The Massachusetts Turnpike Authority (MTA) waived the Feb. 15 deadline for Columbus Center developers to secure funding for the proposed high-rise luxury hotel/condominium building over the Massachusetts Turnpike.
"Yes, basically there’s no deadline as of now," Mac Daniel, MTA spokesman, confirmed Friday, though the MTA maintains the right to terminate the project at any time.
The original Jan. 15 deadline MTA officials gave Columbus Center developers to secure funding was extended by 30 days after the MTA gave California Urban Investment Partners Winn Columbus Center, LLC (CUIP-WINN) an ultimatum on Nov. 20 to either borrow approximately the $500 million or risk having the project halted.
Anglo Irish Bank withdrew its funding from the project because Columbus Center never met the borrowing requirements set by the bank in a 19-page letter dated May 10, 2006. The letter was included in developers preliminary MORE Grant Application filed last summer. It’s unclear if the bank loan’s closing date was ever extended.
On Friday, Daniel said that MTA Chief Real Estate Development Officer Steve Hiens informed him of the development the previous day.
"We took the date out now and are still in talks," Daniel said. "We still have the option of pulling the plug on the deal when we feel the need to do so. Right now we see no need. We are working constructively on issues that need to be solved. It’s in negotiations, we wouldn’t reveal what those issues would be."
Constituent service director for Speaker Salvatore F. DiMasi, Aaron Michlewitz, said it’s unfortunate that MTA isn’t holding Columbus Center to the same standards as other projects.
"While we have not been against the project," he said, "we have always been against public subsidies for the project and we would expect the Turnpike to hold the Columbus Center to the same standards as every other project and unfortunately that doesn’t seem to be the case here."
CUIP-WINN spokesman Alan Eisner didn’t return calls foer this story Friday but he told South End News two months ago that developers are working on a long-term capital plan with other investment partners, including California Public Employees Retirement System and MacFarlane Urban Realty Co.
"We had asked for a 30 day extension to the Jan. 15 deadline," Eisner said at the time. "For the same reason we asked for the original one. We’re working out the details of our lease agreement. We’re very hopeful and feel we’re progressing forward."
When asked if waiving the deadline meant that the MTA was confident developers could secure funding, Daniel said, "Yes, you could probably say that. We are still negotiating in good faith."
When asked if anything changed between Jan. 15 and Feb. 15 that made the MTA believe funding could be secured, Daniel said "I’m not privileged to the specifics to the negotiations so I can’t answer that question."
Justin Rice can be reached at jrice@southendnews.com
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