I've been fairly preoccupied with life lately, so this story (and many others) nearly flew right under my radar, but not before I had a chance to catch the original posting on the Boston subreddit. In short, the MBTA is one step closer to making corporate-sponsored station names a reality in a last ditch and fairly ineffective attempt to grasp at straws for new revenue. No doubt the MBTA is having to continue pursuing this as a means of proving to state leaders that they are doing what they can to resolve the internal financial problems at the T to the best of their ability.
Either way, it turns out that the study by IMG Worldwide found a market for station naming rights and would bring in a potential $18.4 million a year to sell rights to 11 key stations throughout the system, leading to a total $147 million over eight years, according to the MBTA report to MassDOT. According to Mark Boyle, Assistant General Manager for Development and the representative of the MBTA who briefed MassDOT on the proposal, this could be good to go by mid-summer as sponsors line up to have their brands share sign space with historic Boston subway station names.
The unfortunate reality is that this tactic has historically failed to bring in the revenues promised here in Boston and elsewhere. It is a considerably less solid deal with corporations than encouraging developers to build on MBTA property and invite corporations to lease space within those well-situated, innercity developments to bring long-term revenue in as they have been doing for decades in Japan.
This is yet another short-term, short-sighted fix. In the 8 years these contracts would run, a well-designed contract that gives the MBTA a way out of deals that go sour and holds developers accountable for delays could build thousands of housing units (hopefully less stratified than what we already have and actually addresses the glaring housing issues plaguing Boston) and square feet of commercial office and retail space over, in, and around stations. This would further ensure sustained ridership levels, possibly increase non-rush hour ridership, and provide the sustained funds from real estate leasing to maintain and even improve our ailing system.
At the same time ridership growth threatens to overload the system in coming decades, it would be beneficial for the MBTA, Boston, and Commonwealth to create mixed-use neighbourhoods around transit (not at the far flung suburban stations) where people can walk to work and alleviate increasing uni-directional rush-hour traffic volume while still providing new revenue for the T through value capture policies.
There are precedents for doing that here in the US already and many municipalities are adopting these long-term plans to provide additional funds for further improvements from the initial investments (e.g. new light rail lines, subway extensions).
Most importantly, transit-accessible office space is far more valuable to any of these potential investors than the relative pennies they're throwing at the MBTA to slap their name on a station. We have the potential to create new neighbourhoods, strengthen existing ones, provide housing for thousands, and bring back tax revenue from companies that have long since fled Boston proper because of its lack of accessible, modern, and affordable office space. Boston is low on the list of world-class cities playing host to Fortune 500 companies, Liberty Mutual being the only company to call Boston home. Two others, Raytheon and TJX, apparel and home fashion megachain, sit just outside of Boston in outlying suburban office parks accessible by I-95/Route 128, but hardly walkable from any commuter rail station.
While we deliberate and the MBTA/MassDOT continues to insist on calling suburban islands of development around massive commuter parking garages at its fringe stations is 'transit-oriented development', the Boston Metro region will continue to flounder as residents struggle to commute to work in suburban office parks only accessible by car as traffic increases and gas prices soar. Now more than ever does transit matter.