MITT ROMNEY
Cites government ‘waste’
Gov. Mitt Romney addressed more than 300 attendees of the National Association of Office and Industrial Properties’ national conference last Friday morning, sharing his optimism about the state’s future economy and discussing the importance of fostering new biotechnology companies in Massachusetts and incentives for encouraging housing developments in cities and towns across the commonwealth.
Cycles happen, Romney said, but it’s the key decisions during the tough times that make all the difference when things get better. While the Massachusetts economy sits in a slump, along with the rest of the nation, Romney outlined several major areas for streamlining government and encouraging economic growth in the meantime.
The governor said that in a meeting with business executives, he asked about their major obstacles or challenges in expanding in Massachusetts.
“Their No. 1 impediment was the cost of housing,” he said. “We have to fix that.”
Romney said that one developer told him that it’s been more than 30 years since a multifamily property was built in downtown Boston. Towns and cities are making sure that such developments aren’t approved in their neighborhoods because they don’t want more traffic, schools and other support services, Romney said.
“Cities and towns that refuse to accept developers are putting a stranglehold on the state,” Romney said.
‘Outdated’ System
Last month, a report by the National Low Income Housing Coalition named Massachusetts the most expensive state for renting a two-bedroom home. For the second year in a row, Massachusetts also ranked as the least affordable state for renters. According to the report, Massachusetts residents must earn three times the minimum wage to afford a two-bedroom rental unit without spending more than 30 percent of their income.
The state must fix the current situation, Romney said. He discussed a plan that would dole out money to cities and towns based on their openness to development – municipalities with rapid permitting processes would be rewarded with more funding than neighbors that shun new housing.
Romney said the Bay State should earmark a portion of the $5.5 billion it sends to cities and towns under those development-friendly guidelines.
“There’s no question that, in our state, developers of real estate – residential and commercial – are key, yet cities and towns don’t want to see more housing developments,” he said.
Romney also stressed the importance of fostering the burgeoning biotech industry in the state, which he called the No. 1 concentration in the country and his pet concern. While the industry moves from research to manufacturing, he said, Massachusetts must be sure that those companies remain here in the state.
“We need to make incentives,” Romney said. “I want this to be a place that they will sink those dollars into.”
In August and September, eight biotech companies moved into Massachusetts, including Abbott Bioresearch Center, Alkermes, AVANT Immunotherapeutics and Therion Biologics. Last month, Therion, in Cambridge, expanded its manufacturing capabilities with the opening of a new 11,000-square-foot facility.
While Romney expressed optimism about the future of the economy and the growth of the biotech industry, he said the state’s elected officials must remember that their election is about public service, not self-service.
“I see so much waste in government,” Romney said. He highlighted one particular example – the state’s 112 courthouses, which need rehabilitations that will cost the Massachusetts more than $150 million. Romney described the courts as an “outdated” system, established when most transportation was by foot or horse, and one that must be streamlined by the state.
“It’s very expensive. There’s virtually a courthouse in every district,” he said.
The NAIOP conference, which was held at the Boston Marriott Copley Place, also included dozens of roundtables, office market updates and insights from industry leaders from across the country.
Additionally, NAIOP officially passed the chairmanship of its national board from Daniel DeMarco, partner and managing director of real estate for Campanelli Co. in Braintree, to Stephen Crosby, president of CSX Real Property in Jacksonville, Fla.
DeMarco also serves as the vice chairman of the association’s National Government Affairs Committee and as a member of its National Industrial Development Forum. He is also past president of NAIOP’s Massachusetts chapter and past vice chairman of its National Education Committee.
DeMarco said that, in the past year, the board devised a plan that focuses on growth, strengthening its chapters, disseminating knowledge and increasing the effectiveness of government affairs.
“What we’ve done is say that we’re willing to roll up our sleeves and sit down at the table,” DeMarco said.
NAIOP also named Colonial Properties Trust its Developer of the Year.
Kristie DiSalvo may be reached at kdisalvo@thewarrengroup.com.
