10/06/2026
Wednesday, October 7th, 6-8 p.m. Virtual public meeting to discuss Mayor's proposed tax abatement for the developers of One Mystic Avenue.
Meeting Notice and link:
https://www.bostonplans.org/news-calendar/calendar/2026/10/07/discussion-of-121b-agreement-for-one-mystic-avenue
The payment in lieu of taxes (PILOT) proposal caps the taxes payable ob the land during the construction period and then the 227 rental units for 5 years after completion. The value of the tax abatement for the developers on the 227 rental units is approximately $8.1 million.
Bring your questions and concerns about the impact of this PILOT program on development in Boston and Charlestown to the meeting. Are there unintended consequences? How will it affect the City's budget issues and residential tax rates? Will all developers with approved but delayed projects ask for the same incentives?
The comment period is open. Portal on the One Mystic Ave project page or email your elected representatives.
Terms of proposed PILOT agreement:
https://bpda.app.box.com/s/zfz0xtro6lmzkodzh4zz5or1ogxj7bpi
Proposed PILOT Terms:
CONSTRUCTION PERIOD: pay current tax bill of $70,000 through 3 years of construction; no increases in rate. Estimated 3 years.
CERTIFICATE OF OCCUPANCY (COO) ISSUED:
➡️ 227 Rental Units: Developer/Owner pays a reduced tax payment under PILOT agreement for 5 years resulting in approximately $8.1 million in cumulative tax savings.*
⚡️Estimated annual tax without the abatement $1.7 million per year.
⚡️The PILOT payment::$70,000 plus a 2.5% annual increase for first 5 years the apartment are available for occupancy. (yr1 $71,750; yr2 $73,544; yr 3 $75,382; yr 4 $77,266; yr5 $79,199)
➡️ 181 for-sale condo units - exit PILOT agreement once COO is issued and pays regular tax
➡️ 3,462 s.f. retail space - exit PILOT agreement once COO is issued and pays regular tax
*Estimated $8,122,858. Assuming that tax rate and property values do not increase more than the city projects. (It would likely be greater as they estimate the annual tax at the end of the 5 year period will be $2 million a year.)
Here is the press release announcing the 4 proposed tax abatement properties around the city: https://www.boston.gov/news/mayor-michelle-wu-proposes-targeted-tax-abatements-jumpstart-construction-1400-new-homes