided by the City of Boston, the developer will be requested to guarantee cost and completion of the proposed infrastructure, Plaza, and related improvements and provide 100% of the $1.2 billion capital, to be secured by a credit-worthy guarantee. In return for this financial commitment, the developer will benefit from a project that will be fully zoned and entitled with a master development plan, yet with a flexibility of uses to allow for the future development of approximately eight million square feet of mixed-use including, residential, retail, office, hotel, and other related uses; and a tax agreement in place to allow for a gradual increase of real estate tax levels.

66

M I DTOWN PRO P O S ED I N FR AS T RU C T U RE D E VELO PM EN T

D ES CR I P T I O N K E Y AS S U M P T I O N SES T I MAT ED

CO S TS Q UARE

FO OTAG E

CO S T PER S Q UARE

FO OT

(1) L A N D ACQ U I S I T I O N W I D E T T A L LOWA N CE $1 25,0 0 0,0 0 0

A M T R A K A I R R I G H T S A L LOWA N CE $10,0 0 0,0 0 0

CO B M A I N T EN A N CE R ELO C AT I O N TO B E R ELO C AT ED B ELOW PL A Z A $ 50,5 40,0 0 0 145,0 0 0 $ 3 48.55/S F

CO B O FFI CEA L LOW N E W O FFI CE / T I

LO C AT I O N T B D$ 25, 202,53 4 72,0 0 0 $ 3 50.0 4/S F

CO B PA R K I N G R ELO C AT I O N A L LOWA N CE $9, 251 ,460 150,0 0 0 $61 .6 8/S F

CO B T EM P S PACE: TOW LOT, S A LT S H ED A L LOWA N CE $ 5,0 0 0,0 0 0

A M T R A K T R A I N WA S H FACI L I T Y A L LOWA N CE $10,0 0 0,0 0 0

M B TA C A B OT YA R D S B U S M A I N T EN A N CE / O FFI CE TO B E R ELO C AT ED B ELOW PL A Z A $60, 231 ,392 173,50 0 $ 3 47. 15/S F

OV ER B U I L D PL A Z A A D J U S T ED TO 30 0,0 0 0 S F $161 , 186,760 30 0,0 0 0 $ 537. 29/S F

PL A Z A CO N S T R U C T I O N $152,737, 287 1 , 167,486 $130.83/S F

MBTA BUS FACILIT Y 2ND DECK UNDER THE PL A Z A $ 3 6,05 4,0 49 3 61 ,070 $99.8 5/S F

S T R U C T U R A L PL A Z A I N FI L L PL A Z A I N FI L L A F T ER S TA D I U M $ 47, 233,1 22 3 80,0 0 0 $1 24.30/S F

S T R U C T U R A L PL A Z A OV ER T ER R A F I R M A PH A S E I D E V ELO PM EN T A R E A $ 56,6 47,528 49 0,0 0 0 $1 15 .61 /S F

F O U N DAT I O N / CO LU M N U P G R A D E FU T U R E V ER T I C A L D E V ELO PM EN T $ 50,18 4, 286 5,0 0 0,0 0 0 $10.0 4/S F

R E T R O FI T CO M M U T ER R A I L S T R U C T U R ES AT R O O F I N T ER S EC T I O N A L LOWA N CE $ 3,30 0,0 0 0

PL A Z A F I N I S H ES - W/O PH A S E I D E V ELO PM EN T / W/O I N FI L L $ 56,1 1 1 ,416 1 ,467,486 $ 3 8. 24/S F

PL A Z A F I N I S H ES - PH A S E I D E V ELO PM EN T N A

PL A Z A F I N I S H ES - S TA D I U M I N FI L L N A

T ER R A F I R M A PR EP N E CO R N ERI N A D D I T I O N TO D EM O/

R EM ED I AT I O N B ELOW$ 4,051 ,73 5 594,51 2 $6.82/S F

AT H L E T E B R I D G E TO N O R T H E A S T WA R M-U P A R E A N OT A COV ER ED B R I D G E $1 1 ,392,521 14 ,0 0 0 $ 813.7 5/S F

O N G R A D E PR O M EN A D E TO S O U T H S TAT I O N $ 8,915,305 260,0 0 0 $ 3 4. 29/S F

D EM O R EM ED I AT I O N CO B $1 1 ,507, 157 8 50,0 0 0 $13.5 4/S F

D EM O R EM ED I AT I O N M B TA $9,63 8,622 87 7,50 0 $10.9 8/S F

D EM O R EM ED I AT I O N W I D E T T $15,7 79, 225 1 , 20 0,0 0 0 $13. 15/S F

S U B T O TA L $ 91 9,9 6 4 , 4 41

CO N T I N G EN C Y 10% $91 ,99 6,4 4 4

2 016 CO S T $1 ,01 1 ,9 6 0,8 8 5

2 0 2 2 CO S T $1 , 2 0 0,0 0 0,0 0 0 3% I N F L AT I O N

Note 1: assumes only land purchased is Widett property, MBTA and COB properties are swapped for equivalent valueNote 2: cost to build 1,500 spaces below deck is $24,825 per spaceNote 3: cost to build temporary Stadium carried separately in OCOG budget


invested over a 20-year project investment is in the 2.3 range. These return projections do not include returns from the investment in building developments, which are separately capitalized on a project-by-project basis.

A number of representatives in the real estate community were consulted to review a combination of demand, mix of uses, and current real estate land values, as well as real estate tax values for planned building developments. The basis of the assumptions included herein utilize current real estate and tax values escalated by 3% a year starting in 2016. All of the assumptions are based on the project infrastructure and assemblage activities described in this plan. A reasonable phasing plan was developed including a Phase I project of approximately 1,700,000 SF that may be built simultaneously with the Olympic Games. The Phase I development creates an opportunity for immediate payback of invested capital and provides returns from land values, parking, and phase-in of real estate taxes through a tax agreement negotiated with the City of Boston.

This financial plan was developed in conjunction with Thomas M. Alperin, President, National Development; Mahmood Malihi, Co-President, Leggat McCall Properties; James Tierney, Managing Director - New England Market, JLL; and Christopher Gordon, President, Dirigo Group. In addition, a variety of other local and international development and financial firms were consulted regarding the plan. The financing of legacy value methodologies from past Summer and Winter Olympic venues were also reviewed to help formulate the financial plan proposed.

OVERVI E W

D E VELO PM EN T PER I O D20222040

18 YRS

TOTAL D E VELO PM EN T 7,890,0 0 0 S F

AN N UAL AB S O RP T I O N 438,0 0 0 S F

L AN D + PARK I N G FAR VALU ES $1 ,361 ,60 0,0 0 0

EQ U I T Y S P O N S O R ANA LYS I S

TOTAL PRO J EC T CO S T S $1 , 20 0,0 0 0,0 0 0

B A S E C A S E

W I T H P O T E N T I A L

L E G AC Y T R A N S I T

I M P R OV E M E N T S ( A )

I RR 12. 2% 17.8%

M U LT I PL E 2. 29X 3.10X

RECOVERY O F C API TA L 2028 2028

(A) Track 61 (Optimistic) Scenario assumes +25% Tax Rates & Land Values (12.5% higher on Residential Tax Rates & Land Value)

The financial model for the proposed development build-out period anticipates an approximate 20-year development, with an initial phase of 1.7 million square feet constructed simultaneously with the Olympic Stadium (opening in 2024). Investment returns are achieved by the master developer through the realization of land value, the benefit of the plaza infrastructure minimizing foundation cost (platform savings), cost-effective parking, and the phase-in of real estate taxes through an agreement that would be negotiated with the City of Boston. The master developers returns are projected to provide an unlevered +/-12% Internal Rate of Return (IRR). The return of capital invested is estimated within an eight-year time frame, and the multiple on capital

68

DEVELOPMENT PROCESS

The steps in the development process are described below, with an emphasis on the financial strategy and structure.

Master PlanningAs described in Chapter 2, the master plan for the site has been developed to minimize capital costs and optimize revenue from long-term development. The development concept provides for relocated MBTA and City of Boston facilities, new development-related parking, and existing rail tracks to be housed on the site. The privately funded deck will be the platform for the Stadium, and for eight million square feet of development over several decades. A very similar concept is being successfully implemented at Hudson Yards in New York City, adjacent to Madison Square Garden, where construction is ongoing and the resulting new real estate created on top of the deck is rapidly being leased and developed, demonstrating the feasibility of the concept.

Land AssemblyAs described in Chapter 5, agreements will be put in place on the required parcels of land that make up the 83-acre site, including the Boston Food Market and ART Mortgage Borrower (Americold) parcels. These agreements will hold the parcels until the IOC site designation decision in 2017 and then be transferred to a master developer either in an Olympic scenario or a no-Olympic scenario.

FU T U RE L AN D VALU E AS S U M P T I O N S ($/FAR )

2016 L AN D VALU ESBAS E C AS E

W I T H P OT EN T I A L

L EG AC Y T R A N S I T

I M PR OV EM EN T S (A)

RE TA I L $ 150 $ 188

H OT EL$ 50K/

ROOM $ 83 $ 104

RES I D EN T IAL$ 62K/

UNIT $ 65 $ 73

O FFI CE $ 65 $ 81

I N S T I T U T I O NAL / N O N-PRO FI T $ 65 $ 81

PARK I N G$ 49, 20 0/

S PACE$ 61 ,50 0/

S PACE

(A) Legacy transit improvements refers to potential future connections made by DMU service and the addition of a commuter rail station.

Re-zoningThe site will be part of a cohesive master plan vision under the guidance of the Boston Redevelopment Authority (BRA) and City of Boston. The master plan will establish the vision for a vibrant and sustainable new mixed-use, transit-oriented community. As part of the re-envisioning, the site will be rezoned to allow for the planned uses and density. The increased density is a contributing factor in the value creation, taking the site from an FAR of 2 to approximately 3.6, and allowing for approximately eight million square feet of total development. This can be compared to recent developments in the City of Boston in the Seaport and Fenway areas with an approximate FAR of 4 and a base of 5, respectively. As part of the rezoning, it is contemplated that a tax agreement would be negotiated with the City, as has been done elsewhere in Boston and other cities, to allow for a gradual increase in tax revenue to the City from the site, allowing the project to establish itself


financially as it ramps up to full tax payment. We have proposed, for illustrative purposes, a tax structure in the financial analysis with the caveat that the City of Boston has not agreed to the specific structure but would need to negotiate an agreement with the successful developer.

Developer PartnershipThe assembled land and the new zoning and tax agreement, will be packaged for sale and/or lease by the City of Boston to qualified investors/developers who will purchase and/or lease the land, build the platform and facilities below the platform, and deliver the future development. This procurement will be conducted in an open, transparent competitive process to seek a strong partner for the project.

Pre-Games DevelopmentThe selected developer would relocate the tenants, reconfigure the MBTA and City of Boston facilities, build the parking and platform, and develop the first phase of commercial development on top of the platform in advance of the Games (approximately 1.7 M SF). The remainder of the site, including the completed but undeveloped portion of the platform, would be turned over temporarily to the Games if the Olympics go forward on the site.

Games PreparationApproximately 12 months prior to the Games, Boston 2024 would take control of the site and construct the temporary Stadium, warm-up area, and support facilities.

D E VELO PM EN T S CH ED U L E

T Y PE TOTA L PH A S E 1 PH A S E 2 PH A S E 3 PH A S E 4 PH A S E 5 PH A S E 6 PH A S E 7

DEVELOPMENT 2022 2025 2028 2031 2034 2037 2040

RETAIL 750,000 SF 300,000 SF 300,000 SF 50,000 SF 50,000 SF 50,000 SF - -

HOTEL 440,000 SF 240,000 SF - 200,000 SF - - - -

RESIDENTIAL 3,900,000 SF 900,000 SF 500,000 SF 500,000 SF 500,000 SF 500,000 SF 500,000 SF 500,000 SF

OFFICE 2,250,000 SF 250,000 SF 500,000 SF 500,000 SF 500,000 SF 500,000 SF - -

INST. / NON-PROFIT 500,000 SF - 250,000 SF 250,000 SF - - - -

( A ) OFFICE (STATE) 50,000 SF 50,000 SF - - - - - -

TOTAL 7,890,000 SF 1,740,000 SF 1,550,000 SF 1,500,000 SF 1,050,000 SF 1,050,000 SF 500,000 SF 500,000 SF

PARKING 5,000 SPACES 1,500 SPACES 1,500 SPACES 1,000 SPACES 500 SPACES 500 SPACES - -

LAND + RELATED VALUE $1,632,300,000 $318,400,000 $320,300,000 $304,300,000 $234,400,000 $256,100,000 $95,000,000 $103,800,000

PARKING VALUE $334,700,000 $88,100,000 $96,300,000 $70,100,000 $38,300,000 $41,900,000 $0 $0

(B) PLATFORM VALUE $182,000,000 $57,100,000 $46,600,000 $47,600,000 $30,700,000 $0 $0 $0

(A) No tax/land value attributed to 50k SF of City offices to be constructed in Phase 1 or infrastructure/foundations constructed as part of overbuild/plaza construction

(B) $30/SF construction cost reduction assumed for in-place plaza/foundation on first five million SF

70

GamesDuring the Games, the site would be under control of Boston 2024, with the exception of certain areas of the first phase development and MBTA and City of Boston facilities.

Post-Games DevelopmentSoon after the Games, the Stadium and support facilities would be removed and the site would be returned to the master developer. Future development would continue over several decades, based on market absorption.

FINANCIAL MODEL

The financial modeling of the proposed development reflects significant research and analysis of land values, development costs, tax structures, financing costs, rent expectations, absorption rates, and risks. The result of the modeling demonstrates that the temporary Stadium site could be provided for the Games with no public funds. The actual temporary Stadium facility and surrounding support elements to be built on the site for the Games would be funded with Olympic (OCOG) funds, but still no public funds. Key factors in the model include:

Cost AllocationTemporary facilities for the Games such as the Stadium structure, track and field, support space, warm-up facilities, and open space (entrance plaza, ticketing, etc.) would be funded with Olympic funds (OCOG). Permanent assets such as land and the platform would be funded by the master developer. Proposed funding for permanent public transportation infrastructure would be funded with normal Commonwealth or City infrastructure funds. The new Widett commuter rail stop would be funded by the developer.

CostsSee the chart on page 66 for the estimated costs for all developer infrastructure obligations.

Development ProgramA development program has been projected in order to forecast revenue based on total development capacity, successful mixed-use strategies, and perceived needs. The program includes residential, office, retail, hotel, and parking components.

Development PhasingA phasing plan has been developed to maximize early development while allowing room and time for the Games. Future phases have been estimated based on historic absorption rates. See page 69 for the program summary by phase.

Tax StructureIt is contemplated that a tax agreement would be negotiated with the City of Boston as part of the rezoning that allows for a gradual phase-in of real estate taxes. This allows the City to realize some tax revenue, while ensuring the financial strength of the development as it is built out and established.

The chart on page 71 is an example of the type of tax structure that could be proposed between the City of Boston and the successful developer. Any tax agreement is subject to negotiation.

Rent AssumptionsRent forecasts were based on market benchmark data.


ES T I MAT ED M I DTOWN A N N UA L TA X RE VEN U ES

YE ARTA X WI T H O U T N E W

D E VELO PM EN TTA X WI T H N E W

D E VELO PM EN T * N E T I N CRE AS E/ YE AR

2030 $1 ,329,0 0 0 $7, 283,0 0 0 +$5,95 4,0 0 0

2040 $1 ,786,0 0 0 $26,851 ,0 0 0 +$25,0 6 5,0 0 0

2050 $2,40 0,0 0 0 $6 4,036,0 0 0 +$61 ,636,0 0 0

2060 $3, 226,0 0 0 $132,622,0 0 0 +$129,39 6,0 0 0

* reflects example tax agreement below

I L LUS T R AT IVE TA X AG REEM EN T WI T H T H E CI T Y

PHAS E I N

TOTAL % O F AS S ES S ED

TA X

YE AR 1 - 10 15.0%

YE AR 1 1 - 20 30.0%

YE AR 21 - 30 50.0%

YE AR 31 - 40 7 5.0% These numbers are for projection purposes only, and it is anticipated that an RFP process will help the City to optimize the structure and arrangements of the proposed tax agreement(s). The City of Boston has not agreed to a specific tax structure.

RE AL ES TAT E TA X A S S U M P T I O N S

2016 AS S ES S ED TA X VALU ES

BA S E C AS E

(PER S F) (A)

W I T H P OT EN T I A L

L EG AC Y T R A N S I T

I M PR OV EM EN T S

(PER S F) (B)

RE TA I L $ 1 1 .0 0 $13.75

H OT EL$6,000/

ROOM $ 10.0 0 $12.5

RES I D EN T IAL$3,515/

UNIT $ 3 .70 $ 4.16

O FFI CE $ 10.0 0 $12.50

I N S T I T U T I O NAL / N O N-PRO FI T $ 2.50 $3.13

PARK I N G$ 750/S PACE

$938/ S PACE

(A) 3% Annual inflation on rates and values assumed

(B) Legacy transit improvements refers to potential future connections made by DMU service and the addition of a commuter rail station.

72

Residential, Change of supply as a percentage of total supply

Return on investment The nancial model used the assumptions listed in this section to determine a rate of return on cost for the project, from the perspective of the investor/developer. See Figure XX for the full nancial model results. After consultation with potential investors, it was determined that a return of approximately 12% would be desired to ensure adequate interest in the project. The model of the assumptions results in a return of approximately 12%.

6.4 Risk Analysis While the analysis described in this section is intentionally conservative, there is inherent risk when such a large potential investment is modeled based on numerous assumptions and over many years. The risks for Boston 2024 for this development plan are:

Proposals for the site from investors/developers fall short of expectations due to: o higher cost predictions for the deck, land, and/or relocations o failure to deliver the proposed rezoning and/or tax agreement o lower revenue predictions

Higher Olympic facilities costs, including: o Temporary stadium, support space, warm up area, and open space

0%

1%

2%

3%

4%

5%

6%

7%

0.0%0.5%1.0%1.5%2.0%2.5%3.0%3.5%4.0%

1990 2000 2010 2020 2030 2040

Vaca

ncy

Rat

e %

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Su

pp

ly a

s %

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tal

Midtown as % Total Supply

Construction Forecast Estimate as % Total Supply

Under Construction as % Total Supply

Construction as a % of Total Supply

1990-2014 Long Run Annual Average (LRA)

Vacancy %






0%

1%

2%

3%

4%

5%

6%

7%

0.0%0.5%1.0%1.5%2.0%2.5%3.0%3.5%4.0%

1990 2000 2010 2020 2030 2040

Vaca

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Vacancy %

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W R

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(% O

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20

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20

10

20

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20

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VA

CA

NC

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0%

2%

4%

6%

0%

1%

2%

3%

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CH A N G E I N S U PPLYU N D ER CO N S T RU C T I O NPL A N N ED + PRO P O S EDM I DTOWNVAC A N C Y199 02014 LO N G RU N A N N UA L AVER AG E (L R A )

VA

CA

NC

Y R

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0%

CBD Only, Change in supply, square feet

0

0.02

0.04

0.06

0.08

0.1

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0.14

-500,000

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

1990

2000

2010

2020

2030

Vaca

ncy R

ate

%

Oce

Squ

are

Feet

Change in Supply (SF) Under Construction Planned and Proposed

Midtown 1990-2014 Annual Average Vacancy

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0%

1%

2%

3%

4%

5%

6%

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0.0%0.5%1.0%1.5%2.0%2.5%3.0%3.5%4.0%

1990 2000 2010 2020 2030 2040

Vaca

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Vacancy %






0%

1%

2%

3%

4%

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0.0%0.5%1.0%1.5%2.0%2.5%3.0%3.5%4.0%

1990 2000 2010 2020 2030 2040

Vaca

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Vacancy %

VA

CA

NC

Y R

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0%

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6%

Residen Change in supply as a number of units

0%

1%

2%

3%

4%

5%

6%

7%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

1990 2000 2010 2020 2030

Vacanc

y Rate

%

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its

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Planned/Proposed Midtown

Annual Average (1990-2014) Vacancy %

NE

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199

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4

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CBD Only, Change of supply as a percentage of total supply

0%

2%

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6%

8%

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12%

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0%

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2%

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19

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Midtown as % Total SupplyConstru on Forecast Es mate as % Total SupplyUnder Constru on as % Total Supply

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2%

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6%

ABSORPTION RATES


Absorption AssumptionsThe development program proposed for the Midtown Legacy site includes office, residential, hotel and retail uses to be built in phases. The mix of uses proposed for this site has been created with an awareness of historic and projected absorption rates to ensure that the development program remains attractive to both commercial and residential tenants as well as investors.

Notably, the development proposed at the Midtown site for each product type does not require any anomalous market conditions for the newly created square footage to be absorbed fully over the course of the development program. Indeed, even when overlaying the total new development of the Midtown site on the forecasted pipeline, historic absorption in strong market conditions exceeds what the market plus Midtown could be expected to produce. This is true whether the analysis is of total change in supply or annual change in percentage of supply (see charts on page 72).

At a more granular level, recent newly developed areas such as the South Boston Waterfront have absorbed new residential and office square footage at a rate that is consistent with what could be expected to occur at the Midtown site on a percentage increase basis.

Absorption Rates Absorption data may be shown in a variety of ways. The first set of graphics on page 72 for each product type reflects the total change in supply on a square foot basis. As the charts show, historic absorption of new office and residential development (the grey bars) has fluctuated as is always the case in real estate cycles. Looking ahead, the chart

identifies the number of new square feet added to the development pipeline and when the pipeline becomes too remote the chart reverts to the long run average (the gold bars). On top of this forecast, the chart layers on the additional supply that will be created in each phase of the Midtown project. This is a very conservative approach considering that it assumes that Midtown will not displace any other development in the pipeline. What this projection demonstrates is that on a gross supply basis, the Midtown project does not require exceptionally strong market conditions to achieve the absorption rates needed to support the project financing. Instead, continued average absorption is sufficient while also understanding that there will be ebbs and flows in the market that at times will slow and at other times accelerate absorption.

Another way to examine absorption is on a percentage increase basis (the second set of graphics for each product type). This shows in even more compelling fashion that the new square footage developed at Midtown does not require extraordinary conditions in the market to achieve the required absorption. The gray bars of historic absorption percentages lead to a long run average that is sustainable even considering the added deliveries at Midtown. In fact, on a percentage basis, the market can often absorb in excess of 3% existing office or residential stock in

a given year. The plan for Midtown does not rely on those peaks for its absorption assumptions, but rather the more reasonable long run average for absorption.

74

Return on Investment

The financial model used the assumptions listed in this section to determine an internal rate of return on cost for the project, from the perspective of the investor/master developer. See pages 76-77 for the full financial model results. After consultation with potential investors, it was determined that an internal rate of return of approximately 12% would be desired to ensure adequate interest in the project. The model of the assumptions results in an internal rate of return in this range.

Parking

Because of the Plaza infrastructure development with foundations and structure, the parking on this project can be developed on a very cost-effective basis ($30,000 per space construction cost). Based on the multiple demand generators on this site (hotel, retail, office, and residential), it is anticipated that net project parking values in the $50,000 per space range may be achieved. Parking as a use integrated with the mixed-use development is a major value generator for the proposed asset.

RISK ANALYSIS

While the analysis described in this section is intentionally conservative, there is inherent risk when such a large potential investment is modeled based on numerous assumptions and over many years. The risks for this development plan are:

Proposals for the site from investors/master developers fall short of expectations due to:

- higher cost predictions for the platform, land, and/or relocations

- failure to deliver the rezoning and/or a tax agreement

- lower revenue predictions

Significant change in market conditions

Methods envisioned to mitigate these risks include:

Reduction of cost uncertainty through finalization of land agreements and relocation costs

A near-term procurement of the developer for the site to both validate the market assumptions and shift construction costs risks to a qualified developer

Comprehensive planning, peer review, and highly professional construction management

Surety bonds and insurance


The Boston 2024 team believes the proposed Midtown Legacy site represents one of the most interesting real estate investment opportunities in the United States. It is a unique opportunity to develop a large master plan environment with a quality sense of place that would be fully zoned with supporting infrastructure in one of the most dynamic urban environments in the country. It is anticipated that some of the largest national and international development and infrastructure firms, in association with financial institutions and investors with ample financial resources, will be highly interested in the Midtown Legacy project.

The financial projections included herein serve as a baseline for what we believe are reasonable return projections to evaluate the feasibility of this investment.

It is very possible that with market competition and the aggressive nature of capital looking to invest in this area that the investment return projected are conservative and, therefore, will enable the City of Boston to accrue additional benefits such as higher real estate taxes or devoted income streams to support infrastructure and/or workforce housing opportunities. A well-structured Request for Qualifications followed by a Request for Proposal process is envisioned to optimize interest and facilitate substantive input in finalizing the master plan opportunities associated with the site.

76

PRELIMINARY FINANCIAL PRO FORMA

PRO JEC TED PRO JEC T RE VENU ES ($) 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043

L A N D + R EL AT ED

VA LU E

TOTA L

1 ,632,30 0,0 0 0 - - 318,400,000 - - 320,300,000 - - 304,300,000 - - 234,400,000 - - 256,100,000 - - 95,000,000 - - 103,800,000 - - -

PA R K I N G VA LU E 33 4,70 0,0 0 0 - - 88,100,000 - - 96,300,000 - - 70,100,000 - - 38,300,000 - - 41,900,000 - - - - - - - - -

PL AT F O R M VA LU E 182,0 0 0,0 0 0 - - 57,100,000 - - 46,600,000 - - 47,600,000 - - 30,700,000 - - - - - - - - - - - -

PROJECT REVENUES 2,149,000,000 - - 463,600,000 - - 463,200,000 - - 422,000,000 - - 303,400,000 - - 298,000,000 - - 95,000,000 - - 103,800,000 - - -

P R O J E C T CO S T S 240,000,000 240,000,000 240,000,000 240,000,000 240,000,000 - - - - - - - - - - - - - - - - - -

P R O J E C T C A S H F LOW S (240,000,000)(240,000,000) 223,600,000(240,000,000)(240,000,000)463,200,000 - - 422,000,000 - - 303,400,000 - - 298,000,000 - - 95,000,000 - - 103,800,000 - - -

S P O N S O R E Q U I T Y M A X EQ U I T Y ** 736,400,000 * RETURN ON INVEST. IRR 12.2%EQUITY MULTIPLE

CALCULATION

2020-2024 (736,400,000) (NET)

M A X EQ U I T Y (Y R ) 2024 MULTIPLE 2.29X 2025-2040 1,685,400,000

R ECOV ER C A PI TA L 2028 EQUITY MULTIPLE 2.29X

PR O J EC T ED PR O J EC T PH A S I N G 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043

TOTA L

R E TA I L 7 50,0 0 0 - - 300,000 - - 300,000 - - 50,000 - - 50,000 - - 50,000 - - - - - - - - -

H OT EL 4 40,0 0 0 - - 240,000 - - - - - 200,000 - - - - - - - - - - - - - - -

R ES I D EN T I A L 3 ,9 0 0,0 0 0 - - 900,000 - - 500,000 - - 500,000 - - 500,000 - - 500,000 - - 500,000 - - 500,000 - - -

O FFI CE 2, 250,0 0 0 - - 250,000 - - 500,000 - - 500,000 - - 500,000 - - 500,000 - - - - - - - - -

INST. / NON-PROFIT 50 0,0 0 0 - - - - - 250,000 - - 250,000 - - - - - - - - - - - - - - -

O FFI CE (S TAT E) 50,0 0 0 - - 50,000 - - - - - - - - - - - - - - - - - - - - -

TOTA L S F 7,8 9 0,0 0 0 - - 1,740,000 - - 1,550,000 - - 1,500,000 - - 1,050,000 - - 1,050,000 - - 500,000 - - 500,000 - - -

PA R K I N G 5 ,0 0 0 - - 1,500 - - 1,500 - - 1,000 - - 500 - - 500 - - - - - - - - -

PR O J EC T ED L A N D & PL AT F O R M

VA LU ES ($/S F) 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043

R E TA I L 169 174 179 184 190 196 202 208 214 220 227 234 241 248 255 263 271 279 287 296 305 314 323 333

H OT EL 94 97 100 102 106 109 112 115 119 122 126 130 134 138 142 146 151 155 160 164 169 174 180 185

R ES I D EN T I A L 73 75 78 80 82 85 87 90 93 95 98 101 104 107 111 114 117 121 125 128 132 136 140 144

O FFI CE 73 75 78 80 82 85 87 90 93 95 98 101 104 107 111 114 117 121 125 128 132 136 140 144

I N S T I T U T I O N A L / N O N-PR O FI T 73 75 78 80 82 85 87 90 93 95 98 101 104 107 111 114 117 121 125 128 132 136 140 144

PA R K I N G ($/S PACE) 55,375 57,036 58,747 60,510 62,325 64,195 66,121 68,104 70,147 72,252 74,419 76,652 78,952 81,320 83,760 86,272 88,861 91,526 94,272 97,100 100,013 103,014 106,104 109,287

PL AT F O R M VA LU E 33.77 34.78 35.82 36.90 38.00 39.14 40.32 41.53 42.77 44.06 45.38 46.74 48.14 49.59 51.07 52.61 54.18 55.81 57.48 59.21 60.98 62.81 64.70 66.64

PR O J EC T ED TA X VA LU ES ($/S F) 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043

R E TA I L 12.38

boston2024 midtown development plan

Documents

city of boston

south boston

midtown legacy plan

city home

temporary olympic stadium

city vehicles

olympic stadiumimidtown

residents of boston