SCIENCE CENTER SEEKS NOMINATIONS FOR INNOVATORS WALK OF FAME
NOT YOUR GRANDFATHER’S PENNSYLVANIA ANY MORE
REGION’S BUSINESS
PHILADELPHIA EDITION
A JOURNAL OF BUSINESS AND POLITICS
BUILDING UNCONVENTIONAL
HURDLES
Following a massive expansion, the Pennsylvania Convention Center is about to suffer a steep drop in bookings, and former vendors point to high labor costs as the primary reason
ARCHDIOCESE CLOSING ADDITIONAL CHURCHES COMMISSION PASSES SCHOOL BUDGET WITH DEEP CUTS DREXEL BUYS $8.9M UNIVERSITY CITY SITE
6 JUNE 2013
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6 JUNE 2013
REGIONSBUSINESS.COM
CONTENTS
19
Building Unconventional Hurdles
10
Ambitious Corbett Budget Leads PA to Prosperity
28
Madonna & Young: Not Your Grandfather’s Pennsylvania Any More
Drexel Buys $8.9M University City Site
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REGION’S BUSINESS A JOURNAL OF BUSINESS & POLITICS
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YEAR OF THE INNOVATOR
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Hot Spot Parking Looks to Solve PPA Problems
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Diary Of A Startup: Saunter Plans To Re-Launch Site
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Hutchinson Flushed Old Model To Survive Another Recession
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6 JUNE 2013
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WEEKLY BRIEFING
Archdiocese Announces More Closures After reviewing recommendations from the Archdiocesan Strategic Planning Committee, Archbishop Charles J. Chaput announced over the past weekend that more parish merges will be happening in Philadelphia and Delaware counties. According to a released statement, the Archdiocese says these mergers, in tandem with the overall restructuring of parishes within the Archdiocese, will ultimately strengthen and revitalize parish communities that are better equipped to meet the needs of future parish members. The Archdiocese said parish members affected by the upcoming mergers were informed either through mailed letters or at Mass over the past weekend. Decisions to merge select parishes were a result of the Archdiocesan-wide Parish Area Pastoral Planning Initiative, which began in 2011. The most recent mergers were based on a set of different factors, according to the release. Demographic shifts in Catholic population, concentrated density of parishes in a limited geographic area, history of declining Mass attendance and sacramental activity, economic challenges and a decrease in available clergy members are just some of the factors that went into the Initiative’s decision.
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Restructuring within the parish has been occurring since last year’s announcement of select parish mergers within Chester county and certain sections of Philadelphia, including Germantown, Harrowgate and Manayunk. January, February and May of this year saw more mergers resulting from the Parish Area Pastoral Planning Initiative occurring in North, Lower Northeast and West Philadelphia. The mergers will be effective July 1, and a complete list of mergers and newly assigned clergy can be found at Archphila.org.
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Unemployment Down, Job Ads On The Rise Unemployment has dropped and online job advertisements have risen in Philadelphia, City Controller Alan Butkovitz announced this week. There were 32,659 online active job ads as of April 2013, a 14 percent increase (3,910 more postings) from the same month last year, according to the City Controller’s Economic Report. The month’s leading occupation in these online ads was for registered nurses, which accounted for 1,276 positions. This news falls in line with the city’s unemployment stats. The unemployment rate has fallen the last three months: April’s non-seasonally adjusted rate was 9.6 percent, down from 10.1 percent in March, 10.6 percent in February and 11.7 percent in January.
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6 JUNE 2013
REGIONSBUSINESS.COM
WEEKLY BRIEFING
IN MEMORIAM
Sen. Lautenberg, Only WWII Vet In Senate, Dies
Drexel Buys $8.9M University City Site
The last remaining World War II veteran serving in the Senate, Frank R. Lautenberg, died Monday due to complications from viral pneumonia at the age of 89. The senator was a longtime advocate for environmental protection, transportation and protecting public health. Sen. Lautenberg was responsible for notable legislature including passing a law banning smoking on airplanes. He also authored a law that prevented domestic abusers from possessing guns and the monumental drunk driving laws, including the nationwide .08 blood alcohol standard and the 21 year drinking age law. INFRASTRUCTURE
Report: Issues Cost PA Drivers $9.4B TRIP, a national transportation research group, released a report claiming drivers are paying $9.4 billion annually due to the cost of additional vehicle operations, traffic crashes and lost time and fuel due to traffic congestion. And all of these problems stem from roads and bridges in need of repair. The report says that 73 percent of the major urban roads in Philadelphia are in poor or mediocre condition — the highest percentage in the state. SPORTS
Revived Cycling Race Held In Manayunk The inaugural Parx Casino Philly Cycling Classic was held last weekend, after operators of the Philadelphia International Cycling Championship announced earlier this year they were canceling the event after 28 years due to financial hardship. Liberty Sports Development, Inc., organized the newly branded bike race.
SMALL BUSINESS
Survey: Philly Bad for Small Business Employees On a CardHub.com list of the 30 best U.S. cities for small business employees, Philadelphia came in fourth from the bottom, beating only Sacremento and Riverside in California and Detroit. “The City of Brotherly Love ranks in the bottom 10 nationally in terms of small business vitality, unemployment, stress, and cost of living,” the report said. “It also sits in the middle of the pack for small businesses per capita, small business job growth, new hire earnings, and industry variety.
DREXEL UNIVERSITY
Drexel University recently announced it has purchased a property north of Market Street between JFK Boulevard and 32nd Street. The university was able to purchase the property for $8.9 million from Bridgestone Retail Operations, LLC. This is part of Drexel’s recently adopted 30-year “Campus Master Plan” to revitalize the neighborhoods surrounding the Drexel campus. The parcel of University City real estate is seen as a way of connecting the east and west sides of campus. For Drexel’s 30-year plan adopted in 2012, this is just the beginning as the campus makes multiple moves to infuse neighborhoods nearby with new vitality. Construction of student housing, academic buildings, retail spaces and mixeduse development are already in the works. Mr. James Tucker, senior vice president for Student Life and Administrative Services, said, “Drexel has had this strategically located property in its sights for many years.” Residents of University City can expect an influx of Drexel-funded initiatives to improve the surrounding neighborhood. The university’s location near 30th Street Station has encouraged Drexel to seek corporate partners as their Campus Master Plan seeks to create an “Innovation
Neighborhood” and accomplish President John A. Fry’s vision of the university as an engine of local improvement. This is the second large property Drexel has purchased since Mr. Fry presented his vision. Drexel has other initiatives planned for Philly residents, including plans to provide financial incentives to Drexel employees who buy homes in specific neighborhoods in West Philadelphia and to build more on-campus housing for students. There are also plans to create retail spaces to encourage businesses to serve the university’s large population while partnering with neighborhood public schools and the local community to continue to be an engine of growth in the local economy. University City already has the benefit of proximity to 30th Street Station and Drexel University, but investment by such a powerful community should be good news to those who already own in University City. Any improvements Drexel makes to the neighborhood, whether it is courting more retail businesses, adding more students to the local economy, or partnering with local schools to enhance student learning experiences, are likely to increase local property values. This article was originally published on Philly Living at PhillyLiving.com.
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6 JUNE 2013
REGIONSBUSINESS.COM
WEEKLY BRIEFING
SUPERSTORM SANDY
Report: FEMA Won’t Cover Boardwalk Fix Though a community organization had hope, its portion of boardwalk running through Ocean Grove, NJ, will not be repaired in the wake of Superstorm Sandy. The Asbury Park Press reported that the Federal Emergency Management Association (FEMA) denied the Ocean Grove Camp Meeting Association’s appeal to repair its portion of the milelong boardwalk. Though FEMA could not comment, State Senator Jennifer Beck told the paper that FEMA determined the organization to be a private, nonprofit organization. Therefore, the boardwalk it owns doesn’t qualify for public money. TRANSPORTATION
Employees Protest Philadelphia Airport About 40 airport workers and Service Employees International Union members marched through Philadelphia International Airport Monday, demanding better wages and working conditions from US Airways’ subcontractors, The Philadelphia Inquirer reported. Those protesting did so on behalf of 1,500 low-wage airport workers who would benefit from the better wages and working conditions. The march came one day before a Philadelphia City Council committee hearing on a two-year lease extension between airlines and the city. TOURISM
Beer Week Nears End This coming weekend will be Philadelphia residents’ last chance to drink in all of the happenings associated with Philly Beer Week 2013. The annual weeklong event is a boon for participating bars, breweries and businesses interested in sharing a love of beer. PBW kicked off May 31 and will last until June 9.
Commission Passes Budget With Steep Spending Cuts Philadelphia schools may be in danger of losing art, music and after-school programming in addition to assistant principals, guidance counselors and secretaries. And Mayor Michael Nutter is making one more rallying call. The $2.4 billion budget for 2014 fiscal year was approved last Thursday evening by the School Reform Commission, but, in a released statement, Mayor Michael Nutter said “no responsible adult can support the destructive level of cuts, more than $300 million, that this budget would require.” Mayor Nutter said the loss of the aforementioned programs and personnel would turn schools into “holding areas” for children — “schools in name only.” There are three areas of which to focus, he said, in order to avert the cuts. Mayor Nutter is urging for strong support of a revenue package that would raise the liquor tax and create a cigarette tax for Philadelphia.
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US Open Tickets Shatter Record Because of limited space at the 2013 U.S. Open at Merion, ticket prices are significantly higher than they have been in previous years, according to Philly.com.
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25,500
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The second and third focus involve urging the state to increase support for Philadelphia education and supporting the District’s efforts to redesign teacher work rules “to reduce costs and enhance the education environment for our children.” Calling these cuts the “worst educational outcome in our recent history,” Mayor Nutter said the increased revenue and
change in teacher work rules would allow the School Reform Commission to amend the budget next month. “We must not let our children down. We must prepare them to compete in a global economy. Now is the time for action,” he said. The next School Reform Commission meeting will be held at 5:30 p.m., Wednesday, June 19.
EDUCATION
HIGHER EDUCATION
Girard College Drops High School Program
Cabrini Head Resigns
What started as a free boarding school for poor children 165 years ago, Girard College now faces an indefinite end to its residential and high school services. The Philadelphia Inquirer reported that the Board of Directors of City Trusts voted unanimously Monday night to ask the Orphans’ Court for permission to make changes to cut operating costs, replenish reserves and avoid complete financial failure.
Cabrini College president, Marie Angelella George, announced her resignation Monday and will pursue other academic and professional interests. Ms. George has served as the college’s seventh president since July 2008 and oversaw the implementation of “Justice Matters,” the college’s core curriculum, according to a recent statement. Deb Takes, Chair of the Board of Trustees, will become the Interim President July 3 while the board undertakes a national search.
$71
Cost of a Thursday ticket in 2012
$285
Cost of a Thursday ticket in 2013
$129
Cost of a Saturday ticket in 2012
$345
Cost of a Saturday ticket in 2013
$841
Cost of a weeklong ticket in 2012
$1,400
Cost of a weeklong ticket in 2013
6 JUNE 2013
REGIONSBUSINESS.COM
WEEKLY BRIEFING EXECUTIVE BOOKSHELF
WHO TO FOLLOW
@VisitPhilly Greater Philadelphia Tourism Marketing Corporation just took home a Travel + Leisure award for Best Twitter Feed. If you’re not one of @VisitPhilly’s 46,000-plus Twitter followers, now’s the time. Whether local or visiting, followers will have dozens of Philly events and deals to wade through in no time. @VisitPhilly is also known to share followers’ photos of the city as well. RT @VisitPhilly: Raise your glasses, folks. The sweet summer happy-hour series Center City Sips is back starting June 5 for the summer.
Making Your Business Story Compelling And Memorable Nicolas Boillot’s I Killed a Rabid Fox with a Croquet Mallet teaches the principles of story creation that should inform all business and marketing communications, from ads to case studies, articles to blog posts, tweets to Facebook updates. The goal is to get your business connections immediately paying attention to your story — much like the book’s title will do for any casual reader. Reviewers on Amazon. com are quick to point out Mr. Boillot’s straightto-the-point tone and its brisk page length as great reasons to add this book to your personal library. “I read it on a flight to Geneva and pulled out a notebook and applied the formula to my current project midflight,” one reviewer said.
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RESTAURANT ROUNDUP
MUST-HAVE APP
American Sardine Bar Opens New Beer Garden
Chore Bank Families long overdue on spring cleaning are no doubt enlisting everyone’s help — including kids on summer vacation. With Chore Bank for iPhone ($1.99) you can actually make chores fun while teaching personal finance lessons. The app creates “bank accounts” and lets you price your everyday chores ($0.75 for one room cleaning, for example). Each time a task is done, money goes in the accounts. You can even set an interest rate for the accounts to demonstrate the value of saving. For Android users, check out ChorePay.
This past weekend saw Point Breeze’s American Sardine Bar at 18th and Federal Street open up its much-anticipated outdoor beer-garden seating area. Complete with blue folding lawn chairs and white picnic tables, American Sardine is fully embracing the summer season by giving locals a cozy outdoorseating option. The bar and restaurant will host an all-you-can-eat buffet this Saturday featuring Chef Scott Schroeder’s creations using Colorado brewery Oskar Blues’ farm-raised beef and pork.
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We’re here to honor the brave patients, doctors and advocates who face health challenges every day. But let’s not forget their brave caregivers. Shire established the BRAVE Awards to celebrate the unsung heroes of healthcare: non-professional caregivers. This year’s recipients will be announced in November.
To learn more, go to ShireBRAVEAwards.com.
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6 JUNE 2013
POLITICAL COMMENTARY
REGIONSBUSINESS.COM
Ambitious Corbett Budget Leads to Prosperity
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.
While Washington is awash and abuzz with scandals, some vital issues are being debated in Harrisburg and action is about to be taken. Governor Tom Corbett has a very ambitious agenda. It’s designed to tackle some of the state’s most pressing challenges and continue to build his platform for economic prosperity. The governor has presented the legislature with three major issues to address as they move into the critical days of June: transportation funding, liquor privatization and pension reform. In addition to moving this package of important legislation, the General Assembly must pass a budget by June 30. Unlike his predecessor, who couldn’t seem to find a calendar that didn’t have a start date of July 5, Gov. Corbett’s budgets have been passed on time. They have been fiscally responsible and, as he promised, have not increased the tax burden on hardworking Pennsylvanians. Transportation funding should be a nobrainer. Pennsylvania has the worst bridges in the country. Roughly 5,000 are structurally deficient. Our roads are a mess. Thousands of miles are substandard. Yet, every morning more than 30,000 school buses carry 1.5 million of our children across these roads and bridges. They deserve a safe trip. God forbid that a catastrophic bridge collapse, like the one in Minnesota, occurs before the legislature provides the funding necessary to fix, maintain and build out our transportation system. Transportation funding isn’t just an issue of public safety. It’s also an impediment to economic growth and the vibrant economy the Corbett administration is creating. Businesses aren’t going to expand or relocate where they don’t know that their products and services will get to market safely, reliably and on time. The governor wants to do what several governors’ task forces have recommended: generate revenue from those who use the roads and deregulate oil company motor fuel sales taxes. Fees and taxes for transportation haven’t been increased in nearly 15 years. The Senate will almost certainly pass Senate Bill 1, Senator Rafferty’s proposal, which will generate about 2.5 billion over the next three years. As that legislation moves to the House, the dynamic shifts. No longer is it a theoretical discussion. There would then be
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legislation enacted by one body of the General Assembly, waiting for action by the other. There would be little tolerance on the part of the electorate for delay. The same can be said for liquor privatization. Earlier this year the House passed a privatization bill that now awaits action in the Senate. Public hearings have been held. The time for the Senate to act is upon us. This isn’t a new issue or one that hasn’t been fully discussed for decades. Governors both Republican and Democrat have suggested that Pennsylvania, one of only two states still running liquor monopolies, get out of the liquor business. The taxpayers and citizens of the commonwealth agree. Poll after poll shows strong support for the convenience, selection and better pricing that a competitive system would bring. Pennsylvania’s liquor control system is an archaic throwback to the earliest days of post-Prohibition, when the governor told the people he wanted to create a system that made alcohol purchases as inconvenient and expensive as possible. He succeeded in that quest. Gov. Corbett has the proposal to correct that very costly mistake. Despite years of discussion, and bipartisan and public support, the General Assembly has never shown the political will to get the ball over the goal line. This time
should be different. Never before has one body of the legislature passed a bill. The House now has. The Senate can and should act immediately. Finally, Gov. Corbett has put a plan on the table to tackle the burgeoning pension crisis in Pennsylvania. As it stands, unless we act now, pension obligations will swallow up 40 cents of every new dollar of revenue. This will squeeze out core state-government functions like transportation, education and public safety. Under and unfunded by previous administrations, the pension debt grows exponentially to the point where it will amount to more than $13,000 per family, leaving yet another legacy of debt for our children and grandchildren. The Corbett Reform Plan will gradually move the state away from the current defined benefits plan to a defined contribution plan for future hires. This common sense reform mirrors the system already in place in the private sector. Gov. Corbett’s agenda is ambitious. It’s sound policy that will continue to change the culture of Harrisburg, reform state government and create a new era of prosperity for the Keystone State. The legislature should act quickly to pass it. A stronger economy and a better Pennsylvania will result.
6 JUNE 2013
POLITICAL COMMENTARY
REGIONSBUSINESS.COM
11
Committee Proposals Look To Increase Efficiency
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.
In a hearing of the Philadelphia City Council Finance Committee tomorrow, June 7, committee members will hear testimony on two bills aimed at improving the efficiency of Philadelphia government. Although other bills will be examined at the hearing, which is scheduled for 3 p.m. in City Council Chambers, attention will be on these two bills which will implement paperless/electronic City-related transactions, and require “cost analysis” on certain budgetary proposals. The first bill would require the implementation of an electronic option for conducting and processing all City-related interactions or transactions. The bill goes on to state, “Given the budgetary constraints the City continues to face, it is imperative that the City pursue opportunities to do more with less, including by using technology to reduce costs while improving the delivery of services to citizens.” The bill targets City departments that
continue to rely on paper forms and documentation in order to process requests for services, and its preamble argues that the City’s ongoing investment in technology could yield great budgetary results in this sphere. The bill goes on to cite the City’s Human Resources, Fleet, Revenue and Pensions as departments that have already benefitted from the implementation of paperless technology such as online job applications and document imaging systems. The second bill to be reviewed by the City Council Finance Committee focuses on requiring Fiscal Impact Statements concerning pending legislation from the Finance Director and Controller. The purpose of these statements, according to the bill’s text, would be to “facilitate strategic decision-making that takes into account both policy priorities and also the cost of pursuing those priorities” by providing the “fiscal impact of proposed legislation
on the City’s finances” to City Council. The bill justifies these requirements by pointing the Philadelphia Charter’s listing of “cost analysis” under the duties of the City Finance Director. Both bills were introduced by Councilman Bill Green, who has long been advocating for more proactive use of the City’s technology budget, as well as more data from the City’s Finance Department when questioning budgetary decisions. Both bills now also have a number of co-sponsors from among Councilman Green’s colleagues. The hearing tomorrow will likely feature testimony on the feasibility of implementing these bills from the city departments most affected. One can be sure that Councilman Green will be looking to challenge any of those issues in an effort to push his bills forward. In this manner, a more practical, and therefore more likely to be fully implemented approach, can be determined during the hearing.
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6 JUNE 2013
POLITICAL COMMENTARY
REGIONSBUSINESS.COM
Stimulus Funding Warped PA Education Budget
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 — The House Appropriations Committee this week approved the House GOP version of the state budget with a party line vote, sending the bill to the House for a final vote that could come as early as Monday. The state budget bill is a large, complicated proposal. It details how more than $28 billion in taxpayer money will be spent during the next year, but most of the debate over it usually comes down to a few key issues. Much of the consternation among Democrats who oppose the House budget bill — which basically mirrors the budget proposed by Gov. Tom Corbett in February, minus about $100 million in spending — has to do with the level of funding for basic education. Though Republicans’ main talking point is that they are spending more than $10 billion on education this year, that total encompasses all spending on the Department of Education. What really matters to school districts is the so-called “Basic Education Subsidy,” which is the largest payment the state makes to its 500 school districts. Next year, the GOP budget would spend $5.5 billion in that line item. Republicans are
right when they crow about it being the largest amount the state has ever spent on school districts. So why are Democrats upset about Gov. Corbett’s supposed slashing of education funding — the common refrain is that he cut funding by $1 billion in his first budget in June 2011 and has failed to restore it in two subsequent budget proposals — and why are districts saying they need to raise taxes to make ends meet? Well, it turns out they have a point, too. The real culprit here is the federal stimulus bill, which actually boosted education spending in Pennsylvania while simultaneously giving the state a way to lower its own spending levels. When the stimulus ran out, there was both a funding cliff and a funding crater left behind. Here are the numbers: In the 2009-10 budget, the first year of the federal stimulus, the state cut about $355 million out of the basic education subsidy. But with the help of $654 million in federal stimulus cash, PA school districts ended up with more money than ever. A similar thing happened the next year as the state cut another $140 million, but school
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districts got a record $5.77 billion with the help of more stimulus money. Keep in mind, those were years when Gov. Ed Rendell was running the show and Democrats controlled one chamber of the General Assembly. Since Gov. Corbett took over in 2011, statelevel funding for basic education has increased every year, but it has yet to make up for the funding cliff created by the stimulus. This year’s proposed total is still $272 million less than the stimulus-boosted 2010-11 fiscal year. Democrats make a fair point when they argue — as state Rep. Joe Markosek, D-Allegheny, did on Monday — that school districts don’t care about the GOP’s distinction between state and federal dollars. They also, correctly, point out that Gov. Corbett has cut around $500 million from other line items in the Department of Education. But Republicans will certainly keep on blaming the federal stimulus and the Rendell administration for creating a funding cliff and a funding crater at the same time. The stimulus may not have created as many jobs as it was supposed to, but at least it’s created no shortage of talking points.
6 JUNE 2013
2013: YEAR OF THE INNOVATOR
REGIONSBUSINESS.COM
13
Snowbirds Beware: You May Still Owe Taxes
Michael J. Kline is a partner in Citrin Cooperman’s Philadelphia office. He can be reached at (215) 545-4800 or mkline@ citrincooperman.com
David Seiden is a partner based in Citrin Cooperman’s White Plains office, where he leads the firm’s “SALT” (state and local taxes) matters. He can be reached at (914) 949-2990 or dseiden@ citrincooperman.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.
Throughout the year, we receive phone calls from area code 305 from Florida “snow birds” who want to tell us they finally got their Florida driver’s licenses and, therefore, there is no need for us to prepare a Resident Income Tax Return for Pennsylvania, New York or New Jersey. It is at that point that we need to remind the caller that simply changing one’s driver’s license or spending fewer than 184 days in any one of these states does not mean they are no longer taxed as a resident. In order to understand where an individual is required to pay state income taxes, it is important to understand the terms: “resident,” “nonresident,” “domicile” and “statutory resident.” Unfortunately, these terms are often used synonymously by both taxpayers and taxing authorities, despite there being significant implications of being classified as one versus the other. Domicile Most states define domicile as the locality in which a person intends to make their fixed and permanent home. A person can only have one domicile at a time. Once a domicile is established, such location will continue to be his/her domicile until the person can show “with clear and convincing evidence” that he/she has changed to a new location. The most significant challenge a person has in supporting a change in domicile is proving “intent.” For example, if a person sells his/her existing home (without replacing it with another home in that state) and purchases a home in Florida, there should be little doubt that the person’s intention is to change his/ her domicile to Florida. However, if the same person retains his home in his original state and purchases a home in Florida, determining the person’s intentions becomes much more difficult. Many states, including Pennsylvania, New York and New Jersey, look to five factors to determine a person’s intent when the person has multiple homes: (1) Size and value of homes; (2) Business connections in the state; (3) Location of items of sentimental value; (4) Time spent in a given location; and (5) Location of family. In addition to “intent,” there are other
“points of evidence” states look to when determining if an individual has changed domicile, including a new driver’s license; change of address announcements; re-registering cars; registering to vote; etc. Many tax advisors consider this type of evidence “window dressing.” That is, just having this evidence, without the intent, will likely not reach the “clear and convincing evidence” standard held by most states. However, without obtaining the window dressing, a state will likely deny the change in domicile without looking at the person’s intent. Statutory Resident A person can change his/her domicile but still be taxed as a resident. This is known as being a statutory resident. In general, a non-domiciliary who maintains a permanent place of abode (i.e., home) in a state for substantially the entire year and spends more than 183 days in the state is deemed a statutory resident. There are numerous issues to consider when evaluating statutory resident status, including: (1) what is a “permanent place of abode”; (2) how long is “substantially the entire year“; and (3) what is a “day” when evaluating the “more than 183 days” test. Resident and Nonresident In general, a resident is an individual who is classified as either being domiciled or a statutory resident in a given state. If an individual is deemed a resident, the state typically subjects to tax all of the individual’s taxable income. A nonresident is an individual who is not classified as a resident. A state can require a nonresident to file and pay state tax if the individual receives income from such state (e.g., income from property located in the state). Based on the above discussion, it is clear that there are numerous hurdles an individual faces when attempting to change domicile. Many of these hurdles require careful up-front planning along with contemporaneous documentation. With the proper planning, individuals can and do successfully fend off state tax auditors and reap the benefits of being domiciled in a state that has little or no income tax.
Steadily, but almost quietly, Philadelphia has become a hotspot for entrepreneurs. The combination of great ideas, available capital and a welcoming environment have set the stage to make 2013 a breakout year for innovation and new businesses. To Learn More ... For more information on sponsorship opportunities or to suggest story ideas, call our main office at 610-940-1656. The web: RegionsBusiness.com Facebook: Facebook.com/regionsbusiness Twitter: @RegionsBusiness Sponsored by
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2013: YEAR OF THE INNOVATOR DIARY OF A STARTUP
REGIONSBUSINESS.COM
To Survive Another Recession, Hutchinson Flushed Old Model
Saunter Planning To Re-Launch Site With New Mission After a soft launch of “Yelp for the arts” website Saunter, Adam Kearney has taken notes on what’s worked well with the launch and what’s left him scratching his head and drawing all sorts of squiggles and chicken-scratch notes on the whiteboard. Below, Mr. Kearney hints at what direction the site will take when it relaunches in the months ahead.
BY BRANDON BAKER
In his own words: In our current iteration of Saunter, our users are able to review artists that are presently exhibiting or performing in Philadelphia. Clearly, this is not a sustainable product. We released it in order to analyze our analytics, speak to our users and set our priorities for future development. As much as we want to just push ahead, we know we have to be smart and deliberate with every hour we have. Our tech team is currently on part-time so each hour is precious. We can’t afford to waste time on features that won’t mean a lot to our users. Although we cannot disclose what we have learned, we can announce we will be pivoting in our launch strategy to go national in music. We are currently setting our priorities and time parameters in which we will execute our tasks. We will first release version two to a small, strategic community and then build from there. We will have the new site up in the coming months.
or more than six decades, Hutchinson Plumbing, Heating, and Cooling has proven that it works well under the pressures of a flailing economy. In the past three years, its sales have continued to grow 10 percent each year, with 2012 sales exceeding $40 million — in an industry that faces a downward spiral, no less. The Cherry Hill-based Hutchinson, which employs 260 people, has been in the business of energy efficiency for about six years. It is certified by the Department of Energy as an “Energy Star Performance Contractor,” with Building Performance Initiative training on how to make residential homes more energy efficient. Out of the 53 total accredited companies, Hutchinson is Top 3. The early story of Hutchinson was originally crafted by George Hutchinson in 1948 — quirkily enough, launched using his $35 of life savings stored in a cigar box — and has continued as a family-owned business since. Today, the business is owned by CEO and distant relative Fred Hutchinson, who started with the company in the 1970s and has played a role in the company’s evolution since then. “Time went on for us, and we made it through. Then in 2007, the recession hit, and we decided to take a different turn in the business and enter the world of energy savings,” Mr. Hutchinson said. “We knew we had to be different, and this would make us different than our competitors.”
SUBMITTED
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/TrustHutch
@HutchBiz HutchBiz.com
And it clearly has. Mr. Hutchinson explained that much of the company’s recent success has little to do with the plumbing end of its operations — in fact, a meager 14 percent of Hutchinson’s revenue comes from plumbing services. “There’s something tangible about what we do [with energy efficiency],” Mr. Hutchinson said. “When we go [to survey a home], it’s like describing a ghost to customers — you can’t do it. But when you do reduce the [home’s] energy consumption, anywhere from 6 to 12 percent, that’s a real utility bill reduction.” Mr. Hutchinson said that most client utility bills the company sees after reduction of energy consumption are lowered by about 25 percent. “The better way to save energy is energy efficiency, versus finding alternative sources of energy,” he said. “There’s something tangible about what we do.”
INNOVATION
Science Center Accepting Nominations for Innovators Walk of Fame As part of its 50th Anniversary Celebration, the University City Science Center is accepting nominations for its inaugural Innovators Walk of Fame. The Innovators Walk of Fame will commemorate and celebrate the Greater Philadelphia region’s dynamic history of innovation and the trailblazers who continue to invent the future. The Science Center’s Innovators Walk of Fame will showcase individual innovators in the STEAM sectors of Science, Technology, Engineering, Art and Math, as well as a Corporate STEAM Champion. Categories include: Science – recognizes demonstrated innovation in the sciences Technology – recognizes demonstrated innovation in technology Engineering – recognizes demonstrated innovation in the field of engineering Art – recognizes demonstrated innovation at the intersection of art and technology Math – recognizes demonstrated innovation in the field of mathematics, including finance and economics Corporate STEAM Champion – recognizes a company that has demonstrated support of STEAM subjects in the schools or community All nominees must have a connection to the Greater Philadelphia region. To submit a nomination, visit www.sciencecenter. org/50th/iwof by June 15.
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2013: YEAR OF THE INNOVATOR
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Summit Theme: Considering Expansion, More Than Companies Learn About China, Not U.S. 10k Photos
Uploaded To Style Network BY JULIANA REYES
Textizen CEO Michelle Lee gives her lightning talk before a panel on civic innovation.
BY CARY BETAGOLE From Mesa, Ariz. to Bridgeport, Conn., city government is striving to engage its constituents using new technology, and Philadelphia can be held up as a microcosm of the multi-tiered challenges facing mayors nationwide. More than 26 U.S. mayors and scores more city officials from around the country met in Philadelphia recently for the 7th Mayors’ Innovation Summit to discuss a range of issues. While mayors like Mesa’s Scott Smith were eager to showcase sparkling new civic applications, many in attendance, like Bridgeport’s Bill Finch, were equally concerned with coaxing citizens to use the city website. City government’s job, when dealing with civic innovation, is largely to catalyze excitement toward using technology, but just as in Philadelphia, the mayors working to engage the digitally literate through civic hacking are struggling to properly frame the basic benefits of computing in underserved communities. “There are kids who just think Google is a website. They don’t know it’s a company you can work for,” said Laura Weidman Powers, executive director of CODE2040, an organization that connects black and Latino software engineering students with internships and mentorships. Nearly a third of American house-
holds lacking broadband, said Navarrow Wright, CTO of Interactive One, and 46 percent don’t see it as necessary. Mr. Wright advocated an incremental approach toward “demystifying” perception to technology in these communities. “Start small and scale what works,” he said, while describing a program created by his organization, “Close the Divide,” which taught 600 unemployed Chicagoans to code and launched high achieving pupils into $85,000-per-year jobs. By understanding cultural values, namely the desire for a “sense of control” shared by many underserved youths that a high tech job can provide, we can more productively sell the benefits of technological literacy, Mr. Wright said. He also stressed the importance of framing mentorship programs as “economic opportunities” that add value to the community, rather than as charity. “We go into Asian [countries] to understand the culture when big companies move there, but we don’t do it in Oakland,” he said. Furthermore, mayors can change the perception that a high-tech career is unattainable for underprivileged youths by taking actionable steps to make city infrastructure more accessible to the installation of broadband. Kansas City was chosen as the pilot location for the deployment of ultrahigh-speed internet Google Fiber thanks
AARON OGLE
to accessible infrastructure. “I’m a simple guy. I go to where it’s easy,” said Milo Medin, vice president for Fiber. For example, mayors should ensure conduits for broadband cables are placed when new buildings go up and telephone poles are prepared to host Wi-Fi nodes, as the cost of Wi-Fi hinges on the heavy lifting required to connect individuals to the rest of the network. While it’s true municipalities can take steps to make themselves more appealing to private investment, local communities — including all of Pennsylvania — are banned from taking a controlling role in setting up their own broadband. In fact, the largest city in the country with publicly initiated broadband is 170,000 person Chattanooga, Tenn. Whether the so-called digital divide is getting smaller — because of smartphones and broadening media literacy — or wider — because of the advancement of skills necessary to compete and a globalized workforce — is still getting pushed and pulled. But there is clearly agreement that access and understanding isn’t being bridged quickly enough for the United States to compete. Philadelphia’s battle for impact is in that very conversation. This article was originally published by Technical.ly Philly at TPhilly. com.
Since its launch three months ago, users have uploaded 10,000 photos to FP Me, a so-called “online style network” from clothing lifestyle brand Free People, a division of Navy Yardbased Urban Outfitters. FP Me has been valuable for Free People, an Urban Outfitters’ brand, said spokeswoman Katelyn Brehony, making consumers more likely to make purchases in one visit to the site. This has been shown by a 42 percent improvement in the ”same session conversion rate,” though Ms. Brehony declined to share the conversion rate itself. (Think of a “same session conversion rate” as consumers buying when they walk through the door, rather than shopping around.) The site is a brand-based take on fashion social networks like Chictopia and lookbook.nu. While those sites are open to every brand, FP Me encourages users to upload photos of themselves wearing Free People clothes and allows them to interact with other users’ photos by commenting and liking the photos. Each photo includes links to buy featured items. FP Me has also been a way to track trends. The system shows that a specific slip dress has been featured nearly 450 times and that another dress was featured nearly 100 times. Each Urban Outfitters brand has its own social media team, and Free People has been one brand that seems to be interested in the social media marketing space. It previously launched a crowdsourced, social photo campaign to promote a new denim line. Free People presented the campaign at a fall Philly Tech Meetup. It’s also an interesting step in the idea of content strategy, in which brands are leveraging content from customers to curate a conversation to sell. This article was originally published by Technical.ly Philly at TPhilly.com.
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Hot Spot Parking Looks To Solve PPA Problems hopes to go live within the next eight months, though a launch city for the program has yet to be chosen. “We’d like to [eventually] be in at least two large, metropolitan, tourist-driven areas,” Mr. Davis said. “Places that are about the size of Philadelphia.” BY BRANDON BAKER Hot Spot Parking would monetize its system by providing Imagine, for a moment, a in-app advertising tailor-made world without the woes of for the surrounding areas of a inner-city parking: no need for parking space. endless PPA tickets, misleading If a local shop is having a “10 parking signs or hours spent circling the block for an open gational elements of parking], aims to simplify the parking cally deducted from an account percent off ” sale in the same neighborhood as the parking so that all a driver has to do process by providing a real-time linked to the service. parking spot. From there, he said, custom- space, he said, it would show This is a not-so-farfetched is park the car,” said Jonathan map of available parking. Once parked, the service ers can “live their lives, come up in the app. In addition, the dream world that Hot Spot Davis, co-founder of Hot Spot team plans to take a percentage Parking hopes to make a reality. Parking. “No interaction with would provide a text message back and drive away.” The service, put together as a of parking processing fees. “Essentially, we’re an autono- the post, no interpreting the or email that verifies moreMr. Davis said he hopes to detailed parking information senior project in the past nine mous on-street parking man- signs — that’s it.” The service, to be powered about the parking space of months by four soon-to-gradu- raise about $500,000 to fully agement system that handles the payment aspect and [navi- through a mobile and Web app, choice. Funds are automati- ate Drexel engineering students, develop the program. Business: Hot Spot Parking Founders: Niteesh Prasa, Diego Pinate, Jonathan Davis, Dakota Davis Contact: contact@hotspotparking.com
1st Annual
MARCUM I N N O VATO R of the Year
AWA R DS October 23, 2013
Is your company a catalyst for change? Have you pushed the boundaries in your industry? Is your innovation helping to boost Philadelphia’s growing economy? Marcum LLP and Region’s Business are in search of Greater Philadelphia’s top innovators, and we want to hear from you. The 1st Annual Marcum Innovator of the Year Awards will honor businesses of all sizes that are pioneering new advancements in the fields of Health/Biotech, Technology, Business Management, and Energy. Three winners will be named in each category, based on company size. Tell us about your break-through innovation and what makes your company a leader in our region by emailing a 500-word summary to innovation@regionsbusiness.com. Submissions must be received by August 9, 2013. Winners will be announced at a Gala Awards Ceremony at the Franklin Institute on October 23, 2013. Don’t miss out on this spectacular opportunity to join our region’s business leaders in recognizing and celebrating the spirit of innovation in and around Philadelphia. For complete details including nomination criteria, please call Jacki Hallinan at 484.270.2715. Ben Franklin may have been Philadelphia’s first and most celebrated innovator, but he did not have a corner on the market. Who knows? You could be Philadelphia’s next Innovator of the Year! For tickets to the event, please call 610-572-7112 ext 102. If you are interested in sponsoring this event, please call Deirdre Affel at 610-572-7136. Marcum LLP is a top national accounting and advisory services firm.
Sponsored by
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Difference
www.marcumllp.com
International Member of Leading Edge Alliance
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ADVISORY
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BUILDING HURDLES As a steep drop in bookings looms on the horizon — and on the heels of a major expansion — at the Pennsylvania Convention Center, former vendors say high labor costs are to blame; union leaders point fingers back at management. Convention leaders are looking to privatize operations to avoid an ‘abysmal next couple of years.’
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WE NEED TO TURN THINGS AROUND — OR IT’S GOING TO BE AN ABYSMAL NEXT COUPLE OF YEARS.’ —ED GROSE, EXECUTIVE DIRECTOR OF THE GREATER PHILADELPHIA HOTEL ASSOCIATION
FLICKR.COM/KEVIN BURKETT
BY TOM FERRICK
T
he newly expanded Pennsylvania Convention Center is turning out to be a dud. With a capital D-U-D. The $1.3 billion facility has failed to attract the convention business promised by those who lobbied for the expansion that nearly doubled the size of the facility to 974,000 square feet. The $780 million expansion — paid entirely with taxpayer dollars — was billed as the key to growing the hotel, restaurant and hospitality sector of the local economy. A larger convention center, it was argued, would allow the city to attract bigger conventions and run two smaller ones simultaneously. Two years after the expansion opened, amid much hoopla, it has yet to live up to expectations. Worse still, the future looks grim. Interviews with convention center insiders, along with documents obtained by AxisPhilly, tell this story. The center was supposed to attract several dozen major conventions each
year — “citywides” as they are called — multi-day gatherings that draw thousands of attendees. This year, the center will come close to that goal. It has 20 major conventions scheduled. After 2013, though, the numbers drop off until 2016, when only eight are booked. This is fewer than what the center had before it expanded. This drop in “citywides” will have an immediate and dramatic impact on the hotel and hospitality industry. While conventioneers will pump $510 million into the local economy this year, the number will decline to $230 million three years from now, according to estimates from the Philadelphia Convention and Visitors Bureau, which books conventions into the center. While hotels will get 340,000 convention hotel nights this year, the number is projected to decline to 237,000 nights in 2016. The problem goes deeper than declining sales. Sources said a number of large
groups that did use the center since it expanded had such a bad experience that they have either canceled or postponed plans to return. Those groups include True Value Hardware, which drew 15,000 attendees in 2012, and AORN, a national nurses group that had 14,000 members at a convention this year. One group, the International Association of Fire Chiefs, never even showed up for its event in 2012. It canceled at the last minute based on bad reports about the center from its meeting planner. Combined, these groups would have brought 140,000 conventioneers into the city. Members of the region’s hotel association went to Harrisburg recently to sound the alarm with legislators. Their message: Bookings are behind even pre-expansion levels, and declining use of their hotels will mean fewer industry jobs. It will also mean that revenue from the 15.2 percent tax levied on hotel rooms will decline — revenue that is used to underwrite the center’s losses
and pay off the bonds that were floated to build it. “The state owns the building and we wanted to make sure the legislators from the Philadelphia area were aware of the situation and that we need to turn things around — or it’s going to be an abysmal next couple of years,” said Ed Grose, executive director of Greater Philadelphia Hotel Association. What’s the main reason the convention center is failing to draw business? Read the post-convention reports and the mantra is the same. The groups like the new convention facility; their attendees love the city, but the same complaint echoes again and again in these reports: Labor hassles, labor costs, labor overtime. Here is an excerpt from a report on the convention center compiled by its consultant, the PFM Group, after interviewing meeting planners and others who used the center: “It is clear that the primary issue facing the PCC — past, current, and future — is its labor supply and their ability/ inability to satisfy customer expecta-
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VIRTUALLY EVERY CUSTOMER REPORTED THAT PCC SHOW LABOR WAS INEFFICIENT, HOSTILE OR BOTH. THE PCC LABOR SITUATION IS PERCEIVED AS THE WORST ENCOUNTERS ANYWHERE IN THE COUNTRY AT THIS TIME...AND THE CUSTOMER CAN AVOID IT SIMPLY BY CHOOSING ANOTHER VENUE.’ —2002 ECONSULT REPORT
tions,” said the draft report, a copy of which was obtained by AxisPhilly. “The issue was highlighted in nearly every interview PFM conducted with internal and external stakeholders.” It’s hard to read those words without a strong sense of deja vu. Labor problems have hurt the center since it first opened in the early 1990s. Consider this excerpt from the 2002 report done by the Econsult group for the center’s authority: “Virtually every customer reported that PCC show labor was inefficient, hostile or both. The PCC labor situation is perceived as the worst encountered anywhere in the country at this time … and the customer can avoid it simply by choosing another venue.” Improvements have been made since that damning 2002 report. A Customer Satisfaction Agreement was negotiated with the unions in 2003 to address some issues; an outside labor manager (the Elliott-Lewis Co.) was brought in to enforce the CSA; the center began hospitality training for workers, who were more used to the rough-and-tumble environment of construction sites. Yet serious problems remain. To summarize conversations with people in the convention business, the Philadelphia facility is considered too costly, presents too many hassles and cannot deliver services at a reliable and predictable cost. Convention organizers tell tales of getting bills after the fact that far exceed their estimated costs — mostly due to unforeseen overtime costs. Since it charges union wages (carpenters cost $65.01 an hour, electricians $71.62), Philadelphia
already is one of the most expensive venues for a convention — on a level with Chicago and New York and higher than competitors such as Boston, Washington, D.C. and Orlando. Insiders say they expect to pay a premium when they come to this city — but are willing to do it because the site is so popular with exhibitors and attendees. But the add-ons and unexpected costs are difficult to swallow and plan for. “You have to remember that a convention provides most of the operating money for an association,” said one industry insider. “If you are a meeting planner and you come back with a bill that is 10 or 20 percent higher than estimated, you will be in trouble with your client. Very big trouble.” On paper, this should not happen. The 2003 Customer Satisfaction Agreement is designed to prevent unpleasant surprises. In reality, it does not, critics say, because it is not enforced. As a result, meeting planners complain, some unions load up on foremen or provide too few workers — so those who do show up can get overtime — and appear to work at a deliberately slow pace so as to assure the clock will run into the overtime zone. One study, which compared the costs of running a similar convention in New York and Philadelphia found that on average it took longer to set up and take down a convention in Philadelphia, that crews include many more (costly) foremen and that overall overtime costs were significantly higher. In short, it was not the basic hourly rates that made a difference. It was the add-ons. Six unions work at the center:
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The Pennsylvania Horticultural Society Philadelphia Flower Show is held annually at the Convention Center.
the riggers, the stagehands, the laborers, the teamsters, the electricians and the carpenters. While all get the blame for any hassles or inefficiencies — perceived or real — people familiar with operations at the center said five of the six unions do perform up to expectations. “We don’t have a labor problem,” this source said. “We have a Carpenters Union problem.” The head of carpenters at the center is Ed Coryell Jr., son of the president of the Carpenter’s District Council. He failed to return phone calls seeking comment. Pat Gillespie, head of the Building and Trades Council, which is the umbrella group for area trade unions, said the charges leveled were inaccurate and unfair. “Do we have warts? Yes,” Mr. Gillespie said. “There are some things we could do better. There are efficiencies we could advance.” But, he added, labor had already made numerous concessions. He said that it’s the “outsiders” (the out-of-town events contractors) and the “insiders” (the publicly paid center management) who are mostly to blame.
The problem, Mr. Gillespie said, lies not with labor but with meeting planners and other contractors who want to inflate their bills to increase their profits and resent paying union rates. He also said the center was being used as a “political trough” and not run as a business. He was referring to the existing management of the center. Mr. Gillespie also serves on the 15-member Convention Center authority board. The board currently is considering handing over management of the center to a private firm that specializes in running such venues. Two local firms are in the running: SMG, which is based in Conshohocken, and Global Spectacor, which is a division of Comcast. In the past, center consultants have been skeptical that just a change in management would solve the center’s problem, and that more fundamental changes were needed. Some have called for a “unified workforce” without so many unions and the jurisdictional disputes they bring. Others have called for the center to create an in-house staff to set up and
TERRENCE J. CASEY
take down conventions. The center’s board will have the opportunity to make changes this summer because the 2003 Customer Satisfaction Agreement expires in mid-July. Gregory Fox, chairman of the center’s board, said the situation at the center was “unacceptable” and that the board was taking a number of steps to rebuild customer confidence. One is the issue of management. The other is the issue of the soon-to-expire Customer Satisfaction Agreement. He said the board also wants a policy of “billing transparency” to address Mr. Gillespie’s claim that meeting planners will keep whatever savings they will get and not pass them on to clients. Mr. Fox declined to say what changes the board would seek in the CSA, saying it was premature to discuss it. The problem is that while the unions may have a monopoly on the work at the center — and the political clout to keep it — the convention market is a national one. Meeting planners have a wide array of choices for venues and can vote with their feet if they are unhappy with any one locale. And right now, they are unhappy with the
Philadelphia experience. To compensate, current convention center management has had to offer subsidies to associations — in the form of lower rent and other savings — in an attempt to overcome buyer reluctance. It spent $5 million on such subsidies last year. Jack Ferguson, head of the Convention and Visitors Bureau, has the job of selling the city to prospective convention clients. The future of the center, he said, “will be based on our ability to perform for customers in a competitive, price-value and hassle-free way.” And Mr. Ferguson is optimistic the center can work out of its current slump and get new business in 2016 and moving forward. But if the latest efforts to fix the problems fail, the city and state could be saddled with a $1.3 billion white elephant. This article was originally published on AxisPhilly.com.
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6 JUNE 2013
FINE ESTATES PREVIEW
REGIONSBUSINESS.COM
Private Contemporary Home In Chaddsford This 20-year-old contemporary home, housed on 74 magnificent acres in Chaddsford Township, contains three bedrooms, three full and three half bathrooms and a two-car garage with extra parking space. There will be plenty of nature to take in as the two-story home offers immediate views of the property’s sprawling hills and a beautiful pond. The first-level master bedroom contains a dressing room and walk-in closet, as well as a designated sitting area. The family room, eat-in kitchen, dining room and living room fill out the remainder of the first floor, which also leads to a porch deck on the side. The second level contains two bedrooms and full bathrooms. This property is only 30 minutes from Philadelphia International Airport and offers the opportunity for a lifestyle with the benefits of country living, but with all the suburban conveniences. For more information, please contact Eleanor Morsbach Godin of Prudential Fox Roach at (610) 341-4550.
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REAL ESTATE
Weccacoe Flats Approaching Completion BY BROOKE HOFFMAN
year, L&I didn’t issue demolition permits for the older homes until March of this year. In April, outh Philadelphia is full of fun location L&I approved a slightly different construction names like Moyamensing and Passyunk approach: a three-story modular structure. All of the units have three bedrooms and two — old Lenape place names. Another impossible-to-pronounce location (unless you’re and a half bathrooms. The website boasts “higha seasoned local) will soon be finished and is end finishes� like Bosch appliances and bamboo flooring throughout the units. The second- and almost sold out. Weccacoe Flats, located at 817 South 5th Street third-floor units have an elevator with private in Queen Village, features three floor plans in a access directly into the unit. The ground-floor unit has a 130-square-foot structure that covers two South Philly lots. It was only May of last year when the Zoning patio; the second floor unit has a private deck, Board of Adjustment approved the demolition of while the third floor has an “exclusive� roof deck. two existing homes and the relocation of lot lines All units also have a storage space in the basein order to create this new mini-development. ment. Weccacoe Flats is a three-story structure Another selling point the Weccacoe Flats with an open roof deck on the third floor. The developers are pushing is its sustainability. It property also has an enclosed yard along with was designed by development firm Bancroft three off-street parking spots that are accessed Green, and the website states the project is seekby an easement. The three-unit, high-end devel- ing LEED Platinum certification. Great views opment replaces two row houses on South 5th and low energy bills for only $725,000. This article was originally published on Street in Queen Village. Even though Licenses and Inspections issued the Philadelphia Real Estate Blog at Philathe permit for new construction in August of last delphiaRealEstate.com.
S
820 Brushtown Rd, Gwynedd Valley, PA
84 Norristown Rd, Blue Bell, PA 19422
$3.65 M (6005156)
$965,000 (5962964)
5 beds | 6 full, 3 partial baths Timeless & Elegant describe this true estate in prestigious Gwynedd Valley. Built by the builder, for the builder, the residence is sited on over 1.5 acres and offers over 11,000 sf of living space. This home was designed for those with the most discriminating taste and an appreciation for fine living.
5 beds | 5 full, 1 partial baths Meticulously maintained, solid built, Philomeno & Salamone estate home offers nearly 6,000 sq.ft. of living space on 3/4 acres w/3 bay garage. Conveniently located on a private cul de sac in desirable Blue Bell,this home was designed to entertain with its’ custom finishes t/o including newly renovated gourmet kitchen.
1204 Hunt Seat Dr, Lower Gwynedd, PA
936 N Penn Oak Rd, Lower Gwynedd, PA
Nicole Miller-Desantis
(215) 641-2727 (office) (267) 419-1454 (direct)
(215) 850-1305 (cell) (215) 999-5817 (fax)
BROOKE HOFFMAN
$1.125 M (6196317)
$948,500 (6196308)
5 beds | 3 full, 1 partial baths Tastefully decorated colonial in desirable Polo Club Estates in the heart of Gwynedd Valley. Sited on over an acre, this well positioned, brightly lit home has improvements throughout. Hardwood flooring, custom paint, newly renovated powder & mud rooms along with numerous other finishes that highlight this beautifully maintained home. 4 beds | 3 full, 2 partial baths Sited on a nearly 1 acre wooded lot in popular Penn Oak, this pretty stone colonial boasts nearly 7,000 sq. ft. of living space w/ its full, finished, walk-out basement. This home offers a bright, open floor plan with access to the outdoors from nearly every room. Kitchen w/ Breakfast Room is welcoming and provides access to large, rear deck for easy entertaining.
Blue Bell Office 686 Dekalb Pike Blue Bell, PA 19422
26
Q&A
6 JUNE 2013
REGIONSBUSINESS.COM
ROBERT HART’S
GRADUATION PARTY
Optofluidics recently graduated from the University City Science Center, but the nanotech startup will remain in the Philadelphia office as it expands
What’s the elevator pitch for Optofluidics? It depends on who I’m talking to. There’s a lot of different elevator pitches we have. If you’re a customer that wants to buy a piece of our equipment, right now you’re going to be somebody in academia or the pharma industry. And to you I would basically say, we’re selling a totally revolutionary system that can control, manipulate and analyze nanoparticles in a way that can never be done before. We can actually grab and hold on to the nanoparticles and allow you to analyze them. And these nanoparticles are thousands of times smaller than what you could manipulate before... But we’re launching our products in about five months so we don’t have anything to sell just yet. Why are you staying in the University City Science Center and Philadelphia? There’s a lot of reasons. Philadelphia’s been really good to us so far. One reason we’re still here is because we’re right in the center of a huge talent pool. For example, we recently had a couple of summer interns join us and when we put out resumes to the local universities, we just get some top-notch people. I think part of the reason has to do with that we’re kind of a sexy technology company and
/opfluid
we’re a startup. Startups naturally attract some really good talent because it’s an exciting, fun workplace environment and everyone thinks they’re part of something bigger. But the other part is that we’re right between Penn and Drexel and there’s also Temple and Rutgers and Villanova, so there’s a huge amount of talent in the area we can take advantage of. Last year you won PACT’s Philadelphia Life Sciences Startup of the Year and most recently the Corporate Innovation Award by the IEEE Society. How does it feel to be recognized early on? They’re tremendous honors. We’re extremely happy to get both of those awards. It was very gratifying to know all the hard work we’ve put in was recognized. It gave us warm, fuzzy feelings. Usually at a startup you get knocked around a lot and you don’t get too much good news and you have to savor the little bit that you get, so we’re definitely still savoring that. — Rich Coleman Read the complete interview on our website at RegionsBusiness.com.
/optofluidics-inc
www.optofluidicscorp.com
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OPINION
Not Your Grandfather’s Pennsylvania
G. Terry Madonna is director of the Center for Politics and Public Affairs at Franklin and Marshall College
Michael Young is managing partner of Michael Young Strategic Research
CONTRIBUTE Send comments, letters and essays to feedback@ regionsbusiness.com. Opinions expressed by guest writers do not necessarily reflect those of Region’s Business.
When asked to describe Pennsylvania, Washington political consultant James Carville, who helped elect Pennsylvania Gov. Bob Casey and U.S. Senator Harris Wofford, once declared that the state was “Philadelphia and Pittsburgh with Alabama in between.” On another occasion, he added: “Pennsylvania is two cities separated by Alabama.” Mr. Carville’s now famous characterizations expressed succinctly the conventional wisdom — then and now: Pennsylvania is a culturally conservative state where tradition is strong, change is slow and fundamental beliefs are enduring. In truth, that description of the state culture was probably fair for much of the 20th century. But the past may no longer be prologue for Pennsylvania. Indeed, much recent polling in the state strongly suggests a long-term dynamic shift is underway in public opinion, especially among younger Pennsylvanians — a shift that may foreshadow major changes in Pennsylvania’s political culture. Almost certainly the historical assumption that Pennsylvania’s voters are hard core cultural conservatives is outdated. The Keystone State simply isn’t your grandfather’s Pennsylvania anymore. The most recent Franklin & Marshall College poll offers a glimpse of why this is occurring by examining voter’s attitudes about marijuana, gay rights and gun control, all hot-button cultural issues that tend to clearly locate voters along the conservative-liberal continuum. Of these, the legalization of marijuana is arguably the litmus test of whether one is culturally conservative or liberal. Not surprisingly Pennsylvanians still oppose recreational marijuana, 54 percent oppose while 38 percent approve. Quite surprising, however, is that support for recreational marijuana has increased almost 75 percent in the past seven years. In 2006, barely a fifth (22 percent) approved, but
approvals now approach four in 10 Pennsylvania voters (38 percent). Even more dramatic, a stunning 72 percent of voters opposed recreational marijuana in 2006; today, it is slightly more than half opposing (54 percent). At this rate of change a majority of Pennsylvanians might favor recreational marijuana before this decade ends and possibly sooner. In fact, other bellwether cultural issues already enjoy majority support including medical marijuana, some gun control measures, gay marriage and gay civil unions. A striking eight in 10 voters (82 percent) favor allowing medical marijuana if prescribed by a doctor. Almost nine of 10 voters (89 percent) favor universal gun background checks for all gun sales. More than half (54 percent) favor gay marriage, while more than six in 10 (65 percent) favor civil unions for same-sex couples. The strongest support for liberal oriented cultural issues tends to come from women rather than men, Democrats rather than Republicans, college-educated voters and younger voters. But it is the support of younger voters that looms most important. Youth is the demographic cohort leading Pennsylvania’s liberal culturalization. More specifically, dynamically changing attitudes toward a cluster of culturally significant issues are being driven by young college educated voters living in the eastern half of the state. Demography may not always be destiny.
But when trends are driven by younger voters, who are entering or have recently entered the electorate, then demographic trends often do portend irreversible change. And that is what we see here. That they are young is significant because over time their generation will become a larger and larger part of the total electorate; that they are college educated is significant because most of the state’s future leadership will come from this group; and that they are from the eastern part of the state is significant because this is where population growth is occurring in Pennsylvania. But while young voters are leading this parade they are far from comprising the entire parade. Support for gay marriage for example is a solid 55 percent in Philadelphia, but it is an overwhelming 70 percent in the Philadelphia suburbs. Even in the less than liberal Central Pennsylvania area, support for gay marriage is just short of a majority (49 percent). Only in western Pennsylvania outside of Allegheny County, and in some rural areas of the state do the more traditional views on marijuana, gun control measures, and gay unions prevail. And these areas, as noted, are growing slowly if at all compared to the rest of Pennsylvania. It is no longer the case that cultural change is coming to Pennsylvania. It is here already and will only accelerate in the years ahead. Pennsylvania politicians may choose to ignore these trends, but neither they nor anyone else will stop them.
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OPINION COMMENTARY FROM ACROSS THE WEB
Penn State Trustees Forfeited Right to Offense
Lautenberg Put Up Some Fights of a Lifetime
Penn State Trustee Keith Eckel complains... that “a well-funded and highly vocal constituency has adopted a style of communication with a ‘burn it all to the ground to prove a point’ approach to the business of this great University. In doing so, they have resorted to personal attacks and misinformation to cloud the issues and distort reality.” ...One cannot throw one’s honor on the floor one day, and try to defend the next. The controlling majority of the Trustees have accordingly forfeited their right to resent, or take offense to, anything that anybody says about them, as long as it is honest and truthful. They do not even have the right to be angry.
The Senate’s last World War II veteran, Lautenberg was in many ways known for what he fought, whether it was the Axis, the tobacco industry, or Dick Cheney. So it’s fitting that it was one of his most prominent foes, Gov. Christie, who offered the pithiest assessment of the senator after his passing Monday. “Senator Lautenberg fought for the things he believed in,” Christie told reporters, “and sometimes he just fought because he liked to.” ... The Republican governor can serve the state best by appointing a competent caretaker to Lautenberg’s seat and supporting a quick special election - though that would mean breaking from recent practice on the Democratic side. What’s certain is that whomever Christie chooses, New Jersey’s next senator won’t approach the precedent set by Frank Lautenberg without a lifetime of fighting.
WILLIAM LEVINSON FOR THE PATRIOT-NEWS, 4 JUNE 2013
Parishoners’ Faith Sees Them Through Loss, Pain Sunday’s announcement concerning parish closings and mergers from the Archdiocese of Philadelphia did not come as a surprise. That did not make it any less difficult to hear. All told 24 parishes across the region will suddenly become 10. When the moves are complete, there will be 236 parishes in the five-county Philadelphia archdiocese. Come July 1, there will be five fewer parishes in Delaware County. Those congregations will merge with nearby flocks. The closings and mergers are the result of a lengthy study by the Archdiocesan Strategic Planning Committee that has been ongoing for months. Everyone knew it was coming. That did not lessen the pain, the sense of loss, and the anger. Those are natural reactions to a very personal decision that strikes at the core of their faith — their community church. It’s where many longtime parishioners got married, where they baptized their children, where they sent their kids to school, and where they buried loved ones. Now it is being taken away.
PHILADELPHIA INQUIRER EDITORIAL, 4 JUNE 2013
PSU Mounts Sweeping Reform In Scandal’s Wake Penn State now has the smallest board (30) of any of Pennsylvania’s state-related universities, requires the largest number of members (majority) for a quorum and provides alumni the greatest voice in its university governance with nine slots. While some question the size of our board, it’s worth noting that numbers vary greatly among universities. For example, the Massachusetts Institute of Technology provides for up to 78 voting members. There is still more to be done, and we continue to consider expert advice and counsel. ... Since November 2011, the board of trustees has sought to identify where failures occurred in governance and compliance, and has worked to implement reforms to enhance our governance and improve our structure. Our commitment to that process and our refusal to be distracted by agendas not conducive to that charge have enabled us to accomplish what very few educational institutions have been able to do.
DELCOTIMES.COM EDITORIAL,
KEITH ECKEL ON PHILLYBURBS.COM,
4 JUNE 2013
4 JUNE 2013
REGION’S BUSINESS A JOURNAL OF BUSINESS AND POLITICS © COPYRIGHT 2013 INDEPENDENCE MEDIA 350 SENTRY PARKWAY, BLDG. 630, SUITE 100C BLUE BELL, PA 19422 610.572.7112 | WWW.REGIONSBUSINESS.COM
Celebrate @phillybeerweek @IronHillCH tonight w release of Lex Luthor, Kryptonite, Sweet Leaf & Nelson Muntz IPA’s @IRONHILLCHIEF
@PhillyWeekly
@StephanieEspo
PHILLY BEER WEEK: Not sure what to order? Here are 10 brews that’ll blow your mind http://ow.ly/lvvdW
Market value of Girard College residuary fund slowly recovering. Valued at $236 million today.
29 MAY 2013
@ganggreenie36 Hey Philly, schools are closing, churches are closing all because people are moving out! Nobody wants to live in an over taxed slum city!!
3 JUNE 2013
@ddubwatson Dr. George just resigned as the president of Cabrini College...shocked. 3 JUNE 2013
1 JUNE 2013
@NJTOYMsD
@NewsHour “He barked a lot but he also had friends on the other side of the aisle.”-Herb Jackson (@record_dc) on Lautenberg
My favorite shore town. Not happy. Ocean Grove boardwalk appeal for FEMA aid denied. 2 JUNE 2013
4 JUNE 2013
@Michael_Nutter
@DanielleCohn
#phillycyclingclassic has started on the Manayunk Wall, women cyclists have started, men later today - great race in a great City! Have fun!
This Thursday. 3-8 PM. PHL Party at The Porch at 30th st. Be there.
2 JUNE 2013
@dfpatten Philadelphia really came out to support bike racing on Sunday!
EDITORIAL BOARD CEO and President James D. McDonald Managing Editor Terrence J. Casey Associate Editor Rich Coleman
3 JUNE 2013
@PAindependent Sen. McIlhinney says he’s going to write his own bill and scrap the liquor privatization bill passed by the state
23 MAY 2013
4 JUNE 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
22
2
$1,798
$511
Gallons of gas Philadelphians waste annually in traffic jams
Days Philadelphians spend annually in traffic, according to nonprofit organization TRIP
Annual costs caused by problems with Pennsylvania’s transportation system
Cost per driver to move past “maintenance only” on roads and bridges
25
Philadelphia’s rank on the American Fitness Index of the nation’s fittest cities
199.2
Philadelphia’s death rate (per 100,000 people) for cardiovascular disease
87.3%
Philadelphia residents who have health insurance
52.6%
Philadelphians who say they are in “excellent or very good health”
43.9%
FLICKR.COM/ROBOTBRAINZ
27.1%
1,000,000
Philadelphia residents who are obese
Bobbleheads distributed by the Philadelphia Phillies, as of Tuesday night
24.9%
27
Different bobbleheads in the Phillies collection
2001
The first bobblehead, of Pat Burrell, is distributed
Philadelphia residents who say they are “at least moderately” physically active
57%
32%
16%
Parents who have received texts from their children in the same house
Parents who have received texts from their children in the same room
Parents who have received texts from their children at the same dinner table
Philadelphia residents who eat five-plus servings of fruits and vegetables daily
20.4%
Philadelphia residents who are smokers
9.9%
Philadelphia residents with asthma
9%
Philadelphians with diabetes
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