RIVERSIDE STATION LEASE APPROVED
Posted on February 12, 2009
The MBTA Board of Directors today voted to authorize an 85-year lease of a portion of the Green Line’s Riverside Station complex in Newton to BH Normandy Riverside LLC. The guaranteed annual rent for the leased premises will begin at $850,000 per year and will escalate 12 ½ % every five years.
Noting the T’s strong commitment to identify and maximize non-fare revenue sources, Transportation Secretary and MBTA Board Chairman James Aloisi, Jr. said total cash flow to the Authority over the term of the lease will exceed $217 million.
BH Normandy has proposed a mixed-use development containing 420,000 square feet of office space, 60,000 square feet of retail space, and 190 residential units.
"I am pleased to support this public-private partnership as another important opportunity to maximize our resources at a time when we are pursuing fundamental reform to deliver transportation services in the most efficient manner," said Secretary Aloisi.
“Served by trains and buses, Riverside Station is an ideal location for a Transit Oriented Development project such as this one,” said the MBTA General Manager. “This is an excellent example of smart growth.”
The MBTA General Manager said the MBTA’s ongoing operations at Riverside, which include the Green Line station and maintenance facility, an intercity bus depot, and a 960-space commuter parking lot, will be protected and preserved during the construction and development process.
The rental payments are based upon a permitted development of 600,000 square feet.
In addition to the considerable non-fare revenue and ridership that will be generated for the MBTA, the project will generate significant new tax revenue and jobs for the city of Newton. The project has the strong backing of the city and its mayor, David Cohen, who said he supports this “smart growth” effort.
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