Thank you for sharing!

Your article was successfully shared with the contacts you provided.

BOSTON-A representative from the National Association of Industrial and Office Properties will testify before the Joint Committee on Housing and Urban Development in support of increasing the city’s linkage fees and decreasing the payout period in the city’s neighborhoods.

The linkage fees are payments developers of large projects provide to the city to fund affordable-housing and job-training programs. David Begelfer, CEO of NAIOP, a trade organization that represents companies involved with the development, investment, management and financing of commercial properties, as well as those companies providing services to this industry, tells GlobeSt.com that his organization believes that housing is a crucial issue for the success of his constituents’ success. “Housing fuels the growth of business in Boston,” he says. “It goes hand in hand with economic development and it is in our best interest.” Begelfer points out that the increase essentially represents where the linkage fees would be now without the recession of the early 1990s, when it was decided to hold off on an increase.

As part of the linkage program, the downtown area’s payout period was seven years while the payout period for city neighborhoods went up to 12 years. This new bill would reduce the payout period to seven years for all areas of the city, which notes Begelfer, will bring areas, like the waterfront in South Boston into the mainstream and provide them with additional funding more quickly.

Begelfer insists that the increased linkage fees will not discourage development in this city. He points out that there is an exemption on the fees for the first 100,000-sf of space in a development and the “demand for space and impediments to growth here make space valuable. Obviously, the city is different than the suburbs, but there is an even playing field here.”

Begelfer points out that a good portion of the commercial real estate community here supports this legislation. “There is a strong consensus to go along with this from real estate development leaders,” he says. “That doesn’t happen often.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. APARTMENTS Fall 2021Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.