Bay State Banner 5/8/14

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Philanthropy group conducts study on black giving in Hub .......pg. 3

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Bank slams brakes on Charles Street sale Yawu Miller

Mayor Martin Walsh announced plans to site a business incubator in the Ferdinand Building. Two other efforts are underway to bring business incubators to the Dudley Square area. (Banner photo)

Business incubator slated for Ferdinand Building Yawu Miller The administration of Mayor Martin Walsh has upped the ante in the push for a business incubator in Dudley Square, setting aside 4,000 square feet in the Ferdinand Building for a startup space. And when the city’s space opens next year, it may be one of three operating in Dudley Square along with Smarter in the City and Start Up Lab, both of which are seeking space to open in Dudley. But the multiple efforts at creating business incubators are not likely to compete for resources, according to Smarter in the City’s Gilad Rosenzweig. “It’s not a competition at all,” he

said. “In fact, the more people who come to Dudley and do this, the better.” Business incubators allow entrepreneurs to rent small office spaces or even desk space with shared amenities — printers, copy machines, kitchens, meeting rooms — keeping down costs in the critical first few years of a business. Successful incubation spaces often create clusters of entrepreneurial activity where startups can more easily access accountants, lawyers, consultants and investors. City officials have eyed the innovation district in Boston’s waterfront district and Kendall Square in Cambridge as local examples of successful incubators. In his inaugural

address, Walsh advocated expanding the concept of the innovation district to include business districts in Boston’s neighborhoods. Walsh announced plans for the city’s Dudley incubator during a meeting last week at the Greater Boston Chamber of Commerce. “There has been so much talk about starting an incubator in Dudley Square,” said Walsh’s Chief of Staff Daniel Koh. “The feedback we’ve been getting is that somebody needs to put up the resources.” The city will soon release a request for qualification seeking an operator to run the incubator, which Koh estimates could house between 20 and 30 startups. The incubator will be housed on the second floor Dudley, continued to page 9

“The debtor is cash flow-negative and is currently administraThe Charles St. AME Church tively insolvent,” Bradford testified. was back in court Monday seekBradford’s testimony could ing court approval to sell the Re- have serious implications for naissance Center building, but Charles Street’s bankruptcy. a series of objections filed with Under Chapter 11 bankruptcy, U.S. Bankruptcy Court Judge the church is permitted to retain Frank J. Bailey may bring a halt assets essential to its survival. But to those plans. if the church is unable to demonMaking his first appearance strate its ability to reorganize in the case, the U.S. Trustee and become fiscally solvent, the appointed to the case filed a church could be compelled to file lengthy objection, stating that for Chapter 7 bankruptcy and the church did not properly liquidate its assets. market the Renaissance Center; The church owes creditors that OneUnited Bank to which nearly $6 million, including more the church than $5 milowes millions lion in loans, has a right to interest and block the sale; penalties owed and that the “The debtor is to OneUnited. appearance of The church conflicts of in- cash flow-negative borrowed $3.6 terest between and is currently million in conthe law firm struction loans r e p r e s e n t i n g administratively to redevelop the church the Renaisand potential insolvent.” sance Center buyers for the and $1.1 milproperty must — Eric Bradford lion for renbe clarified. ovations to In further the adjacent t e s t i m o n y, church buildU.S. Trustee ing. Charles Trial Attorney Eric Bradford Street’s parent organization, Afnoted that Charles Street has rican Methodist Episcopal First maintained a negative cash flow District, guaranteed the loan but over the last two years, question- has refused to repay. ing the church’s continuing fiFurther complicating the sale nancial viability. is the appearance of conflicts of Displaying overhead pro- interest between the bidders for jections of the church’s bal- the property, Action for Boston ance sheets, Bradford showed Community Development and that the church has spent more Horizons for the Homeless, and money than it has taken in over Ropes & Gray, the law firm repthe last two years. Despite the resenting the church. Partners fact that the church has not paid from Ropes & Gray have served any debtors since March 2012, it on the boards of ABCD and took in $14,128 less than it spent Horizons. through March 2014, according Filing yet another objection to the church’s records. to the planned sale was Horizons Charles Street, continued to page 7

Rising rents eat larger share of Hub incomes Martin Desmarais While much of the debate on housing costs in Boston centers on the atmospheric rise of luxury condos or the middle-class being squeezed out of the picture, housing advocates say the real crisis is the lack of housing stock for renters across the city — a problem that results in some 50,000 renters in Boston now spending more than 30 percent of their income on rent. The City of Boston’s Housing Boston 2020 Report details

that 46,000 households, which equates to one in every five in the city, spends more than 50 percent of their income on housing. The report went as far as to say that 23,000 low income households that pay more than half their incomes for housing are “at risk of becoming homeless.” And it gets worse if you look at the work of Michael Stone, University of Massachusetts Boston Professor Emeritus of community planning, public policy and rent, continued to page 6

Mayor Martin Walsh joins 2014 Boston Neighborhood Fellows Award recipients Erika Rodriguez, Julie Leven, Geoffrey Bynoe, Maria Alamo and Kendra Lara during the award ceremony at City Year headquarters on Columbus Avenue. A project of The Philanthropic Initiative, the awards program provides recognition and direct financial support to individuals of creativity, vision and leadership who work in community service in Greater Boston. (City of Boston photo by Don Harney)

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