Committee on Taxi Medallions: bank loans and unsold medallions

The Committee on Taxi Medallions met Monday, August 11, starting at 7:00 pm in the third-floor lounge at Town Hall. Committee chair Josh Safer was absent; Amid El-Khoury had resigned from the committee, and he joined the fairly large audience. Committee member Michael Sandman chaired the meeting.

Two Brookline Bank representatives described experience with loans for Boston and Cambridge taxi medallions: William Mackenzie, Senior Vice President for Commercial Lending, and Timothy Steiner, Vice President for Commercial Lending. So far there has not been a loan in default, they said. They attribute the record to a strong work ethic among the borrowers. If a loan were to fail, they said, they would seize the medallion used as collateral and sell it. They claimed to be unaware of any decline in medallion market values.

That could be a bit behind the times. The owner of Hello Taxi said there are currently 235 medallions available for sale in Boston, and apparently there are no buyers. A year ago, he said, the unsold inventory was near zero. He believes that mobile technology deployed by Uber, Hailo, Lyft and Sidecar has undercut the market for taxi medallions, at least in Boston.

Betsy DeWitt, a member of the Board of Selectmen, spoke somewhat skeptically about medallions for Brookline taxis. She described circumstances in Washington, DC, which houses a large, regulated fleet of taxis but does not use a system of permanent, transferrable medallions.

As at the recent hearing held by the committee, Bay State Taxi owner Joe Bethoney said the town should sell taxi medallions to current, long-term taxi operators and drivers for nominal fees and earn revenues when the medallions are subsequently resold.

At least one and possibly more articles are being prepared for the fall town meeting, now scheduled to start on November 18. It is not yet clear whether the committee will be able to sort out the issues and arrive as a coherent and workable approach to recommend this fall to the Transportation Board, to the Board of Selectmen and possibly to town meeting.

– Beacon staff, Brookline, MA, August 12, 2014


Mike Beggs, Hailo’s black car service like ‘stabbing taxi drivers in the back’, Taxi News (Toronto, ON), July, 2014

Geoffrey Fowler, Testing UberX, Lyft and Sidecar against a cab in six cities, Wall Street Journal, March 12, 2014

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