Public Transit Collides with COVID-19

December 4, 2020 Pace LaVia

This week in Massachusetts news, the Covid-19 pandemic continues to ravage the state, the economy and now the MBTA. While the state insists recently proposed service cuts are necessary and temporary, most residents are in disbelief and living in fear that the axed services will never return.

Worse yet, but not as widely discussed, the number of small businesses open in Massachusetts has plummeted by a staggering 37 percent this year as small business revenue has decreased nationwide by 44 percent since January 15, 2020.

The hospitality industry has been especially hard hit with a 64 percent decrease in revenue for small businesses in the industry. One particularly sad sign of the decline is the unloading of the iconic Commonwealth Hotel by Xenia Hotels & Resorts just four years after the company acquired the property. The landmark hotel was sold at a cavernous loss of $23 million.

In the good news column — at least if you’re a stakeholder in the cannabis industry — within the same week, the U.S. House of Representatives passed a landmark marijuana policy reform bill while the U.N. removed cannabis from its most prohibitive controlled substances classification. The changes are bound to increase the flow of investment capital into the Green Rush.

Let’s get to work.

Transportation

The big news in transportation these past few weeks has been the looking cuts in MBTA services. The proposed cuts, called “unnecessary” in an extensive op-ed at CommonWealth Magazine penned by Chris Lisinski, have been extremely unpopular.

An online survey of 1,340 Massachusetts residents showed that 64 percent somewhat or strongly oppose the proposed cuts in service. Moreover, although MBTA General Manager Steven Poftak has stated that the cuts are not permanent, 54 percent said they didn’t think the eliminated services would be restored after the pandemic abates.

A laundry list of service cuts has been proposed by the MBTA in order to deal with a $579 million budget shortfall as ridership has been decimated during the pandemic. Cuts include less frequent subway and commuter trains, the elimination of 25 bus routes, and the cancellation of ferry service.

The Fiscal and Management Control Board plans to vote on the package soon.

More Transportation News

Business

The Number Of Open Small Businesses In the Bay State Falls By a Staggering 37%

The number of small businesses open in Massachusetts has declined by a staggering 37 percent since January 15, 2020, as nationwide revenue for small businesses has plummeted by an even more unbelievable figure of 44 percent. That is according to data published by a nonpartisan research organization at Harvard University. Interestingly, revenue for small businesses offering professional and business services decreased by only 4.4 percent.

Both CBS Local and the Boston Herald have more details on this story.

More Business News

Real Estate

Landmark Hotel Commonwealth Sold At $23 Million Loss

Boston’s beleaguered hotel industry is in shock after Hotel Commonwealth, a popular Kenmore Square hotel was sold at a loss. Florida-based Xenia Hotels & Resorts sold the luxury hotel to Ohana Real Estate Investors for $113 million. That’s $23 million less than Xenia paid for the property just four years ago.

The Boston Globe had this to say about the news:

“It’s a rare reversal in price for a trophy piece of Boston real estate, which for the most part has only gone up in value over the last decade. But it has been an unusual nine months in the real estate market, especially for hotels, whose bookings have evaporated amid a pandemic that has largely shut down both business and leisure travel.”

According to a report by hotel consulting firm Pinnacle Advisory Group, Boston has suffered the sharpest drop in business of any of the 25 largest hotel markets in the country.

More Real Estate News

Politics

Kimberly Budd sworn in as chief justice of the Supreme Judicial Court

Kimberly Budd has been sworn in as Supreme Judicial Court Chief Justice. Budd served on the SJC since 2016, where she has co-authored more than 85 decisions and has served on several judicial committees. Budd was unanimously confirmed by the Governor’s Council to lead the high court last month.

Councilor Marilyn Devaney said during the Governor’s Council hearing last month:

“[Justice Budd] has all the attributes. She is compassionate. She has empathy. She has all the qualifications, and she has the demeanor and temperament that we need in that position.”

Budd replaces her mentor, the late chief justice Ralph Gants. She is the first Black woman to lead the high court.

More Politics News

Energy

Offshore Wind “Lynchpin” of Mass. Clean Energy Transition

Energy and Environmental Affairs Secretary Kathleen Theoharides, the Baker administration’s top energy official, recently said at a conference of regional power generators, market regulators, and other energy experts that she expects offshore wind to be the “linchpin of the state’s clean energy transition.” That is according to a report in the Lowell Sun.

However, she says the state will need help from the incoming Biden Administration in order to meet the state’s goal of net-zero carbon emissions by 2050.

Theoharides said:

“To fully address the issues of climate change, we feel strongly we need every level of government working in this space and I am hopeful there will be increasingly emphasis on this in the new administration, but I have no doubts that it will continue to be a challenge given the politically divisive nature of climate action.”

Also, according to the report, Federal Energy Regulatory Commissioner, Republican Neil Chatterjee predicted that the Biden administration would bring renewed focus on climate and energy policy stating that it is “clear that energy and environmental policy issues are going to be top priorities for the incoming administration.”

Chatterjee was recently demoted by President Donald Trump from chairman of FERC.

More Energy News

Cannabis Industry

This big news for the Massachusetts cannabis industry is global this week.

First off, in an historic move, the U.S. House of Representatives has passed the MORE Act by a vote of 228-164, largely along party lines. The measure goes beyond decriminalization “including several social and criminal justice measures that would help lift up the communities of color ravaged by the War on Drugs, while helping build an equitable cannabis industry in which the people of color disproportionately impacted by prohibition have a seat at the table,” says Rolling Stone.

The bill must still run the Senate gauntlet and be signed by the president. Whether or not those things will come to pass are anyone’s guess.

Second, The United Nations’ Commission on Narcotic Drugs (CND) has removed Marijuana From its Most Strict Global Drug Category. The move, which was recommended by the UN-based World Health Organization, has U.S. Support. Cannabis, which has been on Schedule IV since 1961, is now a Schedule I controlled substance.

Cannabis policy reform advocates say the move “demonstrates an evolution in how the international community views cannabis policy, as it formally recognizes the medical value of the plant and it could promote further research into its therapeutic potential.”

More Cannabis Industry News

COVID-19 News

We have quite a bit of news on the Covid-19 pandemic this week: