Parks

Garage Below Supports Park Above

An Urban Parks Institute Success Story
Boston, MA



"Park above, park below" is the slogan at Boston's Post Office Square, a 1.7 acre park that sits atop a below-ground parking garage. A public-private partnership financed the design and construction of the park and garage, while fees from the garage are targeted to repay capital costs and ongoing maintenance.

Project Background

The development of the Park at Post Office Square began in the early 1980's when the real estate market was booming in downtown Boston and development space was at a premium. In the heart of the city's revitalized financial district stood a 3-story concrete parking garage. With construction and renovation going on all over the downtown area, many buildings in the financial district turned their backs on this unsightly concrete structure.

One developer, Norman Leventhal, was renovating a building across the street from the parking facility and promoted the idea that the area would be more attractive without the garage. Leventhal founded Friends of Post Office Square, a non-profit group of businesses located in or near the site, with the intention of buying the garage, and turning it into a park. However, the ownership of the old garage and the cost of the project made the idea of removing the garage to build a park a considerable obstacle. Friends of Post Office Square consulted with the Parks Department and the Boston Greenspace Alliance, a consortium of open space advocates, and decided to build a parking structure underground and a park above.

With the strong support of the Boston Redevelopment Authority, Friends of Post Office Square secured the development rights from the City of Boston. The parking garage opened in 1990 and the park opened in 1992.



Funding: The $80 million construction of the park and garage was financed through a $50 million loan from Bank of New England (now Fleet Bank). To raise capital funds for the garage, Friends of Post Office Square offered stock in the parking structure. Local businesses were sold individual shares for $65,000. Along with the right to a monthly parking space, the purchase arrangement with Friends of Post Office Square included a cumulative 8% dividend to be paid to shareholders when debt relief is complete. The entire lot of 450 preferred shares was sold in just six weeks, raising $29.25 million.

After the debt has been paid, the partnership has arranged for the city of Boston to get all the profits over operating costs of the garage, which is operated by Standard Parking Corp. These profits are slated to be allocated to other neighborhood parks as well as to the city's general fund.

The Milk Street Cafe, owned by a nearby restaurant with the same name, operates within the park, and pays rent to the group. Garage attendants patrol the park and provide general maintenance. Friends of Post Office Square pays for a private park ranger in the summer.

Impacts: The park and garage design have received over 20 planning and architecture awards, and created open space in a very dense area of the city. During the warm months the park is host to lunchtime jazz concerts. Before the park's creation, the area was a "ghost-town" after working hours. Now, the park is well lit at night, and the garage is open 24 hours; the lighting and activity makes people feel safer.

Because the parking garage is popular there is a waiting list to rent a reserved space, even though parking prices in Boston are some of the most expensive in the country. The present market rate for a space is approximately $310 per month.

The garage generates approximately $8 million a year, which covers debt service, taxes, and the $225,000 operating costs for the park above. Friends of Post Office Square, Inc. is current on its $48.5 million mortgage and making its tax payments. The project has not reached its financial break-even point as quickly as anticipated, due in part to fluctuations in real estate prices, however, revenue per parking space (one measure the group uses to assess their future costs) has grown steadily through the 1990's, and the Friends of Post Office Square believes future financial stability is assured.

Lessons Learned: The parking garage was one of the most expensive ever built. Building the garage cost approximately $34,000 per space, which is higher than average, even for Boston. The high cost was due in part to the deep excavation, the extra supports needed for the heavy soil above, and the difficulties of buying out the previous owner. The park and the garage were also spared no amenities and are full of design flourishes, like a fountain, sculpture, a colonnade, polished granite walls and landscaped borders. The parking facility includes a shoeshine station, clean restrooms, a car wash and an automated checkout system for drivers (The Wall Street Journal called it "Garage Mahal" in a 1994 article). Despite the high costs, both to builders and to users, the park is a major focus for the business district, satisfying a need for public space and a need for parking.

Major obstacles were overcome with perseverance and a bit of cunning. Wresting the site from the current lessee (negotiations took 5 years), and then raising $80 million to finance the project required the stubborn will and deep pockets of the downtown community, many of whom were enticed into the offering by the lure of an available parking space, and the hope that their property would be more attractive due to the presence of the park.

Contact

Mary Dahl, Friends of Post Office Square, 617-423-1500

(Spring 1997)