Town Council Rezones 30-Acre Center in Harvard Deal

Greg Watson, director of development and community planning for Watertown, tells GlobeSt.com that the zoning change took the form of an amendment to the existing Aresenal Overlay Development district that would allow educational or university use on the site. He notes that when the district was created "it wasn't even contemplated" that it would be used by an educational institution.

The town spent years and millions of dollars cleaning up the former military base in the hopes that a renovated center would bring in much-needed tax dollars. But after developing the property O'Neill Properties sold it to Harvard, which is exempt from paying property taxes if it occupies the site.

Local officials here were furious by the purchase and Harvard initially offered the town a complicated 20-year payment in lieu of taxes, which the town rejected, contending that the offer did not come close to what the town would lose were Harvard to occupy the site.

The deal that was finally struck between the town and Harvard is a combination of taxes and payment in lieu of taxes that will extend over a 52-year period. The initial rate of payment will be $3.8 million for 2002 and will increase by 3% each year until it will reach $17 million by 2054. In return, Watertown agreed to rezone the site.

Interestingly, Watson points out that the way state zoning law is worded, a town cannot prohibit educational use. The town's rezoning merely clarifies that implied consent, he says. But Watson adds that Harvard was "very intent" on having that clarification. This was one of the things in the memorandum of agreement to "make them feel more comfortable," he says.

The Arsenal is currently about 50% leased to a mix of retail and office space and Watson notes that the university has given no clear indication as to how it will be using the property. Mary Power, director of community affairs for Harvard tells GlobeSt.com, "Harvard University has not yet determined what academic/institutional uses will eventually be located at the Watertown Arsenal on the Charles property. Approximately 50% of the property is leased and we continue to consider a range of institutional uses."