By Paul Leighton
BEVERLY — The MBTA has abandoned its plan to include condominiums and stores as part of a long-awaited project near the train station and will now build a parking garage only.
A spokesman for the agency said yesterday that only one company responded to the MBTA's invitation to bid on the project, and that company did not meet the T's requirements.
Spokesman Joe Pesaturo said the MBTA does not have time to seek another round of bids because it is facing a deadline of December 2011 to create 1,000 new parking spaces in the state, so it will proceed immediately with a garage-only project.
"The MBTA's Design and Construction Department is now being directed to initiate a design-build process for the garage as soon as possible," Pesaturo said in an e-mail.
The MBTA's decision is a setback for the city and its hopes for a more expansive project, which was estimated at $25 million. The condominiums and stores that were to be part of the garage project were seen as a way to revitalize the area near the train station and generate tax revenue for the city.
Mayor Bill Scanlon, however, said he is still confident that the condominiums and stores will be built. He said the city will issue its own request for proposals for a company to build the condos and stores.
"This is a different way to get to the same endpoint, but I fully believe we will get to the same endpoint and get what we're looking for," Scanlon said. "If they said they weren't going to build the garage, I'd be upset. But they are going to build it, so I'm not upset."
The project as planned called for a private developer to build a 500-car parking garage, condominiums and retail space on land owned by the MBTA across from the Beverly train station. The MBTA would own the garage, and the private developer would lease the residential and retail space from the T.
Too much rent?
Scanlon said the MBTA "scared away" private developers by requiring that the high bidder pay the MBTA a minimum of $75,000 per year for 80 years, the equivalent of $6 million, to lease the space.
Pesaturo said developers "struggled" with the overall proposal due to the "unstable conditions in today's real estate and financial markets."
"There was, however, significant interest from contractors to build the garage component only," he said.
The MBTA had also required the city to contribute $500,000, or about 2 percent of the total $25 million cost. Scanlon said that figure was based on the city's ability to collect property taxes on the condos and shops in the project.
"That (the $500,000) will require further discussion," he said.
The MBTA is facing a December 2011 deadline to comply with a federal government requirement to build 1,000 new parking spaces for public transportation to offset the increased car traffic created by the Big Dig.
Scanlon said the MBTA will now design the garage, then seek a developer to build it. He said the city will work with the MBTA to make sure the garage design makes it possible to build condominiums and retail space at a later date. The condos and shops would wrap around two sides of the garage, which will be built on a block bordered by Rantoul and Pleasant streets, next to the Depot Square condominiums.
Scanlon said the city will eventually issue a request for a developer to build the condos and shops. He said the city will work with the MBTA on issuing that bid, but it will be more attractive to developers than the one sought by the MBTA.
"I see no reason why the private part of the project won't work," Scanlon said. "The whole idea was to have smart growth and transit-oriented development. Here we are going to have this magnet (the parking garage) for people to commute to this location. With time, Beverly is going to become more and more popular, because we're close to Boston and the (train) service is going to be great."
J&J Contractors Inc. of Lowell was the only company to submit a bid for the overall project, according to the MBTA. Pesaturo said the company's bid did not meet the requirements spelled out in the request for proposals.
Windover Construction, the Manchester-by-the-Sea company that sold the MBTA the land where the garage will be built, had expressed interest in becoming the developer but did not submit a bid. Windover President Lee Dellicker could not be reached for comment.
Staff writer Paul Leighton can be reached at 978-338-2675 or by e-mail at pleighton@salemnews.com.
