Should Newton's Washington Place Development Have A Bank?

NEWTON, MA — Should there be a bank at the Washington Place development project near the corner of Washington and Walnut? That's the question up for debate Monday night at the city council meeting.

After hearing the pros and cons on the question, the Land Use Committee approved Mark Development's request to change a special permit to allow just that last week. The special permit originally included language banning a bank on the property, in an effort to ensure the district's vitality. Banks tend to close early and councilors were concerned that it wouldn't help ensure a thriving business district.

But at last week's Land Use Committee meeting, Mark Development officials, offered a proposal to sweeten their ask: They said they would commit 25 percent — or 10,000 square feet — of the project’s commercial space to mom and pop style, non national chain stores or restaurants.

Having a bank - even one that took up less than 3,800 square feet - on the property would essentially help subsidize rent at the development so that they could bring in smaller businesses on the property, said Damien Chaviano of Mark Development.

Chaviano told the committee that The Barn shoe store had already committed to move into an 8,000 square foot space at Washington Place. He said that would not be counted as part of the 10,000 non-formula space.

City councilors and committee members debated whether allowing the developer to have a bank on the site, especially when there were some seven banks across I-90, made sense, would add to the area's vitality, or if it would set a bad precedent.

"By putting this restriction of 10,000 square feet on the space itself," said Chaviano, "It forces our hand to have to speak to retailers to meet this condition and therefore they have the leverage in the discussion as it relates to rent. If we can't rent to a retailer who can afford the spaces then we sit with vacant spaces, which is the last thing we want."

While a bank might not directly add to the vitality of the project, it would help create a mix of businesses and vitality is all about the mix, he said.

Greg Reibman of the Newton-Needham Chamber of Commerce agreed. He encouraged the committee to support the move, saying it was a good way to ensure Newton wouldn't just be all chain businesses. He also said he thought other proposed developments could benefit from something similar.

He later wrote the council encouraging them to support it, too.

At a time when so many independent merchants struggle to survive in the Amazon-era, the Newton-Needham Regional Chamber believes Mark Development is offering something that is really positive for Newton’s small and independent businesses. In fact, the idea of dedicating a portion of a project’s commercial retail footprint to non-chain retailers is a concept that’s worth examining as we look ahead to zoning reform in 2020. This is a good deal for our local businesses operators, as well as for Newton shoppers and diners.

Councilor Jake Auchincloss, who was behind the original caveat that banned banks from the development, but said he, too, saw promise in the new proposal.

"What we're looking at here is potentially a template going forward," said Auchincloss.

In 2017, the council granted a special permit authorizing of a mixed use development consisting of three interconnected buildings at the Washington Place development. It's slated to include 140 residential units and 40,000 square feet of commercial space. Condition 34 originally prohibited commercial banking, otherwise allowed under the zoning district (Mu4 zone).