The community and the Somerville Planning Board have made it quite clear they want underground parking on the D2 block development in Union Square, but an analysis contracted out by the city reported a high premium for this change.

At the June 6 Planning Board meeting, real estate finance consultant Barry Abramson presented his analysis on the feasibility of underground parking. Currently, developer US2’s designs include an above ground garage as well as a residential tower and commercial laboratory and retail building on the D2 block.

The desire for underground parking was presented to the city and developer as an alternative plan, with overwhelming support from the community. Placing the parking underground would allow for increased public and green space. The board discussed that this would more likely allow for a plaza than a park, given that having an underground garage could limit the soil depth and prevent large trees from growing there.

US2 estimated the above ground parking garage would cost $12 million, and the city estimated the underground parking option would cost around $23 million. Abramson’s analysis showed that these were both reasonable estimates. He found that the underground parking option would cost around $25 million total which, minus the $12 million US2 would have spent anyway for the above ground garage, leaves a $13 million premium.

Due to redesign and re-permitting, this could delay beginning construction for 12-20 months. Delays can involve unseen cost escalations that would not necessarily be mitigated by rising rents, as the market is starting to plateau.

“If this project is really unsatisfactory, and you feel that the alternative approach is just hands down better and meets your objectives from a planning perspective, then maybe you go ahead and you take that risk, and you say look, maybe their project doesn’t look feasible now, and maybe the economy is going to get even worse, but we’re going to hold out,” Abramson said. “On the other hand, if you feel it’s a marginal planning difference, that I’d ask you to really consider these very significant feasibility issues and market risk issues as you weigh that decision.”

Abramson also pointed out that each block, each separate development, needs to be financially feasible on its own because each project is separately financed. Essentially, it’s not a reasonable business model to assume US2 could make the money back on a different block they are developing in Union Square.

“This is the first project in Union Square, and I’ve said this from day one, this definitely has to set the tone,” said Planning Board member Dorothy Kelly Gay. “I think that is what weighs heavy on me, those are the things that keep you awake at night, but for us to accept something that we feel is not what we want at this point, just to get shovels in the grounds, I don’t think we’re prepared to do that, I’m not prepared to do that. We’re not just going to agree with anything that comes before us, because you get the first one right, the rest will follow, so this is very important to all of us. I appreciate all the numbers, and looking at them, I think we can definitely see that there are issues, and we’ll have to make some very shrewd decisions in the months moving forward.”

Discussions of the D2 block plans, parking and otherwise, will continue on June 13 at 6 p.m. in the Somerville High School auditorium and on June 20 at 6 p.m. at the Lowell Street VNA.