Nucci: Walsh shows resolve on casino issue

Just in case anyone is still wondering what kind of a mayor Marty Walsh will be, he just sent the Massachusetts Gaming Commission and its Chairman Stephen Crosby a very clear answer. He'll be a mayor who won't back down, and Boston is not going to be a city to be trifled with or dismissed.

So now is the time to see a similarly strong stance from those who would be our next governor. Our current governor is taking the position that the process is playing out just fine, and he has shown zero interest in getting involved.

And while the gubernatorial candidates have made broad statements about gambling in general, they too have walked away from the all-important licensing process. It's easier to just say, "Not my job — call the Gaming Commission."

The process of awarding a casino license in Greater Boston has been amended and twisted into a mysterious patchwork mess created by a gaming panel that has apparently been making it up as they go along. Nobody even knows the rules anymore.

Walsh believes that Boston should be considered a host community to either casino, and he wants his position dealt with seriously. At Suffolk Downs it seems abundantly clear that the casino complex straddles both Boston and Revere. The Everett project may also be using Boston land. Both projects should then require an opportunity for Boston voters to have their say at the polls.

But the commission has seemed annoyed by, and somewhat dismissive of, Boston's stance. Big mistake. The city has now asked Crosby to step aside, charging him with setting up a process which "stack(s) the deck" against the city, and creating "a cloud over the proceedings."

Hello! Get the message? This will not be a "nice-to-see-you; see-you-later" exercise. Not if Marty Walsh can help it.

Yet from the gubernatorial candidates, there is the deafening sound of crickets on this issue. This is not a casino complex that will be in some out-of-the-way location deep in the woods. This is an urban mega-project. Boston is the capital city and economic engine of the commonwealth.

Do the candidates think the decision on an urban casino, with all its burdens and negative impacts, should rest only with Steve Crosby and the other four commission members?

Which casino makes more sense, the Wynn or the Suffolk Downs plan?

Should Boston get a say on these projects, both of which throw huge burdens on the city?

There should be no ducking behind "the process."

So who will it be? Which candidate wants to weigh in first? Mayor Walsh is stepping up. Who's ready to take a stand? We're all ears.

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Mayor ups ante on Crosby

It's nothing personal, just hardball politics — that's how several Boston city councilors viewed Mayor Martin J. Walsh's decision to call out state gaming czar Stephen Crosby this week, pressuring him to step down from deliberations over who gets the eastern Massachusetts casino license.

"I'm not aware of any bad blood between Walsh and Crosby, but having worked with (the city law department), they always felt the Gaming Commission has not been fair to the city of Boston," said Councilor Sal LaMattina of East Boston. "I've told the commissioner himself that I'm frustrated with how the commission has treated Boston, and not allowing us to be a host community."

City Councilor Michael Flaherty said he was not aware of any prior dust-ups between the mayor, a former state rep, and Crosby when both men served on Beacon Hill. Crosby was secretary of administration and finance under governors Paul Cellucci and Jane M. Swift.

"Marty, as the CEO of the city, has a responsibility to fight for the best deal for Boston, particularly for the impacted communities of East Boston or Charlestown, and the City Council supports his efforts," Flaherty said.

Boston is demanding host community status to proposed casinos on its borders in Revere and Everett, and has rebuffed offers from the commission to hold a hearing to decide the matter. Walsh has called for votes in East Boston and Charlestown on the Mohegan Sun-Suffolk Downs and Wynn Resorts projects because of the impacts Boston would face despite the gaming parlors not being within city limits.

In a letter to the commission Thursday calling on Crosby to remove himself from the greater Boston casino vote, a city lawyer accused the chairman of making "prejudicial" statements critical of the city for asserting its host status. It also cited a lawsuit against Crosby by Caesars Entertainment that claims he favored the Wynn casino proposal that would be built on property in Everett owned in part by Crosby's former business partner.

"I think emotions are running high, probably higher than is warranted. The chairman is a good man. The mayor is a good man. And we want a good solution," Gov. Deval Patrick said yesterday. "I wish there was, frankly, kind of a cooling-off period, and there are days when I wish that they would start over."

Elaine Driscoll, spokeswoman for the Gaming Commission, said Crosby has no plans of recusing himself. "At this point, the chairman will be continuing with his participation," she told the Herald, declining to discuss the matter further.

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Finish line to see tight security

The parties will go on this year along the Boston Marathon route, but attendees can expect tighter security at some of the more popular bashes in the wake of last year's bombings — especially those near the race's Boylston Street finish line.

Hosts have hired security contingents and are requiring RSVPs and names on lists for entry to parties that in year's past maintained more of a drop-in, open-house policy.

A "significant" show of security, including city and state police, will be at 
Forum on Boylston Street, outside of which the first bomb exploded last year in the middle of the Joe 
Andruzzi Foundation's marathon fundraising party.

The restaurant will host the foundation's party again this year.

"There's going to be a significant presence there as opposed to years past," 
Forum spokeswoman Nicole Russo said. "Forum will have their own security on hand, but they also have been working with city and state authorities, and they will have a presence as well."

Marlo Marketing/Communications, whose office overlooks Boylston Street, hired a security team for the first time for its seventh annual party that typically attracts up to 200 over the course of the day.

"We've never done security before, we've never even done a formal RSVP," owner Marlo Fogelman said. "This year we asked for an RSVP, and have security guards at the front door. I (will have) people down there who will be checking names as well. It's just going to give us some control and a sense of safety with who's in the office."

The two-level office of the firm — one of many Boylston Street businesses that were shut down for more than a week following the bombings — is right next to Forum, and shrapnel from the first bomb hit its windows.

"Nothing incredibly damaging ... pictures were off walls, and our sign fell off. Tons of dust and smoke and debris came in," said Fogelman, who never gave a thought to not hosting the party again this year.

"(The security) was just something I wanted to do for the safety of our guests and the safety of everybody."

Meanwhile, the Charlesmark Hotel, which will be holding its 14th annual marathon party on its Boylston Street patio, plans no extra security this year beyond its usual door people and management staff.

"Business as usual for us," said operating partner Mark Hagopian, who felt the blast of the first bomb last year and captured the immediate chaos on video. "We're open to the public, and we're calling it a marathon celebration party, same as we do every year."

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Bruins shop pops up by TD Garden today

Just in time for the Bruins' first playoff game, a unique shopping experience for fans is springing up today outside the 
TD Garden.

As part of a partnership between the team and Reebok, the first Bruins pop-up shop will open at 4:30 p.m. and stay open until the end of tonight's game against the Detroit Red Wings.

The pop-up shop is in a large shipping container and will carry a variety of items from playoff apparel to headgear to jerseys. Fans can also enjoy pregame events and giveaways, including photos in front of a Bruins backdrop and prizes, said Keith Leach, NHL market director for Reebok International.

"A large amount of people will have access without having to go into the stadium itself," Leach said of the location next to North Station.

The Reebok-supplied merchandise will include specially designed Bruins graphics only available at the shop and in the team store. Similar pop-up shops appeared in Los Angeles and Chicago during their Stadium Series promotions, but this will be a first for Bruins fans.

The shop will open before each home Bruins playoff game and, depending on the public's interest, Bruins management may also decide to keep the shop open during away games, Leach said.

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The Ticker

Massachusetts gains 8,100 jobs in March

Preliminary estimates show Massachusetts gained 8,100 jobs in March, while the state's unemployment rate dropped to 6.3 percent from 6.5 percent the previous month, the state office of Labor and Workforce Development said yesterday.

The U.S. Labor Department had previously reported the national unemployment rate stood at 6.7 percent in March.

In addition to the estimated increase of jobs in Massachusetts last month, the federal Bureau of Labor Statistics also revised its February estimates to show a net gain of 5,500 jobs in February, up from the previous estimate of 3,800 jobs.

State officials are pointing to a net gain of 50,400 jobs in the past 12 months.

Health info breach case unrelated to Connector website security

Health Connector officials said yesterday an isolated case of a person's information being compromised, that was raised by state Rep. Tricia Farley-Bouvier, had nothing to do with security on the beleaguered Obamacare website.

A spokesman for the Connector said officials followed up with Farley-Bouvier's office and determined it was a "clerical error by a provider" that resulted in a billing mistake. "It has nothing to do with our website, the Connector or the commonwealth," said Connector spokesman Jason Lefferts

Facebook launches location-sharing

Facebook users in the U.S. will be able to see which of their friends are in close proximity using a new feature the company launched yesterday.

Called "Nearby Friends," the optional tool will only be available to people who choose to turn it on. It uses your smartphone's GPS system to tell your Facebook friends you are nearby — provided they have the feature turned on.

The Nearby Friends feature will be turned off by default, so people shouldn't expect to broadcast their location unknowingly to their Facebook friends and acquaintances.

TODAY

 Conference Board releases leading indicators for March.

THE SHUFFLE

 Cassidy Turley, a leading commercial real estate services provider, announced George O'Connor has joined the firm as an associate specializing in the Metro South Suburban markets. O'Connor comes to Cassidy Turley from Blair Academy, where he worked as the director of international recruitment. In his new role at Cassidy Turley, O'Connor will be responsible for new business development and providing real estate consulting services for clients.

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Boston-to-Beijing flights set for June takeoff

Gov. Deval Patrick yesterday welcomed to Boston the founder of Hainan Airlines, which will begin nonstop flights between the Hub and Beijing in June.

"We've been having this conversation about a direct flight to Beijing for seven years now," the governor told HNA Group Co. Chairman Chen Feng, a Harvard Business School alumnus he met on a trade mission to China in 2007. "But good things come to those who wait."

On June 20, China's fourth-largest airline will begin flights between the two cities four times a week.

"I hope with this flight, HNA builds a new bridge between Beijing and Boston," Chen said at yesterday's Harvard Club reception.

From July 21 to the end of August, Hainan will have daily flights between the two cities before reverting back to four weekly, said Joel M. Chusid, Hainan's executive director in 
the U.S.

"We want to go daily," he told the Herald, "but we have to watch demand."

Massport CEO Thomas Glynn said the new service will be key for business travelers, tourists and the more than 10,000 students from China who study at one of New England's 270 colleges and universities. It will also be key to the nearly 120,000 Chinese citizens who live in the region — the fifth-highest number in the U.S., Glynn said.

"Each year, about 212,000 passengers fly between Boston and China — the sixth most in the United States," he said, "but we are also the largest market to Beijing and Shanghai without nonstop service."

Boston will become Hainan's fourth North American destination, after Seattle, Chicago and Toronto, and the first on the East Coast.

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Big cuts at UMass hospital

Worcester-based UMass Memorial Health Care, the biggest hospital system west of Boston, is slashing hundreds of jobs and cutting services in an attempt to close a gaping budget hole.

The 103 job cuts come on top of 285 positions eliminated since October. UMass Memorial Medical Center President Patrick Muldoon told the Herald the changes are needed because the hospital has seen a dip in patient volume. He didn't rule out future cuts.

"We continue to look at lots of options," Muldoon said. UMass Memorial posted a $55 million budget deficit last fiscal year.

The changes announced yesterday include the closing or consolidating of operating rooms, inpatient rooms, endoscopy services, IV therapy and more. UMass Memorial CEO Eric Dickson said in a blog post that the big Worcester hospital can't be all things to all people any more and must shrink its footprint.

The Massachusetts Nurses Association blasted the changes, which it said would cause 81 nurses to lose their jobs. The union negotiated contracts last year that forced the hospital to hire more nurses.

"All the gains we made with the hospital over the year — we are in fear of being undermined by this constant barrage of cuts," union spokesman David Schildmeier said. "We believe this is going to have a really negative impact on the quality of care for the patients."

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Feds: Freeze didn’t stop spendthrift schemer

Even after he was indicted last year for running a Ponzi scheme that bilked dozens of people out of more than $10 million, a West Roxbury man flouted an asset freeze and other court orders by taking cash advances on new credit cards and spending money on lavish meals, rare coins and shopping excursions to Bloomingdale's and Barney's, federal prosecutors said yesterday.

Steven Palladino, who was sentenced in January to 10 to 12 years in state prison, now faces 25 counts of criminal contempt, according to the U.S. Attorney's Office, with a maximum penalty of life in prison if convicted.

"He's been thumbing his nose at the system for years," said Dr. Ronald Nasif, 62, of Roslindale, who lost his life savings — close to $2 million — to Palladino's scheme. "This is too little too late."

From May to November 2013, Palladino violated court orders in the civil case brought by the Securities and Exchange Commission by incurring thousands of dollars in credit card charges for collectible coins and meals at Strega, Tartufo, and Smith & Wollensky, prosecutors said. He failed to deposit thousands more in cash advances, as well as $9,500 from the sale of his 2004 Ford truck, into a court-established escrow account, prosecutors said.

Palladino, 57, also violated a court order to undo his transfers of a 2012 Mercedes, a 2012 Range Rover and a 2013 Audi to his wife, Lori, and about $137,000 in new loans on those vehicles by last November, prosecutors said.

In January, Lori Palladino was sentenced to two years, suspended for five years, and their son, Gregory Palladino, was sentenced to two years, with five years probation. All three were ordered to pay restitution for convincing dozens of people to loan Viking Financial Group more than $10 million, promising high returns, and then transferring the money into their personal accounts.

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Both sides weigh in on South End biolab

The battle between supporters and opponents of BU's controversial South End biolab continued at a hearing yesterday during which city councilors considered a ban on some research, fearing it could lead to deadly disease outbreaks.

"The type of research that will be done in this facility could pose a very serious risk to the health and safety of the public," City Councilor Charles Yancey said. "I don't want to see our first responders in harm's way because of a catastrophic event taking place in the Level 4 lab."

Boston University's National Emerging Infectious Diseases Laboratories on Albany Street already are conducting research, but want to expand to what falls under the designation of "biosafety level 4" — dangerous and exotic viruses such as Ebola and Marburg.

"The Roxbury community has enough challenges," Councilor Ayanna Pressley said. "I see no reason to be inviting in those other threats ... 
I am pro-science, but more than anything I am pro-community."

But Ronald Corley, BU's associate provost for research, said the lab is a national resource that can be used for good. "We know this work can be done safely in the South End ... This is public health," he said.

BU Police Chief Thomas Robbins displayed the vials and cases that samples would be locked inside.

The room was packed with people on both sides of the issue, with lab supporters wearing stickers that said "I stand for cures."

Waiting to testify, Robert Coughlin, president and CEO of the industry group MassBio, told the Herald, "Banning this research would send a chilling message to the global research community, which is contrary to Boston's standing as a research leader."

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China's growth slows to 7.4 percent in 1Q

BEIJING — China's economic growth slowed further in the latest quarter but appeared strong enough to satisfy Chinese leaders who are trying to put the country on a more sustainable path without politically dangerous job losses.

The world's second-largest economy grew by 7.4 percent over a year earlier, down from the previous quarter's 7.7 percent, government data showed Wednesday. It matched a mini-slump in late 2012 for the weakest growth since the 2008-09 global crisis.

Beijing is trying to guide the impetus for China's economic growth toward domestic consumption instead of trade and investment following the past decade's explosive expansion. The top economic official, Premier Li Keqiang, last week ruled out new stimulus and said leaders will focus on " sustainable and healthy development."

"Chinese growth held up better than expected last quarter and there are signs that downwards pressure on growth has eased somewhat," said analyst Julian Evans-Pritchard of Capital Economics in a report.

Asian stock markets rose, with investors relieved the slowdown wasn't as severe as some analysts had forecast.

Retail sales and factory output were weaker than in the previous quarter but improved in March. On a quarter-to-quarter basis, economic growth from January to March slowed to 1.4 percent from the previous period's 1.8 percent.

The data reflect official efforts to shift emphasis from industry to services such as restaurants and retailing that generate more jobs with less investment.

"The resilience of the relatively labor-intensive services sector has helped the labor market hold up reasonably well," said RBS economic Louis Kuijs in a report.

The latest growth is below the official annual target of 7.5 percent announced last month. But Chinese leaders appear willing to miss that target so long as the economy creates enough jobs to avoid potential unrest. In a sign of concern about employment, they launched a mini-stimulus in March of higher spending on building railways and low-cost housing.

"Policymakers appear comfortable with the current pace of growth," said Pritchard. "The policy response to today's numbers is likely to be muted."

The quarterly expansion matched the third quarter of 2012, when growth tumbled after global demand for China's exports weakened unexpectedly while the government was tightening lending and investment controls to cool surging inflation.

The past decade's rapid growth, which peaked at 14.2 percent in 2007, was driven by an export boom and spending on factories, apartment towers and other assets. But that model is losing its ability to drive growth. It also left China with badly polluted air and water.

Chinese leaders have promised sweeping changes to make the economy more competitive and efficient, including opening more industries to private and foreign competitors.

They have issued a steady drumbeat of minor changes in recent months such as making it easier to register a business but more basic change such as in the state-controlled banking system is politically fraught and could take years.

Last year's economic growth of 7.7 percent was the strongest of any major economy but tied 2012 for China's slowest expansion since the 1990s.

Weaker growth could have global repercussions, hurting Asian economies and others such as Australia and Brazil for which China is the leading market for iron ore, other commodities and industrial components.

Chinese imports suffered an unexpectedly sharp contraction of 11.3 percent in March in a sign of weak demand for raw materials in manufacturing and construction.

___

National Bureau of Statistics (in Chinese): www.stats.gov.cn

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