New agreement reached on River's Edge complex

A 30-acre tract along the Malden River would be transformed into housing, offices, and a public park under a new agreement covering the first phase of the River's Edge project.

The Mystic Valley Development Commission, which is overseeing River's Edge and its designated developer, New York-based Preotle, Lane & Associates, signed the pact Nov. 17.

Officials from Everett, Malden, and Medford said the agreement is one of several steps that mark a milestone in the 11-year-old redevelopment venture, paving the way for the first major construction to begin next year.

''All the different pieces are now coming together," said Medford Mayor Michael J. McGlynn, who chairs the commission. Mayors Richard C. Howard of Malden and David Ragucci of Everett are also members.

The three cities began collaborating in 1994 to revitalize 200 acres of industrial land on both sides of the river. The original plan was to create TeleCom City, a center of collaboration between industry, government, and the academic world in the field of telecommunications.

Last year, the commission shifted the focus of the project to encompass a broader array of high-tech businesses, plus housing. The change was prompted by the downturn in telecommunications and the Romney administration's request that housing be included in the project. The development's name was changed to reflect the new focus and to draw attention to the river, the cleanup of which after years of industrial use is an important facet of the project. The Army Corps of Engineers is finalizing a study on the condition of the river and ways to clean it up.

The new agreement was needed because plans for the project's first phase have changed since the original agreement between the developer and the commission in 2000.

The major change is the addition of plans for about 200 housing units, 15 percent of which would be affordably priced. The new agreement also takes into account Tufts University's ongoing construction of a boathouse for its rowing team on land it is leasing within the development's future park site.

Left intact in the first phase, virtually all of which would be built in Medford, is the development of about 440,000 square feet of office space and the construction of the 7.7-acre park. Preotle's overall investment in the first phase is estimated at $150 million.

The changes require a revision of the project's master plan. The Medford City Council is scheduled to consider the revision on Dec. 13, and the Malden City Council on Dec. 20. No date has been set for review by Everett's Common Council and Board of Aldermen.

Under the new agreement, Preotle will acquire the site for about $14 million, roughly $5 million more than the firm would have paid under the old agreement. ''It puts us in a better financial position, by including the residential component," Howard said.

The added $5 million reflects both a higher purchase price and new costs that Preotle has agreed to absorb, including removal of an old barge that is buried at the edge of the river.

In addition to the $14 million, phase one is expected to provide about $1.5 million in annual tax revenue for the three cities when fully built and 1,500 to 2,000 construction and permanent jobs. Formerly, the site generated about $200,000 from former businesses.

''It's probably taken longer than anyone would have liked to get to where we are now, but we're now here," said John Preotle, of Preotle, Lane & Associates.

Within the last 45 days, aided by state and federal funds, the commission acquired the last of 27 privately owned parcels that comprise the 30 acres included in phase one. All but three of the structures on the site have been razed.

The state earlier this year completed the $17 million reconstruction of Corporation Way in Medford and Commercial Street in Malden, roads that serve River's Edge.

If all goes well, Preotle said his firm hopes to begin construction of either the housing or office space next year. Market conditions will determine which gets built first, and in the case of the housing, how many units. The agreement states Preotle will attempt to develop the housing as condos but can build rental apartments based on market conditions.

Howard said when the state first pushed housing, the three cities voiced concern about saturation of the local market. ''But from all indicators, it seems that the [housing] market is still strong," he said.