Award of Eight Car Rental Medallions Punted By Select Board

The Select Board continued a discussion on how to award eight rental car medallions on Monday after acting airport manager Preston Harimon informed members of town administration that the airport “does not have open space” for another car rental agency.

Select Board members said that access to a physical storefront was a major factor in their decision, and multiple applicants had suggested they would like to use space at the airport.

“Having a location is really important,” Select Board member Matt Fee said. “We should be requiring that they have some place to do it.”

During the meeting, town of Nantucket operations administrator Erika Mooney received an email from acting airport manager Preston Harimon stating that a request for proposals for the use of airport space connected to car rentals would not be issued until 2031.

The Select Board then opted to continue the discussion to obtain more clarity from the airport and give the applicants time to update their plans and potentially work together.

Of the four applicants, only one, Geoff Smith’s G. J. Smith, Inc., already has physical space for rental cars secured. Smith told the Select Board that he owns a lot near the airport and would be willing to collaborate with other applicants. He said that part of his focus would be on renting vehicles for commercial use.

Off-island car rental giant Enterprise Rent-A-Car and Pat Tully and Daniel Walsh’s Compass Pointe Rentals both initially proposed using space at the airport, but were quick to pivot after Mooney read Harimon’s email.

Enterprise emphasized its size, existing relationships with other companies, and intent to offer cars to island residents temporarily without their vehicles. Compass Pointe, similar to Smith, discussed offering rental vehicles for commercial use.

Last July, the Select Board voted 3-2 to award the medallions to agencies that are not already operating on Nantucket, excluding potential operators who use the online car-sharing platform Turo.

The fourth applicant for the medallions, Nicholas Amendalore’s Grey Lady Jeeps, has operated on Nantucket using Turo, the San Francisco-based company often referred to as Airbnb for cars. Amendalore asked to formalize and continue his existing Jeep rental business, and his use of Turo may not immediately disqualify him.

“I’m encouraged that somebody who has a Turo business is trying to legitimize it, and I don’t want that to get overlooked because I feel like that’s somebody that’s trying to comply,” Select Board member Jill Vieth said. “They’re the first person that I’m aware of that’s reaching out to do that.”

Before Mooney read Harimon’s email, Fee suggested he was leaning toward awarding the medallions to Enterprise and potentially Smith.

“I believe Enterprise should get at least four, maybe more, and I think that…Geoff Smith has the infrastructure,” Fee said. “If we’re not comfortable doing four and four, my suggestion would be to do all eight to Enterprise.”

Other Select Board members did not give a clear indication of which applicants they were favoring.

The Select Board opted to avoid dealing with Turo more broadly as state regulations are currently pending at the legislature, but Fee did argue that Turo is currently banned by Nantucket’s existing laws.

“I believe that our laws are clear that peer-to-peer should have medallions,” Fee said. “I believe that they are not legal now, and I think a medallion is necessary.”

Chapter 58 of Nantucket's town code governs rental cars on the island through a medallion system and caps the number of rentals at 700 for the entire island. The regulations require companies to obtain a medallion from the town for each rental car they operate and establish a fine of $300 per day for any violations. Only six licensed car rental agencies on Nantucket control the 700 medallions, preventing others from entering the market.

The town has cracked down on rental car companies operating without a permit, but has not enforced its regulations on Turo operators, as the legal landscape remains unclear. A lawsuit over the system was dismissed last March.