Assembly Square, the Back Story
Part 2:  False hope and true corruption

A Commentary by William C. Shelton

(Editor’s note — The views and opinions expressed in the commentaries of the Somerville News belong solely to the authors and do not neccessarily reflect the views and opinions of the Somerville News, its editors or publishers.)

By 1976, Assembly Square was becoming a ghost town.  First National Stores (FINAST), the B & M Railroad, and Ford Motor Company, who had each paid the city over $1 million in annual taxes, were gone.  Two machine tool companies and a trucking concern were the only large employers remaining.

In 1978, city officials began preparing an Assembly Square redevelopment plan that, in many ways, resembles the exercise that they recently went through.  Then, as now, city officials declined to develop a master plan, but embraced a developer‚Äôs initiative and presented it as the city‚Äôs redevelopment plan.

Then, as now, the developer had site control of the old Ford plant.  Then, as now, the plan called for the city to take properties from existing owners and give them to the developer.  Then, as now, Somervillians were told that turning the old auto plant into a retail center would subsequently bring high-value development across Assembly Square. 

East Bay Development Corporation promised to not only turn the Ford plant into a mall, but to revitalize the office building that had been FINAST’s headquarters, build a 200-400 room hotel, develop ten additional acres of commercial and office property, and all together, create 1,450 permanent jobs. The city approved the plan and got a $3.3 million grant from HUD to build the road improvements that the developer wanted.

East Bay had built the Woburn mall and several others.  In the process, the FBI caught them in a securities-fraud and tax-evasion scheme.  East Bay‚Äôs principal, Ray Coots, told then U.S. Attorney Bill Weld that, in return for reducing or dropping charges, he could deliver corrupt Somerville politicians.

Conducting the sting required an operative who would not be recognized in Somerville.  Special Agent John Connolly, now serving time for colluding with Whitey Bulger, recommended Special Agent Jack Callahan, his former Boston College classmate.

They introduced Jack Callahan to Somerville as Jackie Collins, East Bay‚Äôs public- and government-relations officer.  Their intention was to catch a low-level politico, offer leniency in return for cooperation, and work their way up the food chain.

The fictional hotel’s restaurant needed a liquor license, but Somerville had recently frozen the number of on-site licenses at 52. A new license would require legislation by the board of aldermen and a home-rule petition passed by the legislature.

Callahan wined and dined Ward 1 Alderman Tim Creedon, who said that he could get the legislation passed, but it would cost East Bay.  Callahan gave Creedon $13,500.  Creedon gave $500 each to five other aldermen.  The only one who he later named was Ward 3 Alderman Michael McKenna, who had complained that he should get at least $1,000.

Vinny Piro was then riding high as Somerville and Medford‚Äôs powerful state Representative.  Callahan asked Piro to shepherd the home rule petition through the statehouse.  Piro said that it would cost $25,000, and as proof of his good intentions, told Callahan that he had taken two bribes for successfully rendering favors in the past. In March, 1983, the FBI recorded Piro telling Callahan that he ‚Äúneeded a little walking-around money‚Äù to ‚Äúgrease a few guys.‚Äù  They gave him $5,000 in marked bills.

At that time, city tax assessors were elected.  Assessor Robert Campo knew a good thing when he saw it.  He went to Callahan and told him that he ‚Äúneeded some help,‚Äù because his campaign costs had been high.  In return for $5,000, he reduced the mall‚Äôs tax assessment.  Over the next two years, he solicited two more bribes, and the FBI recorded 47 conversations with him, including three involving his son-in-law, Ward 3 Alderman McKenna. He later testified that he had shared the bribes with other assessors.

Campo ended up pleading guilty and received a three-year sentence.  Creedon got a one-year sentence in Danbury for cooperating, and was paroled six months later.  Suffering from cancer, McKenna was given house arrest.

Piro‚Äôs attorney argued that his client had been entrapped, and pointed out that he had returned the $5,000 three weeks after taking it.  Prosecutor John Pappalardo said that Piro had been tipped off, and that the currency he returned was different from what he had been given.

Piro‚Äôs first trial ended in a mistrial, and his second, in an acquittal.  Somerville voters, however, convicted him at the polls.  He had won the Democratic primary election for the state Senate and faced no Republican opponent.  In the general election, outraged voters elected Alderman Sal Albano in an unprecedented write-in campaign. Shortly thereafter, the board of aldermen abolished the election of assessors.

The mall did not stimulate a wave of new development.  During the period of its greatest popularity, it had the highest incidence of car theft of any location in the Commonwealth.  A decade after it opened, it began a decline that would end with its closing.