May 30, 2012

Worcester Chamber

Last year's tax return still has not been filed.

Not a good sign 

Mattapan CDC

Files for bankruptcy

Hagerstown Update

Remember these are the guys who lost Allegiant but got them back after Direct Air went under.  Last Friday was their first flight:

Allegiant Air on Friday began a new chapter of commercial service between Hagerstown Regional Airport and Orlando, Fla.   Opening-day participation was strong, with the first flight from Orlando to Hagerstown about 85 percent full, which airport Director Phil Ridenour called unusually good.  Then, the first flight leaving Hagerstown was even more crowded. Shortly before it left, Ridenour said 145 of the 150 seats had been sold.
Top three for Worcester:
  1. JetBlue direct flights to Florida for the winter
  2. Allegaint direct flights to Florida for the winter
  3. Linear Air to base one of their Eclipses here

May 29, 2012

JetBlue update

BOSTON AND NEW YORK, May 17, 2012 /PRNewswire via COMTEX/ -- JetBlue Airways JBLU +3.26% springs into summer today with inaugural seasonal service from Boston's Logan International Airport (BOS) to Nantucket Memorial Airport (ACK). The largest airline in Boston will fly islanders in comfort with daily jet service to its 45th nonstop destination out of Logan through September 4.

May 27, 2012

Who done it?

Who put 50 cans of Budweiser Light in Bob Lyons' front lawn for his 50th bday on Grove Street?

May 26, 2012

20 failed messages

We all know what that means

JetBlue CEO tweet

His tweet may confirm? My thoughts that they are looking towards ORH for direct leisure flights in the Worcester to Florida this fall/winter.

Dave Barger ‏@DavidJBarger

I'll be visiting this summer; we're studying the opportunity! "@mikefoley: @DavidJBarger any updates on Worcester? ;)"


Reply Retweeted Favorite

May 24, 2012

Youngstown Survey

Maybe we should do a survey for JetBlue??

Youngstown survey

Youngstown celebrates 6 years w/ Allegiant

Think they started in Youngstown about the same time they started at ORH

May 23, 2012


Here are my thoughts... Florida leisure non stop flights has to be the number 1 target for JetBlue out of ORH, assuming they are seriosuly looking at us...  We all wish it was daily shuttles to their hub in NYC, I know that....

The Florida peak season starts in November and since JetBlue would need at least three months to announce, kick-off and sell tickets, we need a formal announcement by August or maybe Labor Day when everyone gets back from vacation.  Does not make alot of sense to kick it off now....  At least in my humble opinon..

Bottom line is I like our chanes for this fall-winter for flight out of ORH to Florida but it has to happen by Labor Day..  

Tax rates

 Although I think the end result was fair, I could not help but get the feeling thinking about the saying "Rearranging chairs on the deck of the Titanic".     I fear that end ressult, however, will only be more erosion of our commerical tax base thus placing more of a burden on residents of Worcester.

Bill Breault has a great line last night.    Next time you are driving down Cambridge Street and get to the corners of Canterbury and Fremont Street.   Look to your left, Kesseli Morse is now a Church.  Take a right on Fremont Street.   L Farber is now condos, there is one succcessful plastics company on the right but the rest of the street is virtutally empty. 

Central location with easy highway access..  

May 22, 2012

Mattapan CDC in trouble

Herald story click here

Financial trouble

Friedman said the Mattapan CDC’s operations began unraveling after Executive Director Spencer DeShields left a few years ago. The city has slapped $23,000 of property-tax liens on the group’s buildings, while the CDC’s last annual report to the state showed the nonprofit had a $781,000 deficit at 2009’s end.
Hub officials gave the group $284,500 in building-rehab grants in recent years for pre-construction work, but held back another $950,000 when the nonprofit’s operations frayed.  

May 21, 2012

2 Ionic Ave

Here goes:

  • 12/29/10   Building is sold to current owner for 250,000  
  • 2/15/11    City agrees to give seller 350,000 of home funds and completes an agreement which put a 350,000 mortgage on said property.  To protect the interest of the City the agreements says a prior 600,000 mortgage is to junior to this mortgage.

This was good business. 

Here is where the problem starts.  Nobody recorded the mortgage from the City of Worcester until 3/27/12--13 months later.   This would still be o'kay unless another mortgage is taken out and goes in front of the City of Worcester's interests.

Low and behold a 400,000 mortgage is put on the property the week before on 3/21.12.   Now if they City of Worcester forecloses to protect their 350,000 they will need to pay off a 400,000 mortgage  

Here is my question.  How does it take 13 months to record a mortgage?

May 19, 2012

Sign Man Read this one

Good story about eminent domain in Norfolk,  Virginis to benefit Old Dominion and one property owner's sign protest.  Click here.


Rosalie e-mail

Just got an e-mail from her to read Will from Wonderland..

Gee I wonder who sent this e-mail?


May 18, 2012

Chamber of Commerce

Jahn has a great post below...   

I stopped by a long time business in the City of Worcester yesterday and they had the Better Business bureau and Chamber sticker on their doors.   There was a time that this gave the business instant credibility, but today with the internet and people having the ability to express their feeling about a business in seconds?  It does make you wonder if these models are simply outdated.

Here is the next question.   Based on all these new tax valuations and bills, how many businesses will drop their membership in the Chamber--the last thing they need right now.   Bottom line, small cash reserves and dropped memberships are not a good combination. 

2012 is going to be a very very tough year for the Chamber.  I hope they do not suffer the same fate as the Wachusett Chamber. 

May 17, 2012

Wachusett Chamber Home Page

May 17, 2012

Dear Valued Members,

It is with great disappointment that we have to inform you that the Wachusett Chamber of Commerce is shutting its doors effective immediately.

While this organization has proudly served the Wachusett region for 97 years, the current economy has had too harsh of an impact on us. Though we currently have a strong and vibrant membership, we are simply unable to get out from under past debts.We have been able to effectively manage our debt over the past few years and were in the midst of implementing a long-term financial plan to ensure that the Chamber’s finances would grow stronger. However, earlier this week we were informed that a major sponsor would not be renewing and their contribution was critical to our ability to remain financially stable at this time. So, we have no choice but to close our doors.

rest of post click here

May 16, 2012

Mirick & O'Connell

I have made some updated to blog roll to right.  Actually could not add them???  

Added Mirck & O'Connell blog

Direcr Air Bankruptcy blog

Read today's entry

Link to Steve's blog to your right 

May 14, 2012

JetBlue update

NEW YORK, May 10, 2012 /PRNewswire via COMTEX/ -- JetBlue Airways Corporation [NASDAQ: JBLU] reported its preliminary traffic results for April 2012. Traffic in April increased 14.5 percent from April 2011, on a capacity increase of 7.1 percent.

Load factor for April 2012 was 85.2 percent, an increase of 5.5 points from April 2011. JetBlue's preliminary completion factor was 99.9 percent and its on-time (1) performance was 86.7 percent. JetBlue's preliminary passenger revenue per available seat mile (PRASM) for the month of April increased nine percent year over year. For the month of May, PRASM is expected to increase between three and four percent year over year.

Ionic Boys Club

Story in newspaper today.  Whiz kids bought Boys Club for 250,000 but got 350,000 from the City of Worcester?  Looks to me not only no cash but 100,000 in pocket,  since the loan is not paid back unless you violate the affordability period.

 Right now I am getting confused maybe a City Councilor can get ask for clarification on this.. 

Hanover 4 Southbridge

Valuation    534,600   Moot point since it is a non-profit but still 534,600?

May 13, 2012

George Russell Twitter Account!/GeorgeRussell_3

653 Main Street-Hadley

Total Invested $23,160,599

Current assessment   $2,192,100

$21 million less

May 12, 2012

Ten failed messages

You know what that means?

Will from Wonderland ...

Ironic isnt it, he accuses other people of harassment... 

5 & 9 May Street

Next time you drive down May Street check out these two buildings.

  • 5 May Street   3,465,000   13 units
  • 9 May Street  19,068,817  46 units
  • avg cost per unit   381,929
Latest assessor valuation

  • 5 May Street     662,600
  • 9  May Street      2,029,800

Total of 22,533,817 total investement now valued by the assesor at 2,672,400, approximately 20 million less? 

May 11, 2012

Whiz Kids

Public Hearing notices in today’s paper and saw one that may interest you.

Whiz Kids Development, LLC applied for a demolition waiver to tear down the Ionic Avenue Boys Club. The hearing is scheduled on May 24th at 5:30 p.m. in the Levi Lincoln Chamber (3rd Floor) @ City Hall.

Whiz Kids have already been given $350,000 from the City of Worcester and something like 2.7 to 3.0 million for 5 May Street and were involved in a questionnable sale of a condo to the former Hosuing Director, which led to her firing.    Can someone tell me what he was give $350,000 for??? 

Thanks Dave Zimage

Commercial Assessments

good story by Walter Bird in GoLocal

May 10, 2012

4th Quarter Tax Bills

Think I am getting this right but all you Commercial Real Estate owners have received 3 quarterly tax bills based on the old assessed value.   The 4th qtr bill that is coming up to wrap up the City of Worcester 2011-2012 fiscal year will reflect the new assessed value.

Not only will your 4th bill reflect the new value but you will have to make up the difference for the the three prior bills that were not billed at the correct amount.    In other words the other shoe has not dropped yet.  

May 09, 2012

May 07, 2012

Brown University and Providence

Diretc Air in Telegram

Story last week

The defunct charter service Direct Air filed its required financial statements in U.S. Bankruptcy Court this week, revealing for the first time a detailed picture of the fiscal mess that drove the company out of business.

Direct Air reported just $229,030 in assets including the value of a surety bond held by the company compared to a whopping $46.5 million owed to creditors — largely passengers left holding unusable tickets.
The financial situation detailed in the reports is one in which unsecured creditors are unlikely to recover anything as Direct Air's few remaining assets are cashed in or sold off.

U.S. Bankruptcy Court Judge Melvin S. Hoffman ordered that the Myrtle Beach, S.C., company be liquidated at a hearing in Worcester last month. Direct Air had been the only consumer air carrier serving Worcester Regional Airport before its collapse in late March.   Direct Air's liabilities include $33.9 million owed to consumers who bought tickets, vouchers or travel club memberships, according to the court records. The list of consumer creditors filed with the court is more than 3,000 pages. Many have already gotten refunds from their credit card issuers, while other customers that used debit cards to buy tickets have not.

The passengers who haven't been able to get refunds from the banks that issued their debit cards would appear to have little hope of getting their money back through the court liquidation process.   While the company lists $229,030 in assets, that number includes an estimated $33,030 in accounts receivable, money owed to the company, that will have to be collected and roughly $45,000 worth of furniture and equipment at various airports and offices that will have to be sold.

Consumers and other unsecured creditors, such as fuel suppliers and airport authorities, would be third in line to collect any money after the lone secured creditor, Wachovia Bank, which is owed $178,800, and creditors with priority claims, such as the Transportation Security Administration. Direct Air lists nearly $3 million in priority unsecured claims.   “That means the unsecured, non-priority creditors aren't going to get a dime as a general matter,” said Worcester bankruptcy lawyer James P. Ehrhard, who is not involved in the case.

One of the many angry customers on the creditor list is Brad Solomon Jr. of Worcester, who had Direct Air tickets to fly to Florida last month. He put the $340 fare on his Bank of America debit card.   Bank of America gave him a temporary credit to his account but said it would have to reinstate the charge if it wasn't able to recoup the money from Direct Air. Mr. Solomon hasn't heard from the bank yet, but he fears the financials revealed in court filings this week mean he will end up having to pay the $340 for a flight he never took.

“It's very upsetting. Even if another airline comes in to Worcester, unless it's a big name like Southwest, I'd be afraid I'm going to get stuck with another Direct Air. I've lost my trust in these small airlines,” he said.   The Holiday Inn Express Hotel of Auburn, Worcester Airport Limo of West Boylston and the Telegram & Gazette are the only Central Massachusetts businesses listed as unsecured creditors in the filing.   Direct Air, which was being run by majority owner Avondale Aviation I LLC at the time it ceased operations in March, names Avondale as a creditor in the filings, reporting that the firm is owed $460,000.

Avondale bought a controlling stake in Direct Air last September, but the previous owners, who founded the company, stayed on as minority owners and managers, according to court records. In court hearings, Direct Air's lawyers have blamed the collapse of the company on the previous owners. But a lawyer for the previous owners claimed Avondale is attempting to shift the blame to them through what he called a smear campaign.

A statement of financial affairs filed in court yesterday afternoon showed Direct Air took in $83.8 million in revenue last year and $19.7 million in revenue this year through March 15, when the company filed for bankruptcy protection.   However, lawyers for the company shed doubt on those figures in accompanying documents, saying they were taken from accounting records kept by previous owners.

“Avondale has reason to suspect that the debtor's books and records, both in the context of inducing it to invest in the business and thereafter, may contain manipulated or falsified information and thus Avondale cannot attest to the veracity of the records,” according to the filing, which is signed by Avondale's Hank L. Torbert of Washington D.C

Chamber of Commerce

Serious question.

Has the Chamber weighed in at all on the new commercial valuations?

May 05, 2012

Ten delivery failed message in my in box

We all know what that means?  Will From Wonderland is at it again

May 03, 2012

Question for Steve

Again,  I am just getting very confused with this credit card reimbursement law.   Let me give you a hypothetical:

  1. You and I start a company
  2. We buy a credit card machine.
  3. We get 50 people to buy 10,000 worth of supplies that they never get
  4. We collect 500,000 from the credit card processor less fees
  5. We file bankruptcy the next week
  6. All 50 people file claims based on the law you told me about since they never received the product and they all get their 10,000 credited back to their card
  7. You and I leave the country with 500,000

AWARE blog

Link on the right. It has all the current information on the tax bills and does a very good job summarizing everything!!

GoLocalWorcester on Direct Air

Story click here

Good story on the 200,000 bond that Direct Air had to put up.  Let me explain:

  1. Direct Air was suppose to put all monies from tickets sales , not vouchers or club memberships, into escrow.  If the flight ever cancelled, you get your money back.
  2. Just make sure that your monies are safe, Direct Air put up a 200,000 bond
  3. Problem is that there were no checks and balances on the escrow account and the Direct Air Executives stole the money so now there is only $1,000,000 in the account
  4. In the meantime the credict card processor for Direct Air, JetPay, has been processing claims but they are not sure if they will survive since there is only $1,000,000 in escrow.
  5. What happens if JetPay goes out of business to those people who used credit cards to buy tickets?

As a last resort if you do not get your monies back from JetPay, you can go to the bonding company but they have claims far in excess of 200,000 and do not see this being settles until January of 2013.  To top it off there will be no monies or assets left when the Chaprter 7 bankruptcy is wrapped.

The story here is why the hell doesn't the FAA or the airports that had Direct Air flying into them require audited financial statements to ensure that these guys were not stealing monies or better yet require them to increase their bond to $2,000,000 not $200,000.    Sorry, but at some point our Airport Director needs to answer some of these questions?

Ionic Boys Club

from telegram December 30, 2010

James E. Levin, whose company, Levin Development LLC is based in Holliston, established two entities, Whiz Kids Development LLC, and Hard Shell Development LLC, to purchase the former Boys & Girls Club at 2 Ionic Ave., and the former Caravan property, respectively, from United Bank, which had held the mortgages.
“We look forward to restoring the interior of the Boys Club for market rate units, and some affordable units to meet the city’s needs,” Mr. Levin said.
The completed Ionic Avenue redevelopment will have 24 units — 80 percent to be market rate and 20 designated as affordable, Ms. Vachon-Jackson said.

May 02, 2012

5 May Street

Lots of discussion on this property.  Can someone find out what the owner of 5 May Street did with 350,000 from the City of Worcester for the Ionic Boy Club

Check Number: 643477 Vendor Name: WHIZ KIDS DEVELOPMENT, LLC
Check Date: Mar 1, 2011 Check Amount: $350,000.00
Department: Section: Account: Amt Paid:

George Russell & Tony Economou Kudos (and Konnie)!!!

Go to the video link and watch the new councilor who has already done an incredible job with parking lots!!!

It starts 1 hour and 57 minutes in for 15 minutes!!!     These guy gets it!!!!!!

Ironically the numbers that they are  from a worksheet that Main South CDC provided themselves.  Thank you Konnie for starting this discussion finally.

CIty Council Affordable Housing


8:29 PM to 9:18PM

Or watch it   starting 1 hour and 24 minutes in 

May 01, 2012

Free WIFI at ORH

Maybe this is old news??
Click here

Thanks Harry