CEO Corner

Dear Friend,


Like most Americans, I have been watching closely what is happening in Washington, DC. The looming threat of a government shutdown and the historic removal of Kevin McCarthy as Speaker of the House of Representatives is not a positive portrayal of how democracy is supposed to work in the United States.


I was raised with the belief that government is supposed to work for people and that holding elected office is a noble profession. I learned firsthand from my father, Tip O’Neill, that your word is your name. Although the political landscape has drastically changed since my father held the role as Speaker of the House, the importance of working for the common good has not. My father was known for his ability to work across party lines and build consensus. The demise of Kevin McCarthy as Speaker was due to not keeping his word to his fellow Republican colleagues and the promise he made to be elected Speaker and to his Democratic colleagues in trying to avoid a government shutdown on September 30th.


Unlike what is going on in Washington, the commitment to the common good is the spirit of the Massachusetts political landscape. Governor Maura Healey ran on the promise to make Massachusetts more affordable and competitive. This week, the Governor signed a comprehensive tax reform bill, marking a significant victory for the Legislature and the Healey-Driscoll Administration. This tax bill addresses affordability and competitiveness concerns in a variety of ways and has been applauded by the business community. Highlights include the expansion of credits for parents and caregivers and credits to increase housing production, an increase to the rental deduction cap, the doubling of the estate tax threshold, and as designed to help businesses, the simplification of the way taxes are calculated for multi-state companies in Massachusetts and the slashing of the tax rate applied to short-term capital gains. 


The passage of such a comprehensive tax reform requires a commitment to the common good and understanding of the art of compromise. The passage of this law in Massachusetts was not easy and not without debate. I commend the actions of our Legislature and our Administration for working together to ensure that Massachusetts is well positioned for continued growth and leadership in healthcare, education, and biotechnology.


As we look to November 17th, and the threat of a government shutdown, I hope our elected officials in Washington will work to achieve the common good and work together to ensure the passage of a responsible and sound fiscal year 2024 budget.  


Sincerely,

Tom O’Neill

Federal Review

Jim Gordon, Vice President

Ben Goldstein-Smith, Senior Director

The past few days have been incredibly eventful in Washington, DC. For the first time in American history, The House of Representatives voted Tuesday to remove the Speaker following a Saturday vote that averted a government shutdown with only hours to spare.

 

The 45-day Continuing Resolution (CR) funds agencies and programs at current FY23 levels through November 17th. The “clean” CR includes disaster relief funds and extends Federal Aviation Administration authorizations, but did not include additional aid for Ukraine, which has bipartisan support in both Chambers. The hope was that the short-term deal buys Congress the time it needs to fully fund FY24. If the past is prologue, shutdown politics will continue as we approach mid-November. The stop-gap measure sailed through the House on a bipartisan vote, carried by near-unanimous support from House Democrats. Prior to Saturday’s bipartisan breakthrough, former Speaker Kevin McCarthy had refused to bring anything to the floor that needed Democrats’ support to pass. That goal ultimately proved futile as a small band of extremists within his conference continually blocked any effort to advance a Republican-only bill, regardless of how conservative.

 

In the wake of the messy shutdown drama, McCarthy’s decade long, often rocky, tenure in leadership came to an end. There is a saying that the best currency in DC is your word, and McCarthy in that sense was penniless. He made too many promises to the party’s far right flank that he couldn’t keep, and that caught up to him. He also enraged Democrats by blaming them for the near shutdown, reneging on the debt limit deal, continuously embracing former President Trump after January 6th and opening an impeachment inquiry into President Biden, allowing Minority Leader Hakeem Jeffries and Whip Katherine Clark to keep their party united against saving McCarthy. Republicans will now huddle next week to try and choose a new Speaker, the initial names floated include Majority Leader Steve Scalise and Judiciary Chairman Jim Jordan, but we can expect lots of jockeying. Both are more conservative than McCarthy. Outraged moderates may want one of their own. Regardless, the math remains the same; five Republicans from either wing of the party can block a nominee for a Speaker.

 

None of this week’s developments solve the myriad reauthorization and funding issues staring down Congress. First and foremost, legislators must find a way to fully fund the government through next year. While the House has passed four of the requisite 12 spending bills, the Senate has passed zero. Further complicating things is that Senate appropriators are sticking to numbers agreed to in a previous bipartisan deal, but the House bills have pegged spending levels well below those numbers. House and Senate leaders have not yet seriously begun to negotiate how to bridge this yawning funding gap, which typically takes a good deal of time. The political infighting may continue creating barriers to reconciling these differences and leave Congress without a strategy to escape from this mess, leading us back to the exact same place when the funding runs out on November 17th.


Supplemental funding for the war in Ukraine will remain a top discussion point on Capitol Hill as well after it was left out of the CR. The White House’s effort to re-up American aid has bipartisan support, however nowhere near the levels we saw last year. This is especially true among House Republicans, almost half of whom have voted to cut off Ukraine altogether. Several typically bipartisan authorizations, including the FAA, agricultural programs and defense spending will need to be dealt with before the end of the year as well, but major bipartisan differences remain.

 

Meanwhile, the next few months will be a very important time for President Biden and his top advisors to do everything in their power to prevent a negative economic outlook heading into the election year. We must consider this when looking at any major actions or negotiations the administration pursues. At the moment, several of the ongoing economic concerns include:

 

  • The United Auto Workers (UAW) strike and its potential to slow the car market and increase inflation while damaging messaging around the pursuit of electric vehicles;
  • The fluctuating cost of oil and its effect on prices at the pump, often a key indicator of the success of an incumbent president; and
  • A potential government shutdown’s effect on the rollout of the “Bidenomics” programs that the administration is emphasizing.

 

Another dramatic finish to the year in Washington, DC is on the horizon. We will continue to monitor the motives and trends of major decision makers to help navigate through these turbulent times.

Massachusetts Tax Bill Review

Ben Josephson, Senior Vice President

Lindsay Toghill, Vice President

Following the Legislature’s annual August break, activity picked up swiftly last week in the form of a major tax reform bill. The roughly $1 billion tax bill, titled An Act to improve the Commonwealth’s competitiveness, affordability, and equity, was enacted in both the House and Senate last week after being negotiated for the past three months in a six-member conference committee. It is the first significant tax cut in nearly two decades and is also the most significant piece of legislation that Governor Healey has signed into law since she took office in January 2023. The Governor has stressed the importance of tax reform since before she took office, considering pressing concerns – corroborated by the sheer number of residents moving out of state – that Massachusetts has become an untenably expensive place to live and work.

 

The new law is estimated to provide approximately $561 million in relief this fiscal year through a variety of reforms aimed at low-and-middle income taxpayers and businesses. It also doubles the threshold at which the estate tax takes effect, from $1 million to $2 million. Furthermore, the new law includes a revised and expanded credit for parents and caregivers, expanded tax credits and incentives to increase housing production, a $1,000 increase to the rental deduction cap, and a doubled maximum senior circuit breaker tax credit. Proponents say the new law represents the most generous universal child and dependent tax credit in the nation. It is also widely backed by the business community, due to its simplifying of the way tax bills are calculated for multi-state companies in Massachusetts and slashing of the tax rate applied to short-term capital gains. Ultimately, the majority impact of the reforms will be delayed, with more than $1 billion of annual relief starting in fiscal year 2027 once all provisions take effect.

 

Action in the remainder of this 2-year legislative session, which will last through the end of 2024, will include an economic development bill and likely other major bills related to housing, climate, and gun violence and prevention, in addition to the FY25 budget process.

Transportation Review

Jamie Dunbar, Senior Vice President

Major projects like rebuilding the Cape Cod Bridges, redesigning the Allston Curve, and the East-West rail link make headlines regularly, not to mention the ever present “fix the T” mantra. Massachusetts is at a point in time in which sustained investment in transit, transportation, and infrastructure is unavoidably occurring. It reaches and touches every facet of transportation and will take creative and new approaches to designing and building projects and how those projects are financed. Investments continue to be needed in transit, enabling the Massachusetts Bay Transportation Authority (MBTA) to provide a reliable product that encourages ridership, therefore easing traffic congestion. Considerations for diversifying the type and use of rolling stock such as Diesel Multiple Units (DMUs), new trolleys, and electrification of trams to move people in reimagined ways are all on the table. The same needs to occur on surface roads, improving not only their condition but redesigning them in a way to maximize the movement of people, not necessarily vehicles. This means expansion of lanes where possible, designating lanes for buses and other high occupancy vehicles, and developing roadways with “smart” capabilities to welcome the next generation of vehicle types. Conversations and consideration for expanded tolling across much of Massachusetts’ highway system is intended to not only regulate traffic flows but also to potentially raise funding to help pay for infrastructure improvements, to create electric vehicle corridors, and to provide amenities to cater to the new motoring public. Investment in transportation transformation is necessary throughout Massachusetts to improve road and bridge infrastructure, but it is a lot more than that – transportation infrastructure is not merely repaving roads and shoring up bridges, but forming reliable connections for residents to affordable housing, which is often beyond urban centers, and connecting them to places of employment and recreation.  

Office-to-Residential Conversion

Jamison O'Neill, Associate Director

As Boston emerges from the COVID-19 pandemic, the city faces a multitude of issues exacerbated by the pandemic – unreliable public transportation, a lack of workers returning to offices, and a major housing crisis. One creative approach being discussed is converting existing offices into residential housing.


The biggest issue faced when evaluating office conversions is zoning. Offices were not built for residential living, so developers need to analyze properties to determine whether an office-to-residential conversion requires zoning relief, and if so, what zoning relief should look like. Some cities have implemented, while others are starting to consider, more lenient re-zoning in certain areas to aid the multitude of office vacancies, particularly in areas where housing shortages could be reversed. Tax incentives are another method to motivate developers to increase housing, with an emphasis on affordable housing.


Developers must also address the structural components of office buildings, dealing with issues such as building age, framing, floorplans, elevator modernization, and new energy codes. In their original design, offices are built wider than most residential buildings. This leaves a potential issue for certain floorplans to not have access to a window. Office buildings also need to accommodate the increase of occupancy when converted to housing. Elevator modernization in the buildings will be crucial in supporting this increase. Finally, developers face new energy codes and climate change initiatives. Older buildings will encounter the difficulty of converting outdated infrastructure to meet 2030 and 2050 climate goals. 


Finally, it’s unclear if people will want to live in converted offices given living preferences. Many renters and owners would like to have work from home spaces, whether it is a den or a home office. Another priority for residents is outdoor space or access to fresh air. This can be achieved via balconies or in-unit operable windows, rooftops, or courtyards, but in the design process these offices need to have the appropriate sizing to make this framework feasible.


Potential residents also have transportation concerns. Massachusetts, not just Boston, faces daily transportation issues, including unreliable public transportation with safety concerns, traffic nightmares, and expensive parking. Many residents choose apartments with parking if they need to get to work using their own cars which can be more affordable for them, and residents may also choose locations based on accessibility to public transit or walking distance to their workplace. The question to ask – can all of this fit into an office building at a reasonable cost?



Solving these issues is a moving target. Perhaps there is a solution to office vacancies that can also solve the housing crisis; however, the process may not be straightforward. If cities can ensure flexible re-zoning and sufficient tax credits at the local, state, and federal levels, this may work. Ultimately, developers must weigh whether return on investment justifies the cost. Either way, it is worth a conversation in cities with deserted downtowns and housing crises, especially Boston.  

Reach and Results

LYX Group

LYX Group is a vertically integrated luxury real estate development company with a passion for design and architectural significance and a commitment to quality. LYX’s mission is to create special places that bring people together to live, work, and play in ease and comfort, while centering style and luxury in every space. LYX retained O’Neill and Associates to help develop and bring new homeownership opportunities to 96-100 Rockwood Street in Jamaica Plain by navigating the City of Boston permitting processes. The large project created some anxiety and uncertainty among some community members, so O’Neill and Associates developed and implemented a community relations strategy. This included grassroots outreach, communications, and navigational assistance with the City of Boston for its robust approval process.


O’Neill and Associates leveraged its extensive experience in real estate development matters with the City of Boston to guide the process of approvals for LYX and act as the consultant for the proposal before the Boston Planning and Development Agency (BPDA). O’Neill and Associates created a community and government relations campaign designed to navigate BPDA processes until final approvals, build and provide support via meetings with key stakeholders, City staffers, and folks related to the design review and approvals of the proposal, assist in troubleshooting and solving any issues that arose between the different departments involved, and act as the liaison between LYX, City Hall, and the community.



LYX’s proposed development in Jamaica Plain was successfully approved by the BPDA. The project will add 36 home ownership units, $1.9 million to the IDP Fund (for affordable housing), approximately 122 construction jobs, new sidewalks and speed humps in the vicinity, and is LEED Gold certified and net carbon ready. It will also contribute $50,000 to the Parks and Recreation Department, $50,000 to three local organizations, and $49,000 to the Boston Transportation Department in support of the bikeshare system and to provide space for an onsite Bluebikes dock.

FAN EXPO Boston

Photo: FAN EXPO Boston

Seven Letter’s PR team worked with longtime client FAN EXPO Boston in August to help promote the three-day pop culture extravaganza which thousands attended at the Boston Convention and Exhibition Center. The show featured a spectacular lineup of celebrity guests, voice actors, comic creators, cosplayers and more. Seven Letter handled all media relations and staffed the Press Desk at the show. FAN EXPO is the biggest pop culture event in Boston, where fans of popular comics, manga, anime, TV shows, movies and more come together and celebrate alongside friends, family, and of course, the people who have brought those stories to life. Renown Actor and Emerson College Graduate Henry Winkler met with fans and spoke about his time as a college student and his work in television and films, including his role as The Fonz in “Happy Days.” FAN EXPO Boston will return June 28 – 30, 2024.

Photo: Macsonny Onyechefule

Donegal Honors Irish Diaspora Leaders with Tip O'Neill Awards

On September 16th, Tom O’Neill joined the Donegal County Council to present the 2023 Tip O’Neill Irish Diaspora Awards at the Inishowen Gateway Hotel in Buncrana. The Donegal County Council honored the awardees for their outstanding achievements in their chosen fields and their enduring bond with Ireland.

(L-R) Professor William C. Campbell, Caroline McLaughlin and John Fries

Photo: Inishowen News

Professor William C. Campbell: Born and raised in Ramelton, Ireland, Dr. Campbell’s ground-breaking work in the field of parasitology led to significant advancements in the treatment of parasitic diseases, earning him worldwide recognition. His work in the development of a treatment for the eradication of river blindness has had a profound impact on millions of lives in Africa, Latin America, and other regions where the disease is prevalent. This life-changing achievement showcases Dr. Campbell’s dedication to making a positive difference in the world through scientific endeavors.


Caroline McLaughlin: Caroline’s community-building talents and long-term dedication to giving back to the community have been widely recognized as well as being a leading member of the Irish Diaspora Community in the UK. Caroline has been steadfast in her dedication to building community relationships and supporting programs for the benefit of fellow diaspora and disadvantaged communities throughout her career.


John Fries: John’s strong connection to his Irish heritage is a source of immense pride. He spent 24 years in the IT industry and his extensive career has been marked by a commitment to cutting edge solutions with leading hardware and software companies. John’s work in the field reflects his forward-thinking approach and his ability to harness the power of technology to drive positive change.  

Tom & Shelly O'Neill with members of the Donegal County Council and Buncrana Urban District Council and the 2023 Tip O'Neill Diaspora Awardees

Photo: Donegal County Council

Tom O'Neill Speaks to M3 Coalition

(L-R) Gil Stevens (Ultragenyx), Stephanie Cronin (M3 Coalition), April Anderson (Anderson Strategic Advisors) and Tom O'Neill

Photo: Ann Murphy

Tom O’Neill was the featured guest at the Middlesex 3 (M3) Coalition’s Legislative Leadership Series on September 28th at Northeastern University’s Innovation Campus in Burlington. M3 Executive Director Stephanie Cronin kicked off the event and welcomed members of the coalition who represent businesses and municipalities in the Route 3 Corridor. Stephanie then handed it off to M3 Member April Anderson of Anderson Strategic Advisors who moderated the discussion with Tom, who spoke about the importance of connecting the business community to what is happening on Capitol Hill and Beacon Hill and major issues facing the region including transportation, workforce development, education and housing. Learn more about the M3 coalition at www.middlesex3.com.

Tom O'Neill with April Anderson of Anderson Strategic Advisors

Photo: Ann Murphy