The opening of Greater Boston's first new subway station in 27 years is a credit positive for Somerville, Mass., said Moody's Investors Service.
On Sept. 2, the Massachusetts Bay Transportation Authority plans to open the $29.2 million Assembly station on the Orange Line in Somerville, just north of Boston. It will anchor the $1.5 billion redevelopment in Assembly Square, which includes the new Legoland Discovery Center.
MBTA officials say funding for the station was established through a public-private partnership with state and federal agencies, as well as developer Federal Realty Investment Trust.
"The project is credit positive for the city, as it will restore 145 acres of previously blighted land, create jobs, improve transportation to downtown Boston and generate up to $24 million in annual property tax receipts at full buildout," said Moody's.
Moody's, which rates Somerville Aa2 with a stable outlook, said the tax receipts amount to nearly 12% of the city's 2013 revenues. It also rates the MBTA's sales tax bonds, the authority's primary credit, Aa2 and stable.