The two sides had previously agreed to a rent credit to help fund the extra costs of building a deck over the turnpike to support Fenway Center’s buildings. But Rosenthal’s investment partner has sought to renegotiate some terms of that deal.
The person familiar with the matter said Rosenthal’s partner wants the state to subtract the cost of building the deck from the overall value of the property, which includes several acres along the turnpike.
The state wants lease payments to be based on full market value for the land parcels — a proposal the developers believe would render Fenway Center financially infeasible. The parties have not reached a deal despite weeks of negotiations, leaving Rosenthal at risk of losing his funding unless the matter is resolved soon.
In e-mailed responses to questions about its development policies, Roy wrote that the transportation department recognizes some air rights projects may need state financial support to be feasible. But “in general,” she wrote. “MassDOT will not subsidize projects directly and expects commercial air rights projects to be financially self-supporting.”
Casey Ross can be reached at email@example.com.