Romney says cost of office rental in Hancock Tower is $58,350
Governor Mitt Romney is paying $58,350 annually from his personal funds to rent space in one of Boston's most prestigious office settings from a firm that two years ago received a $7 million tax break from his administration.
After initially rejecting a request for information about the rental cost, Romney last night disclosed the one-year lease price for the 1,354 square feet he is subletting from
A spokesman said the governor released the information to make clear that he is paying a fair rent. He also said that Romney was not involved in the decision on the company's tax break or in the state's regulatory oversight of the firm.
''By making the rent public, the governor is going beyond what is required by law to demonstrate that the price is fair, based on the price of leases," said Eric Fehrnstrom, Romney's director of communications.
The disclosure of the rental price for space on the 59th floor of the John Hancock Tower was made after the Democratic Party called on the governor to release the information and Inspector General Gregory W. Sullivan reiterated his strong criticism of the tax break that the Romney administration approved for Manulife in 2003.
''It is critical that the public know whether Romney is receiving an inappropriate financial break on his rent," said Philip W. Johnston, chairman of the Massachusetts Democratic Party. ''The entire arrangement looks quite inappropriate. I hope the governor rethinks his deal with Manulife."
The Globe reported yesterday that Romney signed a sublease agreement with Manulife on Sept. 1 for the office, where aides say he will conduct personal family and political business. The rent for an office in one of Boston's premier buildings normally runs over $50 a square foot, real estate specialists say. The office suite offers a spectacular view of the region.
Fehrnstrom said the governor has a one-year lease, but that he is a tenant ''at will" and could be asked to leave at any point because the landlord is actively marketing the space.
On Wednesday, Fehrnstrom rejected a Globe request for the lease details, including the price, but he noted that the at-will agreement, which has a 30-day termination clause, is not what the average tenant demands. It also restricts the governor from making modifications to the space. Some real estate specialists said the office space could cost more than $75,000 a year, if it were the usual market rate. Romney is using personal funds to pay for the rent.
The governor's Executive Office of Economic Affairs approved the Manulife tax deal as part of the Economic Development Incentive Program.
''The Manulife tax break was one of the egregious abuses of this program in its history," said Sullivan. ''I have called for the money to be returned."
A spokesman for Manulife did not return a call from the Globe seeking comment.
Romney's economic aides approved the tax credit to Manulife for relocating its office from the Hancock Tower to the Seaport district in South Boston. The economic incentive program is designed to encourage companies to locate in designated ''blighted" or ''distressed" areas.
But Sullivan, who first raised the issue of the tax break in a report last year, has noted that the Seaport district, often described as prime waterfront property, was not a distressed area. He also said that the company had already opened its headquarters there two months before receiving the credit. 