Predictions for the Massachusetts Real Estate Market

Though the world is nearly shut down and public events, in-person learning, and the ability to go outside at all seem to be a relic of 2021, the heat being generated in the housing market shows no signs of cooling off in 2022.

According to new predictions, the real estate market is looking bright and expected to continue thriving given low inventory and high demand. Locally, Boston continues to be a hot market with record numbers and prolonged momentum as a result of the pandemic. Boston’s sale prices were up 11.1% in November 2021 compared to the year before, according to Redfin. The real estate giant also claims homes were reported to have closed after 23 days on the market versus 27 the year before. The number of homes sold rose from 462 to 502, showing that things are still trending upward in the area.

As one year ends and a new one begins, many organizations have attempted to predict what the hottest markets are for the new year. One prominent list is Fortune’s Best Places to Make Real Estate Investments in 2022 and the lists generally focus on places where housing prices are expected to continue rising.

This year’s list is a far cry from places that once were top picks in the past, excluding many bustling cities and tech hubs like New York City, Silicon Valley, and their well-heeled suburbs. Shying away from traditionally booming locations seems to be another side effect of the pandemic for new homeowners. With the realization that remote working is a way of life, and in many cases business can thrive under this arrangement, many people with the means to relocate are fanning out in favor of slower living and lower prices. Fortune’s predictions for 2022 include a town in Central Massachusetts, helping to put more of the state on the map.

Fortune’s top list of places to purchase include:

• Portland, Maine

• Providence, Rhode Island

• Salt Lake City, Utah

• Worcester, Massachusetts

• Boise, Idaho

Less than 50 miles east of Boston, Worcester is nestled in Central Massachusetts and major driver of the regional economy. It provides smaller scale living while remaining close to everything. In an autonomous, thriving city like this, it’s no wonder home prices in Worcester are expected to grow slightly above 8% next year. Though smaller than Boston, it is still the second most populated city in the state with over 200,000 residents. It offers a nice blend of Massachusetts living and was aptly named one of Realtor.com’s Top 20 Hottest Housing Markets as well.

Other predictions for 2022 real estate in Commonwealth include surrounding towns in Central Massachusetts adapting to accommodate an uptick in home owners. Webster, Sturbridge, and Hudson have plans to invest in downtown areas to help draw new visitors and residents alike, effectively capitalizing off of Worcester’s newly found fame and the appeal of less-expensive living conditions when compared to other places along the East Coast. With this, Worcester Business Journal reports that investors from the Greater Boston area have been racing to build new residential housing in Central Mass to accommodate the demand. Pairing new residential complexes with the host of vacant lots, buildings, and mills in the area, there are numerous and diverse options for housing. By remodeling previously established buildings, housing providers are able to save on construction and material costs in some locations while enhancing a once overlooked area in th

Massachusetts Startups Seeing Major VC Success

Venture capital investment has seen an uptick as business leaders still try to grasp where America is headed next. With significant changes in the economy in the last year, many VCs have adapted their spending strategies and, as a result, more funding than ever has been funneled into startups promising innovation and brighter, better futures.

As for Massachusetts? The Commonwealth ranks third in the entire country for venture capital investment, falling behind only New York and California. 

This year, Bay State startups have received more funding in the past six months than they have in the entire year of 2020 - totaling an incredible $17.4 billion to a core group of Massachusetts-based startups.

While COVID-19 negatively impacted many businesses, the overwhelming characteristics for companies who score funding is either a thriving business despite COVID-19, or a direct capitalization on the pandemic’s ill-effects. That is to say, the services they offer were more in demand during the pandemic than they were before, or their value and success have scaled so much that it’s led to a sharp increase in VC interest. Companies garnering funding include biotech, cybersecurity, and e-commerce institutions,  earning Massachusetts the well-deserved number three spot overall in the country for VC investment. 

Unsurprisingly, the healthcare industry has boomed during the pandemic, which explains the increase. And successful biotech companies, such as Adagio Therapeutics and Affinivax, have been just two of the more recent companies that benefited from the increase in VC funding.  With the race toward the COVID vaccine and the demand for adaptable, high-tech healthcare systems and technology, VCs have rapidly shifted their attention to startups like these. As a result, it’s more important than ever that these enterprises continue their research and development momentum to ensure that they can keep up with demand.

Cybersecurity firms Snyk and Aura also received a hefty amount of funding. The world has been turning increasingly virtual this last decade but nothing quite  propelled the space like the onset of COVID.  Consumers turned online to conduct business, shop, and socialize - leading to a concurrent increase in demand for quality cybersecurity systems. Similarly, Boston-based high-tech company, Circle, raised $440 million in May alone, cementing its position as one of the top cryptocurrency brands to take over the market. 

While the investment in cybersecurity and biotech is impressive, none fared as well as online sales and marketplaces. Perch, a Massachusetts-based e-commerce brand, landed $775 million during the first six months of 2021. Deemed the largest 2021 deal in Bay State, Perch’s substantial funding is entirely on par with a post-pandemic world leaning into online sales.

Each of these companies puts the Commonwealth on a hopeful path toward a recuperating, post-pandemic economy. We can expect the trend to continue through the second half of 2021 with hot spots including green tech, software, cybersecurity, biotech, and e-commerce spheres, all promising futures for investment groups. 

Massachusetts is the only New England state to rank in the top ten venture capital-backed states. Though Connecticut sits 14th with a total of $1.4 billion in funding raised, Massachusetts far outweighs its neighbor.

Urgency Has A New Meaning

As spring transitions into summer in New England and emergency restrictions come to an end, the news has been trending to less urgent matters. However, that’s not saying much considering how ultra-urgent things have seemed for the past year. On another timeline where the road was less rocky, this week’s news might feel more urgent than it does today. 

Is a millionaire’s tax urgent when the state is rolling in billions of dollars in federal economic relief? Is the fact that businesses are scrambling to hire enough employees urgent if you’re being paid to stay home? Is the building of a fossil fuel-powered peaker plant urgent when a bank of batteries might suffice just fine? Is the Transportation Climate Initiative (aka TCI) urgent? Apparently not to Connecticut and ten other states that signed on and then off. We debrief on all these topics below. 

In a bright spot in this week’s news, two cities in the Bay State topped Safewise’s list of the 100 safest cities in the U.S. That’s something! 

Read all about the topics below and then charm your cronies with your clever conversance on current crises in Mass. politics. 

Politics

“Millionaire Tax” will be on the Ballot in 2022

A constitutional amendment that would raise the income tax on wealthy Massachusetts residents passed the Constitutional Convention, and the so-called “millionaire’s tax” will be included on the 2022 ballot. 

The proposal calls for an additional 4% tax on all household income above $1 million. This is in addition to the current flat income tax rate of 5%. The Department of Revenue estimated that the measure could generate as much as $1.9 billion in additional taxes. 

Senate President Karen Spilka and House Speaker Ron Marian defended the proposal in a joint statement. 

“As Massachusetts recovers from the COVID-19 pandemic, and as we prepare for our future, we have a unique opportunity to move towards a Commonwealth that truly works for all residents... We stand with the residents of Massachusetts in exploring new ways to increase revenue for the state as we envision and invest in an equitable and hopeful future for the Commonwealth.”

The proposal has the backing of the Raise Up Coalition, a group of labor, faith, and community organizations, who said in a statement:

“Long before the pandemic, Massachusetts needed new investments in our transportation and public education systems. These investments are needed now more than ever to lift up our economy for everyone and to ensure Massachusetts remains a great place to live, work, and raise a family. Massachusetts needs sustainable, long-term revenue for these investments that doesn’t require low- and middle-income families to pay more.” 

The proposal is getting some fierce blowback from business leaders who point to the fact that tax revenues are more than $1.8 billion ahead of projections through April and that the state is collecting another $5.3 billion in federal COVID-19 relief aid.

Read all about it at Boston Business Journal.

More Politics

• Tami Gouveia announces campaign for Massachusetts lieutenant governor

• Mass. Politicians In Hot Water: Baker, Walsh And The GOP

• An inspiration and mentor for women in politics, Betty Taymor dies at 100

• Battenfeld: Biden sets low bar for Irish ambassador, reportedly picking obscure Massachusetts Rep

• Poll: 70% of Americans now support same-sex marriage, 17 years after Massachusetts became first state to legalize - masslive.com

• Auto Parts Magnate Rick Green Hopes To Rev Up Mass. GOP

Business

Bay State Businesses “Scrambling” To Hire Workers, Pony Up Higher Pay

As the state opens for business, Massachusetts employers are “scrambling to hire enough workers to meet their reopening needs and the pent-up demand from patrons who want to go out again,” according to a story in the Boston Globe.

Some businesses in the state are increasing wages and adding hiring bonuses to attract applicants. Also being offered are deep employee discounts on products and services for new hires. 

According to the report, this comes at a time when weekly unemployment claims in the Bay State have fallen to their lowest levels since the pandemic-forced lockdowns. The shortage of workers could hamper economic recovery while increased wages are likely to lead to rising prices on some goods and services in Mass. 

Meanwhile, according to the US Labor Department, employers added 559,000 jobs in May. 

Here’s the full report: These companies are raising wages and offering bonuses to attract more workers in Mass.

More Business

• Remote Workers Face Uncertainty About Returning To 'Normal' As Offices And Businesses Reopen

• Business owners fear long-term impact of COVID on Mass. unemployment insurance fund, poll finds

• Mass Fintech Hub launches, with backing of MassMutual, Fidelity, others

• Mass. Restaurant Sales Back to 2019 Levels

• What to expect for the rest of 2021

Energy

Is Proposed “Peaker Plant” Already Obsolete?

A proposal for a 55-megawatt natural gas-powered “peaker plant” has come into question as environmental activists and local residents express concern over unnecessary greenhouse gas emissions and ground-level pollution. The group claims that future regulations will make fossil fuel burners non-competitive and leave consumers on the hook for the $85 million plant. 

In May, a group of 87 health care professionals sent plant operator Massachusetts Municipal Wholesale Electric Company (MMWEC) a letter urging them to consider battery storage rather than continuing with the current plan. 

A “peaker plant” runs only at times of peak demand — estimated to be no more than 250 hours per year. And many feel the plan is obsolete given advances in clean energy storage over the past six years since the plan was first proposed. The cost of utility-scale storage has fallen nearly 70% between 2015 and 2018, according to the U.S. Energy Information Administration. And it has fallen even further since. 

The MMWEC last month paused the plan for at least 30 days to address community concerns and reevaluate possible alternatives. The group contends that the facility’s emissions would be lower than those of 94% of fossil-fueled peaker plants in New England. Since then, two of fourteen municipal utilities that signed on to the project have filed paperwork asking to be released from the agreements. 

Energy News has more on this story.

More Energy News

• Massachusetts Debates Energy Efficiency Draft Plan

• OTR: Rep. Lori Trahan taking patient approach with green energy

• State “Green Team” award recognizes student efforts in environmental stewardship

• NH offshore wind power: develop renewable energy Gulf of Maine project

Transportation

Massachusetts & Rhode Island Only Two States Left in TCI Agreement

Connecticut is the latest state to drop out of the Transportation & Climate Initiative (TCI) agreement as Gov. Ned Lamont abandoned the program amid state budget negotiations on Friday. Only Massachusetts, Rhode Island, and Washington, D.C. are left.

TCI, a regional collaboration originally consisting of 13 Northeast and Mid-Atlantic states and the District of Columbia was developed to promote clean energy transportation. Under the plan, transportation fuel suppliers, or wholesalers bringing fuel into Massachusetts, would be required to purchase “allowances” (aka carbon credits) for any carbon dioxide their fuel produces. 

According to original estimates, CTI could bring in about $500 million a year in new revenue for Massachusetts alone, to be invested in clean transportation solutions.

Visit the Boston Herald for more info.

More Transportation News

• Gas prices rising in Massachusetts; Here's how much they rose in the past year - masslive.com

• Massachusetts Looks to Electrify Ridesharing, Increase E-bike Access

• Trying to put the brakes on car ownership

• Local startup hopes to revolutionize coastal transportation - Boston, Massachusetts

• MBTA looks at cars, tracks as cause of derailment that sidelined Springfield-built CRRC cars

• Evaluating the competition between autonomous vehicles and public transit

• Connecting Subway Lines Could Cost $850 Million, Take Nearly 10 Years

• Amtrak CEO opposes CSX-Pan Am Railways deal

Real Estate

Two Mass. Cities Top List of 100 Safest 

Home prices in Hopkinton, Massachusetts, and Franklin, Massachusetts are about to go up. The two cities have topped Safewise’s list of the top 100 safest cities in the country. 

More than two-thirds of the cities that made the list are in New England and the Mid-Atlantic region. And Massachusetts has the second-highest number of cities on the list with 17. 

Hopkinton, which is east of Worcester has a population of just over 18,500 and a median income of over $95,000. Franklin, just west of Foxboro, is home to more than 33,000 residents with a median income of just under $102,000.

“These crime-curbing communities have cause to celebrate,” writes Safewise. “The 100 cities in our roundup boast a collective violent crime rate that’s 92% lower than the national average. And, when it comes to property crime, our top 100 locales report 79% fewer property crimes per 1,000 people than most of the US.”

The full report can be found here.

More Real Estate

• Counties with the lowest home prices in Massachusetts

• Needham: May real estate deals topped by $40 million hotel transaction

• Nantucket Voters Reject Proposal to Limit Short-Term Rentals

Cannabis

Indoor Cannabis Cultivators Using 10% Of All Industrial Energy Use in the Bay State

According to estimates by the Northeast Sustainable Cannabis Project, indoor cannabis cultivation is responsible for about 10% of all industrial electricity consumption in Massachusetts. That’s pretty high.

According to Cannabis Business Times, the 10% estimate “is based on current indoor cultivation lighting standards and the assumption that half of the growing canopy square footage authorized for use is currently in use.” 

Back in 2018, the Massachusetts Department of Energy Resources estimated that the energy required to power grow lights for 660,000 square feet of canopy would negate the entire energy savings of $11 million from DOER's program to convert more than 130,000 streetlights statewide to LEDs. 

Since then, the Cannabis Control Commission has authorized more than 1.1 million square feet of indoor marijuana cultivation. That’s about four times the area of outdoor cultivation facilities in the state. Moreover, the cannabis sector in Mass. is expected to triple in size by the time supply and demand level out. 

More Cannabis News

• Massachusetts Cannabis Control Commission Launches New Delivery License - Cannabis & Hemp - United States

• https://patch.com/massachusetts/boston/massachusetts-marijuana-delivery-starts-next-week-patch-pm

• Green Thumb buys Massachusetts medical marijuana operator

• Senate narrowly votes to legalize marijuana in Connecticut

• Great Barrington Voters Reject Stricter Cannabis Zoning Bylaw, Downtown Parking Plan At Town Meeting

Our First Post-COVID Summer

As the pandemic winds down and Massachusetts comes out of hibernation, attention is turning to figuring out how we’re all going to have a great summer. But no matter how the summer shakes out, there are going to be some winners and some losers.

In politics, projecting winners and losers in the upcoming elections depends highly on who’s in and who’s out of each race. Voters are on the edge of their seats as announcements are expected to come this summer.

On the climate crisis front, renewable energy is winning market share while big oil is losing ground. The hospitality industry is winning now that emergency restrictions have all but ended, but Uber and Lyft are losing money due to a lack of drivers. And we’re not sure who’s going to be the winner and who’s going to be the loser in a battle between the Commonwealth and New Hampshire over income taxes on out-of-state workers.

And with that, let’s delve into Mass. political and business news-of-the-week: 

Politics

The Summer Blockbuster Coming To a Voting Booth Near You

“A blockbuster showdown for governor,” is the Boston Globe’s prediction for the upcoming gubernatorial race. The report also mentions the “wide-open race to be the state’s top prosecutor,” and a ”primary between a secretary of state on the verge of history and a fellow Democrat trying to unseat him.” It sounds like those dramatic narrators in 1980s movie trailers.

The story revolves around the state’s 2022 state election cycle. “It’s greased by uncertainty, and fueling the potential for a gamut of history-making races,” writes, the Globe’s Matt Stout, “and possibly, widespread change at the top of state government.”

The suspense is intense. An ensemble of six statewide constitutional officers, including Governor Charlie Baker, Attorney General Maura Healey, and Secretary of State William F. Galvin, have not yet said whether they’ll seek reelection, leaving room for a major twist and making the ending very hard to predict.

The Boston Globe has this detailed review of the blockbuster event of the summer coming soon to a voting booth near you.

More Politics

• Will Massachusetts Gov. Charlie Baker run for re-election?

• As the Massachusetts GOP battles for relevance, its leader doubles down

• Massachusetts House Majority Leader Claire Cronin quiet on possible appointment as ambassador to Ireland

• Massachusetts lawmakers consider ways to address student debt crisis

Business

A Biden administration official is siding with Massachusetts in a lawsuit brought by New Hampshire’s Gov. Chris Sununu over the state’s right to collect income tax from remote workers who live out of state. As you might guess, this case will have a rippling effect that could shape the future of remote work as numerous other U.S. states are also grappling with this dilemma. 

Currently, the Bay State requires out-of-state workers to pay 5% income tax. (Oddly, however, for those who commute to Mass., say, three out of five workdays, only 40% of the wages would be taxable.)

Sununu calls the new rule a “direct attack on the New Hampshire Advantage, attempting to pick the pockets of our citizens,” adding that more than 100,000 New Hampshire residents may be impacted by the rule. 

In a major turn of events in this case, Elizabeth Prelogar, the acting U.S. solicitor general, filed a brief Tuesday siding with Massachusetts. The brief states that the U.S. Supreme Court should not hear New Hampshire’s case against Massachusetts. 

“Individuals often have tax obligations to multiple sovereigns,” says Prelogar. “Although New Hampshire might prefer that its residents not pay personal income taxes to any government, an independent tax obligation falling on a state’s residents generally is not an injury to that state’s own sovereign prerogatives.”

Not everyone agrees. For example, Paul Diego Craney, spokesperson for nonprofit conservative think tank the Massachusetts Fiscal Alliance, says, “President Biden’s administration has continually advocated for new taxes, higher taxes, and more complex taxes,” adding that it “comes as no surprise that the president is now standing shoulder-to-shoulder with Governor [Charlie] Baker in their quest to tax workers who have virtually no ties to the state.” (We’re taking that with a grain of salt considering the group would likely find a different complaint if the Biden Administration sided with New Hampshire.)

Sununu remains confident the Supreme Court will hear the case. “Try as they might, overreach by Washington politicians and efforts by the Biden administration will not deter [New Hampshire] from fighting against Massachusetts’ unconstitutional attempt to tax our citizens,” Sununu said.

Read all about it at MassLive.com.

More Business

• Massachusetts launches summer restaurant campaign - Boston Business Journal

• Mass. businesses growing more concerned about worker shortage

• The Massachusetts Senate votes to spike these three tax breaks

• Mass. Food Delivery Fees: Restaurants Concerned Once Caps End 

• Here's how 13 Mass. companies are planning to go back to the office

• Boston nightlife buzzing after Massachusetts lifts COVID-19 restrictions

Energy

Big Oil Getting Swept Up In Renewables Movement

Big changes are afloat as big oil starts to examine the global repercussions of climate change. The industry is reeling recently from several major setbacks. As a sign of the time, the obstacles are coming not just from government regulators, but also from the corporate shareholders themselves. 

British oil giant BP (which got out of the solar business over a decade ago) sees the writing on the wall and is scurrying to bolster its renewable energy business. For one example, last summer, BP sold its petrochemicals business and partnered with Norway-based Equinor to develop four wind energy projects off the coast of Massachusetts. 

BP is also planning to significantly expand its renewables footprint with the purchase of 9 gigawatts of solar projects for $220 million and plans to increase its annual investments in wind and solar projects by 10-fold to around $5 billion a year. Meanwhile, the company is working on plans to reduce its oil and gas production.

The acquisitions and changes in direction are intended to help BP reach a goal of growing its renewable energy output to 20 gigawatts by 2025 and 50 gigawatts by 2030, and to achieve net-zero emissions by 2050. 

The Houston Chronicle has more on this story.

More Energy News

• Mayflower US offshore wind JV in pole position for key Massachusetts grid link

• Hot Question for Energy Storage Answered by Massachusetts Fire Appeals Board

• 3Q: The socio-environmental complexities of renewable energy

• FACT SHEET: Biden Administration Opens Pacific Coast to New Jobs and Clean Energy Production with Offshore Wind Development

Transportation

“Driver’s Wanted” — for Boston Rideshares

With covid restrictions lifted, the Mass. hospitality industry is optimistic about a resurgence. However, getting back to normal (or settling into a new normal) isn’t going to be as easy as chicken pie. There are bound to be numerous challenges.

One of those challenges is a dearth of rideshares in and around Boston. Visitors to the Bay State are saying that a lack of Uber and Lyft drivers is spoiling their vacations.

“I had to try Uber 3 times and couldn’t get a car. Lyft finally came through after about 15-20 minutes of trying,” said Lakesha Carter, who is visiting from Florida. “It was a little scary because I’m here as a solo traveler, just to explore the city and it almost felt like oh boy, what am I going to do if I don’t find a car?”

In a statement, Uber says the company is offering incentives to gig workers to get back into the driver’s seat. “In 2020, many drivers stopped driving because they couldn’t count on getting enough trips to make it worth their time,” adding that now in 2021, “there are more riders requesting trips than there are drivers available to give them.”

Source: Visitors to Boston say shortage of rideshares hurting travel

More Transportation News

• Boston's 'soul-crushing' traffic creeping back after pandemic dip

• MBTA to Shut Portion of Green Line D Branch in June for Work

• Domestic airfare prices climbing amid reluctance to travel overseas

• JetBlue will begin flying to two destinations from Worcester later this year

Cannabis

Trulieve Brand Cannabis Coming to Mass. June 3

Multi-state operator Trulieve Cannabis Corp. will be hawking its products at its Northampton, Massachusetts shop beginning June 3. Trulieve, which recently secured a $2.1 billion deal to merge with Harvest Health & Recreation Inc, recently obtained the Massachusetts Cannabis Control Commission's approval to begin recreational and medical marijuana sales at the location.

The merger with Harvest Health gives Trulieve operations in 11 states, with a cultivation and processing capacity of 3.1 million square feet spread across 22 facilities, plus 126 medical and recreational dispensaries. The combined company is expected to generate around $1.2 billion in 2021.

"As the first adult-use market on the East Coast, Massachusetts is a leader in the cannabis industry, and we are excited to open our doors here," Kim Rivers, CEO of Trulieve, said.

Read more at Benzinga.

More Cannabis News

• Innovative Industrial Properties Acquires Massachusetts Property and Enters Into Long-Term Lease with Temescal Wellness

• Taunton’s Freshly Baked becomes first cannabis company in Massachusetts to get approval to start home delivery

• Equity cannabis businesses in Massachusetts can now apply for delivery operator license

• Green Thumb Closes on Acquisition of Massachusetts Cannabis Operator Liberty Compassion Inc.

• Chicopee gives preliminary approvals to new $15 million cannabis cultivation business

• Massachusetts cannabis retailer ordered to pay fee, but lawsuit continues

• Chicopee gives preliminary approvals to new $15 million cannabis cultivation business

• Massachusetts amendment pushes for CBD in food, sale of hemp flowers

Our Uneven Progress

The mayoral race is simmering in Boston as the reopening of the state commences. Ironically, although the state suffers record-high joblessness, employers are having trouble filling newly opened position and the state’s hospitality industries continue to atrophy with hotels alone predicted to shed another 14,000 jobs this year. 

And for the masses of unemployed labor workers in the Bay State, one possible deterrent to job hunting is the generous unemployment benefits that have been doled out over the past year. 

In energy and transportation news, the state has opened up an RFP that, once awarded, will eventually double the state’s current wind generation. Also, the Fed is making billions of dollars in grants available for improvements and expansion to public transportation infrastructure. Both of these ambitious projects will create plentiful well-paying jobs.

Meanwhile, the state has begun to open up thousands of acres of agricultural land to hemp and marijuana growers, and a judge smacked down a federal eviction ban.

Let’s get inside and unpack this week’s news: 

Politics

Mayoral Candidate Jon Santiago On The Scrum

The Scrum, GBH News' political podcast, with Adam Reilly and Peter Kadzis, has been hosting an ever-expanding roster of guests. In the latest episode, Jon Santiago talked about laying the groundwork to win Boston’s 2021 mayoral contest. (Former mayor Marty Walsh is off to Washington after being confirmed by the Senate to head the U.S. Labor Department.)

In the Scrum interview, Santiago expressed his hopes to land key endorsements from elected officials and also to win the support of labor unions. Santiago also made some revelations about his personal history. He said that he has no intention of criticizing former Mayor Marty Walsh’s stewardship of the city but he did criticize acting Mayor Kim Janey’s decision to delay Boston’s reopening.

Listen to the podcast here: Jon Santiago On The State Of the Mayor's Race, Marty Walsh's Legacy and Kim Janey's Tenure

More Politics

• Mass. Senate President Karen Spilka seeks input on intergenerational care

• The Massachusetts millionaire’s tax is back, and it’s a little different this time

• Massachusetts Passes One Of The First State-Wide Laws On Facial Recognition

• Massachusetts Plays Catch Up In Offering 'Early College' Courses In High School

Business

Business Leaders Press For Speedy Reopening As Hospitality Industry Continues to Shed Jobs

The Bay State is moving ahead with reopening plans this week. However, some business leaders are complaining that Gov. Charlie Baker isn’t moving fast enough and are asking that the current reopening timeline be moved up by about a month. Baker’s plan calls for Massachusetts’ to be fully functional again by Aug. 1.

“This is all about balance,” said Jon Hurst, president of the Retailers Association of Massachusetts. “We’ve done very well on vaccinations and we need to start moving toward reopening. Worst-case scenario, I hope we’re at 100% by July 4th weekend.”

One of the big challenges now is getting people to come back to work after a nice, long, paid stay-cation. Although unemployment numbers are up nationwide, Mass. businesses are having trouble filling job vacancies.

Although service industry hirings are on the rise again, The American Hotel & Lodging Association projects that Massachusetts could lose more than 14,000 hotel jobs in 2021 due to ongoing reticence to travel post-pandemic. (That’s in addition to the nearly 17,000 hotel jobs lost in the state over the past year.)

All told, about 70% of the 43,000 hotel workers lost their jobs since 2019. In the wider hospitality and leisure industries, about 59% or 225,000 jobs were lost after emergency measures kicked in. That is according to the U.S. Bureau of Labor Statistics. 

More Business

• Baker-Polito Administration Celebrates COVID-19 Business Relief Program, Awards Final Round of Grants

• Western Mass. expected to see busy summer for tourism, but picture more uncertain for Boston

• State Updates Tax Relief For Certain Businesses

• State sues marketing firm for role in opioid crisis

Energy

Mass. RFP Expected To Double Wind Output

This big news in Mass. energy this week: A 1,600-megawatt procurement will double the amount of energy Massachusetts utilities have under contract since a 2016 clean energy law kicked in. 

Energy and Environmental Affairs Secretary Kathleen Theoharides said this in a statement:

"This new solicitation will not only procure more affordable offshore wind energy for residents than ever before, but will also direct greater investment in economic development while requiring offshore wind developers to create comprehensive plans to ensure the Commonwealth's environmental justice and minority communities share equitably in the benefits of this growing industry." 

Currently, Vineyard Wind I and Mayflower Wind, are under contract to provide 1,600 megawatts. The new 140-page RFP seeks bids of "at least 400 MW and up to 1600 MW of Offshore Wind Energy Generation" and requires bidders to submit workforce diversity, equity, and inclusion plans, as well as potential impacts on environmental justice populations and host communities. Moreover, the nominal levelized price of any proposal must be less than $77.76 per megawatt-hour.

There seems to be a difference of opinion among stakeholders as to the numbers. Some claim the price cap should be set at the $77.76 per MWh price that DPU approved. Others such as National Grid are gunning for a lower $70.26 per MWh price cap.

Bids for the lucrative contract are due by Sept. 16. No preferred bid size has been specified. 

Here are numerous sources on this story:

• Massachusetts launches 1.6GW offshore wind tender

• Mass. sees more competition on offshore wind infrastructure

• Massachusetts opens 1.6GW offshore shoot-out

• Offshore Wind Pricing Plan Stirring Crosscurrents

More Energy News

• Avangrid sees Vineyard Wind approval coming, power onshore in 2023

• Agilitas Energy starts work on 3 MW/9 MWh lithium-ion battery for Rhode Island

• Clean energy roadmap not strong enough, activists say

• Largo Resources Picks Site for 1.4 GWh Battery Plant

• Stop & Shop's Green Energy Facility Marks Five Years of Turning Food Waste Into Sustainable Energy

Transportation

Sen. Markey Pitches Investments in N.E. Railways

“If we build it, they will come,” says Sen. Ed Markey who is pitching investments in passenger rail for Massachusetts and other under-connected communities across the Northeastern U.S. by reintroducing the BRAIN (Building Rail Across Intercity Networks To Ride Around Interior of the Nation) TRAIN Act. 

Under the proposed bill the U.S. Department of Transportation would create a competitive grant program offering up to $5 billion in annual grants to fund rail projects including the East-West rail effort to link Springfield and Western Massachusetts with communities stretching from New Haven to Buffalo.

This is in addition to President Biden’s $2 trillion American Jobs Plan which earmarks $85 billion to modernize public transit plus another $80 billion for Amtrak upgrades.

Rail expansions throughout the state will cost between $2.4 and $4.6 billion. Estimates suggest the investment could draw a quarter to a half-million new riders annually.

Read all about it at MassTransitMag.com.

More Transportation News

• Massachusetts Port Authority revisiting climate action plans | Local News | gloucestertimes.com

• A potential Red Line-Blue Line connector is back in the spotlight

• Advocates Say The BRAIN TRAIN Act Could Transform Massachusetts. Will It Pass?

• Regional Transit Authorities Win Funding Victory in House Budget -

• $1,000 Landing Fee Proposed For Massachusetts Private Aircraft

• Study Sees Big Financial Benefits For CT and MA From Improved Passenger Rail Lines

Real Estate

Federal Judge Strikes Down Eviction Ban

In his ruling on a lawsuit brought by real estate industry groups, a federal judge has struck down an emergency ban on evictions in the United States, putting millions of renters at risk of being ousted from their homes. US District Judge Dabney Friedrich ruled that the eviction ban clearly overstepped the authority of the CDC.

The Biden administration, which extended the ban originally instituted under the Trump administration, says it plans to appeal Wednesday’s decision.

This action is “the latest in a string of decisions that chip away at eviction bans that have protected renters, and frustrated landlords, for more than a year,” according to the report in the Boston Globe.

A similar eviction ban in Massachusetts expired in mid-October of 2020. 

More Real Estate

• https://patch.com/massachusetts/wakefield/bizposts/local-update/218753/ma-homeowners-eligible-for-3-252-mortgage-relief

• New home prices climbing higher with lumber business ‘crisis’

• Housing starts slowed in Greater Boston, Massachusetts in 2020

• Frenzied Real Estate Bidding Drives Mass. Home Prices Up

• MA home inspector warns buyers against waiving inspections

• Local Officials And Congressional Leaders Decry Investors Who Put Affordable Housing At Risk

• Hunt Real Estate buys All American Properties

• A Revamped Penthouse Loft Hits the Market at $2.9M in Boston, MA

Cannabis

Bay State Opens Up Agricultural Reserves To Cannabis

The Massachusetts Department of Agricultural Resources (MDAR) has released guidance under a 2020 plan to allow cannabis and hemp cultivation on more than 73,000 acres of land belonging to the state Agricultural Preservation Restriction (APR) and Farm Viability Enhancement programs.

According to the agency website, the APR program, instituted in 1979, pays farmland owners the difference between fair market value and the agricultural value of their farms in exchange for permanent deed restrictions that conserve the land for agricultural use.

And according to the state website, the Farm Viability Enhancement Program provides business and technical assistance to farmers through grant funding in exchange for signing an agricultural covenant on the property.

In a document titled, “Hemp and Marijuana Production on APR and Farm Viability Protected Lands, Apr. 28, 2021,” the Mass. Department of Agricultural Resources writes:

“After reviewing these concerns and evaluating the evolving state of the law as it relates to the legalization of medical and adult use marijuana in Massachusetts and cultivation of hemp in the United States, the Department has been reviewing its policies related to hemp and marijuana and evaluating whether the Department may recognize such activities as horticultural uses in a manner consistent with the laws and intent of the APR Program.” 

More details are available at these fine hemp and cannabis industry news outlets: 

• Massachusetts Opens Up Hemp & Cannabis Cultivation on Protected Farmlands

• Massachusetts Farmland Unlocked For Cannabis Cultivation

• Massachusetts opens land for hemp farming

More Cannabis News

• Massachusetts sets marijuana sales records around 4/20 holiday

• The Grow-Off cannabis competition is coming to Massachusetts, putting a spotlight on craft and small growers - masslive.com

• Uber's interest in cannabis delivery highlights sector's potential and pitfalls

• What Is Biden's Beef With Cannabis?

• How High Are Taxes on Recreational Marijuana in Your State?

A Newer Normal

According to the 2020 federal census, the Massachusetts population has passed the seven million mark. Bay State residents now account for 0.1% or one one-thousandth of all humans on earth. And that number doesn’t include the state’s massive student population.

Things are looking up for most of those seven million as the state’s economy came roaring back in the first quarter of 2021, and at a much faster pace than the national average. That is according to economic analysts at MassBenchmarks. “Real gross domestic product in Massachusetts increased at an 11.3 percent annualized growth rate in the first quarter, compared to the 6.4 percent growth rate in the nation's economy,” they say.

This trend is expected to continue into the foreseeable future for a number of encouraging reasons. For starters, CDC data shows that New England is a national leader in vaccination rates. Witness the fact that mass vaccination sites are beginning to tear down as the state moves to a community outreach-style vaccination program. All the hard work is paying off as more than one-third of residents have been fully vaccinated and the state has seen its lowest single-day covid case count since November. 

Citing progress in the Battle of the Bend, Gov. Baker lifted the outdoor mask mandate on April 30th. And by May 10th amusement parks, water parks, and theme parks will be allowed to reopen at 50% capacity, and ballparks, indoor stadiums, and arenas will be permitted up to 25 percent capacity — as long as social distancing is maintained. Road races and other large outdoor organized group athletic events will also be permitted, Baker said on Tuesday. The governor is gunning to have COVID restrictions fully lifted by Aug. 1.

Also happening this past week, the House passed its version of the state budget, and Massachusetts continues to be a national leader in alternative energy technology and cannabis banking. And, strangely, who would have ever guessed that the Commonwealth would actually welcome news of increasing traffic in Boston? File under “The New Normal.”

Now, let’s get on with this week’s Policy Note.

Politics

Massachusetts House Approves Its Version of Fiscal 2022 Budget

Last week we told you about the Mass. House of Reps. deliberation over more than 1,100 proposed amendments to the fiscal 2022 state budget. They seem to have ironed it all out and passed the plan on to the Senate for further deliberation. 

The proposed $47.7 billion spending plan aims to set the state on a path toward post-pandemic economic recovery and the shoring up of the state’s education systems plus $94 million in funding for regional transit authorities.

One of the amendments to the budget raises the state’s existing requirement for 4,000 megawatts of offshore wind power to at least 5,600 megawatts and requires electric companies to enter into long-term contracts for offshore wind power by June 30, 2027. The budget also includes $10 million in offshore wind career training.  which takes effect July 1. 

Read all about it at MassLive.com.

More Politics

• OTR: What does latest Census mean for Massachusetts politics? 1 HR – WCVB Boston

• Warren reflects on 2020 loss and gender in new memoir

• Fitch Rates Massachusetts' $600 Million GO Bonds 'AA+', Outlook Stable

Business

$28.6 Billion in Restaurant/Service Grants Up For Grabs — But Hurry!

Massachusetts restaurants and service businesses are now eligible for grants up to $10 million via the state’s new $28.6 billion Restaurant Revitalization Fund. The program is part of President Joe Biden’s $1.9 trillion American Rescue Plan. 

According to the National Restaurant Association, about 93% of Mass. restaurant workers were let go in more than 211,000 layoffs and furloughs. That’s about a 20% to 25% drop in 2020 according to Stephen Clark, vice president of government affairs for the Massachusetts Restaurant Association.

The following businesses are eligible to apply for the grants:

• Restaurants

• Food stands, food trucks, food carts

• Caterers

• Bars, saloons, lounges, taverns

• Snack and nonalcoholic beverage bars

• Bakeries (onsite sales to the public comprise at least 33% of gross receipts)

• Brewpubs, tasting rooms, taprooms (onsite sales to the public comprise at least 33% of gross receipts)

• Breweries and/or microbreweries (onsite sales to the public comprise at least 33% of gross receipts)

• Wineries and distilleries (onsite sales to the public comprise at least 33% of gross receipts)

• Inns (onsite sales of food and beverage to the public comprise at least 33% of gross receipts)

• Licensed facilities or premises of a beverage alcohol producer where the public may taste, sample, or purchase products.

With so many Mass. businesses in need of relief, the $26 billion is expected to dry up quickly. Applicants need to visit the Small Business Administration website.

Also of note, included in the House budget is an added $2 million for the Massachusetts Tourism Trust Fund. If the line item makes its way into the final budget it would bring the total to $7.2 million more than the previous year. It would also loosen restrictions on how much government funding regional tourism councils could receive. 

Again, MassLive.com has more on this story as well. 

Also read: How Massachusetts Restaurants Fared in the First Quarter of 2021 and Massachusetts tourism, cultural groups could see funding boost from Mass. House lawmakers

More Business

• These are the best hospitals in Massachusetts according to safety report

• Massachusetts Supreme Court issues confusing decision on Section 230

• Hotel industry group predicts slow job recovery

• Another class of biotech companies are about to go public in Massachusetts

Energy

Biden’s Moonshot Offshore Wind Ambitions Could Cut Electric Costs In Half by 2050

With President Biden floating a moonshot offshore wind project, researchers at the U.S. Department of Energy and the University of Massachusetts Amherst estimate that the future costs of onshore and offshore wind combined could be cut by a third by 2035 and nearly halved by 2050. 

“We’re on the precipice of a revolution that we’ve been waiting for, for too long,” says Bill White, head of offshore wind at Avangrid Renewables, a partner in Vineyard Wind, the first scheduled major offshore wind farm on this side of the Atlantic. 

According to developers, Vineyard Wind will generate enough power for 400,000 homes and cut emissions equivalent to taking 325,000 cars off the road each year. Combined with Mayflower Wind, another 800 MW project south of Martha’s Vineyard, ratepayers will save $3.8 billion over the 20-year life of their contracts.

Take a long breath for a deep dive into this topic here: Biden’s new moonshot: An offshore wind industry to rival Europe’s

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• Solar Power + Bees = Extra Benefit for Massachusetts

• Environmental justice advocates hold Massachusetts accountable

• Construction deal reached for $15m Massachusetts biomass project

• Some worry wind and solar will gobble up forests and farms

• On course to create a fusion power plant

• Utilities testing geothermal heating and cooling | Local News | gloucestertimes.com

• Environmentalists surprisingly divided over clean energy projects in Mass., Maine and elsewhere

Transportation

When Increasing Boston Traffic Is Good News

Who would have ever suspected that increasing traffic in Boston could be welcome news? It’s all part of the so-called “new normal” brought on by a global pandemic and subsequent emergency lockdowns. While sitting in traffic is never fun, the uptick in traffic is another promising sign that the Mass. economy is on the road to recovery. 

Although traffic has been increasing in the Bay State and in Boston, in particular, it hasn’t yet U-turned to pre-pandemic levels. Between March 29 and April 11, traffic volume was down between 5 and 14 percent from 2019 levels. That is according to the state Department of Transportation. Although that sounds bad, compare it to last April when traffic plummeted by about 60 percent.

The Boston Globe has this report: Traffic is getting worse in Massachusetts (but it's not back to pre-pandemic levels... yet)

More Transportation News

• Listen: What Biden's Infrastructure Plan Means For Transportation In Massachusetts

• Post-pandemic behaviors may dictate new transportation options - Boston Business Journal

• Massachusetts exit renumbering project moves to Interstate 93

• There's really nothing blocking the path to free buses

• MBTA Control Board commits to funding Transit Priority Group as part of FY22 budget

Real Estate

Home Prices Continue to Rise

Just when you think stock and crypto prices can’t go any higher… they do. And the same is now true for residential real estate here in Massachusetts. We’ve been telling readers for weeks now about how the Commonwealth’s homes market is blasting off. Home prices in the state are now well on their way to the moon. 

According to data from the Massachusetts Association of Realtors (MAR), the median sale price of a single-family home launched to $485,000 in March, up 16.9 percent from 2020. Condo prices are also on the rise, up nearly 7 percent, to $459,450. March saw 3,385 single-family home sales closed (up from 2,779 in Feb.) and 5,804 new properties listed in February (up from 3,393 in Jan.). Also, 1,922 condos were sold in March (up from 1,298 in Feb.). That’s 26 percent more than were sold in Mar. 2020.

President of MAR, Steve Medeiros said in a statement. “We're seeing a very busy, competitive spring market this year as more buyers line up and sellers are feeling more comfortable putting their homes on the market compared to this time last year,” adding, “While prices are increasing along with mortgage rates, we're encouraged by the increase of new listings and seeing some more inventory come on the market."

WBUR has this report: Frenzied Real Estate Bidding Drives Mass. Home Prices Up

More Real Estate

• Realtor: 4 things first-time Massachusetts home buyers need to do

• Standard Communities Acquires L.P. Interest in Boston Affordable Property, Increasing Its Presence in Massachusetts

• State weighs appeal of Superior Court decision on Boston waterfront - Boston Business Journal

• This Sudbury Home Costs More Than A Castle In France

Cannabis

Massachusetts Banks Lighten Up To Marijuana

Last week we told you how the U.S. House had passed the SAFE Banking act — again. Should it survive the Senate and be signed by President Biden, the measure would make it far less risky for banks to do business with marijuana-touching businesses by preventing federal agencies from penalizing those that offer financial services to cannabis concerns.

While the fate of the bill remains uncertain, banking is already becoming easier for Mass. marijuana. That is according to a report at the Boston Business Journal which says at least six financial institutions are now servicing the sector with at least one lending directly to cannabis clients.

Cases in point:

• In 2018, only three Mass. banks were open for business to the cannabis industry — Medford-based Century Bank, Swansea’s BayCoast Bank, GFA Federal Credit Union in Gardner. 

• Last month, Eastern Bank announced it would acquire Century and take over its cannabis division. 

• Recently, Northern Bank & Trust in Woburn announced it would be hiring a security deposit relations manager who would be tasked with growing the bank’s cannabis clientelle.

• Hudson-based Avidia Bank which is affiliated with a hemp and CBD payment company out of Arkansas has begun working with cannabis clients.

• Several financial institutions including BayCoast, GFA, and Century have been lending to real estate companies involved in the cannabis sector.

Steven Hoffman, chairman of the Mass. Cannabis Control Commission says that he continues to discuss the matter with at least three more banks starting due diligence around entering the industry.

“I know any bank that is servicing the cannabis business is taking some risk, given federal law,” Hoffman said. “I’m grateful for those who have stepped up because they have made an incredible contribution to public safety.”

The Boston Business Journal has more on this story.

More Cannabis News

• Ascend opens first recreational marijuana dispensary in downtown Boston

• Massachusetts opens land for hemp farming

• Top Massachusetts Court in a Haze Over Local Control of Cannabis

More of the Latest Massachusetts News

• Massachusetts Tops List Of The Best States For Working Moms, Study Says

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• Largest Software Development Firms in Massachusetts - Boston Business Journal

• Man engineers so-called 'perfect grass' seed: Made in Mass.

Positive Signs Continue for Post-COVID Massachusetts

With more than half of the population of Massachusetts now fully vaccinated, and the cleanup of the economic train wreck caused by the pandemic well under way, things are looking up for businesses in the Commonwealth. Another $30 million-plus in small business grants were handed out this past week while lawmakers try to decide how best to spend the reservoir of federal money that will be flowing into the state this summer.  

Over the past week, the House has been picking through the next budget and has scared up more than a thousand potential amendments to be debated and decided upon before the spreadsheets can be passed on to the Senate. With 1,157 proposed amendments, to be exact, it’s a lot of important work.

In other news, real estate in Massachusetts is on fire and setting price records as inventory becomes more and more scarce. With companies like Apple and Amazon planning to expand their footprints, Boston is fast becoming the San Francisco of the East Coast.

Also in this week’s news we’ll tell you about 12 of the top 10 greenest cities in Greater Boston and the recent passage by the U.S. House of Representatives of the SAFE Banking Act which could be a major breakthrough in federal cannabis policy reform. On top of that, you’ll find a couple dozen more links to other important stories impacting the Bay State this week.

So sit down and relax and dig in. This will only take a few minutes and then you can get on with your day.

Politics

1,157 Amendments Filed For House Budget Proposal

Last week we told you about the $47.6 billion budget plan proposed by the Massachusetts House. Items on the wishlist of nearly 1,200 amendments include earmarking of funds for public schools, social services, and local economies hit hard by the pandemic.

Right out of the gate, the House budget is $2 billion more than Gov. Baker’s proposed budget. Plus it’s a yearly tradition for lawmakers to pile on local funding proposals for their home districts.

Here are some of the amendment proposals as reported by MassLive.com:

• Funding increases for community centers, hospitals, volunteers and nonprofits who have helped Western Massachusetts residents navigate the challenges of the COVID-19 pandemic. 

• Relief to farmers and other businesses hit hard by the economic downturn.

• $100,000 to Volunteers in Medicine Berkshires, a Great Barrington-based clinic that serves seniors, immigrants and low-income residents without insurance. 

• $3 million to preserve the Rural Schools Aid funding for grants to cities, towns, regional school districts, county agricultural schools, vocational schools, and other schools.

• $40 million for districts that saw fluctuating enrollment numbers during the 2020-21 school year.

• An amendment to allow farmers to deduct 25% of the value of certain food donations as charitable contributions on their taxes.

• $30 million additional funds for the Food Security Infrastructure Grant (FSIC) program — $25 million to for-profit applicants and $5 million for nonprofit applicants — bringing the total up to $38.6 million.

• $500,000 for the UMass Center of Springfield. 

We won’t list the other 1100+ amendments here, but we’ll certainly update this story as it develops. 

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Business

$30.4 Million More In Grants Awarded To Bay State Businesses

Another $30.4 million in grants has been doled to more than 600 Bay State businesses — 100 of which have not received any prior aid — through the COVID-19 business relief program administered by the Massachusetts Growth Capital Corporation (MGCC). The grant program is part of the Baker-Polito Administration’s effort to foster economic recovery. 

This brings the grand total to over $680 in grants to more than 15,000 businesses across the state. Of the 600-plus recent grants, 126 were minority-owned, 115 woman-owned.

Last week, the Administration announced the award of 37 grants totaling $5 million to cities, towns, and non-profits through the Regional Pilot Project Grant Program. This week, the Administration awarded $1.6 million to 59 tourism organizations, chambers of commerce, and cities and towns through the new Travel and Tourism Recovery Grant Pilot Program.  

Also, as part of the Partnerships for Recovery 125 communities are working with consultants to be granted a portion of $9.5 million awarded through the Local Rapid Recovery Planning program. The state has also invested $21.1 million in municipal projects through the Shared Streets and Spaces program since June 2020.

Read all about it at ABC6.com

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• Could Mass. make the film tax credit permanent? Proposal added to House budget

• Massachusetts has a ban on assault weapons. Some lawmakers don’t want them made here, either.

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• Business owners in MA call on lawmakers to address unemployment insurance hikes

• Bank of America pledges $1 million to King Boston efforts, the biggest corporate gift so far

Energy

The 12 Greenest Towns of Greater Boston

Out of 40 towns and cities within the 128/95 border, 12 have been dubbed the “greenest” of them all in a report by Boston Magazine. Municipalities were assessed on 19 indicators including “the percentage of the town or city’s fleet of ordinary passenger vehicles and light trucks are electric.” 

Communities received zero to five points for each indicator with a maximum possible score of 95 points. Actually, 12 municipalities made the Top 10:

10. Belmont (70 points) 

9. Salem and Brookline (tie 75 points) 

8. Lexington and Winchester (tie 76 points)

7. Somerville (77 points)

6. Melrose (78 points)

5. Medford (80 points)

4. Boston (81 points)

3. Newton (82 points)

2. Arlington (87 points)

1. Cambridge (90 points)

The full list of 40 cities and towns in the running can be found here. 

And a full list of the 19 green city indicators can be found here.

Check out the complete story at Boston Magazine. 

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Transportation

Sagamore Bridge Repairs Completed Ahead of Schedule, Bourne Bridge Next

Sometimes it seems like road repair work can go on forever. For a change, work to maintain the structural integrity of the Sagamore Bridge is getting done ahead of schedule. According to a report at the Boston Herald, all lanes on the Sagamore are now open. 

With that out of the way, the U.S. Army Corps of Engineers New England District will now move its equipment over to the Bourne Bridge and start repair work that had initially been scheduled for the fall. 

Starting Saturday, the Bourne Bridge will be reduced from two lanes in each direction to a single 12-foot lane in each direction 24 hours a day until Memorial Day weekend — just in time for summertime Cape traffic. 

The U.S. Army Corps of Engineers New England District said in a statement:

“Motorists planning to use the Bourne Bridge during this timeframe should be aware that travel delays are likely to occur during the morning and afternoon peak travel periods each day. Signs, traffic control devices and police details will be used at all times that work is being performed on the bridge.”

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Real Estate

Home Sales Continue To Set Records

Massachusetts homes are on fire — metaphorically speaking, of course. Home prices in the state have set records again in March according to the Warren Group, a real estate analytics firm. There were 3,849 single-family home sales in Massachusetts last month. That’s a four-year high for the month of March, and a 2.5 percent increase over a year ago. 

Those numbers would be even higher if the inventory wasn’t at its lowest point since at least 2004 according to the Massachusetts Association of Realtors. (That’s when the Association began reporting data.)

As a result of the lack of inventory, the median price for a single-family home jumped a whopping 14.4 percent from $402,000 in March of 2020 to $460,000, setting a new record for the month.

You’ll find an in-depth report at Boston.com. 

More Real Estate

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• Developers vying to build on parcel just south of downtown

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• The Davis Companies and Boston Development Group JV to Co-Develop 5-Acre Life Science Campus Near Watertown Square

Cannabis

U.S. House of Representatives Passes SAFE Banking Act

The U.S. House of Representatives signed off on a cannabis banking reform bill just in time for 4/20 — an annual day of celebration of human rights or another excuse to party depending on how it’s spun. 

The bill which is designed to protect banks from being penalized for working with state-legal marijuana businesses passed the House in a rare bipartisan vote of 321-101. The SAFE Banking Act has now been approved by the House four times since it was first passed in 2019.

Industry stakeholders are hoping that the bill passes while the democrats have control of both branches of Congress and the White House. Although Democrats now hold a thin majority in the Senate, its passage there is not guaranteed, nor is Biden’s signature. And if Republicans regain control of either the Senate or the House in 2022, the chances of passage are even slimmer.

Federal cannabis policy reform is a long time coming and banking is, by far, the largest source of friction for the cannabis industry. David Torrisi, president of the Commonwealth Dispensary Association, says that access to banking and capital is “probably the largest barrier of entry for getting into this industry.”

This issue is no longer just a regional matter. Medical marijuana is now legal in 36 states, seven of which also permit adult recreational use. Most banks are reluctant to do business with cannabis concerns due to the drug’s Schedule I status over at the U.S. Drug Enforcement Agency. As a result, many marijuana dispensaries are forced to operate on a cash-only basis, even paying their taxes with a truckload of cash. 

(To be fair to the DEA, DOJ, FBI, et al, they were only doing their job. Only Congress can repeal the federal prohibition of marijuana and they’ve been dragging their collective feet for half a century.)

The SAFE Banking Act, should it pass, will shield banks from penalties — such as racketeering charges — for working with marijuana companies. 

Marijuana Moment has a full report.

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• The 96-year-old co-founder of this Massachusetts cannabis dispensary wanted to give people jobs and 'a better way of life' - masslive.com

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Post-Pandemic Budgeting

The Massachusetts state budget will be the primary concern this week. Tax revenues are exceeding expectations, gas taxes are dwindling, and some cities may be putting the screws to local cannabis operators. The tourism and hospitality sector is battered and bruised, while heads are spinning at real estate development concerns along coastal Massachusetts due to last week’s blockbuster ruling on harbor front development. 

Meanwhile, Ben Downing, candidate for governor, wants to put the pedal to the metal on the state’s emissions reduction goals.  

Politics

Lawmakers To Unveil Fiscal 2021 Budget as Tax Collections Exceed Expectations

Excitement is mounting for the unveiling of the budget proposal for the upcoming fiscal year because 2020-2021 has been full of big surprises. The most recent surprise is that Massachusetts tax collections have once again exceeded the state’s expectations and this month’s debate in House of Representatives may center around how the Commonwealth can emerge fully funded from the COVID19 pandemic.

Here are some tax numbers being crunched on Beacon Hill:

• The Department of Revenue reported over $3 billion in tax revenue for March. That’s $402 million or 15.1% higher than the previous month.

• The state collected nearly $22.6 billion this fiscal year. That’s about $1.5 billion or 7.2% higher than in fiscal 2020.

• Corporate and business tax collections in March exceeded $1 billion. That’s $274 million above the state’s projections. 

• The state collected $562 million in sales and use tax revenue. That’s about $95 million more than expected. 

• The state collected $66 million in meals tax revenue. That’s nearly one-quarter more than expected.

• Income tax collections were $1.26 billion. That’s about $178 million above projections.

• Income tax returns and bills totaled $152 million in March. That’s $63 million above benchmark but 4.6% below the state’s expectations. 

• The state reported $399 million in refunds (so far this tax season). That’s $19 million less than expected. 

Unknown at this time is how $4.5 billion in federal funds will figure into future spending as the revenue is not accounted for in the budget plans. This is because the U.S. treasury has yet to develop full guidelines on how the money should be spent. More details are expected within the next month. 

Lawmakers will be unveiling the new budget on Wednesday, April 14. 

MassLive.com has more details on the budget.

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Business

Tourism and Hospitality Sectors Plead For Pain Relief 

No other sector of the Bay State economy has been so brutally beaten down by the pandemic than the state’s tourism and hospitality sector. And the beatings will continue until morale improves — as they say. Experts are predicting a slow and painful recovery. That is unless the state can provide some measure of relief by inoculating the sector with additional funds. 

At a recent hearing by the Tourism, Arts and Cultural Development Committee, lawmakers heard from groups representing restaurants, hotels and motels, cultural organizations, event venues and tourism promotion. Each told stories of widespread losses as stay-at-home, the gathering limits, and the massive drop in customer spending forced closings and employee furloughs of biblical proportion. 

Martha Sheridan, president of the Greater Boston Convention and Visitors Bureau had this to say:

"We're not going to be able to wish, pray and hope our way out of this pandemic. The only way we're going to get out of it is if we remain competitive and invest strategically in tourism promotion."

So far the state has awarded more than $650 million in relief grants to about 14,400 businesses. And cultural nonprofits received almost $10 million through a separate grant program in January. 

Also, according to NBC Boston, another $16 billion grant program was announced on Thursday. The fund is earmarked to “assist live venue operators, theatrical producers, live performing arts organization operators, museum operators, movie theater operators and talent representatives affected by mandatory closures.”

Furthermore, bill (SD 2105) would divert at least $200 million from the coming federal stimulus package to help cultural organizations recover.

Industry leaders say it’s not enough and are asking lawmakers to dig deeper. They also asked the state to develop a clearer timeline for lifting of business restrictions.

Some soothing news: Overall, Mass. business confidence has returned to pre-pandemic levels.

Learn more about this issue at NBC Boston.

More Business

• 'Jaw-dropping': Unemployment tax bills skyrocket for many Mass. businesses - Boston Business Journal

• Some Massachusetts employers still face major tax increases due to COVID-related unemployment claims

• Mass. business confidence jumps to prepandemic levels The Boston Globe

• Mass. Employer Confidence Widespread Heading Into Spring

Energy

Gubernatorial Hopeful Downing Offers Suped-Up Climate Plan

Ben Downing, who has been working in the renewable energy sector in 2017, has announced his plan to combat climate change. 

According to Downing, the state should be aiming at 100% clean electricity by 2030 with the rest of the state’s energy needs to be 100% clean by 2040. And, of course, the recent omnibus climate bill calls for net-zero emissions by 2050. 

For one thing, Downing is calling for a doubling of the Mass Clean Energy Center budget. According to Downing:

“MassCEC has been sort of the hub of new technologies in Massachusetts, going back to the earlier days of solar, more recently, around energy storage and business models there. We know we're going to have to not only deploy more renewables, but continue to think about new ways to ensure access to renewables across the economic spectrum and to come up with new innovative models for making the overall system work more efficiently, more effectively. Supporting MassCEC is the simplest way to do that. But we need to continue to think about other ways to do it as well.”

Read and listen to the full interview with WAMC.org. Or check out this report at MassLive.com. 

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Transportation

The Problem With More Energy Efficient Autos: A Dwindling Gas Tax

According to the American Society of Civil Engineers the average driver in Massachusetts at 42 cents a gallon spends $620 a year in gas taxes. That money goes toward road maintenance. This has been going on since the 1950s. The problem is, while expenses for maintenance are on the rise, gas tax revenue is slowly dwindling as autos become more and more efficient. What to do? 

According to a report by Boston 25 News, Mary Maguire of AAA Northeast says this isn’t sustainable. And Steve Pociask of the American Consumer Institute thinks we need to come up with a new fee system.

One of the potential solutions being bandied about is a tax rate based on the type of vehicle and the miles driven. Trucks would pay more. Economy cars would pay less. 

Matt Casale of MassPirg, who specializes in transportation and climate issues, says: 

“The beautiful thing about a vehicle mileage travelled fee is you can structure it anyway you want. If used properly, a VMT or some other user-based system for driving, could make it easier to get where you need to go by fast bus or train, or it could improve the condition of the roads and bridges so you you’re not hitting as many potholes and you don’t need to spend as much on vehicle maintenance.”

The rates could also be structured in such a way as to create disincentives to drive gas guzzlers and offer incentives to trade in your old stink tank for a zero-emissions vehicle. 

Read all about it at Boston 25 News.

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Real Estate

Recent Ruling on Boston Harbor Tower Will Have Far-Reaching Consequences

Last week we told you about the developers of a 600-foot tower on Boston Harbor looking over the New England Aquarium out to the Boston Harbor. We told you how their hopes and dreams were dashed by Suffolk County Superior Court Judge Brian Davis who ruled in favor of The Conservation Law Foundation and Harbor Towers apartment residents in a lawsuit seeking to block the proposed redevelopment. In a strange twist, the judge ruled that the zoning laws under which the plan was approved were themselves approved by the wrong state official in 2018. This has now sent a shockwave through the real estate development community. 

The problem is that the ruling could very well affect other developments approved under similar zoning plans — and not just in Boston, but from Gloucester to New Bedford to Provincetown. 

This is a fascinating story with far-reaching consequences that we won’t even begin to try to unpack here. But there’s a deep dive on recent developments at Boston.com.

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Cannabis

Mass Grower Advisory Council Says Some Cities Are Too Greedy

In the five years since recreational marijuana became legal in Massachusetts 122 dispensaries have opened in the state. Sales have grossed $1.45 billion since Nov. 2018. And more than $90 million in sales tax has been collected.

However, a recent report by the Massachusetts Cannabis Reform Coalition and the Massachusetts Grower Advisory Council claims that 79% of the state’s host community agreements require excessive fees and “voluntary” donations for third-party charities. 

To the Massachusetts Grower Advisory Council, that’s a problem. It could result in excessively high barriers to entry for the little guys. It also helps keep black market pot prices competitive. 

MGAC has petitioned the courts, asking that the Cannabis Control Commission be given authority over municipal agreements, instead of cities and towns.

For in-depth coverage of this story visit BizJournals.com.

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