Harvard University is on the brink of significantly benefiting from infrastructure developments in Boston.
A large-scale project, mainly funded by federal and state dollars, is set to increase the value of land owned by Harvard, the New York Post reported.
The I-90 Allston Multimodal Project, an extensive $1.9 billion initiative, aims to redevelop a decaying sector of the Massachusetts Turnpike. By reconstructing this area, the project will not only enhance transit connections but also release valuable land for development predominantly owned by Harvard University.
Harvard will contribute $90 million to the endeavor, a fraction compared to its $53 billion endowment. The institution has substantial ownership, holding approximately one-third of the land in the affected neighborhood.
In March, under the authority of US Department of Transportation Secretary Pete Buttigieg, the federal government announced a grant of $335 million for the project. This significant financial boost underscores its importance in modernizing Boston's infrastructure. Boston University also joins Harvard in contributing to the project, with a smaller sum of $10 million.
The generous support from various sources emphasizes the communal aspect of the improvements. Both Massachusetts taxpayers and Boston locals will fund substantial portions of the project's cost, contributing $920 million and $200 million respectively. Revenue for the local contributions will stem in part from toll revenues and a newly implemented millionaire’s tax, highlighting a broad-based funding approach.
This is Meredith Weenick, Harvard's Executive Vice President on their involvement:
"Harvard is pleased to have the opportunity to support MassDOT’s application by both memorializing future-looking commitments and outlining the foundational steps undertaken by the University to support this Project over the last two decades," said Meredith Weenick, Harvard’s executive vice president.
This initiative is not new on Harvard’s agenda; the university began buying up land parcels two decades ago, foreseeing development opportunities. The project, expected to take between six and ten years to complete, will undoubtedly enhance the value of Harvard's substantial real estate holdings in Allston. This optimizes an advantageous scenario for the university amidst these infrastructure upgrades.
An analyst stated that the real estate development surrounding the project will become highly lucrative for Harvard once it realizes the infrastructure. The proximity of the planned developments to this newly free land creates an advantageous prospect for increasing land value.
"The Commonwealth’s taxpayers have already been generous to Harvard where this property is concerned," an assessor commented, noting the public contributions to this initiative. The project itself will include the construction of a new West Station, aimed at modernizing and improving safety in the Allston neighborhood.
According to a spokesperson from the US DOT, "This project aims to modernize and improve the safety of Boston’s Allston neighborhood and is being led by the Massachusetts Department of Transportation, which is in charge of putting together the project’s financing."
"This is just one of 66,000 locally-led infrastructure projects underway so far across every state and community in the country thanks to $568 billion in funding from the Bipartisan Infrastructure Law," the US DOT spokesperson added.
Secretary Pete Buttigieg emphasized the historic nature of current infrastructural endeavors:
"We’re in the middle of an infrastructure decade, unlike anything this country has seen since the time of Eisenhower and the Interstate Highway System. The 2020s will be viewed as a turning point that ushered in the improvements that will sustain our 21st and even 22nd-century economy," he said.
In conclusion, the significant federal and state investments into Boston's infrastructure demonstrate a joint effort to revamp key urban areas, with Harvard University poised to benefit materially from the project’s completion. This development not only underlines the importance of collaboration between educational institutions and government but also forecasts significant boosts in real estate values, enhancing local economic prospects.
