Cape Business Trends newsletter August 16, 2007
A new executive director for the Cape Cod Commission?
Insiders say the job is his, if he wants it.
Paul Niedzwiecki, who is leaving his post as Barnstable assistant town manager, is the choice to replace Margo Fenn as executive director of the Cape Cod Commission. Details are being negotiated, including salary, sources indicate.
Support is strong within the county government for Niedzwiecki. He would be a distinct contrast to Fenn, whose leadership at the commission has been considered by many to be somewhat deaf to the interests of local governments and the business community.
Barnstable has been one of half a dozen towns on the Cape openly discussing ways to secede from the commission, a move that would require state legislative authority.
Niedzwiecki certainly understands local interests and has worked routinely with the Cape Cod Commission. He also has political experience on Beacon Hill as a legislative aide.
County leaders are very supportive of Niedzwiecki. One insider said he would be very surprised and disappointed if negotiations did not get resolved as early as next week.
Niedzwiecki already has tendered his resignation as assistant town manager. After reviewing more than 40 applicants, some close to the selection process encouraged Niedzwiecki to apply for the job. The final issue could be salary. There may be very little difference between his $95,000 salary in Barnstable and the commission job’s advertised top range of $101,000.
Sotheby brand extends to the Lower Cape
Two years after Sotheby’s International Realty entered the Cape market with its acquisition of Cotton Real Estate, it is extending its reach to the Lower Cape. Next week, it will be officially announced that oldCape.com Real Estate in Orleans and Brewster is joining the Sotheby’s International Realty luxury real estate network.
OldCape.com Real Estate is only four years old, but has rapidly grown to be among the leaders in residential sales on Cape Cod. It currently has 26 sales associates, but like so many independent brokers, it is becoming necessary to be part of a national, if not global, network to enhance marketing and support infrastructure.
Earlier this year, oldCape.com cofounder Dolores Alberti sold her share of the business to Jeff Moore. Original partner Howard Hayes remains.
Sotheby’s International Realty was founded in 1976 as a real estate service for clients of Sotheby’s auction houses. Today, it brokerage offices in key metropolitan and resort markets, including Manhattan, The Hamptons, N.Y., Greenwich, Conn., Palm Beach, Fla., and Southern California.
While Cotton Real Estate was acquired by Sotheby’s, oldCape.com Real Estate becomes part of Sotheby’s expanding network of affiliated real estate brokerages around the nation. Its new name will be oldCape Sotheby’s International Realty.
A new hotel for the Cape?
While developer Len Cubellis still expects to build 300 units of affordable housing at his CanalSide Commons site off the Bourne Rotary, there is the possibility the homes could be replaced by the largest hotel on the Cape.
Several hotel groups are investigating the feasibility of building a 400-room hotel and conference center on the 35 acres Cubellis plans for a Chapter 40(b) affordable housing development. That prospect has many in Bourne unhappy because it would add substantial costs for the school district and other infrastructure services.
A 400-room hotel and conference center would be 40 percent larger than the Four Points Sheraton Resort in Hyannis, which has the largest conference facility on the Cape. A location at the Bourne rotary makes increasing sense with plans for a giant shopping mall off Route 25 in Wareham and a proposed casino in nearby Middleboro.
Cubellis, whose original plans for a very large retail site was rebuffed, still plans to build 85,000 square feet of shops and restaurants on the 152-acre property. The state’s Chapter 40(b) rule allows Cubellis to construct housing without local approval as long as he meets affordable housing requirements.
The most likely hotel developer would be Great Lakes Hotel Co., which had expressed interest in the CanalSide Commons project when Cubellis first unveiled his grander plans.
Cubellis emphasized that he is not advocating a hotel plan; just transmitting hotel developer interests. With the ability to move forward on his current plans, Cubellis may not be in favor of a protracted approval process for a hotel.
Stronger roots for a Middleboro casino
The Mashpee Wampanoag tribe is planning to purchase another 200 acres in Middleboro along with 325 acres it already owns in anticipation of a casino there. That development would include not only a casino but a 1,500-room hotel, shops and entertainment.
Succession planning is critical
There is an impending crisis being driven by the aging of the baby boomers. Within the next 10 years, about two of every three small to medium-sized enterprises will be transferred as older owners look to cash out. In addition, many non-owners will be leaving the workforce.
Who will be around to buy the businesses? Who will be around to operate these companies both leading up to and after a sale?
The exodus will put tremendous pressure on finding enough willing buyers and enough qualified employees for all the businesses that will be in the marketplace. This, in turn, will create downward pressure on selling prices.
With this in mind, Cape Business, in association with Sovereign Bank, ROCG Shepherd & Goldstein Consulting Group LLC and Delta Capital Group, will host two breakfast seminars on Succession Planning on Thursday, Sept. 27, and Friday, Oct. 12, at our Plymouth County Business office on the waterfront in Plymouth. Click here for map.
These will be limited seating. A continental breakfast will be served at no charge. To reserve a seat, please call (508) 385-3811.
In preparation, we are asking readers to complete a brief survey on succession planning that can be found by clicking here. If we receive enough responses, we will prepare a report on the data gathered so our readers can benchmark with area businesses.
This seminar also will be a good opportunity to learn more about our Plymouth County Business magazine and ways your Cape business can connect directly with 9,000 companies across Plymouth County.
Real estate update
The numbers continue to be challenging – but two themes are worth noting. The sub-prime mortgage crisis is not having any significant impact on the Cape, according to Realtors and lenders. Secondly, the continual fall in the dollar’s value is stimulating interest in Cape property among foreign buyers – especially at the highest price levels.
Here are the latest numbers from the Barnstable County Registry of Deeds reflecting July activity:
Sales volume down 1.5 percent compared with a year earlier; the median price of a single-family home 9.5 percent lower than July 2006; mortgage activity 17 percent lower.
Year to date: sales volume is down only 0.3 percent from 2006, while individual home prices are 8.4 percent lower and mortgage volume 10.8 percent less than the same period a year ago.
A home last month that sold for $345,000 would have garnered a $365,000 price last July.
Technical difficulties
We apologize to any readers who experienced technical difficulties with our last newsletter. After much research by our Web team at Genevate, the problem was pinpointed to be a bug in versions of Internet Explorer 6. We believe this issue has now been corrected, and regret any inconvenience it may have caused.
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