Region's Business 24 January 2013

HOUSING RECESSION DEEMED OVER GOV. CORBETT’S TAX CONUNDRUM

AREA INNOVATORS’ IDEAS LEAD TO PRIZE MONEY

REGION’S BUSINESS

PHILADELPHIA EDITION

A JOURNAL OF BUSINESS AND POLITICS

SEEKING PEACE WITH PHILLY’S

UNIONS

As the region enjoys a new era of innovation and growth, old labor problems remain an obstacle.

TRANSPORTATION FUNDING PROPOSAL FACES NUMEROUS OBSTACLES AMERICA: WILL YOU STAND UP OR JUST STAND BY? 7 DISRUPTIONS COMING THIS YEAR RegionsBusiness.com $2.00 U.S.

JANUARY 24, 2013

24 JANUARY 2013

REGIONSBUSINESS.COM

CONTENTS

22

3

New Era Faces Old Union Issues

With the region at the beginning of a time of growth and unprecedented innovation, ongoing struggles with organized labor continue to be a challenge.

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24

Anti-union bill DOA?

A package of right-towork bills will be introduced in the state legislature. It happens frequently and the results are fairly predictable - they never go anywhere.

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Disruptions That 19 Seven Will Happen This Year Serial entrepreneur Randy Gage says, disrupt or be disrupted. Changes are coming to your world.

Every single actuarial study ever done, either by this administration or the prior one, or by private foundations or researchers has come to the unmistakable conclusion that hard choices between past promises and future opportunities is exactly what must be made.

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SPECIAL REPORT

17

More Innovation?

That’s What 2013 is All About In this week’s installment of Year of the Innovator, catch up with a startup, check out a success story and pick up some useful information. Plus, you might just learn about the Next Big Thing. !

28

America On The Brink

It is, to put it bluntly, not a matter of ‘belief,’ just math.”

2040 Market Street Precision Realty Group is pleased to announce that the Pennsylvania Liquor Control Board (PLCB) has signed a long term lease for a flagship location at 2040 Market Street. Fine Wine and Good Spirits will join National Penn Bank to complete the retail portion of the former AAA Building on the corner of 21st and Market Streets. Shaun M. Lyons, President of Precision Realty Group handled the transaction on behalf of PMC Property Group. The PLCB will occupy 10,000 SF with the premium state store set to open in late Spring of 2013.

CHRIS MARTENSON PEAKPROSPERITY.COM

One writer wonders, will you stand up or simply stand by and watch as the country faces a pivotal moment in its history?

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24 JANUARY 2013

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EDITOR’S DESK

Local Government Follows National Pattern

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

You can contact him at ksmith@regionsbusiness.com.

We’ve come to expect gridlock in Washington. The federal government lurches from one crisis to the next, mired in rhetorical chest-thumping exercises on every issue.

Maybe part of that is understandable. After all, the issues inside the Beltway are big ones.

Making snap judgments that can alter the course of the world’s greatest nation can lead to irreversible long-term problems.

But is Washington setting a bad example for the states and maybe even local governments?

Let me share my story with you, one of a problem created by my local government but, apparently one that they are unwilling to rectify.

We have a sunken driveway, one that slopes down from the

street toward our garage. To keep water from running off the street and into the garage, the previous owner installed what looks like a speed bump at the end of the driveway. Works perfectly.

Well, worked perfectly.

A few years ago, the township repaved our street, raising the street to the level of the speed bump. Almost every rainfall resulted in a flood in the garage, and the water ended up in the basement.

Months of calls and pleas finally resulted in the township installing a new speed bump.

This helped, but when we got really heavy rains - you know, those short bursts of torrential rain - we had the same problem.

So about six times a year, I lug two dozen sandbags from the

backyard and plop them in front of the garage.

More than a year ago, I went back to the township and advised them of the situation.

As you might have guessed, nothing has been done. Well, maybe that’s not fair. I’ve had a township supervisor, the township manager and two of the township engineers (apparently, they switch firms regularly), but no real action.

To be clear, this is a problem created by the township. Yet they collectively have shrugged their shoulders on what’s to be done.

It’s not the government’s job to solve all of our problems. That kind of thinking has gotten our country into all sorts of messes that we still need to fix.

And there are large, complex

issues that all governmental bodies must contend with and approach thoughtfully.

But government at every level needs to execute on the simple things: Fix the roads, protect citizens, enforce the laws. Don’t give citizens everything they want, but give them what they need and what they deserve.

That has been lost in Washington, where the day-to-day lives of ordinary citizens are afterthoughts in a political chess game. Should that sort of thing trickle down to the local level, the very underpinnings of our republic will be shaken and the cynics will be able to claim yet another victory.

I hope that local offiicals are able to come to their senses on that, even if it’s not before the next rainfall.

24 JANUARY 2013

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LIQUOR CONTROL BOARD

PLCB CEO Conti To Step Down

Pennsylvania Liquor Control Board Chief Executive Officer Joe Conti will step down from his role February 2 as the state’s top official continues a push to privatize wine and liquor sales.

Mr. Conti, 58, plans to “pursue future opportunities in higher education and the private sector,” according to a statement from the LCB. Gov. Tom Corbett has made it clear that he does not approve of the position, telling the Pittsburgh Tribune-Review last June that he “never saw the reason for the initial appointment of the CEO, and I still don‘t see the reason for the appointment of the CEO.” ECONOMY

Federal Reserve: Region Continues ‘Modest Growth’ Superstorm Sandy disrupted a “modest pace of growth” that has since resumed, according to the latest analysis from the Federal Reserve’s Beige Book.

General retail sales, general services and commercial real estate leasing, which all felt Sandy’s wrath, have returned to “modest growth rates.”

Mild rates worsened by Sandy still exist in manufacturing, staffing services, transportation services and construction, according to the report.

Credit quality continues to show signs of improvement as lending continues to increase.

Wages, home prices and general price levels have all increased since the last Beige Book report.

The overall outlook for more growth is “considerably more optimistic.”

WEEKLY BRIEFING

Legislation Would Ban Lottery From Donating to Candidates

BY MELISSA DANIELS HARRISBURG — Pennsylvania is poised to land a new Pennsylvania Lottery partner in Camelot Global Services, and one state lawmaker wants to make sure that the state’s gambling concession isn’t sullied by the stink of money.

State Rep. Brandon Neuman, D-Washington, announced he’ll introduce legislation to Gov. Tom Corbett and other state offiban any company running the Pennsylva- cials who forged the deal said the state nia Lottery from making campaign con- needs to maximize lottery profits because elderly Pennsylvanians are an ever-growtributions to elected officials and political candidates. ing demographic. Camelot, which operThe lottery funds state ates the National Lottery in the United services for senior citizens.

Kingdom, plans to cre“This is one thing, I believe, THIS IS ONE THING... ate additional revenue that will help protect the THAT WILL HELP by boosting the number integrity of the legislature,” PROTECT THE of players through new he said. “If we are going to marketing, retail expanINTEGRITY OF THE make decisions on or about sion and new games like the lottery, they are going LEGISLATURE.’ Keno. to be in the best interests of —STATE REP. BRANDON NEUMAN Corporations in the senior citizens and the Pennsylvania canprograms.” not directly donate to Rep. Neuman said he would prefer to campaigns. But there are no limits on see the state retain control of the lottery. individual spending. Rep. Neuman said But if the concession is outsourced, Rep. there is nothing in the state’s contract Neuman wants limits on the private man- with Camelot that prevents the company’s ager’s political activity. He envisions the executives from making individual camban applying to anyone involved in mak- paign donations.

— PaIndependent ing profits from the lottery’s operation.

REAL ESTATE

Real Estate Group President: Housing Recession Has Ended During his inauguration as the 2013 president of the Greater Philadelphia Association of Realtors, Allan Domb of Allan Domb Real Estate in Center City declared the real estate recession over and said the market is on an upswing.

“Due to incredibly low interest rates — as low as 3.25 percent — we are seeing tremendous demand, but there isn’t a lot of inventory to sell.

Based on the rule of supply and demand, we are definitely in a rising market and prices have nowhere to go but up,” he said.

5

BY THE NUMBERS

Pennsylvanians Want New Roads, Don’t Want to Pay For Them An overwhelming percentage of Pennsylvania residents are likely to support an upcoming proposal from Gov. Tom Corbett to invest in the state’s roads and bridges.

But most of them would rather see someone else pay for it.

88%

Pennsylvanians who believe the state’s highways need work, according to a AAA Mid-Atlantic survey

44%

Pennsylvanians who would be willing to pay an extra $2.50 per week to improve the state’s transportation infrastructure

62%

Pennsylvanians opposed to an increase in the gasoline tax

67%

Pennsylvanians opposed to a new fee on the number of miles driven

66%

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24 JANUARY 2013

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WEEKLY BRIEFING

GAMING

Pennsylvania Ousts Atlantic City As No. 2 Gambling Spot

Could Philadelphia Zoning Changes Have Gone Further?

Sands Casino in Bethlehem is for sale, according to a Philadelphia Inquirer report citing anonymous sources.

Las Vegas Sands Corp. is reportedly seeking at much as $1 billion for Pennsylvania’s second-largest casino based on gambling revenue.

A deal is not necessarily certain.

DEVELOPMENT

Temple Boathouse Proposal Heard

by Commission Plans to build a boathouse on the Schuylkill River for Temple University were heard last week by the city Parks & Recreation Commission.

The proposed boathouse has caused some controversy because it would be built a mile north of Boathouse Row, on Fairmount Park land.

This is the first test of the city’s Open Lands Protection Ordinance, according to PlanPhilly.com.

Turnpike Toll Breakdown Pennsylvania Turnpike tolls are up again. How is that money being spent?

60

In a move six years in the making, Pennsylvania has officially become the No. 2 gambling spot in the United States, replacing Atlantic City behind Las Vegas, according to recent data.

Atlantic City reported yearly revenue of little more than $3 billion, down $2.2 billion from its peak in 2006.

Last year, Pennsylvania casinos’ gross revenue was more than $3.1 billion, supported by an 11 percent increase — to $687.4 million — in gross revenue from table games.

Sands Casino for Sale

BY THE NUMBERS

Cents of every dollar goes toward paying down different sources of debt and financing road projects

42

BY SANDY SMITH The Philadelphia City Planning Commission recently threw a party for itself, a recognition of the hard work citizens across the city put into shaping the new zoning code, a reminder — from Mayor Michael Nutter, no less — that it will take time for the new code to prove itself, and an acknowledgement of the awards the commission earned for the highly inclusive and participatory process that led to the code’s creation.

We salute the Commission as well for its achievement, and the rewards are richly deserved, for they represent a significant departure from the old approach to planning and zoning.

Yet after we heard Charles Marohn talk in his recent Curbside Chat in Brewerytown about what went wrong with America’s Great Suburban Experiment, then read a broadside he fired on the Strong Towns blog at the Planning Zoning Establishment for confusing the byproduct for the base condition (and for its past sins as well), we couldn’t help but wonder: Could we have gotten more out of the new zoning code?

For all it makes it easier to redevelop land in Philadelphia, and for all it incorporates our renewed appreciation for what makes urban districts work, the code continues to rely on Euclidean principles.

“Euclidean” here is not a geometric term. Rather, it refers to the city of Euclid, Ohio, whose zoning code was the first in the country to divide a municipality into distinct zones of activity, with finely detailed rules that govern how buildings in a given zone can be built and

the uses to which they can be put.

Changes in the practice of zoning since that first code was enacted in Euclid recognize the problems with the detailed prescriptive approach.

Both “performance zoning” and “formbased zoning” acknowledge that the specific mechanics of erecting a structure on a lot matter far less than the contribution that structure makes to the whole.

A number of cities have adopted these newer forms of zoning because of this.

And the Planning Commission knows about them as well: in the process of educating citizens about zoning, it explained these forms of zoning to the citizenry at large along with their advantages and shortcomings.

We suspect that the advantages of form-based zoning especially would make it an even better way to achieve the sort of neighborhood and citywide transformation the Planning Commission sought to encourage with the recently enacted zoning code.

But it may well be that this road was not taken because it would have represented a radical departure from practice to date in the city, and we know how city residents often react badly to dramatic, sweeping change.

So in making this argument, we do not mean to diminish the nature or significance of what the Planning Commission achieved with the new zoning code. We only wish to suggest that when next we revisit the subject, we should consider what might happen if we rethink things a little more boldly.

This column originally appeared on philadelphiarealestate.com.

Cents goes toward paying off debt and funding “payas-you-go” improvements on the highway itself

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Cents that go to the Pennsylvania Department of Transportation

$450M

Annual rate of contribution to PennDOT until 2057

$3.6B

Total amount donated to PennDOT by the Turnpike

$39.15

Current cost of traveling the Turnpike for cash customers

$30.77

Current cost of traveling the Turnpike for E-Z Pass users PAINDEPENDENT.COM

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24 JANUARY 2013

REGIONSBUSINESS.COM

WEEKLY BRIEFING EDUCATION

Contract Talks Stall Again The Association of Pennsylvania State College and University Faculties said that talks between it and the State System of Higher Education have stalled once again.

Union employees have been without a contract since June 2011. The state is expected to offer a new proposal on February 1, according to an Associated Press report.

Union members have authorized the union to call for a strike, but there is currently no indication if or when a strike would happen.

The state system is holding a Board of Governors meeting Thursday, and the union has encouraged members to attend and express their frustration, according to the Associated Press.

PHILADELPHIA INTERNATIONAL AUTO SHOW

MEDIA

JOBS

Auto Show Highlighted

By Interactive Rides

Newspaper Guild President Resigns

Unemployment, Jobs Up in Pennsylvania

The Philadelphia International Auto Show, which continues through January 27, offers indoor ride experiences hosted by Jeep and Toyota.

The show has increased its focus on interaction in addition to the usual extensive display of vehicles.

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Dan Gross, president of the Newspaper Guild of Greater Philadelphia, resigned from his position, effective immediately, last week.

The Guild represents about 550 employees at The Philadelphia Inquirer, The Daily News and Philly.com.

Mr. Gross, who will remain a Daily News gossip columnist until February 1, had accepted a buyout from Interstate General Media, the parent company of the Inquirer, Daily News and Philly.com.

“My decision was not based on fear, but on opportunity. Taking time to explore alternative career interests is what was the right choice for me and my family,” Mr. Gross said in a statement.

Unemployment in Pennsylvania increased by a tenth of a percent last month, but the state’s seasonally adjusted unemployment for the same time was 7.9 percent.

Between November and December, almost 12,000 jobs were added in Pennsylvania.

The construction industry added the most jobs since November.

“We’re on the right track,” Bureau of Labor Statistics mid-Atlantic Region economist Kara Markley told WESA, an National Public Radio station in Pittsburgh.

“The labor force is increasing because people are getting back out there looking for work.”

24 JANUARY 2013

REGIONSBUSINESS.COM

RESTAURANT ROUNDUP Center City Restaurant Week will continue January 24-25 and January 27-February 1.

During these times, a threecourse lunch costs $20; a three-course dinner costs $35. Tax, alcohol and gratuity are not included in the price of the meal.

Below are some restaurants participating in the week.

For the complete list, visit centercityphila.org.

1225 Raw Sushi & Sake Lounge: 1225 Sansom Street

Buddakan: 325 Chestnut Street

Chifa: 707 Chestnut Street Oyster House: 1516 Sansom Street

Porcini: 2048 Sansom Street

WEEKLY BRIEFING EXECUTIVE BOOKSHELF

Building an Online Search Superpower It is undeniable the influence Google has had.

The company filters into every aspect of our lives — whether we are searching for information, using a map to navigate to a destination or shopping online.

“Sergey Brin and Larry Page: The Creators of Google” introduces readers to the two men that have put the world at our fingertips.

Readers have the option of downloading digital copies of the graphic novel to their Nook, Kindle or iTunes.

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MUST-HAVE APP

SaveBenjis+ When shopping in a store, make sure you’re getting the best price possible by scanning the barcode.

SaveBenjis+ ($2.99 in the Apple Store) will compare the price in the store to the best prices online.

The app also lets you order the items you want using your phone.

Android users can find a free comparable app called Snaptell.

GOTTA-HAVE-IT GADGET

Bodum Bistro

Nothing beats the perfect cup of coffee first thing in the morning, and the makers of Bodum Bistro ($250) believe they have the recipe for perfection.

It heats the water using a spiral heating element to an exact temperature of 198 degrees Fahrenheit and passes it through a glass pipe to maintain the temperature through the process.

WHO TO FOLLOW

@PhillyAutoShow www.phillyautoshow.com The Philadelphia International Auto Show is continuing at the Pennsylvania Convention Center through January 27.

RT @PhillyAutoShow: Face-Off update! 2 days of voting down, and it’s still a close race! Mustang is just holding on to a 2% lead over Camaro!

RT @PhillyAutoShow: Don’t forget to tag your photos with #phillyautoshow.

DeAr swAmped with meeting reminders And AgendAs, Let’s squeeze some fun in between.

P.S. plAn your weekend At

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24 JANUARY 2013

REGIONSBUSINESS.COM

DEALBOOK RETAIL

Longtime Bakery Closes Doors Grays Ferry’s D’Ambrosio Bakery shut its doors last week after more than 70 years, according to The Philadelphia Inquirer.

The bakery of about 60 employees was sold in 2005 to Berwyn’s Gatehouse Ventures by the family who founded it in their South Philadelphia basement in 1939.

Additional details of the closure were not available as of press time.

RETAIL

SUPPLY CHAIN

Bottom Dollar Stores To Close

WAM Systems Acquired by Triple Point Technology

Bottom Dollar Food locations will close in North Wales (Montgomery County) and Chalfont (Bucks County) by mid-February, The Philadelphia Inquirer reported this week.

An additional Pennsylvania location near Reading will reportedly close as well.

Bottom Dollar, which is owned by Delhaize America supermarket group, first opened in the region in 2010. It will keep open 37 stores in the Greater Philadelphia area.

“When you are developing a new store format, you learn throughout the

Triple Point Technology acquired Plymouth Meeting, Pa.-based WAM Systems.

WAM Systems is a provider of supply chain planning and optimization solutions for oil and gas, chemicals, pharmaceuticals and other complex process industries.

Financial terms of the agreement were not disclosed.

MANUFACTURING MIKE KALASNIK

first two years,” Delhaize Chief Financial Officer Pierre Bouchut told investors during a recent conference call with investors, according to the Inquirer report.

Mr. Bouchut reportedly added that he hoped

the Bottom Dollar Food chain would be profitable within the next two years.

By the end of this year, an additional eight Bottom Dollar Food locations will reportedly open in Pennsylvania.

Triumph Acquires Goodrich Triumph Group Inc., of Berwyn, Pa., agreed to acquire Goodrich Pump & Engine Control Systems from United Technologies Corp. Financial terms were not disclosed.

United Technologies was required to sell the pump and engine systems arm of Goodrich to obtain approval for the purchase of aircraft component maker Goodrich for $16.5 billion.

24 JANUARY 2013

POLITICAL COMMENTARY

REGIONSBUSINESS.COM

13

Pennsylvania Legislature Introduces Tools for AVI

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.

Philadelphia’s congressional delegation to the Pennsylvania Legislature will be introducing three bills and one Constitutional amendment to assist Philadelphia in its property tax reform efforts, also known as the Actual Value Initiative (AVI).

The legislation was first described in a memorandum, dated January 14, to all Pennsylvania House members from Representatives Cherelle Parker (200th District), Michelle Brownlee (195th District), Michael McGeehan (173rd District) and Michael O’Brien (175th District).

AVI is currently beginning its full implementation, with property reassessments due out to Philadelphia property owners in February.

The amendment to the Pennsylvania Constitution, introduced by Rep. Brownlee, would authorize two classes of property in the City of Philadelphia.

The memorandum points

out that many jurisdictions in nearby states, such as some in New York and Ohio, have the authority to set tax rates on different classes of properties.

When AVI goes into effect, Philadelphians who own residential properties will bear a larger burden than those owning commercial properties.

This proposed amendment would remedy a Constitutional roadblock for Philadelphia to set different rates for the two types of property, thus mitigating the imbalanced tax burden.

Rep. Parker will be responsible for a bill that grants Philadelphia enhanced authority to pursue delinquent property taxes. As the debate around AVI heated up in 2012, many pointed to delinquent taxes as a better way to raise funds through the property tax system. This bill would aid the city in collecting delinquent taxes by giving it jurisdiction, for liens and other enforcement methods, over

all of a delinquent taxpayer’s properties. Previously, Philadelphia could only seek delinquent funds against properties in Philadelphia.

Rep. McGeehan is sponsoring an additional bill that will allow the City of Philadelphia to employ payment plans in collecting property taxes from certain qualifying residents.

This effort is particularly focused on homeowners who do not have mortgages and therefore receive a property tax bill once a year.

The final bill, introduced by Rep. O’Brien, addresses the concerns of many residents in areas of Philadelphia experiencing gentrification. Many long-time occupants of neighborhoods that have become popular targets for new construction and renovation, such as Northern Liberties and Graduate Hospital for example, are nervous that AVI will hit them particularly hard.

The logic behind this worry is that if their property has not been assessed in some time, the jump in value will be so severe that the tax burden will increase in a crippling fashion.

This increase in burden is, in a way, the goal of AVI, which is to install a system for consistently and fairly assessing the value of real estate property in Philadelphia.

However, this Pennsylvania bill will grant Philadelphia the authority to consider age and financial need in providing relief to these residents who would qualify for it.

The goal of AVI is to create a fair system, but it is not intended to bankrupt Philadelphians or put them out of their homes.

These bills provide the city with the tools to make sure AVI does not financially destroy any residents, as well as allowing Philadelphia to track down delinquent taxpayers when others struggle with the changes.

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24 JANUARY 2013

POLITICAL COMMENTARY

REGIONSBUSINESS.COM

Obama Confrontational In Inaugural Speech

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.

Inauguration Day is a celebration of our constitutional republic; a day to honor the peaceful transition or reaffirmation of power. It’s not a political event.

It’s a constitutional event. It’s an opportunity to show the world that we do things differently here.

On Monday Barack Obama began his inaugural address in the usual way, invoking treasured passages from the nation’s founding documents and great speeches of the past. But then he veered in a different direction.

Instead of reaching for a conciliatory and unifying tone, the president chose a much more confrontational message. Rather than building on the optimism that surrounds the day, he decided to lay down a gauntlet for congressional Republicans.

It’s a troubling sign of things to come in Obama’s second term.

Inauguration Day was set against a backdrop of the Obama team shifting his campaign into an activist group designed to promote his agenda. It was within the context of the president’s press secretary asking whether Republicans were “worthy” to be part of the national discussion about the challenges facing our nation. It followed remarks by the White House political director about “pulverizing” the opposition.

Not exactly an auspicious beginning to a civil and constructive conversation about how we get America back to work and our economy back on track.

In his book, The Audacity of Hope, Barack Obama suggested that the Bush Administration should “see a 51-48 victory as a call to humility and compromise rather than an irrefutable

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mandate.” What about a 51-47 victory?

Elections have consequences.

But the Obama victory of 2012 was hardly a Reagan-style 49-state sweep. In the other race in which every American could vote, the Republicans took control of the House of Representatives. Unless he intends to rule by executive order for the next four years, he needs congressional action.

Many on the right, myself included, warned throughout 2012 that a second term for Barack Obama would be marked by a hard-left turn and a much more liberal push than his wellmanaged image would suggest.

He was, after all, the most liberal U.S. senator prior to becoming president.

His image crafters and handlers carefully avoided that

mantra throughout the campaign, publicly choosing much more centrist language and imagery.

But the centerpiece of his first term, Obamacare, was rammed through a Democratic Congress without a single Republican vote.

The choice for the Obama Administration is pretty simple: set aside petty bickering and whole-scale efforts to break apart the opposition, and exert leadership on the real problems facing America.

Setting “climate change” as the focus isn’t good policy. It isn’t even good politics. Talking about allowing every person who wants to work to get a job and getting our economy running again is.

Working together for the real concerns of every American, being safe at home and enjoying a prospering economy, is what will win the future.

24 JANUARY 2013

PENNSYLVANIA POLITICS

REGIONSBUSINESS.COM

Corbett’s Tax Conundrum Eric Boehm is bureau chief/news reporter for Pennsylvania Independent.

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 — Within the next few weeks, Gov. Tom Corbett is expected to roll out a series of top policy initiatives for 2013.

Chief among them is a highly-anticipated announcement on how to provide more funding for highways, bridges and mass transit. Though Gov. Corbett has so far said very little about what the plan will entail, it is widely believed that a linchpin of the proposal will be an increase in the state’s gasoline tax.

But it’s not quite that simple. The part of the gasoline tax that would be increasing is currently capped — it only applies to the first $1.25 per gallon of the wholesale price of gasoline.

Removing the cap will add about a dime to the price of gas, according to the governor’s 2011 transportation advisory commission, which originated the idea of uncapping the tax in order to generate about $1.7 billion in new annual revenues.

This week, the average price of a gallon of gas in Pennsylvania was about $3.48. That’s the 10th highest average price in the nation, by the way.

The governor and his supporters will certainly argue that the tax is paid by gas stations because it is applied at the wholesale level, not at the pump.

Others argue that it is a tax increase because people pay taxes, not companies, and because gas stations are likely to pass at least some of the cost along to drivers filling up.

The verdict? It’s a tax hike, according to Grover Norquist and his group, Americans for Tax Reform, which runs the so-called “no tax pledge” Gov. Corbett signed during his 2010 gubernatorial campaign.

This is not the first time Gov. Corbett has tip-toed around the pledge. It’s actually the third time, and this is clearly the most egregious violation.

Previously, Gov. Corbett ran afoul of the pledge by imposing a new tax on natural gas drillers (though he called it a “fee”) and by tightening state rules for the collection of sales tax from online purchases.

Hardline conservatives will say that Gov. Corbett’s pledge was not a pledge to avoid tax increases except in certain circumstances — say, when you are taxing an industry that

drills for gas — and it was not a pledge to avoid tax increases except to pay for certain things — say, repairing roads and bridges.

It was, after all, a pledge to not raise taxes. Period.

Until now, Gov. Corbett would have been able to make a pretty reasonable case to voters that he upheld the spirit — if not the letter — of the pledge during his first term.

That’s because a relatively small levy on gas drilling companies does not upset too many people and the online sales tax collections aren’t felt too broadly.

He could also argue that the gas drilling fee is not a tax because it is only intended to deal with the consequences of drilling (despite the fact that some of the revenue goes to environmental and infrastructure programs only tangentially related to drilling activities), and that the online sales tax effort is only an attempt to collect a tax that has always existed.

But a higher gasoline tax is pretty clearly a new tax, whether it falls on gas stations or consumers.

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SUPERSTORM SANDY

State GOP Split on Relief Bill For the most part, it’s a matter of East vs. West. Of Republican Congressmen who voted against a bill for Superstorm Sandy relief, just Rep. Joe Pitts represents a district that is mostly east of the Susquehanna River.

The limited impact that Sandy had in Pennsylvania was concentrated in the eastern part of the state.

The GOP delegation voted seven to six against the bill. All of the state’s Democrats voted for it except Rep. Allyson Schwartz, who did not vote.

The bill, which appropriated $51 billion to immediate relief costs as well as long-term recovery, passed the U.S. House by a margin of 241 to 180. It moved mainly on Democratic votes; Republicans opposed the bill by a margin of 179 to 49.

They had two primary objections: that the bill contained pork, and that its price tag was not offset by other spending cuts.

—PoliticsPa.com STATE

Representative To Colleagues: Give Up Per Diems State Rep. Dan Truitt, R-Chester, put himself in an interesting position this legislative session, staging a policy crusade against benefits of his colleagues.

Once again, Rep. Truitt is asking fellow lawmakers to give up per diem payments in exchange for an expensebased reimbursement system.

“Taking a page directly out of the manual on ‘how to win friends,’ I will soon re-introduce legislation completely banning legislative per-diems,” Rep. Truitt quipped in a co-sponsorship memo.

Truitt, who is in his second term, sponsored a similar measure last session. He received more than a dozen co-sponsors. But the proposals never made it through the legislative process.

— PaIndependent.com

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24 JANUARY 2013

PENNSYLVANIA POLITICS

REGIONSBUSINESS.COM

Transportation Plan Expected This Week

BY VINNY VELLA

P

ennsylvania residents may finally find out this week if they’ll pay more to use the state’s roadways and mass transit systems.

Sources close to Gov. Tom Corbett say he’s expected to make an announcement “in the next few days” concerning transportation funding proposals first introduced by a commission he created with an executive order in 2011.

The Transportation Funding Advisory Commission, chaired by Pennsylvania Department of Transportation Secretary Barry Schoch, made a series of recommendations that aim to raise $2.5 billion in user fees over a five-year span— an amount that would make inroads toward closing the commonwealth’s estimated $3.5 billion funding shortfall for its aging, degrading infrastructure.

“We’re taking our time with this legislation, making sure that taxpayers don’t bear too much of this burden on their backs,” Kelli Roberts, a spokesperson for Gov. Corbett, said. “There are a lot of issues at play here, and resources are already stretched to their limit.”

Progress on TFAC’s proposals has been shuttered since November 2011, when Sen. Jake Corman, R-Centre, introduced legislation that aimed to implement a majority of the commission’s proposals, most notably lifting the cap on Pennsylvania’s oil company franchise tax, which is paid by fuel distributors. The bill was still in process when the previous legislative session ended.

Uncapping that tax incrementally over the next five years will generate $1.3 billion annually, according to the commission’s report, but will cost the “average motorist” — an individual who drives 12,000 miles per year in a car that gets 25 miles to the gallon — an additional $101 annually at the pump.

Such a change would require approval from the Legislature, a tough sell for Gov. Corbett, who based his bid for the governor’s office on a pledge not to raise taxes.

“Funding infrastructure in Pennsylvania is big business, and an expensive proposition, but it is a necessary one,” said Rob Wonderling, chairman of the Philadelphia Chamber of Commerce,

NANCY WALDMAN

who served on TFAC. “If we can raise this projected money by lifting the tax cap, we can turn back a tremendous amount of delayed maintenance on highways and bridges, something that motorists will come to appreciate, even if it costs them more to fill their tanks.”

Mr. Wonderling credits part of the funding shortfall for the state’s structurally deficient bridges — 4,646, by PennDOT’s last count in September 2012 — to the increased demand for fuel-efficient vehicles.

“Historically, a major source of revenue driving infrastructure improvements has been the gas tax on the federal and state level,” he said. “As the federal government has pushed for higher fuel efficiency standards for the sake of the environment, and people use less gas, that source of funding has become less effective.”

Federal fuel economy standards have almost doubled since their implementation in the 1970s, causing the fuel taxes paid by motorists to drop in half in that same period, despite the increasing price of gas. If the trend continues, the paid taxes will drop in half again by

2020, according to TFAC’s report.

Aside from the tax-cap issue, TFAC’s biggest platform is modernization, specifically of the services offered by PennDOT. The commission, and its related legislation, has identified practices that have the potential to be updated in light of current technology, boosting the department’s strained budget.

“When you look at the items up for modernization, you’ll find that some of them were created with the capabilities of equipment from 50 years ago in mind,” said Kurt Myers, PennDOT’s deputy secretary for safety administration.

“Advances in technology have really opened the door for us to save us millions and allow more flexibility for drivers.”

Among these overhauls are adjustments to vehicle-registration and driver’s license requirements: TFAC recommends doubling the lifespan of both, making registrations biannual and licenses valid for eight years.

Modernized databases and online streamlining allow for these changes,

which can generate $4.7 million and $47,000, respectively, in savings for PennDOT. Another proposed change is the elimination of registration stickers (an estimated $1 million in savings), which Mr. Myers asserts are no longer necessary, given the proliferation of the aforementioned databases.

If implemented, these changes would be accompanied and supported by an increase in associated driver fees, which haven’t increased since 1997.

If adjusted for inflation, vehicle registrations would rise from $36 to $49, and license fees from $29.50 to $34.50, according to TFAC’s report.

Mr. Myers believes that these changes amount to a convenient way to save money, one that won’t cause too much disruption in the lives of the commonwealth’s motorists “We’re confident that both the legislature and the citizens are aware of issues and believe that infrastructure needs to be maintained, bottom line,” he said. “Investment needs to be made going forward, or else the problem is simply going to get worse.”

24 JANUARY 2013

2013: YEAR OF THE INNOVATOR

REGIONSBUSINESS.COM

NEWS

Philly Crime Map Launched PhillyCrimeMap.org, which was recently launched, allows users to track crime either within a block or across the entire city.

Andrew McGill, who founded the site, gained recognition for PhillyRapSheet.com, which automatically tracks Philadelphia’s court systems every 30 minutes and posts the details of new crimes.

Philly Rap Sheet was named a “Best of Philly” by Philadelphia Magazine in 2012.

Inventory Wins PennApps More than 450 students from around the globe competed in PennApps, the world’s largest student hackathon, this past weekend in Philadelphia.

Inventory, an app that detects the contents of a backpack, won the contest, Technically Philly reported.

The City of Philadelphia awarded SmoothRide — which directs users to the best bike routes in the city — and Social Development & Urban Sustainability — which predicts the best places for towns to plant trees and build parks — for the top civic hacks. As an additional award, these two teams will present their apps to Mayor Michael Nutter.

Curalate Raises $3 Million Curalate, a visual analytics firm, has raised $3 million, Technically Philly reported.

The company is based in First Round Capital‘s University City office.

CEO Apu Gupta told Technically Philly the company raised the money in anticipation of competitors.

17

Two Philadelphia Projects Win Knight News Challenge

Eight media innovation ventures — including two based out of Philadelphia — received a total of $2.4 million as winners of the Knight News Challenge: Mobile.

“In 2013 the number of Internetenabled mobile devices is expected to be greater than the number of computers for the first time,” said Michael Maness, vice president for journalism and media innovation at Knight Foundation. “These eight Knight News Challenge projects, and the innovators behind them, are helping to stretch the ways people around the world are engaging with information and using it to shape their communities.”

The challenge, one of three launched in 2012 by the John S. and James L. Knight Foundation, accelerates projects with funding and advice from Knight’s network of media innovators.

For the third round, Knight Foundation sought ideas that harness mobile

technology to inform and engage communities.

Textizen, launched in Philadelphia last year, won $350,000, Technically Philly reported.

Philadelphia’s Abayima won $150,000, according to Technically Philly.

Textizen expands the ways governments can collect citizen input by enabling it through text.

Piloted through Code for America, Textizen works by placing survey questions in physical places like parks and bus stops where residents will encounter them and can text in their opinion.

Abayima creates an app that turns a SIM card into a storage device for news and information.

The app will be particularly useful in crisis situations, allowing journalists and others to safely transfer information when communication networks are compromised or disabled.

Finalists Named in Knight Arts Challenge Philadelphia Sixty-nine finalists were chosen in the 2013 Knight Arts Challenge Philadelphia, the contest recently announced.

More than 1,200 applicants were competing in the $9 million challenge that asked them to answer the question: “What’s your best idea for

the arts in Philadelphia?”

The Knight Arts Challenge started in Philadelphia three years ago because “great ideas can start from anywhere,” according to the group.

The complete list of finalists can be found online at www.knightarts. org.

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

The combination of great ideas, available capital and a welcoming environment have set the stage to make 2013 a breakout year for innovation and new businesses.

To Learn More ...

For more information on sponsorship opportunities or to suggest story ideas, call our main office at 610-940-1656.

The web: RegionsBusiness.com Facebook: Facebook.com/regionsbusiness Twitter: @RegionsBusiness Sponsored by

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24 JANUARY 2013

2013: YEAR OF THE INNOVATOR

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BY BRANDON BAKER

SCOUTING

NEW MEDIA IN PHILADELPHIA

Three friends-turned-partners are rewriting the books on marketing in the digital age

From left: Skout Media founders Tara Gordon, Joanna Leigh Simon and Vanessa Braxton-Veloski.

N

@SkoutMedia

SkoutMedia

SKOUT MEDIA

W

hat began with a camera, three girls and an abundance of big ideas has blossomed into the impressive second-year client roster of video and web marketing company Skout Media.

Alex’s Lemonade Stand, SEER Interactive, the Kimmel Center, the Navy Yard’s Energy Efficient Buildings Hub — these are just a few of the clients that have graced Skout Media’s list of clients since Summer 2011.

Joanna Leigh Simon, Vanessa Braxton-Veloski and Tara Gordon met at a small suburban marketing firm in 2010 as fresh-faced college graduates. After immediately hitting it off and engaging in the usual office chitter-chatter regarding their likes and dislikes about their job roles, they decided their current employer was a mismatch. The firm was by-the-books, and the trio craved challenge and risk-taking.

“We had all learned a lot working for that firm, but there was a bit of a hesitation to embrace new media and take chances,” Ms. Braxton-Veloski said. “Being young and starting out, we wanted to look to the future instead of being stuck.

We realized [starting Skout Media] would be risky, but we needed to try.”

Evaluating each of their needs, they decided on Philadelphia’s city proper for their business’ home base — partially because they were familiar with the area, but also because the three felt comfortable embracing the city’s “big-city nature and small-town vibe.”

That love of closeness led them to Alex Hillman’s Indy Hall coworking space, having joined the largely male-dominated environment after attending a barbecue networking event advertised on Twitter. The three said they spend only a few days per month at the space, spending the bulk of their time working virtually from client locations or from home, but also noted its interpersonal qualities as an influential aspect of their success.

“We’re not necessarily based out of Indy Hall, but we’ve accomplished some great things there and we appreciate it.

We love that community, and we love being a part of it,” Ms. Leigh Simon said. “With Skout Media, I really just love the interaction with people. Every day is a different experience.”

Like any other friendship-turned-business-partnership, the three do occasionally have their disagreements, but are sure to settle the matter via the grade-school but ever-present “two versus one” measure — “It’s never the same two versus one, either,” Ms. Leigh Simon said with a laugh.

With their business having hit the ground running, the three women are currently looking at expanding northeast of Philadelphia and into Baltimore with their services, in addition to improving the quality and number of video production services they are able to provide.

“You know, obviously getting business is great, but we want to do well with people we like,” added Ms. Braxton-Veloski.

“And we want the best feedback possible — making them happy makes us really happy.”

info@skoutmediaphilly.com

skoutmediaphilly.com

MONDAY APRIL 9, 2012 24 JANUARY 2013 REGIONSBUSINESS.COM

2013: YEAR OF THE OPINION INNOVATOR

REGIONSBUSINESS.COM

Learn to Disrupt or Be Disrupted

Randy Gage is the author of “Risky Is The New Safe.” Learn more at Randy.Gage.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.

In the areas of marketing, management, and leadership, there will be more disruptive change in the next 10 years than occurred in the last thousand, and 2013 will provide some serious clues on where it all is going.

Here are my predictions to help businesses and entrepreneurs adapt and prosper: 7. Shopping Goes Virtual — “Virtual malls” led by QR stores at locations where people with smartphones congregate will be the new prime real estate for online shopping.

6. The Printer Strikes Back — Advances in 3-D printing will bring cataclysmic upheaval in manufacturing.

The impact will cascade down into distribution, fulfillment and other support industries.

5. TabletMania — Look for a big spike in eBooks, eMagazines and other publications that are easy to read on tablets. Video programming for tablets is ripe for entrepreneurial development.

4. Mobile Wallets will eventually replace credit cards, debit cards, currencies, and even banks. Whoever gets a leg up in 2013 gets a big head start.

3. “I Want My Streaming TV” — The battle over who controls streaming video promises to be the biggest fight in the next decade. The winner of

Timely updates

that war may be decided by who controls the TV platform.

2. UnSocial Media — Bad companies lament “consumer activism” as irate customers expose their glaring weaknesses. Savvy companies will learn how to better use social media to connect with their tribes and monitor their brand in real time.

1. Mobile App-ocalypse — Mobile apps and the cloud will change marketing more than direct mail, newspapers, radio, television, and the Internet combined. Everybody’s talking about Big Data, but look for consumers to turn the tables. We’ll see apps coming out using it against companies to get better selection and lower prices.

This next decade will rearrange the power structure in hundreds of industries and professions. And the first movers who get in front in 2013 stand the best chance of success.

Original blogs

RegionsBusiness.com Philadelphia, 24/7

@RegionsBusiness

RegionsBusiness

191

INNOVATION

Wharton Selects 10 New ‘VIPs’ Wharton’s Venture Initiation Program (VIP) has accepted 10 new ventures, the school announced on its Entrepreneurship Blog recently.

Applications are accepted three times each year.

In December, the program received 42 applications in Philadelphia and six in San Francisco.

It accepted eight Philadelphia ventures and two San Francisco ventures.

Including the 10 accepted programs, a total of 35 ventures and more than 50 students are supported

by VIP, according to the blog.

The accepted Philadelphia ventures are: AirCare (“Talk to your nurse, anywhere, anytime”) MacuLens (“Helps patients, athletes and consumers see more clearly at nighttime”) MedalJourney (“A funding platform for elite athletes”) SkillCloud (“Connecting startups and small businesses with highly skilled graduate students and professionals”) Tink LLC (“B2B distributor of spare machine parts that are printed on-site utilizing 3D printers”) VenturePact (“Partners with entrepreneurs and transforms their ideas into real products”) Vitamizer Ice Co. (“The world’s first frozen smoothie bites”) ZumiCare (“Connects parents to the sitters of their choice, with an emphasis on trust, convenience and reliability”)

Archived print content

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2013: YEAR OF THE INNOVATOR

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Report: Venture Deals Up, Investment Value Down Venture capitalists invested nearly $64 million in 58 deals in Pennsylvania the fourth quarter of last year, according to Thomson Reuters data recently analyzed PriceWaterhouseCoopers.

Though there were fewer investments made in each of the previous three quarters, the total value of those investments was more than that of Q4 2012.

Nationally, venture capitalists invested $26.5 billion in 3,698 deals in 2012, a decrease of 10 percent in dollars and a 6 percent decline in deals over the prior year, according to the MoneyTree Report.

In the fourth quarter, $6.4 billion was invested into 968 companies. This made for a decrease of 3 percent in dollars, but a 5-percent increase in deal volume over Q3 2012.

Venture capitalists are

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also beginning to engage with companies later in their life cycle than before — from Seed to Early Stage — according to the analysis.

“We continue to see the impact of public policy on venture capital investment levels in very specific ways,” said Mark Heesen, president of NVCA. “Life sciences investment was suppressed for much of the year, particularly with first-time fundings, due in part to the impact of the regulatory and reimbursement environments, while clean tech investors began moving towards more capital efficient deals less dependent on government support.

“Simultaneously, investment in information technology flowed, as far fewer obstacles impeded success in those sectors. We hope the coming year brings with it more certainty and encouragement across all sectors than we experienced in 2012.”

“General economic uncertainty continues to hinder capital investments, and venture capitalists are no different,” said Tracy T. Lefteroff, global managing partner of the venture capital practice at PwC US.

BY THE NUMBERS

$150M

Total value of Pennsylvaniabased investments in Q1 2012

$94M

Total value of investments in Q2 2012

$212M

Total value of investments in Q3 2012

$64M

Total value of investments in Q4 2012

24 JANUARY 2013

2013: YEAR OF THE INNOVATOR

REGIONSBUSINESS.COM

Bucking the Post-Grad Trend DIARY OF A STARTUP

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CAPITAL SEEKERS

Cloud Coffee Former art students combine caffeine, contemporary art

WE BACKED INTO A TREND WITHOUT EVEN REALIZING IT.’

BY BRANDON BAKER

—TINA PAPARONE

Business: Cloud Coffee Founders: Matthew Craig and Kristen Mills Contact: matthew.cloudcoffee@gmail.com

BY BRANDON BAKER

A

t first glance, 28-year-old Tina Paparone’s postgrad career doesn’t read as particularly atypical. In fact, it might appear to some as something straight out of the average 21stcentury sitcom: A young woman travels from the suburbs to New York for college, takes on the world as a wide-eyed, twenty-something businesswoman, and swerves into the fast lane by starting a slew of business projects as a rising entrepreneurial star.

But mere miles into her fast-track ascent, a realization surfaced that altered her narrative.

Speaking with a Bucks Countybased reporter circa 2010, alongside her 30-year-old sister and business partner, Angela Giovine, she spilled all of the usual details on her life as an entrepreneur: where she’d gone to school, what inspired her and where she hoped her business ventures would take her. But after a lengthy conversation with the interviewer, she said, he stopped her to point out something that had been right under her nose.

“As we were explaining what we do with [online lifestyle magazine] Bucks Happening, we were referring to it as just a hobby, and the reporter kind of broke in halfway and said, ‘It sounds like Bucks Happening is more of your main focus in terms of

Tina Paparone

hours, and your other businesses are your side hobbies,’” Ms. Paparone said. “At the time, we told him that definitely wasn’t the case, but then we sat down and talked about it, and recognized something big: ‘OK, it’s time to turn this into a business.’”

And so they did.

Ms. Paparone and Ms. Giovine, both of Yardley, Pa., formed Happenings Media in January 2011 after receiving overwhelmingly positive feedback from those who followed their digital, hyper-local lifestyle magazine Bucks Happening. The two shifted their entrepreneurial focus strictly to the media company, and have worked arduously since to keep up with new licensees and the expansion to new markets without

LYNN GOODWIN

sacrificing the authenticity of what they began with.

“It’s sort of funny how we backed into a trend without even realizing it,” recalled Ms. Paparone.

But even after entering 18 markets with their lifestyle magazine brand, Ms. Paparone and Ms. Giovine are just getting started.

“We measure success by being able to grow and find great talent,” Ms. Paparone remarked. “It’s really baffling to us that we’re already in 18 different markets; but we’re ambitious, and we’re pushing to expand further and further in the next couple of years.”

Fittingly, the next market launch on their list will prove to be their largest yet: Brooklyn.

Parked outside Temple University’s Tyler School of Art is a cube-shaped, black-and-white trailer that, to the unknowing eye, is just another addition to the university’s mammoth food-truck arsenal.

But to the regulars who visit the trailer for their morning cup of Fishtown-roasted Joe, it doubles as a portal to the world of contemporary art.

Cloud Coffee, LLC, is the brainchild of Matthew Craig and Kristen Mills, two former Temple art students who opened their mobile, truck-pulled coffee “cloud” in November 2012.

The two recognized that the campus lacked a compelling coffee alternative to its Starbucks and Saxbys locations and quickly came to the realization that they could craft a niche audience for their coffee shop by uniting their love of coffee and art.

“We’re just getting started,” Ms. Mills said. “We think this has the potential to blow up and evolve into a number of different things. We have a million new ideas each week.”

Though many of their more ambitious ideas for engaging customers with art are under wraps, Ms. Mills confirmed that the trailer will be pointing its wheels off campus and into decidedly more artistic territory soon enough.

They recently applied for an art gallery space at Philadelphia’s historic Crane Building that would allow them to better materialize their vision for the coffee-art combo.

The duo is currently in the process of wrapping up their Kickstarter, which has resulted in $2,977 in pledged funds from 76 backers since their Cloud Project fund launched in the fall.

Looking to the future, Ms. Mills and Mr. Craig dreamed out loud and joked about eventually raising the money to maintain a “fleet” of coffee clouds.

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REGIONSBUSINESS.COM

A BATTLE RAGES ON

In many areas of the country, unions have been experiencing a steady disintegration – but not in Philadelphia. It is widely considered one of the last great union towns, but recent economic and political turmoil has led to an all-out war that has shaken the unionized workforce to its core. While the battle continues to rage between pro- and anti-union forces, Philadelphia’s future hangs in the balance.

TEXT BY ELISSA VALLANO | ILLUSTRATION BY DON LEE

T

he Post Brothers versus the Philadelphia Construction Unions. Mayor Michael Nutter versus the Philadelphia Fire Fighters’ Union. Interstate General Media LLC versus the Newspaper Guild. All are notable examples of the widespread war being waged between union and non-union factions within the City of Philadelphia.

They’re also just depicting a limited scope of a far larger picture, one that has been inhibiting the city’s growth in staggering ways.

Tensions between both sides are nothing new for the city, which is the most damaging factor in this seemingly unshakable problem. For years, there has been no resolution to the ongoing conflicts between union and non-union parties in Philadelphia, and there does not appear to be one on the horizon.

“After I moved to the Philadelphia area, I was struck by the inability of unions to accept an open shop contractor on a jobsite,” Mary Tebeau, President and CEO of the Associated Builders & Contractors Eastern Pennsylvania Chapter, said.

“In Ohio, union and open shop contractors would work side-by-side on a project with little to no disputes.”

Ms. Tebeau is currently combating vandalism at the Chestnut Hill Friends Meeting jobsite, and a $50,000 reward is in place for information leading to the arrest and felony conviction of those

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24 JANUARY 2013

REGIONSBUSINESS.COM

responsible. This type of climate has been an adjustment for her. Prior to moving to Philadelphia in 2011, she had operated in the Ohio construction industry since 1993. Ohio labor unions have been experiencing resurgence after the auto bailouts, and they were a dominant factor in swinging the state to President Obama’s favor this past November. Despite Ohio unions’ obvious strength, Philadelphia’s unions are a different animal altogether.

“A key reason the Philadelphia unions remain some of the most powerful in the country is the political capital they have to spend at the expense of the union workforce,” Ms. Tebeau said. “These paycheck deductions are then used to elect local and federal officials that create contracts and laws that protect construction projects to be built solely with union labor. Unfortunately, Philadelphia has been a one party town for so many years that when you have a public system in which there are no checks and balances, corruption begins. A healthy, viable economic plan involves all political points of view.”

The unions’ decline began in the 1960s when roughly 30 percent of American workers were members of a union. That number is now less than 12 percent and decreasing by the year, but Pennsylvania has remained well above the national average when it comes to union membership. In 2011, the U.S. Bureau of Labor Statistics reported that the number of workers belonging to a union was 779,000 in the Commonwealth of Pennsylvania.

Union members accounted for 14.6 percent of wage and salary workers in Pennsylvania, slightly down from 14.7 percent in 2010. When the Bureau of Labor Statistics began tracking this data in 1989, union membership in Pennsylvania was at its peak at 20.9 percent.

“I think these conflicts are often portrayed negatively by the media and do not show the entire picture,” Joe Dougherty, Partner at PhillyLabor. com, said. “The media often portrays union members picketing, shouting or marching together in an unattractive light, but they do not often show the entire story about the unemployed union workers who have worked for years to secure a living wage. Who now struggle to put food on their table while greedy employers break union standards to increase profits. And they certainly do not show the non-union

UNION-LABOR CONFLICTS PHILADELPHIA SCHOOLS

Philadelphia’s new superintendent, Dr. William Hite, unveiled a plan to fix the district’s dismal finances.

The plan includes shuttering three dozen schools, but also expects concessions from the teachers’ union in upcoming negotiations.

According to TheNotebook.org, he said, “if you’re a teacher, it’s going to be a tough conversation.”

PHILADELPHIA FIREFIGHTERS

Mayor Nutter and Local 22 of the International Association of Fire Fighters continue to battle over a contract. The most recent deal expired in 2009.

The administration has appealed decisions that would have awarded members retroactive pay raises and benefits and state law prohibits a strike.

The union dropped a bid to recall Nutter, citing the expense of a lengthy legal battle.

PHILADELPHIA MEDIA

The Philadlephia Inquirer, Daily News and philly.com have had a number of different owners in recent years, but they’ve all sought the same thing: Concessions from the unions to help prop up the bottom line.

The unions have made some and also seen their ranks shrink as the company shed headcount. The new owners, Interstate Media, wants $8 million more from the unions, threatening to liquidate the company.

The City Paper’s Naked City blog reports the union agreed to come to the negotiating table.

KEVIN BURKETT

AFTER I MOVED TO THE PHILADELPHIA AREA, I WAS STRUCK BY THE INABILITY OF UNIONS TO ACCEPT AN OPEN SHOP CONTRACTOR ON A JOBSITE.’ —MARY TEBEAU, ASSOCIATED BUILDERS & CONTRACTORS

workers who are getting exploited by greedy employers and contractors for the benefit of themselves.”

The Post Brothers, Matt and Mike Pestronk, made the bold move of going toe-to-toe with the city’s labor unions when they awarded union contractors just 40 percent of their 38 million Goldtex project. The Pestronks had bid the contract out to both union and non-union groups, unprecedented in its own right, and the unions fired back that they would only work if the project was 100% union. A volatile situation quickly escalated at the Goldtex site, but thus far, the brothers have managed to come out on top of the unions in practically every battle.

This is just one example of the conflicts between pro- and anti-union forces in the city, yet there seems to be one underlying theme among them all.

Philadelphia’s reputation and growth prospects are collateral damage in all of these feuds, and the city as a whole is suffering immeasurably because of it.

“I’ve spoken to a contractor performing work for a manufacturer in the south who was considering retrofitting a closed manufacturing plant in

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REGIONSBUSINESS.COM

State Legislators Will Consider Right-to-Work Bills ... Again

BY MELISSA DANIELS HARRISBURG — The “right-towork” fight isn’t new to Pennsylvania.

Neither is the ideological line in the sand between labor unions and lawmakers seeking to limit their influence.

But this session, Pennsylvania can become the nation’s 25th right-to-work state. At least, a group of Republican House members and a coalition of supporters think it should.

January 22, state Rep. Daryl Metcalfe, R-Butler, said five other Republican House members introduced the Pennsylvania Open Workforce Initiative. The package of six bills aims to end “compulsory unionism” for private- and public-sector unions, a practice requiring nonmembers to still pay fees.

“In right-to-work states, people can be a union member if they choose to.

We’re just saying, ‘Let union members choose if they want to be in a union,’” Rep. Metcalfe said. “Why do they need the government to enforce it?”

The legislation comes after Michigan, a state with strong union presence, passed right-to-work laws in the midst of heated protests and full-out demonstrations in the streets of Lansing.

Labor advocates call right-to-work policies an attack on workers, pointing to lower wages, poorer working environments and an overall weakened middle class as results of weakened union power. But supporters say it’s an issue of constitutional personal freedom, and that workers should have the right to decide whether they want to be represented.

This week’s announcement was made at a news conference with about three dozen lawmakers, business officials, school board directors and political advocates, 20 of whom gave personal testimony on why they believe Pennsylvania should become a right-to-work state.

That included non-union member and public school employee Neil Weidman, and Mary Burkholder, a nurse and former union member. There was

IF GOVERNOR CORBETT WOULD STEP UP, AND OUR PARTY LEADERS, AND TAKE THE LEAD ON THIS ISSUE, PENNSYLVANIA WOULD BE AMERICA’S NEXT RIGHT-TO-WORK STATE.’ —REP. KATHY RAPP R-WARREN

also a presence from the national rightto-work movement, including Justin Davis of the National Right to Work Committee.

Gov. Tom Corbett already has said that Pennsylvania “lacks the political will” to pass right-to-work laws, though he would sign them if they came across his desk. But that sentiment seems to fuel right-to-work supporters, including Rep. Kathy Rapp, R-Warren.

Rep. Rapp said there are a number of “core conservatives” in the General Assembly who are committed to seeing these laws change.

“If Governor Corbett would step up, and our party leaders, and take the lead on this issue, Pennsylvania would be America’s next right-to-work state,” Rep. Rapp said.

Her legislation would keep unions from collecting dues from non-union public school employees, a measure she’s introduced previously.

Simon Campbell is a director at the Pennsbury School Board, and the president of Stop Teacher Strikes. He called out Corbett for allowing the latest contract with the American Federation of State, County and Municipal Employees to include a provision on compul-

sory dues payments. Pennsylvania law, he said, allows that to be negotiated.

“Just because it exists in a previous agreement doesn’t mean it has to exist in a future one,” Mr. Campbell said.

There are about 20,000 state workers who are not union members that the provision applied to, Mr. Campbell said.

But getting these laws passed in Pennsylvania’s Republican-controlled General Assembly would mean winning over many Republican lawmakers who take campaign donations from labor unions. Rep. Metcalfe said that if citizens in Pennsylvania demanded that lawmakers stopped “representing the special interests of the unions,” that lawmakers would listen.

With the will of the people, he said, the legislation could win approval.

“I believe that the power of the individual citizen can overcome the power of the public-sector unions and the unions at large in Pennsylvania,” he said.

Stephen Herzenberg, economist from the Keystone Research Center, said right-to-work laws deliberately weaken unions and result in a weakened middle class.

“You can’t look at these laws in isola-

tion from the overall situation of workers and employers,” he said. “When you look at the overall situation, the problem in the United States is not that unions are too strong, it’s that they’re too weak.”

To the unions that these laws would affect, right-to-work laws are an adversary that they are prepared to fight.

Abe Amorós, the Pennsylvania legislative director for the Laborer’s International Union of North America, said right-to-work proposals show nothing more than “hostility towards workers,” whether they are unionized or not. Wages in right-to-work states like Alabama, Louisiana and Georgia are 3 percent lower than other states, he said.

Mr. Amorós said he doesn’t see House members who support rightto-work finding success. In 2011, the House Labor and Industry Committee held a hearing on similar initiatives.

Amorós said the bills did not make it out of the committee.

“We knew this was coming, and we’re going to prepare to fight it off like we did last time,” he said.

Rick Bloomingdale, the president of the Pennsylvania AFL-CIO, said that nonmembers who pay dues have the same protections as members that go beyond salaries and benefits. For example, a nonmember has the same rights against discrimination from a boss, he said.

“You take away unions, you take away the middle class,” he said. “The two are inextricably linked in this country. We didn’t have a middle class before the labor movement got strong.”

Right-to-work has been introduced in every legislative session for the past 30 years, Mr. Bloomingdale said.

“We’ve kept it bottled up and defeated for 30 years, and we’re going to keep trying to bottle it up as defeat it as long as we can.”

Melissa Daniels is a reporter for PA Independent. She can be reached at 717-350-0962 or Melissa@PAIndependent.com

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the city,” Ms. Tebeau said. “The building trades informed the owner that all construction work must be performed union.

The owner responded that he would choose not to purchase and develop the facility if that is the case.”

The city’s labor unions see it in a different light – one of businesses trying to take advantage of the less fortunate for their own personal, financial gain.

“Some non-union contractors come into the city with intentions of disregarding union standards and wages by underbidding our union contractors and paying their non-union employees substandard wages,” Mr. Dougherty said. “What people do not understand is that, many times, these non-union contractors underbid our union contractors by, for example, bidding 10% lower on a project than the union contractor. But they are actually paying their workers 40% to 50% less than a union worker and the non-union contractor just pockets that difference.

In other words, they are exploiting their workers by paying them less for their own benefit because they know the workers have no recourse.”

Fair wages and working conditions are the backbone of all unions, and the reason why they rose to power in this country decades ago. But Ms. Tebeau argues that times have changed and that the city is “filled with many construction contractors that provide employees with safe working conditions and pay fair wages.” Mr. Dougherty points out that many non-union workers are paid wages so low that they’re unable to afford living in the city they work, a development that

is “breaking the wages and standards that our unions have fought so long and hard to achieve.”

“I think the conflict here is essentially one-sided,” Ms. Tebeau said. “It is the union that is upset that an open shop company earns a contract on a construction project. When was the last time you saw a merit construction firm picketing a union site? The closer a project is to Center City, the greater the sense of entitlement by the building trades that the project should be constructed by 100% union labor.”

As for the resolution to these ongoing disputes, there are many suggestions but no easy answer for two sides so firmly entrenched in their beliefs.

“Municipalities need to enact proworker – not anti-worker – legislation that requires employers to pay a fair working wage consistent with the type of work they are doing and the city in which they live,” Mr. Dougherty said. “I’m completely for capitalism and providing contractors and employers who take risks with opportunities to make money, but not on the backs of underpaid workers or at the expense of union workers. Greed should never take precedence over fairness.”

Fairness, essentially the root of these ongoing battles, is what no one can seem to agree on for the greater good.

“The best solution regarding publicly funded projects is to award the construction contract to the lowest responsible bidder, regardless of labor affiliation,” she said. “If a union firm has the best price and package, they should earn the contract.”

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REGION’S BUSINESS A JOURNAL OF BUSINESS & POLITICS

Expiring Contract Puts Convention Center in Middle of the Storm When dissecting Philadelphia’s ongoing issues with union labor, the Convention Center sits at the heart of the controversy – a representation of just how disastrous the city’s building climate can be.

The Pennsylvania Convention Center recently underwent a mammoth $786 million expansion, one that took nearly two decades to come to fruition. The finished product was expected to compete heavily with New York, Los Angeles and Washington, DC, but so far, those expectations have been unrealized.

Troubles have plagued the project since the beginning, and the city lost a number of conventions due to what meeting planners say are obstinate, often hostile labor and unreasonably high costs. They argue that Philadelphia’s labor is higher than any other city in the country, and that has resulted in substantial losses to the city over the years. One prime example of these ongoing problems came this past September, when the city lost the INTERPHEX 2013 convention over electric screwdrivers. It was a $15 million loss

for Philadelphia, one almost comical if it wasn’t such a damaging blow to the city’s struggling economy.

In 2011, a state-ordered 109-page report analyzing the Pennsylvania Convention Center branded the building’s labor costs as a considerable weakness in its operations. Unions blame management for the Convention Center’s constant problems, but neither side is safe when it comes to the future.

The center’s website boasts “New Labor Rates Reduced by 8 Percent” on a link leading to labor rates in effect through the end of June. The hourly rates range from $42.10 for an apprentice laborer to $93.60 for a carpenters foreman.

The Customer Satisfaction Agreement between the unions and the Convention Center is set to expire on July 14, 2013, and that could lead to a monumental sweep of the center’s current managers and workers. Or it could be more of the same.

Only time will tell, but for now, at least there’s the Philadelphia Auto Show.

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CHAMBER REPORT

27

GREATER PHILADELPHIA CHAMBER OF COMMERCE

GREATER NORTHEAST PHILADELPHIA CHAMBER OF COMMERCE

PACT

Whole Foods CEO to Address Panel

Lunch with Mayor Nutter Rescheduled to March 21

Event Highlights Cybersecurity Need for Businesses

John Mackey, Whole Foods CEO and co-founder, will discuss his new book, Conscious Capitalism, before a panel discussion 8:30 to 10:30 a.m.

Wednesday, February 6 at World Cafe Live, 3025 Walnut Street, Philadelphia.

Panelists include: John M. McNeil, President & CEO, Cancer Treatment Centers of America; Diane MelMackey ley, Vice President, Global Citizenship Initiatives, IBM; Mary Stengel Austen, President & CEO, Tierney.

The panel will be moderated by: Steven Pyser, Assistant Professor, Fox School of Business, Temple University.

Tickets to the event cost $45 and can be purchased online at www.greaterphilachamber.com. Registration ends Tuesday, February 5.

A luncheon with Mayor Michael Nutter scheduled for January 24 has been rescheduled for Thursday, March 21, according to the Greater Northeast Philadelphia Chamber of Commerce.

The GNPCC had sold more than 175 tickets.

Mayor Nutter’s office told the chamber that he would be providing testimony in Washington on the national conversation over gun control.

The rescheduled luncheon will be held at the Knowlton Mansion in the Fox Chase neighborhood of Philadelphia.

Ticket holders can move their reservation or request a refund.

Perspective.

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The Greater Philadelphia Alliance for Capital and Technologies will be holding an event 8:30 to 10:30 a.m. January 30 at the West Conshohocken Marriott titled “Cybersecurity: Protecting Sensitive Information.”

Cozen O’Connor lawyers Steven Haas, Richard Bortnick, Michael Schmidt and David Walton will review types of losses, breach perpetrators, the applicability of SEC disclosure requirements to non-public companies, how to handle non-disclosure agreements, what to do when employees bring their own devices to work and social media risks, including unfair competition and trade secret/proprietary information disclosure, social media ownership rights, and issues involved with publicizing and developing your business via social media.

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OPINION

America On The Brink: Will You Stand By or Take a Stand?

W Jonathan E. Gibson is your average, hardworking man who has devoted more than 20 years to blue-collar work and the author of “Red, White & Blue-Collar: A Common Man’s View on an Un-Common Country.”

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

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

hat if I said you have the power to change the future of America?

No matter what political party you side with or religious beliefs you hold, there is one fact that is indisputable and unfortunate: America’s very survival is at stake.

Some may say that is just one man’s opinion, but when you look at our history and our past place in the world compared to today, there is no mistake that the survival of America as we know it hinges on the next few years.

There are major decisions that have to be made, and they need to be made by serious people who love this country and understand what America is truly about. The decisions that need to be made should not fall to those who only live in the politics of the here and now, but to those who see the promise of a better America for tomorrow. It is up to us, the people, to elect leaders who aren’t worried about political consequences, but will do what needs to be done to secure that promise.

I believe in America. I believe we, her people, have a raw determination and an unbridled spirit that can be matched by no one.

We have the freedom to dream and turn dreams into reality. We have the will and ability to make America what it once was and what it should always be: a light in the darkness, the city on a hill.

America should always be a true beacon of hope for the hopeless, strength to the weary, and the fountain of freedom for all who truly thirst for our God-given rights as people. Let us not just quietly idle above the treetops when we have the spirited ability to soar above the clouds; it’s time for us to climb aboard and soar, America!

We all have enjoyed the security and liberty provided for us by earlier generations. But what are

OTHER VOICES

We all have enjoyed the security and liberty provided for us by earlier generations.

But what are we providing for the

future generations?

we providing for the future generations? That is the question we must answer. Will they be able to look back and thank us for what we have done today? Or will they curse us for things we should have done to give them the country that was given to us? If there has ever been a time we need to stand together, it is now. Let us first do in our communities what needs to be done today so we can do as a country what needs to be done tomorrow.

There is a social phenomenon known as the bystander effect, a psychological theory that people are less likely to help in emergency situations when others are observing. People are less likely to intervene when a greater number of bystanders are present, and more likely to help when few or no other people are around. The explanation for this occurrence is that people feel less responsible to help when others are available to.

This is called diffusion of responsibility. Also, people take social cues from others around them, meaning they basically follow suit. If others aren’t helping, then the need must not be that great or socially acceptable, so the need for help is unfulfilled.

This theory typically applies to emergency situations, but I believe it could easily apply to the present state of America. We can’t sit back and just wait for someone else to take responsibility for helping this nation. If everyone does that nothing will ever change and things won’t get any better.

Each of us must step up and become a leader for this country and take responsibility for it. It is absolutely essential for America to survive.

Whatever your lot in life, know that thousands upon thousands of people have died to give you, me, and everyone else the freedom to choose if we want to pursue bigger and better things in life or just accept where we are right now. It is our choice. I know what I choose; what about you?

My fellow Americans, hold fast to what we have here and never let go. This is a vital time for us, and if we cherish what we have in America and want to pass it on to our children and our children’s children, we will get serious about our times. We have no excuses.

It is paramount that we leave it a better and brighter place than it was when we got here. God bless you, and God bless America!

“A culture cannot lie down with dogs and not become utterly infested with fleas.

The dogs, in this case, are the mongrel media and the corporate overlords who have grown fat on manufactured controversy and fear mongering. “ STEPHEN WEBER ON HUFFINGTONPOST.COM 18 JANUARY 2013

“Second-term presidents often shift their focus to foreign policy, especially after most of their domestic proposals turn up DOA in Congress. The lawmakers, who typically dismiss a second-termer as a lame duck, have far less leverage over how that lame duck operates abroad. I suspect this pattern will be no different for Obama.”

DICK POLMAN, ON NEWSWORKS.ORG 22 JANUARY 2013

“Do you get the sense, as I do, that whenever one of these events or disasters happens in the Northeast, there is hell to pay if something isn't done immediately, like right now?

And if it isn’t done right now, the media doesn’t let go of it. Everybody’s talking about it.”

RUSH LIMBAUGH 16 JANUARY 2013

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OPINION

29

Time for Unions to Abandon Thuggery, Push for Growth

U

nion members heckling the mayor at a public event. Giant inflatable rats and human barricades set up outside of one non-union construction site and accusations of vandalism at another.

These aren’t scenes out of the movie Hoffa. It’s just all part of the routine 21st century Philadelphia - unchanged old school, bare knuckle thuggery from the 19th century.

Unions hold a special place in Philadelphia history as well as the country’s history. They forced the elimination of sweatshops and perilous working conditions, wrenching fundamental, necessary changes to a system that devalued human life and kept the masses underfoot.

They were an integral ingredient in the creation, growth and strength of the American working class, the chasers of the American Dream.

Times have changed, of course, and factories and manufacturing are no longer at the forefront of the American economy. And American companies are no longer so insulated that they can exploit workers without consequence.

The unions, however, have not changed. Nor do they appear interested in changing.

That’s a shame, too, because unions have a role to play in 21st century Philadelphia.

The city - and the region - are growing. Businesses are sprouting at a dizzying pace, fueled by a

spirit of innovation and optimism.

Blocks of tired buildings are being revitalized and much more needs to be done to redevelop the city. A steady supply of skilled craftsman and tradesmen would streamline and hasten that effort.

Yet the region continues to be plagued by ugly labor-management union negotiations. From the ongoing tension between construction-related unions and developers, to the highly public demands of the owners of The Philadelphia Inquirer, Daily News and philly. com and the nearly dozen unions representing workers. Meanwhile, the city’s new superintendent is already casting warnings about a tough stance with the teachers’ union and the suburbs have seen such discussions turn ugly.

Unions started as a way to ensure safe working conditions and fair wages but, having largely accomplished that mission, seem to have lost the plot. They’ve rallied behind one simple mantra - “more” and more regardless of the cost or the logic. It’s time to put the winner-take-all approach aside and become more pragmatic.

Unions helped the region (and the country) grow and prosper.

They can do that again. Deflate the giant rats, stifle the public catcalls and erase the fire and brimstone memos to members. It’s time to start thinking beyond the membership to the community, which while growing, can grow faster with the cooperation of, rather than dragged down by, unions.

COMMENTARY FROM ACROSS THE WEB

Economic Inequality Remains a Problem

@Terry_Gillen

At the end of the day, our historically high levels of economic inequality may or may not be found to be causally linked to worse growth outcomes. But either way, as long as inequality is blocking opportunity, keeping working families from benefiting from the growth they themselves are helping to create, and violating the social contract and the basic American value that hard work should pay off, it’s a huge freakin’ problem?

JARED BERNSTEIN ON HUFFINGTONPOST.COM, 21 JANUARY 2013

City’s Vibrant Restaurant Industry Under Seige [the Restaurant Opportunities Center’s] stated intentions - higher wages and better jobs - are essentially commendable. But the group’s history of harassing restaurateurs and releasing shoddy surveys runs the risk of putting small businesses in the red and thousands of jobs on the back burner.

Philadelphia’s diners and elected officials should take the work of the Restaurant Opportunities Center with much more than a grain of salt.

LOWMAN S. HENRY ON PHILLY.COM, 21 JANUARY, 2013

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

Mayor Bloomberg at @usmayors says Mayor @Michael_Nutter has been a success in every way except for one - the 76ers.

18 JANUARY 2013

‘Liberated’ Obama Could Continue to Polarize U.S. Aides tell reporters that the president, having won a second term and never having to run for election again, feels liberated. But liberated to do what? Answer: To wage unremitting war on political adversaries. Why? To win back the House for Democrats in 2014.

If Obama’s friends and aides are accurate, then he has become liberated to act small, to focus on the petty, and to be committed to even greater polarization. Let’s hope they’re wrong. But based on his words and actions since the election, I suspect they are largely right.

KARLROVE ON FOXNEWS.COM, 21 JANUARY 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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BY THE NUMBERS

$16,400

Amount paid to former state Rep. Joe Preston, D-Allegheny from the time the state budget passed in June of 2012 until the end of his term. Preston lost in the April primary election.

$82,000 Salary for Pennsylvania’s legislators in 2012, second-highest in the nation.

11.3%

Percentage of American workers who belonged to a union in 2012, drop from 11.8% in 2011, according to the Bureau of Labor Statistics.

6.6%

Percentage of public sector workers who belonged to a union in 2012, drop from 37% in 2011.

Percentage of Pennsylvanian’s who believe the state’s highways need work, according to a AAA Mid-Atlantic survey.

44%

Percentage of Pennsylvanian’s who would pay an extra $2.50 per week to improve the state’s transportation infrastructure, according to a AAA Mid-Atlantic survey.

4,774 Number of structurally deficient bridges in Pennsylvania, according to PennDOT, the lowest number since 1998.

Number of stolen bases in 2012 by Phillies pitcher Cliff Lee.

Percentage of private sector workers who belonged to a union in 2012, drop from 6.9% in 2011.

35.9%

88%

1

18.9%

Decrease in the number of union workers from 1983 to 2012.

2.9%

Percentage of North Carolina workers who belonged to a union in 2012, the lowest total in the country. The state ranks 29th in average salary.

23.2%

Percentage of New York workers who belonged to a union in 2012, the highest in the country. The state ranks 1st in average salary.

17

Pennsylvania’s rank for average salary.

0

Number of stolen bases in 2012 by new Phillies outfielder Delmon Young while a member of the Detroit Tigers.

0

Number of Philadelphia-area men’s basketball teams ranked in the top 25 of the most recent Associated Press poll.

5

Number of Big Ten men’s basketball teams ranked in the top 15 of the most recent Associated Press poll.

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