Community Renewal Good Stories - Boston

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EZ Bonds Fund Major Development Projects in Boston

Boston, Massachusetts, EZ

What do a Best Western Hotel, a Hampton Inn and Suites, a large seafood distributor, a third-generation produce wholesaler, and a new 15,000-square-foot urban retail complex have in common? All have used bonds to strengthen enterprise and bring jobs to the city of Boston.

In just its first 3 years, the Boston EZ used its designation and financial savvy to obtain and award a combined $61.4 million in bond financing. Boston's EZ is a large (5.8 square miles) and diverse area, encompassing nearly 60,000 residents within the communities of Downtown, Seaport District, Chinatown, Dorchester, Jamaica Plain, Mission Hill, Roxbury, South Boston, and South End.

In early 2001 the Best Western Roundhouse Suites Hotel in Boston's South End became the first hotel to open in a Northeastern EZ. Located in a long-vacant historic structure, the hotel has been a catalyst for the revitalization of this section of the EZ. The $10 million Best Western utilized $8 million in EZ bonds, providing approximately 24 full-time jobs, most of which are held by city residents. Drawing many workers from the EZ itself, Best Western was able to claim approximately $20,000 in EZ Employment Wage Credits in 2001.

The $140-million Crosstown Center, a retail, office, and hotel complex located at a central intersection in the Roxbury neighborhood, received $43.42 million in EZ bonds in 2002. These funds support Phase I, including a 190-room Hampton Inn and Suites, more than 15,000 square feet of ground-level retail space, and a parking structure. Phase II includes offices and additional parking. When complete, the Crosstown Center will anchor as many as 1,500 permanent jobs. It is expected that EZ residents will hold many of these jobs.

Pilot Seafood Distribution opened in the Seaport District in April 2000. This 65,000- square-foot seafood processing, packaging, and distribution center helps to support Boston's $650 million seafood industry. The project used $10 million in EZ bonds, all of which were guaranteed by the Commonwealth of Massachusetts' Port Authority.

Using $2.8 million in EZ bonds, Katsiroubas Brothers, a third-generation Boston produce wholesaler, renovated the company's 10,550-square-foot building to meet Federal Hazard Analysis and Critical Control Point (HACPP) regulations regarding food processing and handling. The work included adding 16,800 square feet and 7 new loading docks, combining facilities, installing additional freezer space, and creating a value-added preparation area.

Thanks to the upgraded facilities, the company has been able to recapture sales to hotels and achieve the best HACCP and USDA ratings possible. Started in 1916, Katsiroubas Brothers is one of the largest produce companies in Boston with 27 trucks and more than $22 million in sales. More than 16 percent of the workforce comes from work release and halfway house programs.

Collaboration with Boston's Industrial Development Financing Authority helped facilitate these transactions.

For more information on the programs of the Boston EZ, please call Shirley Carrington, Boston Connects, Inc., which administers the Boston EZ, at (617) 541-2670, or visit the EZ's Web site at www.bostonez.org.