Good morning!

Community-by-community opposition to multi-family housing, including opposition to the MBTA Communities Act, only partly explains the housing crisis that’s choking our region’s economic vitality.

The other part of the story — the part that rarely gets enough attention — is that even if the NIMBYs weren’t standing in the way, the development economy is.

On Sunday, the Globe’s Andrew Brinker did a good job explaining that part of the story. 

I urge you to read it. Here’s one excerpt: 

“…every major ingredient of an apartment building —from wood to steel to electrical components — costs more than it did before COVID. Overall materials costs have jumped 43 percent since the start of 2020. Interest rates for construction loans have more than tripled. The investors who typically fund housing development are demanding higher returns, too. Financing new housing in Massachusetts was a complex undertaking five years ago; now it seems impossible.” 

Brinker cites the nearly 600-unit Riverside MBTA Station project in Newton,  on hold since 2022, as one example. (Of course, if it wasn’t for all those city council meetings, Post-It note vision sessions, and other roadblocks, the 13-acre project would be likely ready for occupancy by now.)

Many other, mostly smaller projects, are also stuck. 

That includes an estimated 20,000 units approved under the state’s 40B affordable housing law. Stuck waiting. Not for tenants. To be financially viable.

So what can we do about it from our meager corner of the universe? 

We can’t alter the economy.  (Some say that’s about to get worse.)

But we can urge Beacon Hill to support proposals such as the Healey administration’s proposed Momentum Fund which could plug financing gaps for large scale mixed-income projects. That program, part of a larger, critical, housing bond bill, is now in conference committee facing a July 31 deadline.

And locally we must collectively keep pushing for the zoning changes and reforms we need. That includes passing robust MBTA Communities compliance plans in Needham and Watertown this fall, along with Wellesley’s housing plan, and, for Pete’s sake, approving Crafts Street in Newton already.

That way, once the development economy does turn, we’re ready to start building.

New OT threshold in effect

A reminder that the salary threshold for employees to be exempt from federal overtime requirements increased last week.

Previously, to be exempt from federal overtime, a white-collar worker needed to receive a guaranteed base salary of at least $684 per week ($35,568 per year). 

The new rule increased the minimum salary threshold to $844 per week ($43,888 per year) as of July 1. 

It goes up again to $1,128 per week ($58,656 per year) on Jan.1,2025. 

The rule also raises the annualized salary threshold for white-collar workers to qualify under the “highly compensated employee” overtime exemption. It does not modify the duties test for either the white-collar or highly compensated employee exemption, so be sure to do your research.

Meanwhile, another federal rule banning noncompetes just suffered a legal setback months before those new rules were set to kick in.

Do you have summer interns?

The Bulfinch Group is hosting an interesting intern networking day featuring highly recommended guest speaker, Elevator Pitch Coach Andrew Winig tomorrow (Weds) 8:30 – 11:30 a.m. at 160 Gould St in Needham.

Want to send someone? 

Email dylan.grocer@bulfinchgroup.com if your organization's interns would be interested in attending a morning of networking 101.

Developer proposes 95 Wellesley Lower Falls condos

Developer Joe Hassell made a second appearance before the Wellesley Planning Board last week to provide modifications to two proposed multi-family projects, reports Bob Brown at the Swellesley Report.

• Walnut Park, in Lower Falls, could contain more than 70 condo units, with plans initially for a 4-story, 41-unit condo building at 49 Walnut St. The project, located on the banks of Charles River adjacent to Cordingly Dam, involves replacing office buildings with housing, built in phases.

  
  

• 6 Washington Court also in Lower Falls would replace a multifamily home and former auto service property with a condo complex of 25 3-bedroom units. The living space would be across three floors above a garage and lobby level.

Hassell hopes to bring both projects before Special Town Meeting in October as a Residential Incentive Overlays.  Look for public hearings, likely in September.

Watertown finally finds its small business person

At long last, Watertown has an employee dedicated to supporting the city’s small businesses, corridors, squares and emerging industry clusters.

Erin Rathe began last week as the city’s senior planner for economic development. 

She comes to Watertown from the well-respected Middlesex 3Coalition, where she served as the communications director.  Rathe has a background in journalism and chambers (both in Lexington), so I like her already.

It’s a position City Manager George Proakis has been looking to fill for a while now. It took time to get budgeted and, well you know, find the right person.

In addition, Proakis has hired Michelle Moon as the city’s senior planner for open space.

Look ma, they’re (finally) removing those wires

Expect some nighttime closures this month along Mt. Auburn Street in Watertown so crews can begin removing the overhead catenary wires once used by MBTA buses.

Yes, this was work that was announced a while back, but delayed. The work is part of the Mt. Auburn Street road diet that will reduce travel lanes to one in many spots, while adding turn lanes and bike lanes from Common Street to the Cambridge line.

Sign up for Mt. Auburn Street email updates

Tuesday grab bag

• Alexandria Real Estate Equities is moving forward with plans to transform the Watertown Mall.  The developer is holding a community meeting Thursday (July 11) at 6:30 pm. at 300 North Beacon Street and via Zoom before filing its formal application to the Watertown Planning Board for phase 1 of its approved Master Plan.
  
  
• Morphic Holding, a Waltham biotech that’s working on treatments for chronic diseases such as inflammatory bowel disease is being acquired by Eli Lilly. (BBJ)
  
  
• Congratulations to Newton's delightful home entertaining and gift shop, Greentail Table which is celebrating its 10th Anniversary this Saturday and Sunday. There will be cake, ice cream, artisan pop-ups, raffles, face painting and surprises!
  
  
• Newton Corner-based insurance company EBS Insurance Brokers is rebranding as IMA Boston. The company has 23 employees based in Newton. (BBJ)
  
  
• Watertown company Addgene is hosting a pop-up market on Friday (July 12) from 2 to 6 p.m. at 490 Arsenal Way, featuring local artisans, food trucks and activities for the whole family. ( Watertown News)
  
  
• Experience 'A Greek Summer Night in Boston' at Farm Grill Rotisserie on July 15th from 6 to 9 p.m. Enjoy Greek cuisine, wines, and networking in an authentic setting. RSVP
  
  
• Tomorrow (Weds.) at 1 p.m. we’re hosting what could be the most useful chamber webinar you’ll ever attend, even though we hope you’ll never need it. RSVP for Disaster Readiness and Risk Management via Zoom.

Thirteen hours, 10 minutes, and 10 seconds

That’s how long it took Heshan de Silva-Weeramuni to ride between all 146 MBTA stations one day last week.  

He began at 5:32 a.m. and ended at 6:40 p.m., traveling through 11 cities and towns in the process.

Here’s the very sped-up video of his journey. Dramamine recommended.

Armenian restaurant forced to close

The Jana Grill and Bakery was forced to close after a pickup truck hit and ran straight into the Armenian restaurant located at the intersection of Watertown Street and Galen Street in Watertown (video).

Investigators have located the truck. It's not clear if the driver has been identified according to NBC10

It's unclear when the building will be repaired and the restaurant restored.

Find out how our state rep candidates feel about business

Finally today, I’ll be moderating three virtual debates this month ahead of the Sept. 3 Democratic primaries, for the three rarely open state representative seats in our chamber footprint. 

• In 13th Norfolk (covering Needham, Dover and part of Medfield) Patrick A. Gatto, Kenneth Ruetenik and Joshua Tarsky will kick-start this series, July 16 at noon.
  
  
• In 12th Middlesex (including part of Newton and a slice of Brookline) Rick Lipof, Bill Humphrey and Greg Schwartz will debate, July 18 at 10 a.m.
  
  
• In the 11th Middlesex (covering part of Newton) Amy Sangiolo and Alexander Jablon will debate, July 31 at noon. 

The focus for each hour-long event will be issues related to economic development, housing, workforce and the environment. Other general topics — and a curve ball or two — may be tossed in as well.  

All three debates will be recorded. Email me your suggested questions.

Register here for these and all upcoming chamber events.

That’s what you need to know for today — Black Women’s Equal Pay Day — unless you want to see a series of cute videos explaining surgeries with Play Dough.

Stay hydrated and visit one of our air-conditioned chamber member restaurants.  

See you Friday.

Greg Reibman (he, him)

President & CEO

Charles River Regional Chamber

617.244.1688