STARTING A NEW COMPANY AUTOALPHA FINDS FIRST CLIENT
PRIVATIZATION LEADS TO SPECIAL INTERESTS WAR
REGION’S BUSINESS
PHILADELPHIA EDITION
A JOURNAL OF BUSINESS AND POLITICS
SETTING MARKET STREET
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CITY SEEKS FEEDBACK ON ANNIVERSARY OF ZONING CHANGES CHARTER SCHOOLS JOIN PUBLIC REQUEST FOR MORE FUNDING CHAMBERS: U&O TAX HIKE SENDS WRONG SIGNAL
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30 MAY 2013
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CONTENTS
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Philadelphia Seeking Feedback On Zoning Change Anniversary
28
Chambers: U&O Tax Hike Sends Wrong Signal
Magnificent Brick Estate
YEAR OF THE INNOVATOR
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REGION’S BUSINESS A JOURNAL OF BUSINESS & POLITICS
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DEALBOOK
HEALTH CARE
US Renal Care Acquires Local Dialysis Center U.S. Renal Care, Inc. announced it has formed a new outpatient joint-venture with Pottstown Memorial Medical Center. USRC now has a controlling interest in the existing PMMC clinic. Dr. Sergio Vaisman will serve as medical director. “This is an exciting opportunity for the patients of Pottstown and the surrounding communities,” said Dr. Vaisman. “U.S. Renal Care prioritizes the highestquality care, from state-of-the-art technology to calming clinical environments so patients can feel relaxed during treatment. “I am privileged to be part of a team that can bring patients suffering from chronic kidney disease some peace of mind.”
Campbell Soup Acquiring Kids Nutrition Company Venture capital firm Catamount Ventures announced it has entered into an agreement to sell Plum Organics, a leading premium, organic kids nutrition company, to Campbell Soup Company. Terms of the transaction were not disclosed. In 2012, Plum Organics was the second fastest-growing food business in the United States.
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PHARMACEUTICAL
AstraZeneca Acquiring Omthera Pharmaceuticals AstraZeneca announced it has entered into a definitive agreement to acquire Omthera Pharmaceuticals, a pharmaceutical company based in Princeton, NJ. Under the terms of the agreement, AstraZeneca will acquire Omthera for $12.70 per share, or approximately $323 million. In addition to the cash payment, each Omthera shareholder will receive up to about $4.70 per share, equating to about $120 million in total, if specified milestones related to Epanova are achieved. TECHNOLOGY
Mindgrub Opens Local Office Mindgrub Technologies is opening a marketing office in Philadelphia, Boston and Washington, D.C., the Baltimore Business Journal reported. The mobile and web developer is growing a client network along the East Coast, CEO Todd Marks said, according to the report. Philadelphia’s office will open at 1800 JFK Boulevard, according to the Business Journal.
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30 MAY 2013
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WEEKLY BRIEFING
HIGHER EDUCATION
La Salle Leader Stepping Down La Salle University President Michael McGinniss recently announced that he would step down May 31 after 14 years as head of the school. “My years as President have been some of the most rewarding of my life. I am very proud of the initiatives completed during my tenure which have benefitted our students, faculty, alumni and the surrounding community,” he wrote in a letter posted on lasalle.edu. “With a strong foundation set for the future growth of the University, it is a good time to transition this work to a new President.” PENNSYLVANIA
Auditor’s Office Employees Face June Layoffs Nearly 70 employees in the Department of Auditor General will work their last day in the office June 14, with two weeks of paid leave to follow, the PatriotNews reported. Auditor General Eugene DePasquale said laying off 67 employees was “a decision we had to make.” “On one hand, we didn’t feel with the way the state budget was … there was a choice and we had to do something.” ATLANTIC CITY
AC’s Revel Exits Bankrupcty Atlantic City’s newest casino exited bankruptcy last week, eliminating $1.2 billion of its $1.5 billion debt, the Associated Press reported. Lenders have been given 82 percent ownership over the struggling casino, according to the report. The casino is now “singularly focused on attracting guests to the property through an expanding range of amenities and exciting new programming,” Jeffrey Hartmann, Revel’s interim CEO, said, according to the report.
Philadelphia Seeking Feedback On Zoning Change Anniversary BY SANDY SMITH
I
t’s been just about one year since the new city zoning code took effect, and already there have been some adjustments: City Council has passed modifications that nearly gutted key changes before scaling those modifications back. Another Council member known for regarding her district as her realm added extra notification hoops for developers to jump through. And one of the Registered Community Organizations (RCOs) that play a role in passing on nonconforming projects put itself out of its misery, to the shock and surprise of many. So the Philadelphia City Planning Commission will no doubt hear an earful as it begins the public comment phase of its promised one-year review of the code. The new code was supposed to deemphasize parking in new residential developments; has it? It was supposed to make life easier for developers by reducing the need for variances; do they find it easier to get projects off the ground now? (The answer may have something to do with those changed notification requirements.) It added new categories to recognize changing thinking about the city’s commercial and industrial districts; are builders headed in those new directions? (The district plans
being drawn up under the city’s 2010 master plan may also affect that thinking.) Does the code work as intended, or is more tinkering needed? Answers to these and many other questions — or maybe just more questions — will be offered by participants in the City Planning Commission’s public feedback sessions, which will be held during the month of June at commission headquarters in the One Parkway building at 1515 Arch Street. Perhaps prompted by the demise of the Old City Civic Association, the first session, on June 5, will be a special session devoted entirely to the subject of RCOs. All of the sessions will take place in
the Planning Commission meeting room on the 18th floor. The schedule for the feedback sessions is as follows: Wednesday, June 5, 5:30-6:30 p.m. (Special session devoted to RCOs) Friday, June 7, 8-9 a.m. Monday, June 10, 5:30-6:30 p.m. Thursday, June 13, 5:30-6:30 p.m. Wednesday, June 19, 12-1 p.m. Friday, June 21, 8-9 a.m. Refreshments will be provided at each session. The sessions are free and open to the public, but advance registration is required at publicfeedbacksessions.eventbrite.com. This article was originally published on the Philadelphia Real Estate Blog at philadelphiarealestate.com.
World Trade Center Honors Region’s Top Businesses
Michael Araten, president of K’NEX Brands, accepts his award. WORLD TRADE CENTER OF GREATER PHILADELPHIA
The World Trade Center of Greater Philadelphia honored area businesses for global achievements and contributions to economic growth during its annual awards dinner May 16 at Vie. The Global Business Leadership Award was awarded to Greg Bentley, CEO of Bentley Systems, Inc.. The Pennsylvania Member Company of the Year was K’NEX Brands, L.P. The New Jersey Member Company of the Year was Epicore BioNetworks, Inc.
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30 MAY 2013
REGIONSBUSINESS.COM
WEEKLY BRIEFING
TOURISM
Bill of Rights Heads to City
Philadelphia Charter Schools Join Public Request For Funding
Per a 100-year agreement between Pennsylvania and The New York Public Library, the National Constitution Center will display one of the 12 surviving copies of the Bill of Rights starting in fall of 2014. The Center will be the first institution in Pennsylvania to exhibit the document. “For the first time in decades, this historic document will be seen by ‘We the People,’ the people who were granted these inalienable rights and privileges that we are still guided by today,” said Governor Tom Corbett. TRANSPORTATION
Two New Routes Added to PHL JetBlue announced it has launched five daily flights between Boston and Philadelphia, beginning last week. US Airways has started offering seasonal, nonstop flights to Shannon Airport in Ireland. Flights will leave Philadelphia at 9:05 p.m. and arrive at 8:40 a.m. Flights will leave Shannon at 11:35 a.m. and arrive at 2:05 p.m. US Airways already provides flights to Dublin. BANKING
Beneficial Bank Ranked Highest In Satisfaction Beneficial Bank, the oldest and largest bank headquartered in Philadelphia, announced that J.D. Power & Associates has awarded the bank “Highest Customer Satisfaction with Retail Banking in the Mid-Atlantic Region.” Beneficial Bank ranked highest in the Mid-Atlantic region with a score of 839 (out of a possible 1,000) and performed particularly well in the product offerings, account information and channel activities factors.
Above: David Hardy, CEO of Boys’ Latin of Philadelphia Charter School, kicks off the Philadelphia Charters for Excellence event at Boys’ Latin last week. Below: Students rally for financial supprt. TERRENCE J. CASEY
Leaders from charter schools across the City of Philadelphia gathered last week at Boys’ Latin of Philadelphia Charter School to publicly join the School District of Philadelphia in requesting additional funding from the state. Joining the charter school leaders Thursday was Mayor Michael Nutter and school district Superintendent William R. Hite Jr. Superintendent Hite is seeking an additional $180 million in funding for the school district — $120 million from Harrisburg, $60 million from Philadelphia. Charter school leaders will send buses Mayor Nutter proposed raising taxes on of supporters to Harrisburg June 4 to alcohol and cigarettes to raise up to $135 request additional funding, said David million for the school district. Hardy, Boys’ Latin CEO.
IMPACT AWARDS
Corbett Honors PA Businesses The Governor’s ImPAct Awards recognized 50 companies from throughout the state in five categories: Jobs First, Community Impact, Small Business Impact, Entrepreneurial Impact and Export Impact. Southeast Community Impact Award - Philadelphia Union, Chester Entrepreneur Impact Award - Morphotek, Inc., Chester Export Impact Award - Schramm, Inc., West Chester Jobs First Award Monroe Energy, LLC, Trainer Small Business Impact Award - Custom Processing Services, Inc, Reading Lehigh Valley Community Impact Award - Air Products, Allentown Entrepreneur Impact Award - Originate Ventures LLC, Bethlehem Export Impact Award abec, Inc., Bethlehem Jobs First Award - Bosch Rexroth Corporation, Bethlehem Small Business Impact Award - Puritan Products, Inc., Bethlehem
DEVELOPMENT
Soko Lofts Complex Proposal Approved Soko Lofts, the 311-unit apartment complex planned for South Kensington, was approved last week, the Philadelphia Business Journal reported. The structure will replace a vacant scrap yard at 2nd and American streets, and Canus Corp. spent $8 million to clean the soil. South Kensington residents originally argued the design was too dense, Plan Philly reported.
South Central Community Impact Award - PC Parts, Inc., Harrisburg Entrepreneur Impact Award - WCI Partners, LP, Harrisburg Export Impact Award Zeigler Bros., Inc., Gardners Jobs First Award Dutchland, Inc., Gap Small Business Impact Award - Tex Visions, Carlisle
30 MAY 2013
REGIONSBUSINESS.COM
WEEKLY BRIEFING EXECUTIVE BOOKSHELF
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RESTAURANT ROUNDUP
Green Eggs Cafe Reopening Green Eggs Cafe reopened Wednesday after a sewage line break and rat infestation forced the restaurant to close its doors May 5. “We made the decision to close indefinitely until we fixed the pipe and were certain that the restaurant was able to meet the very strict cleanliness standards that we set for ourselves, the company said in a statement posted on foobooz.com. “Green Eggs Cafe hired a professional sanitation service to sanitize the Midtown Village location. The Midtown Village location looks absolutely spotless and it is thanks to them.”
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REGIONSBUSINESS.COM
POLITICS
Big Government Complexity To Blame In Latest Scandals
Charlie Gerow is CEO of Quantum Communications, a Harrisburg-based public relations and issue advocacy firm.
CONTRIBUTE Send comments, letters and essays to feedback@ regionsbusiness.com. Opinions expressed by guest writers do not necessarily reflect those of Region’s Business.
As the facts surrounding the Internal Revenue Service scandal continue to unfold, disturbing reminiscences of the Watergate era constantly emerge. Cover-ups. Fifth Amendment invocations. Changed stories. Altered timelines. It’s a pattern we’ve seen before. Facts are short-term casualties as this saga plays out. Inevitably the truth will be told. The American people demand and deserve no less. But this much we already know: There is an alarming lack of accountability and responsibility for those who were admittedly involved or on whose watch an egregious pattern of misuse of the awesome power of the IRS occurred. Corporate America would not long tolerate the incompetence or ignorance claimed by higher-ups at the IRS. There are consequences in the private sector for that kind of thing. If you head a division where something terribly wrong happens, you get fired. If you work for a Wall Street firm and refuse to answer questions asked by the SEC, you lose your job. And what are the consequences for the folks at the IRS who were in charge when this scandal was transpiring? An acting commissioner, on his way out in any event, was relieved. Meanwhile, Lois Lerner, the person in charge of the exempt organizations division who pleaded the Fifth before a congressional committee, is out shopping or reading the paper at the shore while still getting paid by taxpayers. Let’s face it: People don’t invoke the Fifth Amendment for no reason. The visual image of Ms. Lerner turning on her heel and walking away from the congressional hearing is especially unctuous given the fact that she first read a self-serving statement claiming she had done no wrong. It was a performance reminiscent of Richard Nixon’s protestations that he was not a crook. This scandal reveals, yet again, one of the hidden dangers of a gigantic federal bureaucracy. There are layers and layers in that bureaucracy that insulate and protect those at the top. Barack Obama’s top advisor has defended the president by saying that there is so much beneath the Oval Office that it’s impossible for him to know because “government is so complex.”
That complexity is where corruption is harbored. Complexity is at the heart of the IRS scandal. It’s not merely the IRS bureaucracy. It’s also the complexity of the Internal Revenue Code and IRS regulations. And it’s the IRS that will implement and oversee the most massive government program — Obamacare. The abuse of power in targeting those who opposed Obamacare for special scrutiny is spine chilling, considering the bureaucracy’s future thumb on the health care system. A popular slogan half a century ago was, “A government big enough to give you everything you want is big enough to take it all away.” The “complexity” of big government allows the abuse of power and infringement on individual rights. Unlike the private sector, accountability is often too slow in coming. Eventually, though, the truth will emerge. There will be accountability. People will lose their jobs. There could well be prosecutions. There may be a lot more. Another positive consequence is a renewed call to reduce the complexity of the IRS and the tax code. Eliminating the incredibly complex and burdensome Internal Revenue Code would take away a lot of the underpinning of the current scandal. A simple and fair tax system would dramatically invigorate the economy, get tax cheats out of the shadows and into tax-paying light, and eliminate headaches for ordinary taxpayers along with the need for special status. The flat tax promoted by Steve Forbes and others would allow us to prepare and file our federal income tax returns in as much time as it takes to eat dinner. The return could be done on a single sheet of paper. Some compellingly argue that a flat tax would inevitably spiral into a web of complexity, just as the current system has. They want to scrap the national income tax altogether, replacing it with a national sales tax — the Fair Tax. Either plan would change our tax system diametrically, making it fair, simple and reasonable. Getting rid of the enormous complexity — and the corruption inevitably rooted in it — is worthy of a spirited national debate and ensuing action.
PRIMARY ELECTION
PA Voter Turnout Less Than 17 Pct.
BY NICK FIELD AND KEEGAN GIBSON Tip O’Neill once famously said that “all politics is local,” but that mantra didn’t spur much participation in Pennsylvania in last week’s municipal primaries. The primary determined the candidates for offices such as school boards, sheriff, and local courts that can most directly affect the lives of the PA’s citizens, turnout across the state was unimpressive. The final number won’t be available until counties certify their results and send them to the department of state, but we’re talking turnout in the teens. According to the PA Department of State, 511,152 Democrats voted in yesterday’s race for Pa. Superior Court. According to Labels & Lists, there were 3,467,761 Democrats registered. That’s a participation percentage on the D side of 14.7 percent. About 384,370 of 2,747,093 registered Republicans voted, an iden tical turnout rate of 14 percent. Granted, it’s likely a few points higher because not every voter cast a ballot in the Superior contest (the GOP candidate was unopposed). But even if the historical average of 20 percent of voters left their ballots blank in the race, it means just 17 percent in that party voted across the state. That also does not include the roughly 880,000 voters registered in third parties or not affiliated. While a few areas reported brisk participation, even municipalities with contested races saw few voters according to anecdotal reports. The Philadelphia Inquirer reported Philadelphia voters “yawn at primary elections.” According to City Commissioners Co-Chairman Al Schmidt, “turnout was fairly low” through the state’s most populous city. This article was originally published on PoliticsPa.com.
30 MAY 2013
POLITICAL COMMENTARY
REGIONSBUSINESS.COM
11
Council Moves To Lower Net Profits Tax
Timothy Holwick is a freelance writer covering Philadelphia government. Find more coverage at citycouncilmatters.com. CONTRIBUTE Send comments, letters and essays to feedback@ regionsbusiness.com. Opinions expressed by guest writers do not necessarily reflect those of Region’s Business.
On May 23 Philadelphia City Council introduced two bills that would lower the Net Profits Tax and exempt “new businesses” as defined by the Philadelphia Code from having to pay the tax. The bills were introduced by Council President Darrell Clarke and Councilman Jim Kenney. Council President Clarke’s bill targets the Wage and Net Profits taxes, which apply both to individuals in Philadelphia as well as businesses. The Wage Tax is a very well-known tax as it applies to all wages earned by Philadelphia residents, or non-residents working in Philadelphia. The Net Profits Tax targets the net profits of businesses located in Philadelphia, and on non-resident businesses who conduct business activities in Philadelphia. Presently, both the Wage and Net Profits Taxes are set at 2.4280 percent for the wages of Philadelphia residents, or the net profits of resident Philadelphia businesses. For
non-resident wages or net profits, the tax rate is higher at 3.4985 percent. Under this bill, those rates would be lowered to 2.424 percent and 3.495 percent respectively beginning July 1, 2013. Another decrease to 2.42 percent and 3.491 percent would go into effect on July 1, 2014 and thereafter. The decrease may appear to be small, but it is certainly welcome on a tax that affects such a large amount of commerce in Philadelphia. The tax rates had not been changed since 2010. Councilman Kenney’s bill seeks to reduce the tax burden on new businesses in Philadelphia by decreasing their Net Profits Tax Rate to 0 percent while they still qualify as a “new business.” A “new business” under the Philadelphia Code is a business that is currently subject to the business privilege taxes, but was not subject to those taxes in any of the previous
five tax years. The statute is designed in a way to avoid businesses from deploying tactics to fraudulently remain a “new business.” Under the bill, a new business would not see the Net Profits Tax applied to its income until after it completed its first tax year. These bills are part of a continuing trend to encourage new businesses to set up shop in the Philadelphia borders, where they will hopefully help create revenue and jobs in other ways than direct taxes. The Wage and Net Profits Taxes have long been seen as a detriment to businesses operating in Philadelphia, and an explanation for why many offices are set up just outside the city limits in places like Bala Cynwyd or Conshohocken. With a reduced tax rate, and breaks for new businesses in the works, some members of City Council are hoping companies will look to Center City when setting up their new location.
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30 MAY 2013
POLITICAL COMMENTARY
REGIONSBUSINESS.COM
Liquor Privatization Becomes Special Interests War
Eric Boehm is bureau chief for PA Independent, a project of the Franklin Center for Government and Public Integrity
CONTRIBUTE Send comments, letters and essays to feedback@ regionsbusiness.com. Opinions expressed by guest writers do not necessarily reflect those of Region’s Business.
A major decision like whether to privatize the state liquor system is one that should be made on the merits of the plan. Unfortunately, that’s not how things work in Harrisburg. The liquor store privatization debate, which originally turned on questions like “Should government sell liquor if the private sector can do it better?” and “What role in the process should the government play to ensure the safety of PA residents when it comes to potentially dangerous substances like alcohol?” has become a playground for special interests. Most of those groups don’t care whether the state sells liquor; they care about gaining a competitive advantage, potentially at the expense of the residents of the state. Lawmakers essentially have three choices before them. The state-owned-and-operated liquor stores and wholesale distribution system can be privatized in whole, or the system can remain a government-run monopoly. The third option lies somewhere in the middle — perhaps with private liquor stores allowed to compete with government-run stores or beer distributors given the ability to sell wine. The first two choices are about ideology and policy. That third option is complicated.
It’s where the special interests all get to have their say and (maybe) their way. The option where a system of complicated and out-dated liquor rules gets even more confused and complex because lawmakers try to turn a single, massive government monopoly into a series of carved out niches where existing businesses can shelter from competition. Originally pitched as an ideological piece of legislation — “The government shouldn’t be in the business of selling alcohol,” is the oftrepeated refrain of privatization supports like House Majority Leader Mike Turzai and Gov. Tom Corbett — the bill made it out of the state House only after concessions were made to make beer distributors happy by giving them special advantages in the new liquor market. In the state Senate, the liquor bill has turned into a special-interest-a-palooza. How screwed up have things gotten? The lobbying firm working to convince Senate Republicans to oppose the bill is run by former top Senate Republican staffer Mike Long. His firm, Long Nyquist and Associates, received more than $1 million for doing campaign work for Republicans last year, according to a report from the Pittsburgh
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Tribune-Review. But now they have been hired by the United Food and Commercial Workers, the main union special interest opposing the liquor privatization bill. And so, the former Republican staffer who does millions of dollars of campaign work for Republicans is now meeting with those same Republicans to convince them to oppose something that other Republicans have proposed. Make sense? And then there is the Liquor Store Real Estate Owners Association, which represents landlords collecting monthly rental checks from the state liquor stores. They are opposed to privatization, even though the organization itself did not exist more than six months ago. Just another example of how the special interests have money coming out of the woodwork to oppose the liquor bill. Keep in mind, most polls show more than 50 percent of state residents surveyed support privatization. It’s still unknown if any changes to the state liquor system will be approved by lawmakers and the governor this year. But the final say will come from the special interests, not the people.
30 MAY 2013
REGIONSBUSINESS.COM
2013: YEAR OF THE INNOVATOR
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Thoughts On Starting A New Company Together with two co-founders, I started Shasta Ventures from scratch. Questions like “When did I decide to start a new company?” “What was that like?” and “Where did it begin?” are often asked. Here’s where it begins: A startup is a product of your imagination, fueled by a burning desire to serve your customers and create something new. When I teamed up with Tod Francis Rob Coneybeer is and Ravi Mohan in early 2004, Google co-founder of Shasta hadn’t gone public yet, Amazon was Ventures and earned his about to go out of business, and eBay was MBA from Wharton in 1996. at historic lows in the stock market. At More information is available the time, no one thought the consumer at shastaventures.com mattered in the technology world. Venture firms were openly abandoning their consumer practices. When we started Shasta, the three of us took a deeply contrarian view. We believed in the importance of the end-user and started with a core belief in the power of consumer-driven technology businesses. We wanted to serve entrepreneurs (our customers) who shared that same point of view. THERE WASN’T A Our early slide decks SINGLE MOMENT IN talked about the rising WHICH THE COMPANY influence of consumers in WAS STARTED — IT technology. Computing WAS A CONTINUUM OF technology was originally used in the ’50s by EVENTS, STARTING governments to compute WITH LEAVING MY ballistic missile trajecFORMER FIRM. IN FACT, tories, and then in the I FEEL LIKE IT HASN’T ’60s by large companies ENDED YET.’ to automate payroll. Next came minicomputers in the ’70s for medium-sized businesses, and the rise of client/ server technology in the ’80s led to the adoption of PCs by millions of small businesses. Then came the consumer, with the Internet in the ’90s, but hype outpaced reality, leading to the boom of 1999 and bust of 2000. Despite the aftermath of the Internet bubble, the underlying consumer demand for technology was clear to us. Consumers loved technology as it CONTRIBUTE became cheaper, more powerful, and far easier to use. Internet traffic continued to Send comments, letters grow rapidly. Based on our convictions, and essays to feedback@ and a strong investing track record, we regionsbusiness.com. went on the road in 2004 to raise a $210 Opinions expressed by million inaugural fund based on an guest writers do not end-user-oriented strategy for investing necessarily reflect those in technology startups. We had well over of Region’s Business.
120 “first meetings” with prospective investors. Thanks to our track record, most institutional investors wanted to meet with us, but because the three of us hadn’t worked together before, and consumer startups were completely out of favor, many prospective investors found it easy to quickly say “no.” The “no’s” rolled in faster than we expected. Would we ever be able to raise the fund? As you might imagine, we had quite a few sleepless nights in 2004. Raising a first-time venture capital fund requires a lot of investor due diligence, so each “yes” took longer than we hoped, after a litany of “maybes.” Eventually, we closed the fund after six months of active, full-time fundraising. In 2005 we started to invest, and since then we’ve built our firm by helping entrepreneurs build great end-user oriented companies — both consumer and enterprise focused — with early investments in companies like Mint.com, Lithium, Apptio, Nextdoor, Zuora, RelayRides and Nest Labs. We’ve also had our share of failures, with plenty of investments in companies that haven’t succeeded. I must say that I’ve found it interesting how accurate we were about the skyrocketing influence of the consumer in technology start-ups. I’ve also been surprised by how rapidly other firms pivoted back into the space. Even enterprise technology has been redefined by the widespread consumer trend of “bring-your-own-device to work” instead of company-issued phones and laptops. Being correct about this trend certainly helped us, but our strategy wasn’t contrarian for long. Reflecting on the last nine years, I’ve often thought about when exactly I decided to found a company. The answer is, I don’t really know. I think most entrepreneurs will tell you the same thing. There wasn’t a single moment in which the company was started — it was a continuum of events, starting with leaving my former firm. In fact, I still feel like it hasn’t ended yet. We still have so much to build and prove at Shasta and we work every day like our lives depend on it. Most entrepreneurs feel the same way about their companies, even after an IPO or other liquidity event. This column was originally published on the Wharton Entrepreneurship Blog at beacon.wharton.upenn. edu/entrepreneurship.
Steadily, but almost quietly, Philadelphia has become a hotspot for entrepreneurs. The combination of great ideas, available capital and a welcoming environment have set the stage to make 2013 a breakout year for innovation and new businesses. To Learn More ... For more information on sponsorship opportunities or to suggest story ideas, call our main office at 610-940-1656. The web: RegionsBusiness.com Facebook: Facebook.com/regionsbusiness Twitter: @RegionsBusiness Sponsored by
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2013: YEAR OF THE INNOVATOR DIARY OF A STARTUP
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Social Media Aggregator Founders Dream Big With Local Accelerator
ENTREPRENEURSHIP
2013 VSEC Finalists The winners of the 2013 Villanova Student Entrepreneurship Competition are: 1st Place ($5,000): Fun Run 2nd Place ($3,000): Maestro 3rd Place ($2,000: Du Riz Rice Huller 1000
Startup AutoAlpha Finds First Client
Fun Run is a competitive, socially driven mobile application that adds motivation and fun to exercise by generating “flags” users must reach during their run, with each flag increasing his or her score.
Congrats are in order for AutoAlpha as it snags its first client. David Wynne details how he came upon the new client, and what lies ahead for his company as it enters do-or-die time. In his own words: Startup life continues to give and take as we pump new opportunities into the pipeline and charge into each day. We came out swinging at the Wharton Business Plan Competition a few weeks ago and delivered big time. We didn’t win the competition, but we did win the attention of a new customer, as well a seed investor in financial software. That customer has agreed to become our first customer and has already begun making introductions for us that will deliver important advisers and prospective investors, as well as save significant operating costs throughout the next 18 months. In addition, we aim to meet the seed investor next week in New York to discuss the next steps. We also flew to California and met with a company to explore partnership opportunities and met one-on-one with several VCs at the National Venture Capital Association’s “Office Hours” event. At the company, our 30-minute meeting turned into nearly two hours and we are excited to be talking next steps for how to best work together. At “Office Hours,” we heard very consistent praise about the potential power of our product, tempered with caution about how to sell to the VC community. We also met several other great startups and shared contact information to begin helping each other — we’ve already connected one startup with a VC contact to help prepare for his pitch to the partners at that firm. School is out and the next month will be a make-or-break proposition for our summer and our company. With our first customer ready and waiting, an important partnership in the making and funding (hopefully) on the way, we are excited to stay focused and deliver the goods.
Trippin’ In Founders Jack Yulzari, Tzachi Davidovich, Roy Amir and Lior Aharoni TRIPPININ.COM
Business: Trippin’ In Founders: Jack Yulzari, Tzachi Davidovich, Roy Amir, Lior Aharoni Contact: Tzachi@trippinin.com BY BRANDON BAKER
T
he folks behind Trippin’ In are banking on your engagement with social media to keep their Yelp-on-steroids mobile app up-to-date. Jack Yulzari, Tzachi Davidovich, Roy Amir, and Lior Aharoni, all of whom are based in Israel, came together about 11 months ago and formed a plan to aggregate social media networks, so as to create an ultimate guide for consumers to know which places to go, and for businesses to have a sense of their stiffest local competition. This is done through a layout that tells users through a sort of “heat index” just how popular a location is on any given day, providing detailed information on what times of day a restaurant or retail store might be busiest. And though the idea sounds simple, its implementation is surprisingly robust. “Anywhere there are social networks, we’ve got the scene covered — consider that even third-world countries are tweeting all the time,” said Mr. Yulzari, CEO of the company. “We got into the socialmedia landscape, and immediately saw the amazing potential out there in big data. There’s a huge, huge database, and
the insights generated by social users like and I and everyone else I know, from being online and generating an extreme amount of knowledge from “Likes” and “Check-ins,” is just a goldmine.” The four are currently participating as part of Bryn Mawr, Pa.-based DreamIt Ventures’ accelerator program. As a result, the creators of Trippin’ In are currently stationed in New York City for the next three months, meeting potential clients and investors. “I think the most important thing to get out of being here with Dreamit, is coming here to the U.S. and tackling all of our assumptions, and our business efforts, in a big market,” Mr. Yulzari said. “We can really see if we’re going in the right direction. Are we too fixed on a certain cultural, Israeli way of thinking? Because there are great cultural differences between Israel and U.S. users.” For now, Trippin’ In is testing the waters with a private beta it is hosting in conjunction with three clients. The four aim to monetize their startup by selling the API to interested businesses. In order to see a fully-realized Trippin’ In, Mr. Yulzari said the company is seeking no less than $800,000 to $1 million in funding.
Maestro is a tablet application which uses sound recognition technology to minimize the difficulties and inaccuracies of physical sheet music. Features include turning digital pages, indicating incorrect passages played and synchronizing an entire ensemble for wide scale feedback. The Rice Huller 1000 removes the outer shell of rice grains before they are edible, and would be both a portable and inexpensive option for developing nations’ rice farmers. VILLANOVA.EDU
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2013: YEAR OF THE INNOVATOR
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MILLENIALS
Survey Reviews Millenials Seeking Jobs
Beyond.com Connects Employers, Job Seekers New To Networking
According to a Beyond.com survey, while more than 84 percent of Millennial job seekers (age 19-26) are optimistic about finding employment, there are substantial differences in how they view themselves and how HR Professionals perceive them.
C
Millennials who self-identify as being loyal to an employer
1%
86%
Millennials who self-identify as hard workers
11%
HR professionals who believe millennials would work hard
40%
Millennials who self-identify as leaders
9%
HR professionals who believe millennials have the ability to lead “Until millennials are able to overcome existing stereotypes, they’ll have to work extra hard just to get noticed,” said Beyond.com CEO Rich Milgram. BEYOND.COM
Kickstarter Campaign Convinced Business Not To Use Kickstarter BY JULIANA REYES
82%
HR professionals who believe millenials to be loyal to an employer
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FACEBOOK.COM/BEYONDCAREERS
BY BRANDON BAKER ‘Tis the season to be unemployed. Thankfully, No. 4-ranked job-seeking service Beyond.com just might come in handy for this year’s set of college graduates. Founded in 2000 by Rich Milgram, Beyond.com is a King of Prussia, Pa.based subscription networking service that boasts 75 career channels and 2,500 individual online communities for employers and those prowling the market for a job. It is, from the Beyond.com perspective, a gateway to job opportunities In December 2012, the company acquired JobCircle.com, which in addition to welcoming more than one million more users into the fold, ushered in the launch of Beyond.com’s all-new, 21st-century online portfolio — a digital infographic of career accomplishments — earlier this year. “[Beyond.com] is really for those people who aren’t already savvy with [networking]. It’s the network before you get on LinkedIn,” said Joe Weinlick, vice president of marketing at Beyond.com. “There are lots of networking tools out there, but if you look at LinkedIn, that’s good for someone who is perhaps already good at networking, and has an established career or a lot of experience. But for the vast majority of job-seekers — college grads — these are people who
IF YOU LOOK AT LINKEDIN, THAT’S GOOD FOR SOMEONE WHO IS PERHAPS ALREADY GOOD AT NETWORKING... BUT THE VAST MAJORITY OF JOB-SEEKERS...AREN’T THINKING IN AS CAREERORIENTED OF A MANNER.’ —JOE WEINLICK, VICE PRESIDENT OF MARKETING AT BEYOND.COM
aren’t thinking in as career-oriented of a manner.” Beyond.com, which in 2007 landed a spot in the Inc. 500 list of quickly-takingoff businesses, performs about 15,000 resume critiques per day. The site currently touts a total of 35 million members. Still, Mr. Weinlick insisted the company has room for growth, and is always looking at ways it can evolve and improve — especially in today’s ever-changing landscape of networking tools. “What’s really interesting to us right now, is there’s a lot of talk about skillset — having the right skillset for the jobs that are out there. But one of our focuses is the communications element,” Mr. Weinlick said. “How can we play that role to bring an employer and a job seeker closer together? That’s a big area we’ll continue to work and focus on.”
onnectify had successfully crowdfunded before. In one month, it raised more than double its goal of $50,000 for Dispatch, its software that lets you combine multiple internet connections for faster browsing. So when it came to launching Switchboard, a similar product that speeds up video streams, uploads and downloads, the 12-person Center City company again turned to Kickstarter in order to build a community of passionate users for the software, said Connectify President Bhana Grover. But in 10 days, after raising nearly a quarter of its $100,000 goal, Connectify shut the Kickstarter down. The decision wasn’t driven by a lack of faith in the campaign, said CEO Alex Gizis. Connectify shut the campaign down because in those 10 days, the Kickstarter acted as a low-cost way to test the market and made the company realize it didn’t need to crowdfund Switchboard. Once Connectify started marketing the Kickstarter, it heard from many people and organizations that were interested but wanted their own Switchboard, rather than connecting to Switchboard in the cloud, which is what the company had originally planned. Connectify realized they could sell a beta version of Switchboard directly to consumers, with the added bonus of getting feedback from its early adopters. The other reason that Connectify shut down its Kickstarter was that the crowdfunding site isn’t set up to work with businesses, Mr. Gizis said. Companies that contacted Connectify were interested in backing Switchboard but couldn’t contribute to the campaign for two reasons, he said: 1) Kickstarter doesn’t allow for volume orders. No backer can get multiple rewards for supporting a campaign, and rewards can only contain one to three items. So there’s no way to provide bulk orders of a product through Kickstarter. 2) Most companies don’t have a policy on expensing crowdfunding campaigns. “Buying something is one thing, but can they back a crowdfunding campaign?” Mr. Gizis wrote in an email. “Most probably work at companies without a policy on that.” It’s an interesting use of a crowdfunding platform: test the market without actually taking in any funds. That’s a use that Kickstarter, which gets its revenue from a percentage of accrued transactions, might not encourage. This article was originally published by Technical.ly Philly at TPhilly.com
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2013: YEAR OF THE INNOVATOR
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Summit Theme: Data Collection Must Fix More Than Potholes BY CARY BETAGOLE Using data from citizen-powered mobile and web apps has become such a clear best practice for city governments, that a new question was the focus at the 7th annual Mayors’ Innovation Summit held in Philadelphia last week: What’s next? When it comes to moving the civic technology movement forward, the consensus was twofold: we need to continue reaching out to new user bases and seeking better ways to make sense of the data we’re collecting. (A similar need for deeper goals also came out of a civic innovation panel.) “We’re going to have to get better as cities at processing all of this info,” said Mesa, Ariz. Mayor Scott Smith, whose iMesa application invites ideas from citizens for how to make Mesa a better place to live. He reported the
app is already becoming overloaded with data, in his words “a great problem to have.” But if cities are to properly process data gleaned from these civic apps, officials must make sure they’re receiving a holistic view of community sentiment. Chris Osgood, co-chairman of Boston’s celebrated New Urban Mechanics department, suggested “tailoring outreach to the motivations of users” when doing outreach to pockets of citizens reluctant to participating with the apps. For example, Mr. Osgood splittested two different fliers around Boston to encourage Boston’s Dudley Square community to use Citizen’s Connect — a product of Public Stuff, the company that is managing both Boston and Philadelphia’s 311 mobile apps — to report potholes. After sending out a group of intrepid interns to account for every
pothole in Dudley Square, he released one flier that said “Potholes in Boston? Get them fixed” and another that said “Potholes in Dudley Square? Get them fixed.” While the Boston ad had limited success, the more locally targeted ad compelled citizens to report 80 percent of the potholes. Such full-scale civic engagement could be the key to more inclusive legislation. “If in the year 2020, if we’re still crowdsourcing pothole location as opposed to development of policy, we may all have collectively failed,” he said. The summit is part of the U.S. Conference of Mayors, of which Philadelphia Mayor Michael Nutter is its chairman this year, and was coorganized with Temple’s Fox School of Business and the City of Philadelphia. This article was originally published by Technical.ly Philly at The iMesa chart shows how online initiatives in Mesa, Ariz., TPhilly.com can improve city life. MESAAZ.GOV
MARCUM I N N O VATO R of the year
AWA R DS
CALL FOR ENTRIES Marcum LLP and Region’s Business are in search of the top innovators in Biotechnology, Energy, Business Management, Healthcare and Technology in the greater Philadelphia region. Have you or your company pushed the boundaries in your industry and created a catalyst for change? If so, tell us about it. Email a summary of your innovation to innovation@regionsbusiness.com. We will review each summary and contact each applicant for more information. Summaries must be submitted by August 9, 2013. Don’t miss out on this spectacular opportunity to join professionals from around the region in celebrating the spirit of innovation in our region. More details to come. Awards will be presented October 23, 2013.
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DEFINING MARKET STREET Philadelphia’s east-west artery may not be as well known as its north-south sibling, but work done on and above Market Street is redefining the city from river to river and beyond
STORY BY BRIAN HUSSEY | ILLUSTRATION BY DON LEE
P
hiladelphia has long been defined through a series of boundaries and borders. The Delaware and Schuylkill rivers provided the early boundaries for the city, and over the course of its history the city expanded beyond these early limitations to cover 142.6 square miles. Woven into this space is a grid system on which a complex web of neighborhoods, each with its own identity and borders, formed. Despite this complex relationship of boundaries and borders, many people experience the city through its two main connective arteries, Broad Street and Market Street. Yet, whereas Broad Street endears itself to residents as the home of the Avenue of the Arts and Philadelphia sports, Market Street reflects the changing and fractured identity of the city. Market Street — as an essential corridor of business, education, and tourism — is primed for change and development, but will be strongly influenced by the individual characteristics of the areas where development occurs. Brian Hussey is a freelance writer living in Philadelphia
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The Market East station is a focal point when discussing the past, present and future of Market Street in Philadelphia.
Market East Talk of developing Market East is nothing new to Philadelphia. A 2009 report from the City Planning Commission outlined the importance of improving Market Street in order to unlock the potential of the area which includes Chinatown and Washington Square as well as transportation infrastructure which connects Market East with the suburbs and the airport. The plan focused on increasing mixed-use occupancy and improving the pedestrian environment through a series of “long term economic development strategies with short term goals addressing existing issues.” Additionally, the report labeled the short-term goals achievable within the first three to five years of implementation as well as long-term initiatives. Short-term goals intended to improve the aesthetics of Market East and facilitate pedestrian movement. Designing a new streetscape along Market Street, building a new Chinatown Gateway on Tenth Street, moving the Hard Rock Café to the proposed casino location on 8th, and creating an intermodal transport facility were the
major recommendations. Long-term goals included rerouting New Jersey Transit buses away from Market Street, creating retail and residential incentives in the Market East area, and building of a hotel district strongly tied to the completion of the Pennsylvania Convention Center. Many of the enumerated shortterm goals have yet to be completed. For instance, the 2009 plan outlines changes to the Gallery at Market East aimed at increasing more activity on the street level. The façade of the Burlington Coat Factory was to undergo substantial changes through the addition of an entrance between 10th and 11th Streets and using the new wall space as a “media wall” displaying news, transit information, and advertisements. Additionally, the plan proposed building office space on the east side of the same location. These changes, combined with the revitalization of the Reading Terminal Headhouse as an extension of Reading Terminal Market, meant to maximize the value of the north side of Market East. Similarly, the report expressed
ambitious plans for the south side of Market East, such as the construction of a mixed use development at the existing site of Girard Estate. However, there are little signs of these improvements being brought to Market East in the near future. Despite Market East’s proximity to Center City, Independence National Park, Chinatown, and Washington Square, its future has been strongly linked to the development of the Pennsylvania Convention Center and the specter of a casino opening on 8th Street. The Pennsylvania Convention Center recently finished a $780 million renovation, but its future outlook is not encouraging. As reported by Axis Philly, increased labor costs have reduced demand for large conventions in Philadelphia. The loss of revenue is particularly relevant because the substantial drop in hotel rooms booked complicates the vision of Market East becoming the focal point of a new hotel district in Philadelphia. The Convention Center’s problems are not the only obstacles preventing growth along Market East. The prospect of a casino opening in the area
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resurfaced in recent years, questioning the direction of Market East. “Independence Mall and Market East are interesting markets” said Adriano Calvanese, Vice President of CBRE’s Philadelphia office. But, the existence of “too much older product” tends to reduce demand for commercial space in the area. In particular, the 800 block of Market Street, on which currently rests a parking lot, has long been a question of future plans for Market East. In February, developer Ken Goldenberg submitted a bid to open a $500 million casino, hotel, and entertainment center at the property on 8th Street. Mohegan Sun signed on as a partner to manage the casino. While Market Street East waits for word on the casino license and grapples with the struggles of the Convention Center, it is clear that strong interest exists in revitalizing the area from the monolithic and foreboding area it is into one attractive to pedestrians and mixed uses. The question remains of how to connect the city’s traditional strength in thriving educational institutions and medical facilities with Market East’s proximity to transportation.
20 Center City and Market Street West Despite the struggles in achieving transformative development along Market East, Market Street is still undergoing substantial change in Center City, University City, and into West Philadelphia. Brandywine Realty Trust emerged in recent years as a significant stakeholder in Center City and University City. For instance, Brandywine currently holds 1900 Market Street which houses the Philadelphia Stock Exchange as well as office space. It plans to redevelop the site into high-end office space, despite the recent loss of law firm Cozen O’Connor as a tenant. The move by Brandywine to improve the office space signifies a commitment to attracting and retaining high-end corporate office real estate. While the change in office real estate has remained flat, this redevelopment project, slated to be completed in 2015, shows a commitment to making Center City a major commercial center. Brandywine also develops significant residential properties. Across the street from 1900 Market is a vacant lot at 1919 Market Street, next to the Independence Blue Cross building. While this property remained vacant since the construction of the Blue Cross building, Brandywine plans to build a 25-story residential building on the site. The proposal still faces approval challenges from the Zoning Board of Adjustment before the project can get underway. Further up Market, however, Brandywine is heavily involved in two other redevelopment projects. The Grove at Cira Centre South, located at 31st and Chestnut, broke ground in April. The 30-story residential building will be aimed at students and young professionals and includes amenities such as a rooftop patio and pool, a media room, study lounges, and fitness center. It will be the largest student housing residence in the country.
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The tower at 31st and Chestnut composes a complex with the existing Cira Centre building and another residential complex located on Walnut Street scheduled to break ground later this year. These buildings, combined with the existing Cira Centre, will significantly alter the skyline along the Schuylkill River. Market Street, however, remains crucial to connecting University City to Center City. 30th Street Station, currently undergoing construction to improve both vehicular and pedestrian access, remains an important gateway into Philadelphia when combined with the former Postal Office Building across the street. IRS offices will occupy the building after substantial improvements to the building’s interior. These changes, combined with the addition of the Porch at 30th Street, a public space along Market Street with seating and a variety of events, help facilitate the commitment to mixed use design in the redevelopment of University City. Penn and Drexel made major improvements along Market Street in recent years. Drexel opened the Earle Mack School of Law building in January of 2007 on 33rd and Market and plan to complete the 12-story LeBow College of Business Building in 2014. A new site open to potential development is the University City High School campus on 3601 Filbert Street. Currently situated near the University Science Center, it provides new opportunities for development deeper into the neighborhoods surrounding Market Street. Early proposals included building of new, smaller schools on the property or the development of a mixed residential and commercial property. The Science Center, after winning a law suit against the Philadelphia Redevelopment Authority for the property at 38th and Market, began developing a 272,700-square foot housing outpatient facilities, retail, and office and laboratory space for startup companies.
THE GROVE AT CIRA CENTRE SOUTH... WILL BE THE LARGEST STUDENT RESIDENCE IN THE COUNTRY.’
The Grove at Cira Centre South, viewed from Market Street.
ERDY MCHENRY ARCHITECTS
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Children’s Hospital of Philadelphia opened the Nicholas and Athena Karabots Primary Care Center in February.
West of University City Much of the potential of development along Market Street relates to the strength of SEPTA’s Market-Frankford line. Serving 192,000 riders daily on the subway line alone, SEPTA brings unrivaled access to a center city from outside the city. In addition to the subway, tens of thousands of riders take trolleys and buses along Market Street. As Jerri Williams of SEPTA expressed, these “three modes of transportation are ideal of transit oriented development” because of their reach from Center City into the suburbs. The commitment to using transportation oriented development is exhibited by the decade-long, $600 million dollar “El” project which improved the condition of the tracks and stations in West Philadelphia. The area saw a loss of population and investment in this period, however, the report from the City Planning Commission task force focused on capitalizing on this investment into transportation infrastructure.
The challenges of development along Market Street are apparent when walking along the corridor. Housing is clustered near the 4500 block, 4900, 5000, and 5700 block with shops located near the transit stops. Large swaths of blighted and vacant lots are located on the 4900, 5000, 5100, 5300, 6000, 6100, and 6200 block. Despite these obstacles, the Planning Commission’s report seeks to capitalize on existing infrastructure and develop new projects to help spur investment intended to revitalize the corridor. For instance, the former Provident Mutual Insurance Company’s headquarters at 4601 Market Street, was purchased by the PIDC who has been working with city to transform the building into a location for city services, potentially a police station. The reuse of 4601 Market Street provides an important anchor in the redevelopment of the area. In February, Children’s Hospital of Pennsylvania opened the Nicholas and Athena Karabots Pediatric Care Center at 48th and Market.
These additions provide essential services to an area of Philadelphia marred by unemployment and high crime rates. The Planning Commission’s report also calls for redevelopment of the Fresh Grocer location at 56th and Market. Attempting to implement the principal of transit oriented development, the plan recommends building a structured parking unit over the current parking lot so that retail stores can occupy the lower portion and more pedestrian traffic can be attracted from the El stop at 56th and Market. The most ambitious of the plans, and another significant anchor for the West Market Street community, is the proposed “New West” located near 59th and Market streets. This mixed-used property combines affordable housing units with retail stores on the ground level. Of particular importance to the New West project is enhancing the visibility in the area and pedestrian access provided by the refinished 60th Street station.
PHILADELPHIA REAL ESTATE BLOG
While a retail sector already exists in the area, New West aims to attract national brand retailers as well as professional offices. Restaurants, banks, pharmacies, and other stores are also necessary for the area to thrive. Lastly, a concerted effort must occur to remove blighted properties from the area around 59th and Market so as to improve prospects for marketing and financing opportunities. Reversing years of urban decay is a complex process presenting substantial challenges. While the improvements to the Market-Frankford “El” make West Philadelphia accessible to Center City and beyond, the decrease in population that occurred since the 1950s complicates the principals of mixed use developments with residential units. Additionally, new and varied funding sources are essential. Tax increment financing, Transit Revitalization Investment Districts, New Market Tax credits, and Historic Tax credits are some of the important financial incentives recommended in the report to support development.
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FINE ESTATES PREVIEW
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Magnificent Brick Estate in Medford Magnificent Gary Gardner brick estate home with five beds, five full and three half baths with three-car garage on 2.3 acres of lush grounds. Custom finishes throughout this expansive home. Ten-foot ceilings, seven gas fireplaces, Corel “smart house” system and audio system. Custom kitchen with beautiful cabinetry, large island, professional appliances and butler’s pantry. Living, dining and music rooms all with hardwood flooring, custom millwork and plenty of windows. Two-story family room with a wall of windows affords views of the rear yard, pool, cabana house and professionally landscaped property. Main floor study with custom built-ins and rear foyer with laundry room, guest bed and bath. Master suite has sitting area, his and her baths and dressing rooms. Finished basement with custom “pub like” bar, gaming area, full movie theatre and lounge area. This is a one-of-a-kind home perfect for entertaining or just relaxing in your own paradise.
For more information, please contact Anne E. Koons of Prudential Fox Roach at (856) 795-4709
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REAL ESTATE
Graduate Hospital Mixed-Use Puts Store, Not Door, On Corner BY ALEX RUDINSKI With little if any interior work left at 2300 Christian Street, we can now all sit back and marvel at the Graduate Hospital area’s newest mixed-use building. Corner spots have long been mixed-use territory, even before it came into vogue, so it’s no surprise that the first floor of this new three-story building at 23rd and Christian is given over to retail space, with two apartments on the floors above. What is interesting about it is its design. Rather than opting for the basic arrangement of a retail space with a corner-facing entrance and apartments above, the developers chose a design that meshes more smoothly with the surrounding residential construction.
820 Brushtown Rd, Gwynedd Valley, PA
84 Norristown Rd, Blue Bell, PA 19422
With the entrance to the firstfloor retail space facing Christian Street rather than the corner, the building keeps the same directionality as the row homes around it. While it’s hard to tell what might end up there based on the space
$3.65 M (6005156)
$965,000 (5962964)
alone, it seems like it would be a good spot for a third space, like a coffee shop. This article was originally published on the Philadelphia Real Estate Blog at PhiladelphiaRealEstate.com.
5 beds | 6 full, 3 partial baths Timeless & Elegant describe this true estate in prestigious Gwynedd Valley. Built by the builder, for the builder, the residence is sited on over 1.5 acres and offers over 11,000 sf of living space. This home was designed for those with the most discriminating taste and an appreciation for fine living.
5 beds | 5 full, 1 partial baths Meticulously maintained, solid built, Philomeno & Salamone estate home offers nearly 6,000 sq.ft. of living space on 3/4 acres w/3 bay garage. Conveniently located on a private cul de sac in desirable Blue Bell,this home was designed to entertain with its’ custom finishes t/o including newly renovated gourmet kitchen.
1204 Hunt Seat Dr, Lower Gwynedd, PA
936 N Penn Oak Rd, Lower Gwynedd, PA
Nicole Miller-Desantis
(215) 641-2727 (office) (267) 419-1454 (direct)
(215) 850-1305 (cell) (215) 999-5817 (fax)
Vacant Pennsport Lot Site of 11 Future Homes BY BRANDYN CAMPBELL The empty lot located at the corner of 2nd and Wharton streets in Pennsport won’t stay that way for long. Per a zoning permit issued April 23, 1301 South 2nd Street will soon be subdivided into 11 lots. Each lot will become home to a four-story, singlefamily residence complete with roof deck and balconies. Ten of the 11 homes will come with two interior parking spaces. Space was cleared for the project via an alteration permit issued January 2 of this year to demolish the structure that previously existed on the property. That work was completed by Philadelphia-based Demo Machine. The Zoning Board of Adjustment gave the project the go-ahead to proceed via a zoning hearing April 10. The new homes, when completed, will join a surge of building throughout Pennsport and South Philadelphia as a whole that is taking advantage of the relative affordability of the area and the increased popularity of locales south of Washington Avenue. This article was originally published on the Philadelphia Real Estate Blog at PhiladelphiaRealEstate. com.
$1.125 M (6196317)
$948,500 (6196308)
5 beds | 3 full, 1 partial baths Tastefully decorated colonial in desirable Polo Club Estates in the heart of Gwynedd Valley. Sited on over an acre, this well positioned, brightly lit home has improvements throughout. Hardwood flooring, custom paint, newly renovated powder & mud rooms along with numerous other finishes that highlight this beautifully maintained home. 4 beds | 3 full, 2 partial baths Sited on a nearly 1 acre wooded lot in popular Penn Oak, this pretty stone colonial boasts nearly 7,000 sq. ft. of living space w/ its full, finished, walk-out basement. This home offers a bright, open floor plan with access to the outdoors from nearly every room. Kitchen w/ Breakfast Room is welcoming and provides access to large, rear deck for easy entertaining.
Blue Bell Office 686 Dekalb Pike Blue Bell, PA 19422
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Q&A
30 MAY 2013
REGIONSBUSINESS.COM
What is the elevator pitch for World Team Tennis? World Team Tennis was started in 1974 and the group of us, and I have to say from my own perspective, you know, what I’ve been fighting for since I was 12 was equal rights and opportunities for boys and girls. Well, on a Team Tennis team we have an equal number of men and women on the team. If you watch a World Team Tennis match or watch the Freedoms play, you see my philosophy on life. What is that philosophy? We’re in this together — men and women — and the socialization process that goes on, I don’t even think the players understand that this is happening, which is fine, and it doesn’t matter. Sometimes learning through fun — not fun, but competition — just learning, is that sometimes they’re in a leadership role, sometimes they’re in a supportive role. They don’t know it. Maybe they haven’t thought about it from that perspective, but that’s how I think about it. That’s why it’s very near and dear to my heart, and I am a small businesswoman.
BILLIE JEAN KING’S
LEGENDARY MISSION
From the age of 12, the legendary tennis pro and owner of the Philadelphia Freedoms team has pushed for equal rights and opportunities for men and women. She continues that fight today with World Team Tennis.
Why do you identify as a small businesswoman first rather than as a tennis legend? I own tournaments. Kind of by the seat of my pants back in the late ’60s, my former husband and I put all our savings into a tournament at Oakland Coliseum in California. That’s how I became a small businesswoman. And that’s continued. We got rid of all the tournaments after about 25 years, ’cause I really love teams. My younger brother was a pitcher on the San Francisco Giants; I grew up with team sports. I was a team kid. And I always thought tennis would be much better if it were a team sport and belonged to a city and all that. How did you end up as owner of the Freedoms? When I was a player for the Freedoms in ’74, as I was sitting on the bench, I thought it would be great to own the team someday, when I’m older and not able to play anymore. I feel very fortunate. I also own a lot of the league, but even as I get older and older, I definitely will always be part of the Freedoms. I’ll always want a stake in it. If we sell the league, for instance, I personally will be staying involved in the Freedoms. Is the team where the Elton John song (Philadelphia Freedom) came from? Elton John wrote the song for me, and he used to come and watch me play. And he’d sit on the bench. It’s not like tournament tennis; this is more like basketball, where the teams sit on the court, we have coaching, rah rah, we have music. We were the first to have music. We were very innovative in that we were the first ones to have music, we’re the first ones that branded the court color. This was back in the ’70s, OK? No one ever thought about it because we were always so far ahead of everybody. Tournament tennis now has music. Read the full interview at RegionsBusiness.com.
/PhillyFreedoms
@PhillyFreedoms @BillieJKing @WorldTeamTennis
PhiladelphiaFreedoms.com
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OPINION
U&O Tax Increase Sends Wrong Signal
Rob Wonderling is President & CEO of the Greater Philadelphia Chamber of Commerce.
Steve Bradley is Chairman of the Philadelphia African American Chamber of Commerce
CONTRIBUTE Send comments, letters and essays to feedback@ regionsbusiness.com. Opinions expressed by guest writers do not necessarily reflect those of Region’s Business.
THE USE & OCCUPANCY TAX...IS LIKE A NEON ‘DO NOT ENTER’ SIGN FOR INNOVATORS AND ENTREPRENEURS SEEKING THE BEST PLACE TO CREATE BUSINESSES — AND JOBS.’
Philadelphia has the second highest poverty rate in the nation, next to Detroit. One of the key reasons: Decades of jobs lost to our suburbs and other states. Today, 42 percent of city residents leave the city to go to their jobs — outside Philadelphia. We’re moving in the wrong direction. Why have jobs been leaving the city for so many years? In just the last four years alone, City Council has raised taxes six times — by $275 million. These tax increases have a chilling economic effect and add costs for every business — the generators of jobs for our citizens. In 2012, Council voted to raise the Use and Occupancy tax on businesses in Philadelphia by 19 percent — a $20 million increase. Last week, a bill was approved by a Council committee to raise the Use and Occupancy tax — again — by another 20 percent. Is it any wonder there are six times more office jobs on the Lower Merion side of City Avenue than the Philadelphia side? Over the past few months, Council has proposed a set of measures to generate new revenues for the city — without raising taxes. Council held hearings to examine how the city collects delinquent property taxes — a total exceeding $500 million. The Greater Philadelphia Chamber testified in support
of this initiative. We can do better collecting from delinquent taxpayers — it’s only fair. Council President Clarke introduced a bill to create a new Chief Revenue Generation Officer for Philadelphia, to seek innovations to raise revenues for the city — without raising taxes. Our Chambers support this — as well as the mayor’s appointment of a Chief Revenue Collections Officer to better coordinate efforts to collect all delinquent taxes. Our Chambers also support the Council President’s proposal to establish a plan for advertising on city property — to generate millions in new revenues — again, without raising taxes. Another good idea. Yet, when every spring brings another tax increase, whether it’s from the property tax, the Use & Occupancy tax, or another tax, it sends a signal to job creators that our city may not be the most conducive place to set up shop. It’s like a neon “Do Not Enter” sign for innovators and entrepreneurs seeking the best place to create businesses — and jobs. And when a narrow slice of our citizenry — office building tenants —are asked for the second consecutive year through a U & O tax hike to shoulder the burden for a broadbased public need — adequate funding for
public education — we cannot support that. We firmly believe there is nothing more important than giving every child in Philadelphia a quality education, and helping them achieve their fullest potential as productive citizens. As the Greater Philadelphia Chamber’s CEO, I served on the committee that led to the School Reform Commission’s selection of Dr. William Hite as Schools Superintendent. Both chambers strongly support Dr. Hite. We also worked closely with the new SRC leadership to help the District secure a $300 million financing, as the SRC did everything possible to reduce its deficit to manageable levels. We stand ready to assist Council, the Mayor, and the School District — as we have done on countless occasions — to help gain support from Harrisburg to ensure our children receive a quality education in our schools. Tax increases negatively impact business decisions, hiring and our economy. If we are to grow jobs and provide opportunity for all here in Philadelphia, we must work together to find sustainable, long-term solutions to meet the needs of both our businesses and our schools.
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OPINION COMMENTARY FROM ACROSS THE WEB
Unlikely Ally Defends Corbett Latino Comment It’s hard to make true friends in politics — particularly for an elected official embroiled in a hot mess of a ‘gaffegate’ controversy. But Gov. Tom Corbett certainly has one in Ken Trujillo. Their friendship is an unlikely one. Corbett is a white Republican from the Pittsburgh area. Trujillo is a Latino Democrat from Philly. But after the governor came under fire for telling a group of Philadelphia business people last week that he had no Latinos in his cabinet, and “if you can find us one, please let me know,” Trujillo has come to Corbett’s rescue. “Frankly I think this whole thing is much ado about not very much,” Trujillo told The Patriot-News. “I think he’s done a far better job with the Latino community than this controversy suggests,” Trujillo added. “He’s named and nominated Latinos to some of the most important positions, including the school reform commission in Philadelphia, me to the LCB, others to sub-cabinet positions, and cabinet positions such as the Department of Health.”
follow. Now, it’s very sad that they had lost their mother to cancer a week earlier. But that doesn’t give them the right to impose their obscene fashion statement on other shoppers, including those with children, who were at the mall that day. The sisters aren’t the victims in this tale; they are the victimizers. DELCOTIMES.COM EDITORIAL, 23 MAY 2013
Applause No Substitute For Giving A Soldier A Job “When our perils are past, shall our gratitude sleep?” That question, first asked by British statesman George Canning more than 200 years ago, is often repeated on Memorial Day and other military observances. In the days of an all-volunteer military, this nation should make an even stronger commitment to help the men and women who step up, often multiple times, to serve their nation in uniform. It’s not asking too much that they be treated with more respect upon the completion of their service. That includes finding them jobs and tending to their health. 27 MAY 2013
Anything Goes Is New Political Correctness Some time back in the 1990s, it became fashionable to rail against the sin of “political correctness.” ... Twenty years later, it’s clear who won that argument, and we are reaping the results every day. We’re not talking about cretins like Spanish golfer Sergio Garcia, who made a blatantly racist comment about American golfer Tiger Woods this week. That kind of language would always be condemned. No, we’re talking about cases like the three Philadelphia sisters who thought it was totally appropriate to go shopping at the King of Prussia Mall wearing hats that proclaimed “F--- cancer.” (Well, the third letter in the first word of that phrase was substituted with a pink breast cancerawareness ribbon, but the meaning was clear.) They were asked to take off the hats, and when they refused, they were asked to leave. A media circus ensued. Litigation will inevitably
Real Scandal Is Lame Campaign Finance Law I think we’re missing the scandalous part of the IRS scandal. If you want to raise money to promote your political cause, and you don’t want to pay taxes on the money you raise, form a group that is tax-exempt under the Internal Revenue Code. One choice is to be approved by the IRS as a Section 527 organization. Such organizations are permitted unlimited spending on “issue advocacy” (as opposed to activity to elect a specific candidate). If you do, however, you will have to file a list of your donors in the state where your political activity takes place or with the IRS. ... The real scandal is that our campaign finance laws are so remarkably lame that we allow enormous amounts of money to be spent to influence public opinion and the outcome of elections without even requiring that the identities of donors be disclosed.
REGION’S BUSINESS A JOURNAL OF BUSINESS AND POLITICS © COPYRIGHT 2013 INDEPENDENCE MEDIA 350 SENTRY PARKWAY, BLDG. 630, SUITE 100C BLUE BELL, PA 19422 610.572.7112 | WWW.REGIONSBUSINESS.COM
TIM MCCANN ON PHILLYBURBS.COM,
@TIMWIS
@PhillyPhriedman
@DiBrunoBros
For the next few days, PHL will become the center of entrepreneurial civic innovation in the multiverse #mayorsinnovation
We were honored to be nominated for a 2013 Governor’s Impact Award for efforts in creating jobs and investing in PA! 23 MAY 2013
22 MAY 2013
PHILADELPHIA INQUIRER EDITORIAL,
ROBERT VICKERS FOR THE PATRIOT-NEWS, 23 MAY 2013
Watching @storybellows try out Google Glass at #mayorsinnovation
@davidphardy
@sahuguet Overheard at #MayorsInnovation «Open the data to open the conversation.» 26 MAY 2013
More support for additional funding for the school district is eminent. It’s the right thing to do. 18 MAY 2013
@christopherwink “Philadelphians love change, as long as it stays exactly the same. We embrace change. Then we strangle it.” @Michael_ Nutter #mayorsinnovation 24 MAY 2013
@PatriotNews Schwartz ad takes early aim at Corbett: The 84 second spot then displays the text “Excuses, instead of jobs.” 8 MAY 2013
@mheadd Love it when mayors talk about hackathons as a strategy for driving innovation. #mayorsinnovation #civichacking 23 MAY 2013
@EricGPlatt The Revel Atlantic City to emerge from Chapter 11 bankruptcy by end of May restructure will reduce its debt load by 82%, or $1.2bn 13 MAY 2013
@andersonatlarge .@Michael_Nutter Digital inclusion beyond the Internet to increase participation of blacks, Hispanics and women. #mayorsinnovation
27 MAY 2013
EDITORIAL BOARD CEO and President James D. McDonald Managing Editor Terrence J. Casey
@PAindependent A little history news today - the original Bill of Rights is coming to PA in 2014. Would you want to see it?
23 MAY 2013
22 MAY 2013
HOW TO CONTRIBUTE To contribute, send comments, letters and essays to feedback@regionsbusiness.com. Opinions expressed by guest writers do not necessarily reflect those of Region’s Business. We reserve the right to edit all submissions for content, style and length.
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30 MAY 2013
REGIONSBUSINESS.COM
BY THE NUMBERS
24%
$5.4M
Exposure value of Citizens Bank Park, according to a study done by Joyce Julius & Associates.
3,617
Internet articles referencing Citizens Bank Park during the 2013 baseball season
472
Print articles referencing Citizens Bank Park during the 2013 baseball season
402
TV programs referencing Citizens Bank Park during the 2013 baseball season
Online teens who use Twitter, up from 16 percent in 2011, according to a Pew Research Center survey
300 Average number of “friends” teenagers have on Facebook
150
Dunbar’s number, which refers to the maximum number of people with whom one can maintain a social relationship
2.03
SARAH OWEN
$44M
Total costs for Penn State University connected to the Jerry Sandusky child sex abuse scandal through the end of February
$1.5M
Total legal costs reported in January
The average number of people with whom adults “discuss important matters” in a six-month period, according to a Cornell study
$9.2M
Total cost of university legal services and defense through February
$800,000
16%
Increase in university legal services and defense costs from January
$9.7M
Average salary for the head of a large public company from 2011, up 6.5 percent from 2011, according to Associated Press analysis
24%
Increase in salary from 2010 to 2011 after falling for two straight years, according to the analysis
$60.3M
2012 salary of CBS CEO Leslie Moonves, according to the Associated Press
$29.1M
2012 salary of Comcast CEO Brian Roberts, according to the Associated Press
Teen social media users who have set up their profile to include their location automatically, according to the Pew study
20%
Boys who have a fully public social media account
8%
Girls who have a fully public social media account
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