Region's Business July 18

‘THE GRANDE DAME OF BROAD STREET’ RUNNING A SUCCESSFUL PR CAMPAIGN

CARPENTERS’ LEADER JOINS CONVENTION CENTER BOARD

REGION’S BUSINESS

PHILADELPHIA EDITION

A JOURNAL OF BUSINESS AND POLITICS

PA POLITICS FIRMLY IN UNIONS’ GRIP

Pension reform, transportation funding and liquor privatization are latest victims of labor stonewall

GOVERNOR SIGNS TRIMMED ‘INNOVATE IN PA’ LAW STEVE WYNN’S CASINO: ‘AN ISLAND OF LIGHTS’ SEEKING REGION’S BEST INNOVATORS

18 JULY 2013

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18 JULY 2013

REGIONSBUSINESS.COM

CONTENTS

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1519 Walnut Street

PA Politics Firmly 18 In Unions’ Grip 20

Carpenters Group Leader Joins PA Convention Center

6

Calling Region’s Best Innovators

6

Local Architect Awarded National Medal of the Arts

27

Hyatt at the Bellvue Still ‘Grande Dame’

22

Steve Wynn Outlines Local Casino Plan

REGION’S BUSINESS A JOURNAL OF BUSINESS & POLITICS

Independence Media Corp.

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Trimmed-Down Innovate in PA Legislation Signed

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Philly Tech Meetup Draws More Startups From Outside Region

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Ideas Column: Having A Successful PR Campaign

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x x PRESIDENT AND PUBLISHER James D. McDonald MANAGING EDITOR Terrence J. Casey ASSOCIATE EDITOR Rich Coleman CONTRIBUTORS Brandon Baker, Eric Boehm, Tom Ferrick Jr., Charlie Gerow, Don Lee, Sandy Smith, Christopher Wink PROOFREADER Denise Gerstenfield ADVERTISING DIRECTOR Larry Smallacombe DIRECTOR OF BUSINESS DEVELOPMENT Deirdre Affel

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18 JULY 2013

REGIONSBUSINESS.COM

DEALBOOK

LEGAL

Legal Industry On Record Pace For M&As Analysis from the Newtown Squarebased Altman Weil shows the legal industry potentially setting a record for mergers and acquisitions during the first half of 2013.

Up to this point, there have been 39 mergers, according to the analysis. The largest number of U.S. law firm mergers in one year was 70 in 2008.

Local mergers and acquisitions in the Philadelphia area include: — Fox Rothschild of Philadelphia, 560 lawyers, acquired Lottner Rubin Fishman Saul of Denver, 16 lawyers, in late June.

— Chartwell Law Offices of Philadelphia, 85 lawyers, acquired Houck Anderson of Miami, eight lawyers, in late February.

Curalate, Mayor Nutter Cut Ribbon On New Headquarters Curalate, a social media analytics company that focuses mainly on visual-based social networks, celebrated the opening of their new office in Philadelphia Thursday, July 11, with Mayor Michael Nutter at a ribbon cutting ceremony.

The company’s new headquarters is located at 2401 Walnut St. and it also operates offices out of New York City.

Curalate is working with brands in the consumer packaged goods, retail, publishing, luxury, automotive and media sectors.

The company has already outgrown three Philadelphia offices and increased its employee count from three to 21 in just over a year.

It also took home the 2013 Ernst & Young Entrepreneur Awards for Philadelphia in the Emerging

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“Curalate’s growth is yet another signal that Philadelphia is increasingly becoming a hub for fastgrowing technology companies and a place for entrepreneurs to start and grow their businesses,” said Mayor Nutter.

Curalate CEO Apu Gupta said the company plans to continue growing in Philadelphia and will be hiring.

“We are committed to continuing to build our business in Philadelphia and are grateful for the support the city and its administration have provided to date,” said Mr. Gupta.

“In the coming months, we intend to keep hiring and are counting on Philadelphia’s robust talent pool to assist in our growth.”

HEALTH CARE

Temple ReadyCare In Fort Washington Opens Temple Health continued its expansion into the Philadelphia suburbs with the opening of its fourth Temple ReadyCare urgent care facility in Fort Washington on Monday, July 15.

The opening follows the opening of the third ReadyCare facility in Jenkintown.

ENERGY

PGW Offers New Incentive Program Philadelphia businesses will have a new opportunity for cash grants and rebates with EnergySense.

Building grants up to $75,000 are available for certain energy upgrade projects to existing properties, and up to $60,000 for construction grants.

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18 JULY 2013

REGIONSBUSINESS.COM

WEEKLY BRIEFING

INNOVATOR OF THE YEAR AWARDS

Region’s Business, Marcum Announce Innovation Awards

Local Architect, ASLA Fellow Awarded National Medal Of Arts

New Ads Claim Penn National Casino Will Be Schools’ Savior One of six applicants for the second Philadelphia casino license, Penn National Gaming Inc., is running advertisements claiming that the proposed Hollywood Casino would save the city’s schools and pension system, the Inquirer reports.

Online ads started running in early July on sites like Philly.com.

The ads feature a city school with “Hollywood Casino Philadelphia” above the facility and the words “More Dollars for Schools.”

Laurie Olin at the 2013 Whittemore Lecture on Landscape Architecture March 26, 2013. His talk was titled “Sustainable Cities: New Name, Old Topic.”

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Laurie Olin, founder and principal of OLIN in Philadelphia, received the National Medal of Arts from President Obama on Wednesday, July 10.

Olin was among 12 recipients of the award. Others include George Lucas, Elaine May, Ellsworth Kelly and Tony Kushner.

The White House said Olin is being honored for “his contributions as a preeminent landscape architect.”

“Renowned for his acute sense of harmony and balance between nature and design, Mr. Olin has dedicated his energy to shaping many iconic spaces around the world and to educating new leaders in his art.”

In 2011 Olin received the American

Society of Landscape Architects (ASLA) Medal, the Society’s highest award for a eZg]l\Zi^ Zk\abm^\m' A^ pZl ^e^\m^] Z ?^elow of ASLA in 1999.

Olin’s work includes iconic places like New York City’s Bryant Park and the Washington Monument Grounds in Washington, D.C. His professional contributions also include a lifetime of teaching future landscape architects, spending more than 30 years at the University of Pennsylvania and, before that, chairing Harvard University’s Department of Landscape Architecture.

In addition, he is the author of many books and has written extensively on the history and theory of landscape design.

EDUCATION

ARCHDIOCESE

3 Percent Increase For State-Owned Colleges Approved

Archdiocese Won’t Pursue Bankruptcy, Hands Over Control Of Multiple Elementary Schools

Tuition and technology fees at the 14 state-owned Pennsylvania universities will go up 3 percent for the coming academic year, PennLive.com reports.

The increase is expected to close a $77 million gap in the Pennsylvania State System of Higher Education’s operating budgets.

The approved tuition hike will result in an annual increase of $204 for the typical full-time, Pennsylvania resident student.

PSU Approves Sandusky Settlement Offers The Penn State Board of Trustees voted Friday, July 12, to authorize the school to make settlement offers to those who claim to have been abused by Jerry Sandusky.

Marcum LLP, a national accounting and advisory firm, and Region’s Business have launched the Innovator of the Year Awards to recognize business innovation in the Philadelphia region.

The inaugural event will honor companies whose innovations have positively impacted the Greater Philadelphia economy or have significantly benefited their industries or end-users. Nominations must be received by September 15, 2013.

To submit nominations, visit http:// www.marcumllp.com/Innovator/submit.

GAMING

PENN STATE

Despite $350 million in long-term debt, the Archdiocese of Philadelphia’s chief financial officer said there are no plans to seek bankruptcy protection, the Inquirer reports.

Meanwhile, 14 Catholic elementary schools will soon be opening under new management.

The Independence Mission Schools system will take control in the fall and plan to make the education more affordable for families, IMS president Al Cavalli said Monday, July 15.

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“Today’s action is yet another important step toward the resolution of claims from Sandusky’s victims,” Penn State President Rodney Erickson said in a statement. “As we have previously said, the University intends to deal with these individuals in a fair and expeditious manner, with due regard to their privacy.”

Officials had no further comment until settlements were finalized.

Spanier Files Suit Against Louis Freeh Ex-Penn State president, Graham Spanier, began a libel and defamation case Thursday, July 11, against Louis Freeh.

Mr. Freeh, former FBI director, produced the Freeh Report a year ago, which claimed Spanier, along with other officials, “repeatedly concealed critical facts relating to Sandusky’s child abuse from the authorities, the university’s board of trustees, the Penn State community and the public at large.”

The lawsuit came one day before the one-year anniversary of the Freeh Report’s release. Under Pennsylvania law, those who believe they have been libeled or defamed have a year to initiate a civil lawsuit.

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18 JULY 2013

REGIONSBUSINESS.COM

WEEKLY BRIEFING

NATIONAL

Hillary Clinton Speaks in Bryn Mawr

Parkway’s Pop-Up Park Opens With Free Family Activities

Sec. of State, Hillary Clinton visited Bryn Mawr College Tuesday, July 9, and offered advice and encouragement to members of the Women in Public Service Project, the AP reports.

“If women participate in their economies, the economies grow,” Clinton said.

“In politics, if women are not at the table ... the discussion can’t be fully reflective of the needs of all the people.”

Feds Plan To Spend $4M To Promote New Health Care in Pa. State health clinics are picking up $4 million from the federal government to help promote the Affordable Care Act. The federal government plans to spend more than $150 million in grants to 1,100 heath centers and clinics across the county The U.S. Department of Health and Human Services announce Wednesday, July 10.

In Pa., 38 grants totaling more than $4.1 million will be awarded. The funding is supposed to create 76 jobs.

The Oval on the Benjamin Franklin Parkway officially opened Wednesday, July 17.

The pop-up park, once asphalt and lawns at 24th Street and the Parkway, promises to be a source of free activities everyday with four summertime-themed areas: “The Beach,” “The Blanket,” “The Boardwalk” and “The Lawn.”

“The Beach” and “The Blanket” areas will contain sand boxes, lifeguard chairs, ping pong tables and other games, while “The Boardwalk” will have a rotating selection of four food trucks everyday.

“The Lawn” includes a nine-hole minigolf course, volleyball, badminton and Adirondack chairs.

Each day will be a different theme for

programs and activities at the Oval.

Tuesdays will focus on wellness; Wednesdays, arts and culture; Thursdays, the environment; Fridays, food and movies; Saturdays, live music; and Sunday, family fun. A beer garden will be scheduled for every Thursday from 5 to 9 p.m.

The Oval is currently programmed for five weeks from July 17 through August 18 from 9 a.m. to 9 p.m. through a partnership between Philadelphia Parks and Recreation and the Fairmount Park Conservancy, and support from William Penn Foundation and City of Philadelphia.

After that period, The Oval will host additional pop-up activities in September and October, with the potential to return next spring and summer.

PA INDEPENDENT

PHILADELPHIA

MEDIA

New Anti-Poverty Effort Hits Philly

Neil Budde Steps Down As AxisPhilly CEO

A new effort is being launched in Philadelphia to maximize help for the poor while urging poverty groups to go even further in their efforts NewsWorks reports.

“Shared Prosperity Philadelphia” will ensure that poor residents take advantage of all available programs that are available to them.

Eva Gladstein, who leads Philadelphia’s antipoverty efforts, told NewsWorks the money being spent on the city’s programs is not enough.

SEPTA Opens Up Discussion For KOP Rail Service SEPTA is evaluating alternative alignments of the Norristown High Speed Line to provide increased public transit service to King of Prussia and Valley Forge.

A Public Scoping Meeting was held Tuesday, July 16, and SEPTA officials outlined the plan while hearing feedback from the public.

The Oval opened yesterday, July 17, turning a surface parking lot at Eakins Oval on the Benjamin Franklin Parkway into a pedestrian-friendly park.

PHILADELPHIA PARKS AND RECREATION

HEALTH CARE

TRANSPORTATION

Neil Budde gave up his position as CEO of AxisPhilly, originally Philadelphia Public Interest Information Network, in order to alleviate financial concerns the non-profit media outlet faces presently.

“In recent weeks, we learned that substantial additional funding was not readily available to support our plans in the near future,” he said on AxisPhilly.org.

“...It seems likely that the Wyncote Foundation will provide a modest grant in 2014. This money is sufficient to buy AxisPhilly considerable more time. But I also recognized that the expense of a well-compensated CEO would cost the organization some of that time, and I recommended that my own position be eliminated to give AxisPhilly even more time.”

Neil Budde

Aside from providing an alternative to congested roadway travel, officials said King of Prussia rail would attract new transit riders and support economic development opportunities and meet regional sustainability and livability goals.

For more information, visit http://www. kingofprussiarail.com

PSE&G Solar Energy Took Big Hit From Sandy New Jersey’s largest solar power developer, Public Service Electric & Gas, faces $3 million worth of damage, primarily from storm surges that flooded ground-mounted solar systems, NJSpotlight.com reports.

Wind and lightning from Superstorm Sandy also wreaked havoc on rooftop arrays.

PSE&G’s filing with the New Jersey Board of Public Utilities seeks approval to collect $111 million from electric customers from October 2013 to September 2014, and an additional $19 million from its gas customers for green energy programs.

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18 JULY 2013

REGIONSBUSINESS.COM

WEEKLY BRIEFING EXECUTIVE BOOKSHELF

WHO TO FOLLOW

@adelebeid Adel Ebeid Want to stay in the loop on tech trends the City of Philadelphia is using?

Follow the city’s first ever CIO, Adel Ebeid, on Twitter.

RT @adelebeid: Learning how to learn, adapt and innovate....something @PhiladelphiaGov does well under the leadership of @Michael_Nutter RT @adelebeid: Congrats to @USGrantErvin & Philly PD on winning ESRI’s special achievement award for work on PD mapping...more to come from the PD/GIS team

Top 20 Keys To Effective Leadership With Baby Boomers facing retirement, Generation X employees are increasingly expected to step up in their leadership roles.

Curtis L. Odom, principal and managing partner at Prescient Strategists, wrote Generation-X Approved: Top 20 Keys To Effective Leadership to handle just that.

This book examines different facets of successful leadership, like the importance of context and rationality, and the successful combination of presentation and perception.

RESTAURANT ROUNDUP

MUST-HAVE APP

ParkMe For frequent travelers to the city, there may be no greater hassle than finding a parking spot near your destination.

ParkMe looks to take some of the guesswork out of it.

This free iPhone/Android app lets users find parking based on their location and input how long they’d like to park,.

They are then given a map of parking options near their location and an estimate of how much it will end up costing.

Another helpful feature is the real-time look at how full a parking garage is. A progress bar will display the percentage of that given location.

ParkMe says the app serves over 28,000 parking locations across 1,823 cities, 32 countries, and seven continents. So, tracking Philadelphia’s multitude of parking garages is no sweat.

This app also works in tandem with the web app, found at ParkMe.com.

Vetri Becoming Le Bec Fin For 3 Days Those still grieving the loss of Le Bec Fin will be happy to note Georges Perrier, the chef that first opened Le Bec Fin, will be entering Vetri’s kitchen to cook the greatest hits..

Mr. Perrier will be operating starting today, July 18, through Saturday, July 20.

The prix fixe dinner will cost $155 and, though reservations have long been filled up, those interested in attending can put their name on the wait list in case of any cancellations.

Mr. Perrier opened Le Bec Fin at Vetri’s location, 1312 Spruce St., in 1970.

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18 JULY 2013

POLITICAL COMMENTARY

REGIONSBUSINESS.COM

Prosecutions No Place For Politics

Charlie Gerow is CEO of Quantum Communications, a Harrisburg-based public relations and issue advocacy firm.

FLICKR.COM/WERTHMEDIA

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 murder trial of George Zimmerman ended in his acquittal. But the hue and cry over the case continues.

Let’s begin with what all agree: The death of Trayvon Martin was a tragedy. Every parent mourns with those who have lost a child.

But not all tragedies are crimes.

There’s a lot of disagreement about this case, how and why it was prosecuted and what, if anything, should happen now.

In his post acquittal news conference defense attorney Mark O’Mara was pretty clear about two things. He laid the case right at the feet of the prosecutors and the media.

The media, he said, “…took a case that was fed to them and ran right over George Zimmerman.”

Media coverage of the case began quietly.

A story about the incident in the Orlando newspaper the day following was a mere blurb. That treatment didn’t last long. After being covered by only local media for ten days the Martin family hired a publicist.

The story quickly became a media feeding frenzy with every possible aspect of the case dissected, analyzed and discussed.

The media also gave voice to those from outside the community who saw larger issues. The fact that the local police didn’t want to arrest Zimmerman became an issue.

Incredible pressure — political pressure

— was put on local prosecutors to charge George Zimmerman. When those prosecutors demurred, greater political pressure was brought on the governor and other officials.

The media, meanwhile, was running pictures of Trayvon Martin, supplied by his family, with an angelic smile on his 12-yearold face. They’re still using that photo. It was enough to prompt the President of the United States, in an unprecedented comment, to say, “If I had a son, he’d look like Trayvon.”

Never mind that Martin had been nearly 6’2”, bearded and nearly 18. He was constantly referred to as a “child.”

That was the least of it. NBC falsely edited his 911 call recording to make Zimmerman appear racist. They later apologized, but the damage was done.

The police detectives investigating the case didn’t believe Zimmerman had acted out of racial motive. They didn’t think he should be prosecuted.

But the political pressure had its effect.

Protest rallies were organized from outside.

Our taxpayer dollars even helped out as the United States Department of Justice sent “community organizers” down. Al Sharpton (of Tawana Brawley fame), Jesse Jackson and others poured in from afar.

Zimmerman was charged with second-

degree murder. From the start it was apparent that over-zealous prosecutors had “overcharged,” alleging crimes they could not prove.

So badly was the case handled that famed Harvard Law professor Alan Derschowitz, hardly a right winger, said the prosecutors should be disbarred.

The jury heard the evidence, deliberated for 16 hours and returned a “not guilty” verdict despite being given the chance, as requested by the prosecution, of finding Zimmerman guilty of the lesser crime of manslaughter.

Almost immediately Al Sharpton was in the media talking about his efforts to further pressure the Justice Department to bring civil rights charges against Zimmerman.

For its part, the Justice Department says it is “investigating.” You have to wonder about such an investigation. It claims the investigation has been ongoing for more than a year. So the question occurs about what facts not already known would lead to any such charge.

Those who refuse to let go of this case do no service to their cause. Politics and criminal justice don’t mix. The cause of racial harmony is not advanced by political pandering in the criminal justice system. Prosecutions should not be political decisions.

18 JULY 2013

REGIONSBUSINESS.COM

POLITICS

11

PA House Returns To Finish ‘On-Time’ Budget

BY MELISSA DANIELS HARRISBURG — Less than two hours after Speaker of the House Sam Smith, R-Jefferson, struck his gavel to start the session Monday, lawmakers were filtering out of the chambers, through the Capitol hallways and back to their districts.

Just like that, Pennsylvania’s on-time state budget was finally complete, 15 days after the constitutional budget deadline. If that sounds contradictory, it’s probably because it is.

Pennsylvania law requires the governor to sign a budget bill before July 1. But there are several additional bills, called code bills, directing specific spending that must be passed as well.

Until about 3 p.m. Monday, those weren’t completed.

Whether having code bills wrapped up on time makes or breaks an “on-time budget” depends on who you ask.

To Governor Tom Corbett, the budget

federal money throughout state agencies, including $45 million for the Philadelphia School District.

The Senate stripped out that language the next day because no one had agreed to that language in that chamber. The change forced House members to come back for a concurrence vote.

All this occurred after a budget season failed to deliver any of Gov. Corbett’s top three agenda items.

On Monday, the session lasted less than two hours, with a quick introduction of guests followed up by a committee was on-time when he signed the 2013- Maher, R-Allegheny, put it, a “commu- vote to move the re-amended fiscal code 2014 appropriations bill around 10:30 nication gaffe” — between the House and bill to the floor. Both parties headed to p.m. June 30. To House Democrats on Senate caused the House to bounce back their respective caucuses — the RepubMonday, it was not. to Harrisburg to pass a bill the Senate licans met for about an hour — until House Appropriations Minority Chair- had changed in July, a time when law- returning to the floor for a vote.

The fiscal code passed with a 103-85 man Joe Markosek, D-Allegheny, burned makers are usually back in their districts.

Republicans in the statehouse for havTwo days after the budget passed, vote, after brief remarks from several ing “so much clout, so much power and House Republicans inserted language representatives.

This article was originally pubso many votes and yet they can’t do the into the fiscal code bill declaring an intention to legalize payday lending lished by Pennsylvania Independent budget on time.”

A disagreement — or, as Rep. John businesses. The fiscal code distributes at PaIndependent.com.

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18 JULY 2013

POLITICAL COMMENTARY

REGIONSBUSINESS.COM

When The Government Does It, It’s Not Illegal

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.

The past few weeks have not been great for the concept of rule of law.

You know that quaint notion that we are nation of laws, not of men? The idea that our elected officials are beholden to something other than their own political whims?

Exhibit One is the Obama administration, which made the unilateral decision on July 3 to delay the implementation of a major part of the Affordable Care Act — aka Obamacare — for an entire year.

Never mind that the law explicitly says the new “employer mandate” takes effect in 2014, because President Obama has decided that it can wait until 2015.

For the uninitiated, the employer mandate is one of the key components of Obamacare.

It requires all businesses with at least 50 employees provide health care coverage that meets federal qualifications. Business groups say the 50-employee cap will dissuade small employers from growing and gives businesses that are just above that threshold a pretty good incentive to fire a few people in order to avoid having to offer expensive benefits to all.

All-in-all, those are not great ways to incentivize hiring, which just so happens to be a

crucial part of the national economic recovery.

So cynics will say the delay is all about political timing. By pushing off the onerous employer mandate until 2015, Democrats won’t have to deal with public outcry about the law during the 2014 election cycle when they will be fighting to keep control of the U.S. Senate.

But some legal analysts already have raised the question — a good one — about whether the administration is allowed to simply ignore a major provision of its own health insurance overhaul.

Exhibit Two is right here in Pennsylvania, where Attorney General Kathleen Kane has announced she will not defend a state law defining marriage as “between a man and a woman” from a lawsuit brought by 27 plaintiffs who seek equal protection for gay marriages.

Last week, Ms. Kane cited her personal opposition to the law as the main reason why she will not defend it in court. That leaves Gov. Tom Corbett to appoint an attorney to defend the law, if he so chooses.

Regardless of your feelings on Pennsylvania’s same-sex marriage ban, Ms. Kane’s actions should raise some eyebrows.

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And regardless of her feelings about the law, Ms. Kane is required as the state’s attorney general to defend Pennsylvania statutes from legal challenges.

The ban on same-sex marriage probably is unconstitutional and should be overturned.

But it is the job of the state Supreme Court to make that judgment, not the state attorney general.

And the employer mandate probably is an excessive burden that will hurt the economy and cost Democrats some elections. But it is the job of Congress to make (or, in this instance, unmake) laws, not the executive branch. Anyone in a sixth-grade civics class could tell you that.

But in the wake of these seemingly arbitrary decisions by some of our highest-ranking elected officials, I can find at least one silver lining.

If we’re going to accept the premise that government can refuse to acknowledge or enforce any legal statute it chooses, Secretary of Revenue Dan Meuser should announce the immediate suspension of entire state tax code.

Absurd? Yes. That’s why we shouldn’t ignore the rule of law.

18 JULY 2013

2013: YEAR OF THE INNOVATOR

REGIONSBUSINESS.COM

13

$75M State Tech Investment To Benefit Philadelphia Area SUBMITTED

In January, state Sen. John Blake (D-Lackawanna) held a town hall on his region’s bioscience industry, which stands to benefit from ‘Innovate in PA’ legislation.

SEN. JOHN BLAKE/TECHNICALLY PHILLY

BY CHRISTOPHER WINK

A

total of $100 million in tax credits can be auctioned off in a deal aimed at boosting state-backed early stage capital in Pennsylvania, thanks to the trimmed down passage of the ‘Innovate in PA’ program that was signed by Governor Tom Corbett July 9.

The money, earmarked for life sciences and other technology firms, is going state-wide but by virtue of Philadelphia’s size and its relative share of technology business, this region should see a sizable benefit.

The auction is aimed at insurance companies and the credits are expected to sell for at least 75 percent of face value to bring in $75 million or more.

Both the sale and the money would be managed by the state’s Department of Community and Economic Development and the Ben Franklin Technology Development Authority, which includes the Ben Franklin Technology Partners of Southeastern Pennsylvania.

The auction could happen as quickly as this year and flow mon-

ey through BFTDA soon after in 2014, said Dean Miller, the CEO of PACT and an active proponent of the legislation.

This style of focused tax credit sales for investment is modeled after similar Maryland legislation.

Tax credits purchased can’t be redeemed until 2017 and then over five years — $20 million max per year.

That delay is meant to give the investment a chance to help new businesses grow fast enough to bring in economic benefit to the state, said Mr. Miller. This premise is based on the economic impact reports that BFTP has promoted in Harrisburg for years — in June, the latest argued that for every $1 BFTP spends, another $3.60 is returned to the state.

The state Senate had approved $175 million but that total was lowered to $100 million by the state House in its final form.

That came with passage of House Bill 465, an amendment to the tax code that came in final state budget negotiations at the end of fiscal year 2012 late last month.

State Sen. John Gordner

(R-Montour) — whom Mr. Miller called “instrumental in inserting Innovate PA in the budget negotiations” — merged House Bill 898 and Senate Bill 456 into what became law. State Sen. John Blake (D-Lackawanna) championed the idea out of the Senate Finance Committee. Mr. Miller was eager to also thank state House members Reps. Warren Kampf (R-Chester/Montgomery) and Joe Hackett (R-Delaware).

Why did Innovate PA take such a big cut in negotiations? Mr. Miller points to last year’s passage of sizable tax credits for an ethane facility in western Pennsylvania that took a political toll.

“State revenues this year were [again] very tight with no desire to raise taxes. This made asking for more credits difficult,” said Mr. Miller, who helped lead a lobbying effort including investor and entrepreneurs and professional lobbyist support that PACT funds.

The legislation was introduced in May after failing to gain traction in its 2012 introduction.

This article was originally published on Technically Philly at Technical.ly/Philly.

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

14

18 JULY 2013

2013: YEAR OF THE INNOVATOR CAPITAL SEEKERS

StartupRanking Helps Startups Know Their Score

REGIONSBUSINESS.COM

Benjamin’s Desk Finishes Year Of Accomplishments

BY BRANDON BAKER

H

July’s Philly Tech Meetup Goes Outside The City For Startups The latest batch of startups presenting at the Philly Tech Meetup on Wednesday, July 10, came from the Greater Philadelphia area, Lancaster and Carbondale.

Business: StartupRanking Founders: Jonathan Nieto Contact: contact@startupranking.org

alf a world away, four Peruvian Web developers from early-stage startup StartupRanking have created an online tool that ranks startups all around the globe — including those in Philadelphia.

Granted, these startups aren’t automatically compiled into the list: Upon voluntarily registering, StartupRanking uses an algorithm based on social media activity, link distribution, website views and a variety of other SEO variables to attach an “SR score” ranging from 0 to 100,000 for each participating business.

“StartupRanking, it’s meant to be the site where you can find all of the most important metrics,” said Jonathan Nieto, founder of StartupRanking. “[My friend and I] started out wanting to recognize the best startups in the world, and I didn’t see anything that does that.

We started to retrieve data from social media outlets like Facebook and Twitter, and after putting it in a chart, my friend said, ‘Hey, this is actually pretty cool — we need to share this.’”

After working on it all through May of this year, he said he launched the service and quickly saw its population grow simply through social media sharing, with 1,911 startups currently registered.

Current No. 1 on the company’s breakdown of countries with the most registered startups is the United States with 257 startups, followed closely by Brazil with 172 and India with 156.

Notable in the Top 10 list of startups with the highest SR score is France’s Dailymotion at No. 1, the United States’ Fiverr at No. 3 and Sweden’s Spotify at No. 6. Though the rankings cannot yet be broken down by city or region, Mr. Nieto said that’s in the works, as well as a solution that factors business-to-business and mobile-based companies into the ranking equation.

The team is currently bootstrapping, but Mr. Nieto didn’t rule out the possibility of looking for funding in the future as it prepares to monetize the data it offers through the site. Philadelphia startups interested in registering can do so through www.startupranking.org/startup/ register.

TECH

FACEBOOK.COM/BENJAMINSDESK

DIARY OF A STARTUP

Wrapping up his time as a “Diary” entrant, co-founder Michael Maher and his team at Benjamin’s Desk reflect on the list of accomplishments the coworking space has been able to tout since launching in Summer 2012.

In their words: How quickly a year goes by! It is incredible to think that last summer we were operating our space with just a little more than a dozen members from startups, including Curalate, which has already outgrown two spaces and just opened their own office, as well as Uber, which recently celebrated one year of operation in Philadelphia.

As we approach the one-year mark of becoming a co-working space, we are proud to have been home to more than 100 members and 65 companies. Our 3,000-plus square foot expansion with additional private offices, a work bar, a flex space, a dedicated event space and a roof deck is on schedule to debut by the end of this summer.

We have introduced educational and content strategy programming — in addition to our Tuesday Night Business Club, which kicks off its fall session on September 10. Global organization Startup Grind expanded to Philadelphia and is now hosted exclusively at our space.

We’ve introduced grinders to Wayne Kimmel, founder and managing partner of venture capital firm Artists and Instigators and Gabriel Weinberg, CEO and founder of top five search engine, DuckDuckGo. We have monthly events lined up

beginning in August with Apu Gupta, CEO and founder of Curalate, Bob Moul of Artisan and founder of Indy Hall, Alex Hillman.

We became members of the Sustainable Business Network and continue to commit to both environmental and social sustainable business practices. We are partnering with SBN and Web design and development firm, Yikes, Inc., for a technology forum at our space August 1.

We are proud to be a community of doers and innovators. We are invested in Philadelphia and the co-working movement and are proud to be one space out of several in this city committed to providing quality space and community to our members looking to launch their business, get to their next stage of funding or just looking for a great environment to work from.

We are beyond grateful to everyone who has supported our space whether it has been getting a membership, grabbing a day pass, attending an event or just taking a tour to see what we’re building in Philadelphia.

We have exciting announcements and partnerships coming down the pipeline that you will not want to miss, so make sure to follow us at Facebook.com/benjaminsdesk, @benjaminsdesk on Twitter and on our website at www.benjaminsdesk.com.

DeliveryCrowd, based out of Lancaster, presented its delivery service that recruits people who want to make extra cash as “Crowdies.”

The company’s founders, Fran Gillott and Ryan Keener, said the service lets users find local Crowdies to pick up goods or food and deliver it to their location.

The Crowdie works for DeliveryCrowd as an independent contractor and DeliveryCrowd gets $1.50 from each transaction.

Also presenting was Barley, a web editor and content management system that allows users to edit their website in real time with no back end. Co-founder Colin Devroe said the platform is a flat $18 a month to use by anybody and the Carbondale-based business is not looking to e-commerce anytime soon.

“People willing to pay for this are in the small business area. There’s 13.9 million websites in the United States alone in small business,” Mr. Devroe said. “We have a big enough market to attack.”

Also presenting was RoundCorner, a SalesForce. com-based CRM for nonprofits. Co-founder Dan Lammot is a Villanova alumnus and area resident.

18 JULY 2013

2013: YEAR OF THE INNOVATOR

REGIONSBUSINESS.COM

15

How To Have A Successful PR Campaign

Megan Megale is president and managing director of Megale Public Relations. Ms. Megale has recently launched The Minnow Project, a program aimed at giving small businesses PR training. For more information visit www.

MegalePR.com or call (703) 625-8093.

FLICKR.COM/WSDOT

P

CONTRIBUTE Send comments, letters and essays to feedback@ regionsbusiness.com.

Opinions expressed by guest writers do not necessarily reflect those of Region’s Business.

ublic relations encompasses a variety of different things from media placement and branding to positioning your product so the strategy you implement is effective.

So let’s get right to what makes a successful campaign.

Throughout the course of work with our clients, we have the advantage of fresh perspective. Remember that boy you dated in high school that no one in the family liked?

Now if you asked yourself about him now, likely you would say, “What was I thinking?”

Be open to expert advice on your branding and seek it. If your branding is not spot on, it has to be addressed.

First and foremost, you need to refine your branding. If I asked you in two sentences to describe your brand, could you? I can.

“Megale PR places your brand in the media with two goals, exposure and revenue. Our goal is to elevate the brand to reach maximum longevity and brand awareness.” Most companies are unable to be that succinct, but you need to be.

Sometimes the story you feel is most appealing to your clients is not the story. The most successful public relations firms know when they need to reposition your story to the relevant events trending in the media.

Here’s a great example. An author wants to launch a book and has been very successful on e-books and self-publishing. She never considered herself to be an expert, but in essence she was.

She thought she would just launch her book and schedule a media tour, promoting and signing them.

That week, a story came out on the job numbers. We immediately pitched her to the business media as an expert in e-books and e-publishing in response to the way publishing has been affected by the recession. Her expertise created an interest in her books, which equated into sales.

Social media is another facet of your brand you must engage in. You need to utilize it and learn how it can work for you. Social media needs to be current and relevant.

If you blog, do it religiously. If someone begins to follow your blog and returns more faithfully than you do, they will not continue.

If your website is a commerce site and I go on to order your product only to find it difficult to order, I likely will give up and not return.

Social media is ever changing. You have to stay on top of how consumers are using social media and find your place in it.

A realtor can highlight their “house bargain of the week,” a wedding dress shop can have a Pinterest page that allows previews of dresses before they are in the shop. If consumers are on it, you want to be right there with them.

Here is another interesting illustration.

One of our clients owns a restaurant. They wanted to grow. We suggested they send out a food truck to the NYC streets.

They were wary it might diminish their reputation of excellence. Let’s look at this from another position.

Food trucks will attract an entire new demographic of people that would not go to a restaurant for lunch. The truck is seen on the streets; free exposure of your brand, and at the launch, free samples were given away the first week with wax paper below the sample advertising their Facebook page.

“To find out where we will be tomorrow, log onto our Facebook page.” Two hundred people a day did! You have now captured their email addresses to remarket to them, and gained a segment of followers that likely would never have visited the restaurant at lunch anyway.

Savvy PR. Don’t be afraid to go out of your box. Doing what you have always done may be a conservative approach to your business, but push the envelope once in a while and see if it reaps you some unexpected rewards.

A good example of that is Mike Tyson.

You can’t box forever, so why not transition to Broadway! Longevity of his brand, revenue and lots of buzz about the transition!

The final recommendation we wish to make is this: A public relations firm is masterful at understanding how to appeal to their media partners. You have to trust and communicate with your firm of choice.

PR is much like fishing.

You throw in the worm and hope the fish bites.

We educate the fish on why it is important to eat.

16

18 JULY 2013

2013: YEAR OF THE INNOVATOR

REGIONSBUSINESS.COM

Radnor’s Quintiq Banks On Billion Dollar Future

BY BRANDON BAKER

Victor Allis, CEO of Quintiq, attributes effective talent retention as a key element to the company’s success.

SUBMITTED

best quarter ever in Q4 2009. Just given responsibility.

“People who have been invested last year, it posted revenue growth It’s a story that doesn’t at first of 40 percent — surely attributed in this goal for many, many years read as atypical: Five go-getter to its acquirement of Walmart as … it’s a difficult thing to just recrecomputer programmers from the a client. ate by someone new joining the “When we first started this, I business.”

Netherlands sat down in 1997 to brainstorm a way to organize felt like a 5-year-old who wanted Though originally developed in pivotal day-to-day big-business to play in the big leagues, or this Europe, Quintiq’s headquarters operations through a software basketball player who hoped to has been located in Philadelphia someday make a dunk in the since 2005, now boasting 80 solution.

What is atypical, however, is that NBA — that’s how you think, even employees. The company employs 16 years later, the “meeting of the though it’s really an unrealistic around 700 people worldwide, minds” has resulted in the fourth- feeling,” Mr. Allis said. with 50 of those being research Mr. Allis cited the retaining of and development staff still operatlargest supply-chain optimization talent through the years as a key ing out of the Netherlands. software company in the world.

The Radnor, Pa., based supply factor of continued success for Moving forward, Mr. Allis cited chain optimization business has companies like his. a “2016 plan” to give the business “Our culture, it’s described as an added jolt. performed so well, in fact, that founder and CEO of Quintiq, Vic- something quite special — there’s Quintiq last month launched tor Allis, described 2009 as a mere a lot of freedom,” he said. “People its scalable Version 5.0 optimi“hiccup” in the company’s growth stay with the company, because zation software, and has set its management is homegrown, and sights on becoming a quarterpattern.

It posted three consecutive people who joined the company billion-dollar company in the quarters of losses before having its with an operational role have been next three years.

Inaugural

MARCUM I N N O VATO R of the Year

AWA R DS

November 14, 2013 Is your company a catalyst for change?

Have you pushed the boundaries in your industry?

Is your innovation helping to boost Philadelphia’s growing economy?

Marcum LLP and Region’s Business are in search of Greater Philadelphia’s top innovators, and we want to hear from you.

The Inaugural Marcum Innovator of the Year Awards will honor businesses of all sizes that are pioneering new advancements in the fields of Health/Biotech, Technology, Business Management, and Energy. Three winners will be named in each category, based on company size.

Tell us about your break-through innovation and what makes your company a leader in our region by emailing a 500-word summary to innovation@regionsbusiness.com.

Submissions must be received by September 1, 2013.

Winners will be announced at a Gala Awards Ceremony at the Franklin Institute on November 14, 2013. Don’t miss out on this spectacular opportunity to join our region’s business leaders in recognizing and celebrating the spirit of innovation in and around Philadelphia.

For complete details including nomination criteria, please call Jacki Hallinan at 484.270.2715.

Ben Franklin may have been Philadelphia’s first and most celebrated innovator, but he did not have a corner on the market. Who knows? You could be Philadelphia’s next Innovator of the Year!

For tickets to the event, please call 610-572-7112 ext 102. If you are interested in sponsoring this event, please call Deirdre Affel at 610-572-7136.

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18

STUCK IN UNIONS’ GRASP A GOP-controlled General Assembly and Republican governor wanted to take on liquor privatization and PA’s growing pension debt, but labor groups have so far successfully protected two of their sacred cows

18 JULY 2013

REGIONSBUSINESS.COM

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18 JULY 2013

REGIONSBUSINESS.COM

WE’RE GRATEFUL THAT OUR MEMBERS’ JOBS ARE SECURE FOR NOW, BUT THE FALL IS GOING TO BE HERE QUICK.’ —WENDELL YOUNG, PRESIDENT OF THE UNITED FOOD & CONSUMER WORKERS, LOCAL 1776

Wendell Young IV, left, directs some of the members of his union, the UFCW Local 1776. During the final days of June, there were 50-100 members of the union at the capitol every day, he said.

PENNSYLVANIA INDEPENDENT

BY ERIC BOEHM

O

n a sunny afternoon in early July, Fredrick Anton was finishing his lunch at a popular Harrisburg café.

As Mr. Anton, the CEO of the Pennsylvania Manufacturers Association and a longtime prominent voice in conservative circles of Pennsylvania politics, headed for the door he nearly bumped into Rick Bloomingdale, president of the Pennsylvania AFL-CIO, an umbrella group for a wide range of labor unions.

“Congratulations,” Mr. Anton said, shaking Mr. Bloomingdale’s hand, an acknowledgement of political victories scored by the unions in the recentlycompletely budget season in Harrisburg.

“We’re not done yet,” Mr. Bloomingdale said in return.

It was hard to tell exactly what he meant.

In Pennsylvania and across the nation, the fight between business

groups and their Republican allies against big labor and its Democratic defenders surely will continue. But something in Mr. Bloomingdale’s tone seemed to indicate a deeper significance. At a time when powerful labor unions in other industrialized states were watching their influence wane, the significance of unions in Pennsylvania politics is not done, at least not yet.

June provided a clear example.

The Republican-controlled General Assembly and Republican Gov. Tom Corbett decided early in 2013 they would make a push for two of the unions’ sacred cows during the first half of the year. They launched efforts to privatize the state liquor system, which employs about 5,000 unionized workers, and to overhaul a deeply indebted state pension system by reducing future, unearned pension benefits for state workers and public school teachers.

Though the liquor privatization plan cleared the state House in March

without a single Democratic vote, it never found the necessary support among Senate Republicans after Democrats put up a unified opposition.

The pension reform plan Corbett pitched in February barely made it out of the starting gate before Republicans and Democrats were declaring it dead.

Lawmakers decided it was too heavy of a political lift to slice away at current employees’ benefits, even though doing so is one of the few ways the state can hope to reduce a $47-billion-and-growing unfunded pension obligation.

Neither fight is over by a long shot.

Gov. Corbett and Republican lawmakers vow to keep carrying the torch for pensions and liquor into the fall legislative session that is set to begin in September.

“We’re grateful that our members’ jobs are secure for now, but the fall is going to be here quick,” said Wendell Young, president of the United Food

& Consumer Workers, Local 1776, which represents many of the public employees working in the state liquor stores.

There was no more outspoken opponent of Gov. Corbett’s liquor privatization plan than Mr. Young, who marshaled his yellow-shirted union members around the Capitol with the tenacity of a field general during the final weeks of the liquor debate.

But if relatively small fish like liquor privatization and tinkering with state pension plans cannot be accomplished here, it is hard to believe Pennsylvania will ever see the type of wholesale changes that have been seen elsewhere in the business-labor battle.

In other states, Republican governors and GOP-controlled legislatures have rolled back union privileges and weakened the political power of labor unions in places where it hardly seemed possible just a few years ago.

Wisconsin’s Act 10 of 2011, which limited collective bargaining for unionized public employees, was followed

20

18 JULY 2013

REGIONSBUSINESS.COM

Carpenter’s District Council Leader Named To Convention Center Board

FLICKR.COM/JAUBELE1

BY TOM FERRICK JR.

A

xisPhilly has learned that labor leader Edward Coryell Sr. has been named to the 15-member board that oversees operations at the Pennsylvania Convention Center.

As a board member, Mr. Coryell, head of the 8,000-member Carpenter’s District Council, will ultimately approve new contracts being negotiated with the center’s unions.

In that role, he will come face-toface with the head of the center’s largest union: A fierce negotiator named Edward Coryell Sr. They are one and the same man.

Gregory Fox, chairman of the center’s board of directors, confirmed Mr. Coryell’s appointment Friday, saying: “I welcome Ed Coryell to the board and look forward to working with him to deliver on the economic opportunity that the Center represents.”

Appointments to the board are

divvied up among various political entities, including the mayor, the suburban counties, the governor and the legislature.

Mr. Coryell was appointed to a seat reserved for state Senate Democrats. Officially, it was Senate Minority Leader Jay Costa of Pittsburgh who made the appointment.

In reality, Mr. Coryell’s name was advanced by leaders of the Philadelphia delegation, Sens. Vincent Hughes and Anthony Hardy Williams, according to sources.

Mr. Coryell replaces Pat Gillespie, head of the Building Trades Council, whose term on the board had expired.

While Mr. Fox talked about the opportunities at the center, its minuses currently far outweigh its pluses.

As Axis Philly has reported, the recently expanded center is turning out to be a dud. A $780-million expansion of the center was sup-

posed to help it draw 20 or more large, citywide conventions each year.

Twenty are scheduled this year, but the numbers drop off dramatically after that. Only eight are scheduled in 2016.

The main reason for the decline in bookings? Convention planners have turned sour on the center, mostly due to continuing problems with labor costs and hassles.

There are six unions that work at the center: The riggers, the stagehands, the laborers, the teamsters, and the electricians.

Sources said five of the six perform up to expectations. As one source familiar with center operations put it: “We don’t have a labor problem. We have a Carpenter’s Union problem.”

The head of the carpenter’s contingent at the center is Ed Coryell Jr., son of the labor leader and — now — convention center board member.

That makes Mr. Coryell Sr. not only his father, not only his union president, but one of his bosses. Neither Coryell was available for comment Friday.

In a bid to improve its sagging fortunes, the convention center board recently hired a private management firm to run the center and it began negotiating a new Customer Service Agreement with the unions.

People in the hospitality industry had hoped the negotiations would give the center an opportunity to push back and try for fewer labor hassles, less overtime and lower costs.

Mr. Coryell’s appointment to the board complicates matters, to say the least.

This article was originally published by Axis Philly at AxisPhilly. com.

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18 JULY 2013

REGIONSBUSINESS.COM

by similar legislation in Ohio and by Indiana’s passage of right-to-work legislation, which prevents unions from requiring workers to join their ranks before getting a job in certain industries.

In Pennsylvania, similar proposals have barely gotten out of committee. Even limited measures that are opposed by unions — like finally ending the state monopoly on liquor sales — have come up short. Modest changes to the state’s prevailing wage laws never got close to passing the state House.

Mr. Anton said he would like to see Pennsylvania become a right-to-work state, and would like to see lawmakers pass legislation banning the automatic deduction of union dues from employees’ paychecks, as Michigan did last year. But he’s been fighting those battles for decades with little progress.

“I feel those issues are much more polarizing as far as the unions are concerned, then, for example, privatizing the liquor stores,” Mr. Anton said last week.

This year, Gov. Corbett didn’t even get help from the unions on the one issue where it looked like he might — transportation funding.

In the months leading up to the budget, the AFL-CIO and other buildingtrades unions publicly voiced their support for the governor’s plan to spend $2 billion annually on highways, bridges and mass transit. But when it came time to push the bill through a tricky vote in the state House, the top unions did very little of the behind-the-scenes work that gets big bills across the finish line. Their support was expected to leverage some Democratic votes for the transportation bill, which were necessary if it was going to pass.

While the anti-privatization unions were out in force, the building-trade unions largely sat on their hands during the final weeks of June.

And at least one union that represents liquor store workers — not Mr. Young’s group, but the smaller Independent State Store Union, or ISSU — began lobbying Democrats to oppose transportation funding in the hopes of killing the liquor privatization bill.

Because that’s the way things work in Harrisburg.

The seeming supremacy of the public sector unions over the historically more powerful private sector unions caught some by surprise. Perhaps it shouldn’t have.

Thirty years ago, 70 percent of Pennsylvania’s 1.35 million unionized workers were in the private sector. As manufacturing waned and government grew, that ratio has changed. In 2012, nearly 50 percent of the state’s unionized workers were in the public sector.

In the same period, the overall number of unionized workers has slipped from 1.35 million to fewer than 850,000 — less than 15 percent of all Pennsylvania workers. Still, the state maintains cultural attitudes that are tipped towards the unions in many ways.

“I don’t think the unions — other than the public sector unions — have much power in this state,” Mr. Anton said. “I think it’s because of union traditions in this state; the tradition of unionism in the families of so many people in Pennsylvania.”

For Leo Knepper, executive director of the nonprofit Citizens Alliance of Pennsylvania, the problem is not that Republicans in Pennsylvania are ineffective in taking on unions. It’s that

they are complicit in the union-driven political order of the state.

“There are enough Republicans who are rented by the unions that they can squash anything that is remotely pro-taxpayer,” Leo Knepper said. “The Pennsylvania GOP is not based on ideas or principle, it about maintaining powers.”

His group has made a name for itself in Republican circles by challenging — and defeating — moderate and left-leaning Republican lawmakers. Candidates endorsed by CAP must be willing to forgo a state pension, must support right-to-work legislation and hold other core conservative beliefs.

Mr. Knepper acknowledges that Pennsylvania is a few steps behind other states, where similar campaigns to elect more conservative lawmakers had time to build-up a “back bench” of supporters before governors like Wisconsin’s Scott Walker or Ohio’s John Kasich had the necessary legislative support to embark on a union-busting agenda.

But that does not let Gov. Corbett off the hook, he says.

“In other states, you have guys who showed some leadership at the top level, that’s not something you’re seeing from Tom Corbett and the legislative leaders,” he said.

But Mr. Young, the ever-energetic head of the liquor store employees’ union, sees it differently.

Those anti-union measures in other states were passed “during a very narrow window following a wave of conservative victories” in the 2010 elections, Mr. Young said.

That was, of course, the same year Corbett took office and Republicans seized full control of the Pennsylvania General Assembly.

“I think that wave has broken and rolled back out,” Mr. Young said.

If so, the wave never reached Pennsylvania. The unions here remain high and dry.

Eric Boehm is the bureau chief of Pennsylvania Independent.

This article was originally published at PaIndependent.com.

22

Q&A

18 JULY 2013

REGIONSBUSINESS.COM

You’re familiar with Philadelphia from your days at Penn and your history with the university. Has building a resort in Philadelphia been a long-term goal for you in some sense?

I don’t know if we could say it was a long term goal... Because I was coming back and forth to Penn for 10 years as a trustee and because I had social connections in Philadelphia, I never really lost contact with the community, but my contact was with a limited group of people — one of them was Ed Rendell when he was mayor.

You can appreciate that when Eddie would see me, he would talk about, “We ought to have gaming in Philadelphia. It would help economically with jobs and tourism.” If I was around, I was the hotel developer guy, so the conversation would always come up. I would say, “If it ever comes to pass, Ed, make sure you use your influence to make sure when it’s done that it’s something that has some real positive contribution to the culture of the town. Don’t just have slot machines. Use the casino to enhance the attractiveness of the town.” ... I’ve always been the graduate who went to Las Vegas and built those hotels. So whenever anybody had a discussion about gaming in Pennsylvania, they’d get into it with me when it was just conversation... So, I didn’t dream about building a hotel in Philadelphia. But I was discussing the subject with influential members of the Pennsylvania community and giving them my two cents when it was asked.

A common objection to casinos involves concern about crime. How do you respond to that type of mindset?

Our casinos don’t come with more crime, we don’t have any crime in Wynn, we don’t have those problems... You’ve got three casinos there now in Chester, the Sugarhouse and the Parx. But when we open up, if we’re the one, it’ll be the safest place on the east coast. It’ll be a total island of lights and protection and happiness.

I don’t know what impact has been on crime since they had gaming there, but that has nothing to do with us. And those numbers are what they are... but I’m sure anybody making a crime argument against gaming has to deal with the realities of what’s happened since gaming came to Pennsylvania, versus the positive things that have happened since gaming came. I’d be very surprised if there’s been any uptick in crime because of the Parx or Sugarhouse.

The latest big news is that Wynn Everett, a similarly laid out resort, was approved. What does — or should — that mean for Philadelphia?

Philadelphia is in a pivotal marketplace between New York and Baltimore and New Jersey. Boston is quite a ways away...

Boston is about all those universities... and it’s a city that is culturally integrated like Philadelphia, but it’s a place where I can get international business to come there, I believe. But there’s only one casino in Boston, not four.

So, Philadelphia looks to me like I can leverage New York and Delaware and Baltimore... The depth of the Philadelphia market and its proximity to other metropolitan areas is a big deal to me.

/WynnLasVegas

IS PHILADELPHIA READY FOR A

STEVE WYNN RESORT?

@WynnLasVegas

Steve Wynn is no stranger to building world-class resorts, and he’d like to bring his proven experience to the City of Brotherly Love. As he and five others wait for the Pennsylvania Gaming Board Commission’s decision on who will build, Mr. Wynn chats with Region’s Business about his ties to the city and what the approval of Wynn Everett means for Philadelphia.

Visit RegionsBusiness.com for the complete interview.

WynnPhiladelphia.com

24

FINE ESTATES PREVIEW

18 JULY, 2013

REGIONSBUSINESS.COM

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REAL ESTATE

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R

ecently, many upscale accommodations have sprung up throughout Center City.

Revolutionizing an entire city block at Bainbridge and 15th streets, one developer recently took a chance on 28 luxury townhouses.

Located in the 1400 block of Bainbridge off the Avenue of the Arts neighborhood, this luxury property has dramatically changed the block.

Once filled with auto body shops, this new luxury block of artisan townhouses took five years of development.

With each townhome selling for more than $1 million, a new demographic of residents â&#x20AC;&#x201D; a wealthier and slightly older crowd â&#x20AC;&#x201D; now calls this area home.

Built in three developmental phases, the final phase of these luxury townhomes is almost complete.

The luxury look and feel begins from the exterior of each townhome. The developer constructed the townhouses with metal, brick, and cinderblock for a

820 Brushtown Rd, Gwynedd Valley, PA

84 Norristown Rd, Blue Bell, PA 19422

$3.65 M (6005156)

$965,000 (5962964)

There are a variety of different floor plans for the townhomes that all have four bedrooms and three-and-a-half baths. Notably, the Kenilworth floor plan offers a finished basement with additional storage.

The townhouses also include smart wiring throughout the home for added convenience and less overall wiring. Other optional luxury features include elevators and fireplaces that offer an upscale approach to city living. One of the standout features of the Artisan Townhouse is the rooftop deck. Panoramic city views and a large deck area offer a phenomenal skyline view of downtown Philly.

The Artisan Townhouse Philly DevelARTISANTOWNHOMES.COM opment has revitalized this once-bleak modern city style.

Sub-Zero, and Wolf kitchen appliances, Bainbridge block. This upscale develEach home also offers the option of offering top-of-the-line quality and time- opment is only the beginning of a new iron security gates over the front win- less appeal. Likewise, each townhouse wave of luxury for the Avenue of the Arts dows. Additionally, each townhome offers stone countertops and back- neighborhood.

This article was originally puboffers an oversized two-car garage splashes, as well as custom wood and behind the home. glass cabinetry. Hardwood and stone lished on the Philadelphia Real Estate Custom kitchen designs feature Asko, floors cover the floors.

Blog at PhillyLiving.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 itsâ&#x20AC;&#x2122; 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)

$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

18 JULY 2013

REGIONSBUSINESS.COM

REAL ESTATE

27

Buildings Then & Now:

Still ‘The Grande Dame of Broad Street’

BY SANDY SMITH

P

hiladelphia’s first Ritz-Carlton Hotel may have been located across Broad Street, but for generations, Philadelphians and visitors who really wanted to “put on the Ritz” did so at the hotel on the southwest corner of Broad and Walnut: the Bellevue-Stratford.

The historic hotel traces its origins to 1881, when George C. Boldt, an immigrant from Prussia, and his Philadelphia-born wife Louise Kehrer Boldt opened the Bellevue Hotel on the northwest corner of the intersection.

The hotel quickly gained a national reputation for its top-notch service, fine cuisine — it is believed that Chicken a la King was created at the Bellevue — and uppercrust patrons. The reputation Mr. Boldt established with his Bellevue Hotel was such that in 1890, William Waldorf Astor invited him to become the proprietor of his new Waldorf Hotel in New York.

Meanwhile, in Philadelphia, business was booming at the Bellevue, and to accommodate it, the Boldts acquired Postcard of the Bellevue-Stratford Hotel from 1905. Construction on the The Bellevue as it stands today. the Stratford Hotel across Walnut, addition to the west wing is visible at right.

PHILLYHISTORY.ORG demolished it, and commissioned Three years later, it was reborn as For the next six decades plus, the architects G.W. and W.D. Hewitt to the Fairmont Philadelphia after a Bellevue-Stratford served as the home design the grand French Renaissance year-long, $25-million restoration away from home for elite visitors to structure that now stands on its site. project that included a thorough disPhiladelphia. Every U.S. president Opened in 1904 after two years of from Theodore Roosevelt to Ronald construction, the new hotel was given infection of the ventilation system.

Reagan stayed there, as did several the names of both its predecessors: the The Westin hotel chain bought a 49 visiting European monarchs, includBellevue-Stratford. percent stake in the hotel in 1980 and Accounts of the day didn’t spare the restored the Bellevue-Stratford name, ing Queen Marie of Romania and superlatives: The hotel was described but none of these moves was enough King Carl XVI Gustaf of Sweden. as the most luxurious in America — to restore the hotel to its former A previously unknown microbe, and even the world, for that matter. At prominence. The Bellevue-Stratford however, would fell the hotel in 1976.

1,090 rooms, no other American hotel ceased its existence as a hotel only in That July, the hotel hosted the state matched it in size, and it was filled with 1986. But the building did not die. Its convention of the American Legion; elegant details: light fixtures designed owner, the Richard I. Rubin Company, many who attended fell ill with a

by Thomas Edison, Tiffany and Lalique which had undertaken the 1978-79 pneumonia-like disease that sickened glass decorations and an elliptical stairrestoration, went to work converting 221 guests and killed 34. The mystery it to a mixed-use structure. ailment was quickly dubbed “Legioncase with wrought-iron railing.

The first two floors and basement Once the building opened, Mr. Boldt naire’s disease,” and an investigation became a shopping mall and food began to expand it, bringing its threeafter the outbreak pinned it on a court, and the former hotel rooms story-high west end to the full 19-story bacterium that thrived in hot, damp on the third through 11th floors were height of the rest of the building, places such as the water in the hotel’s converted to offices. expanding the top two floors and addair-conditioning cooling towers. The Floors 12 through 19 were convertbacteria claimed the hotel as a victim ing a second ballroom on the 19th floor. when it closed in November of 1976.

The expansion was completed in 1912. ed into a new, smaller boutique hotel

SANDY SMITH/PHILADELPHIA REAL ESTATE BLOG

featuring a six-story-high atrium created when the center wing was removed from the 12th through 17th floors.

Originally dubbed the Hotel Atop the Bellevue and run by luxury cruise operator Cunard, it was acquired by Hyatt in 1996 and renamed the Park Hyatt at the Bellevue, later shortened to the Hyatt at the Bellevue in 2010.

While the Bellevue no longer holds its singular perch atop Philadelphia’s hospitality pecking order, the building that bears its name remains a vital part of Center City life, with shoppers and the lunch crowd flocking to its lower floors, a host of events filling its thirdfloor grand ballroom, and both visitors and locals patronizing the hotel at the top, whose 19th-floor ballroom has been converted into restaurant XIX. This article was originally published by the Philadelphia Real Estate Blog at PhiladelphiaRealEstate.com.

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18 JULY 2013

REGIONSBUSINESS.COM

OPINION

School Funding Package Won’t Avoid Layoffs

W

Tom Ferrick Jr. is a regular contributor to Axis Philly (AxisPhilly.com), where this column was originally published. Follow him on Twitter: @TFerrick

CONTRIBUTE Send comments, letters and essays to feedback@ regionsbusiness.com.

Opinions expressed by guest writers do not necessarily reflect those of Region’s Business.

hen I was a kid, my sisters went through a period where they liked to stage tea parties. They would lay out toy cups and plates and insist I join them for some nice tea and cake. Only there was no tea and there was no cake. Just empty plates.

Call it a failure of imagination, but I never saw the point of it and I was not the perfect guest.

In life, though, we do not always have the option of saying “This is stupid” and walking away.

Which explains the strangled statements of thanks from city and school district officials for the “financial aid package” offered by Harrisburg last week. The quotes are intentional.

Pennsylvania public school students, parents and teachers converged at the Capitol Rotunda in 2012. KARA NEWHOUSE The district — seeking to plug a $300 million hole in its budget — went to the The mantra of Superintendent William reasons why the district is so short of cash.

Capitol and asked for $120 million. The Hite has been that each party needed to Over our imaginary tea and cakes we could Corbett administration responded by offermake “shared sacrifices” to heal the district. agree that it is due mostly to a retreat of the The city’s share was $60 million; the state’s state and federal government from support ing a wonderful buffet of aid that included $120 million, the teachers union another of basic education. And we could lament that a heavy dose of empty promises and wishful $120 million-plus. fact and shake our heads sadly and perhaps thinking, but little hard cash. To be exact, But, the city’s share fell short because the shed a tear over the unfairness of it. about $2 million. state legislature wouldn’t pass Mayor NutBut, we may have to realize that this is the To summarize, the governor pretended to new normal. That the odds of additional aid help us and we pretended to be grateful. ter’s plan to impose a $2-a-pack cigarette cascading from these sources are remote, Now, it is time to move on to the reality tax in the city. And the state’s plan fell short certainly in the near term. And, finally, we portion of the proceedings. because the state didn’t want to give $120 may be forced to admit that the district we The reality is that the district does not have million. have today — in terms of size and expendianywhere near the money needed to sustain In effect, Hite must now turn to the its day-to-day operations. Even when you union and say: Well, we got screwed by the tures — exceeds the money available. add in the city’s share — $30 million — and city and screwed by the state and so we are This is a structural defect that will only the ifs-ands-and buts package hobbled going to have to screw you even harder! worsen over time. The shortfall will repeat together by the state (a combination of loans Sorry about that! Somehow I don’t think itself —again and again — until the deficit and a one-time infusion of federal money) it the teachers, not at all happy with the idea totals $500 million or even $1 billion. only comes to $125 million. of givebacks to begin with, are going to rally This has to be dealt with today. Given Next year the situation will improve a bit. around that message. the retreat of the state, dealing with it will As part of the state aid package, the governor To raise the money needed, the union be painful and difficult for the remaining has generously decided to allow Philawould have to agree to life-changing concesparties involved. The teachers will have to sacrifice more; the city will have to pay more. delphians to tax themselves. A one-point sions. Even if teachers took a 10 percent The district will have to rethink its definition increase in the sales tax was enacted in 2009 cut in pay and agreed to pay 20 percent of basic services, even when it comes to such to help the city through the Great Recession towards their health benefits, it would not items as busing and policing. was due to expire in June 2014. Corbett has raise enough money to fill the gap. Add There is no alternative. proposed making it permanent, a move that the combo of state and city aid, plus major On second thought, there is one other will yield $120 million a year for the district. concessions by the teachers, and it would choice, and it is a tempting one if you are the Sorry for this blizzard of numbers. These total about $100 million less than the magic district. recipes for imaginary cake can get compli$300 million the district says it needs this You could make some changes, get a few year. cated. But the bottom line is that the district concessions and pretend they are enough.

The hammer Hite does have is the fate of is far from its goal of raising the $300 million Announce that the crisis is over; resume the 3,800 laid off workers, many of whom it says it needs to rescind the 3,800 layoffs it business as usual and move on. In others are PFT members. If the PFT wants them made last month. words, hope that more aid will materialize back, it will have to truly sacrifice. It does It says here in the script that this is the sometime in the future, spend money you not have the option of saying “This is really time when the district turns to the Philadon’t have, let the deficit pile up and don’t stupid,” and walking away because its existdelphia Federation of Teachers and says: worry about the consequences.

Now it is your turn to make sacrifices (read: ing contract with the district expires at the Then sit down and have some tea and concessions). end of August. cakes.

But things went askew in the first two acts.

If we wished, we could discuss all day the

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18 JULY 2013

REGIONSBUSINESS.COM

OPINION COMMENTARY FROM ACROSS THE WEB

A Privatization Bill Protecting Consumers

Break Budget Cycle On Property Tax Reform

As the debate over privatizing Pennsylvania’s antiquated system for selling wine and spirits has occurred, special interests and hyper-partisans have, unfortunately, taken to spreading either misinformation or outright lies about both the legislation that has been presented and my position.

First and foremost our goal was to protect taxpayers by not irresponsibly selling off retail licenses and dismantling the wholesale system for possibly pennies on the dollar — and with the loss of sustainable funding for the state. That’s why my bill has clear direction on closing state stores and requires a two-year study to track privatization changes and prevent a significant negative impact on our state’s economic well-being.

SEN. CHUCK MCILHINNEY, COURIER TIMES,

Property tax reform remains elusive because, frankly, it’s not everyone’s problem. It’s not a problem in wealthy areas; it’s not a problem in less populated school districts where costs of education are much lower.

It’s a problem in this part of the state, affecting homeowners and hurting local economies.It’s a problem for low — and middle-income families and for seniors on fixed incomes. It’s a problem for those who want to buy their first home, and it’s a problem for schools in economically depressed areas. Property tax reform is necessary in Pennsylvania to boost our economy, insure a fair education to our youngest citizens, and offer security to seniors who have worked all their lives to buy and maintain their homes.

16 JULY 2013

DELAWARE COUNTY TIMES EDITORIAL, 16 JULY 2013

Use ACA Delay To Build Better Benefits Moustrap

No Changes, No Medicare

Big business scored a major victory early this month as the Obama administration announced it was delaying a key piece of its healthcare reform agenda until 2015.

The so-called “employer mandate” requiring companies with more than 50 employees to provide coverage — or pay a $2,000 to $3,000 fine if they did not — was one of the pillars of the administration’s healthcare proposal. ...A $2,000 to $3,000 penalty isn’t much compared to the roughly $16,000 cost of the average employer-sponsored health plan.

It’s not hard to imagine some employers skipping on benefits entirely and just accepting the smaller federal fine as the price of dodging a much more expensive healthcare bullet. ...Ideally, employers would get out of the insurance business altogether. The United States is one of the few industrialized nations that links health coverage to employment.

Medicare has two more years to live than previously thought. The program’s trustees recently estimated that the “depletion date for the trust fund is 2026, two years later than was shown in last year’s report.”

But that conclusion is less a vote of confidence than a two-year stay of execution. Absent substantial reform, Medicare will eat up more and more of our nation’s resources even as it provides less and less to beneficiaries.

The report notes that Medicare expenditures will increase faster than earnings or the economy. As a result, the share of gross domestic product the program consumes will jump “from 3.6 percent in 2012 to 6.5 percent by 2087.” And that may be an underestimate. The projections are “based on the trustees’ intermediate set of assumptions,” which include sharp reductions in payments to doctors and other providers that Congress has routinely overruled in the past.

JOHN L. MICEK, THE PATRIOT-NEWS

SALLY C. PIPES, THE PHILADELPHIA INQUIRER

3 JULY 2013

15 JULY 2013

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

Pretty sweet space here at @venturef0rth! Very awesome startup scene vibe in Philly these days. @CHRISMUNNS

@PhilaPACT

“Innovate in PA” Tax Credit Program Will Propel Pennsylvania’s Innovation Economy - thank you @BenFranklinNEP

@UWBuiltEnv

Awesome! Distinguished #BEalum Laurie Olin (BArch ‘61) wins the 2012 National Medal of Arts!

15 JULY 2013

15 JULY 2013

@amishjani

@FOX29Philly

If you’re doing mobile (natively) and not talking to @artisanmobile, you’re leaving big money on the table.

Hillary Clinton tells international gathering of women activists in Bryn Mawr that more women need the courage to lead.

12 JULY 2013

9 JULY 2013

@Josh_Shapiro

@TechnicallyPHL

Finalists in the #HomeRunDerby were each swinging @Chandler_Bats manufactured in #MontcoPa. Coincidence? Don’t think so. #MLBAllStar

Neil Budde is out as CEO of @AxisPhilly data journalism nonprofit, which runs @OpenDataPhilly 11 JULY 2013

15 JULY 2013

@UoPeople

@daniellecohn International travel is the business all destinations crave. #PHL moved from 21st-12th most visited in just 10 years. #DMAI13 @discoverPHL 15 JULY 2013

@EricBoehm87 And, at long last, the #PAbudget is officially complete.

EDITORIAL BOARD CEO and President James D. McDonald Managing Editor Terrence J. Casey Associate Editor Rich Coleman

RT @dougrwalters: Tuition is rising at many of Pennsylvania’s colleges and universities.

My tuition? Still zero at @UoPeople.

10 JULY 2013

@CathNewsLive Philadelphia archdiocese turns over management of 14 schools to independent group 16 JULY 2013

15 JULY 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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18 JULY 2013

REGIONSBUSINESS.COM

BY THE NUMBERS

$73,275

$79,049

Annual pension for former Rep. Mario Civera, R-Delaware, according to a Rock The Capital report detailing pension payments for current and former lawmakers

Annual pension for former Rep. George Hasay, R-Mountain Top

$98,951 $286,118 $127,033 $120,261

Annual pension for former Sen. Allen Kukovich, D-Westmore

Annual pension for former Rep. Frank Oliver, D-Philadelphia

Annual pension for former Sen. Raphael Musto, D-Luzerene

$90,934

Annual pension for former Rep. Merle Phillips, R-Northumberland

66%

Surveyed CFOs who expect their revenues to increase in the second half of 2013, according to the latest CNBC Global CFO Council survey

70%

CFOs who said that total employee compensation in 2014 fiscal year will increase over 2013, net inflation

$88,023

Annual pension for former Sen. Robert Jubelirer, R-Altoona

Annual pension for former Sen. Roger Madigan, R-Towanda

401KCALCULATOR.ORG

$51,651

33%

Median household income in Pennsylvania according to the U.S. Census Bureau

CFOs who reported slight hiring increases in 2013

FLICKR.COM/WALLYG

92.37%

Hawaiian Airlines domestic flights arriving within 14 minutes of schedule in May, according to the U.S. Department of Transportation

86.24%

Delta Airlines domestic flights arriving within 14 minutes of schedule

On-time AirTran Airways domestic flights

82.21% On-time SkyWest domestic flights

89.62%

Alaska Airlines domestic flights arriving within 14 minutes of schedule

83.11%

81.99% FLICKR.COM/WILDHABER

On-time US Airways domestic flights

50%

CFOs who said their margins will increase in the last two quarters of the 2013 fiscal year

33%

CFOs who expect capital expenditures to increase by at least 7 percent year over year in 2014

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