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City councilor, neighborhood group jaw down rent increases for six Egleston Square businesses

Jamaica Plain News reports City Councilor Matt O'Malley and the Jamaica Plain Neighborhood Development Corp. convinced City Realty to reduce the rent increases in an Egleston Square building that would have forced six Latino-owned businesses out of the square.

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Great work, Councilor and community!

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This is bullying.

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.

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Cheering on the government disrespecting other people's property rights is great until the government gets around to doing it to yours.

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The Laws of Supply and Demand included thuggery. The free market doesn't make special exceptions for certain groups, it treats everyone and everything equal.

This is stupid, and could open the door for others to claim such economic entitlements.

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...Is only interested in entitlements, specifically for his supporters. He's a Latino Linehan, only unelected.

Edit - I don't see that Hyde Square Task Force is directly involved in this, so I guess I'll give him a pass on this. He still sucks though.

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open that door, and the people doing the pressuring will believe even more that they should control the housing market. We don't have socialism (yet), and it's none of their business what someone wants to charge for their property.

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and quantitative easing?

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The bailout and quantitative easing are two different things.

The bailout directly benefited a few parties (and indirectly benefited everyone by keeping our financial system from collapsing, but that's a different discussion).

Quantitative easing is a monetary policy tool that is applied uniformly across the board and therefore effects all parties in the same way. Monetary policy tools like this one have been used since the Fed has been in existence.

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is a direct result if the deregulation, abuse, and catastrophic collapse, followed by the 'bailout' of the 'free market' system. Socialism for the rich and connected, 'free market' capitalism for everyone else.

And no, I am not a Marxist by any stretch.

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Sometimes this works, sometimes it doesn't.

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Process isnt designed to directly intervene in the market. Its used to regulate and control unethical practices.

Democracy has nothing to do with rent control and price fixing.

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This isn't rent control or price fixing.

It is called negotiation.

Can I have your strawman? I could use it as a decoration next week.

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Since when did that involve elected officials! Maybe Marty can help me negotiate the price of my first house.

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No, it's not. People in that neighborhood exercised their First Amendment right to free association and then free speech to advocate for lower rents to keep these businesses they like there in the area. Some local elected officials joined them in said advocacy. The landlord decided it was in its best business interests to work with the folks who live and work near to properties it owns and near properties it likely wishes to acquire, so it acquiesced. The end.

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see below

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if people of different interests are finding a compromise to serve some semblance of common interest for the public good, for the short term anyway, sounds like democracy to me.

the congress could take a few pointers..

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So the city councillors come over and say, "nice business you have there, it'd be a shame if something happened to it" --and that's advocacy? How is it anything other than a shakedown? You can keep your democracy, thanks.

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is that how it went down? didn't know you were actually there.

I have no problem with councilors acting as intermediaries to resolve conflicts like this...better than relying on "zoning" ("Uses of Disorder": Sennett)

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Right. Just so we're clear on terms:

Commercial landlord who swoops in to pay cash for a (occupied) property at foreclosure auction, then promptly turns around and raises rent (because reasons) on existing tenants, and uses their hesitance to pay ridiculous rent as an excuse to evict them: victim.

Long-time commercial tenants of said building, who enlist the help of a city councilor to make it known that this commercial landlord is a rent-seeking asshole trying to drive neighborhood businesses out: bullies.

While we're at it, let's talk about the last high-profile time we let the free market sort out this sort of dispute in JP: Bella Luna. When their landlord doubled their rent, they left the space they were in and moved across town. Their business never completely recovered, because their new space didn't have space for a bowling alley like their old one did, and they were out tens of thousands of dollars in renovation costs in the new space. Meanwhile, the old space remains unoccupied seven years later, and the neighborhood around it has lost the anchor that used to bring customers from other parts of the city into Hyde Square.

So, given a choice between the two ways this can play out, I'd like to say: the free market is a sociopath, and I'd rather keep my neighborhood intact.

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I have lived there for about 10 years. I don't think I've ever seen the area more active than it is now. New businesses keep opening, and there are lots of people at all the restaurants in the area. Bella Luna being forced out was hardly the end of the world, and focusing on 1 empty storefront is a little ridiculous.

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Whatever happened to Los Hermanos ?

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Yes, landlord would like to be paid rent for a business to occupy its space, what an asshole!

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The landlord was an idiot to jack the rent, and was going to pay for it one way or the other.

The landlord decided not to be an idiot and agreed to chill out and take sustainable rent for long-time sustainable tenants.

How is that not being paid rent?

Just put that strawman out front of your house. Couple of pumpkins, looks nice, eh?

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that particular landlord seems to be great at sitting on empty properties for years. I wish some enterprising reporter would figure our how these guys make more money with their property empty than occupied. It's an annoying situation for a neighborhood.

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If this is bullying, then bullying officially has no meaning anymore.

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This smacks of the city favoring an ethnic preservation strategy in the face of the free market. When they come for rent increases for the Irish Butcher shop in Adams Corner or A Nubian Notion at Dudley I hope Matt and the corresponding CDCs will step up for a rent break.

Also, Will City Realty get a corresponding tax break from the city owing to the below market rents that they are receiving?

I hope a bunch of stores in Lower Roxbury get Giveaway O'Malley on their side as the inevitable march of yoga places and cheese shops moves south.

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I certainly hope City Realty doesn't get a tax break! Who determines the market you speak of? Just because the owner (City Realty in this case) continues to raise rents it doesn't mean the properties are worth more... it just means City Realty wants more of your money. Unless the property taxes have increased they more than likely take on no more financial cost, they just take more of your money.

People will always need somewhere to live, so the market will never stop rising. And there will always be someone who is willing to pay more than you to live somewhere. We need more actions like this where people stand together and say, "No" to investor landlords. Does anyone really think City realty gives a sh@t about Boston?

And I'm glad this smacks of, how you say, "ethnic preservation." I'd rather the city work to preserve neighborhoods and community then sell it off to the highest bidder.

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If City Realty continues to raise rents and businesses continue to pay the increased amount, then yes, it does mean that it is worth more. An objects value is derived from what it can be sold (rented) or traded for. Just because you don't like that reality does not make it false.

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Not to worry: The landlord's expenses are predicted to fall 40%.

BWAHAHAHAHAHA!!!

smh...

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If it means that stable tenants stay in business and the store fronts remain occupied, then it may mean that their revenues will cover their expenses.

This is why we need a vacant property tax to cover the city's expenses when landlords drive out long-time tenants and then can't rent the space at the ridiculous rates they claim are "market".

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Wow, if you know so much about real estate, maybe you should start a company. I'm sure you'd make a killing.

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Neither Adams Corner nor Dudley Square are in his district.

However, Egleston Square is, the business owners came to him for some constituent services, and something was worked out.

How is this a bad thing?

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Councilor O'Malley failed to open/release the Full Transcript of Captions for hard of hearing, deaf, ESL English as a Second Language folks from Webcasts of Public Meetings of Boston City Council.

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Of course, I'm assuming you would be paying the fines for him violating state law.

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What does the ethnicity of the business owners have to do with this discussion? What if the business owners were Haitian or Brazilian as opposed to Latino... am I missing something?

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JP has a large Latino community, from Jackson Square up to Egleston Square. As gentrification makes its seemingly inevitable march down Centre and up Washington, that community feels like it's being evicted to make way for the sort of residences and stores they can't afford.

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That's just the Ebb and flow of real estate. I remember the corner store was a donut joint , Jack's Gulf was a bit down the way , the plumbing supply was a busy bee hive , around the corner , even after Haffenreffer closed , the brewery properties had a bunch of businesses operating . Lots of jobs around that area . What makes now so important, as opposed to maybe back then ?

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And? So what, Adam?

Is their community more valuable because it's Latino? Are you saying that if the business owners that got displaced were not-Latino, and the new tenants were Latino, that would be better, since everyone should stick with their own kind?

Do the laws of supply and demand not apply to Latinos for some reason? Would it be less bad if the City Realty wanted to raise the rent on some businesses owned by Asians? Whites? Blacks?

Are you just trying to imply that the owners of City Realty are racist? Do you have some evidence that they only raise rent on Latinos? Or maybe all people of color?

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No, I'm not implying anything about anything.

You asked why it was important to note that the businesses were owned by Latinos. I answered your question, but let me answer it again: It's noteworthy because there is a Latino community in that neighborhood and the businesses are own by Latinos and cater to Latino customers. It would be the same if somebody bought up a building occupied by Chinese merchants selling Chinese goods in Chinatown, then raised the rents so high those people could not stay in business there.

In fact, the evidence is that City Realty could care less about race or ethnicity, that all they care about is sucking as much money as they can out of their properties, current tenants be damned. This is a wonderful country, and that's their right, but at the same time, people have a right to protest and try to get them to take other issues into consideration.

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Adam, I'm the anon that initially posed the ethnicity question, not the one who followed your response with an angry reply. Sorry to cause anon confusion, but just wanted to make that clear.
I can see both sides of the issue, however, Latinos aren't the only group or ethnicity that feel like they are being pushed out of 'their' neighborhood. It shouldn't matter if this group is Latino. How about it should matter because they're concerned long-term residents?
Furthermore, I do think it's a bit patronizing to think that Latinos prefer to mainly shop at or dine at Latino stores and restaurants. All of us are of various ethnic backgrounds and have friends of diff. ethnic backgrounds and we shop and eat wherever we like regardless of the ethnicity of the store/restaurant owner, right? I would never think, oh I want to shop here because the owner is of a certain heritage. I nor any of my friends choose to eat at a particular restaurant based on our heritage. If I feel like getting Thai food, it's because I like it and not because I have Thai heritage, and the same goes with Mexican, Italian, Middle Eastern, etc. I'm not trying to accuse you or anyone of any ill intent, I just think it's time to stop simplifying people based on their ethnicity.

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Too many anons :-).

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Exactly. That area had a different ethnicity years ago, it changed, people moved on. Example is Sklar's , then Hi- Lo , now Whole Foods in Hyde Square, ( or if you want to be ethnic Blessed Sacrament Church metamorphosis , even though this area is Our
Lady of Lourdes parish , don't know what's going on there ) . Part of the melting pot experience is the blending of food cultures. Maybe one night , lay off the spud , try some spaghetti , mix it up , go to the Fez , try some Middle East stuff, pick up some Syrian bread across from the Cathedral, ect. ect. You meet different people , make friends . But you all have to play by the rules , you have rights , and responsibilities. Work hard , pay taxes , improve your life. Learning to speak English is most helpful in this endeavor . The melting pot can make a good stew. But the ingredients must blend in together . So if this area is changing again, so what ? It changed before. But if you are going to brace the people that invest in the commercial real estate in the area, you are going upset the melting pot.

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i remember the one in watertown...

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Dude , it was where the Hi Lo was before it became whole. There was a Capitol Market , an A & P , a First National , and a Stop and Shop , all on Centre street at one time.

Link to picture of First National (http://www.groceteria.com/wp-content/uploads/2009/04/finast-brightoncent... )

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In fact, the evidence is that City Realty could care less about race or ethnicity, ....

Gee, I don't know, maybe it's just me, but being blind to race or ethnicity seems like a good thing.

Just sayin'

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... meaning that s/he cares so little that s/he could not possibly care less. Just a pet peeve.

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By your comment, maybe blacks should have been let into DOt, Matt Rox. Latinos in JP or rich people into the south end.

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Did you mean to say

maybe blacks should NOT have been let into DOt, Matt Rox ...?

There is plenty of room in most of the city's neighborhoods for a wide variety of residents. And slowly, that's what's happening - Boston may still be a segregated city on the whole, but nowhere near as much as it used to be (one of the good things about living in Roslindale, for example). That doesn't mean that groups that are in a particular area have to just sit idly by while the stores that cater to their particular needs/interests are forced out for Yet Another Bunch of Luxury Apartments (no, this hasn't happened in Egleston - yet).

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Gentrification is a racist term. Why not just come out and say wealthier white people forcing people of color to move out.

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Its a label put on the inevitability that real estate is location location location , and they arent making any more of it. In this case , the area was working class whites before it was what it is now. I dont see how racism had anything to do with it, I was there. Dont need to google anything to know that!

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In neighborhoods both in the city and further out, valued neighborhood businesses are forced out by steeply increasing rents (way faster than the rate of inflation, often doubling or worse). This hurts the neighborhoods as well as the businesses, as useful businesses (markets, hardware stores, low-to-moderately priced restaurants) get forced out and often you end up with seas of banks and salons instead.

There needs to be some way to balance the rights of landlords to make a profit with the needs of neighborhoods. This is not just about Latino businesses - it happens to ones from all ethnic groups.

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We have businesses being forced out here too, like the building Espresso Pizza was in. Not all those tenants can survive this. It would be great if landowners and city government could work together here to improve the environment for the small businesses that are the fabric of the neighborhood. Oh wait, maybe we're getting a bank!

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Who would want an espresso pizza?!

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Doing the same thing he just did in Egleston, trying to help out the business owners.

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We need more banks.

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This type of thing needs to happen more all around Massachusetts but I can't help but wonder if this would ever occur if the businesses in question were not Latino owned. It's definitely reverse discrimination, unless they start doing the same for EVERY small business. Also: when the hell are business owners going to wake up and realize they need to cover their number one achille's heel - real estate ?! I don't think I've ever heard a story of a landlord giving some mom and pop a break because they were fixtures in the community but I've heard plenty of killing the golden goose with exorbitant rents. Small business people love to complain about labor costs but when was the last time you heard of one actually closing because he just could'nt keep up with high wages ? Versus, say, closing because of high rents ? I though so.

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If you are going to invest the money on the infrastructure of a business , you might want to consider buying the real estate, otherwise you are a captive to the landlord. surely you must consider that going in . I once was asked to buy a package store by the existing owner, when I asked him about the real estate, he told me it was owned by a reality trust,his own! No sale . I would have bought the real estate before I bough the store , believe me.

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