Board of Directors Meeting

1.         Informal Discussion:  Herb Pence spoke about the status of the proposed Rose Kennedy Greenway streetcar.

2.         Call to order at 6:12 p.m.

3.         Vincent Lawrence Dixon made a presentation to the Board.

Introduction (Romin):  Mr. Dixon was educated at Harvard.  He is politically active in the Cambridge community.  He is the host of a community cable program.

Mr. Dixon presented his COGNET © (“Communities Opportunities Growth Nurturing Enterprises in Transit”) proposal for the MBTA, which addresses:

• The needs to improve non-fare revenue in an incremental and quality way.
• The appropriateness of increasing the rôle of the T, and public transit, as a series of service destinations, as well as carrying passengers, thereby increasing service quality to the total customer experience, and overall revenues at the same time.
• The consideration of strengthening the T system in numerous ways, such as the Boston signature location of South Station, the New York signature location of Grand Central [Terminal], the Underground City of Montreal, and other places.

Several months ago, he noticed that T leadership is changing.  He contacted the new General Manager [Daniel Grabauskas].  There were a variety of responses at the T.  One aspect of his proposal is more commercial activity at stations.

Dixon developed a proposal for economic growth and shared value.  He wants to provide management services to transportation constituencies.

The key issues for the T is quality of service, not just extent, and growth of non-fare revenues.  More broadly, to develop transit malls.  Definition of a ‘transit mall’:  Take what you have at Alewife and go further.  In Montreal, there is a lot of this—a third of the downtown buildings are connected underground.  Security is as issue, but in general, volumes of people reduce crime.  The components of [real estate] revenue are a stipulated rent, plus a sharing of rent [for revenue over the stipulated amount].  Typical kinds of businesses:  Restaurants, cleaners, services.

Revenue projections:  If you assume ten businesses at the usual rent, at a purely minimum number, it can get you $10 million a year.  You take an existing station and do some development, as at North Quincy.  The revenue the T would get is largely unencumbered.  It would lead to new jobs.  There are lots of pluses.  It is an almost pure gain.

Ultimately, the government and private sectors have worked together.  Taxes are tight, so non-fare revenues are important.

Signature locations:  South Station in Boston, Grand Central Terminal (New York) and Montreal.  This is beneficial as a partnership.

If the T can provide [ancillary] services that people need anyway (e.g. dry cleaners) and [currently] reach by car, [it will make it more attractive to riders as well as attracting transit-oriented development and the consequent revenue.]  In the book Streetcar Suburbs [by Sam B. Warner, Jr.], observe this:  Transit systems grew the areas, but rarely shared in the revenue from them.

I would like your interest and support.

Additional discussion:

Dixon: 

1. I have to have a variety of input.
2. If you would like to support this, I would appreciate your efforts.

Revenue would improve transit.

The educational aspect is for everyone to see a commonality of interest.

Q. (Rick Arena):  What management structure would you have at the T?  How would you remove the entrenchment at the T?

A. (Dixon):  The T has been rather lackadaisical at development.  Harvard has been some of the most successful at figuring out this type of structure, even though it is rather [hidebound].  You would have to have a board with developers as part of the membership mix.  The T could be reformed.  There is enough angst among the riders that the T could come around.

In Cambridge, there is demand for land based on a walk to work and a walk to the subway.  Linkage fees follow this.

Q. (Herb Pence):  At Wellington [Station], there is a lot of parking.  If we put in housing, you could have more revenue.

A. (Dixon):  If the T looked at this, at the University Shuttle system, they should get into this.

Q. (Fred):  Every passenger the T gets represents an expense.

(Herb):  I ran a university shuttle where the students had passes and the paying public was welcome.  And got federal aid.

A. (Dixon):  You need entrepreneurial connections.  Venture capital knows what bonding is.  Thirty years ago, people laughed at what Montreal wanted to do.

Q. (Rick):  Venture capital wants ten times their money back in three years, not 5% per year.  They also hate government intervention and entanglements.

A. (Dixon):  The T does have some entrepreneurial examples.  Do you want this to play out?  There should be some mall developers as partners.

(Fred):  We can put a bug in the ear of RTAC [Regional Transportation Advisory Council] about creative ways of funding transportation projects.  We can propose you do a presentation to them.

By consensus of the Board, Fred will follow through on this.  Romin should do the paperwork to forward it.

4.         Motion made and seconded to accept the minutes of the previous meeting (14 Sept. 2005) as written.  Passed.

5.         Officers’ Reports.

            A.        John Hostage, Treasurer:

            Barry Andelman finally completed negotiations with the Harvard Club about charges for the previous Annual Meeting.  The cost was $1800 more than we brought in.

            Car-Free® sales:  We have received $500 in royalties this year.

            B.         Rick Arena met with [former state representative] John Businger about the North-South Rail Link.  Rick has been thinking about how to heighten our profile.

            C.        Fred Moore and Romin Koebel:  At the RTAC meeting today, there was discussion of creative financing for infrastructure.  Steve Olanoff is the new RTAC chairman;  he has a positive attitude to our aims.  It should not be difficult to get a reconnaissance study done.  Transit-oriented development will not happen spontaneously.  We have to MAKE it happen.  Comment by Herb Pence:  Cities fear little people.  Little people use schools.

            D.        Fred R. Moore, President, re A Framework for Thinking:  A Plan for Action:  There were lots of transit advocates at the Boston meeting.  In Lynn, the advocates were out in the afternoon.  The evening session had the motorcycle lobby and the trucking interests.  They felt that wider roads solve all problems. Fred said that a good transit system makes it such that people who shouldn’t be on the road aren’t.

            Fred:  Highway users are those who are the most subsidized transportation users.

6.         Old Business

            Comments to the Romney Administration about the Framework, as in paragraph 5D above.  Fred compiled a skeletal group of statements to be fleshed out as a letter.  The Board served as a committee of the whole to consider the various issues raised.  With the Board’s participation, Fred will revise his draft and submit it before the Monday deadline.  Final comments on Fred’s revised letter (to be available by e-mail) must be in by Saturday to be considered.

7.         New Business

Rick Arena on an APT business plan.  We can’t wait for July to send out dues requests.  They should go out in November.  All our dues are tax deductible.

For us to survive, we have to emphasize our value to people.  Have to re-institute the newsletter.  This is also a way for people to get interested in the organization.  We should partner with the Massachusetts Bay Railroad Enthusiasts.  There should be an e-mail to members once a month (not to be confused with the list-serve).  As an example, we need people to attend meetings.  And to write op-ed pieces.  We should assign writing projects to our members.  We should get a bulk mailing permit, allowing us to spend 12¢ in postage for a two-ounce envelope.

The first thing is to get the dues statement out.

Fred:  The pilot is a newsletter and dues mailing.

“Meet your officers.”  A one-paragraph biography of the Board members.

8. The meeting adjourned 8:10 p.m.