Medical Properties Trust Update 01/16/20

$1 Billion Development Atop Back Bay Station Wins Key Approval Following Shadow Compromise

After reaching a compromise with Old South Church regarding shadows cast on the historic building, Boston Properties has received a key city approval for the 1.37-million-square-foot Back Bay/South End Gateway mixed-use development atop Back Bay Station, bringing the $1 billion project one step closer to reality. Boston Properties has agreed to pay $3 million towards a preservation fund for Old South Church, Trinity Church and other surrounding historic buildings, as well as $3 million into the City of Boston’s affordable housing fund. The church had originally sought a $19 million settlement from Boston Properties in light of concerns that shadows from the development would darken the church and exacerbate water damage.

The settlement between Boston Properties and Old South Church came on the eve of the Boston Planning & Development Agency (BPDA)’s vote to approve the project, which passed with unanimous approval. The Back Bay/South End Gateway project will now go before the City of Boston’s Zoning Board of Appeals (ZBA) for review; following ZBA approval, Boston Properties will be able to proceed with construction of the project. The Back Bay/South End Gateway project will feature approximately 582,500 square feet of office space, approximately 61,800 square feet of retail space and approximately 600 residential units across three new towers and a one-level vertical expansion of Back Bay Station. The existing station will also be modernized as part of the project, and an additional 90 affordable housing units will be developed off site.

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