Region's Business 4 October 2012 Edition

VOTER ID PUT ON HOLD FOR THIS YEAR MARCELLUS SHALE: THE BOTTOM LINE

PRIVATE ESTATE SITS ON 14.6 ACRES IN AMBLER

REGION’S BUSINESS

PHILADELPHIA EDITION

A JOURNAL OF BUSINESS AND POLITICS

KEY PRECINCTS WILL DECIDE WHO WINS HERE NOV. 6 Swing state or not, victory in Pennsylvania will come down to a few isolated spots.

Meanwhile, a congressional race in the suburbs has gained national attention.

FIRST ROUND’S ARRIVAL BOOSTS CITY’S STARTUP CLIMATE BREAK YOUR WAY TO SUCCESS RegionsBusiness.com $2.00 U.S.

4 OCTOBER 2012

4 OCTOBER 2012

REGIONSBUSINESS.COM

CONTENTS

3

Can We Swing?

34

Most polls show Barack Obama with a comfortable lead in Pennsylvania, but experts are warning against flipping the state blue in November.

!

Marcellus Shale Hits Bottom Lines in Our Area

24

Several organizations are already taking advantage of the state’s natural gas boom to lower expenses. !

1900 Arch Street

32

First Round Capital’s ‘Lifestyle’ Decision

The reason for the highprofile tech firm’s move to the city? Business was part of it, but it was mostly a lifestyle decision. !

19

Debates Won’t Mean Much

1900 Arch Street is a premier mixed use development project in the Logan Square section of Philadelphia.

Scheduled for completion in Fall of 2013, the project will feature 280 luxury apartments, private parking, and 16,333 SF of ground floor retail.

! Despite all the hype, the presidential and vice presidential debates will have little impact on November’s results.

Battle In The ‘Burbs Once again, there’s a battle in the 8th District, which has gained national attention.

!

30 Two Penn Center-Suburban Station

REGION’S BUSINESS Independence Media Corp.

600 West Germantown Pike, Suite 400 Plymouth Meeting, PA 19462 610.940.1656 | feedback@regionsbusiness.com Online: RegionsBusiness.com To subscribe: 877.700.6245 or 215.627.6397 Circulation and Distribution managed by CCN - www.ccndelivery.com

PRESIDENT AND PUBLISHER James D. McDonald EDITORIAL DIRECTOR Karl M. Smith

Located just steps from City Hall, Suburban Station features some of the premier retail locations in the city.

Availabilities exist from 900-2,700 SF with neighboring tenants including McDonald’s, Dunkin Donuts, Au Bon Pain, and TD Bank.

ASSOCIATE EDITOR Terrence Casey CONTENT TEAM Brandon Baker, Emily DiCicco, Victoria

Marchiony CONTRIBUTORS Elissa Vallano, Chris Weeden, Timothy

Holwick, Rebecca Savedow, Don Lee ADVERTISING DIRECTOR Larry Smallacombe ACCOUNT MANAGER Charles Coltan

© Copyright 2012 Independence Media Corp. All rights reserved. Use of material within without express permission of publisher is prohibited.

Region’s Business is published weekly on Thursdays and online at www.RegionsBusiness.com.

The publisher makes no representations or warranties regarding the advertising appearing in its pages or its websites.

www.precisionrg.com 1429 Walnut Street Suite 1200 Philadelphia, PA 19102 866-Walnut 4

4

4 OCTOBER 2012

REGIONSBUSINESS.COM

EDITOR’S DESK

Win or Lose, Romney Campaign Failed

Karl Smith is the Editorial Director for Region’s Business.

You can contact him at ksmith@regionsbusiness.com

As a kid, there weren’t many times I was the first one picked for a team. And I’m certain I wasn’t at the top of the list when the girls were considering dates for the high school dances.

But I am coveted by pollsters and politicians, that’s for sure.

Why? Simple. I am the oftendiscussed but hard to find swing voter, an independent.

So you can blame people like me for a lot of the nonsense regarding this year’s presidential election. All this fuss is about people like me.

I have long given up on our country’s political parties, instead studying individuals in each race, typically looking for the lesser of two evils. As a political observer, I tend to see most of these contests as a combination of melodramatic theater and amateur sporting events.

It’s through that lens that I’ve watched the presidential race unfold and I have to admit, I lost the plot early on and have been bewildered and bemused over the past few weeks.

I don’t put full stock into the endless flow of poll data that seems to excite the radio and television pundits to new levels of rabid gibberish, but the theme seems pretty clear - either Mitt Romney is behind or he and President Barack Obama are locked in a race to the finish.

How either of the scenarios can be possible is beyond me, because I’ve seen this setup before and this is not how it panned out.

In the previous presentation of this multi-act play, we had a firstterm president presiding over a sputtering economy - certainly in better shape than the current

BUSINESS INTELLIGENCE IS INTELLIGENT BUSINESS. Application Development Key Performance Indicators Dashboards & Workflow Visit www.PickITS.com/appdev to learn more.

Philadelphia s New York

www.PickITS.com s 215.886.7166

edition, but sputtering nonetheless. The challenger took a simple approach, aggressively attacking the president’s record on the economy and, in fact, skillfully redirecting practically every discussion back to the economy.

The players were George H. W. Bush and Bill Clinton, of course, and we all know the end result.

With Ross Perot and his pie charts earning almost 20 percent of the vote, Mr. Clinton ousted the sitting president, edging him in the popular vote by almost six points and crushing him in the electoral vote, 370 to 168.

The economy was sliding under President Bush and there was that little “no new taxes” promise that was, well, undone. But in no way was the economy near a repeat of The Great Depression and the country wasn’t mired neck-deep

in two far-flung wars, let alone all the other baggage President Obama brings to the table.

How can it be that Mr. Romney isn’t leading every poll by double figures? How is it that this race is even in doubt with a month remaining? How hard would it have been to tape Mr. Clinton’s “It’s the economy, stupid” sign in the Romney campaign HQ? Poll numbers aside, Mr. Romney has a chance to win. After all, a month is an eternity in an election cycle that lasts more than three years. Should he win, though, it will have to go down as one of the weakest victories ever.

On paper, this game should have been over a long time ago.

But I guess the sports pundits got it right - that’s why they play the games on the field and not on paper.

4 OCTOBER 2012

REGIONSBUSINESS.COM

WEEKLY BRIEFING

TAXES

ATLANTIC CITY

PENN STATE

Controller: August Sales Tax Collection Almost Highest

Do Anything, Do Everything Campaign Begins

Amid Sandusky Scandal, Penn State Football Sets Fundraising Record With Ticket Sales

The City Controller’s latest economic report has cited August as the secondhighest-ever month of Philadelphia sales tax collection, marking 10 consecutive months that the collection has been at or above collections for the year prior.

Sales tax revenues came in at $23.7 million, just narrowly missing February’s tax collection of $23.9 million.The report also targets expected total sales tax revenue for the fiscal year of 2013 as $260 million.

Rounding out the report is less impressive data indicating that Philadelphia’s poverty rate has increased to 28.4 percent from 26.7 percent in August, reaffirming the city’s status as the most impoverished city of the 10 major urban centers in the United States.

The $6 million “Do Anything, Do Everything, Do AC” fall tourism campaign has officially been launched by the Atlantic City Alliance in an effort to highlight the city’s non-gambling tourist attractions.

The campaign, which originally launched in April and intends to run over a five-year period while spending $150 million, will air the campaign’s fall commercial “Do Change” roughly 1,300 times in the Greater Philadelphia region as well as in New York and Baltimore.

The campaign celebrated its first year this past weekend by offering boardwalk-goers free coffee.

GOTTA-HAVE-IT GADGET

Nook HD Looking to bring the battle to Amazon’s home turf, Barnes and Noble will soon roll out its “Kindle killer” in the form of the Nook HD ($199-269), which features what many critics agree is the best non-iPad screen

display of the tablet bunch.

New integrated software allows for user profiles that personalizes the book- and magazine-hunting process, giving avid readers extra incentive to invest in the bookseller’s latest.

ENERGY

LAW

PECO: Undercollection Cause of Rate Increase

Comcast Lawsuit to Supreme Court

A reported undercollection of revenue for PECO in the second quarter has sparked the electricity company to increase its residential rate by 21.5 percent, effective Monday.

The rise is reflected through an increase of per kilowatt hour from 8.64 cents to 10.5 cents.

The company said the increase will not impact the 30 percent of customers who have switched to alternative suppliers.

The increase will likely amplify a growing trend of customers shopping for new, fixedrate, often green energy suppliers, as enumerated for consumers on the Pennsylvania Public Utility Commission’s website.

A decision by a federal judge in Philadelphia not to enforce a settlement negotiated between plaintiffs and Comcast lawyers in an ongoing antitrust suit has secured a seat before the Supreme Court.

The court will hear the case, which involves upward of one million Comcast customers, on November 5. The two parties had tentatively agreed in June to settle the case before the corporation filed to be heard by the Supreme Court on June 25.

Details have not been public.

5

Penn State quarterback Matt McGloin (11) led the Nittany Lions to a 34-7 victory over Navy on September 15 at Beaver Stadium for PSU’s first win of the season.

(PENN STATE LIVE)

Morale and prestige may be at a low for Penn State University, but its revenues continue to climb just fine.

Despite a five-year, $60 million fine and large-scale flak following an investigation around Jerry Sandusky’s child molestation charges, the school reported sales of 68,000 season tickets — on par with last year’s number — and sold-out its 60 luxury suites at its Beaver Stadium.

Donations contributed alongside ticket sales are said to have reached a new high for the school, ascending to $17.5 million this season.

“The NCAA put a cage around us, it’s just a fact,” said acting Athletic Director David Joyner in an interview with Bloomberg.

“What I like to say is when somebody puts a cage around us, you have to become cage fighters. And that’s what we’re doing.”

JOBS

Campbell Soup Closing Plants, Cutting 700 Jobs Acting as a result of canned soup sales declining by 13 percent in the last decade, Campbell Soup will close two of its four major U.S. plants and cut more than 700 jobs as a means of staying afloat.

Adding to the cuts is the closing of a spice plant in South Plainfield, N.J., expected to

result in the loss of 27 employees as the company shifts spice production to a Milwaukee plant.

Post-cuts, the Camden, N.J.based company is expected to save $30 million starting in the fiscal year of 2016, despite spending $27 million in capital spending to enact the closing of the plants.

Devereux Foundation to Lay Off 153 Employees A published notice of layoffs in the state Department of Labor and Industry’s Worker Adjustment and Retraining Notification Act listing confirms that the Devereux Foundation will lay off 153 workers in

its Willistown facility this December.

The layoffs will result in the end of a program at the Children’s Behavioral Health Center that residentially treated 50 adolescents, with total layoffs amounting

125 full-time direct support workers and an unspecified number of part-time employees.

Devereux employs 1,400 people across the country, with most in southeastern Pennsylvania.

ROLLS-ROYCE DROPHEAD COUPÉ SERIES II

The All New Bentley Continental GT V-8 NOW TAKING ORDERS.

F.C. KERBECK Authorized Rolls-Royce Motor Cars Dealer 100 Route 73, Palmyra, NJ 08065 For information call 856 303 1000 visit www.rolls-roycemotorcars-fckerbeck.com

BENTLEY PALMYRA NEW JERSEY F.C. KERBECK 100 ROUTE 73 NORTH PALMYRA, NJ 08065 Tel: 856 829 8200 www.palmyra.bentleymotors.com

BENTLEY PALMYRA NEW JERSEY

The name ‘Bentley’ and the ‘B’ in wings device are registered trademarks. © 2011 Bentley Motors, Inc.

THE ALL NEW ASTON MARTIN VANQUISH NOW TAKING ORDERS.

F.C. KERBECK ASTON MARTIN 100 Route 73, Palmyra, NJ 08065 For information call 888 738 0014 visit www.fckerbeck.com

A dynamic experience of unparalleled intensity.

Lamborghini Palmyra NJ F.C. KERBECK 100 Route 73, Palmyra, NJ 08065 For information call 888- 738-0014 visit www.fckerbeck.com

A FAMILY OF WORLD-CLASS PERFORMERS. ON STAGE AT

F.C. KERBECK

THE MASERATI GRANTURISMO, GRANTURISMO CONVERTIBLE & QUATTROPORTE. The Maserati family of award-winning automobiles has a model tailored to reflect your individuality and to inspire your passion for driving like no other car in the world. Our GranTurismo range of high performance four-seat, two-door coupés and convertibles includes the limited-production MC and exhilarating Convertible Sport. The Quattroporte range of luxury sport sedans redefines the breed with the Quattroporte S and exclusive Sport GT S. Every Maserati is a masterpiece of design and engineering, and each is powered by a competition-proven V8 engine to remind you— and everyone on the road—that you are driving an automobile like no other. The Maserati family starts at $123,000 *.

Passion runs in the family.

LEARN MORE: www.fckerbeck.com SCHEDULE YOUR TEST DRIVE: 888.738.0014 FOLLOW US:

Pantone Process Black C

F.C. KERBECK 100 Route 73, Palmyra, NJ 08065

MASERATI GRANTURISMO S BASE MSRP $123,000, NOT INCLUDING GAS GUZZLER TAX, DEALER PREP AND TRANSPORTATION. DEALER PRICE MAY VARY. TAXES, TITLE AND REGISTRATION FEES NOT INCLUDED. ©2011 MASERATI NORTH AMERICA, INC. ALL RIGHTS RESERVED. MASERATI AND THE TRIDENT LOGO ARE REGISTERED TRADEMARKS OF MASERATI SPA.Pantone MASERATI URGES YOU TO OBEY ALL POSTED SPEED LIMITS. 485 C / Process Black C Argento a caldo / Silver hot-stamping

8

4 OCTOBER 2012

REGIONSBUSINESS.COM

WEEKLY BRIEFING FISHING INDUSTRY

JOBS

CemcoLift Plans To Eliminate 96 Hatfield Jobs

WHO TO FOLLOW

@GdnSmallBiz The Guardian Small Business Network “In one hour our experts will be online to answer all your questions about #smallbiz accountancy” -- October 3, 2012 ---------------

@ StartUpDonut Free resources for business startups.

“Crowd funding: a realistic alternative to bank lending? http://bit.ly/u1n8Sh ” -- September 19, 2012 ---------------

@ deniseoberry Passionate about small business success, remember cash flow is king in your business!

“Extra links on Google = Another Reason for Small Business to Use Google Plus” -- September 29, 2012 ---------------

@ducttape Small business marketing consultant, speaker and author of Duct Tape Marketing, The Referral Engine and soon to be released — The Commitment Engine.

“Work Is Worth It When Clarity is Strategy, Culture is Clarity Amplified and Community is the Natural Outcome of Clarity” -- September 30, 2012

Cape May Port Remains Valuable Due in part to escalating scallop prices that make up for declining catches, the Cape May fishing port remains the second-most valuable port on the East Coast, according to a report from the National Marine Fisheries Service.

The Lower Township- and Wildwood-inclusive port reportedly made $103 million in 2011, a rise of more than $20 million

from its $81 million intake in the year prior.

Nationally, Cape May is ranked fifth.

Scallop prices have risen in price from $7.92 per pound in 2010 to $10 per pound, making the port increasingly lucrative as scallops were reported as the docks’ primary catch, taking in 40 million pounds of fish overall.

RETAIL

Urban Outfitters Drops Traditional Cash Registers For the economical purposes of saving money and space, Urban Outfitters will switch from standard pointof-sale cash registers to Apple iPads.

The company will also equip its salespeople with POS-ready iPod Touch devices that can also access store inventory numbers.

CIO Calvin Hollinger, representing the company during an analyst day presentation last week, said that it had already ordered its last cash register, touting the low cost of the iPad as “$1,000 fully installed.”

MUST-HAVE APP

NBC Politics The NBC Politics app, for iOS devices, has the latest information on the upcoming presidential election, with photos, maps and analysis.

On November 6, the app will provide users with real-time updates on the race.

My Meetings My Meetings ($15.99) works with your iPhone or iPad calendar and contact list to arrange and manage business meetings.

It allows the busy manager or executive to schedule meetings, record notes, and send information to attendees.

A filed notice by CemcoLift Inc. with the Pennsylvania Department of Labor and Industry indicates that the company will eliminate 96 employees and close its Hatfield Township plant next month.

A statement by the company said that Otis Elevator Co., parent company of CemcoLift, made the decision to sell the business to Minnesota Elevator Inc. in an effort to shift company focus to engineering and manufacturing.

CemcoLift, which has been in the business of manufacturing elevator components for just shy of a century, was acquired by Otis Elevator Co. in 1999 and moved its operations to Township Line Road in 2001.

Constitution Center Eyes Layoffs Elevated expectations for the Bruce Springsteen exhibit at the National Constitution Center fell flat in producing revenue, instead fueling a deficit and resulting in cost-cutting measures to make up for the disappointment.

A 2013 budget on the table would eliminate 17 staff members of the center, accounting for 10 percent of its total employees.

Supplementing the job cuts is a reduction in advertising spending by $1 million, down to $2.5 million as a part of total expenditures of $13.8 million.

Toys ‘R’ Us Reveals Seasonal Hiring Plans Toys ‘R’ Us will usher in the holiday season by giving the gift of employment to 1,500 seasonal workers in the Philadelphia area.

The city’s new hires are a fraction of the 45,000 total workers to be hired for the season, an increase of 5,000 when compared to last year’s holiday workforce.

The company currently maintains 875 stores in the U.S.

The toy retailer, which is based in Wayne, N.J., recently opened a renovated Toys ‘R’ Us in Cherry Hill, N.J. that now includes an integrated Babies ‘R’ Us store.

EDUCATION

Beneficial Bank Launches Challenge For Schools to Compete for Grants Beneficial Bank and the Beneficial Foundation on October 1 launched the Second Annual Beneficial Foundation School Challenge, which gives schools the opportunity to compete for education-improving grants.

The foundation will award an unspecified number of $500, $1,000 and $5,000 grants, totaling $13,000.

The cut-off date for submissions by regional schools is December 1, with 10 finalist schools to be announced by early 2013.

A Cresa tenant advisor talks business.

Before we talk space, we talk business. Whatever you need space for, we want to know about the business goal behind it. We only represent tenants. We understand the business needs of tenants, and we take an integrated approach to addressing them. You can count on us to be shrewd in negotiation, rigorous in execution, and aligned—at every stage—with your business.

The Tenant’s Advantage

Cresa Philadelphia 610.825.3939 cresa.com/philadelphia One West First Avenue, Suite 201, Conshohocken, PA 19428

10

4 OCTOBER 2012

REGIONSBUSINESS.COM

WEEKLY BRIEFING

BUSINESS PROFILE

LAW

WebiMax Leads Garden State in Modern Tactics

Bar Association Leader Announces Retirement

Joining the ranks of the Inc. 500 as the leading privatelyheld company from New Jersey, WebiMax is a Mount Laurel, N.J.-based advertising agency focused on 21st-century tactics like search engine optimization, social media marketing and paid search.

Though founded primarily as a search engine optimization company, WebiMax has grown to handle e-commerce, reputation management, Web design and analytics reporting, demonstrating three-year growth of 5,651 percent as a result.

The company currently stands at No. 7 in its industry with reported revenue of $7.1 million in 2011, up from just $123,000 in 2008. Prior to its current shtick at No. 37 on the

Inc. 500 chart the company was included in a Forbes list compiled late last year of “most promising” up-and-coming companies.

WebiMax was founded in 2008 by Kenneth C. Wisnefski, a self-described online marketing expert who previously served as founder and CEO of VendorSeek.com, a startup

organization that ballooned to be a $5 million per year company through the course of a mere five years.

Mr. Wisnefski is currently a regular on CNN Radio and occasional guest on MSNBC programming, in addition being featured as a guest columnist in a variety of national magazines.

Executive Director of the Philadelphia Bar Association Kenneth Shear has announced his intention to retire at the end of 2013, according to a statement issued at the association’s board of governors meeting held last week.

Mr. Shear has served in that role since 1976 and has been with the association for 37 years.

“The association remains a model for Shear many other associations and has greatly benefitted from Ken’s experience,” John Savoth, association chancellor, said. “He has totally committed his intelligence, energy and good judgment to the well-being of this association, and has won the respect and admiration of those who have had the good fortune to work for and with him.”

Philadelphia Law Salaries Among Lowest Philadelphia is home to some of the lowest-paid law firm partners among surveyed major metropolitan cities.

The survey, by recruiting firm Major Lindsey & Africa and ALM Legal Intelligence and based on responses from 2,228 partners, found the average compensation for a Philadelphia law firm partner was $478,000.

Philadelphia partners suffered from the sharpest decrease in compensation — 10 percent — when compared to similar 2010 survey results.

Just behind Philadelphia’s was Los Angeles, which saw partner compensation drop by 8 percent.

,1),1,7, * ; 6HGDQ /HDVH IRU PR IRU PR N PLOHV \U ,QLัฒDO 3D\PHQW 'RZQ 3D\PHQW 6HFXULัป 'HSRVLW

_______________________________________________________________________________________ | | | | | | | | | | | |

,QักQLัด of Ardmore

,QักQLัด of West Chester

306 W. Lancaster Ave., Ardmore, PA

715 Autopark Blvd., West Chester, PA

610-649-3600

InfinitiofArdmore.com

610-696-6700

InfinitiofWestChester.com

* Excludes taxes, tags, title, license & options. For well qualified buyers. Two or more vehicles available. Expires 10/01/2012

12

4 OCTOBER 2012

REGIONSBUSINESS.COM

WEEKLY BRIEFING

DEVELOPMENT

GAMING

EXECUTIVE BOOKSHELF

Developer Eyes Divine Lorraine Hotel

Resorts, Mohegan Launch Linked Casinos Program

Drive Business Through Blogs

An active developer in North Philadelphia has purchased the Divine Lorraine Hotel with a plan of converting it into rental apartments, The Philadelphia Inquirer reported.

The historic building located at 699 North Broad Street was sold to Eric Blumenfeld at a sheriff ’s sale after he submitted the only bid.

Mr. Blumenfeld told the Inquirer that he would begin work immediately to plan on converting the 11-story structure into rental apartments by next year.

The hotel has been a keystone in revitalization plans for the north end of the city, between City Hall and Temple University.

Perspective. Delivered.

To subscribe, call 877.700.6245 or 215.627.6397

REGION’S BUSINESS A JOURNAL OF BUSINESS & POLITICS

(VANDALOG)

Resorts Casino Hotel and its new managers, the Mohegan Indian tribe, have launched a program that allows gamblers to use reward points at any of the three destinations, the Associated Press reported.

Resorts is located in Atlantic City. The Mohegan-owned casinos are in Connecticut (Mohegan Sun) and Pennsylvania (Mohegan sun at Pocono Downs).

"Our approach has always been focused on the guest experience and ensuring that each time a guest experiences one of our exciting destinations, they leave wanting to come back and do it all over again," said Mitchell Etess, CEO of the Mohegan Tribal Gaming Authority.

Blogging has evolved into a medium meant for more than just narcissistic rants about your burnt morning cup of coffee. According to Eric Butow and his co-writer Rebecca Bollwitt, blogging is about business.

In the updated edition of “Blogging to Drive Business,” they offer advice on how to turn your blog into a branding tool for your business using oftoverlooked and underused Web 3.0 tools, in addition to explaining why blogs can be a unique asset for a company looking to better understand and interact with its consumers.

4 OCTOBER 2012

REGIONSBUSINESS.COM

DEALBOOK HIGHER EDUCATION

13

GROCERIES

DelVal College Constructing Science Center

Lehigh University Student Housing Site Purchased

Delaware Valley College in Doylestown began construction on a 41,000-square-foot life sciences center.

The $15 million building will feature a conference center, labs, classrooms, a 450-seat auditorium and other facilities.

Construction is funded in part by a $3.2 million grant from the state.

The project is scheduled to be completed in the spring of 2014.

New York real estate firm Salmanson Capital recently purchased an off-campus student housing portfolio within block of Lehigh University in Bethlehem, Pa., for $15.2 million from an undisclosed owner.

The portfolio, which included 50 properties with 108 units and 394 beds will be rebranded as Campus Hill Apartments and undergo $2 million in upgrades.

The acquisition was funded with a 10-year CMBS fixed-rate loan with Citibank, arranged by Ackman Ziff.

FreshDirect Begins Grocery Delivery In Philadelphia FreshDirect, a premium online fresh food and grocery retailer, opened its virtual store front to eight Center City Philadelphia zip codes, including the Rittenhouse, Logan Square, Washington Square, Old City, Society Hill, Bella Vista, Queen’s Village, Graduate Hospital, Grey’s Ferry, Fairmount, Art Museum, Spring Garden and Northern Liberties neighborhoods.

The company delivers locally sourced farm-fresh groceries for a $30 minimum order and a $6.99-$8.99 delivery fee.

Residents of the initial eight zip codes will be eligible to place orders beginning October 1.

Service is expected to expand throughout the Greater Philadelphia region in 2013.

PHILADELPHIA ZOO

HEALTH CARE

HOUSING

Zoo Breaks Ground on Garage

Lower Bucks Hospital Sale Approved, Prime Vows to Retain 950 Employees

Apartment Complex Traded for $1.63M

The Philadelphia Zoo broke ground last week on the Centennial District Intermodal Transportation Center Project at 34th Street, Zoo Drive and Girard Avenue.

The $24 million, fourstory, 683-space parking garage will be financed through federal, state, city and zoo contributions.

The 30-unit property known as Park Place Apartments in Northeast Philadelphia traded for $1.63 million within two weeks of being put on the market in a sale arranged by Marcus & Millichap between an undisclosed buyer and seller.

Roofing Company Purchases Condo

(B. KRIST FOR GPTMC)

PHARMACEUTICAL

Colby Pharmaceutical Buys Conshohocken’s Othera Colby Pharmaceutical Co. has acquired the Conshohocken-based biopharmaceutical company Othera Pharmaceuticals in a deal for which financial terms were not disclosed.

Colby has offices in Madison, Wisc., and San Jose, Calif.

Teva Buys Rights to Drug Israel-based Teva Pharmaceuticals, which has its North American headquarters in North Wales, Pa., has purchased the rights to an experimental drug for Huntington’s disease from Denmark’s NeuroSearch for $26 million, according to the Associated Press.

A Bucks County judge recently approved Prime Healthcare Service Inc.’s purchase of the failing Lower Bucks Hospital.

At an Orphans’ Court hearing in Doylestown, hospital chief executive Albert Mezzaroba testified saying that Lower Bucks had only $2 million cash in the bank and would be forced to close immediately if the sale were rejected.

Lower Bucks ran into cash-flow difficulties following a two-year bankruptcy and already had a $3 million line of credit provided by Prime, the California for-profit that is now in the process of purchasing the hospital.

Prime owns 16 hospitals, including Roxborough Memorial

Hospital in Philadelphia, which it acquired in February of this year.

Prime will pay liabilities Lower Bucks agreed to in its bankruptcy reorganization plan, including a $1.2 million note to unsecured creditors, a $2 million mortgage on a surgery center and $500,000 owed on a $1 million note to Pension Benefit Guaranty Corp.

Prime has agreed to hire the hospital’s 950 employees and maintain union contracts with nurses and maintenance workers.

It has also committed to operate Lower Bucks as a full-service hospital for at least five years, and invest $10 million in the hospital over that period.

Completion of the sale is expected next week.

Local roofing company Gueriera Property Group purchased a 2,800-square-foot flex condominium in West Chester, Pa. for $330,875 from Piper & Associates. The sale was negotiated between representatives from Lieberman Earley & Co. and Swope Lees Commercial Real Estate on behalf of the seller and buyer respectively.

Construction Begins on Chalfont Complex Last week, BPG Properties Ltd.’s multifamily affiliate, Madison Apartment Group, began construction on Madison New Britain, a 12-building apartment complex in Chalfont, PA. The 232-unit project is slated for completion in the spring of 2013.

,QѡQLѴ ); $:' /HDVH IRU PR IRU 0RQWKV N PLOHV \U ,QLѲDO 3D\PHQW 'RZQ 3D\PHQW 6HFXULѻ 'HSRVLW

______________________________________ | ,QџQLѲ of West Chester ,QџQLѲ of Ardmore | | 715 Autopark Blvd., West Chester, PA 306 W. Lancaster Ave., Ardmore, PA | | 610-649-3600 610-696-6700 | InfinitiofArdmore.com | InfinitiofWestChester.com * Excludes taxes, tags, title, license & options. For well qualified buyers. Two or more vehicles available. Expires 10/01/2012

4 OCTOBER 2012

REGIONSBUSINESS.COM

DEALBOOK

15

EDUCATION

ENVIRONMENTAL EDUCATION

CULINARY EDUCATION

Green Tree School Breaks Ground on $11M Building

DCNR Breaks Ground on Environmental Education Center

Hamilton Culinary Center Opens

Green Tree School, which serves special needs children, broke ground on an $11 million, 60,000-square-foot facility at 1196 East Washington Lane in Philadelphia this past week.

The new space will allow the school to consolidate from four buildings into two locations by October 2013.

Department of Conservation and Natural Resources (DCNR) Secretary Richard Allen broke ground in late September on a new Jacobsburg Environmental Education Center in Belfast, Northampton County.

The 9,300 squarefoot center will feaAllen ture education space for outreach programming, offices for center staff and public restrooms for park visitors. It is expected to generate a 22 percent increase in visitor population to the area by 2030.

The Department of General Services and Dillsburg, Pa.-based general contractor Lobar Inc., will oversee the $4.8 million project, which is scheduled for completion by August 2013.

HOTELS

Marriott Construction to Begin This Month This month, construction will begin on a new 129-room Marriott Courtyard Rowan Boulevard at Route 322 in Glassboro, N.J.

The Dorrance H. Hamilton Center for Culinary Enterprises at the Enterprise Center, in Philadelphia has officially opened.

The 13,000-square-foot culinary incubator occupies a former grocery store and features commercial kitchens, baking facilities and retail space.

HEALTH CARE

Good Shepherd Opens 11th Rehab Clinic Good Shepherd Penn Partners opened its 11th Penn Therapy & Fitness outpatient rehabilitation clinic on October 1 on the campus of Penn Medicine’s Perelman Center for Advanced Medicine in West Philadelphia.

The facility will provide outpatient physical and occupational therapy for patients follow-

ing treatment at Penn’s Abramson Cancer Center.

Good Shepherd is a joint venture established by Allentown-based Good Shepherd Rehabilitation Network and Philadelphiabased University of Pennsylvania Health System.

Email dealbook news tips to Victoria Marchiony at vmarchiony@regionsbusiness.com

The Path to Better Painting™ Always starts with CertaPro Painters®

CertaPro Painters® really is distinctively different – uniquely suited to paint and refurbish commercial properties. Staffed with people who know that a great quality paint job includes outstanding customer care. Services and safety that are second to none. With procedures and reasonable pricing that stand head and shoulders above anything that you’ve likely experienced before.

Residential. Commerical. Interior. Exterior.

1-800-462-3782

www.certapro.com

4 OCTOBER 2012

REGIONSBUSINESS.COM

ELECTIONS POLL ROUNDUP

President - PA Voters President Barack Obama (D): 47 percent Governor Mitt Romney (R): 42 percent Most polls have shown President Obama with a significant lead over Governor Romney in Pennsylvania, except for a recent GOP-backed poll that found Gov. Romney to be just one point behind the incumbent.

(THE PITTSBURGH TRIBUNE REVIEW)

Pennsylvania Senate Senator Bob Casey (D): 46 percent Tom Smith (R): 41 percent These results are similar to those found by a statewide poll commissioned by the PA GOP last week. In that poll, 45 percent Casey of voters were for Senator Casey and 42 percent were for Mr. Smith.

(THE PITTSBURGH TRIBUNE REVIEW)

New Jersey Senate Senator Robert Menendez (D): 49 percent NJ Senator Joe Kyrillos (R): 34 percent A poll release from Farleigh Dickinson last week also gave Senator Menendez a significant lead, 50 to 36, over Senator Kyrillos.

(MONMOUTH REVIEW)

Pennsylvania Attorney General Kathleen Kane (D): 33 percent David Freed (R): 27 percent This race is still up for grabs, as these figures are more narrow than an August Philadelphia Kane Inquirer poll that gave Ms. Kane an 11-point lead.

(ALLENTOWN MORNING CALL)

New Jersey Governor Chris Christie Approval: 53 percent Disapproval: 35 percent (MONMOUTH UNIVERSITY)

17

No ID Required in 2012 Election, Judge Rules HARRISBURG — Pennsylvania voters who don’t have proper identification have until the next primary election to get a photo ID. But how the state plans to unfold this effort is unclear at this time, while the law’s biggest challengers say they’re on a mission to educate voters.

The controversial voter ID law took a hit but did not go down in the fight, when Commonwealth Court Judge Robert Simpson issued a partial injunction Tuesday that allows those without proper identification to cast a ballot.

This followed claims the law was a ploy from Republicans to disenfranchise Democratic voters. The state responded by changing requirements for obtaining an ID.

At issue in the latest hearing was whether this ID was available enough to voters before this election, on which Judge Simpson showed his doubts due to the impending date.

As of Tuesday, Governor Tom Corbett said the adminis-

tration is still going over how it will proceed with educational advertising and information about the law. The state has television ads, telling voters they must have ID, which is now not the case. But it will continue its “efforts to urge

voters to secure identification and be prepared to present it,” Gov. Corbett said.

Mark Jones, chairman of the political science department at Rice University in Houston and expert on election law, said states with voter ID laws must be cautious.

“As long as … the legitimacy of the system is still protected, then there shouldn’t be any real complaints with allowing additional IDs, or providing some flexibility for state officials in the event a birth certificate isn’t available,” Mr. Jones said. “But if your goal is a political one, than anything meant to reduce the barrier and reduce the obstacles to obtaining the voter ID defeats the overall purpose of the law.”

— PaIndependent.com

PENNSYLVANIA

VOTER ID

FUNDRAISING

Romney Returns to Pa.

County Moves Forward With Distribution

Pennsylvania Democrats Hold the Fundraising Lead

After a two-month hiatus from the former swing state, Republican presidential candidate Mitt Romney was back in Pennsylvania Friday for a series of fundraisers.

He began the day with a breakfast at the Union League in Philadelphia.

“We really would shock people if early in the evening on November 6 it looked like Pennsylvania was going to come our way,” said Gov. Romney, according to a pool report from the Allentown Morning Call.

After the reception, he went to a GOP rally at Valley Forge Military Academy and College in Wayne.

“You know, I’ve got a little secret here,” he said, according to NBC News. “That the Obama campaign thinks Pennsylvania is in their pocket. They don’t need to worry about it. And...they’re wrong. We’re going to win Pennsylvania. We are going to take the White House.”

The events generated around $3.5 million to $4 million for his campaign.

The Republican candidate’s return to the Keystone state comes at a time when the incumbent President Barack Obama’s lead is widening here.

Despite Commonwealth Court Judge Robert Simpson’s Voter ID ruling, a Montgomery County senior living facility will continue to issue proper identification to any county resident who needs it, free of charge, Philly.com reported.

Democrats Kathleen Kane, Rep. Eugene DePasquale and Rob McCord all hold a fundraising advantage over their Republican opponents.

Ms. Kane, attorney general candidate, has generated more than $1.4 million. Her opponent, David Freed, has raised $807,000 since May. Auditor general candidate Rep. DePasquale has raised $243,000; Republican challenger state Rep. John Maher has raised $152,000.

Treasurer Rob McCord has $2 million on hand.

His opponent, Diana Irey Vaughn has $22,000.

ON THE CAMPAIGN TRAIL

I really only have two criticism of the President of the United States.

The first, is that he is most liberal president we have seen in office since Jimmy Carter was president back in the 1970s. The second criticism I have is that he is the most incompetent president since Jimmy Carter was in the White House. And I mean no disrespect to Jimmy Carter by saying that.”

LA. GOV. BOBBY JINDAL (COURTESY POLITICSPA.COM)

18

4 OCTOBER 2012

POLITICAL COMMENTARY

REGIONSBUSINESS.COM

Transportation Funding Must Be Legislature’s Top Priority

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.

You don’t need to travel the highways and byways of our great commonwealth for long to know something is wrong. But teethjarring, axle-breaking potholes and stress-elevating traffic jams are only what are obvious.

What lurks, often out of sight, are decaying bridge supports. Pennsylvania has country’s worst bridges.

There are nearly 5,000 “structurally deficient” bridges in the state. On top of the almost 8,000 miles of substandard Pennsylvania roads, it’s a public safety nightmare.

Our decrepit roads and bridges aren’t just anxiety ridden public safety concerns, they’re also job-killing and economic growthinhibiting. Businesses aren’t going to expand or relocate to a place where they don’t know they can get their products to market efficiently and reliably.

Good highways and easy access

are at the top of companies’ concerns when looking to locate or expand in a particular location.

These concerns are exacerbated when the goods that must get to market require oversize/overweight permits. Delivery of these goods becomes troublesome when bridges are closed or unable to sustain such loads.

So why hasn’t this vital issue been addressed? Simply stated, we don’t have the money.

The revenue rate for PA transportation funding has been fixed for a decade and a half. It goes without saying that costs have increased exponentially during that period.

Funding for other aspects of state government has increased dramatically. Rate increases have gone to gas, water and sewer, electric and other utilities.

Back in 2006, the governor’s transportation funding commission

found that there was a $1.7 billion annual shortfall in transportation funding. By 2010, Gov. Ed Rendell’s Transportation Advisory Committee estimated there was $3.5 billion in unfunded transportation needs.

The report said that if nothing were done the gap would grow to more than $7 billion within a decade.

Most recently, Gov. Tom Corbett’s commission issued a report that included strong recommendations and proposals to bring in an additional $2.5 billion annually.

Some will find it interesting that I, as a fiscal conservative, support this additional funding for our vital transportation needs. Building and maintaining safe and reliable roads and bridges is a core function of government, something essential to conservative thought.

Both the business community (the Pennsylvania Chamber of Business and Industry and

others) and organized labor (the Pennsylvania State Building and Construction Trades Council and others) support the investment in transportation recommended by the commission.

Undoubtedly their support is spurred by the fact that 50,000 new jobs will be created by such investment. But underlying that benefit are the core values of public safety (God forbid a bridge collapse like the one in Minneapolis) and economic vitality. Without additional funding, both are in jeopardy.

The focus of legislative attention is elsewhere in the few weeks leading up to Election Day. But when the Legislature returns in January, the issue of transportation funding must move front and center. Failure to act puts the commonwealth’s citizens at risk and our economy in peril. There’s no excuse for further delay.

4 OCTOBER 2012

REGIONSBUSINESS.COM

POLITICS

19

PENNSYLVANIA

Report: Cities Headed Toward Credit Downgrades Harrisburg and Scranton both defaulted on a municipal bond payment this year.

And a recent report from Moody’s Investors Service implied more Pennsylvania cities are headed down a similar path towards credit ratings downgrades, due to factors such as poor economic recovery and increasing pension costs.

The study found “mixed results” for Act 47, the state’s program for municipalities targeted for reform. Since its implementation, 26 municipalities have participated in the program. The study found that the voluntary nature of the Act and certain implementation failures are the cause of the program’s ineffectiveness.

These downgraded credit ratings result in increased borrowing costs for cities across the state.

ELECTION 2012

WHAT MOTIVATES PEOPLE IS THEY WANT MITT ROMNEY TO WIN. BUT I DON’T WANT THEM TO BE DEPRESSED AND GIVE UP BECAUSE SOMEBODY SAYS THEY’RE DOWN 10 OR 12. IT’S A MORALE THING.” — PENNSYLVANIA GOP CHAIRMAN ROB GLEASON

NEW JERSEY

Christie: Proposed Restraint Bill ‘Stupid’ “Stupid” is how New Jersey Governor Chris Christie describes a recently introduced bill regarding pet restraints.

The bill’s sponsor, Assemblywoman L. Grace Spencer, owner of extensive array of pets including five cats, hopes to protect both drivers and pets while animals are present in the vehicle.

The bill would require harnesses for any animal not in a cage; violators would receive a small fine of $25.

Unfortunately for Ms. Spencer, Gov. Christie contended that he would never signed such a bill.

20

4 OCTOBER 2012

PHILADELPHIA POLITICS

REGIONSBUSINESS.COM

Non-Union Employees’ Pay Increase Sends a Message to City’s Unions CITY COUNCIL MATTERS

Timothy Holwick is a freelance writer covering Philadelphia government. Find more coverage at citycouncilmatters. com and follow him on Twitter @ CityCouncilBlog.

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 September 26, 2012, Philadelphia’s Mayor Michael Nutter announced that nearly 5,500 of the city’s non-union employees would receive a 2.5-percent pay-raise and reinstatement of step and longevity salary increases. The changes, which become effective on October 1, include healthcare adjustments, pension changes, and new rules for overtime and furloughs. The majority of affected employees work in the city executive branch, but some employees in independently elected offices, such as City Council, also fall under the new employment provisions.

All employees will receive the 2.5-percent wage increase. Step and longevity increases were frozen in July 2009, and eligible employees will be restored to the step they would have been at had the freeze never happened. However, there will not be back pay. Employees will see an increase in their healthcare contribution. Also, double pay for overtime will be eliminated and employees must work 40 hours to qualify for overtime, meaning that vacation, sick, or other paid-leave will not factor into overtime calculations.

Finally, the city will have the authority to furlough all employees covered in the changes.

To achieve financial stability moving forward with the pension system, many employees, particularly new employees, will be moved to a hybrid fixed pension and 401(k)-style of retirement benefits.

For employees not moving to the hybrid plan, they will contribute approximately 1.5 percent more of their pay than employees in the hybrid plan.

These pension changes are only goals, and will be relayed to City Council in order to be crafted as legislation.

All in all, approximately 13,000 employees had pay raises become effective October 1. This number includes the pending arbitration award to uniformed officers and firefighters.The upcoming fiscal year for the city has a balance of about $60 million, so these expenses will be absorbed into that amount. As PICA pointed out when approving the city’s five-year plan, labor negotiations and rising demand for salary increases were some of the biggest threats to the City’s financial stability.

Mayor Nutter is clearly seeking financial stability but also fairness.

ZONING

Summer Zoning Code Changes Could Force Closure for Business This summer’s changes to the Philadelphia Zoning Code were supposed to make the code more streamlined and manageable for the everyday Philadelphian. But for one Fishtown business owner, the changes have brought only headaches.

Because the property that Mid-Century Furniture Warehouse sits on was zoned residential, the Department of Licenses & Inspections

cited the business for operating without the proper usage permits. The landlord, Robert Bitros, was denied his zoning variance request by the Zoning Board of Adjustment.

While the Warehouse’s operator, Brian Lawlor, can appeal the decision, he has yet to make up his mind on the matter.

His decision will determine what happens to the Fishtown property.

EDUCATION

(B. KRISTFOR GPTMC)

“As we struggle past the impact of the Great Recession, we must simultaneously act with fairness toward both hard-working public servants and taxpayers,” said Mayor Nutter in his announcement.

These changes are not affecting the most publicized groups of the city’s workforce, which are the union-represented employees who have been protesting around Philadelphia and City Hall for months now. On the subject, Mayor Nutter said, “Fair and fiscally responsible, this package is almost the same as proposals that union leaders representing the City’s non-uniformed employees have refused to consider.”

In another statement directed toward more contentious city employees, the mayor went on to say that “Administration stands ready to sit down with Union leaders at any time to hammer out a contract that includes fair salary increases for current employees” but first “we need fundamental reform in the areas of pension and healthcare as well as work rules in order to help pay for these salary enhancements.”

It is difficult to deny that the new changes are not, at least to some degree, a message toward unions now locked in a stalemate with the Nutter Administration, when the mayor is using the press announcement to discuss those very negotiations.

For now, nonunion city employees with raises will work alongside union employees still calling for their increases.

Department of Education Gives Temple $1.4M Grant, Rep. Fattah Announces Temple University will receive a grant worth $1,422,305 from the U.S. Department of Education to go towards fostering “innovative learning strategies to improve student achievement,” according to a statement.

Temple’s Institute for Schools and Society, alongside Academic Development Institute, will manage the grant with a new program that will emphasize learning innovation, based on previous experience with the Center on Innovation and Improvement (CII).

“America’s challenges will only be met by educating the future generation of leaders, learners and thinkers. Innovation is Fattah the key to student learning and economic growth and this Center is going to build a stronger regional and national future,” said Congressman Chaka Fattah when he made the grant’s announcement at Pennsylvania MESA Navy Day at the Temple University College of Engineering.

MARCELLUS SHALE

City Council Approves Resolution Opposing Natural Gas Drilling Law A resolution unanimously passed by Philadelphia City Council last Thursday declares the council’s opposition to natural gas drilling legislation that supersedes municipalities’ zoning controls.

The controversial state law has been overturned by a Commonwealth Court decision, but Governor Tom Cor-

bett said his administration plans to appeal the court’s decision, according to Philly. com.

Republican Councilman David Oh, who voted in favor of the resolution, said he is in favor or Marcellus Shale drilling, but not at the expense of the rights of local municipalities.

4 OCTOBER 2012

CAPITOL REPORT

REGIONSBUSINESS.COM

CAPITOL REPORT

PROPERTY TAXES

HB 2633: Sponsored by Representative Warren Kampf, this bill establishes the Innovate Pennsylvania Program.

This program would be charged with the sale of premium tax credits, for yearly payments, and for premium tax credit certificate.

It would also be assigned with establishing guidelines and reports.

amend Pennsylvania’s state constitution to reduce the size of the General Assembly.

It would amend section 16 of Article II to divide the state into 38 and senatorial and 153 representative districts.

It also notes that no county, city, town, etc. would be divided to form a district.

HB 879: Sponsored by Representative Gene DiGirolamo, this resolution orders the Legislative Budget and Finance Committee to conduct a study of the Department of Public Welfare's proposal to begin collecting copayments for services provided to children who have disabilities and who have family income greater than 200 percent of the Federal Poverty Level Guidelines.

HB 728: Serving to amend a February Act titled the Combustible and Flammable Liquids Act, this bill would establish the regulation of combustible and flammable liquids.

It would allocate functions of both the Department of Labor and Industry and the Pennsylvania State Police; it would also be charged with imposing penalties and regulating appeals.

HB 865: This resolution honors Irwin "Sonny" Popowsky for his 33 years of service in the Office of Consumer Advocate.

Mr. Popowsky served on several national and State boards, such as the Board of Trustees of the North American Electric Reliability Council, the Board of Directors of the North American Energy Standards Board and the Keystone Energy Board.

HB 142: Sponsored by Representative John Hornaman, this bill amends Title 35, Health and Safety, of the Pennsylvania Consolidated Statutes. It establishes incentives for fire companies and emergency medical services agencies volunteers in cities across the state.

SB 1590: This act establishes “a uniform construction code, imposing powers and duties on municipalities and the Department of Labor and Industry; providing for enforcement; imposing penalties; and making repeals, further providing for administration and enforcement.”

It would serve as an amendment to an act introduced as the Pennsylvania Construction Code.

HB 153: This joint venture would

21

HB 1417: Amending titles in the Pennsylvania Consolidated Statutes, this bill further provides for the offense of several criminal charges relating to assault, including aggravated assault, assaulting a police officer.

It also provides for certain penalties relating to game and wildlife protection, including hunting while under the influence of alcohol or controlled substances.

Send political news tips to edicicco@regionsbusiness.com

Report: Reform Proposal Won’t Cover Tax Losses A new report on Pennsylvania property tax reform, conducted by the state Legislature’s Independent Fiscal Office, implies that the proposed tax swaps won’t be sufficient to replace all property taxes.

The 88-page report analyzed House Bill 1776 and Senate Bill 1400, both bills currently pending in Legislature, that would replace school property taxes with other tax increases, such as personal income taxes and sales taxes.

The bills would bolster personal income taxes from 3.07 percent to 4.07 percent, sales tax from 6 percent to 7 percent.

They would also increase the tax base on select goods and

services, including clothing items that cost over $50.

However, the study found that the replacements would not necessarily be enough to totally do away with school property taxes.

The study estimated that such bills would leave state school districts with a deficit of $1.5 billion next year, and $2

billion short by 2017-18.

The Select Committee on Property Tax Reform, created by House resolution and charged with creating the new school and municipal property tax system, met Monday to further discuss IFO’s findings.

They have until November 30 to disclose their suggestions for changes to the system.

INTERNET CRIMES

WELFARE

Committee to Consider Online Impersonation Legislation

Corbett Welfare Changes Begin in Some Counties

Bill 2249, regarding online impersonation, will be heard by a House Judiciary Committee next week.

State Rep. Katharine Watson, the bill’s sponsor, said the bill is not intended to persecute harmless joking or the First Amendment rights of freedom of speech.

Rather, the bill is designed to target true Watson online bullying, making it a third-degree misdemeanor to impersonate someone via social media outlets, text message, or email with a punishment of up to $2,000.

After a public hearing in Berks County in late August, the bill was expanded to include fictionalized social media accounts.

The House Judiciary Committee Majority Chairman, state Representative Ron Marsico is also working on some tweaks to the bill; he hopes to include an exemption for “works of public interest” such as satire or commentary.

Governor Tom Corbett’s welfare changes will now go into effect in select counties, transforming their social services system.

Due to criticism from the General Assembly, the governor’s plan was implemented on a small scale, only 20 out of the state’s 67 counties will be included.

Under the new plan, participating counties will receive block grants which can be used at the counties’ discretion for social services.

The block grant replaces the old system in which the state provided separate funding streams, each for a specific usage.

22

4 OCTOBER 2012

REGIONSBUSINESS.COM

IDEAS

Entrepreneurs Need To Shake Things Up

Randy Gage is the author of eight books on success including Risky Is the New Safe, due out October. 30. Learn more at RandyGage.com

HOW TO SHARE Send contributions to feedback@regionsbusiness. com. Opinions expressed by guest writers do not necessarily reflect those of Region’s Business.

A member of my book launch team advised me to slow down and move something back a week, for better scheduling. I had a client who didn’t like the brochure I created for them because it was three times longer than “normal.” And a nonprofit organization I help out was hesitant to do a fundraising campaign I created because it was too “salesy.”

My responses in order were: 1. Do it now.

2. The last thing I want is normal.

3. “Salesy” is better than “brokey.”

For entrepreneurs and success seekers, sometimes the best way to build something is to break it. Yes, you must think things through and have a plan, but at some point the planning, analysis, and feasibility studies are no longer useful and it’s time to get off your butt, jump into action and go for it. Here are five marketing lessons for entrepreneurs: 1. Action Beats Perfection: A well-thought out plan executed today is better than the perfect plan executed whenever the hell it’s going to be perfected. (Which is usually never.)

Follow Mark Zuckerberg’s lead - move fast and break things. PHOTO BY ROBERT SCOBLE

2. Boring Kills: A book, video, sales letter, brochure, opera, story, song, dance or any creative work can never be too long – it can only be too boring.

3. Say What You Want: When you want someone to do something, don’t speak in codes. Whether you’re talking with your kids, raising money for a charity, crafting a marketing message, or making a keynote to inspire an audience – tell them what you want them to do. They’re big kids and they can decide if they agree with you or not, and if they want to

Special Delivery.

To subscribe, call 877.700.6245 or 215.627.6397

REGION’S BUSINESS A JOURNAL OF BUSINESS & POLITICS

take that action – but only if they know what the message is.

4. Be Bold: The best promoter of you, your product, service, or cause is you. You know it best and no one is going to make a more passionate case than you. If you believe in something, stand up for it.

5. Take Risks: That mailing that the nonprofit was hesitant to use ended up being the most successful fundraiser in their 80-year history. That marketing piece I’m creating for my client is going to be bold, different and unconventional – and that’s why it will crush.

One of the chapters in my new book, Risky Is the New Safe is titled “Move Fast and Break Things.” That of course, was the mantra of Mark Zuckerberg and the Facebook clan as they were plotting their world domination during their startup. And every successful achiever who has ever accomplished anything epic has the same philosophy.

Sometimes you have to break things. Shake it up. Bust it up, because that’s where the breakthroughs live.

24

4 OCTOBER 2012

REGIONSBUSINESS.COM

HERE’S HOW WE SWING IN PENNSYLVANIA Many polls have moved Pennsylvania from “swing state” to favoring President Barack Obama.

Forget the complicated math, because if Mitt Romney is to mount a serious challenge here come November 6, his hopes ride not on mass appeal, but instead on just a small handful of precincts.

Story by Elissa Vallano

25

4 OCTOBER 2012

REGIONSBUSINESS.COM

P

ennsylvania has always been an interesting piece in our nation’s political puzzle. The blue collar state has never been easy to pin down, and it’s shown a decidedly independent streak during election seasons. Pennsylvania’s diverse demographic makeup and history of voting across party lines cemented its status as a battleground state, but it appears not everyone still sees it that way – including Mitt Romney.

In the past 10 presidential elections, Pennsylvania has turned blue six times. George H.W. Bush’s 1988 victory was the last time a Republican captured the state, but it opted for a GOP governor and senator only two

years ago. This unpredictable voting pattern is exactly why the state has remained competitive, but 2008 still appears to be a defining moment for Pennsylvania. Barack Obama demonstrated total dominance over John McCain, and that stark defeat has now set the tone for this year’s election.

“I think the Romney campaign, looking at the historical trend line of the state, realizes the road to the White House doesn’t come through Pennsylvania,” James Lee, President of Susquehanna Polling and Research (SP&R), said. “Obama carried the state by 10 points four years ago. If you compare it to states like Indiana, North Carolina, Florida and Ohio that are much redder, it really does place Pennsylvania lower on the priority list.”

Rumblings of Pennsylvania losing its battleground status began back in June when NBC News downgraded it from “toss-up” to “lean Dem.” The shift came at the heels of a New York Times report that said Romney’s campaign was “placing a priority on winning Florida, North Carolina, Ohio and Virginia and then picking up one ‘wild card’ state from a group that includes Colorado, Iowa, Michigan, Nevada, New Hampshire and Wisconsin.” Pennsylvania’s absence on the list was a noticeable one, but it wasn’t until Romney pulled his Pennsylvania TV commercials after the Democratic National Convention that analysts really got talking. Pro-Republican Super PACs also retreated, and the Obama camp soon followed suit.

It appeared Pennsylvania had become a non-factor for 2012.

“I don’t know if it’s a resource allocation issue and they just can’t play everywhere, or if they’re worried about being seen with the governor,” Mr. Lee said.

“Maybe that’s a potential area of concern for the Romney folks. Pennsylvania means having to be on the stump with Governor Corbett, and he has struggled to develop a positive image in the state

ARE WE BLUE?

Pennsylvania’s Presidential Voting History A Republican hasn’t won Pennsylvania since 1988.

The results (*=winner): 2008

* Obama (D) McCain (R)

54.4% 44.2%

2004

Kerry (D) * Bush (R)

50.9% 48.4%

2000

Gore (D) * Bush (R)

50.6% 46.4%

1996 * Clinton (D) Dole (R) Perot (I)

49.2% 39.9% 9.6%

1992 * Clinton (D) Bush (R) Perot (I)

45.2% 36.1% 18.2%

1988 * Bush (R) Dukakis (D)

50.7% 48.4%

1984 * Reagan (R) Mondale (D)

53.3% 45.9%

1980 * Reagan (R) Carter (D) Anderson (I)

45.6% 42.5% 6.4%

26

4 OCTOBER 2012

REGIONSBUSINESS.COM

AROUND THE WEB

What Pa. polls are showing A look at recent reports on how Pennsylvanians are expected to vote in November: Susquehanna Polling From early last week: Obama 47% Romney 45% Other 8% TRIBLIVE.COM

Rasmussen Reports From a late September poll: Obama 51% Romney 39% Other 3% Undecided 7% RASMUSSENREPORTS.COM

Huffington Post From this week: Obama 51% Romney 41% Confidence in Obama lead, 100% HUFFINGTONPOST.COM

The Morning Call From last week: Obama Romney

President Obama during a recent campaign stop in Ohio, considered a key state for both candidates. No Republican has captured the White House without winning Ohio.

SCOUT TUFANKJIAN FOR OBAMA FOR AMERICA

49% 42%

MCALL.COM

CBS, NY Times, Quinnipiac From last week: Obama Romney

54% 42%

CBSNEWS.COM

Franklin & Marshall From last week: Obama 52% Romney 43% FANDM.EDU/FANDMPOLL

YouGov From early last week: Obama Romney

51% 42%

YOUGOV.COM

We Ask America From late last month: Obama Romney WEASKAMERICA.COM

48% 42%

for a whole host of reasons. His numbers are really problematic even in Republican areas of the state.”

Jordan Lieberman, President of CampaignGrid, a data-focused campaign marketing agency, sees a significant disconnect between the average Pennsylvania voter and the Republican candidate.

“Pennsylvania is still a blue collar state, especially in the T and western Pennsylvania,” Mr. Lieberman said. “And Mitt Romney is not a blue collar candidate. Forget ethnicity and party affiliation. These are folks that work for a living, and they’ve had a hard time understanding how Mitt Romney got to where he is.”

Gov. Romney has certainly struggled to appeal to Pennsylvania voters, though that could be said for many other parts of the country as well. His “47 percent comment” only exacerbated voters’ skepticism about his wealth and status, though he’s hardly the first wealthy man to run for office. Ross Perot remains the richest presidential candidate to date, and he managed to garner widespread support from middle class voters (though not a victory). For Gov. Romney, it’s an issue of image.

“Our polling has shown Romney has

THESE ARE FOLKS THAT WORK FOR A LIVING, AND THEY’VE HAD A HARD TIME UNDERSTANDING HOW MITT ROMNEY GOT TO WHERE HE IS.’ —JORDAN LIEBERMAN

struggled to develop a positive image in this state,” Mr. Lee said. “That is a big deal because when I looked at the surveys from four years ago, McCain had a much more positive image in this state going into the convention. That is not the case with Romney.”

Gov. Romney powered through a vicious Republican primary that had more mudslinging and hostility than most voters could remember. Eleanor Clift of The Daily Beast wrote an article back in April entitled “Is Mitt Romney Damaged Goods After a Brutal Primary Season?” and she questioned whether he’d be able to recover from such a “disaster.” While he managed

to eventually win the nomination, it came at a price.

“It took him longer than it normally takes to lock up the nomination,” Mr. Lieberman said. “And that’s because he was a moderate governor from Massachusetts who invented Obama Care. He’s had a hard time really activating his base. In many ways, one of the reasons he’s not doing well in Pennsylvania and Ohio is a lack of intensity amongst poor voters. You could see it a long time away that he’s not Ronald Reagan. He’s having a hard time whipping up support among his Republican core supporters.”

Despite these struggles, Gov. Romney is still very much in the running. The economy is a top concern for the majority of voters. Unemployment is currently at 8.3%, and Pennsylvania’s rate clocks in at 7.9%. But that number is misleading since it does not factor in those who have become discouraged or are no longer seeking work.

And then there is the amount of Americans who are underemployed - a far larger and more complicated voting bloc that routinely gets omitted from unemployment statistics.

Underemployment generally refers to a person with a part-time job who desires full-time work, as well as those dealing with

27

4 OCTOBER 2012

REGIONSBUSINESS.COM

ON TWITTER

What the tweets are saying Social media is a critical component of this election cycle and much of the Twittersphere is focused on the two candidates.

Before you hit the pillow tonight, pray for Mitt Romney. He needs wisdom and clarity of thought tomorrow night. For all our sakes... @BRENTTEICHMAN (THE NIGHT BEFORE THE FIRST DEBATE)

Can’t we just skip to the day after the election when Obama continues being President & Mitt Romney & Paul Ryan are on Dancing w/ the Stars? @CHRISROCKOZ

Mitt Romney and running mate Paul Ryan campaign in Norfolk, Virginia. Virginia is another battleground state and many polls show President Obama with less than 50% of the vote, offering some room for the Romney-Ryan ticket. JAMES CURRIE

over-qualification. Many Americans hold a job in which their education, experience, and skills far exceed the requirements of the job. It’s a more difficult section of the population to quantify, but by utilizing data from the Bureau of Labor Statistics, 24/7 Wall Street calculated the underemployment rates and state rankings. In many cases, states have an underemployment rate twice that of unemployment, and Nevada (22.1 percent), California (20.3 percent), Rhode Island (18.9 percent) and North Carolina (17.5 percent) took the top spots for the highest rates of underemployment.

Pennsylvania’s underemployment rate now stands at 13.9 percent.

Bill Clinton recognized this growing discontentment among voters during his convention speech. He said the economy is improving, but “too many people do not feel it yet.”

This resentment has been a critical component in the 2012 election, and it has allowed Romney to make inroads with undecided voters. According to the Rasmussen Reports daily Presidential Tracking Poll, President Obama is attracting support from 48 percent of voters nationwide, while

Romney is earning the vote from 47%. One percent (1%) prefer some other candidate, and three percent (3%) are undecided.

“If we know anything about undecided voters is that they tend to be more inclined to vote for the challenger in a climate like this,” Mr. Lee said. “You have most Americans saying the country is going in the wrong direction, and you have the economy registering as a really big concern. When undecided voters are telling my callers they are undecided in the race, I think they are saying they are not voting for Obama, but they’re not yet ready to pivot to Romney because he hasn’t closed a sale yet.”

Susquehanna Polling and Research is one of the few state polling agencies to report the race much closer than meets the eye. They have conducted four polls for the State Republican Party, and each has posted a tight head-to-head between Obama and Romney.

“Our polling has shown that Romney has already cut the president’s margins in half in our regional breakout of the Philadelphia suburbs,” Mr. Lee said. “The president won the four counties around Philly by 15 points four years ago. If you look at the total votes

cast for Obama and McCain in Chester, Delaware, Bucks, and Montgomery counties, the president won those four counties by a 57-42 margin. That’s been cut in half.

We’ve continued to show the president with an average seven to eight point lead there, and that’s not insignificant because that really cuts into the president’s margin. And the further west you go, the numbers get even better for Romney.”

Unfortunately for Gov. Romney, the Philadelphia region is firmly rooted in blue.

“What you’re seeing is the population in southeast Pennsylvania has turned heavily Democrat in terms of registration,” Mr. Lieberman said. “And if you look at the last four years, Montgomery County has gone majority Democrat for the first time.”

While he’s settled into a comfortable lead now, President Obama’s courtship of Pennsylvania was not always so smooth. In the early stages of his campaign, he faced an uphill battle to win over the state.

“If you recall four years ago, Obama initially had a very hard time winning Pennsylvania,” Mr. Lieberman said. “Former Governor Rendell had endorsed Hillary Clinton. She was killing it, especially in

You know what’s getting old? Lib journos who went nuts over Romney’s 1965 h.s. pranks, but dismiss any pre-2008 vids of Obama as “old.” @MICHELLEMALKIN

The media is funny: Romney’s 47% video was BREAKING NEWS everywhere you looked.

New Obama vid? A dud before anybody’s seen it. #obviously @KEDER

In the US Election, Romney camp seem to be the first team in election history to be mounting a pre-mortem on their candidate. @AIANNUCCI

28

4 OCTOBER 2012

REGIONSBUSINESS.COM

Local TV, Radio Stations Lose This Election Cycle The not-so-heated race between Mitt Romney and President Barack Obama in Pennsylvania has been disappointing not just for Republicans.

With Obama appearing to have safely locked down the state, local television and radios stations have seen their normally abundant political advertising money dry up.

In the 2008 general election, Obama and John McCain spent $41 million advertising in Pennsylvania - and this came after Obama and Hillary Clinton had already spent $16 million during the state’s primary battle back in April. Only Florida pulled in more advertising money that year, but that is not the case in 2012.

Not even close.

Obama spent less than $5 million on ads in Pennsylvania between May and July of this year, yet he has already topped $26 million in Ohio. Romney has spent $13 million in Ohio and hasn’t invested any money in Pennsylvania, though conservative groups have spent nearly $20

million on ads for him. Neither candidate and no Super PACs have run an ad on Pennsylvania television or radio since the first week in September - though that could change in these final weeks before the election.

While political ad money isn’t exactly a stimulus for the local economy, it does provide a much needed financial boost for local television and radio stations.

That extra cash flow often supplements the less lucrative off season, though it can be a dangerous move relying on political ad money. The battleground map is constantly evolving, and it’s nearly impossible to predict a state’s earning potential during an election year. Pennsylvania has proven to be the perfect example of that.

State Democratic Chairman Jim Burn told USA Today that supporters of the president should “not be lulled into any false sense of security by the current level of Republican activity” because “that could change on a dime.”

Some political analysts predict Rom-

RegionsBusiness.com Philadelphia, 24/7

ney is preparing for a heavy ad blitz right before Election Day. Wall Street Journal writer and former Ronald Reagan speechwriter Peggy Noonan said Romney “doesn’t seem to be out there campaigning enough.” She also ponders his strategy, adding, “He’s raising money so he can pile it in at the end, with ads. But at the end will they make much difference?”

It will make a difference to Pennsylvania television and radio stations, though after an underperforming election season, it looks doubtful that they will be able to make up for what they’ve already lost.

Neither candidate is struggling financially - Obama is nearing $1 billion in campaign funds, and Romney is on pace to reach $900 million - but Pennsylvania will likely see none of it.

“I don’t think it’s a permanent issue,” said Jordan Lieberman, President of CampaignGrid, “but the circle of Mitt Romney is by no means considering Pennsylvania to be a state where he’s going to compete effectively.”

FLASHBACK: 2008

Big spending in Pennsylvania

Barack Obama and John McCain poured $41 million worth of ads into Pennsylvania during the general election.

That was after Mr. Obama and Hillary Clinton spent $16 million during the primary election.

29

4 OCTOBER 2012

REGIONSBUSINESS.COM

western Pennsylvania. He had a hard time connecting with voters. He’s really made a lot of progress in Pennsylvania particularly by winning over moderates in the Philadelphia suburbs and winning over conservative Democrats in the southwest who are less than accustomed to voting for African Americans.”

Much of President Obama’s success can be attributed to the early bird catching the worm. Because of the long, drawn out Republican primary, his team was able to develop a strategy against Gov. Romney before he officially locked down the nomination – and Pennsylvania was one of the first states targeted.

“The Obama folks did one thing right. They came into Pennsylvania early, invested money with super PACs, and defined Romney before he had a chance to be declared the nominee,” Mr. Lee said. “The Obama campaign has very successfully created doubts in people’s minds about whether Romney does share their concerns and does represent the middle class. It’s what you do when you run a campaign. You create doubts in people’s minds. Obama, for all intents and purposes, shouldn’t even be in this thing. This should be game, set, match for Romney, and it’s not.”

Gov. Romney visited the Philadelphia area at the end of September, hosted a fundraising event at the Union League, and then jetted to a midday rally at Valley Forge Military Academy. He was in Massachusetts by that evening, and has since moved on to Colorado and Virginia.

His focus on Pennsylvania was solely fundraising, not campaigning, and he even told donors it would be a “shock” to win Pennsylvania. One could see why many have questioned Romney’s Pennsylvania strategy.

“I’ve certainly been surprised by the lack of ground game from Mitt Romney,” Mr. Lee said. “I don’t get the sense that they’ve made a conscious decision to stay engaged here on a grassroots level. It’s one thing to say you can’t afford to go up on Philadelphia TV, it’s quite another to say you’re not going to provide manpower and troops to make sure the party is fired up.”

But for others, Gov. Romney’s shift in focus makes sense in the long run.

“In Pennsylvania, Romney has forgone the state,” Mr. Lieberman said. “That allows him to focus on states like Virginia, North Carolina, Ohio, and even Wisconsin where he could win. And this is not about winning Pennsylvania. It’s about winning the most electoral votes. From a

With the number of truly undecided voters dwindling, both campaigns will be looking to boost voter turnout. SCOUT TUFANKJIAN FOR OBAMA FOR AMERICA

national campaign point of view, it’s probably the right move.”

Charles Kopp, Gov. Romney’s Pennsylvania campaign chairman, told The Philadelphia Inquirer that campaigning in Pennsylvania is not just about votes.

“Win, lose or draw, Pennsylvania should be an important state for raising money,” he said. And it has been. According to the Federal Election Commission, Republicans have raised $10,095,543 in Pennsylvania so far this year, and Democrats are at $8,421,329 – and that’s not counting the candidates. Personally, President Obama has raised $8,421,329, and Gov. Romney has tallied $7,061,58 in the Keystone State.

Analysts are now looking at what Pennsylvania’s political climate could mean for other battleground states. As far as electoral votes, Florida (29), Ohio (18), Virginia (13) and Wisconsin (10) are being closely watched and courted by both candidates. Gov. Romney seems to be experiencing similar issues in Ohio as he has in Pennsylvania – mainly appealing to blue collar voters – and his campaign has kicked into overdrive. In order to win this election, Gov. Romney must hang onto Sen. McCain’s voters from four years ago and convert a small percentage of former Obama supporters. This has been a particular challenge in Pennsyl-

vania and Ohio.

“Ohio is really a similar state to ours demographically,” Mr. Lieberman said.

“We share key markets. There are a lot of similarities, and that’s a large reason why he’s not campaigning as effectively as John McCain did even.”

The Columbus Dispatch recently released a poll reporting that five percent of Sen. McCain’s 2008 supporters were voting for President Obama, and another five percent were undecided. With only a month left to campaign, this could spell trouble for Gov. Romney. Florida, however, remains a whole other animal.

“Florida is really a different story,” Mr. Lieberman said. “They have a Republican governor, and they’re perfectly OK voting for Republicans. In that case, the problem is that Obama is really locked down on seniors and Hispanics. The one shining point for Romney is winning over Jewish voters in southern Florida, but as a voting bloc, it’s just not that many people. He can’t win Florida with just Jewish voters.”

With Ohio trending toward Obama, Florida is a must-win for Gov. Romney. Foreclosures, high unemployment and soaring gas prices are substantially hurting President Obama’s chances in Florida, but he’s still managed to break ahead of his competitor thanks to a nearly 20-point lead among women. The New

York Times, in collaboration with Quinnipiac University and CBS News, has the president leading Gov. Romney 53 to 44 percent in the poll.

As the race gears up for its last leg, much can and probably will change before Election Day. The debates are usually “make or break” time for the candidates, and several states are still neck-and-neck and up for grabs. There are only three presidential debates lined up – the initial one that happened October 3 in Denver, a town hall-style session two weeks later in Hempstead, NY, and a final foreign policy-focused event on October 22nd. Vice President Joe Biden is set to debate GOP vice presidential nominee Rep. Paul Ryan on Oct. 11 in Danville, Ky. What remains uncertain is how many voters will actually turn out this year, whether independent and undecided voters could shift the race in a new direction, and where Pennsylvania falls in that spectrum. Though it’s safe to say the country is looking at an election year much different than last.

“I don’t think anybody believes, at least they haven’t been able to say with a straight face, that the turnout is going to exceed what happened four years ago,” Mr. Lee said.

“I think we’re looking at an election much closer to 2004. I think we’re likely to see a very close election.”

30

4 OCTOBER 2012

REGIONSBUSINESS.COM

PA’S 8TH DISTRICT Since 1962, five Republicans have held this seat for a total of 30 years. Four Democrats have held it the remaining 20 years.

Republican 1957-1967 Willard S. Curtin

Republican 1967-1977 Edward G. Biester, Jr.

What Is It About The 8th District?

BY EMILY DICICCO

Democrat 1977-1981 Peter H. Kostmayer Republican, 1981-1983 James K. Coyne, III Democrat, 1983-1993 Peter H. Kostmayer

1

Republican 1993-2005 James C. Greenwood

Republican 2005-2007 Michael Fitzpatrick

Democrat 2007-2011 Patrick Murphy Republican , 2011-present Michael Fitzpatrick

ties, as seen on the list to the left.

“The 8th congressional district swings because, Pennsylvania’s 8th Congressional District is, at first while the Republicans have a registration advantage glance, a Republican district. The majority of its con- — slight, I think — they are not conservative Repubstituents live in the more rural Bucks County and are licans, but moderates,” said Robin Kolodny, political more affluent than districts closer to the city. science professor at Temple University. “The district is History tells another story, however. known for being pro-business and pro-environment.

Throughout the last 50 years, PA-8 has been rep- For this reason, both moderate Republicans and modresented by a Republican just 60 percent of the time; erate Democrats can entice these voters.

Democrats have held the seat for a total of two decades The district’s unusual demographics make for major in that span. fluctuations between parities, said Rogers Smith, disAs the 2012 election draws near, Republicans risk tinguished professor of political science at University losing what slim historical advantage they have had of Pennsylvania. as Democratic challenger and Kathryn Boockvar “The 8th District represents an unusual mix of rural, continues her fight against incumbent Republican working class, affluent suburban voters, and mostly Representative Michael Fitzpatrick. white voters,” he said.

Rep. Fitzpatrick has served the district since 2011, “Rural white voters mostly vote Republican, but after previously serving from 2005 to 2007, then los- they are the smallest group, while white working class ing to Democrat Patrick Murphy, whom he defeated and affluent suburban white voters can go either way, especially in the Northeast, where white working class in the 2010 election.

The district currently “Leans GOP,” according to voters always voted strongly Democratic until the last RealClearPolitics.com, and ElectionProjection.com three decades, and where there are more affluent has Rep. Fitzpatrick reclaiming his seat by 3.7 per- white liberals than in most other parts of the country. centage points. However, ElectionProjection.com goes Both parties see these working class and suburban on to say that the 8th District is “the most vulnerable white constituencies as ones they can win. Both parGOP seat and is also listed as a weak ties contest these races vigorously and DEBATES retention.” both parties win some of the time.”

In January, Ms. Boockvar made the However, as Bucks County Com8th District Democratic Congressional Campaign missioner Diane M. Ellis-Marseglia Debates Committee’s Red to Blue list, a highaffirmed, it isn’t just the demographics profile program which supports top — Noon, October 18, 12 p.m. that affect the district’s back and forth campaigns across the country. at WNPV Studios in Lansdale nature, election years also have a big say Additionally, PA-8 landed spot 39 in determining a winner. on The National Journal’s list of the — 11 a.m. October 25 at the “Off year local elections [have] vot75 most competitive U.S. House races. Lower Bucks Campus of ers who tend to be Election Day and What is it about this race — this dis- Bucks County Community Party loyalists. Since Bucks County has a higher percentage of municipalities trict — that separates it from Pennsyl- College in Bristol with registered Republicans, they win,” vania’s 18 other districts? Unlike othshe said. ers, such as PA-5 or PA-16, which have — 8 a.m. October 26 at The “Those off year elections end up being been represented by a Republican for Water Wheel Restaurant in party elections unless there is a huge several consecutive decades, PA-8 has Doylestown issue.” historically fluctuated between par(NEWTOWN-PA.PATCH.COM)

My strategy is to work hard, to remain as accessible to the constituents of the district, and to strongly advocate on the issue of jobs and economy by pro-growth economic platform and a less complicated tax code.”

MICHAEL FITZPATRICK

We knew that we were running the race that we needed to run, with the assumption that you never know what type of support you’re going to get from other folks.”

KATHRYN BOOCKVAR

32

4 OCTOBER 2012

REGIONSBUSINESS.COM

First Round Capital Move a ‘Lifestyle Calculation’

BY BRANDON BAKER If Silicon Valley’s tech entrepreneurial scene symbolizes an established Picassotype, Philadelphia’s own tech startup scene exemplifies a starving artist, striving to do more with less by equipping a worn paintbrush but an expanding palette of colors.

Philadelphia’s tech startup community has been, to those on the national stage, fairly quiet since the city’s contribution of companies like Half.com in 1999 and TurnTide in 2004. But with national investment firm First Round Capital moving its 10,000-square-foot office space to University City last month and its co-manager Josh Kopelman on the field to recruit fresh-faced players in the ongoing search to find the city’s new tech MVP, Philadelphia could be on the brink of its own rise to tech prominence — if not through the means City Hall may have in mind.

“I think Josh has a bigger chance to change Philadelphia by bringing his experience and mentorship than his money,” said Alex Hillman, co-founder of Philadelphia-based working space IndyHall.

Mr. Hillman, who describes his coworking space as a “network of networks,” opened shop in Old City on North 3rd Street in 2006, developing an area commonly referred to as “N3rd Street” because of the large presence of tech-oriented individuals who use the space as an environment for organic growth and networking. Mr. Hillman said the communal

Mayor Michael A. Nutter speaks during the grand opening of First Round Capital’s new headquarters in University City (seen below left) September 19 while First Round Capital Co-Founder Josh Kopelman, right, looks on.

(KAIT PRIVITERA / CITY OF PHILADELPHIA)

space, along with others like it in the city, supplements a “bottom-up” approach in Philadelphia’s thriving tech startup scene that distinguishes it from the likes of New York City and Silicon Valley.

“There’s a lot going on right now that

doesn’t necessarily need resources like Michael A. Nutter, which exempted not First Round, but then there are people in only investment funds from paying busithe community who voice that we need ness taxes in the city, but their partners more things like First Round as well. This, in addition to implemenso that we can have more tation of the Keystone Innovation Zone fast-growing companies,” Tax Credit Program, new Mr. Hillman said. “I think tax breaks for design- and PHILLY IS A GOOD video it’s sort of like steroids — you game-related comcan get big and strong, but PLACE TO LOCATE panies, and a slew of other THEIR LIFE, AND at a cost.” cost-of-living and cultural Describing the city’s IT HAPPENS TO BE elements, combine to creattempts to provide incen- A GOOD PLACE TO ate a more attractive — if imperfect — foundation tives for tech companies LOCATE THEIR for tech startups to launch. and investment firms, Mr. Yet like Mr. Hillman, Hillman noted these lures BUSINESS, TOO.’ many notable individulargely as “Band-Aids” — BLAKE JENNELLE, for long-term problems, CO-FOUNDER AND FORMER als in Philadelphia’s tech emphasizing the need for PRESIDENT OF PHILLY startup community not intrinsic motivators over STARTUP LEADERS only make the claim that extrinsic ones. the scene’s growth has Still, part of First Round’s little to do with city tax move to West Philadelphia, aside from infrastructure, but also that, for varying upward trends in the community and Mr. reasons, many sensational comparisons Kopelman’s alumnus status at Wharton, to tech environments like Silicon Valley stems from a piece of legislation signed are entirely unwarranted. into law earlier this year by Mayor “The things that attract or repel entre-

33

4 OCTOBER 2012

REGIONSBUSINESS.COM

preneurs really don’t have much to do with taxes or anything like that — that’s really overblown. New York City has ungodly taxes, yet people are flocking [there],” said Blake Jennelle, co-founder and former president of Philly Startup Leaders. “I think people are doing a holistic lifestyle calculation — that Philly is a good place to locate their life, and it RJ Metrics moved from Camden into Center City Philadelphia happens to be a good because of the breathing room for entrepreneurs, Co-Founder place to locate their busi- Robert J. Moore said.

(RJ METRICS) ness too.”

Case in point, Robert J. Moore co- very few of them that I would consider founded RJ Metrics — a provider of competitors of each other,” Moore said. business intelligence software and data “The main reason is that we’re all doing analytics — in 2008 after spending time similar things and solving totally differworking at New York City venture capital ent problems, so there’s not a single comfirm Insight Venture Partners, eventually pany in Philly I can think of that I’ve ever noticing investment trends and decid- lost a customer to… If anything, we share ing to have a go at the market himself, this bond. It’s to everyone’s benefit when first locating the company in Camden we have a local company that becomes a before hopping across the river to Center success story — we have motivation to see City. The result of the Philadelphia leap each other succeed.”

How First Round Capital’s presence of faith has Moore’s company recently being highlighted by not just the New will interact with this dynamic remains York Times, but fellow colleagues like Mr. to be seen.

“I would hope that it attracts other folks Hillman, who declared that Philadelphia would be a “much better place if there to set up a presence here, whether it be were a hundred startups here like [RJ a branch office or some other funding Metrics].” But the bulk of the company’s sources to look at this area,” said Joel success, said Mr. Moore, has more to do Frisch, co-founder of employee schedulwith the unique culture of Philadelphia’s ing software company ReadySetWork. tech startup scene and breathing room as “The only thing is, [Mr. Kopelman’s] a new company in the city. movement is viewed as, ‘Josh is in Philly, “There are a lot of companies here, but so Josh is going to see what’s going on, and if he finds something else we’ll join him.’ … I could see a short-term scenario where people will say, ‘Oh, well First Round Capital is here, and if they can’t find a deal, then there’s none to be had.’ And that, I think, is a common misconception with Philadelphia.”

“Philadelphia will never be Silicon Valley,” added Mr. Hillman.

“Being a city that aspires to be another city, you’re going to lose. It just doesn’t work that way; it’s like trying to be another person — you can’t do it. But what can win, is The new home of First Round Capital, at 4040 Locust Street in being a better version of West Philadelphia, is the centerpiece of an ongoing discussion surrounding entrepreneurship in the city. (REGION’S BUSINESS PHOTO) ourselves.”

FIRST ROUND CAPITAL PORTFOLIO

First Round Capital supports more than 100 young, software-based companies — from Adaptly to Zoomin. Here are some of the ones you should know

Adaptly

Adaptly, a social media ad-buying company, offers a unified buying platform across all social networks.

Backupify

Backupify uses “the Cloud” to secure online accounts on Gmail, Facebook, Twitter and Wordpress.

Clipboard

MightyText

Using MightyText, users can send and receive SMS text messages from their computer instead of their Android phone.

MotherKnows Using MotherKnows, parents have

access to their children’s online Personal Health Records (PHR), which includes critical information such as upcoming immunizations, blood type, allergies, medications, height/weight charts, and a record of doctor visits.

PackLate PackLate allows travelers wait until the Clipboard allows its users to save and share full elements of web pages. The clips are often appear identical to the original page, and links continue to work properly.

Get Satisfaction

last minute by showing price changes as a vacation date nears.

PublicStuff PublicStuff allows concerned citizens to

Get Satisfaction is a people-powered service that uses crowdsourcing to provide better support for products and services.

Life Shield

LifeShield is the first national, professional-grade and professionallymonitored wireless security system for total home security.

Mint

Mint, a free service, securely connects data from your bank, credit union and credit cards and provides up-to-date and accurate assessments of all aspects of your financial life in an intuitive format online and on your smartphone.

file requests with their local government, housing building or any facility if something needs to be fixed.

Uber Uber, an on-demand car service, calls for a private driver through iPhone, SMS, and web requests.

UrbanSitter UrbanSitter uses your existing social

networks like Facebook in order to match families with babysitters. Parents looking for a night out can search for and schedule a sitter online. Potential babysitters can post their credentials and availability.

34

4 OCTOBER 2012

REGIONSBUSINESS.COM

Shale Bringing Jobs, Savings to Region

BY CHRIS WEEDEN

W

hat once seemed destined to be another decaying relic of the past was suddenly reborn as a visionary of the future.

Sunoco wanted out of oil refining, and an August 2012 shutdown seemed imminent. Instead, private equity firm The Carlyle Group stepped up with a plan and assumed control in September, saving 850 jobs with growth in mind.

The reason is Marcellus Shale natural gas. The Carlyle Group envisions a way to retool the 146-year old refinery, the largest on the East Coast — processing 10 million gallons of crude oil daily — into one that can transform nearby natural gas into fuels, chemicals and electricity while retaining oil production capabilities.

Throughout Pennsylvania, natural gas is creating jobs, saving money, and in time, developing a new, less expensive transportation infrastructure.

Given Governor Tom Corbett’s muchpublicized support of drilling in the state in order to access the energy in the Marcellus Shale territory, it is no surprise why he made the appearance as the refinery’s ownership changed hands. The governor was back in the area again less than a week later when the Marcellus Shale Coalition held its annual convention in Philadelphia.

“Marcellus Shale is a game-changer for all of Pennsylvania,” Lieutenant Governor Jim Cawley said. “It is changing the way we all do business.”

A Penn State University study estimated that the Shale contributed $5.3 billion

MARCELLUS SHALE IS A GAME-CHANGER FOR ALL OF PENNSYLVANIA. IT IS CHANGING THE WAY WE DO BUSINESS.’ —LIEUTENANT GOVERNOR JIM CAWLEY

The old Sunoco refinery in Marcus Hook will remain open and will be used as an “energy hub in the Northeast,” Carlyle Group Managing Director Rodney Cohen said in a statement. The move saved 850 jobs and will create up to 200 new, permanent jobs, according to Mr. Cohen.

(CHRIS CONNELLY)

in economic activity in 2010, which then indirectly generated or induced another $3.87 billion for the Commonwealth. It also saved PA residents $630 million in natural gas expenses because of a 12.6 percent reduction in price.

By keeping the old Sunoco plant open and being able to couple it with the controversial Shale digging efforts, Gov. Corbett earned a two-fold victory. According to the bureau of labor statistics, unemployment in the city had improved to 9.6 percent in April but rose to 11.6 percent in July.

By keeping the Sunoco refinery open, 850 jobs were saved.

The restoration will create 100-200 new, permanent jobs.

The Carlyle Group, which took over the plant, declined to com-

ment, but in a press release, Managing Director Rodney Cohen said, “Together we’ve re-imagined the Philadelphia refinery and its role as a critical energy hub in the Northeast. This joint venture will keep one of the region’s most important economic engines up and running.”

“The refinery will be a reliable and critical supplier of fuels to the regional market through its new business structure and improved crude oil sourcing. In addition, the refinery’s exceptional location and infrastructure will enable the joint venture to create new business opportunities related to Marcellus Shale natural gas fields.”

But how much growth will the Marcellus Shale create? In the state, thousands.

However, with the easternmost-drilling pinned for the Harrisburg area, that means little to Philadelphia.

As negative job reports numbers continue to line the board across industry profiles in Philadelphia, encouraging trends exist. The trade, transportation and utilities segment has seen the largest growth, although it is marginal at best.

The number has fluctuated around a .5 percent increase monthly, and the Marcellus Shale figures to be a big reason why, mostly as residents and firms switch from their current fuel sources to natural gas.

Savings by the Philadelphia Gas Works, a city-owned utility, as well as Temple University and Lower Merion School District, are testaments to it, with each savings tens of thousands of dollars yearly, keeping shrewd operating costs at bay.

Economic incentives combined with the low price of natural gas and reduced carbon footprints are part of the reasons for the switch.

Philadelphia Gas Works (PGW) is offering customers who switch from oil to natural gas a $500 rebate. PGW itself installed a natural gas micro turbine that cost $1.2 million but will save the company about $130,000 annually. That is in addition to a $465,000 federal stimulus grant that was distributed by the Pennsylvania Department of Environmental Protection, according to The Philadelphia Inquirer.

That savings has gone in part to the

35

4 OCTOBER 2012

REGIONSBUSINESS.COM

MARCELLUS SHALE BY THE NUMBERS

$5.3 billion

Economic activity contributed by Marcellus Shale

$630 million

Pennsylvania residents’ savings in natural gas expenses, caused by a 12.6 percent cut in price

850

Jobs saved in Marcus Hook by converting the Sunoco Refinery for a natural gas “energy hub”

.5 percent

Monthly growth in the trade, transportation and utilities category of jobs

$1.2 million

Cost of PGW’s natural gas micro turbine, which will lead to annual savings of $130,000

$60,000 Temple University’s savings last year caused by switching to natural gas

$50,000

Annual savings by the Lower Merion School District from converting 58 of its 120 buses to natural gas

consumer.

“PGW has said price is lower to its customers because of the plentiful availability of natural gas,” Lt. Gov. Cawley said.

Those who had the foresight to make the switch have been enjoying the benefits for years. Fifty-eight of Lower Merion School District’s 120 buses run on compressed natural gas (CNG), and the school district saves about $50,000 annually, according to Gerald Rineer, the district’s transportation supervisor. The switch began in 1995, and the district has been lauded as a pioneer.

“The community is very supportive,” Mr. Rineer said, who acquired his current role in August 2011.

“They love that the buses are quiet and that they don’t smoke. They love the green technology.”

Mr. Rineer said part of that savings comes from the federal stimulus as well. And if Gov. Corbett and Lt. Gov. Cawley have their way, the annual savings will be even greater.

As part of the Pennsylvania Clean Transportation Corridor, the state aims to have a CNG pump every 50 miles within one mile of an interstate. This would be monumental for Lower Merion and other school districts that run on CNG. Currently, Mr. Rineer cannot send the most economical segment of his fleet on distant trips for sporting events and field trips because of the inaccessibility of pumps in the region; the school currently has its own on site and pays roughly $2 a gallon, as opposed to the $3.70-4 it currently spends on diesel and regular gasoline for the rest of its buses.

“Going forward the savings from the use of CNG should be significant,

Lower Merion converted 58 buses in its 120-vehicle fleet to run on compressed natural gas and has seen annual savings of about $50,000.

(LOWER MERION SCHOOL DISTRICT)

as well as the cleaner environment,” Mr. Rineer said. “Currently the infrastructure is not available for us to re-fuel our school bus fleet outside of our district boundaries. Once the fuel stations are in place we will be able to increase the use of CNG powered vehicles and with the cost per comparable gallon of CNG being about half that of the cost of diesel the savings will add up.”

A newer consumer of natural gas is Temple University, which also utilizes a natural gas fleet. After making exploratory efforts in 2001, the school became much more serious in 2009 and saved $60,000 in its last fiscal year, said Mark Gottlieb, superintendent of services operations.

“Economics was a factor,” said Mr. Gottlieb, who has been in his role for 11 years. “It was a sustainable issue.

We’ve become very involved with a nationwide group of universities

using sustainable energies and one of their requirements is reducing the carbon footprint…We project close to 30,000 gallons of natural gas gallon equivalent. We pay $1.10 a gallon.”

Local natural gas is an attractive alternative, especially with the instability, even volatility, of oil prices.

Lehigh Gas Corporation opened a CNG pump at Concordville Exxon, 1130 Baltimore Pike, its second location, with the first in State College.

Plans are to open more in King of Prussia, Ardmore, Exton, Harrisburg, and Center Valley, Sil Lutkewitte, alternative fuels manager, told The Philadelphia Inquirer.

“This is creating tens of thousands of direct and indirect jobs,” Lt. Gov. Cawley said. “It is revitalizing towns and communities. The governor and I feel it’s not enough we drill the gas but that we use it as well.”

36

4 OCTOBER 2012

REGIONSBUSINESS.COM

FINE ESTATES PREVIEW

Private Estate Makes For Prime Location For Raising a Family

This $2.68 million, luxurious grand estate home — complete with six bedrooms, five full bathrooms and two partial baths — sits on 14.59 acres on McKean Road in Ambler, Pa. This colonial’ s park-like setting is found at the end of a private lane and has maximized views of the superb grounds.

A grand entrance hall, living room with fireplace, elegant dining room, library, grand family room and sunroom round out the main living spaces. The master enjoys a marble bath, dressing rooms, Botticinio marble, jetted tub and a heated floor.

There are also five additional bedrooms, a computer hallway and a finished third floor.

This spectacular property features remarkable architectural details throughout, including dramatic high ceilings, gourmet eat-in kitchen with soapstone counters with a 36-inch farmhouse sink, Mahogany front door, Niermann Weeks lighting, and a massive steam shower in the basement.

Also featured are Timberland shutters, six zoned

Weil McClain heat system, a central vacuum, a sprinkler system and much more. Relax at the outdoor pool, hot tub or patio with gas hook up. This is a great place to raise a family.

For complete real estate information, call Linda Gedney, of Prudential Fox and Roach, at 215-205-0181

WRIGHTSTOWN TOWNSHIP Custom home on 2.6 acres ~ Over 5,000 square feet of luxury living space ~ Amazing finished lower level ~ 3 car attached and 5 car detached garages~ $725,000

UPPER MAKEFIELD TOWNSHIP Exceptional 5 yr young custom home with superb details & amenities ~ 5 bedrooms & 5.1 baths ~ Custom cabinetry and tile work, arched entries, Lyptus hardwoods, lavish master suite, finished walkout basement & more ~ $1,500,000

WARWICK TOWNSHIP Car enthusiasts and hobbyists must see!

Two homes and outbuildings for the price of one!

Historic stone home plus Carriage/Tenant house ~ Beautiful Bank Barn ~ Corn Crib ~ 2.11 acres ~ $539,900

Belamour

NEW CUSTOM CONSTRUCTION UPPER MAKEFIELD TOWNSHIP, PA 29 beautiful home sites (10 magnificent lots still to choose from) 1-2.5 acres Just 3 miles from I95 Pisani Builders Associates, Inc.

DOYLESTOWN TOWNSHIP New custom construction by Michael J Sullivan, Inc. ~ PERMITS ISSUED ~ BUILDING HAS BEGUN 1.25 acre lot ~ 3,400 square feett ~ 3 1/2 bath ~ 3 car garage.

Quality amenities included ~ $599,000

Building packages starting from $1,200,000.

Off-site locations also available.

DOYLESTOWN AREA Design your new home today with Lykon Custom Builders on 1.74 acre estate lot next to preserved land & open space ~ Central Bucks Schools ~ Personal attention from design to finish ~ Other lots available ~ from $649,990

EastSide,West Side,We’reAllAroundTheTown

East side condos: Pier 3, Pier 5, 22 Front, Society Hill Towers, The Bank Building,The Lippincott at Locust Walk,Independence Place, Hopkinson House, 220 W. Washington Square, Center City One.

West side condos: Academy House, The Rittenhouse Savoy, The Lanesborough,The Warwick, Parc Rittenhouse,The Barclay, The Dorchester, 250 S.18th Street,1820 Rittenhouse Square, 1830 Rittenhouse Square,1900 Rittenhouse Square, 220 W. Rittenhouse Square, The Rittenhouse, Rittenhouse Plaza, Wanamaker House, 250 S.17th Street, The Philadelphian.

The Bank Building: Brand new 2 bedroom plus den, 2.5 bath condo with high-end contemporary kitchen and baths, custom finishes throughout. 2025 square feet. $1,100,000.

220 West Washington Square: Entire floor home with 360 degree views including a Washington Square vista, amazing entertaining space, no detail has been left undone. 3720 square feet. $1,995,000

Society Hill Towers: Completely renovated and furnished corner one bedroom with dramatic city views, chef’s kitchen and designer bathroom. 803 square feet. $379,900.

The Barclay: 3 bedroom, 3.5 bath showplace, marble foyer, open living space, chef’s kitchen, high end appointments throughout. 3293 square feet. $2,900,000.

The Warwick: 3 bedrooms, 3 baths, 270 degree city views, open kitchen, lots of entertaining space, marble bathrooms. 2000 square feet. $1,050,000.

Parc Rittenhouse: Brand new 3 bedroom, 3 bathroom condominium with all rooms overlooking Rittenhouse Square, lavish finishes throughout. 1709 square feet. $1,475,000.

AllanDombRealEstate

PHILADELPHIA’S LARGEST SELLING CONDOMINIUM REALTOR ® WE COOPERATE WITH ALL REALTORS® 1845 Walnut Street, Philadelphia 215.545.1500 allandomb.com domb@allandomb.com

Q&A

4 OCTOBER 2012

REGIONSBUSINESS.COM

DAVID HARDY’S

CLASSICAL APPROACH

The CEO of one of Philadelphia’s newest charter schools has a plan for the boys — and, in the future, girls — of the city, but the state needs to meet him halfway.

What’s the elevator pitch for Boys’ Latin?

Our school gives students who can’t test into the special admissions [public] high schools a chance to get a college preparatory education.

Do you think that charter schools are crucial for Philadelphia education?

Charter schools are important because most of the educational innovation that you’ve seen has come from them — the extended day, extended school year, Saturday school, schools based on a theme, ...they have very specific missions.

When you have students who come to the school for what that school does, it makes them much more willing to cooperate, follow the rules and they have much more of a chance of success.

What do charter schools need from the state legislature and the governor?

The first thing we need is an independent authorizer. Right now charter schools are chartered by the school district in which they reside.

That’s kind of like having a McDonald’s approve all of the Burger Kings — it just doesn’t work. Charter schools need somebody who is not connected to the local school district to make the decision to judge the validity of a charter application.

Are charter schools the future

of urban education?

I think it is going to be a long time before the majority of students don’t go to traditional public schools. If the city gets enough charters, it will put pressure on those public schools to change the way they operate. A rising tide lifts all boats — that’s a very crucial piece of this.

How does the presidential election impact charter schools?

I don’t think its going to matter who the president is. This train has left the station already. No president is going to come in and be against charter schools.

Anything you wish the school had done differently?

I wish we had started out with a middle school. If we had started with one, we would have had them much more prepared for high school. We have guys who come in who have kind of taken middle school off because it hasn’t tested them.

What’s the next big step?

We just got approved for a middle school. It is going to challenge the guys so that by the time they get to high school — they’ll be prepared — whether it’s at this high school or another. The middle school will start September 2014 in the new facility. The step after that is Girls’ Latin.

— Photo & text by Rebecca Savedow

41

42

4 OCTOBER 2012

REGIONSBUSINESS.COM

CHAMBER REPORT

PA. CHAMBER OF BUSINESS AND INDUSTRY

PHILADELPHIA INTERNATIONAL DRAGON BOAT FESTIVAL

Chamber To Hold License, Inspection Workshop for North Philly Businesses

Survey: PA Businesses Expanding, Leaders Plan On Additional Hiring A recently released survey of CEOs and business leaders conducted by the Pennsylvania Chamber of Business and Industry revealed that Pennsylvania’s businesses are more optimistic about the state of the economy than any time in the past five years.

About 21 percent of business leaders reported increases in their workforces in the past 12 months, with 17 percent indicating plans to hire more employees in the coming 12 months.

Pennsylvania’s unemployment rate climbed from 7.4 percent in May of 2011 to 8.1 percent in August, where it has hovered since then.

Businesses surveyed said growth in health care costs and taxes were their primary economic concerns and indicated.

Chamber President and CEO Gene Barr attributed slow growth to uncertainty over federal tax changes, particularly federal health care.

GREATER PHILA. HISPANIC CHAMBER OF COMMERCE

(R. KENNEDY FOR GPTMC)

Fundraising Dragon Boat Festival Welcomes 150 Teams to Philly The Philadelphia International Dragon Boat Festival will return to the Schuylkill River for its 11th year October 6, starting at 8 a.m. and ending around 5:30 p.m.

More than 150 teams will race fiberglass dragon boats down the 500-meter course in an effort to raise funds for cancer research at Fox Chase Cancer Center.

Dragon boats, originally from ancient China, are the world’s largest flat water racing canoes, propelled by 20 paddlers, a drummer and a steersperson.

Last year’s race raised $132,000 and drew thousands of participants and spectators to Philadelphia.

The Greater Philadelphia Hispanic Chamber of Commerce and the Commerce Department will host a License and Inspections workshop October 24 to educate North Philadelphia business owners on the opportunities and services provided by the Department of Licenses and Inspections.

Specific topics include guidance on code compliance for small business owners and how to handle code violations. Wells Fargo and the City of Philadelphia sponsor this event.

ITALY-AMERICA CHAMBER OF COMMERCE

Chamber Holding Free Breakfasts as Part of Dual Citizenship Program The Italy-America Chamber of Commerce of Greater Philadelphia will host its monthly free breakfast series event as part of its Dual Citizenship Program from 7:30 to 9 a.m.

November 8 at the Bellevue Building in Philadelphia, 200 South Broad Street., Suite 700.

4 OCTOBER 2012

REGIONSBUSINESS.COM

43

Debate Mythology Bigger Than Actual Impact on Elections

Politically Uncorrected™ is published by G. Terry Madonna (above) and Michael L. Young (below) twice monthly, and previous columns can be viewed at http://politics.fandm.edu.

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

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

then the same H W Bush lost Here it comes.

Beginning on October 3 and continuing a debate to Clinton in 1992 through October 22, the rapidly closing 2012 because he cavalierly glanced presidential campaign will host a series of at his wrist watch during the fall debates. The first is likely to be the most debate expressing what some heavily watched event of the long presidential interpreted as uncaring arrocampaign. The second and third will follow gance; finally in 2000 Al Gore on October 16, and October 22, respectively. famously damaged his camThe vice presidential debate occurs on Octo- paign with his audible sighs at G W Bush’s debate answers, ber 11.

Not surprisingly, both campaigns approach insuring voters would reject the debates at fever pitch. In a highly polar- the tedious Gore for the more ized, emotionally charged, hard fought race, likable Bush.

The trouble with all this the Obama camp believes that a solid mistake free performance will give them four more “history” is that there is pre- Did Richard Nixon’s poor performance during a televised debate really cost years. The Romney team believes they can cious little evidence that any him the election? still sell its candidate to the American people of it actually happened. In the as a viable alternative to incumbent Obama. most celebrated debate myth, As the challenger, Romney has the higher Kennedy – Nixon, Kennedy hill to climb, but Obama, as incumbent, the was almost surely gaining rapmost to lose. With the election itself on the idly with Nixon going into the line, the debates are the defining moment of debate and that trend simply the campaign. continued after the debate. In Or maybe not! the only slightly less famous Make that definitely not. myth, Ford’s gaffe on Eastern Indeed, everything we know about presi- Europe certainly didn’t cost him the race. In fact, he went dential campaigns and debates suggest that the debates will not be the defining from 15 points down before the debates to only 5 down moment of the campaign, will not determine who wins and who afterward. And to use just one more example, Gallup Gerald Ford (right) stumbled on an answer about Eastern Europe in a loses and, will not even significantly impact the has estimated that the famous debate with Jimmy Carter.

Dukakis goof in 1988 had no margin of winning or losing.

But arguing that debates are rarely if ever The conventional wisdom that debates can effect at all on the polls done in that race. decisive is not arguing they are also unimportbe decisive forms the core of With few exceptions, most ant. On the contrary, debates are important a widely believed mythology scholars agree that the conven- and do matter. But they matter much difabout presidential debates – one full of drama, climactic tional wisdom about debates ferently than conventional wisdom teaches. moments, unforgettable punch WITH FEW as game changers is hokum. While debates rarely change opinions, they lines and riveting history.

One respected political scien- often do act powerfully to mobilize voters EXCEPTIONS, According to the myths, James Stimson, surveying pre-existing opinions. They make those votMOST SCHOLARS tist, Kennedy came from behind to the debates from 1960 to 2000 ers comfortable doing what they have already beat Nixon in 1960 because of AGREE THAT THE has concluded: “there is no case decided to do before the debate. his charismatic use of TV; Ford CONVENTIONAL where we can trace a substantial Contemporary political myths, however, hurt his campaign in 1976 with WISDOM ABOUT shift to the debates.” In the same are seldom confused by facts. Despite all the Jimmy Carter by flubbing an DEBATES AS GAME vein, two other political scientists, evidence that debates are not decisive, the answer about Soviet dominaRobert Erikson and Christopher 2012 debates, nevertheless, will be staged CHANGERS IS Wlezian have written that “the as dramatic spectacles, vivid life and death tion of Eastern Europe; Reabest prediction from the debates struggles between the warring candidates, gan beat Carter in 1980 after HOKUM.’ is the initial verdict before the with the future of the republic resting on the reassuring viewers he wasn’t a debates.” In short, if a candidate outcome. Maybe that’s the way it should be. wild man; Dukakis lost to H W Bush in 1988 by failing to be properly emotive is ahead or behind going into the debates, that In show business as in politics, the show must when a moderator asked him a hypothetical candidate will be ahead or behind after the go on. And in 2012 the debate show is the only show we have left. question about rape and the death penalty; debates.

44

4 OCTOBER 2012

REGIONSBUSINESS.COM

OPINION

Marcellus Shale an Economic Boom

Louis D. D’Amico is the President and Executive Director of the Pennsylvania Independent Oil & Gas Association. Learn more at PIOGA.org.

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

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

In recent years, the facts about Pennsylvania’s rapid emergence as one of our nation’s most important energy producers have been lost in the face of sensationalized claims about environmental impacts and dangers that, once evaluated, are typically found to be minor in nature, isolated in incident, and resolved through preventive and corrective action by our industry.

The chronology of facts speak for themselves. The first vertical Marcellus Shale well was drilled in 2004. In 2008, Pennsylvania was importing 75 percent of the natural gas it consumed each year, and development activity began to increase, with 334 shale wells drilled in the 12-month period. By the end of 2011, natural gas from Pennsylvania’s shale wells met all of our needs, with surplus gas marketed to other states in the region.

This drilling activity has also involved an unprecedented private capital investment in Pennsylvania, with tens of thousands of new jobs, an estimated billion dollars in tax payments to state and local governments, and even more to landowners in the form of lease and royalty payments. Additionally, Pennsylvania’s just-implemented impact fee generated more income – $205 million, designated for use by municipalities and counties, and for selected state-wide environmental programs – than anticipated for its first year.

Of course, the core of this economic activity is taking place in areas outside of the Delaware Valley, in regions that have struggled economically for decades. What can people and businesses expect in southeastern Pennsylvania and beyond from this energy boom?

The answer is “a great amount,” for individuals, businesses and our entire economy.

First, it is impossible to dismiss the environmental benefits of increasing natural gas usage for electricity generation. The U.S. achieved its lowest level of carbon dioxide emissions since 1992 this year, primarily due to a switch from coal to natural gas by a number of utilities. That trend is expected to continue. PJM, the regional transmission organization that coordinates the movement of wholesale electricity across 13 states and the District of Columbia, estimates 18,000 megawatts of coal-generated capacity will be retired in the future, with a significant amount of that replaced by natural gas.

The benefits to individuals and families also cannot be overlooked, in the form of lower energy bills and the transferring of

money saved toward the purchase of other goods and services. The Pennsylvania Public Utility Commission reported that energy costs in Philadelphia have dropped more than 45 percent, and consumers around the state have already saved approximately $1 billion, all thanks to the recent growth of shale gas from the Appalachian Basin.

Economic benefits experienced by businesses in many parts of the Marcellus Shale footprint came more quickly and easily in the past several years, primarily due to the region’s 150-year history of producing oil and natural gas. New service providers and existing businesses in northcentral Pennsylvania rapidly ascended the learning curve and are now meeting the needs of the industry, a process that is also underway in areas outside the Appalachian shale regions, including southeastern Pennsylvania.

Those businesses are researching and identifying the goods and services needed by the exploration and production companies and their existing service providers, matching their skills with those needs and hiring people with direct oil and gas experience.

Most important, these businesses are recognizing the need to establish and maintain a presence in the regions of the state where activity is taking place.

It is a process that takes effort and time; but time is on the side of Pennsylvania’s shale resources, with estimates that the full development of the Marcellus Shale alone (separate from the emerging Utica Shale) will take several decades, even as long as 100 years, according to some geologists.

Finally, the tri-state area is entering a new era of industrial development thanks to Pennsylvania’s growing supply of natural gas, now being realized with the revival of operations at the former Sunoco and Conoco Phillips refineries in the region. In the case of the Trainer facility, a plan is underway to refine less-expensive oil from North Dakota’s Bakken Shale formation, further evidence of the positive effect our country’s energy surge is having on multiple regions and industries.

Only time will tell what is next, but it is a very safe bet to assume the Delaware Valley’s pharmaceutical and chemical industries are the next to benefit from consistent low natural gas commodity prices.

It has become a somewhat overused expression, but there is little doubt that energy from shale in the United States is a “game changer,” and the entire Commonwealth is fortunate to be in the right place to play the new game for decades to come.

4 OCTOBER 2012

REGIONSBUSINESS.COM

OPINION

45

Don’t Buy Fuzzy Poll Math, Pennsylvania a Swingin’ Place to Be

W

hen pondering the seemingly endless stream of polls related to whether Mitt Romney or Barrack Obama will win Pennsylvania in November, the two most important voices to listen to are George W. Bush and Mark Twain.

It was Mr. Bush who introduced us to the concept of politics and “fuzzy math.”

It was Mr. Twain who taught us that there are lies, damn lies and statistics. Certainly, polls would fit into that category, too.

If only we could get the two together to help us understand the current state of affairs.

Since early on in the interminable election cycle, we have been told that Pennsylvania would be a crucial Battleground State, a swing state that could go either way.

That seemed certain.

That certainty, however, is now a matter of some debate, because apparently it is apparently impossible to get the same results from two different polls.

A recent Franklin and Marshall poll showed President Obama with a comfortable 52-43 edge over Mr. Romney.

But a Susquehanna Polling & Research poll showed a narrow 47-45 edge to the president.

Thumb through another handful

of polls and you’ll find the president with a comfortable lead, a narrow lead or slightly behind Mr. Romney.

Certainly sounds like fuzzy math.

Go online and check out the electoral vote estimates and things get fuzzier.

A recent trip across cyberspace saw Pennsylvania as ranging from “solid for Obama” (The Huffington Post with “100% confidence” of an Obama lead) to a near dead heat (270towin.com).

In the meantime, both candidates have all but vacated the state and the state’s television airwaves, which some pundits see as proof that the battle for the votes of Pennsylvania is over.

That should summon the refrain from Mr. Twain, because that simply isn’t true.

We are still a month away from casting ballots and so much can change in a day, let alone a month.

Tune out the polls because, at the end of the day, they don’t mean a thing. And enjoy your television being free of presidential ads, because that is likely to change dramatically - before you vote.

Because Pennsylvania is still very much in play and both Mr. Obama and Mr. Romney will find themselves courting our voters as this marathon nears the finish line and we’ll finally get some clarity.

EDITORIAL BOARD CEO AND PUBLISHER | JAMES D. MCDONALD EDITORIAL DIRECTOR | KARL M. SMITH ASSOCIATE EDITOR | TERRENCE CASEY © COPYRIGHT 2012 INDEPENDENCE MEDIA 600 GERMANTOWN PIKE, SUITE 400 PLYMOUTH MEETING, PA 19462 610.940.1656 | WWW.REGIONSBUSINESS.COM

Drop Bill Jeopardizing Our Public Spaces Everyone has a favorite park.

Somewhere you go for a walk on a crisp fall day, for a picnic when the weather is nice, or to take your kids to toss a ball. You need to know about a dangerous proposal to allow the sale of parks so you can help protect your favorite park. A bill about to be passed in the state legislature jeopardizes the future of Pennsylvania’s parks and other public spaces.

Bill 2224 removes over a century of legal protections contained in the Public Trust Doctrine and preserved in Pennsylvania’s 1959 Donated or Dedicated Property Act. This stealth legislation removes language in the Act that will give control of our well used parkland, public buildings, and easements to elected officials to do with as they please without judicial oversight.

For decades the County Orphans Courts have overseen the sale of publicly dedicated open space, parks and buildings, carefully weighing the merits of any sale against the scope of the public’s use of those spaces. This oversight creates a public forum where the voice of the average citizen can be heard.

Without it, deals between municipal officials and private interests can be made behind closed doors and without the input of the people whose parks would be most impacted by these decisions.

Late Monday, Senator Pileggi attempted to address concerns about the lack of public input by amending the bill with a public meeting requirement. But this requirement

is only a token effort at appeasing the organized and growing opposition to this bill. If municipal leaders become intent on selling a park, would one public meeting change their minds? The amended bill still has the same fatal flaw as the original one: it removes court oversight of the sale of public spaces.

Citizens across the state are contacting legislators about HB 2224 which would allow a fire sale of public buildings, parks, trails, agricultural easements and open space with no public participation or legal recourse.

They realize that this stealth legislation will take the municipality out of its role as trustee of public spaces and gives it the role of the owner, with complete and unchallengeable authority to dispose of land as it sees fit.

This proposal needs to be scratched. If there is a pressing and substantial need to improve the process by which municipalities can sell public spaces that no longer serve their practical purpose, then new language needs to be drafted that maintains oversight of the process so that the public’s interests are protected.

Mary Tracy is the executive director of Scenic Philadelphia.

JOIN THE CONVERSATION Send comments, letters and essays to feedback@regionsbusiness.com. Opinions expressed by guest writers do not necessarily reflect those of Region’s Business.

46

4 OCTOBER 2012

REGIONSBUSINESS.COM

BY THE NUMBERS

51

Number of months that Pennsylvania’s unemployment rate was below the national average before August 2012.

.7%

Increase in the state’s unemployment rate from May 2012 (7.4%) to August 2012 (8.1%).

$10,700,000

5

Amount Pennsylvania is ahead of projected totals for tax collections for fiscal year 2012-13, according to the Department of Revenue. Sales tax collections are down $70 million, but other taxes are more than making up the gap.

69,144

16

Attendance at Sunday night’s Philadelphia Eagles-New York Giants game. The Eagles honored Brian Dawkins at halftime.

Years played in the NFL by Brian Dawkins, 13 of them with the Philadelphia Eagles, who honored him Sunday night.

64,000

17%

Percent of respondents to a Pennsylvania Chamber of Business & Industry survey who say they expect to do more hiring in the next 12 months.

21%

Percent of respondents to a Pennsylvania Chamber of Business & Industry survey who say they increased their workforce. in the past 12 months.

32%

Percent of respondents to a Business Outlook Survey by the Philadelphia Federal Reserve on production plans for manufactures that said they plan to increase their workforce in the next 12 months.

Number of states with no statewide sales tax: Alaska, Delaware, Montana, New Hampshire and Oregon. There are 14 states with a rate higher than Pennsylvania’s 6% sales tax, including seven states with a 7% tax.

24

Number of Pennsylvanians who have received unemployment benefits since Governor Tom Corbett took office in January 2011.

Years since a Republican presidential candidate won Pennsylvania George H. W. Bush.

COURTESY OF THE PHILADELPHIA EAGLES

$4,600,000

Amount spent on wine and spirits by restaurateur Stephen Starr in 2011, an average of $287,500 for each of his 16 establishments.

20,000

Businesses licensed by the Pennsylvania Liquor Control Board to handle alcoholic beverages.

600

State-owned “Wine & Spirits Shoppes”operated by the PLCB in Pennsylvania.

5

Ounces in a standard glass of red wine.

According to guidelines from the Centers for Disease Control a standard drink contains 0.5 ounces of pure alcohol.

5

Number of glasses of wine in a standard bottle of wine (750 mil or 25 ounces).

42.5%

ED YOURDAN

Poverty rate for Camden, N.J., making it the most impoverished city in the country according to 2011 Census data. Reading, Pa. was on top of that list, but is now sixth with a 40.1% poverty rate.

$92,110,000,000

The value of Comcast, Corp., the largest publicly held company in Philadelphia. Comcast employs about 107,000 people across the country.

A 20 minute drive turns married with children into entourage. step into epic 20 minutes from Philly

must be 21. gambling problem? call 1.800.gambler.

parxcasino.com

New Look.

New Energy.

Renewed Commitment.

Brokerage Concepts, Inc. has a new look, but our company's dedication to excellence remains.

We look forward to delivering the quality service and support our brokers and partners have come to expect from us.

We are committed to your success and we are eager to work with you.

Chris Moyer 610.491.4824 Jane Hesler 610.491.4978 801 Lakeview Dr. ™ Suite 301 ™ Blue Bell, PA 19422