SouthGate Boston Update 05/02/17
No bidders for SouthGate Boston, 7.5 acres of state-owned land in Leather District
The Massachusetts Department of Transportation (MassDOT) did not receive any bids to acquire and develop its' 7.5-acre property in the Leather District as of the bid submission deadline last Friday. Real estate community members cited a high bid price, the challenges of decking over Interstate 93, the requirement to rebuild the existing steam plant & park and high affordable housing requirements as reasons why they did not bid.
MassDOT had sought a $167 million minimum bid of the 5.5-acre core parcel along Kneeland Street, with a third 2-acre parcel located between adjacent highway ramps connected to the Core Parcel by an access road offered for an additional $5 million minimum bid. All bids were required to include the core parcel. Per The Boston Globe, MassDOT may revise the bid and put a simplified version back out to bid. “MassDOT remains committed to working with the City of Boston and its private sector partner on this opportunity to redevelop an underutilized property in support of local economic growth,” agency spokesman Patrick Marvin told the Globe.