It was announced today that the Liberty Mutual insurance company has proposed building a 25-30 story building in the Back Bay neighborhood of Boston. (Again, it’s as much the South End or Bay Village as the Back Bay, seeing as it’s at the corners of Berkeley Street and Columbus Ave …)
While there is much to like about the project, I am very troubled by the way in which it will be financed.
According to a press release on website of the Boston Redevelopment Authority, the company, in tandem with the city, will apply for Tax Increment Financing (TIF) through the Massachusetts Economic Assistance Coordinating Council as a way to reduce its future Boston property tax bills by as much as $16 million.
TIF funds are often used to stimulate investment in undeserved areas by private developers. The idea is to use the money as an incentive to invest in areas that companies would otherwise avoid.
Here are sections from the Economic Opportunity Area application, one of two forms required by the Commonwealth of Massachusetts when applying for the exemptions.
Does this sound like the Back Bay to you? (Click on images to enlarge.)
Related posts:
- Liberty Mutual plans throws wrench into community planning initiative
- Boston Redevelopment Authority approves multiple projects and developments
- Boston real estate roundup for Tuesday, March 23, 2010
- Mayor Menino to Roth: I’m mad at you
- Liberty Mutual Back Bay expansion will bring new building, less tax revenue
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