Air rights lease over Mass Pike to be cancelled for non-performance

Massachusetts state officials are moving to negate a landmark air rights lease to Winn developers and pension fund Calpers for default. The developers were granted a 99 lease on the air rights over the Turnpike in the heart of Boston for what is known as Columbus Center, a $625m 1.4m ft2 (130k m2) mix of residential, office and hotel buildings to be built on a deck over the Turnpike.

Started in 1996 the project relied on a mindbogglingly complex mix of public and private funding that was the source of continuous contention and uncertainty.

In 14 years the project was the subject of much hype, but no significant construction.

Somehow they managed to design a deck over the Turnpike for a couple of city blocks which alone would cost $200m.  There was some clearance of buildings on the side to make way for construction, but it never started.

The Boston Globe reports that the state department of transportation which took over the project from the now defunct Massachusetts Turnpike Authority has formally notified the developers they are in default, the first step to canceling the lease and regaining title.

TOLLROADSnews 2010-02-10