The city of Boston is creating a $40 million pool to fund bridge loans for developers whose projects have been stalled by the credit crunch — including the tower at the former Filene’s site in Downtown Crossing, Mayor Thomas M. Menino said Tuesday morning.
The $40 million is coming from the federal Department of Housing and Urban Development, and is called “Boston Invests”.
Menino stressed that the funds, which will be available in about four months, is only for projects that are ready for ground-breaking.
“It can’t be somebody’s vision for doing something great,” he said.
John Hynes, of Gale International, developer of One Franklin, said the plan is a great initiative. “It’s not going to solve everything, but it’s a start in the right direction,” Hynes said, following the mayor’s talk.
In addition to the proposal for One Franklin St., in Downtown Crossing, other projects that could use the money to leverage bridge loans include stalled university buildings, Menino said.
“What we’re doing is speculating. Just like with the hotel issue, where we were able to get four hotels,” he told a Chamber of Commerce forum, referring to a loan pool the city created to advance stalled hotel projects after the Sept. 11 terrorist attacks.
Source: Boston Business Journal