an attempt to uncover the truth about September 11th 2001

M.I.T., Rotch Visual Collections

2.1 THE DEVELOPER: CABOT, CABOT, AND FORBES

Cabot, Cabot and Forbes (CCF) is a national real estate development firm incorporated in 1904. Headquartered in Boston and maintaining offices in 13 other U.S. cities, the firm is one of the largest in the country. CCF manages a diverse portfolio which includes high-rise office buildings, industrial parks and research centers, suburban office parks, hotels, and residential- recreational communities.

The Cabot, Cabot and Forbes Development company is headed by Board Chairman Gerald Blakeley. President Ferdinand Colloredo Mansfield oversees the day-to-day operation of the firm's seven sections: Financial Department, Legal Department, Sales Promotion Department, Commercial Group, Industrial Group, Miscellaneous Group and the Construction Group. An organization chart for Cabot, Cabot and Forbes is presented in Figure 2.3. The Financial, Legal, and Sales Departments service the project development groups. Vice-President for Urban Affairs K. Dunn Gifford performs an advisory service to CCF by interfacing with the increasing number of government agencies regulating the development process.

Commercial development is a complex continuum requiring the diverse contributions of a large number of talents. CCF assigned one person, Project Manager Ray Miller, to be the central figure for Sixty State Street in charge of coordinating the varied specialties needed, from the identification of development opportunities through tenant occupancy. CCF monitors the market for real estate development throughout the country and attempts to identify opportunities which could lead to profitable investments.

Prospective projects undergo a feasibility study to determine possible economic potential. Once Sixty State's feasibility study had been concluded, CCF's Commercial Group prepared preliminary budgets and cash flow statements sufficient to initiate negotiations for interim, construction, and permanent financing. The process of site acquisition, which is crucial to the viability of a development, was carried out simultaneously with Sixty State's planning, architectural design and engineering. Management of the subsequent construction process is shared between CCF and its wholly-owned subsidiary, Aberthaw Construction Company.

Most speculative office buildings have a guaranteed major tenant before construction begins. Sixty State is an exception to this rule, due in part to its envisioned role as the home of a large number of small, professional firms. CCF's Sales Promotion staff seeks out possible tenants while construction continues. A lease, which specifies term of rental, base rental rates, adjustments for inflation, and rights of both tenant and landlord, is prepared for each firm which takes space in the structure. CCF's Property Management Department will operate and maintain Sixty State once construction is completed.

Commercial Development at CCF is centralized around a group of Project Managers. A Project Manager has a diverse group of responsibilities concerning the development of a building, which is illustrated in Figure 2.4. Each Project Manager is recruited with a different specialty in finance, design, engineering, or construction. This diversity enables the team of Project Managers to deal effectively with inter-disciplinary problems such as the evaluation of design proposals and preliminary cost estimating. Senior Vice President Robert Elder supervises the Commercial Project Managers and coordinates the flow of information.

CCE attempts to control cost by controlling the design process. CCF employs all consultants directly and retains the final authority for design decisions. The goal of the cost control process is the creation of prestigious, yet efficient, buildings. "The image we try to portray is one of quality; a better product at a competitive price. "[52] CCF pays attention to the 'impressive' areas of the building: lobby, elevators, bathrooms. They use technical innovation when appropriate (double-pane glass), but they strive to keep the building (especially mechanical systems) as simple as possible. [53]

Developers attempt to minimize their own risk and economic exposure in a field currently soured by the combined effects of recession and inflation. CCF established the Sixty State Street Trust, a privately-owned organization, to undertake development of the tower. John M. Hines, Paul F. Hellmuth, and GeraId Blakeley are the trust's three principals. The trust mechanism limits all claims to damages or debts connected with the project to the trust's participants, thus protecting the parent company's other assets from the risks involved in the development. CCF proper sells design, construction, and property management services to the trust; future rentals will pay back this accrued "debt" and provide profit to the owners.

The construction of an office building is an exercise in reconciling the provision of space, whose true cost is known only at completion of construction, with the desire to guarantee rental levels low enough to be attractive in a competitive market. CCF attempts to minimize economic uncertainty through the standardization of materials and design features of all CCF projects. The cost of the lights, for example, in the last building can be extrapolated with an inflation factor to yield a budget cost for a new structure. The developer utilizes "Scope Drawings" to negotiate letters-of-intent with subcontractors and suppliers for unit prices on items such as structural steel, reinforcing bar, glass and window frames, toilet fixtures, lights, and elevators. With unit prices and estimates of needed quantities, up to 90% of the project budget can be firmly established before detailed design is begun.

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