BRA approves pay boosts

The Boston Redevelopment Authority has beefed up its staffers' salaries for the first time in five years.

The agency, whose budget is separate from the city's, recently awarded 3 percent raises to all except the top employees.

"This was the right time financially to give a cost of living increase," said BRA spokeswoman Susan Elsbree.

BRA employees have had no salary increases — only pay cuts and reinstatements — since 2008.

In June 2009, amid the Great Recession, the BRA slashed the salaries of all but the lowest-paid workers and cut 24 jobs to help address a $4 million budget shortfall.

Those wages were restored in late 2011 as the economy improved and lease revenue from BRA-owned property increased.

The BRA payroll has shrunk from 268 workers in fiscal 2009 to 207 today. The agency has also cut back on travel.

"We're just better positioned now," Elsbree said. "There was a lot of cost-cutting and belt-tightening, and now we're on better financial footing."

The 3 percent raises increased the number of BRA employees who earn six figures, according to publicly available payroll data requested by the Herald. There are 34 staffers above the $100,000 salary level, eight more than last year.

The most senior staff — nine employees including BRA director Peter Meade — did not receive pay hikes. Meade has the highest salary at $164,640, followed by chief planner Kairos Shen at $160,680.

BRA positions range from administrative assistants and project managers, to architects, planners, engineers and researchers.

Meade recently restructured the BRA's economic development department after the departure of a key director.

He created a division of business development led by Randi Lathrop, known for her work in Downtown Crossing.

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The Ticker

Downtown Crossing pushcart vendors out

The Downtown Boston Business Improvement District is pulling the plug on pushcart vendors, right, at the end of the month.

The elimination of the vendors, who have been selling food and merchandise ranging from burritos to T-shirts and umbrellas since the late 1970s, comes as the property owner-supported BID prepares to develop a new street merchandising program for 2014.

The move has angered some vendors who fear being stripped of their livelihoods. They operate under a year-to-year agreement that expires at the end of March.

The BID hopes to implement a smaller, transition pushcart program beginning this spring that includes fewer carts as construction in the district stands to eliminate currently available locations. Current vendors will be required to reapply for available spaces.

Google axing 1,200 more Motorola jobs

Google is cutting an additional 1,200 employees in its Motorola Mobility hardware unit, as the unprofitable cellphone maker struggles to compete. Last summer, Google announced 4,000 Motorola job cuts. The layoffs will affect workers in the United States, China and India and account for about 10 percent of the company's headcount.

Boeing moves flight training to Miami

Boeing Co. said it is consolidating its North American flight and maintenance training operations in Miami, a shift that will move all flight simulators for the 787 Dreamliner and other aircraft out of the Seattle area.

Miami is the company's largest flight-training center and is preferred by airlines based in Latin America, as well as the United States, Middle East and Europe, Boeing said.

THE SHUFFLE

• The Training Associates has appointed Bill Bowman, left, as a senior consultant to work with senior management to secure private equity for company growth. Bowman previously served as CEO of U.S. Inspect and president of ChildrenFirst Inc., and was co-founder of Logal Software and Spinnaker Software Corp.
• Seven Step Recruiting has hired Doug Lubin as director of business development. He previously served as director of recruitment process outsourcing solutions at Yoh RPO.

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Ford C-Max outperforms Prius

Ford has been in the green marketplace for quite a while, but the C-Max CUV represents a giant leap forward in its effort to topple the vaunted Toyota Prius.

The C-Max replaces the discontinued Escape Hybrid and offers an entirely new vehicle.

Based on the Focus frame and powered by the familiar 2.0-liter Atkinson gas-electric motor, Ford claims you can run the C-Max on electric power up to 62 mph. The continuously variable transmission is one of the better ones I've used, shifting smoothly and effortlessly. The modestly priced entry has 56 cubic feet of storage with the split rear seats folded down and can comfortably seat five.

Squint a little and the SUV resembles the Prius, but it ends there. At 188 combined horsepower, it's much more powerful than the Japanese standard and faster to 60 mph. All this and the estimated fuel economy is just shy of the Prius.

But let's talk about Ford's advertised claim of 47 mpg. Despite my best efforts, I only cracked 40 mpg on a 30-mile highway run and barely managed 36 mpg on average for the week.

Scouting around the Web, I've found there's some fuzzy math permitted by the EPA to attain these figures and it's being questioned legally. Listen, 36 mpg 
isn't shoddy, particularly 
at nearly $4 a gallon for gas.

The C-Max is a solid performer on dry roads and in the rain, but is horrendous in the snow. I tooled around in a recent moderate snowfall and the C-Max struggled mightily. The front-wheel-drive-only option strained to pull the 3,600 lb. car up a snowy incline and, despite the traction control, the tires slipped continually. It did not inspire much confidence in New England wintry conditions.

Fortunately, most of the year we have better road conditions and it handled smartly, rode quietly and soaked up the road bumps. The regenerative brakes had an abrupt bite to them, but managed the car effectively.

The styling is typical of many cars in the CUV class. In this case, a familiar aerodynamic bullet-shaped body is accented with a low-slung hourglass grill, swept-back windscreen and some accented body creases ending with a squared-off hands-free lift-gate. Oversized wrap-around front and rear lights tie the package together.

You settle easily into the well-appointed and fitted interior and are met with a modern array of instrumentation. The upgraded MyFord infotainment center is easily run from the leather-wrapped steering wheel controls, but still needs more engineering to make it user-friendly. The dash features a variety of data, much of it related to the hybrid engine and batteries. One gripe is that the thick front roof pillar creates a bit of a blind spot that a small vent window tries to alleviate.

I'd take this car over the popular Toyota even though it gives up a couple of miles per gallon. It's more powerful and better looking with an upmarket interior that boosts this domestic entry.

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Mass., R.I. take income tax bites

Mass., R.I. take income tax bites

Tax season is upon us and the Herald's TaxSmart experts are here to help. Today, Art Ford of Sullivan Bille Group of Tewksbury discusses issues involving multi-state returns.

I work in Rhode Island, but live in Massachusetts. My employer took state taxes in both states. I was informed that I would be able to get the Rhode Island taxes refunded as I am a Massachusetts resident. However, when I did my taxes ... I ended up owing Massachusetts more taxes and receiving a third of my Rhode Island taxes back. Is this correct? Just seems wrong that I pay resident taxes in both states, but live in one.

— Mary Richardson

This is an example of a multi-state return.

As the reader suggests, these can be a pain, as the rules in each state are different and, in this case, both states have an income tax.

Your Rhode Island income must be included on your Massachusetts return, but Massachusetts allows a tax credit for taxes paid to Rhode Island.

The Massachusetts income tax rate is currently 5.25 percent.

Rhode Island has different deductions and exemptions than Massachusetts and it has three graduated tax rates.

Rhode Island has a rate of 3.75 percent on taxable income up to $57,150; 4.75 percent above that up to $129,900; and then 5.99 percent above $129,900.

So, if you are in the 3.75 percent Rhode Island bracket, there will be an additional tax to Massachusetts of 
1.5 percent.

Email your TaxSmart questions to bizsmart@bostonherald.com

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Wall St. will keep close iWatch on Apple product

Wall St. will keep close iWatch on Apple product

Apple's stock could get a needed boost later this year, when the company is expected to ride the wearable technology wave with the debut of a wristwatch aimed at tapping into the 
$6 billion smart watch market.

The "iWatch" will be integrated with the wearer's iPhone and iPad, without negating the need for either one, said Max Wolff, senior analyst at Greencrest Capital.

It will likely allow the wearer to see who's calling and to receive alerts and incoming emails and texts, Wolff added.

It may use voice commands, such as "weather" or "traffic," as the input method, said Roger Kay, founder and president of Endpoint Technologies Associates in Wayland.

And, like fitness devices such as FitBit, it may also have a pedometer or sensors tracking data such as heart rate.

"This is an opportunity for Apple to disrupt this category," Kay said. "An iWatch could re-establish Apple's reputation as an innovator."

The design, though, is being closely guarded by Apple.

"It has to work and have some value as a fashion accessory," Wolff said. "It needs to be sleek and stylish. It should be a little different from other watches on the market. It needs to be noticeable without being clunky or dorky."

It also needs to make people think twice before investing in Google's Glass wearable device, which also is due out this year.

Wearable computing devices will exceed 485 million annual shipments by 2018, according to ABI Research.

If Apple is able to make inroads in the business, it would boost the technology giant's stock, which is down by more than a third since peaking in September.

"It is clear that Apple needs to create a new category and do it soon," said N. Venkat Venkatraman, a Boston University management professor. "A watch is easier to launch than a TV. It's easier to produce since it is a variation on the iPod mini and the iPhone, and uses the same app structure and Siri plus Bluetooth integration. Moreover, it has global appeal and can rekindle Apple's cool factor."

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Report lays new foundation for housing policy

The housing market is on the mend but experts say the healing process has been held back by "rigid" rules for buyers and lenders.

A bipartisan commission of former Cabinet secretaries, ex-senators and top housing and economic experts released an expansive new vision for housing policy last week, calling for a greater role for the private sector and a more limited role for the federal government.

The panel also advocated for the elimination of government-sponsored mortgage lenders Fannie Mae and Freddie Mac, along with reform of the Federal Housing Administration to improve efficiency.

"Today, a number of obstacles prevent a return to the conditions that prevailed in the late 1990s — before lax underwriting infiltrated the system and contributed to the crisis — and stand in the way of qualified borrowers accessing mortgage credit," the Bipartisan Policy Center's 136-page report states. "Restoring the appropriately conservative underwriting standards in place before the housing bubble, with their focus on the overall creditworthiness of the borrower, could help to improve the health of the housing market."

The FHA appears to be more cautious than it used to be. The report notes that in 2012 the average FICO score for an FHA loan was close to 760 on a range of 300 to 850, compared to the 710-720 that the average Fannie Mae and Freddie Mac borrower had in 2001.

"The pendulum may have swung too far in the wrong direction," said Nicolas Retsinas, director emeritus of Harvard University's Joint Center for Housing Studies, who served on the housing commission. "We want to make sure we are not so strict with our lending standards to facilitate a full recovery to the housing market."

Other obstacles discussed in the commission's findings include a lack of access to credit for well-qualified, self-employed individuals, potential "put-back" risk to lenders liable for government-backed mortgages that default, and the sale price of distressed or foreclosed homes used as comparisons in appraisals of non-distressed property.

Retsinas also noted that the housing recovery has been bumpy because several important federal rules are still pending

"We need to increase clarity and consistency for many lenders. We also have to create a system that doesn't favor large lenders," he said. "We need to have a level playing field."

Jennifer Athas, a licensed real estate broker, can be reached on Twitter 
@JenAthas.

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PRIM eyes prime properties

The state pension fund is set to go on a billion-dollar commercial real estate buying spree and experts say now is a great time to buy.

About 10 percent — or 
$5 billion — of the state's
$52 billion pension fund is currently invested in real estate, much of it in direct ownership of properties, including the fund's home at 84 State St. in downtown Boston.

State money managers recently decided to borrow against the pension fund's real estate portfolio, raising $1 billion at favorable terms, and hunt for more properties to purchase.

"Our appetite near-term for real estate has gone up. We have five real estate managers who are trying to identify real estate we can buy," Michael Trotsky, executive director and chief investment officer for the state pension fund, told the Herald. "We are looking mostly for 'core' real estate — the best buildings in the best locations, primarily in the United States, but we don't specifically target any city. It will be throughout the country."

David Begelfer, CEO of commercial real estate trade group NAIOP Massachusetts, said it's a superb time to buy for anyone who "does their homework."

"The market in Massachusetts, especially Eastern Massachusetts, has been extremely strong over the last couple of years and looks to be strong going forward," Begelfer said. "Many markets around the country are still recovering and so there are certainly some opportunities."

The pension fund already owns 87 commercial properties, plus several others through partnerships.

For example, in California, the fund owns the Market Street office and retail building in downtown San Francisco, a shopping center anchored by a Safeway in Mill Valley, and the Carmel Medical Office building in Rancho Bernardo.

The portfolio includes 2020 K St. in Washington, D.C. — the 11-story home to several Bingham McCutchen lawyers and the George Washington University Press — and the Sawgrass Lake Center, an office complex in Sunrise, Fla.

Last year, the pension fund returned 13.9 percent, much higher than its 8 percent target — and starting this year the state's target return has been increased to 8.5 percent. There are 522,800 members of the pension plan — 329,000 active and 199,000 retired, according to the state treasurer's office, which oversees the pension fund.

Trotsky said he expects the pension fund to invest the extra billion dollars within two years. The last time the pension fund went on a similar real estate buying spree in the 2000s, it netted $400 million extra.

"We're taking advantage of the low-interest rate environment and we expect it to generate $400 million in 'excess' profits over the next seven and a half years," he said. "It was considered very safe by outside investors. (The pension fund) is so big and so stable that it's not considered a big risk to issuers of this debt."

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DeLeo: Gov’s tax hike plan damaging

House Speaker Robert DeLeo will tell Hub business leaders today that working families and businesses shouldn't have to suffer "collateral damage" from Gov. Deval Patrick's plan to hike taxes by nearly $2 billion to pay for transportation and education.

"Sensitive to today's economic realities, I'm worried that the administration's proposal places too heavy a burden on working families and businesses struggling to survive," DeLeo says in a speech this morning to the Greater Boston Chamber of Commerce, according to his prepared remarks.

"We want to minimize the pressure on Massachusetts citizens as we find a way to meet our goals. If we are to pass a new revenue package, I believe it should be far more narrow in scope and of a significantly smaller size."

Patrick has proposed nearly $2 billion in new taxes to fund education and transportation projects and wants to hike income taxes; make regular increases in MBTA fares, RMV fees, highway tolls and the gas tax; and raise taxes on cigarettes, candy and soda, while lowering the state sales tax.

Some lawmakers prefer separating the $1 billion in transportation financing from the full state budget, with user fees instead of broad-based taxes.

In his chamber speech, DeLeo will also discuss funding for education, another Patrick priority.

"These areas cannot be sufficiently addressed without the injection of additional revenue into the system," DeLeo says. "While we agree we need to focus on these two areas, I do differ on the amount of new revenue that Massachusetts families and business should be asked to contribute."

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Longtime Mass. ice business on block

Longtime Mass. ice business on block

GLOUCESTER, Mass. — A company that's been supplying Gloucester fishermen with ice for decades is for sale as the fishing industry faces a brutal 2013.

The owner of Cape Pond Ice Co. tells the Gloucester Times that he has no choice as local fishermen absorb a 77 percent decrease in their cod catch this fishing year, which starts May 1.

Scott Memhard is asking $2 million for the property, which includes 180 feet of dockage where boats stop to ice up before heading out.

The business has diversified as the local fishing industry has declined. It increased T-shirt sales after a character wore a Cape Pond Ice shirt in the movie The Perfect Storm. He also marketed his ice for cocktails.

But he said the drastically declining fish catch is too damaging to his core business.

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Evernote hacked: 50 million passwords reset

LONDON — Online note-taking service Evernote Corp. has been hacked and is resetting all its 50 million users' passwords as a precaution.

The Redwood City, California-based company said in a post published late Saturday that an attacker had been able to access sensitive customer information and that every user would have their account reset "in an abundance of caution." In a follow-up email sent Sunday, the company said it believed the attack "follows a similar pattern of the many high profile attacks on other internet-based companies that have taken place over the last several weeks" — an apparent reference of recent breaches at Facebook Inc., Twitter Inc., and Apple Inc.

However the company said the attack did not appear to be linked to Java, a commonly used computer programming language whose weaknesses have been used as springboards for other recent hacks.

Evernote said the attack, which it described as "sophisticated," was able to compromise an unspecified number of customers' encrypted passwords. Decoding such passwords can be difficult but possible.

The company said it has seen no evidence that any customer data had been tampered with or that any payment information had been compromised.

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The Ticker

What's up, online doc?

Rite Aid has expanded an online doctor service for its drugstore customers that is limited to virtual visits, but cheaper than a traditional primary care appointment.

The company, the nation's third-largest drugstore operator with 4,600 U.S. stores, said its NowClinic Online Care program is available at 58 locations in four cities: Baltimore, Boston, Philadelphia and Pittsburgh. Its rivals, Walgreen and CVS, also run in-store clinic programs. Walgreen operates more than 370 Take Care clinics, while CVS runs more than 600 MinuteClinics.

Rite Aid's service connects drugstore customers with doctors for a video or phone consultation about a range of ailments like allergies, bronchitis, rashes, the flu or sinus infections. Rite Aid officials say the concept aims to improve access to health care.

TODAY

• At a community meeting in South Boston, developers discuss plans to demolish St. Augustine's Church and build a residential complex.
• Men's Wearhouse reports quarterly financial earnings.

TOMORROW

• The Harvard Allston Task Force meets at the Honan-Allston library branch.
• The Institute for Supply Management Index releases its service sector index for February.

WEDNESDAY

• Framingham office supplier Staples reports quarterly financial results.
• The Federal Reserve releases the "Beige Book" report on regional economic conditions.

THURSDAY

• The Greater Boston Chamber of Commerce hosts a government affairs forum featuring House Speaker Robert DeLeo, at Boston Park Plaza.
• Massachusetts jobs figures for January and revised 2012 unemployment rate, labor force data and jobs estimates are released.
• The Federal Reserve releases consumer credit data for January.

FRIDAY

• U.S. Labor Department releases the unemployment report for February.
• Rockland Trust has appointed Brian Slater to the bank's commercial lending team as vice president. Prior to joining the bank, Slater served as senior vice president and team leader at People's United Bank.
• Blueprint Medicines of Cambridge has added Dr. David Schenkein, chief executive officer of Agios Pharmaceuticals, to its board of directors.

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Mustering a new tenant for Navy Yard landmark

The Muster House — an unusual, octagonal building that served as a worker assembly point at the Charlestown Navy Yard in the 1800s — will have a new leasehold owner for the first time in more than 15 years.

The owner of a building consulting firm in Cambridge is finalizing a deal and may relocate his business to the 31 Fifth St. property, which has been owned by the Boston Redevelopment Authority since a 1970s handover by the federal government.

"From a community point of view, it's always good to see an active user in that building," said Mark Rosenshein of the Charlestown Neighborhood Council. "It's a very small and unique space, so it takes a very unique user to make it work."

Though tiny at less than 2,900 square feet and well off the Hub office market's beaten path, the Muster House drew the likes of dot-com darling Jeff Taylor. The Monster founder picked the historic pad for his Eons startup, working solo there for the first few weeks.

"An entrepreneur starts in a very lonely place," Taylor told Bloomberg News in 2006. "It's when you think you have a great idea and everyone around you thinks you're crazy, and you act on it."

Built between 1852 and 1854, the four-story brick building is surrounded by a porch and topped by a clock tower. Shipyard workers mustered daily at the sign, receiving assignments and pay. The landmark is down the street from the USS Constitution's berth.

The next tenant may be Building Enclosure Associates, whose owner, Michael Velji, is close to finalizing a purchase of the lease from the Royalston Trust.

Velji was not available for comment, but an executive at the firm, Ed Mannix, said a deal may be done later this month.

The Royalston Trust was set up by the late Werner Bundschuh, a filmmaker and local real estate developer who acquired the Muster House lease at a foreclosure auction in 1997. At the time, the trust assumed a 65-year lease with the BRA, paying about $4,300 a year and taking responsibility for renovations and maintenance.

"We actually had quite a bit of interest," said Nancy Kueny, a broker at Gibson Sotheby's International Realty handling the lease sale for the trust. "It's probably one of the most interesting buildings in the Navy Yard."

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