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Project near TD Garden gets $7.8m in tax aid

Mixed-use complex to be constructed next to the Garden

Mayor Thomas M. Menino's administration said on Thursday it will give a $7.8 million tax break to developers of a towering complex of buildings planned for property in front of the TD Garden.

The mayor said in a statement that the tax deal is intended to help developers Boston Properties Inc. and Delaware North Cos. attract a Star Market grocery store to the property and build an underground parking garage with hundreds of spaces.

"Bringing Star Market to this neighborhood is one of the key community benefits of the Boston Garden redevelopment plan and is considered of immeasurable value to residents of the West End, Bulfinch Triangle, and the North End," Menino said.


The tax agreement, hammered out during months of negotiations between the parties, will provide $7.8 million in property tax relief to the project over 15 years. During that period, the development is expected to produce $32.2 million in new tax revenue for the city. The Menino administration said the property currently yields $350,000 annually as an undeveloped lot.

Boston Properties and Delaware North have proposed to build a $950 million complex of three buildings along Causeway Street. The tallest tower to the west would reach up to 600 feet, or roughly 60 stories, and contain nearly 500 residences. A building on the eastern section of the site would contain offices, and the one in the middle would be a 306-room hotel.

The towers would rise above a common stone base containing a mix of offices, stores, restaurants, a cinema complex, and a 45,000 square foot Star Market. The arena itself would expand by 40,000 square feet, and new walking paths would be built to connect rail passengers to North Station.

Shane Sampson, the president of Shaw's and Star Market, said in a statement there is "no better location for us to consider than the heart of Boston for our first new Star Market in four years. It will create new jobs and provide Bostonians with an unrivaled shopping experience."


The tax deal is one of several granted by the Menino administration in recent years to spur development downtown and in the South Boston Innovation District. Earlier this year, the administration gave a similar $7.8 million tax break to help attract a Roche Bros. supermarket to a towering redevelopment of the former Filene's property at Downtown Crossing.

Casey Ross can be reached at