Cab owners: Number of medallions sufficient

LYNN – Fifty taxi medallions are sufficient to meet local needs, say cab company owners, but residents who attended a City Council meeting Tuesday said councilors need “to ensure that supply meets community demand.”Three local companies hold 50 taxi medallions issued by the council and a fourth – Union Taxi – runs 10 cabs under a lease arrangement with Tom?s Taxi and Garcia Taxi.?There?s only so many people in Lynn taking taxis,” local attorney Samuel Vitali told councilors.Union owner Danilo Diroche is negotiating to buy medallions from Tom?s and Garcia, but he told councilors he is not in favor of increasing the number of medallions.Although they were not part of Tuesday night?s council government administration committee discussion on the local taxi industry, three dozen members of the community organization Neighbor to Neighbor said they want councilors to hear their concerns at a future meeting.?Transportation needs are so great in the city: We need more medallions,” said Lynn resident Julissa Rojas.Neighbor to Neighbor, in a statement, said the number of local medallions has stayed roughly at 50 for 24 years even though the city?s population has grown.But Vitali, who represents Tom?s Taxi, said local transportation companies providing rides to disabled and older residents limits the taxi market and All City Taxi owner Mike Cole said the cab business shifts locally from a high cold weather demand to lower summer demand.Although the council issues medallions, it is not involved – as Council President Daniel Cahill noted – in controlling medallion sales. Tom?s owner Robert Colucci said the company bought 22 medallions from a previous medallion holder 30 years ago for $140,000.By contrast, Cole paid $80,000 in 2011 for medallions allowing him to operate five vehicles. About 150 drivers work for the four local cab companies. Diroche said there is enough demand for taxis in Lynn for him to purchase medallions from Tom?s and Garcia.?We?re ready to buy,” he said.Union opened for business in 2011, prompting a court fight over whether Tom?s and Garcia could “pocket” medallions for cabs they?ve owned that were not in use. A court order forced each company to turn five medallions over to Union Taxi.An appeals court ruling upheld the practice of pocketing medallions, and Union negotiated a lease arrangement for medallions with the two firms. Its drivers, according to city records, are paying a $225 weekly fee under the lease arrangement.?We were gracious enough to lease with them,” said Colucci.Garcia and Colucci said they are in negotiations to sell medallions to Union Taxi, and Councilor at large Hong Net said he will let the negotiations play out before he holds additional meetings on the need to increase the number of medallions above 50.If the number is increased, the city – under state law – according to Assistant Solicitor James Lamanna, can only auction off or hold a lottery to distribute medallions.?The council can?t pick winners and losers,” added Cahill.