By Greg Ryan
The potential soccer stadium in Everett may be getting lots of attention, but there’s another real estate-related provision in the state economic development bill that would have a far broader effect on the industry.
The legislation, unveiled on Tuesday, extends approvals for building and other permits by two years statewide. The blanket extension would give developers more time to land financing for their projects without needing to pursue re-approvals.
Construction starts have fallen dramatically in Greater Boston the past two years as developers have encountered higher borrowing and building costs and greater difficulty finding loans. Should their permits expire while they are seeking financing, they would need to spend time and money to renew them, and it’s not guaranteed: A planning board’s membership may have changed, or new neighborhood opposition to a project may crop up.
“It just gives them a lifeline to allow them to go forward without having to go back to the drawing board on permitting,” said Greg Sampson, who leads the law firm Sullivan’s permitting and land use practice.
That additional time is especially valuable now that the market is showing signs of life, he added. The Federal Reserve is poised to cut interest rates for the third time this year in December.
With limited exceptions, the extension applies to state and municipal permits, including environmental permits, that were in effect in 2023 and 2024.
The commercial real estate group NAIOP Massachusetts has pushed for the permitting extension, as well as a provision that provides a buffer to developers with a special permit or a site-plan approval to build a project before the are subject to zoning changes. That measure is also included in the bill.
Legislators unveiled the compromise economic development bill months after the formal session ended. They are expected to call a special session to pass the measure in the coming days. Gov. Maura Healey would then need to sign the bill.