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Our municipalities could be in for a revenue shock

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Our municipalities could be in for a revenue shock

The MBTA landed a $66 million federal infrastructure grant yesterday to overhaul Boston’s Symphony station to make it fully accessible.
 
That’s the good news. 
 
The bad news is that another project that applied for a grant from that same funding pool -- the rebuilding of Newton’s three inaccessible commuter rail stations -- didn't get any money.
 
That leaves the future of a project that was once celebrated as a near-sure thing, less certain. 
 
Municipalities ignore business' struggles at their own risk
 
The Wall Street Journal is warning that a “decline in office building values is likely to become a growing problem for the budgets of cities, schools and other jurisdictions that depend heavily on property taxes from these building owners.” 
 
And yet a majority of Newton’s City Councilors were more than a little cavalier this month when they overwhelmingly (21-2) rebuffed a proposal by Mayor Ruthanne Fuller to give commercial property owners a bit of a break on property taxes, with several councilors suggesting business could "afford it."
 
Electeds in Needham and Watertown also shifted as much of the tax burden allowed by law onto the backs of commercial owners when they set rates this month. (Only Wellesley continued its long-standing tradition of the same rates for residential and commercial.)
 
But our municipalities – and residential taxpayers -- could be in for a shock if remote work, layoffs in technology and finance, a softening lab market, rising interest rates, etc., etc. lead to a sharp decline in office building demand and, in turn, assessments.
 
It's already happening in Washington D.C.
 
(And economic pressures are a big reason why Newton businesses may be reluctant to support Fuller's proposed $15 million tax overrides in March.)
 
Property taxes are often office landlords’ biggest expense. It can take a while before property value declines are reflected in the real-estate assessments. But that doesn’t mean it's not coming. 
 
And what can bring workers back to the office?
 
While office demand declines, a new study suggests that the reasons many workers like being in the office are different from what employers may want, or believe.
 
For example, bosses may favor bringing teams together to collaborate, but employees want a place to get their work done efficiently, according to a new survey by design firm Gensler. 
 
The ability “to focus on my work" and "access to technology" both rank high in the survey writes Mark Burnett for the Business Journals.
 
Quiet zones, focus rooms, and rest/nap spaces also ranked high. Break rooms, fitness rooms, and cafeterias provided the least added value.
 
Car crash claims chamber member's photo studio
The building in Roslindale that collapsed after the driver of a vehicle crashed into a storefront this weekend housed several small businesses, including one belonging to chamber member Leise Jones of Leise Jones Photography.
 
Jones wrote on Facebook that she was not present at the time but that the accident was “devastating to my business and several others.” (Her studio was in the top right corner of the photo.)
 
News reports say the driver was hospitalized. There were no other injuries.
 
In addition to her stunning work photographing families, weddings, and businesses, Jones regularly (and always cheerfully) shoots events for our chamber. She’s also chair of the board at the Brookline Chamber. 
 
A GoFundMe has been set up to help affected businesses.
 
Neighbors appear comfortable with Wellesley biolab
 
Any bio safety worries abutters had earlier about a Beacon Capital Partners' lab proposal in Wellesley appear to have been resolved, at least based on the lack of public comment at last week’s follow-up Planning Board meeting, according to the Swellesley Report.
 
Beacon met with about 10 neighbors in October, so perhaps they had their main concerns addressed during that meeting, which reportedly focused more on leaf blowing hours than biosafety, one of their attorneys reported.
 
It's the second of two projects the company looks to bring to Rte. 9, just off I-95. The Planning Board was scheduled to continue, and perhaps conclude, its review last night.
 
We've published FAQs about lab safety developments for residents here.
 
Bay State still losing workers
 
Labor Department data released last week indicates that the pool of available workers in Massachusetts keeps shrinking, writes the Globe’s Larry Edelman.
 
 The number of adults 16 or older with a job or looking for one declined by more than 13,000 last month, as the state’s overall labor force has shrunk by almost 19,000.
 
“Economists point to a grab bag of reasons why there are fewer available workers, including a decline in immigration, increased retirements among workers age 70 and older, a shortage of affordable child care, and COVID deaths and lingering health concerns,” Edelman writes.
 
It less clear why the participation rate among men in their prime working years — 25 to 54 — remains below that recorded before the pandemic, while the rate for women has more than fully recovered, he added.
 
And then there's this troubling economic indicator
 
Will this be a "December to remember"? Perhaps not if the sales of this seasonal product is an indicator.
 
Other needs to knows
 
  • Former Congressman and Newton resident Joe Kennedy III has been appointed by President Joe Biden to serve as U.S. Special Envoy to Northern Ireland. The appointment is a part-time position and will allow Kenndy to continue his existing work with the Groundwork Project. 
 
  • Add Abata Therapeutics, a company developing cell therapies for multiple sclerosis and other serious autoimmune diseases, to the list of life sciences companies happy to have moved to Watertown. “We brought (our employees) out to the area multiple times now and they really love it because it’s vibrant,” COO John Trzupek says of their new HQ at Arsenal Yards. 
 
  • Through a grant MassBay is offering a free Computers and Technology course to new students (see flyer below). There are 15 seats available, and the course will run January – May 2023 on Wednesday nights, 5 p.m. – 7:30 p.m. If you have questions about eligibility or the course materials, email fmendeztorres@massbay.edu.
 
  • The Mass. Life Sciences Center is accepting applications to its Tax Incentive Program. The program provides incentives to companies, of all sizes, looking to expand their efforts by creating new, long-term jobs in Massachusetts. There’s an info session Jan. 10.
?
 
New program aims to train more STEM workers
 
The state has awarded $5 million to create five new STEM Tech Career Academies, including one at Mass Bay Community College, as part of a new initiative aimed at helping more high school students earn associate degrees and certifications upon graduation, reports Adria Watson at the Globe
 
Tony Russo returns (sort of)
 
A little more than a year after Russo’s broke our hearts, many of us still struggle to find a replacement for the 100-year-old Watertown market, especially during the holidays.
 
But at least it was nice to see former owner Tony Russo and his daughter Karen in the Globe last week, writing the first of their new monthly column about how to select in-season produce.
 
This month’s topic: Finding the perfect pomegranates and persimmons
 
They're tops in our book too!
 
Finally today, a belated congratulations to the following Charles River Chamber members who were included on the Boston Globe’s “Top Places to Work 2022” list:
 
 
That’s your need to knows for today -- National Gregory Day -- unless you need to know if you should give your boss a gift for the holidays?
 
Happy Hanukkah.
 
Greg(ory) Reibman (he, him)
President
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