Chelsea has been selected as the location for the FBI’s New England headquarters, surpassing Boston in the competition for the agency’s regional expansion. City Manager Jay Ash and Congressman Mike Capuano announced the decision last week. The FBI and General Services Administration have not yet made public statements, though sources indicate both agencies plan to do so shortly. ACS Development, the city’s largest property owner and most successful developer, will construct and own the facility but has withheld comment pending an official government announcement.
The five-story structure will occupy a 50,000 square foot lot on Beech Street owned by ACS Development. City Manager Jay Ash and Chelsea City Council President Leo Robinson were photographed near the center of the lot this week. The completed building is expected to span 250,000 square feet and accommodate approximately 500 FBI employees. “The FBI has chosen Chelsea,” Congressman Capuano stated. “All the details are being worked out. This is a great thing for the city,” he continued.
Ash expressed enthusiasm about Chelsea’s victory over Boston, particularly given that Mayor Thomas Menino had campaigned vigorously for a South Boston location. “This is great news for ACS, for our urban renewal district, for the city and frankly, for the nation. Chelsea is an ideal location for the facility the FBI is seeking,” Ash remarked. The headquarters will rise on the Emerald Block, situated on Everett Avenue across from Maple Street and the Wyndham Hotel. The city acquired this former industrial area—comprising auto salvage yards and deteriorated buildings—in 2000, and ACS purchased the assembled properties in 2003.
ACS will construct a 250,000 square foot building to FBI specifications at an estimated cost of $100 million. The company will then lease the structure to the General Services Administration for a minimum of 10 years with extension options before the FBI moves in. Ash and Congressman Capuano have collaborated with ACS Development on this effort for more than four years. The approximately 500-person workforce will include special agents, intelligence and financial analysts, investigative specialists, support services technicians, language specialists, public affairs specialists, paralegals, electronics technicians and security experts.
ACS will pay full property taxes on the structure, estimated between $500,000 and $1 million annually, and will cover building permit costs, potentially reaching $1 million. “We identified early on that this would bring multiple benefits to the city. The economic development impact is huge, having the FBI headquarters so visible to Route 1 will help us further change the image of the city and help us attract even higher and better development in the urban renewal district and elsewhere,” Ash said. “It’s a fully taxable development, which will certainly help us to balance budgets and maintain services. Of course, the public safety impact of the FBI coming to town can’t be understated. Having the nation’s premier law enforcement agency bringing hundreds of agents to our community daily will certainly make a big difference on our law enforcement strategy,” he added. Chelsea Police Chief Brian Kyes “We can’t wait to talk further with the FBI about how we can work together to address those pressing public safety areas,” commented. “We already work great with them, and appreciate their interest in many of the issues we have here in Chelsea. Having them in our backyard, though, could lead to an even more productive working relationship.” Chelsea Police Chief Brian Kyes stated.
The permitting process is expected to begin in January with development plans unveiled at that time. Ash described the facility as an attractive building with features befitting a major federal headquarters, and noted that a parking garage will be constructed near the building, bordered by Beech and Spruce Streets. Infrastructure improvements have already occurred on Spruce Street over the past year, with additional work anticipated in early spring for both Spruce Street and Everett Avenue. Groundbreaking is scheduled for late spring, with construction taking 16-18 months to complete.