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Casino panel to Boston: negotiate with Wynn

Written By Unknown on Sabtu, 26 Juli 2014 | 00.32

The state Gaming Commission — claiming the city is "abandoning" its casino-related interests in Charlestown — said it would have its staff continue to urge Boston officials to negotiate with Wynn Resorts over how much money the city should get to mitigate the impact of the proposed Everett casino, but if that fails, the commission may appoint someone to serve as the city's advocate.

That person would neither be a city employee nor a consultant to the commission, but rather an independent person who would weigh Wynn's best-and-final offer to the city, including the amount it proposed to mitigate traffic, said Commissioner James McHugh.

"The city's basically, without telling us why, said they're ... just abandoning that section of the city. We have some obligation to protect it. At the same time, we've got to maintain our neutrality," McHugh said, noting other cities have successfully negotiated surrounding community agreements with Wynn, and because the company is competing for the sole Boston-area casino license with Mohegan Sun.

The commission also said it would have its staff meet with Boston residents — primarily people in Charlestown. A spokesman for Walsh had no immediate comment last night.

The offer Wynn made — but Mayor Martin J. Walsh rejected — called for 
$6 million in one-time payments and 
$2.6 million annually, amounts that pale in comparison to the $30 million upfront and minimum annual $18 million pledged to Boston by Mohegan Sun for a casino on the Revere side of Suffolk Downs.

McHugh declined to comment on whether he thinks Wynn's offer is fair.

The mayor ceded all dealings with Wynn to the commission earlier this month after announcing his pact with Mohegan Sun. The mayor claimed Wynn withheld details about its Everett plan that Boston needed to craft an arbitration offer.

The commission has the power to strip Boston of its status as a surrounding community, but can still require Wynn to pay Boston an annual impact fee and impose any requirements it deems appropriate. The commission will close its statutorily required hearings in Everett and Revere in mid-August. Its license deliberations will begin Sept. 8, McHugh said, and the commission hopes to make a decision on Sept. 12.


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The Ticker

State agency to get most of gambling addiction $$

Three-quarters the annual spending of a public health fund aimed at gambling addiction will go to initiatives backed by the Massachusetts Department of Public Health under an agreement signed yesterday by state gambling regulators.

The agreement, which state officials called unique, requires the state Gaming Commission and the state's Executive Office of Health and Human Services to work jointly to ensure the fund created by the state's 2011 casino law is properly used.

Health and Human Services Secretary John Polanowicz said the partnership will ultimately benefit state residents as it will support research into intervention, treatment and prevention of the "unintended consequences" of casino gambling.

Whole Foods recalling tarts, squares

Whole Foods Market is recalling tarts and squares made with stone fruit that could be contaminated with Listeria monocytogenes.

The Rhode Island Department of Health yesterday said the items were made in Whole Foods stores in Massachusetts, Rhode Island and Connecticut.

They include tarts and squares made with peaches, nectarines, and plums from Wawona Packing Co. Wawona Packing recalled the fruit this week.

The items were sold between June 1 and July 21.

The grocery chain says it has pulled all the recalled fruit from its stores. It was labeled with a "Sweet 2 Eat" sticker. Customers who purchased the items are advised to throw it away, and bring in their receipt to the store for a refund.

Dunkin' cuts 2014 sales outlook

Dunkin' Brands Group Inc. cut its 2014 outlook yesterday as its U.S. doughnut shops battled fast-food rivals such as McDonald's Corp. and high milk prices softened profits from its international Baskin-Robbins ice cream business.

The company said it expected sales growth of 5 percent to 7 percent, down from previous expectations of 6 percent to 8 percent. Its stock fell 4.42 percent today to close at $42.01 per share.

Today

  •  Commerce Department releases durable goods for June.
  •  The Colonial Inn has announced the appointment of Kathy Martin, left, as general manager. Martin will oversee the daily hotel operations of the Colonial Inn and manage all phases of hotel management. Martin served as Colonial Inn's director of sales and catering from 1998-2000, before taking similar positions with the Greater Merrimack Valley Convention Visitors Bureau, Holiday Inn, Staybridge Suites, Hilton Garden Inn Burlington and Wyndham Boston Andover over the past 14 years.

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State threatens surveillance over liter beers

Liters of lager are an essential piece of Bavarian beer culture. They're apparently verboten in Bay State beer halls.

The Alcoholic Beverages Control Commission threatened to put Firebrand Saints in Cambridge under surveillance yesterday to ensure it did not go ahead with plans to host a liter-mug patio party last night with Bay State beer maker Notch Brewing Co.

The board argued the promotional mugs used to serve the low-alcohol "session beers" that are Notch's speciality ran afoul of happy-hour regulations, after reading about the party plans in yesterday's Herald.

"We got a call from the ABCC and were told that we'd be under surveillance and that if we served the (liter mugs) we'd get in trouble," said Firebrand Saints owner Gary Strack. ABCC spokesman John Carlisle could not be reached for comment.

A liter is 33.8 ounces, slightly more than two pints. Notch Brewing's session beers are brewed with low- alcohol content, generally about 4 percent, to satisfy drinkers looking for full flavor without the heavy buzz.

"You can get a pint of beer with 10 percent alcohol in this state no problem," said Notch Brewing Co. owner Chris Lohring. "But you can't get a two-pint serving of beer with 4 percent alcohol. It makes no sense."

"We were trying to create the same sort of spirit of a German beer garden," said Strack. "It's a great event with cultural relevance."

As of press time, the party was in full swing, with the following workaround in place: patrons had empty liter mugs, bought full pitchers of sessions beer, and poured them into the mugs, Lohring confirmed.


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A fixer-upper for $3.4 million?

This 8,208-square-foot Chestnut Hill mansion is unlike most high-end properties you'll see in this toney neighborhood.

First of all, the 1904-built home at 152 Suffolk Road was designed in Spanish Mission style, rare for this area, complete with a stucco exterior, red terra cotta tile roof and a pagoda-style entry.

The original 26-acre estate was built for prominent shoe tycoon Clement S. Houghton, and included a large carriage house and a 10-acre garden. The city of Newton acquired the garden in 1968 and turned it into a city park. Other lots were sold off. The main house, which is listed on the National Register of Historic Places, sits on just 1.61 acres now.

For the past 43 years, the main house has been owned by architect Branko Brankovic and his artist wife Angela Vinkler-Petrovic, founders of the well-known Baak jewelry and fine arts gallery in Harvard Square.

"I envision the buyer as someone who's socially prominent in the community and loves to entertain," said Brankovic, who once worked for the storied Architects Collaborative in Cambridge.

The interior of the home has great architectural detail. The main entry hall is lined with oak paneling, has elegant window seat cushions and arts-and-craft style brick floors. There's a sweeping central staircase with an original carved metal chandelier hanging over it. The large dining and living rooms have magnificent fireplaces with carved woodwork and beamed ceilings. There's a study lined with bookcases, a sunroom off the dining room and an outdoor terrace off the living room.

On the market for $3.4 million, the house undoubtedly has great bones, but as a disclaimer in the listing sheet states: "The home is in need of major renovations."

So is this the Boston area's priciest fixer-upper?

"It does need a lot of work," admitted co-listing broker Marjorie Gold of William Raveis Real Estate. "But what we're offering here is a piece of history in a great location."

Not that there haven't been updates. Over the years, Brankovic added a first-floor kitchen (the original is in the basement with its vintage stove), updated the bathrooms and even replaced the tar paper and flashing under the terra cotta roof tiles.

He created and redid the master bedroom suite, but the purple bathroom fixtures here and elsewhere on the second floor are outdated.

There's a great original linen closet with walls of glass cabinets, beautiful hardwood floors and original doors and moldings on the second floor, which has six bedrooms.

There's a warren of rooms on the third floor, which once housed the Houghtons' 11 servants. And there's lots more storage in the huge basement.

Potential buyers should bring their own architects. Giving this grand house the makeover it needs will be a major undertaking.


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Rupert Murdoch's BSkyB to merge with German and Italian sister companies to create pay TV giant

Rupert Murdoch-controlled U.K. pay TV operator BSkyB announced deals on Friday to take control of its German and Italian sister companies to create a pan-European pay TV giant. The total value of the deals will be 5.35 billion ($9.09 billion).

Murdoch's 21st Century Fox owns a 39% stake in BSkyB, 100% of Sky Italia and 57% of Sky Deutschland. The proposed deals, which are subject to shareholder approval, will see BSkyB acquire Fox's stakes in Sky Italia and Sky Deutschland. It also will bid for the remaining Sky Deutschland shares.

The acquisition of Sky Italia will cost 2.45 billion ($4.16 billion) with approximately 2.07 billion ($3.51 billion) to be paid in cash, and the balance to be secured through the transfer of BSkyB's 21% stake in National Geographic Channel Intl. to Fox at a value of 382 million ($649 million).

The acquisition of Fox's shareholding in Sky Deutschland will cost 2.9 billion ($4.92 billion) in cash, valuing Sky Deutschland at EUR6.75 ($9.09) a share. BSkyB will offer Sky Deutschland minority shareholders that price for the remaining shares.

The total worth of the deals to buy Sky Italia and 57% of Sky Deutschland would be 5.35 billion ($9.09 billion). Depending on how many Sky Deutschland minority shareholders accept the offer for their shares, the total cash consideration overall may be up to approximately 7 billion ($11.9 billion).

The coin will add to Fox's war-chest, which it could dip into should it decide to make an improved bid for Time Warner.

The merged entity, which some observers are calling Sky Europe, will have 20 million pay TV subscribers in the U.K., Ireland, Italy, Germany and Austria. Potentially, Sky Europe will be able to reach up to 97 million households. The German market offers large opportunities for growth. Only 20% of German households subscribe to premium pay TV channels, compared with 50% in the U.K., according to research group IDATE. Italy is a tougher market -- Sky Italia has lost more than 200,000 customers since 2011.

Goldman Sachs analysts estimate that combining the three companies could generate synergies of 100 million ($170 million) by 2017, the Financial Times reported Thursday.

Jeremy Darroch, BSkyB's chief executive, said: "This transaction will create a world-class, multinational pay TV business with enhanced headroom for growth and immediate benefits of scale. The three Sky businesses are leaders in their home markets and will be even stronger together. By creating the new Sky, we will be able to use our collective strengths and expertise to serve customers better, grow faster and enhance returns."

Financial analysts have speculated in recent days that Murdoch's long-term goal may be to acquire the remaining shares in BSkyB and then sell Sky Europe to a telco.

BSkyB also announced results for the 12 months ended June 30. Adjusted revenue was up 7% to 7.6 billion ($12.9 billion). Profit after tax was 937 million ($1.59 million), compared with 969 million ($1.65 billion) in 2013.

(C) 2014 Variety Media, LLC, a subsidiary of Penske Business Media; Distributed by Tribune Content Agency, LLC


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Report: Google seals deal to buy Twitch for $1 billion

Google has finally clinched a deal to buy videogame-broadcasting company Twitch for $1 billion, VentureBeat reported, citing anonymous sources.

Variety first reported in May that Google had reached a preliminary pact to acquire Twitch for $1 billion in cash, in order to augment its YouTube video site.

Reps for Twitch and Google declined to comment.

Twitch was created by the founders of Justin.tv, a website designed for users to "lifecast" themselves with online video. After a growing number of videogamers began using Justin.tv to broadcast their gameplay, the company launched the dedicated Twitch.tv service in mid-2011.

Privately held Twitch has raised about $35 million in funding -- meaning the $1 billion deal is a significant windfall for its backers. Investors include Bessemer Venture Partners, Alsop Louie Partners, WestSummit Capital, Take-Two Interactive Software, Thrive Capital and Draper Associates. Twitch Interactive, which includes Justin.tv, has about 130 employees.

San Francisco-based Twitch says it has more than 45 million monthly users, who watch an average of 106 minutes of video daily. Users can upload and watch free, live gameplay videos from Microsoft Xbox One and Sony PlayStation 4 consoles. Twitch generates revenue through ads and as well as subscriptions, with about 300,000 paying members.

With Twitch, YouTube could extend live-streaming to other categories, including with multichannel network partners like Disney's Maker Studios and Machinima, which focuses heavily on the male-oriented videogame segment. YouTube's own efforts to intro live broadcasting have had limited success to date.

Google and YouTube also want Twitch because it has established a proven model for subscription-based video. A year ago, YouTube launched a paid-channel initiative with 30 partners, including The Jim Henson Co., NatGeo Kids, Nelvana Enterprises and DHX Media. But to date, the pay channels have seen very little traction. Meanwhile, the Internet-video leader - which generates a large amount of traffic from music videos - expects to launch a paid music service in the next few months.

One potential issue with Google's Twitch deal is that regulators may challenge the transaction if they believe the combination of the No. 1 online-video platform (YouTube) and the No. 1 live-streaming Internet service (Twitch) raises anticompetitive issues. Google's lawyers have been preparing for such an objection, sources said.

In March 2014, Twitch represented 1.35% of all downstream bandwidth on North American fixed-access broadband networks during primetime hours, nearly triple from last fall, according to bandwidth-equipment company Sandvine. YouTube's share of downstream bandwidth was 13.2%, while Netflix remained the biggest consumer of traffic with 34.2%.

(C) 2014 Variety Media, LLC, a subsidiary of Penske Business Media; Distributed by Tribune Content Agency, LLC


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Nigeria nabs accused $6 million Facebook fraudster

ABUJA, Nigeria — Nigerian security forces say they have arrested a suspected internet fraudster accused of stealing nearly $6 million from people who thought were paying fees to apply for government jobs.

Emmanuel Okeh, a spokesman for the Nigeria Security and Civil Defense Corps said Friday that the suspect, Michael Ogun, 44, is accused of using Facebook and other websites that appear to represent government agencies, including customs, immigration and security. The pages urged applicants to pay small fees to apply online for jobs.

Okeh said the scam is one of many in Nigeria that are specifically designed to extract small sums from Nigeria's unemployed. Conservative estimates put Nigeria's unemployment rate at about 24 percent in a nation of more than 160 million people.

Nigerian security forces say they never recruit online.


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FCC signs off on Sinclair's purchase of Allbritton stations

The FCC gave the greenlight to Sinclair Television Group's $985 million purchase of Allbritton Communications stations, after Sinclair agreed last month to divest one of the seven Allbritton outlets in order to get the deal through federal scrutiny.

The FCC's Media Bureau announced on Thursday that it had approved the transaction, with Sinclair planning to sell the Harrisburg, Pa., Allbritton station to Media General to comply with media ownership rules. Sinclair also will give up licenses for Allbritton stations in Birmingham, Ala., and Charleston, S.C., and put that programming on the digital signals of outlets it already owns in those markets.

After Sinclair announced that it was buying the Allbritton stations last year, the FCC has placed new scrutiny on so-called "sidecar" deals as well as sharing arrangements. Critics say such arrangements have allowed companies gain control or influence over other stations in markets where they already own an outlet. Sinclair has abandoned such arrangements as part of the transaction.

The Department of Justice announced its approval of the deal earlier this month, on the condition that Sinclair shed the Harrisburg station.

"The order released today approving the transaction between Sinclair and Allbritton exemplifies the careful scrutiny the Bureau will provide to broadcast transactions that propose new combinations of sharing arrangements and financial entanglements between a dominant licensee and a so-called sidecar entity," William Lake, chief of the FCC's Media Bureau, said in a statement. "The Media Bureau has demonstrated clearly that it will not allow such combined arrangements to undermine the local TV ownership rule, which is in place to ensure competition and diverse voices on the airwaves."

In addition to stations in Tulsa, Okla., Lynchburg, Va., and Little Rock, Ark., Sinclair will gain ownership of Allbritton's flagship station in Arlington, Va., WJLA-TV, the ABC affiliate in the Washington market. The deal also includes Newschannel 8, a 24-hour local cable news network in D.C.

Allbritton is selling its stations to focus on its digital properties, including Politico.

"Very mixed emotions: FCC approved sale of our TV stations to Sinclair. Thanks to all at ACC for 40 wonderful years. I will miss you deeply," Allbritton CEO Robert Allbritton wrote on Twitter.

(C) 2014 Variety Media, LLC, a subsidiary of Penske Business Media; Distributed by Tribune Content Agency, LLC


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Family feud sparks revolt at grocery store chain

WEST BRIDGEWATER, Mass. — It's been called a David vs. Goliath story, a "Tale of Two Arthurs" and even the "ultimate Greek tragedy," but the characters in this drama are not Biblical or literary figures. They're grocery store owners.

A workers' revolt at the Market Basket supermarket chain has led to empty store shelves, angry customers and support for a boycott from more than 100 state legislators and mayors.

Industry analysts say worker revolts at non-union companies are rare, but what's happening at Market Basket is particularly unusual because the workers are not asking for higher pay or better benefits. They are demanding the reinstatement of beloved former CEO Arthur T. Demoulas, who workers credit with keeping prices low, treating employees well and guiding the company's success.

The New England grocery store chain is embroiled in a family feud featuring two cousins who have been at odds for decades.

While earlier squabbles between Arthur T. Demoulas and Arthur S. Demoulas were fought in courtrooms, this dispute has spilled into Market Basket stores.

For the past week, warehouse workers have refused to make deliveries to Market Basket's stores, leaving fruit, vegetable, seafood and meat shelves empty. Workers have held huge protest rallies and organized boycott petitions through social media, attracting thousands of supporters.

Customers are defecting to other grocery stores. In some cases, customers have taped receipts from competitors to Market Basket windows.

"We are going to go somewhere else from now on," said Soraya DeBarros, as she walked through a depleted produce department at the Market Basket in West Bridgewater this week. "I'm sad about it because of course I want to keep the low prices, but I want to support the workers."

Despite threats by new management to fire any workers who fail to perform their duties, some 300 warehouse workers and 68 drivers have refused to make deliveries. So far, eight supervisors have been fired. Massachusetts Attorney General Martha Coakley, who is running for governor, and New Hampshire Gov. Maggie Hassan have publicly supported the employees.

"If you had told me that workers at a grocery store would walk out to save the job of a CEO, I would say that's incredible. There is usually such a gulf between the worker and the CEO," said Gary Chaison, a professor of industrial relations at Clark University in Worcester.

Market Basket stores have long been a fixture in Massachusetts. The late Arthur Demoulas — grandfather of Arthur S. and Arthur T. and a Greek immigrant — opened the first store in Lowell nearly a century ago. Gradually, Market Basket became a regional powerhouse, with 25,000 employees and 71 stores in Massachusetts, New Hampshire and Maine.

The feud dates back to the 1970s, but the most recent round of infighting began last year when Arthur S. Demoulas gained control of the board of directors. Last month, the board fired Arthur T., sparking the current uprising.

Workers are fiercely loyal to Arthur T.

"You know the movie, 'It's a Wonderful Life.' He's George Bailey," said Tom Trainor, a district supervisor who worked for the company for 41 years before being fired last weekend over the protests. "He's just a tremendous human being that puts people above profits. He can walk through a store, and if he's met you once, he knows your name, he knows your wife, your husband, your kids, where they are going to school."

Employees said they believe the fight between the family members loyal to Arthur T. and Arthur S. is largely over money and the direction of the company. They say Arthur S. and his supporters have pressed for a greater return to shareholders.

Arthur T. and his supporters have focused on keeping prices low.

Many employees are distrustful of Arthur S. and two co-chief executives who were brought in from outside the company: Felicia Thornton, a former executive of the grocery chain Albertsons, and Jim Gooch, former president and chief executive at RadioShack Corp.

"I'm worried about my job," said Valerie Burke, a worker in the West Bridgewater store. "It's a great company to work for now, but we are worried it won't stay that way," she said as she picketed outside the store Tuesday.

Arthur S. has not spoken publicly, while Gooch and Thornton have communicated only through prepared statements. They assured workers in a statement that they are not planning drastic changes in the way the company is operated, and urged employees to return to work.

Arthur T. on Wednesday offered to buy the company for an undisclosed amount.

Gooch and Thornton declined to comment.

Up to 10,000 employees, customers and supporters attended another protest rally at a Market Basket store in Tewksbury on Friday, while the company's board of directors met in Boston. Traffic backed up on Interstate 495 on Friday morning as thousands of people made their way to the rally. It was not immediately clear if board members planned to make a statement after the closed-door meeting.

Steve Paulenka, who started in 1974 as a bag boy and rose to facilities and operations manager before being fired last weekend, said he sees no end to protests unless Arthur T. is reinstated.

"A big part of me doesn't like what's going on — it's like breaking your favorite toy on purpose," he said. "But we'll get through this."


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Experts ask judge to block hospital takeover

BOSTON — A petition signed by 21 antitrust experts and health economists asks a Massachusetts judge to block efforts by the state's biggest health care system to absorb three more hospitals.

The Partners HealthCare System's planned takeovers of South Shore Hospital and two Hallmark Health System hospitals have been approved by Attorney General Martha Coakley under certain conditions.

The petition signed by antitrust specialists, many from major U.S. universities, says the deal is unlikely to contain rising medical costs as intended, according to The Boston Globe (http://bit.ly/1t3yDFc ).

"We do not believe that the proposed restrictions on Partners' conduct included in the (settlement) will offset the consumer harm that is likely to arise from the acquisitions of South Shore and Hallmark hospitals and their physician affiliates," they wrote to Judge Janet Sanders, who is weighing whether to approve the agreement.

She has extended a public comment period through Sept. 15 and scheduled a Sept. 29 hearing on the matter.

None of the petition signers has a financial stake in the deal.

Partners operates Brigham and Women's and Massachusetts General hospitals, as well as several community hospitals, health centers, and a health plan.

Under Coakley's deal, Partners would be allowed to complete the acquisitions, but in exchange must put a seven-year freeze on additional takeovers; limit price increases across its network to the rate of general inflation for 6 1/2 years; and calls for an outside monitor to gauge Partners' compliance for 10 years.

Coakley defended the deal.

"We are confident that this (settlement) does more to control health costs for consumers and alter Partners' business practices than any lawsuit would have potentially achieved," spokesman Brad Puffer said.

A coalition of competitors and a state health panel has opposed the move.

Partners vice president Rich Copp did not respond directly to the experts' comments but said Partners' planned mergers will improve patient care.

___

Information from: The Boston Globe, http://www.bostonglobe.com


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