Suffolk Downs development “not stalled,” says HYM Developer O’Brien

Sunday Globe story sets off uneasiness over new high school funding

By Barbara Taormina

A story published in Sunday’s edition of The Boston Globe that put Suffolk Downs in the spotlight set off a citywide buzz in Revere. City Council President Anthony Cogliandro figures about 100 people sent him a copy of staff writer Andrew Brinker’s article about the residential construction industry and the troubles developers are facing. Brinker used Suffolk Downs as a symbol for the industry struggling with escalating material and labor costs as well as spiking interest rates.

Ward 1 Councillor Joanne McKenna said she received about 20 “told-you-so” emails from residents.

In the article, Brinker described Suffolk Downs as a “sea of open land,” without workers, trucks or noise. “Three years after Suffolk Downs won city approvals, there was supposed to be a lot more going on by now on the nearly four dozen other buildings that will eventually rise at the 161-acre property. But housing construction at the site is on hold…” wrote Brinker.

When asked if that was an accurate description of Suffolk Downs, HYM Cofounder and CEO Tom O’Brien said, “No, No, No, absolutely not, no way.” O’Brien said work has been ongoing and crews have been involved in infrastructure projects and final touches on the completed building where leases are now being signed.

O’Brien said The Globe story was a fair description of the industry, which, he added, is in recession. He said HYM is working on agreements with the trades and labor organizations to make sure the numbers align with commitments to investors. For Revere, the worry is that revenue from Suffolk Downs is tied to the new high school and the city’s ability to pay for it without increasing taxes or calling for a proposition 2½ override.

“Tax revenue plays a huge role in our ability to pay for the high school,” said Cogliandro. “But I don’t believe there’s anything to worry about.”

Councillor-at-Large Anthony Zambuto, no fan of the plan to build the new high school at Wonderland, said The Globe story was exactly what Tom O’Brien told the City Council when he met with them several weeks ago at the request of Councillor McKenna and Councillor-at-Large Michelle Kelley. The councillors wanted to quell rumors that the site was struggling.

O’Brien said that HYM has already spent $550 million on the site and nobody is walking away. “We feel good about where we are,” said O’Brien. “We are building the site as fast as we can.”

However, HYM is working in a tough economic climate. Councillor Kelley has raised concerns about the timing at Suffolk Downs and if there will be an impact on the city’s ability to meet its financial obligations. Kelley said she is relying on a 2023 presentation from city CFO Richard Viscay that showed progress at Suffolk Downs would be a key factor in the high school funding. “I don’t think anyone is saying Suffolk Downs will go belly up but one would assume a slowdown would have some impact on the high school,” said Kelley. “I think we need to have a discussion about it.”

But other councillors and Mayor Patrick Keefe feel confident that everything is on track. And they blame The Globe for being misleading. “The Globe story report was somewhat misleading and was even more interesting since they neglected to speak at all to the city or Mayor’s office regarding the upcoming developments. We all know there has been a development slowdown with rising supply costs and interest rate hikes, however, Revere has and continues to be a steady investment for not only the likes of HYM but many other development firms local and national,” wrote Keefe in a statement to The Advocate.

“While it’s not moving as fast as everyone anticipated six years ago, I am confident we will see the next phase moving in the late fall and subsequent phases going forward next spring,” added Keefe.

“As far as funding a new high school, we have never relied solely on one project in our community and we remain confident in building a great school while continuing to deliver top notch services to meet our entire community’s needs,” said Keefe

“The article said building was on hold indefinitely,” said McKenna, who spoke with O’Brien personally, “that’s not true. He told me he is working with everybody to get it built.”

McKenna said O’Brien will be back with the council on July 22 for another update on the project. She’s hoping for an announcement on who is lined up for the nine retail leases and fingers are crossed all over the city for Trader Joe’s. Cogliandro suggested the city is supposed to be getting some good news.

O’Brien said that cycles are common in the residential construction industry and HYM and its investors understand that challenge. But HYM is working steadily to keep Suffolk Downs and the new high school moving forward. “Suffolk Downs is not stalled. “Everything is moving forward. Nobody is standing still,” said O’Brien.

Keefe, a tireless cheerleader for Revere, said city leaders will continue to be vigilant about the progress of Suffolk Downs. “Much like the words in an article they are only as strong as the follow up and actions that follow, so stay tuned. I am confident Revere will continue to be a leader in many ways in the Greater Boston Area,” he said.