BRA and Boston Red Sox Reach Agreement for Yawkey Way
Sep 20, 2013
$7.3 million agreement to have broad economic spin-off effects in neighborhood, entire region
The Boston Redevelopment Authority (BRA) announced today that it has reached an agreement with the Boston Red Sox that allows the continued use of property rights in Yawkey Way, and air rights above Lansdowne Street for the Green Monster seats. The BRA will present the agreement to its Board of Directors for approval at its regularly scheduled meeting on Thursday, September 26, 2013. The current agreement with the BRA, initiated in 2003, was set to expire in at the end of the baseball season.
“At the end of this season as the Red Sox wrap up another winning year, it is great to know that they will continue to be a partner in growing our economy. They are a tremendous economic catalyst – since 2003, they have paid more than $28 million in taxes to the City of Boston, and generated nearly $2 billion in visitor spending. We can only imagine the impact this will have as our partnership continues,” said Mayor Thomas M. Menino.
“The Boston Red Sox investment has spurred $2.2 billion of new private non-institutional investment in the Fenway neighborhood since 2002 and the BRA projects this trend to continue as their commitment to the Fenway Park improvements are now secure,” said BRA Director Peter Meade.
The new agreement will generate $7.34 million in revenue, and will have positive economic impacts for as long as major league baseball is played at Fenway Park. The agreement builds on the successful experiment begun in 2002 to determine if the Red Sox use of Yawkey Way on game days, and the construction of new seating above the famed Green Monster in the left field, would be economically beneficial to the City of Boston and help the Red Sox remain in historic Fenway Park. By every measure, the effort has been a success.
According to the agreement, the Red Sox will pay:
- $4,873,657 for 17,300 square feet of Yawkey Way only on days when there is a city-licensed event at Fenway Park, approximately 120 days a year.
- $2,466,720 for the air and subterranean rights on Lansdowne Street for the Green Monster seats.
This agreement also allows for the creation of a new street in the Fenway – Richard B.Ross Way. The BRA has acquired a 6,500 square foot easement in property from the Red Sox for $2,667,000. The street will provide a new link between Boylston and Van Ness Streets, and eventually to Brookline Avenue. This public way is part of the long-term Fenway neighborhood master plan and it will enhance the re-development opportunities in the neighborhood. The agreement will dedicate $100,000 a year for 10 years, or $1 million to Fenway neighborhood beautification projects.
The Boston Red Sox will continue to pay property taxes to the City of Boston that are tied to their revenue income at the ballpark. Over the past 10 years $28 million in taxes have been delivered to the taxpayers. Today's announcement will allow the city to sustain the current level of taxes paid by the Red Sox to our city and provide the city with greater opportunity for increased taxes generated from the success of these amenities. This provides a unique opportunity for the city - if the team does well financially, so does the taxpayer.