11 april 2013

WILL THE JERSEY SHORE REBOUND? NEW NAME EMERGES FOR MAYOR

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REGION’S BUSINESS

PHILADELPHIA EDITION

A JOURNAL OF BUSINESS AND POLITICS

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11 APRIL 2013

REGIONSBUSINESS.COM

CONTENTS

3

13 Municpal Pension

1519 Walnut Street

Problem Must Be Addressed Now

The legislature returns with a jam-packed agenda for the next six weeks, but they need to find room for this critical issue.

!

11 Nutter Vetoes

Paid Sick Leave ! After all the public back-andforth, Mayor Nutter did the inevitable and squashed the plan for mandatory paid sick leave.

YEAR OF THE INNOVATOR

14 Facebook COO to Philly Crowd: Do What Scares You

Sheryl Sandberg’s book tour brought her here, where she encouraged people to do what scares them.

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15 Mega-Pong

18

The Stakes Are High

! Each applicant for the city’s final casino license says they have the best plan.

Now the public has its say and it’s not clear who will emerge when the dust settles.

21

Is Atlantic City On Its Deathbed?

The city’s boom & bust cycle continues and another Philadelphia casino might be the blow that finally finishes it off. !

A Drexel professor has planned a larger-than-life game of Pong on the roof of the Cira Centre.

!

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Candidate for Mayor ! Businesswoman Dana Spain is considering a run for Philadelphia Mayor in 2015. If she jumps in, she will be joined by Tom Knox, who abandoned plans to run for governor in 2014.

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11 APRIL 2013

REGIONSBUSINESS.COM

EDITOR’S DESK

It’s Human Nature: Shore Will Change

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

You can contact him at ksmith@regionsbusiness.com.

ot being a native of Southeastern Pennsylvania, it took some time to come to understand and appreciate some of the area’s quirks.

As a road warrior and fan of the Interstate System, I was baffled by the term Blue Route and why people insisted on calling a stretch of Interstate 76 the Schuykill Expressway, especially since there seemed to very little “express” associated with the stretch of road.

Mustard on pretzels, wrestling with what constituted a “real” cheesesteak and whether you should go “wit” or not, deciphering the SEPTA system and realizing that if you weren’t going into or out of the city, you were driving, all of this was part of learning to love my adopted home.

I could explain, with some success, most of these things to my friends back in the Midwest. But there’s one thing that they couldn’t really seem to fully comprehend and that’s the New Jersey Shore.

And, yes, that has only been complicated by the faux-reality show.

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I cannot get people to understand that it’s not a matter of if you go to the Shore during the summer, only a matter of which island and if you owned a place, were renting or managed to snag a friend’s place.

So when they heard about the destruction in the aftermath of Hurricane Sandy, they could not have possibly grasped the emotional impact, let alone the potential altering of an entire way of life. And, no, I don’t think that’s overstating it at all.

I worked along the Shore at The Asbury Park Press and the difference between tourist season and the rest of the year was jarring.

In March, I could fly across I-195 in no time and our entire department could saunter into any of a number of places for lunch without a care. When June arrived, the commute nearly doubled and the thought of venturing out of the building for any reason caused anxiety.

Everyone realizes the potential short-term impact. There is no way all of the Shore towns will be fully operational come Memorial Day when the tourists would normally arrive en

masse. Some folks will return, yes, because it is a force of habit. But those that don’t may find that they establish another summer habit, one that keeps them away from the Shore for years, or even permanently.

Our family used to a spend a week or part of a week in either Wildwood Crest or on Long Beach Island. We started spending time in the Poconos, though, and over time, we found that better suited us. Our routine had changed and we haven’t returned to the Shore.

No doubt, there will be others practically forced to try something new this year, either because their normal rental isn’t available or their favorite town isn’t really operational. If they enjoy that new place, the Shore will be in danger of losing a steady paying customer.

Let’s face it, human nature is to resist change because we are creatures of habit and breaking out of our routine is uncomfortable.

Sandy will force an uncomfortable change on many people this year, long after she’s gone, and those that try something different may find that they have a new routine.

11 APRIL 2013

REGIONSBUSINESS.COM

NAVY YARD

GSK Opens Office In Navy Yard Site

WEEKLY BRIEFING

What’s In The Neighborhood? Fishtown

LABOR

Union members were recently picketing near Haverford College and Merion Golf Club, the site of the 2013 U.S. Open.

The protests were held after workers allegedly told union members that they were in the country on guest-worker visas, working for $8 per hour and working without benefits or overtime pay, according to The Philadelphia Inquirer.

The report said Classic Tents had made offers that unions declined, and USGA said it is still negotiating with unions.

The U.S. Open will be held June 10-16.

TRANSPORTATION

Report: Virgin America Named Best US Airline

Virgin America was named 2012’s best airline in the nation in a report by Wichita State University and Purdue University.

Philadelphia became Virgin America’s 17th destination in April 2012.

United Airlines was last on the list of 14 airlines, largely due to problems with its merger with Continental.

SMALL BUSINESS

Small Business Owners Plan To Delay Hiring Small and mid-sized business owners plan to delay hiring new employees or seek new loans amid cautious optimism about the economy, according to the latest findings of the PNC Economic Outlook survey.

The findings reveal about one in four are highly optimistic about their own company’s prospects during the next six months, up from 23 percent last fall.

Nearly half expect sales to increase during the next six months — on par with the previous 46 percent.

GlaxoSmithKline officially opened its new double LEED platinum certified facility in Philadelphia’s Navy Yard Saturday.

GSK has signed a 15.5-year lease at the building, which includes a four-story central atrium, a monumental stairway, a coffee shop, cafeteria, fitness center, meeting centers and a large multi-purpose room.

US Open Involved In Labor Dispute

5

SugarHouse Casino in Fishtown

Like its hip neighbor Northern Liberties, Fishtown has quickly become one of the coolest sections of Philadelphia, thanks to an influx of quality restaurants, inventive bars, impressive music venues and forward-thinking art galleries.

Philadelphians have found new and innovative uses for the Fishtown section of the city ever since William Penn made peace with the Lenape Indians there in what’s now Penn Treaty Park.

It’s the only place in the city where, in the same evening, someone can buy a custom-made guitar, drink craft beer while playing Tetris, eat stellar Yugoslavian food and visit the world’s only pizza museum.

Fishtown’s Frankford Avenue Arts Corridor serves as home base for many of the city’s rising artists, and both tourists and residents can take in new gallery offerings every First Friday along the avenue and its environs.

Like many sections of Philadelphia, the borders of Fishtown are subject to debate, though the eastern border has always ended at the Delaware River.

On the west, the border runs down Laurel Street to Front Street before moving north on Front Street to Norris Street, and to the south, Fishtown begins where Frankford Avenue, Laurel Street and Delaware Avenue meet.

Depending who you ask, the north part of Fishtown ends either at Norris Street, York Street or Lehigh Avenue.

Folks in Center City looking to spend a day or evening in Fishtown should head northeast by snagging a cab, biking it or taking SEPTA’s Market-Frankford elevated rail line (known to locals as “the El”) to the Girard Avenue stop.

Those in the Fairmount/Art Museum section of the city can take the recently restored trolley system that runs on Girard Avenue.

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WHAT’S IN TOWN?

Restaurants/Bars ! Memphis

Taproom, 2331 E. Cumberland Street, MemphisTaproom.com ! Philadelphia Brewing Company, 2439 Amber Street, PhiladelphiaBrewing.com

Cafes/Markets ! Milkcrate

Cafe, 400 E. Girard Avenue, MilkcrateCafe.com

Music ! Johnny

Brenda’s, 1201 N. Frankford Avenue, JohnnyBrendas.com

58%

Small business owners who are optimistic about the U.S. economy

41%

Small business owners who are pessimistic about the U.S. economy

42%

Small business owners who were optimistic about the U.S. economy in the fall

Art ! Highwire

Gallery, 2040 Franford Avenue, HighwireGallery.com ! Little Berlin, 2430 Coral Street, LittleBerlin.com

Shops ! DiPinto

Guitars, 407-409 E. Girard Avenue, DiPintoGuitars.com

Parks/Recreation ! Penn

Treaty Park, Delaware Avenue and Beach Street, PennTreatyPark.org GPTMC

57%

Small business owners who were pessimistic about the U.S. economy in the fall Stuart Hoffman, chief economist at PNC, said three factors are holding back the economy: Continued uncertainty about federal spending, tax and deficit actions; hiring freezes and ongoing layoffs, particularly at the federal level; and continued limits on U.S. exports to Europe.

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11 APRIL 2013

REGIONSBUSINESS.COM

WEEKLY BRIEFING

St. Mary Emergency Expansion Celebrated

TOURISM

Right of Way Meeting Moves to Bucks Co. About 50 people from New York, New Jersey, Pennsylvania, Maryland, Washington, D.C. and Virginia were expected to attend the first Bucks County meeting of the International Right of Way Association April 10-12 at Peddler’s Village.

Attendees of the IRWA Region IV’s Spring Forum were to stay at the Golden Plough Inn, and more than 40 rooms were booked as of last week, according to Visit Bucks County.

The event was organized

by Joe Bottino, of Holland, Pa., who has been attending IRWA meetings for 25 years.

Officials cut the ribbon Tuesday to dedicate St. Mary Medical Center’s new Emergency Department.

The state-of-the-art emergency room is expected to officially help the first patients next Monday starting at 9 a.m., hospital officials said.

The original emergency room was only built to handle 54,000 people annually.

The new emergency room can handle the more than 72,000 patients every year, said Dr. Gary Zimmer, chairman of emergency medicine.

“Access to patient care has been improved, allowing us to effectively and efficiently treat the growing number of emergency patients,” Dr. Zimmer said.

The hospital also recently put a new “split-flow” staff model in place. Officials said the new model has cut down the time from when patients walk in the door to being evaluated to just minutes.

Tuesday’s opening was part of a $22 million multi-phase expansion plan to improve the hospital, which opened in 1973.

— Tom Sofield, LevittownNow.com St. Mary Medical Center CEO Greg Wozniak

TRANSPORTATION

SEPTA Adjusts Regional Rail Schedules

LEVITTOWNNOW.COM

New schedules are available now for SEPTA’s Lansdale / Doylestown, Manayunk / Norristown and Wilmington / Newark regional rail lines.

The new schedules took effect Sunday, April 7.

For the new schedules, visit SEPTA.org.

REGION’S BUSINESS A JOURNAL OF BUSINESS & POLITICS

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Everyone saves when your employees sit here.

RideECO is the new name for the commuter benefit program from DVRPC, which offers Easy Commute Options. As always, RideECO allows employers and commuters to save by putting pre-tax dollars towards public transportation fares.

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11 APRIL 2013

WEEKLY BRIEFING: ARTS

REGIONSBUSINESS.COM

9

PIFA

MUSIC

Arts Festival Looks to Past To See Future

‘Made in America’ Festival to Return

The Kimmel Center for the Performing Arts’ Philadelphia International Festival of the Arts (PIFA) began March 28 and will continue through April 27.

The festival’s theme in 2013 is “If You Had a Time Machine…” — focusing on innovative ideas throughout history and looking ahead to the future.

More information on the more than 50 arts and cultural organizations participating in the festival can be found at PIFA.org.

Tickets to every event can also be purchased on the PIFA website.

Jay-Z’s “Made in America” music festival — which brought more than $10 million to Philadelphia in its inaugural year in 2012 — will return to Philadelphia.

Philadelphia will host the festival on Labor Day weekend, on August 31 and September 1.

About 40,000 people attended the festival on the Benjamin Franklin Parkway each day in 2012, according to The Associated Press.

Last year’s festival included more than two dozen performances on three stages over two days.

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11 APRIL 2013

REGIONSBUSINESS.COM

WEEKLY BRIEFING EXECUTIVE BOOKSHELF

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Manayunk Plans Restaurant Week, Festival The Manayunk StrEAT Food Festival, to be held 11 a.m. to 5 p.m. April 13, will immediately precede Manayunk Restaurant Week.

The festival will welcome Philadelphia’s food trucks, farmers market vendors and arts and crafts vendors to Main Street.

Additionally, a restaurant tour at participating restaurants and vendors will highlight strawberries as a secret ingredient in meals.

Restaurant Week will be held April 14 to April 26. Twenty-two participating restaurants will offer three-course meals for $10, $20 or $30.

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11 APRIL 2013

REGIONSBUSINESS.COM

POLITICAL COMMENTARY

11

Thatcher ‘Inspired Freedom, Changed History’ This week’s column began as a survey of some of the most outrageous examples of federal spending at a time when the nation careens towards insolvency on the back of failed Keynesian policies.

While it was being written, we learned of the passing of iconic former British Prime Minister Charlie Gerow is CEO of Margaret Thatcher.

Quantum Communications, The incredible life and work a Harrisburg-based of Lady Thatcher give us a public relations and issue clear insight into the power and advocacy firm. transforming ideals of individual liberty and free markets that are the antithesis of those pursued by the present crowd in Washington.

Not born to privilege, Margaret Thatcher was raised by working-class parents in a house without hot water or an indoor toilet. She learned from her father the values of thrift, individual responsibility and hard work. She also learned politics.

The horrors of Adolf Hitler, especially learned from a young Jewish woman her family helped British Prime Minister Margaret Thatcher meets with President Ronald Reagan.

RONALD REAGAN LIBRARY shelter, drove her hatred for poor be poorer as long as the rich are less totalitarianism. a government that chewed up nearly 45 rich.” She carried the day.

Her strong moral compass and strength percent of the GDP. The Socialists had Her masterful time as the leader of Great of character were revealed in her trademark nationalized industries from British Air to Britain coincided with the presidency of speaking her mind, fighting for her principles Rolls Royce and from oil to telecom.

Ronald Reagan. He referred to her as his and winning her battles.

The private sector ground to a halt, suffoAt a time when Britain’s Conservatives cated by regulation and bureaucratic red tape. political soul-mate. They forged a personal and political bond that helped change the were still largely the product of elites, Marga- The top tax rate was 83 percent. Garbage was world. piling up in the streets. ret Thatcher rose from a grocer’s household.

Not only did their economic policies create Margaret Thatcher changed all that. “...she When male domination of the political saved our country,” proclaimed current Prime new wealth and better living for millions, world was taken for granted, Margaret together with John Paul the Great they put Minister David Cameron.

Thatcher led her nation.

Soviet-style communism into the dust bin of How she saved her country is a lesson well “If you want something said, ask a man; if history. Yet both viewed Mikhail Gorbachev worth learning, especially by some in the you want something done, ask a woman,” she pyramids on the Potomac. Margaret Thatcher as a man “they could do business with.” once observed.

I was privileged to spend a few minutes rejected the big spending and big governA feminist in the truest sense, she was with Lady Thatcher and President Reagan Great Britain’s first and only woman prime ment of her predecessors. She tenaciously prior to a birthday gala in his honor. It turned minister. Undeniably, she was the most embraced free markets. She knew that the out to be his last public appearance. The dominant political figure since her idol, Sir socialist approach didn’t work. It never had.

Winston Churchill. Many said she eclipsed “The problem with socialism,” she famously warmth between the two was palpable as she greeted him as “Ron.” him. said, “is that sooner or later you run out of CONTRIBUTE Their relationship reflected the middleShe ascended to power at a pivotal time for other people’s money to spend.” class roots they shared and the battles they her nation and the world. She became prime Margaret Thatcher knew what economic Send comments, fought for a better way of life for working minister in the spring following England’s growth meant for the people of her country. letters and essays people.

“Winter of Discontent.” That was when BritShe fought the Keynesian socialists who to feedback@ The values they held dear and the fights in wanted to curtail wealth creation. ain’s socialist policies had driven its economy regionsbusiness.com. which they prevailed made the world a better She once leaned across the rail during a to a virtual standstill and at the edge of total Opinions expressed by place. rambunctious Prime Minister’s Question collapse. guest writers do not Margaret Thatcher, like Ronald Reagan, Time and poked her finger at the opposition Britain faced staggering, double-digit necessarily reflect those inspired freedom and changed history. leader, intoning, “He would rather have the inflation, skyrocketing unemployment and of Region’s Business.

12

11 APRIL 2013

POLITICAL COMMENTARY

REGIONSBUSINESS.COM

Mayor Nutter Vetoes Paid Sick Leave Bill

Timothy Holwick is a freelance writer covering Philadelphia government.

Find more coverage at citycouncilmatters.com.

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

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

On March 14, 2013, Philadelphia City Council passed a bill that would require employers to provide paid sick leave to their employees.

But on April 4, Philadelphia Mayor Michael Nutter vetoed that bill, stating that the bill would harm Philadelphia’s ability to attract new businesses.

To elaborate, Mayor Nutter said in his letter, “The burden businesses would face in meeting the requirements of this bill would deter job creation and decrease the competitiveness of our city.”

In short, the bill would mandate that employees accrue one hour of paid sick time for every 40 hours worked. The accruals would begin as soon as the bill became effective, and on day one for any newly hired employees thereafter.

The bill has been controversial since it was proposed by Councilman Bill Greenlee.

Labor unions have lobbied for paid sick leave for some time, and many other policy experts support their claims by pointing to

improved workplace health.

Moreover, many people argue that progress is headed this way as other major cities move to adopt mandatory sick leave such as San Francisco.

A similar law to Philadelphia’s paid sick leave bill is possibly in position to pass in New York City.

On the other hand, business groups have continually argued that mandatory sick leave is too harsh of a burden to put on Philadelphia business owners, particularly those with smaller businesses.

Mayor Nutter apparently agrees with them, and has for some time as evidenced by his veto of a similar bill in 2011.

Councilman Greenlee’s 2013 bill passed by a vote of 11 to 6, with Councilmen Squilla, O’Neill, Oh, Kenney, Green and O’Brien all voting in opposition of the bill.

Twelve votes are required to overturn the mayor’s veto, so Councilman Greenlee will have to make one of those six men change his mind.

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Councilman Greenlee is optimistic he can convince one of his colleagues to reverse their vote and overturn the veto.

Labor groups are organizing petitions to make one final push in support of the bill’s passage, and it stands to reason that Councilman Greenlee would leverage this public opinion in his negotiating efforts with fellow councilmen.

However, an overturn of the veto would seem unlikely.

Paid sick leave has been a very popular issue, and many turned out in Council to testify about their reasons for supporting or opposing the bill.

In other words, Philadelphia City Council members heard plenty of opinions and formulated their opinions via a very public debate.

Perhaps, Councilman Greenlee can provide new information or perspective on the issue as he lobbies for that twelfth vote, but it will be hard for him to say something those colleagues have not heard.

11 APRIL 2013

REGIONSBUSINESS.COM

POLITICS

State’s Municipal Pension Concerns Should Be Added To Crowded Agenda

Eric Boehm is bureau chief for PA Independent, a project of the Franklin Center for Government and Public Integrity

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

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

HARRISBURG — Lawmakers returned to Harrisburg on Monday after a two-week break for Easter to begin a run of six consecutive weeks of legislative session that will run until late May. This is a crucial six weeks for the “big three” issues facing the General Assembly in this year’s legislative session: liquor privatization, transportation infrastructure spending and pension reform.

There already has been movement on two of those fronts — the House passed a liquor privatization bill in late March and the state Senate has held hearings on a $1.8 billion transportation spending initiative proposed by Gov. Tom Corbett.

Senate Transportation Chairman John Rafferty expects to announce his own plan next week; it will propose to spend about $2.8 billion.

But the third front, pension reform, has been mostly silent since Gov. Corbett announced his proposed reforms during his budget address in early February.

That’s a shame, because the pension issue probably is the most serious of the three problems facing Pennsylvania’s state and local governments.

And yes, it is very much a local issue, too.

More than five million Pennsylvanians — that’s 41 percent of the state’s population — live in financially distressed municipalities, the Coalition on Sustainable Communities reminded us this week.

The coalition is a group of civic and business leaders who are calling for legislative action on issues that affect local governments in Pennsylvania. Growing pension costs threaten to sink municipal budgets in coming years in much the same way that the more-well-publicized state pension debt of $42 billion threatens to wipe out parts of the state budget.

Ed Pawlowski, the mayor of Allentown, said his city’s pension costs have climbed from $6 million to $18 million in a few years’ time and will exceed $31 million by 2015. At that point, pension costs would account for 30 percent of the city’s entire budget.

And every dollar a town or city spends on financing retirement for former cops and firefighters is a dollar that cannot be spent on providing services to residents.

Mayor Pawlowski and others who gathered at the Capitol on Monday said

THE STATE NEEDS TO FIND A SOLUTION THAT DEALS WITH THE POORLY FUNDED PLANS WITHOUT PUTTING TAXPAYERS IN OTHER MUNICIPALITIES ON THE HOOK.’ reductions in services or tax increases — maybe both — were on the horizon for most Pennsylvania municipalities.

The state government’s attention is understandably focused elsewhere. The combined municipal pension debt in Pennsylvania totals about $6 billion (about $2 billion when you leave Philadelphia out of the picture), but even that large amount pales in comparison to the $42 billion state pension debt.

Still, the municipal pension issue requires attention, too.

It’s a particularly tricky one because there are more than 2,500 municipal pension plans in the state, and while the vast majority of them are well funded, the debt is piling up in older urban cores like Scranton, Reading and Johnstown.

The state needs to find a solution that deals with the poorly funded plans without putting taxpayers in other municipalities on the hook. That should rule out any type of state-level bailout or consolidation of local pension plans.

The first step should be repealing a state law that requires municipalities to offer only defined-benefit pension plans, allowing struggling municipalities to adopt 401(k)-style pension plans that put less risk on their taxpayers and are less likely to fall into debt.

The second step should be changing a law that guarantees binding arbitration to police and fire unions in their contract negotiations with municipalities.

Both those moves would give municipalities and their taxpayers greater flexibility to deal with the problems they face.

With 2,500 pension plans, there will be no one-size-fits-all solution, but some action from the state is necessary.

13

MAYORAL ELECTION

Knox, Spain Considering Campaigns Philadelphia businessman Tom Knox and businesswoman Dana Spain are considering running for mayor.

“After careful consideration and many discussions with people whom I deeply respect, I am seriously considering a run for mayor of Philadelphia in 2015,” Mr. Knox said, according to PoliticsPa.com. “Consequently, I am making it clear today that I am not a candidate for governor, despite the well-intentioned hopes of others that I would ultimately run.”

Mr. Knox ran for governor in 2010 but dropped out before the primary. He lost to Michael Nutter in the 2007 mayoral primary.

Spain “I’ve been considering it for some time,” said Ms. Spain, adding she was prompted to move forward “after reading the papers and seeing what our city has become. It can be so much more.”

She identified private-public partnerships, improved union relationships and support for first responders fighting crime (she served on the Philadelphia Police Foundation) as key campaign points.

Philadelphia has never elected a woman as mayor and hasn’t had a Republican mayor since Bernard Samuel left office in 1952.

Ms. Spain said she would make a final determination on running “within the next couple of weeks.”

GUBERNATORIAL ELECTION

Four Democrats File Allyson Schwartz is officially running for governor. The Montgomery County Congresswoman said Monday she would file the paperwork that day. She’s the fourth Democrat officially to declare a bid, following former DEP Secretary John Hanger, pastor Max Meyer and former Revenue Secretary Tom Wolf.

Republican Montgomery County Commissioner Bruce Castor will also challenge the incumbent governor. Former DEP Secretary Katie McGinty has formed an exploratory committee. Treasurer Rob McCord and several others are also expected to run.

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Facebook COO Sandberg: Do What Scares You

MEETUP CALENDAR

Pre-Tech Week Meta-Meetup of Meetup Groups Time: 7 p.m.

Date: Tuesday, April 16 Place: Zivtech, 1315 Walnut Street, Suite 1500, Philadelphia, Pa. There are dozens of active user groups in Philadelphia, but we don’t often enough come together to make sure we know each other and know which groups are still active. So, in the spirit of leading up to Philly Tech Week, we’ll come together, have some pizza and beer, sponsored by Monetate, organized by Technically Philly and hosted by Zivtech.

Facebook COO Sheryl Sandberg addresses members and friends of the Greater Philadelphia Chamber of Commerce last week in the Grand Ballroom of the Hyatt at the Bellevue. TERRENCE CASEY

BY JULIANA REYES

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Steadily, but almost quietly, Philadelphia has become a hotspot for entrepreneurs.

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heryl Sandberg wants to outlaw the word “bossy.” Next time someone calls your little girl “bossy,” the Facebook COO advised, say she “has executive leadership skills.”

Ms. Sandberg stopped in Center City last week on a book tour for the buzzy “Lean In: Women, Work and the Will to Lead.” The event at the Hyatt at the Bellevue was packed — more than 1,000 people (mostly women) registered, a spokeswoman said.

Ms. Sandberg was charismatic and funny, and her talk felt confessional: Yes, I’ve been divorced, she said. And I’m OK. She even shouted out the local nonprofit TechGirlz while talking about how to increase the number of women involved in computer science.

Here are a few points that stood out: What would you do if you weren’t afraid? It’s written on a poster at Facebook HQ and one of Ms. Sandberg’s most quoted soundbytes, but it also sounds a lot like the startup maxim “Fail fast.” Women have the “holy trinity of fear,” she said to much laughter, “being a bad wife, mother and daughter.”

Failing is OK, she said, using her first marriage, which ended in divorce, as an example.

“Who you marry is the single most important career decision you make,” she said. Ms. Sandberg’s point was that

a woman can’t succeed without a supportive partner, but the statement had some raising eyebrows.

“Don’t wait for a mentor to excel,” Ms. Sandberg wrote in her book.

“Excel and you’ll get a mentor.” Ms. Sandberg encouraged women to find mentors by offering to help those people, not by simply asking someone you admire to play that role. “Mentorship is a two-way relationship,” she said.

Ms. Sandberg didn’t acknowledge or respond to any questions, if there were any (they were submitted via local realtime Q&A software Yorn), about the critiques surrounding her book.

Ditch the phrases “work-life balance” and “having it all,” she said, because they’re only used to refer to women.

Bosses should openly talk about the issues that working women face, Ms. Sandberg said, instead of pretending they don’t exist.

What is holding women back from leadership positions is the same thing that’s holding them back from computer science: “stereotype threat,” the sociological term that means that if women are made to think that they don’t make good leaders or programmers, they’ll believe it and turn away from those roles.

This article was originally published by Technical.ly Philly at TPhilly.com.

Other groups participating: Philly Drupal Girl Geek Dinners NodeJS PhillyJS NodePhilly Scala Code for America Philly Hacks/Hackers GirlDevelopIt Philly Cocoa Heads

Legal, Financial Issues Facing Entrepreneurs Time: 10:15 p.m.

Date: April 16 Place: Teleconference Dial: 1-646-307-1300) Access Code: 9689846 Cost: Free Some start ups succeed.

Many start ups fail. Most start ups face an array of legal, financial and operational challenges.

G. Darrell Berglund, Esq., will address some of the issues entrepreneurs face when conceptualizing, establishing, financing and then scaling their businesses.

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2013: YEAR OF THE INNOVATOR

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DIARY OF A STARTUP

15

How A Drexel Gaming Professor Will Play Pong On Cira Centre

BY CHRISTOPHER WINK

In His Words: Start Up Success Lacks Sexiness Optimistic but weary from the daily practices of an early-stage startup, Adam Kearney reflects on the emotional toll of bootstrapping as a 21st-century entrepreneur.

Region’s Business caught up with him to get a glimpse inside this process, and why it may not be as picturesque as some might imagine.

In his words: The startup life is as glorified as it is sexy.

From the “Social Network” to the past season of “Girls,” startups are dressed up in endless money, workspace parties complete with D.J.s, and a carefree mentality.

Maybe this is just the American way of depicting success, but it is an untrue depiction.

The reality is that the CEO is also an unpaid intern.

I move from pitching investors and building strategic partnerships by day to adding events to Saunter’s database and handing out flyers by night.

I do not do this because it’s sexy. It certainly isn’t. I do it because the alternative is not.

Now, I am by no means successful yet; however, I can tell you that all the “successful” people I have met clearly didn’t do it for a sexy lifestyle.

Many of them do not live sexy lifestyles. They clearly did it for the joy, and I am doing the same.

I

f you want to get something audacious done, it often takes a lot of time, a lot of passion and a lot of friends. That’s how Frank Lee is finally making good on a years-long mission: playing Pong on a University City skyscraper.

Sometime in 2008, Mr. Lee was driving on I-76 toward Center City.

“I saw the sparkling lights on the Cira Centre,” said the director of Drexel’s prestigious game development program. “I had seen those lights many times before without thinking too much about them, but that time it was different.”

He dreamed of using the individual lights that cover the 430-foot University City skyscraper to play famed early video games — Tetris, Snake, Space Invaders and Pong. And he set about trying to make that a reality.

As announced last week, the third annual Philly Tech Week Presented by AT&T will kickoff Friday April 19 at 8 p.m. with Frank Lee, director of Drexel University’s gaming program, looks at a poster advertising his game of Pong on the Mr. Lee leading a Cira Centre Pong tour- Cira Centre.

TERRENCE CASEY nament from the steps of the Art Museum.

(Enter into the lottery to get a chance to John Fry and Mr. Lee told him about his in leadership at the University City Display at ph.ly/pong.) dream for Cira. Mr. Fry offered his suptrict, the University City Science Center, In 2009, he thought more about the prothe Philadelphia Museum of Art, the port.

Economy League of Greater Philadelphia, Then in September 2012, the Assocess and logistics and began reaching out Leadership Philadelphia, the Chamber of to Brandywine Realty, the company that ciation for Public Art and internationCommerce, the Mayor’s Office of Culture owns and operates Cira and the City of ally recognized Mexican-Canadian artist and the Creative Economy, GPTMC and Philadelphia’s Department of Commerce, Rafael Lozano-Hemmer unveiled ‘Open WHYY, whose board chairman is Branwhere he had supportive contacts.

Air,’ among the largest public light shows

By April 2010, he prepared a short threein the country’s history to the Ben Frankdywine President Jerry Sweeney, among page proposal and began meeting with others. lin Parkway. relevant players, but support for the big Those groups offered support for the Aside from modest debate about the dream fizzled. project, which helped win Mr. Lee a meetimpact of the light in the nighttime sky, In early 2011, as plans for the first Philly the art display was widely celebrated. ing with Mr. Sweeney and his IT team, Tech Week were coming together, Mr. Lee That was an even larger interactive pubwhere he got approval in January 2013 to met with anyone who he thought could try. The initial technical test proved the lic arts display on the Parkway, so Pong help — groups like Breadboard, the City concept was possible. seemed attainable. of Philadelphia and others, including this Along the way, Mr. Lee said he received Philly Tech Week organizers circled reporter and fellow Tech Week co-organiz“incredible” support from Drexel. He back around with Mr. Lee and decided to partnered with Drexel computer science put all their effort into one last dash to er Brian James Kirk — to pool their efforts system administrator Gaylord Holder and make the world’s biggest video game hapto garner the kind of support necessary to computer science student Marc Barrowmake the project come to light. pen, using the week as a platform, deadTurnaround time for April 2011 was line and framework and the new top level clift to build out the application that drives deemed too tight, but that’s when the stars Drexel support and ‘Open Air’ example as the games using Cira’s lighting infrastrucbegan to align. a foundation to argue for success. ture. He also received advice and techniIn July 2012, a group of Drexel students With Mr. Lee’s blessing, Tech Week cal support from Drexel computer science won the Microsoft Imagine Cup, an interorganizers pulled an outright lobbyprofessor Santiago Ontanon.

This article was originally published national gaming contest, which put Mr. ing effort, reaching out more formally

by Technical.ly Philly at TPhilly.com.

Lee in front of his university president to sources, relationships and friends

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2013: YEAR OF THE INNOVATOR

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Inspired by Rwanda, Ferasha Films Focuses on Philly

BY BRANDON BAKER

a handpicked team of four, has her filming right in her own backyard.

“The Backyard Philly Project,” the team’s first hen Amanda Danziger raised money to travel to Rwanda in 2008 as a feature documentary together, tells the story of Drexel student, her first instinct was four teenagers living in a poverty-stricken area to buy a camera and film her experiences as a of Sixth and Green streets that the teens refer to thank-you gift to everyone who had contributed as “Penn Town.”

The film will premiere at Drexel University on to her trip.

May 10 and May 11, and is sponsored by Drexel But the film didn’t stop rolling there. “[While I was there], I became hooked on the University Westphal College and ByTheWay, idea of going to a place that has a purpose of LLC. “It’s an investigative piece about what’s right serving or helping someone else,” Ms. Danziger said. “I wanted to create stories that were sort of in our backyard of Philadelphia,” Ms. Danziger said. “It’s the story of teenagers, of a life we don’t a call to action.”

Ms. Danziger first formed her Philadelphia- understand or hear about every day.”

Moving forward, Ms. Danziger, who was based film production company, Ferasha Films, recently named one of Drexel Magazine’s “40 in July 2008 by herself.

She helmed the company’s first two films Under 40,” hopes to make Ferasha Films a largely on her own: “Umuryango,” a story about non-profit. She seeks funding of $2,000 to a boys’ home in Bukemero, Rwanda, started by $5,000 to make this transition and, in the two brothers who lived through the Rwanda more immediate future, seeks further business genocide; and “Threads of Hope,” a story about partnerships from around the region for the women living in poverty and a vocational train- premiere of “The Backyard Philly Project.”

Contact Amanda Danziger by email at ing center in Kolkata, India.

But her next project, filmed and produced by amanda@ferashafilms.com.

W

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2013: YEAR OF THE INNOVATOR

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17

The Decision: Cash Versus Accrual Accounting

Kevin Ryan is a CPA for Citrin Cooperman, an accounting, tax and business consulting firm in Philadelphia.

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

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

The cash and the accrual methods of accounting are the two main methods for keeping track of a business’s income and expenses.

Company management must make a decision concerning which method they should utilize to report financial activity to the Internal Revenue Service (IRS).

A clear understanding of the differences between the two methods is critical to making an informed decision.

With the accrual method of accounting, companies will recognize income when products are sold. Similarly, expenses are recognized as a tax deduction when incurred. The cash method of accounting records income when the cash is actually received. It does not matter when the invoice is dated. Similarly, expenses are recorded as tax deductions when payments are made.

Generally, at the time for filing the initial tax return, management will choose which method, cash or accrual, to use for reporting their income and expenses to the IRS. Of the

two methods, the cash method of accounting is the easier method to administer. The goal of many companies is to properly plan to minimize taxes. Oftentimes, a company ends up financing a client’s business by carrying large receivable balances, which are deferred for tax purposes, until the cash is collected.

As the accounts receivable balances increase year-by-year, the deferral will also continue to grow. These large receivables can create a cash flow problem, which could snowball into a larger problem, if the company has to pay income tax on these outstanding balances before the cash is received. Also, the cash method of accounting will allow for management to adjust the books and records to a break-even point at year end for tax planning reasons. This can be accomplished by pre-paying vendor expenses to increase the deductible expense for a given year.

However, cash basis accounting can potentially pose some problems and issues for management. By using this method, there is a misalignment of income and expense

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which does not give management an accurate picture of profit or loss. This misalignment does not let a company accurately know how they are performing financially each month.

Alternatively, the accrual method of accounting allows for a better financial outlook because it accounts for the ebbs and flows of business income and debt more accurately. The failure to evaluate and consider accounts receivable, work in process and contingent and future liabilities can have an adverse effect on long-term success. Without the proper analysis of accrual accounting, the impact of lost productivity and declining profitability could adversely affect a company.

Thus, it is very important to have the best of both worlds in keeping track of a business’s income and expenses. While the cash method of accounting most often is the best choice to minimize taxes, management must still focus on the accrual basis numbers for the financial health of the firm. Proper monitoring of both methods will allow you to recognize issues and problems if and when they arise.

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HIGH-STAKES PLAY

The battle for Philadelphia’s second - and final - casino license is nearing its crescendo, with the public speaking out and the applicants making their final pitches.

TEXT BY MICHAEL JACOBS | ILLUSTRATION BY DON LEE

S

ix players are sitting at the table for the highest-stakes poker game in Pennsylvania: the competition for the second and last casino license in Philadelphia. The winning hand will be the proposal judged to bring the most value to the state and city.

In November, the six bought in by submitting formal proposals to the Pennsylvania Gaming Control Board.

In February, they made their opening bets in public presentations, playing up the strengths of their sites, designs, partnerships and financials and pointing out the weaknesses of their opponents’ alternatives.

Now it’s time to see the first community cards.

The Gaming Control Board has 119 speakers scheduled today and Friday in public-comment hearings at the Pennsylvania Convention Center: 50 between 9 a.m. and 5 p.m. today; 22 from 6:30 to 9 tonight; and 47 between 9 a.m. and 3 p.m.

Friday. All available speaking slots were full by April 4, although you still could sign up at the board’s website (gamingcontrolboard.pa.gov) to speak May 8 at Lincoln Financial Field or submit written comments.

Public officials, advocates and a few ringers join the general public on the list of speakers. The hearings won’t involve any back-and-forth discussion, just people talking about specific casino proposals or casinos in general.

The board can use the testimony in investigating and judging the applications, board spokesman Doug Harbach said. Having already added the May session to the initial hearings, the board could add more to accommodate demand.

“People need to feel like they have voices that are being heard,” Deputy Mayor Alan Greenberger said. He added: “The hearings are another step in a process of public participation and review. This is not the last time the public will be heard from.”

Just as the community cards in Texas hold’em improve players’ hands, Mr. Greenberger hopes that the community feedback will improve the casino proposals. “It’s absolutely in our interest to see them all get better,” the deputy mayor for planning and economic development said.

“It doesn’t do us any good to dismiss any concerns out of

19

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REGIONSBUSINESS.COM

hand.”

The potential casino operators have similar hopes as the hearings add to their IT’S HARD FOR ongoing community outANYONE TO reach efforts.

“Our design is evolving.

RATIONALLY ARGUE We’re getting as much feedTHAT A CASINO back from the community as LICENSE SHOULD possible,” said Gamal Aziz, GO ANYWHERE … the president and chief OTHER THAN operating officer of Wynn Resorts Development. “We’re EIGHTH AND not an island. We want to be MARKET.’ embraced on opening.” ÆB<E >FC;<E9<I> Saying the casino process is in “the fourth inning of a nine-inning game,” Mr. Greenberger won’t declare a city will have the least impact on neighfavorite among the six applicants borhoods, traffic, crime and Sugwhen he speaks today; that won’t arHouse revenue. On the positive happen until this summer. Instead, side, the city wants proposals that he will address the city’s concerns. have the most potential to do more Any of the proposed casinos than produce direct tax revenue, would produce jobs and tax revenue such as spur further development. for the city and state. All of them Position, a key factor in poker, hope to cash in on out-of-towners, could be crucial to spinoff developwhether conventioneers and tourment and thus the selection. There ists who spend some extra time are three basic choices: Center City, and money in Philadelphia instead the riverfront and South Philadelof heading home or day-tripping to phia.

Atlantic City, or sports and music The Design Advocacy Group fans who arrive early or stay late graded all of the proposals on sitin South Philadelphia, or miding (location and use of the propAtlantic casino regulars looking erty) and architecture this month at for a better option than the alterwww.designadvocacy.org/advocacy/ natives in Pennsylvania, Maryland design-review-six-casino-proposand New Jersey, or even high rollers als. The group of more than 1,200 who want to get a Las Vegas-style architects, urban planners and othexperience on the East Coast. ers favors the Center City locations.

All of them — Live! Casino from “Each has great potential to the Cordish Cos. and Greenwood work synergistically with nearby Racing, Hollywood Casino from development activity. This multiPenn National and a nonprofit plier effect is largely absent at the partner, Casino Revolution from a other locations,” the DAG wrote. It partnership led by Procacci Brothadded that the other proposals are ers CEO Joe Procacci, Wynn Philatoo much like SugarHouse in their delphia from Steve Wynn’s Wynn generic design and likely appeal to Resorts, Market8 from a partnera suburban, drive-in customer base. ship led by Ken Goldenberg, and The grades: A for siting and AThe Provence from Bart Blatstein’s for design for Market8; B+ and Tower Investments — claim that C for The Provence; D and C- for they will minimize cannibalization Wynn; C- and C+ for Casino Revoof SugarHouse’s business. lution; and C and C- for Hollywood Each Gaming Control Board and Live! member “individually weighs vari“It’s hard for anyone to rationally ous aspects and comes to his own argue that a casino license should personal decision,” Mr. Harbach go anywhere … other than Eighth said. and Market,” Mr. Goldenberg said.

For the city, Mr. Greenberger He said the Market8 property, said, “there’s the ‘do no harm’ side which has been vacant for 36 years and the ‘what else can they do’ side.” and he has owned for 15, sits amid On the negative side, the city the highest concentration of reswants to identify the proposals that taurants, entertainment, parking

THE PLAYERS

At this high-stakes table: Each applicant fits a role in the six-handed poker game that is the Philadelphia casino application process: K_\ CXj M\^Xj jlg\ijkXi1 Steve Wynn, the University of Pennsylvania graduate who heads his own global gaming and hospitality company, Wynn Resorts, is the biggest name in this game. He has played and won in the biggest casino markets in the world, Las Vegas and Macau, and is proposing one of the largest private investments in Pennsylvania history with the $926 million riverfront Wynn Philadelphia.

PHOTO © TSMARKLEY

garages and public transit in the city.

“This city goes as Market East goes, period, end of story. If we don’t fix Market East, if we don’t make it radiate the way it’s capable of radiating and do the things that are necessary,” Mr. Goldenberg said, “Philadelphia will always operate with an arm behind its back.”

The Provence’s developer did not respond to interview requests, but its location at 400 N. Broad St. is also walking distance from the convention center and City Hall and even closer to the Vine Street Expressway. During his February presentation, Mr. Blatstein said it would spur more than $1.5 billion in additional economic development along North Broad Street, more than all the other proposals combined.

Both The Provence and Market8 incorporate a casino above ground level — second floor for the Provence, third and fourth floors for Market8 — into an urban entertainment complex with a luxury hotel. The casino is a small part of the square footage but provides guaranteed revenue that makes the project possible.

Without the casino, Mr. Goldenberg said, Market and Eighth will remain vacant, and that will be “a crying shame for the city and state.”

Mr. Wynn also has a vision for transformation built around a highend entertainment complex and hotel with a casino taking up less than 10 percent of the space, but the site he picked is 60 acres along the Delaware less than a mile northeast of SugarHouse. Wynn Philadelphia would have its own I-95 ramps

K_\ G_`cX[\cg_`X jlg\ijkXij1 Two local developers, Bart Blatstein and Ken Goldenberg, are the equivalent of poker players who have established themselves as the class of East Coast games but haven’t played the high stakes of Vegas.

Both are betting on Center City developments that use the casino as one element of a larger entertainment complex: The $700 million Provence for Mr. Blatstein and the $500 million Market8 for Mr. Goldenberg and his 11 partners, such as David Adelman.

K_\ i\^`feXc ^i`e[\ij1 PA Gaming, composed of Penn National and new nonprofit Philadelphia Casino Benefit Corp., and Stadium Casino, combining the Cordish Cos., Greenwood Racing and the Sterling Trust, are, like Mr. Wynn, experienced owner-operators of casino-hotels, but unlike the Vegas kingpin, they play and win big in smaller games away from Vegas. Both propose sites in the Stadium District of South Philadelphia, across South Darien Street from each other along Packer Avenue: PA Gaming’s $480 million Hollywood Philadelphia and Stadium Casino’s $400 million Live!

Casino. With Penn National and Greenwood, each also includes a partner who owns and runs a casino in Pennsylvania and thus is limited to one-third ownership in the Philadelphia venture. Now we’ll see how they fare in this high-stakes game.

K_\ [Xe^\iflj e\nZfd\i1 The best poker games often include a savvy, deep-pocketed businessman who doesn’t have the card experience of the poker pros but is a tough competitor who brings a bit of mystery. PHL Local Gaming plays that role. Led by Procacci Brothers CEO Joe Procacci with the support of Walter Lomax Jr. and his family, PHL Local Gaming wants to build the $428 million Casino Revolution at Packer Avenue and Front Street on Procacci Brothers land. Mr. Procacci, who made his money in tomatoes, and Dr. Lomax, a physician who branched out into other businesses, are both in their 80s and have made successes of most of what they have attempted, including a 2,000-acre community Mr. Procacci developed in Florida. But they have never played the casino game.

20 and would feature public park space to benefit the neighborhoods on the other side of the interstate.

“When we commit to building in Philadelphia, as we have, we will build something magnificent,” Mr. Aziz said.

“It’s a promise,” Mr. Aziz said. “When you put the Wynn flag on a building, you know that it will have incredible quality, the best employees, the best jobs, and will influence the economic standing of the community that it enters.”

Wynn Philadelphia would connect the riverfront communities and anchor the development of the Delaware River Waterfront Corp., he said, but only if a casino is part of it. “It gives us this incredible stage.”

That resort would target higher-end players than SugarHouse attracts, so it wouldn’t cannibalize its neighbor, Mr. Aziz said. People who stay and play at Wynn resorts in Las Vegas or Macau but don’t have a comparable option now on the East Coast will come to Philadelphia for Wynn luxury. “Our customers follow us wherever we are.

If we are on the East Coast, we are their destination.”

But Mr. Goldenberg said Philadelphia development wouldn’t follow the Wynn resort because it’s on the wrong side of I-95 and too far from Center City. “It takes a Philadelphian to understand why that site can’t begin to transform the city.”

That opportunity for transformation does exist in South Philadelphia, said John O’Riordan, the vice president of community affairs for PHL Local Gaming, the owner of Casino Revolution.

All three proposed South Philadelphia sites are along Packer Avenue.

The 24-acre Casino Revolution property is at Front Street, and 13-acre Hollywood Philadelphia and 9-acre Live! are on opposite sides of South Darien Street.

“One of the best elements of that location is the access” to I-76 and I-95, said Karen Bailey, the vice president of public affairs for Penn National. “We believe we have the best access.”

She said the proximity to the sports arenas means that a South Philadelphia casino could turn one-day events into weekend getaways, and the fact that half the proposals are along Packer Avenue indicates likely success.

The Stadium District would maximize revenue while minimizing cannibalization of other Pennsylvania casi-

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WE CAN CAPTURE THE SAME MARKET SHARE AS THE OTHERS BUT PROVIDE THE CHANCE FOR ECONOMIC DEVELOPMENT OF THE AREA IN BETWEEN OUR CASINO AND THE STADIUMS.’ — JOHN O’RIORDAN

nos, said Joe Weinberg, the managing partner of Cordish. He said the area already has the infrastructure for an entertainment destination.

Cordish owns the nearby Xfinity Live entertainment complex, controls property in the district masterplanned for 400,000 square feet of retail and entertainment space, and could cross-promote among those facilities, Mr. Weinberg said. “We have the opportunity to be one of the most unique sort of game and entertainment destinations anywhere in the world.”

But Mr. O’Riordan compared the neighboring sites to a restaurant in the parking lot of a shopping mall. “It doesn’t provide the bang for the buck.

There’s not an opportunity to expand.”

He said Casino Revolution, on Procacci Brothers property, is farthest from homes and could combine with the Philadelphia Industrial Development Corp. site across the street to serve as a catalyst for investment.

“We can capture the same market share as the others but provide the chance for economic development of the area in between our casino and the stadiums,” Mr. O’Riordan said.

Three other applicants wanted the site beneath the intersection of I-95, I-76 and the Walt Whitman Bridge for their casinos, Mr. Procacci said, so he decided to seek the license himself, then brought fellow South Philadelphia businessman Walter Lomax Jr. on board as a partner.

“These are two families that have

been in South Philly for many, many years. Thank God we were both successful,” Mr. Procacci said.

“They want to make this the shining star of Philadelphia,” Mr. O’Riordan said. “They really want to put their stamp on this and make this the best Philadelphia casino. That is very, very different than what some of these other corporate folks want to do.”

Unlike the other Philadelphia developers, he said, Mr. Procacci and Dr. Lomax live in the neighborhood where they want to build, and while they have brought on experienced gaming executives, led by Merit Management CEO Joe Canfora, they don’t have competing casino interests to distract them.

Those outside casino interests, however, provide experience, customer lists and cross-promotion opportunities, a key element in Wynn’s plan to bring in outside high rollers.

One of Live!’s owners, Greenwood, also owns and operates Pennsylvania’s top-grossing casino, Parx in Bensalem, and Cordish owns and runs the midAtlantic’s top-grossing casino, the new Maryland Live! south of Baltimore.

Market8’s casino operator, Mohegan Sun, runs one of the world’s largest casinos at its Connecticut flagship and opened the first Pennsylvania casino at Pocono Downs. The Provence’s casino operator, Isle of Capri, is building the Lady Luck Casino Nemacolin in southwestern Pennsylvania to join its casinos in six other states.

Penn National owns and operates Hollywood Casino in Grantville among

its 29 casinos. State law prevents Penn National from owning more than onethird of a second Pennsylvania casino, creating a necessity that produced the unique feature of its bid.

The would-be licensee, PA Gaming, is two-thirds owned by a new nonprofit, the Philadelphia Casino Benefit Corp. Penn National would provide all of the money to build and operate the project, which unlike the other proposals wouldn’t include a hotel until a later phase of development, but two-thirds of the after-tax net revenue would go to the nonprofit. The nonprofit would equally support the city’s public schools and its pension funds.

That ownership setup, inspired in part by Congressman Bob Brady’s idea to have the city itself own the casino, ensures that the Hollywood proposal would produce more government revenue than any other bid, Ms. Bailey said. “I think we’re the top competitor out of all the applications.”

We’re a long way from learning whether the Gaming Control Board agrees.

Mr. Greenberger said he hopes for a decision in the fall. Mr. Harbach said the goal is to pick a winner by the end of the year, but the board will let the process run its course.

“Our point of view will be taken seriously by the state,” Mr. Greenberger said. “Everybody learned from last time.”

The process will include background investigations on all the individuals and corporations to produce a suitability report on each bidder, Mr. Harbach said. Based on those reports, the Gaming Control Board will hold hearings to question the applicants, then decide whether each is suitable for a casino license before voting for a winner among the suitable candidates.

Even then, construction will be a year away because of the city planning and permitting process, Ms. Bailey said, putting groundbreaking around the start of 2015.

Whichever proposal wins, it won’t be a cure-all, Mr. Greenberger said.

“People shouldn’t work under the illusion that casinos are either all bad or all good because they’re neither.

SugarHouse has demonstrated that,” he said. “They don’t hit the lowest of the lows, but at the same time they’re not spectacular economic drivers either.”

Michael Jacobs is an Atlanta-based freelance writer.

21

11 APRIL 2013

REGIONSBUSINESS.COM

Is The End Near for Atlantic City?

BY MICHAEL JACOBS In addressing the Pennsylvania Gaming Control Board in February, Steve Wynn said Philadelphia needs a casino-hotel luxurious enough for gamblers to want to stay there instead of Atlantic City. He drew laughs when he added, “Atlantic City is the enemy.”

As the 35th anniversary of legal casino gambling on the Jersey shore approaches May 26, Atlantic City in many ways is looking defeated: E^ll maZg Z r^Zk Z_m^k [^\hfbg` ma^ Õ klm new hotel-casino in Atlantic City in nine r^Zkl% K^o^e Õ e^] _hk <aZim^k ** [Zgdknim\r reorganization March 25. Built for $2.4 billion, the resort claims $1.5 billion in debts and $1.1 billion in assets and is now valued at less than $500 million. In a disclosure statement Õ e^] [^_hk^ bml [Zgdknim\r% K^o^e ikhc^\ml k^Z\abg` ikhÕ mZ[bebmr Zl eZm^ Zl +)*0' Ma^ Mknfi IeZsZ% [nbem bg *21- _hk +*) million, is being sold to the Meruelo Group for Z k^\hk]&ehp +) fbeebhg% Mknfi >gm^kmZbg& ment Resorts announced in February.

IbggZ\e^ >gm^kmZbgf^gm k^o^Ze^] mh ma^ Securities and Exchange Commission on FZk\a * maZm bm aZl Z`k^^] mh l^ee *2 oZ\Zgm% casino-zoned acres along the boardwalk for $30.6 million to an undisclosed buyer. Pinna\e^ [hn`am ma^ lbm^ _hk +0) fbeebhg bg +))/% [e^p ni ma^ LZg]l \Zlbgh ma^k^ bg +))0 Zg] began trying to sell the property in 2010. =Zr&mkbii^kl Zk^gÌm Ö h\dbg` mh ma^ lahk^ ma^ pZr ma^r nl^] mh' Ma^ Ik^ll h_ :meZgmb\ City reported April 3 that 140,000 people arrived on casino buses in February, down 30 percent from February 2012 and about 50 percent from February 2011, continuing a two-year run of monthly year-over-year declines.

I^gglreoZgbZÌl ** \Zlbghl aZo^ ]blieZ\^] :meZgmb\ <bmrÌl *+ \Zlbghl mh [^\hf^ ma^ gZmbhgÌl Gh' + `Zfbg` lmZm^% [^abg] G^oZ]Z' Bg +)*+% I^gglreoZgbZÌl \Zlbghl aZ] mhmZe `Zf& ing revenue of $3.16 billion, more than $100 fbeebhg Za^Z] h_ G^p C^kl^rÌl ,'). [beebhg' I^gglreoZgbZÌl k^o^gn^ pZl ni -'- i^k\^gm _khf +)**% pabe^ G^p C^kl^rÌl pZl ]hpg 1 percent.

Final 2012 results, released April 3, showed maZm ma^ :meZgmb\ <bmr \ZlbghlÌ mhmZe ikhÕ m _^ee +0'. i^k\^gm bg +)*+% _khf -20'/ fbeebhg mh ,/)'0 fbeebhg% Zemahn`a K^o^eÌl **)'/ fbe& lion loss accounted for most of the decline.

MZd^ ZpZr K^o^e Zg] ma^ ]^\ebg^ pZl .', percent.

Hurricane Sandy played a part in the ]^\ebg^' :meZgmb\ <bmrÌl \Zlbghl \ehl^] H\m' +1 and reopened between Nov. 2 and 5, and false

responsible yet exciting option that will make Atlantic City more competitive,” Gov. Christie said after signing the bill.

WE CAN Online gaming has REVITALIZE lured the Rational Group, ONE OF OUR the owner of online poker STATE’S PREMIER sites PokerStars and Full Mbem Ihd^k% mh :meZgmb\ ATTRACTIONS AND City. Rational is seeking REINTRODUCE approval to buy the AtlanNEW JERSEY AND tic Club.

ATLANTIC CITY Michael Frawley, the AT THE chief operating officer of the Atlantic Club, told FOREFRONT OF ÉGC Mh]ZrÊ maZm KZmbhgZe INNOVATION AND would invest $20 million ENTERTAINMENT.” bgmh ma^ _Z\bebmr bg ma^ Õ klm —NJ GOV. CHRIS CHRISTIE year and $40 million over Õ o^ r^Zkl Zg] phne] ebd^ to buy other sites. He said the money-losing Atlantic <en[ Zg] bml +%))) ch[l might not survive without the sale.

Ma^ [b``^k ieZr _hk BETH COLL ANDERSON / BETHCOLL.COM Atlantic City, however, is ma^ lmZm^Ìl \aZee^g`^ mh Z reports that the boardwalk was destroyed out- _^]^kZe [Zg hg lihkml [^mmbg`' Ma^ \bmrÌl \Zlb& side the casinos damaged business for weeks nos would be the only ones outside Nevada to offer betting on sports, providing a competiif not months.

In mid-January, a survey by the Atlan- tive advantage against Pennsylvania.

New Jersey enacted legislation last year to tic City Alliance found that 25 percent of respondents thought the storm ruined the become the second state to offer full wagerboardwalk, which at least was an improve- ing on sports and promptly was sued by the _hnk fZchk ikh_^llbhgZe lihkml e^Z`n^l Zg] ment from 41 percent in November.

Ma^ ZggnZe k^ihkm _khf ma^ G^p C^kl^r ma^ G<::' G^p C^kl^r ehlm bg N'L' =blmkb\m =boblbhg h_ @Zfbg` >g_hk\^f^gm ]b] Õ g] Court in its arguments that those leagues lhf^ lnglabg^ Zfb] ma^ \ehn]l' Ma^ \Zlb& ]hgÌm aZo^ e^`Ze lmZg]bg` mh ]^_^g] Z _^]^kZe ghlÌ ghg`Zfbg` k^o^gn^ khl^ +'2 i^k\^gm bg law and that the law itself, the Professional 2012 to $1.26 billion, and the total number Zg] :fZm^nk Lihkml Ikhm^\mbhg :\m h_ *22+% of occupied hotel rooms rose 2.6 percent, or bl ng\hglmbmnmbhgZe [^\Znl^ bm ]h^lgÌm mk^Zm ma^ more than 130,000 rooms, to more than 5.2 states equally.

G^p C^kl^r bl Zii^Zebg` mh ma^ Mabk] N'L' million.

And New Jersey is not surrendering in the Circuit Court of Appeals, and the case is certain to be appealed to the Supreme Court Õ `am _hk >Zlm <hZlm `Zf[e^klÌ fhg^r' In February, Gov. Chris Christie signed leg- ^o^gmnZeer' MaZm \Zl^ \hne] pkZi ni cnlm islation that allows online casino gambling for Zkhng] ma^ mbf^ IabeZ]^eiabZÌl l^\hg] \Zlbgh ma^ g^qm *) r^Zkl' G^p C^kl^r chbg^] G^oZ]Z opens sometime in 2015.

In the meantime, Atlantic City at least has Zg] =^eZpZk^ bg e^`Zebsbg` k^Ze&fhg^r Bgm^k& g^m `Zfbg`' Ma^ l^ko^kl aZo^ mh [^ [Zl^] Zm the Miss America Pageant back from Las Atlantic City casinos, providing them with a Vegas this September.

Gov. Christie repeatedly has stated his compZr mh mZi ieZr^kl pah \ZgÌm hk phgÌm mkZo^e mitment to Atlantic City as the core of a state to the shore. :grhg^ pah bl Zm e^Zlm +* r^Zkl he]% ghm cnlm tourism industry that produced $40 billion in New Jersey residents, will be able to gamble business in 2012. “We can revitalize one of our _khf Zgrpa^k^ bg ma^ lmZm^ hg\^ Z @IL o^kbÕ & lmZm^Ìl ik^fb^k ZmmkZ\mbhgl%Ê a^ lZb]% ÉZg] k^bg& troduce New Jersey and Atlantic City at the cation system is enacted.

“I am confident that we are offering a forefront of innovation and entertainment.”

SHORE STRUGGLES

AC’s bumpy ride Atlantic City became “The World’s Playground” during the Prohibition Era as tourists flooded in for illegal liquor and gambling. A cycle of boom and bust followed.

Some key dates: 1965: The portion of the Atlantic City Expressway between the Garden State Parkway and Atlantic City is completed.

1976: New Jersey voters approve casino gambling in Atlantic City.

May 26, 1978: Resorts International becomes the first legal casino in the eastern United States.

Sept. 25, 1989: A Time magazine article said Altantic City had “enough savvy to have harvested $2.73 billion in the last year from bettors in its casinos, and enough allure to be the most popular destination in America.”

April 12, 2012: The $2.4 billion Revel Casino opens, the first new casino in Atlantic City since The Borgata in 2003.

March 2013: Revel Casino files for bankruptcy.

The filings state the casino is worth no more than $450 million.

Namesake: The iconic board game Monopoly owes much to Atlantic City, but of the 13 U.S. Tournament Championships, only two have been held there and only one of the 13 World Championships (1985) have been held there.

22

11 APRIL 2013

REGIONSBUSINESS.COM

NJ Shore Rebounding, Rebranding

BY TERRENCE CASEY

F

BY THE NUMBERS

$376.4M

ive months ago, the ocean and the bay met atop the Jersey Shore, as Superstorm Sandy swallowed FEMA grants approved for streets and leveled homes, vacation homes New Jersey individuals and and businesses. households New Jersey sustained nearly $37 billion in damage, and about 346,000 homes were either damaged or destroyed.

Along more than 100 miles of coastline, towns dependent on their pristine beaches and classic boardwalks watched as their Housing assistance golden geese were beaten and washed away.

Now, with Memorial Day — the official beginning of shore season — less than two months away, shore towns and the state of New Jersey are scrambling to tell tourists Listed as “other needs” that their favorite vacation spots will be (practically) back to normal in time.

At risk is nearly $40 billion in revenue, the amount brought in to New Jersey by coastal counties in 2012, according to Reuters. That SBA disaster loans accounts for about half of the state’s tourism approved for homeowners, revenue. renters and businesses This week, Atlantic City announced it was Severe damage is visible on the side of a bridge between Avalon and Sea Isle City last week.

TERRENCE CASEY going to unveil a $20 million advertising campaign via television (3,000 ads), radio (5,000 commercials) and print and online About two months ago, Sea Isle City startads promoting both the casinos and the ed luring tourists from New York City with FEMA Public Assistance beach, according to The Associated Press. a “We’re Ready” ad posted above the Lincoln THERE’S THIS grants to communities and Additionally, a “DO AC Roadshow” will Tunnel. Now the Seas Isle City Chamber of nonprofits PERCEPTION OUT THERE travel to Philadelphia, New York and BaltiCommerce is looking toward Philadelphia THAT ATLANTIC CITY WAS for its next round of advertising. more to promote the city.

DEVASTATED BY THE But Sea Isle City Mayor Len Desiderio told “There’s this perception out there that the Press of Atlantic City that his town was Atlantic City was devastated by the storm,” STORM.’ competing against neighboring states, not said Tony Rodio, president of the Casino National Flood Insurance —TONY RODIO, PRESIDENT OF THE nearby shore towns.

Association of New Jersey, according to USA Program payments made on CASINO ASSOCIATION OF NEW JERSEY “We want those who are looking for Today. claims to date another option, or may not be able to go to those beaches, to stay in New Jersey,” he said.

“We’d much rather them stay in the state than go to Delaware, Maryland or Virginia.”

Now, Brigantine could follow suit with People who contacted an advertisement above the Lincoln Tunnel FEMA for help or information at a cost of $15,000 per month, the town’s Chamber of Commerce told the Press.

Meanwhile, signs of Sandy’s wrath still scar the coastal towns.

The bridge between Sea Isle City and Housing inspections Avalon is still closed to traffic, as chunks of completed pavement 20 feet wide or several feet deep are completely missing from the road on the Avalon side.

Vehicles can still travel between the islands by heading back onto the mainland, Visits to Disaster Recovery and pedestrians and cyclists are welcome to Centers use the bridge.

$324.7M $51.6M

$680.2M $241.5M $3.1B

259,578 124,778 85,724

Q&A

11 APRIL 2013

REGIONSBUSINESS.COM

23

ALAN JACOBSON’S

PHL

The CEO of J2 Design Par tnership has rewritten the story of Philadelphia using just three letters.

STORY

What’s the elevator pitch for J2 Design Partnership?

Every organization has a story to tell. J2 is a brand strategy firm that helps organizations articulate the essence of who they are and craft messaging and voice for brand communication and design. Messaging and design are often how people are attracted to an organization and develop an affinity as a customer or fan.

What role did J2 play in Philadelphia’s recent messaging and brand identity campaign?

We were selected to facilitate a three-year strategic plan for the Philadelphia Convention and Visitors Bureau. We collaborated with ex;it, a sister company of J2 focused on Expe-

/J2DesignPartnership

rience Design and Design Strategy.

After eight months of convention and tourism research and engagement including PCVB clients focus groups, 150 interviews with domestic and international travel experts and Philadelphia stakeholders, a clear understanding of the global perception emerged.

Philadelphia was relatively low on peoples’ radar and they had many misconceptions or little understanding of our city. American history was the major attribute, not enough to compete in the international convention and tourism market. It was clear that new narratives had to be created to tell the real Philadelphia story to attract visitors from around the world as a must-see destination.

From our experiential research we crafted stories about our Creative Culture, Innovation and Education, Vibrant Street Life, Affordability and of course, Freedom and Democracy.

These narratives have been published and distributed as an open source tool kit for any organization to integrate into their messaging as a way to attract people to Philadelphia. A logo or City Brand mark was designed using the internationally familiar PHL travel acronym.

What has inspired your commitment to integrating career, community and service?

I have a strong level of gratitude for the opportunities available to me in my life and to gain a deeper

@ j2designphilly

understanding of that benefit, have put myself in places where I can experience those who have fewer opportunities. As board president of the Village of Arts and Humanities in North Philadelphia, I have learned much about the divide in our city and do what I can to support the talented youth who need a place to express and manifest those talents.

My time working in a genocide survivors’ village in Rwanda, helping to create a sense of place through art and design, reminds me each day of the in-balance in our global community.

— Melissa Brooks Read the complete interview online at RegionsBusiness.com.

j2designpartnership.com

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11 APRIL 2013

REGIONSBUSINESS.COM

REAL ESTATE

25

Bailed-Out Fannie Mae Posts Record Profit

Fannie Mae’s national headquarters are located in Washington, D.C.

WWW.FUTUREATLAS.COM

BY SANDY SMITH In another sign that the housing market turnaround is beginning to lift many more boats, mortgage guarantor Fannie Mae reported last week that it earned a record $7.6 billion in the fourth quarter of 2012 and $17.2 billion for the year.

Fannie Mae’s turnaround enabled the government-sponsored enterprise to pay $11.6 billion in dividends to the U.S. Treasury last year.

In the last quarter, it made a $4.2 billion dividend payment on the government’s $187.5 billion investment in the company and sibling Freddie Mac. The dividends count as a return on the investment and not as repayment of the bailout money.

Since entering government conservatorship in 2008, Fannie and Freddie have paid $65.2 billion in dividends to the U.S. government.

Under an agreement with the U.S. Treasury that went into effect this year, the two companies can retain only $3 billion in net worth, with any assets beyond that amount going to the Treasury.

Bloomberg News quotes Fannie May President and Chief Executive Officer Timothy J. Mayopoulos saying in a telephone conference call with reporters, “We expect to remain profitable for the foreseeable future.”

“It’s a very good thing for taxpayers, but there’s still an important task in front of

WE EXPECT TO REMAIN PROFITABLE FOR THE FORESEEABLE FUTURE.’ —TIMOTHY J. MAYOPOULOS, PRESIDENT AND CEO OF FANNIE MAY

policy makers to determine what structure they want to have for the future housing finance system, what institutions they want to have playing the various roles in that system and then figuring out how to attract private capital.”

When Fannie and Freddie collapsed under the weight of underwater mortgages after the housing market bubble burst in 2008, government regulators did not map out a path to independence for the companies, as they assumed Congress would liquidate and replace them before they returned to profitability.

Last week’s announcement raised the possibility that a different future for Fannie and Freddie may be at hand, one in which they may continue to play a role in the nation’s housing finance system.

The profits come on the heels of a $16.9 billion loss in 2011. Analysts attribute the dramatic turnaround to a shrinking portfolio of bad loans and lower losses from sales of homes in foreclosure.

This article was originally published on PhillyLiving.com.

26

11 APRIL 2013

REGIONSBUSINESS.COM

REAL ESTATE

Buildings Then and Now: From Firehouse to Brewhouse

BY MATT STRINGER

F

irehouse. Farmer’s Market.

Brewpub.

Take your pick; the Dock Street Brewery has been all of these in the last 100 years.

Located at 701 S. 50th St., in the heart of Cedar Park’s business district on Baltimore Avenue, the brewery has a long and storied history.

Cedar Park, like much of West Philadelphia, was the child of the streetcar.

Its birth owes itself in large part to the sprawl that allowed families to move west from Center City and across the Schuylkill River. One thing these streetcars did when they became electric was spark. And wood and flying sparks don’t mix.

So the city built a lot of firehouses in the early 1900s. New York is known for murders. Philadelphia is known for fires.

Whether that is more myth and legend than fact is for the statisticians to decide.

This Italianate structure was one of dozens built around the city in the first decades of the 20th century; it was built in 1928 to house Engine Company 68 and Ladder Company 13.

But modernity came in 1984 when Engine 68 and Ladder 13 moved to a Dock Street Brewery and Restaurant, the current occupant of the onetime home of Engine Company 68 and Ladder Company 13. new firehouse a few blocks west, leaving the firehouse vacant.

Enter the Cedar Park Neighbors (CPN).

Councilman Lucien Blackwell, a hero of West Philadelphia, helped mediate a deal that sold the building to CPN rather than put it on the auction block, where it might have been bought for demolition to become, well, probably a Wawa, or who knows what.

For a time, it became a farmer’s market.

Before the Firehouse Farmers’ Market opened in 1988, farmers would sell their produce outside the empty building on weekends.

But when it opened, it had to operate every day and attract customers from outside of Cedar Park to succeed. CPN had taken out $500,000 in loans to finance the project.

And even though Cedar Park has a certain bohemian feel to it, even bohemians need to pay their bills.

By the end of the 1990s, the firehouse was once again vacant.

Enter Rosemarie Certo. She owned

MATT STRINGER

and operated the Dock Street Brewery at 18th and Cherry streets off Logan Square, but by 2005, she was looking to move to a new location.

When she first saw the old firehouse, she thought, Why not? Then she thought: 50th and Baltimore? Cedar Park seems like quite a hike from Center City.

But by 2006, she changed her mind.

By 2007, the firehouse had new life in the form of two new tenants: Dock Street Brewery on the street floor and an acupuncture clinic on the second.

The upper floor now houses Firehouse Bicycles, selling mainly fixed gear bikes but not exclusively.

The Dock Street Brewery has a 100 percent wood burning oven for pizza, makes most of its own brew itself and purchases its ingredients locally.

It couldn’t be more Cedar Park. It’s textbook urban transformation: in fact, its story even rates a chapter in a book – “Fixing Broken Cities” by John Kromer.

This article was originally published on the Philadelphia Real Estate Blog at PhiladelphiaRealEstate.com.

28

11 APRIL 2013

REGIONSBUSINESS.COM

OPINION

Why Philadelphia Should Welcome Hollywood Casino

OTHER VOICES

T

Noel Williams is National Diversity Coordinator for Penn National Gaming. Learn more at hollywoodcasinophiladelphia .com

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

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

here are three different reasons why Penn National Gaming’s Hollywood Casino proposal is the best one for the City of Philadelphia.

Our $480 million investment at the 700 Packer site in South Philadelphia only scratches the surface. For one, we have the ability to finance the project today and will not risk the money the City will start receiving from its second casino. None but one of the applicants can provide that assurance to the people of Philadelphia.

Our application sets us apart from the others by the cash-sharing proposal we have put forth to the state in our application. If Hollywood Casino is chosen, we will share two-thirds of our free cash flow (that will grow to up to $20 million annually) with the City’s pension funds and school district. This is a pre-determined pass through for these grossly underfunded agencies. This will help provide needed additional dollars for our public schools and to provide certainty for the futures of those who have served as our City’s public servants – all without a single dime of City or taxpayer investment or risk. No other applicant can provide this kind of financial support to the City.

Penn National Gaming believes that its workforce and business suppliers should reflect the community around them. This is why Penn has made significant strides in its area of diversity – from construction to workforce to its vendor pool. I came to Penn National by way of Columbus, Ohio where I served as an advocate of their proposal as well as their diversity consultant. My responsibilities included the development and implementation of Penn’s diversity plan and it broke records.

I joined Penn National as their National Diversity Consultant following the opening of the Columbus Casino, as it is my © ANDREYUU goal and responsibility to carry this kind of success forward to future Hollywood Casino communities like Philadelphia. Given Philadelphia’s rich heritage and diverse culture, we expect to exceed all expectations as it relates to diversity in our construction, workforce and vendor groups.

Finally, Penn National Gaming is the best assurance for a successful casino here in Philadelphia.

We are the nation’s largest regional gaming operator. We’re not Las Vegas and we’re not Atlantic City.

We’re Chicago, Baton Rouge, Columbus and many other cities around the country. Not to mention,

“Should Penn National Gaming move its application to Third and Packer, and win the award, the city stands to reap tens of millions of dollars within months, more than we would expect to realize with any other noncasino use of that property.”

REP. BOB BRADY, D-PHILADELPHIA

Penn National Gaming is the best assurance for a successful casino here ...

we are Pennsylvania’s only publicly-traded gaming company and our flagship property is just a couple hours west of Philadelphia, the Hollywood Casino at Penn National Race Course.

We hope to be Philadelphia’s newest neighbor. We have a record of success in all aspects of our business, including some of the most important things like a workforce and vendor force that reflects the community around us. We hope you will support our proposal for Hollywood Casino, Philadelphia.

“... Brady wants the city to own the casino, essentially making elected officials majority partners in a business that studies show results in more crime, bankruptcy, divorce and suicide. It’s a dumb idea on a number of fronts.”

PAUL DAVIES

“PHL has the best, leastneighborhood-intrusive location among all of the bidders, and unparalleled, convenient, accessibility to major interstates.”

DR. WALTER LOMAX

11 APRIL 2013

REGIONSBUSINESS.COM

OPINION

29

Storm’s Long-Term Impact Unclear, But Can Be Changed

T

his is the time of year that usually prompts optimism, hope and excitement in New Jersey shore towns.

The unofficial start of the tourist season is just around the corner and most businesses are usually putting the last bit of polish on things.

This year, though, is different.

Many towns are putting on a smiling face, but the fact remains that many spots on the shore are nowhere close to recovery from the brutal impact of Hurricane Sandy. And not only will some not be ready when the tourists start coming after Memorial Day, they will not be ready for most of, if not all of, the season.

There are a number of threads to follow here, some related.

First, the money will go somewhere. People are going to go on vacation and spend their money on lodging, food and recreation.

If it’s not at the New Jersey shore, it will be somewhere else. Obviously, it would be in poor taste for other destinations to blatantly poach New Jersey shore tourists, but there’s no doubt that tourism agencies will hit the Philadelphia market hard, hoping to lure those dollars in their direction.

This is unavoidable and to be expected, but does bring up the second thread, which is the longterm impact. People go to the New Jersey shore out of habit, often prompted by childhood memories.

It is quite possible that some people will take their tourism

dollars elsewhere, like what they see in their new destination, and not return.

As for a third thread, most towns along the New Jersey shore have already experienced a significant drop in property values.

Again, this was inevitable and to be expected. What this could prompt, though, is a recalibration of pricing for shore properties, which could, in time, spur people to return.

There is more to the story, of course, but the message is clear.

Though Hurricane Sandy is a fading, distant memory for most of the country, the storm’s full impact has not truly been realized. There is no way to mitigate the economic fallout, let alone the emotional.

The focus must be on two goals.

First, though rebuilding can, will and must happen, there is no need to restore things to how they once were. Instead, now is the time to consider ways infrastructure can be improved. After all, the shore tourism economy grew over a course of decades, sometimes in a haphazard manner. Though not a clean slate, Hurricane Sandy has created an opportunity to take advantage of new knowledge and technology.

Second, the focus must be on shortening the time between the end of the storm and being fully operational. New Jersey (as well as regional) leaders must keep this a top priority, allocating resources and slashing red tape that might impede progress.

REGION’S BUSINESS A JOURNAL OF BUSINESS AND POLITICS © COPYRIGHT 2013 INDEPENDENCE MEDIA 350 SENTRY PARKWAY, BLDG. 630, SUITE 100C BLUE BELL, PA 19422 610.572.7112 | WWW.REGIONSBUSINESS.COM

COMMENTARY FROM ACROSS THE WEB

Knox Fails to Cause Buzz When Philadelphia businessman Tom Knox released a statement [Thursday, April 4] saying he was seriously considering running for mayor in 2015 and thus not running for governor, political reporters didn’t race to their phones.

@neenjames

Ever heard someone say something and thought to yourself: “Did those words actually just come out of his/ her mouth?”

8 APRIL 2013

It was worth a tweet, but not much more, because Knox has proved himself a fickle fellow.

DAVE DAVIES ON NEWSWORKS.ORG, 5 APRIL, 2013

Art Museum’s Big Plans Require Broader Reach With museums across the country trying to bring more patrons through their doors some by waiving admission fees, others by regularly seasoning high culture with cabaretstyle entertainment - the Philadelphia Museum of Art recently unveiled a promising strategic plan that shows the city-owned museum has no intention of being left behind.

In fact, the Art Museum has set an aggressive goal of boosting annual visits to its grand home atop the Rocky steps by no less than 45 percent over the next five years or so. That would add more than 300,000 patrons and pass the one million mark.

EDITORIAL BOARD CEO and President James D. McDonald Editorial Director Karl Smith Associate Editor Terrence Casey

To make such a grand leap, museum chief Timothy Rub and his staff - with support from a board chaired for the past three years by former state legislator Constance H. Williams - will have to reach out to a much broader swath of the city and region.

PHILADELPHIA INQUIRER EDITORIAL, 8 APRIL, 2013

Mobile Demands Smarter Technologies A smarter set of technologies is what we need for the mobile. During periods of high speed and high quality bandwidth, mobile apps should anticipate what we’re going to read or watch and cache it for later. Don’t make us have to remember to pre-download or prepare for being offline.

JOHN PAVLEY ON HUFFINGTONPOST.COM, 7 APRIL 2013

HOW TO CONTRIBUTE To contribute, send comments, letters and essays to feedback@regionsbusiness.com. Opinions expressed by guest writers do not necessarily reflect those of Region’s Business. We reserve the right to edit all submissions for content, style and length.

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11 APRIL 2013

REGIONSBUSINESS.COM

BY THE NUMBERS

6

46%

Number of U.S. communities identified

by Coldwell Bankers Previews International as offering great value for luxury homebuyers.

No Philadelphia-area communities made the cut.

Bonita Springs, Fla. topped the list which included Castle Pines Village, Colo., Glenview, Ill., Carpinteria, Calif., Marblehead, Mass. and Paradise Valley, Ariz.

Percent of resumes containing some sort of false information.

70%

Percent of college students who said they would lie on their resume to get the job they want.

3%

6

Percent of job applicants with a misdemeanor record.

7%

Number of weeks the Pennsylvania legislature will be in session after its twoweek Easter recess.

61%

Percent of job applicants with a felony record.

21%

Percent of malicious websites that are legitimate websites that have been compromised.

Percent of resumes with fraudulent degrees.

40%

70%

Percent of Americans expected to file their federal tax returns online.

4868

The ID number of the IRS form needed to apply for a six-month extension.

7.9%

Percentage of U.S. households that pay no federal taxes at all.

61%

Percent of recipients of the Earned Income Tax Credit who are in the program for two years or less.

Percent of resumes with inflated salary claims.

73.5%

70.6%

Percent of people who say they have never lied on a resume.

12.9%

Percent of e-mails that were Spam in January 2013.

0.36%

Percent of people who say they have never lied on a resume, but would consider it.

Percent of e-mails that contain some sort of malware, an increase of 0.03% since November.

9.5%

2,256

Number of malicious websites blocked by Symantec in January, an increase 196% over 2012.

Percent of people who say they have lied on a resume several times.

SOURCE: ACCU-SCREEN, INC., ADP, SOCIETY OF HR MANAGERS PHOTO Š USTYUJANIN

0.5%

Percent of Pennsylvanians who are incarcerated.

12.6%

Percent of Pennsylvanians living below the poverty level, 2007-2011.

50

Millions of U.S. workers who have taken leave under the Family Medical Leave Act.

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