Mayor’s Report on Brokers and Medallion Crisis
by Carolyn Protz and Sergio Cabrera
As
medallion owners, what can we glean from this report that was prompted
by Brian Rosenthal’s year long investigation on the role of lending in
the medallion debacle?
In the opening
statement “As a result of increased competition for passengers and a
decline in medallion values on the secondary market, many taxi drivers
who own their own medallion currently face significant financial
challenges” the Mayor has caught the essence of the problem. Why is the
obvious solution not as clear to him? Taking the app cars off the road
is essential to restoring income to the medallion franchise and
stopping the foreclosure crisis. There were no foreclosures or
bankruptcies for 80 years. They are the result of the reduction in
income because of the excessive number of cars. Unfortunately, the cap
that was approved last summer has had no effect.
The
City, after interviewing a handful of medallion owner drivers, proposes
expanding the bureaucracy, paperwork and mental health counseling, when
by the present time, the damage has already been done. At this
juncture, when an individual can purchase a medallion for $120,000 cash,
done deal, we would worry more about future actions by regulators to
destroy the value of the medallions rather than banks and brokers.
Why
has there been no investigation of those individuals who went from the
role of regulator to working for the companies they formerly regulated,
after having changed countless rules to suit the app companies? Why
have the policy changes also known as “the roadmap”, from the January
2016 so called congestion study never been revealed? Why is the 62%
increase in greenhouse gas emissions produced by the additional fhv’s
admitted to in the TLC/DOT study released last week not even being
discussed by a City Council that just passed a resolution declaring a
“Climate Change Emergency” in our city or an administration that is
seeking to divest NYC from all fossil fuel investments and has just
proclaimed its plans for the future green new deal?
In
the last several auctions of medallions, it’s been alleged that many of
the medallions purchased by hedge funds remain “on the shelf”. FYI,
there are another 76 medallions being auctioned off, 16 on 7/11 and 60
on 7/17 by Maltz Auctions.
It shouldn’t
have come to this. The medallion debt problem could be solved at
little or no cost to taxpayers with the reduction in the number if fhv’s
and the restoration of confidence in the medallion franchise.
Why isn’t this being done?
Sergio Cabrera
Carolyn Protz
Members, NYC Taxi Medallion Owner Driver Association