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Latest South Station Tower Delay Shows Ongoing Cost Spat With City, State And Hines

A long-awaited proposal to build a skyscraper above one of Boston’s biggest transit hubs has revealed a rare case of discord between the city and the state.

The Boston Planning & Development Agency’s zoning commission unanimously approved developer Hines’ plan for a 678-foot mixed-use tower over South Station in March 2017. At the time of the BPDA hearing, the developer said it planned to begin construction quickly pending approval from Massachusetts. More than a year later, the state has yet to give its blessing, and the project has needed a series of time extensions for Hines to keep its development rights. A Monday Massachusetts Bay Transit Authority meeting showed the state is still not ready for the developer to break ground. “We have some very serious concerns about the operation and maintenance costs going forward as well as the required capital expenses and the way those are going to be equitably split among the various stakeholders,” MBTA Fiscal and Management Control Board member (and former MBTA chief) Brian Shortsleeve said Monday during a hearing to grant Hines a project extension for South Station Tower. Massachusetts Department of Transportation Chief Strategy Officer Scott Bosworth presented to the FMCB regarding extending a development agreement with Hines, as the previous one was scheduled to expire on Monday. While the Houston-based developer had until the end of 2017 to reach an agreement with the state or forfeit its rights to build over South Station, both the city and the state have extended their separate agreements while negotiations have continued among the three parties.