Good morning,

Max Woolf here.

Credit card rewards aren’t free. And our businesses are footing the bill.

That was the message from dozens of small business owners who packed a Beacon Hill hearing room last week to urge lawmakers to rein in excessive swipe fees.

As consumers, we enjoy the points and perks. But those rewards — and the credit card companies’ sizable profit margins — are funded by ever-growing “swipe fees” charged to businesses on every transaction.

Massachusetts restaurants are especially vulnerable because swipe fees of 3-5% are charged not only on meals, but also on gratuities and meals taxes that owners collect but don’t keep. This is at a time when 42% of independent restaurants nationwide remain unprofitable, and meals tax revenues in our five chamber communities have also failed to keep pace with inflation since 2020.

At last week’s hearing, lawmakers heard extensive testimony from a small army of small business owners describing how swipe fees are squeezing them.

Speaking on behalf of the Chamber’s Dining Collaborative, Dunn-Gaherin’s owner, Seana Gaherin, called credit card companies “the bullies in the room.”

“We paid over $100,000 in credit card fees last year,” Gaherin testified. “The credit card company is taking over half my profit.”

With Massachusetts collecting roughly $1.5 billion annually in meals taxes, restaurant owners say they’re paying tens of millions of dollars each year simply to collect taxes on the Commonwealth’s behalf.

Jen Ziskin, owner of La Morra and executive director of MRU, said restaurants are “paying fees on money that is not ours” with little ability to negotiate the terms.

The coalition urged lawmakers to exempt tips and taxes from swipe fees and join 48 other states in allowing restaurants to pass on fees.

Let’s hope they listen.

Bank exec warns about rent control

Add Rockland Trust CFO Mark Ruggiero to the growing list of business leaders worried about the rent control ballot question slated to go before voters this November.

Rockland Trust is reporting a sharp drop in demand for multifamily construction loans as investors grow increasingly cautious about the strict nature of the ballot proposal that would cap rent increases statewide.

“I think a number of investors, and I’ve spoken to several of them, they’ll tell me, ‘Look, we have choices. We don’t have to invest in Massachusetts. We can invest in Connecticut or New York.’ Until that issue gets some clarity around it, I think there’s going to continue to be muted demand on the construction side,” Ruggiero recently told Sam Lattof of Banker & Tradesman.  

Twelve of the state’s mayors are already on record as being opposed to the ballot measure, which would be the nation’s most restrictive rent control law.

Also opposed are Watertown City Council President Mark Sideris and Vice President Vincent Piccirilli.

Newton Mayor Mark Laredo has yet to weigh in.

Brookline to hike parking ticket fines

The Brookline Select Board voted unanimously to increase most parking fines from $25–$30 to $45.

This decision caught us by surprise, as we felt the business community was not meaningfully consulted before the changes were finalized. While the increase may ultimately prove to be the right and prudent decision, businesses deserve a seat at the table before decisions like these are adopted.

Accessible, convenient parking is critical to small businesses in Brookline and increasing parking fines could have unintended consequences. Although we understand the rationale for increasing fines on serious safety violations, such as double parking, minor infractions are another matter. 

For example, a legally parked customer who misses the meter by a few minutes may sour on shopping locally and next time choose to visit a mall or another community with free or less stringent enforcement.

In a letter to the board, we asked them to reexamine the issue with business voices at the table.

Town Administrator Chas Carey’s response is here.

Needham finally moves forward on 888 Great Plain

Needham Town Meeting okay’d new zoning this week, making way for a mixed-use redevelopment at 888 Great Plain Ave.

Developer J. Derenzo plans to transform the long-vacant former site of Hillcrest Gardens into a four-story building with 26 homes atop ground-floor commercial space.

Much of the Town Meeting debate focused not on the merits of the proposal, but on the fact that it reached the floor through a citizens’ petition rather than directly from the Planning Board.

But Derenzo spent nearly six years trying to move this site forward through the traditional process, only to see no zoning proposal emerge from the Planning Board.

At some point, the endless process becomes indistinguishable from inaction. 

Plus, this is exactly what Needham Center has needed for years, noted Needham Housing Authority Commissioner Amanda Berman

“We need quality housing, we need a vibrant downtown, we need more retail space,” Berman said. 

Peter O'Neill of the Needham Observer has more.

Friday grab bag

• Watertown Square may remain without a post office after the U.S. Postal Service informed its former property owner that it does not plan to reopen a branch there. City Manager George Proakis is pushing back, calling a post office an important part of a vibrant downtown and is seeking assistance from Rep. Katherine Clark. (Watertown News)
  
  
• But sure and read the Globe op-ed by Steven Peljovich,owner of Michael’s Deli in Brookline.  “I am just a guy trying to create food that makes people happy and brings people together, he writes.
• A whole host of neighbors and Newton City Councilors are upset with the developer’s plan to build 7-8 duplexes in a neighborhood chock full of duplexes in Newton Upper Falls.
• The Newton Cultural Alliance will host its annual Strawberry Festival — with food, neighbors, and a live auction featuring Red Sox tickets, a Martha's Vineyard rental, local art, and more — at The Allen Center on May 28, 6:30 p.m. Register 
• Watertown-based Werewolf Therapeutics is vacating its headquarters on Arsenal St.  (Watertown BIO and the BBJ)
• CHAPA's 59th Annual Dinner takes place at the Boston Convention & Exhibition Center on June 4, 5:30 p.m., with Senate President Karen Spilka as keynote speaker and our President Greg Reibman among the evening's honorees. Register
• A citizen's petition at Needham Town Meeting directing the town to no longer fund a two-lane redesign of Great Plain Ave. passed. Although it might be more show than substance, the two-lane plan has been on the outs for quite some time. (Needham Observer)
• Dover Saddlery will close its Wellesley store after 50 years, ending a long chapter for one of the town’s homegrown businesses. The company grew from a single local shop in Wellesley into a national equestrian retailer. (Swellesley Report)
• The City of Watertown hosts an open house on the Watertown Square implementation plan on Wednesday (May 20), 3–8 p.m. at 9 Galen St. The event will include presentations on a proposed parking garage in Watertown Square and updates from the firm redesigning the square’s horrendous five-way intersection.
• Stantec consultants will present its recommendations for updates to Needham's parking ordinance and zoning at a Planning Board meeting on Tues. May 19 at 7:30 p.m. Attend in person at Town Hall or by Zoom. 
• Now that the override has passed, read how Brookline Town Administrator Chaz Carey is planning for the future in his Q&A with Brookline.News 

Wellesley talks tough in letter to state about MassBay

Wellesley Town Meeting seemed to be calling for a collaborative approach with the state, voting Monday to negotiate rather than immediately sue over plans to build housing on the MassBay parking lot.

But you’d be hard-pressed to find much collaboration in a letter town officials sent to the state Wednesday.

The Swellesley Report described it as “strongly worded.”  That may be an understatement.

The letter lays out several reasons why the town believes the state’s actions could be improper, illegal or procedurally flawed. Most of the objections appear aimed at reducing the scale of any future development to below 180 units — something the state has repeatedly said is a non-starter. 

Still, the town closed its letter by outlining conditions it hopes to see in the upcoming RFP and even thanking the state for the opportunity to comment.

Everybody loves a parade. This weekend there’s two.

Finally, Newton’s annual Memorial Day parade has been moved up to this Sunday, May 17 (Armed Forces Day) at 3 p.m. — one week ahead of Memorial Day weekend. The festivities, part of the state’s 250th anniversary celebrations, include a carnival at City Hall, a rooftop party, and Elvis. View the new route and full celebration details.

NewTV will also livestream the festivities.

Meanwhile, today (Friday) marks the start of Wellesley’s beloved Wonderful Weekend, with events taking place throughout town, including picnics, concerts, historical tours, and a fireworks show.

Wellesely’s parade is on Sunday too, traveling down Route 16 from Wellesley Hills to Wellesley Square.

The Swellesley Report has the packed schedule.

That’s what you need to know for today—both National Chocolate Chip Day and Pizza Party Day— unless you need to know they can work together.

Max Woolf (he, him)

Public Policy and Government Affairs Manager

Charles River Regional Chamber

617-431-6101

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