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PHILADELPHIA EDITION

A JOURNAL OF BUSINESS AND POLITICS

UNIVERSITY CITY: WHERE THE ACTION IS

University City is booming. From the number of startups that stick around to the increasingly impressive talent pool, University City is the place to be for businesses. Region’s Business set out to learn more about this side of town.

PHL LOCAL GAMING CRITICIZES CITY ASSESSMENT MARCUM INNOVATOR OF THE YEAR AWARDS: RECAP RIGHT, LEFT WINGS UNITE TO KILL TRANSPORTATION

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CONTENTS

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“Learning is an ornament in prosperity, a refuge in adversity, and a provision in old age.”

— Aristotle

19 University City: Where The Action Is

1900 Arch Street Up to 16,000 SF Retail Space Outdoor Seating Spring 2014 Delivery

23 Marcum Innovator Of The 4 12 25 27

Year Awards Celebrates Philly Innovation

Weekly Briefing Political Commentary Fine Estates

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Making Pennsylvania More Competitive

Q&A: Craig Spencer, Arden President And CEO

PRESIDENT AND PUBLISHER James D. McDonald PHILADELPHIA EDITOR Rich Coleman BUSINESS EDITOR Michelle Boyles CONTRIBUTORS Brandon Baker, Eric Boehm, Charlie Gerow, Don Lee, Juliana Reyes, Scott Staruch, Tim Holwick, Cait O’Driscoll, Kellie Ptrick Gates, Tom Ferrick, Noah Ostroff PROOFREADER Denise Gerstenfield ADVERTISING DIRECTOR Larry Smallacombe

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

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

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21 NOVEMBER 2013

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DEALBOOK

TRAVEL

US Air To Fly Direct From PHL To Edinburgh Beginning in May of 2014, travelers will be able to fly directly from Philadelphia to Edinburgh, Scotland, via nonstop flights offered by US Airways Group.

Daily service will be offered seasonally (May 23 through October 1) with outbound flights departing at 8:50pm and arrivals coming in at 1:35pm on one of the airline’s 176-seat Boeing 757 aircraft.

With this latest addition, US Air will link Philadelphia International Airport with a total of 19 trans-atlantic destinations.

Nutter’s International Trade Mission Bears First Fruit ESSA Agrees HEALTHCARE

Still on an international trade mission, Mayor Michael A. Nutter announced from London that GuardianMPS will establish its U.S. headquarters in Philadelphia, with an opening expected early next year. The initial group will consist of ten high-tech staff, which Guardian expects to triple over the following three years. A subsidiary of the UK’s Guardian24, a supplier of mobile solutions, GuardianMPS recently completed a trial of its Mobile Personal Safety product with the Department of Human Services (DHS) and has signed a contract for expansion.

MPS is designed to transform a cell phone into a dedicated personal safety device, allowing users to schedule their activities. If an incorrect PIN or duress code is entered, Guard-

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ianMPS can use the phone’s GPS to locate and monitor the user’s situation and advise relevant authorities if necessary. A three-month trial with 27 DHS users was reportedly widely successful.

Stroudsburg-based ESSA Bancorp announced its agreement to buy WilkesBarre neighbor, Franklin Security Bancorp.

ESSA will pay approximately $15.7 million and gain Franklin’s two Pennsylvania branches, $223 million of assets, $149 million of loans and $168 million of deposits in a deal expected to close in the second quarter.

The $1.4 billion-asset ESSA will expand its current consumer and mortgage business into Franklin’s market.

Richard Mebane, president and chief executive of Franklin’s bank unit will join ESSA as president and stockholders will receive an estimated $9.75 per share.

21 NOVEMBER 2013

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SUSTAINABILITY

Greenbuild 2013 Comes To Philadelphia The Philadelphia Convention and Visitors Bureau expects 22,000 people to attend Greenbuild 2013 this week, a yearly conference of leaders from the business, environmental and political fields, covering topics from engineering, human health and architecture to community gardens, financing and resiliency.

In addition to more than 100 education-oriented programs and 700 exhibitors, Greenbuild brings with it a goal to introduce new sustainability initiatives to its host venues. Through that effort, the ability to compost waste will be introduced to the PA Convention Center with a goal of increasing waste diversion rates from 9.5 percent to 75 percent.

The organization’s Legacy Project works to ensure that it has a positive impact on its host city’s community.

Here, it will work with the students of the Smith Memorial Playground and Public Workshop to create an obstacle course that is designed to help children connect with nature.

Greenbuild 2013 will also see the launch of the newest version of the LEED green building rating system, LEED v4, which provides new tools to help streamline the certification process.

SECURITY

AlliedBarton Names New President, COO AlliedBarton Security Services announced last week the promotion of Carol Johnson to President and COO. In her new role, Johnson will continue to report to Bill Whitmore, AlliedBarton’s Chairman and CEO. Johnson will oversee operations and business development, create and execute on strategies that deliver an exceptional client experience, and help guide the organization’s growth.

WEEKLY BRIEFING

Center City Seeing Booming Residential Development

BY NOAH OSTROFF

borhood that houses the Italian Market.

It has such a gorgeous appearance that Center City is quickly gaining ground the literal translation to Bella Vista as one of the largest residential down- means “beautiful view.” If you’re looking towns in the nation. Good things come for significantly historic neighborhoods, in threes and Center City is no exception. visit some of the oldest neighborhoods Center City operates as the country’s in Philadelphia with Old City, Society third largest central business district Hill and Queen Village. The real estate and is also renowned as the third most in the area features beautiful homes populous city in the nation. Philadel- ideal for anyone from the urban dweller phia has an abundance of employment to big families.

Look no further than Rittenhouse opportunities with affordable housing.

This leads to great real estate finds for Square for a visually intriguing neighCenter City and the surrounding area. borhood. Known as the signature Riding the wave of Philadelphia’s fashionable residential district, the revitalization, Center City has emerged homes are classically maintained with as one of the most profitable areas to reside in. The thriving area reveals Center City as a Philadelphia neighborhood with a rich abundance of economic growth and residential de velopment, with no signs of slowing down. Center City has continued to reinvest and expand the tenets that make major cities thrive. Food, culture, nightlife, work, and residential living are all constantly being improved with affordability in mind.

With constant real estate developments in the downtown area, many families and traditional brownstone gothics and young professionals are moving to the Victorian mansions, with some modern surrounding neighborhoods for easier apartments and condominiums nestled convenience. Explore one of many Cen- in between. While Fairmount neighter City neighborhoods that encompass borhood is known as a fine arts mecca, residential areas: Bella Vista, Fairmount, Northern Liberties the town known for Graduate Hospital, Loft District, Logan an electric nightlife. The neighborhood Square, Northern Liberties, Old City, wears its hipster connotations proudly East Passyunk, Point Breeze, Queen Vil- with affordable prices. The nightlife and lage, Rittenhouse Square, Society Hill, artistic expression attracts a younger demographic into the neighborhood and Washington West.

While there seem to be many Center and provides many real estate opportuCity neighborhoods, each of the neigh- nities for newcomers.

This article was originally pubborhoods has a distinguishing character that sets it apart from the rest. Check lished in the Philly Living blog at out the real estate at Bella Vista neigh- PhillyLiving.com/blog.

FOOD & DRINK

City Named ‘Late-Night Capital’ Of U.S. Philadelphians work hard and play late, as recently recognized by Esquire. The magazine named the city of brotherly love the late night capital of the country, even including a list of the city’s top night-owl spots broken down by neighborhood: Northern Liberties North Third, 801 North Third St. Standard Tap, 901 North Second St. The Dapper Dog, Second and Poplar Sts. Old City Khyber Pass Pub, 56 South Second St. Chinatown David’s Mai Lai Wah, 1001 Race St. Midtown Village McGillin’s Olde Ale House, 1310 Drury St. Rittenhouse Square Good Dog, 224 South Fifteenth St. Queen Village Kennett, 848 South Second St. Bella Vista Royal Tavern, 937 East Passyunk Ave. East Passyunk Cantina Los Caballitos, 1651 East Passyunk Ave. Point Breeze South Philadelphia Tap Room, 1509 Mifflin St. Graduate Hospital Grace Tavern, 2229 Grays Ferry Ave. The Sidecar Bar & Grille, 2201 Christian St.

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21 NOVEMBER 2013

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WEEKLY BRIEFING ECONOMY

Report: Economic Recovery Slow In Pennsylvania The Keystone state made it through the recession better than others, but a recent report from Wells Fargo Securities suggests that recovery is lagging in the last few years. With a GDP of 1.7% in 2012, Pennsylvania is far below the national average of 2.5% with myriad factors in play.

While national unemployment rates are 1.3% higher than those in the state, non-farm employment grew less than 1% versus 1.7% in the rest of the country. The state has lost 50,000 public sector jobs in the past three years and local government payrolls are down 1.5% from this time last year.

Between 2010 and 2012, 15,000 natural resource and mining jobs were added after new technology allowed exploration and development of natural gas in the Marcellus and Utica shale plays.

Recently, lower natural gas prices have halted job growth in that sector, but with 58.5% increase in gas production since June, the industry appears to be going strong.

The state’s network of hospitals are a steady source of jobs and revenue. The University of Pittsburgh Medical Center (the highest grossing hospital in the nation) is the largest employer in the state, with the University of Pennsylvania and Temple University Hospital systems also making significant contributions.

Medical services are also an important resource for the state’s population of those age 65 and older, which is the sixth highest in the country and growing 2.3% faster than the national average.

Both healthcare and education maintain a steady job growth trend of about 1.5%. Of the top 100 employers in the state, four are health systems, one is pharmaceutical company and three are universities.

Education in general continues to be a challenge for Pennsylvania.

Philadelphia, the largest city in the state, has eliminated 3,800 public school teachers and staff following a $300 million budget shortfall, which nearly kept the school district from opening this year. Enrollment in the state’s higher education system has declined by 7,000 students compared with 2010 numbers.

Cancellations At Convention Center

BY TOM FERRICK The Pennsylvania Convention Center continues on its path to becoming a $1.3 billion white elephant. A large client, who was in town for a convention in June, has cancelled repeat visits scheduled for 2015 and 2017, AxisPhilly has learned.

UBM Canon, an international communications firm that specializes in technology, told convention and tourism officials that it had a bad experience in Philadelphia this year and has decided to take its business to New York.

According to sources, UBM Canon told Philly officials that it was unhappy with attendance and — this should sound familiar — labor hassles during the June event that drew 3,000 attendees.

“The unions operate like it was 30 years ago,” according to one report that quoted UBM Cannon officials.

The Convention Center — paid by taxpayers — underwent a $780-million expansion in 2011 that nearly doubled exhibition space. The prediction was that the new, larger center would draw 20 to 30 major conventions a year. Big conventions, which draw 3,000 or more delegates are called “citywides” in the trade, meaning they fill up hotels all over town.

The center will have 20 citywides this year. After that, the numbers drop. The center has 16 confirmed conventions for 2014; 10 in 2015; 11 in 2016 and only 10 in both 2017 and 2018, according to the latest figures.

In the highly competitive convention business, shows and conventions are billed years in advance. And some companies, such as UBM Canon make multi-year com-

mitments.

Last summer, the convention center had a total of 60 conventions booked over the five years beginning in 2014. As of yesterday, the number was 57. UBM Canon accounts for two of three of the defections. We have calls into officials at the Philadelphia Convention and Visitors Bureau, which handles bookings at the hall, to find out what other group defected.

The reputation as a tough place to do business, mostly because of antique union works rules, has been the center’s albatross, hurting its chances of getting new and repeat business in the highly-competitive world of convention booking.

AxisPhilly first revealed the problem in May. The center’s board tried to address those problems FLICKR.COM/KATERHA with the unions that work at the center during negotiations on a new contract – called a Customer Service Agreement. But that attempt failed when members of the Carpenters Union walked off the job in early August. The one-day strike — staged on the eve of the arrival of a major convention — ended only after the center’s board agreed to postpone any talk about work rules changes. We did this backgrounder on that dispute.

The UBM Canon cancellation shows that not only has the center failed to solve its old image problem, it offers fresh examples of why Philly is not a place for conventions to book their business.

These cancellations have a ripple effect on the local economy, especially the hotel and entertainment industry, which relies heavily on convention business.

This article was originally published in Axis Phillt at AxisPhilly.org.

More Changes To Renaissance Plaza

BY KELLIE PATRICK GATES There’s been another revision to plans for Renaissance Plaza — the residential and retail complex Waterfront Renaissance Associaties - an affiliate of Carl Marks Real Estate - plans to build at the former World Trade Center site on the Delaware River waterfront.

Instead of five towers with the tallest at 240 feet, the amended proposal calls for four towers with the tallest at 292. The new plan will reduce the 1,411 rental units from the July proposal by 50 or 60, project attorney Hercules Grigos told members of the Central Delaware Advocacy Group at last week’s meeting.

The changes to the plan for 400 N. Columbus – where

the World Trade Center building was once proposed - were made in response to concerns raised by CDAG, the Philadelphia City Planning Commission and the Delaware River Waterfront Corporation’s Design Review Committee. The committee is led by Marilyn Jordan Taylor, dean of the Penn School of Design. The revised plan was presented to the PCPC this week.

“One of the comments we got was the project was too monolithic,” Grigos said. “All five buildings were just around 250 feet, and one of the buildings was right up along Columbus Boulevard. We heard a lot of concern about what that was like. So we went back to the drawing board.”

This was originally published in Plan Philly at PlanPhilly.com.

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21 NOVEMBER 2013

REGIONSBUSINESS.COM

WEEKLY BRIEFING

PricewaterhouseCooper RoseAnn Rosenthal Donates To Philly Non-Profits AWARDS

Receives Iris Newman Award

The Alliance of Women Entrepreneurs presented its annual Iris Newman Award to President and Chief Executive Officer of Ben Franklin Technology Partners of Southeastern Pennsylvania, RoseAnn B. Rosenthal, at the group’s annual gala this month.

The award is given each year to a female business leader demonstrating a commitment to helping other women entrepreneurs advance.

Since taking over leadership of Ben Franklin in 1996, the organization has invested more than $165 million to support the growth of more than 1,750 local business and technology enterprises. In addition, Rosenthal serves on a myriad public, private and non-profit boards and advisory groups.

PricewaterhouseCooper (PwC) U.S.’s Philadelphia office will donate $200,000 to five Philadelphia-based non-profit organizations, funded through grants from the PwC Charitable Foundation:

Ma^ ;hrl Zg] @bkel <en[ h_ AZkrisburg ($10,000), a non-profit organization with a mission of helping young people reach their full potential

Ma^ IabeZ]^eiabZ Shh ! +.%)))"% <bmr R^Zk @k^Zm^k IabeZ]^eiabZ the country’s first zoo, its youth pro($75,000), a non-profit organization grams link conservation awareness to aimed at keeping students in school education for local students and on track to graduation In addition, PwC partnered with Cngbhk :\ab^o^f^gm h_ =^eZpZk^ ma^ Cngbhk :\ab^o^f^gm h_ =^eZpZk^ Valley ($50,000), a non-profit com- OZee^r _hk bml C:&bg&Z&=Zr ohengm^^k mitted to providing young people program, an intensive one-day initiawith work readiness, entrepreneur- tive that involved 350 volunteers from the local PwC office teaching busiship and financial literacy programs ness, economic and life skills to stu E^`Z\r Rhnma M^ggbl Zg] >]n\Z- dents at eight different local schools, tion ($40,000), dedicated to prepar- reaching over 3,700 students in 130 ing underprivileged young people for classes. success with a new financial literacy program

REVITALIZATION

Streets Dept. To Redecorate North Broad Street Next month, the Streets Department will begin the installation of light masts along the 2.5-mile stretch of North Broad St. between Spring Garden St. and Glenwood Ave. as part of the city’s revitalization effort in the neighborhood.

The 45, 50-foot tall, stainless-steel columns will be illuminated from the inside. Standard street lighting will remain, but the work will also include improvements to sidewalks and landscaping installations where possible.

To minimize traffic disruption over the course of the two-year project, most work will be done during evening hours. Design and construction of the project will cost an estimated $11 million in state, federal and public funds.

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21 NOVEMBER 2013

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WEEKLY BRIEFING

Gambling Expansion Bill Heads To Pennsylvania Senate

BY ERIC BOEHM After years of effort, a proposal to expand so-called “small games of chance” in bars and taverns across Pennsylvania appears headed for final passage.

The state House approved the gambling expansion bill with a vote of 102-96 Wednesday afternoon, sending it back to the state Senate. The Senate previously approved the bill in October, but must agree to minor changes made by the House.

The bill would allow bars to hold raffles and drawings for cash prizes. Such games are currently only allowed in private clubs like Elks lodges, VFW posts and similar institutions.

Republicans say the state could generate as

much as $156 million annually from taxes on the newly-legalized forms of gambling, but that’s if as many as 2,000 bars and taverns choose to participate.

“I do think the fact that it had a positive impact on the budget was an additional positive factor,” House Majority Leader Mike Turzai, R-Allegheny, told WITF’s Mary Wilson.

State Rep. Paul Clymer, R-Bucks, an outspoken critic of legalized gambling in the state, said the bill would not produce the promised revenue and would hurt Pennsylvania families.

This article was originally published in Pennsylvania Independent at PAIndependent.com

Payroll Mismanagement Costs Taxpayers $7M

BY ERIC BOEHM Taxpayers lost an estimated $7 million because of problems with the implementation of a new payroll system for home-care workers within the Pennsylvania Department of Public Welfare, according to a new state audit.

Auditor General Eugene Depasquale said DPW’s decision last year to consolidate payroll services for home health-care workers — a move that was supposed to save money — ended up costing more because disabled people and their families sought more expensive care when they were concerned about the disruptions in service that resulted from thousands of contracted workers going unpaid for months.

All that happened even though DPW gave Public Partnerships Limited, a Boston-based management firm, an $18-million cash advance to cover salaries of home-care workers during the transition phase.

This article was originally published in Pennsylvania Independent at PAIndependent.com

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WEEKLY BRIEFING EXECUTIVE SHOP

WHO TO FOLLOW

@Decision_Strat DSI DSI is recognized as a thought leader in futurecentered strategy consulting and helps organizations anticipate and plan for industry uncertainty.

RT @Decision_Strat: A static plan won’t drive success. Strategic plans should act as a living, breathing documents – not paperweights. #longtermplanning RT @Decision_Strat: We believe in celebrating #failure to inform learning. As 2013 comes to a close, what mistake ultimately helped your team or org?

RESTAURANT ROUNDUP

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The Papery

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After operating in Old City for over a decade, The Papery, a Philadelphia stationary staple, opened the doors of its new Midtown Village location in October.

Even in the digital age, the invitation design studio continues to offer customers premium stationary and invitations for all occasions, as well as a selection of specialty gifts.

The new location is bright and airy and features a design consultation area where owner Carolyn Brandhorst and her team meet with clients to craft the perfect page for each patron’s event. The Papery’s latest incarnation continues to carry best-sellers while featuring new trends in paper design.

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Guests use their smartphone to view the menu online, then keep up with the bar’s inventory via a QR code that shows how much beer/wine is left in each keg and what is likely to be next on-tap.

Orders are placed with a server and tablets are on-hand for the less tech-savvy.

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21 NOVEMBER 2013

POLITICAL COMMENTARY

REGIONSBUSINESS.COM

Council Nearing Final Action on Demolition Regulations

Timothy Holwick is a freelance writer covering Philadelphia government.

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 City Council has held several hearings in the past week to discuss upcoming changes to the demolition safety requirements when taking down a building in the city.

There are many changes to the process contained in several pieces of legislation.

The impetus for the changes centered mostly on the building collapse which occurred on June 5, 2013. On that date, a wall of a building being demolished fell into an adjacent Salvation Army Thrift Store killing six people and injuring others.

The Philadelphia Department of Licenses & Inspections (“L&I”) has been conducting independent investigations and City Council has been following them closely. The bills proposed by Council would establish new licensing requirements. Additionally, independent safety auditors would be present at certain high risk demolition sites. Those auditors could impose fines and work stoppages, in addition to L&I inspectors and expanded authority for the Philadelphia Fire Department.

Under proposed legislation, L&I will promulgate regulations for other smaller details, such as new signage requirements

for job sites.

On top of Philadelphia L&I the United States Occupational Safety and Health Administration (“OSHA”) just concluded its investigation into the June collapse.

Last week, OSHA investigators fined a contractor and excavator almost $400,000 for their roles in the building collapse.

The citations were for “willful disregard for safety standards and to the lives of workers.” The bulk of the fines were laid on the general contractor for a faulty method of taking the building down, as well as a lack of engineering survey of the building prior to embarking on the demolition.

An employee of the excavator is already in jail awaiting trial for six counts of manslaughter after testing positive for marijuana immediately after the incident.

OSHA did cite the excavator for creating a situation where a wall was standing without proper support.

City Council has made their pursuit of tougher demolition requirements very public since the collapse. Their hearings have featured some opposition from the community contractors, who already feel they are overtaxed and over-regulated.

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Some of the most debated Council measures include the requirement of an ID, increased training requirements, and the power afforded to on-site auditors of demolitions involving buildings over three stories.

Council has mostly countered that training and monitoring are the key to avoiding a repeat of the fatal collapse. Contractors expressed concern about one auditor shutting down or delaying an otherwise safe demolition because they feel that they simply know better.

On at least one point, there is opposition from within Council against the ID requirement. These IDs would exist to confirm that workers are properly trained and paying taxes. Councilwoman Maria Quinones Sanchez has expressed concern that this documentation requirement is excessive and will cause harm to undocumented workers.

Once Council reaches a consensus, they will have to present their legislation to Mayor Michael Nutter, who has so far not commented on the forming requirements.

For more City Council news, visit RegionsBusiness.com/bloggers.

21 NOVEMBER 2013

POLITICAL COMMENTARY

REGIONSBUSINESS.COM

13

Right, Left Wing Unite To Kill Transportation Bill

Eric Boehm is a reporter for Watchdog.org and can be reached at EBoehm@ Watchdog.org. Follow @PAIndependent on Twitter for more.

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

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

A $2.3-billion transportation funding bill went down in flames in the state House on Monday night as lawmakers came with four votes of approving the bill after months of internal debate.

In the end, the right wing of the Republican caucus and the left wing of the Democratic caucus proved to have just enough votes to defeat the proposal that was supported by the moderate middle in the House.

But what made Monday night’s vote particularly odd is that the outer wings of the two parties were hardly in agreement as to why they were voting against the transportation bill.

On the right, many Republicans saw the proposal as an unnecessary spending package that would hike taxes and fees on Pennsylvania drivers and businesses at a time when many cannot afford it. Those lawmakers spoke about the costly nature of the spending plan, which would have added roughly $5 to the cost of filling a standard-sized car’s gas tank, along with increasing the cost of registering that vehicle and renewing a drivers’ license.

On the left, labor-friendly Democrats refused to support the bill because it contained a pro-

vision raising the prevailing wage threshold, which is set at $25,000 and has not been increased in more than 50 years. The prevailing wage is a state mandate that requires a union pay scale for all public projects, even simple things like road repairs and maintenance.

Republicans say it adds unnecessary costs to transportation projects.

So while 59 Republicans and 39 Democrats voted in favor of the transportation bill, the 51 Republicans and 52 Democrats who opposed it was just enough to send the bill to a 98-103 defeat. It was a humiliating night for the House Republican leaders and particularly so for Gov. Tom Corbett, who had stumped with labor groups, business groups and even former Gov. Ed Rendell in an effort to drum up support for the bill’s passage.

“The votes were driven by partisan politics rather than principal. The result is that the people of Pennsylvania will not have the transportation system that they expect and deserve,” Corbett said in a statement after the vote.

He’s mostly right. But where do things go from here? House GOP leaders are unlikely to bring the same proposal back to the floor in the

next week or two before Thanksgiving. But with session days scheduled until mid-December, there is a chance that another effort could be made to send a transportation bill over to the state Senate.

The Senate passed a similar funding package with an overwhelming 45-5 majority during the spring.

The House leaders need to collect four votes, either via political arm-twisting or by promising a handful of lawmakers that bridges in their district will be put on the top of the list of repairs.

That won’t work for those who are ideologically opposed to the transportation bill on either side – because of the spending or because of the prevailing wage changes.

But if the leadership in Harrisburg is worth their paychecks, they should be able to find a way to get four more votes in the next four weeks. And since this is a bi-partisan bill, they should split up the responsibility: Democrats bring two more votes to the table and Republicans do the same.

Monday’s vote was a big blow to the transportation bill, but expect one more shot at it before the year is up.

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SEPTA/DART FIRST STATE/NJ TRANSIT/PATCO/VRIDE/AMTRAK

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21 NOVEMBER 2013

LEGISLATIVE UPDATE

REGIONSBUSINESS.COM

New Transportation Amendement Up In The Air

BY SCOTT STARUCH

Turnpike projects, a multimodal fund, and repair of dirt and gravel roads.

A number of reasons are cited for the amendment’s failThe General Assembly returned to Harrisburg on Monday, Tuesday and Wednesday, and transportation funding ure. Some Republicans called the bill “a $2.5 billion tax took center stage. increase,” and Democrats balked at a modest increase in In a week that began with AAA predicting a record the state’s prevailing wage threshold. Meanwhile, supportnumber of Thanksgiving travelers by car, bus, rail and ers like Rep. Jeff Pyle (R – Armstrong & Indiana Counties) air, the importance of funding Pennsylvania’s crumbling warned, “Mark my words, there will be one [bridge] that transportation system was especially timely. goes down.”

Statewide calls for transportation funding were capped At publication deadline, it was unclear if a new transoff with a rare and robustly bipartisan rally on Monday portation amendment, akin to Rep. Micozzie’s, will be at the Capitol. Governor Corbett was joined by a host of taken up. This amendment, offered by House Democratic Democrats; including former Governor Edward Rendell, Whip Mike Hanna, is a copy of Rep. Micozzie’s, but omits Auditor General Eugene DePasquale, former Lieutenant the prevailing wage provision.

Governor Mark Singel, Allegheny County Executive Rich Fitzgerald and many others. At the event, the governor BUDGET OUTLOOK described transportation as a core function of government, Last Thursday, the Independent Fiscal Office (IFO) critical to public safety and vital to our economy. He and released a report outlining the economic, demographic other leaders called for the passage of House Transporta- and fiscal trends that will affect the commonwealth’s budtion Committee Chairman Nicholas Micozzie’s amend- get over the next five years. The report finds “mandatory pension contributions, debt service and healthcare inflament to House Bill 106.

Late Monday night, Rep. Micozzie’s transportation tion drive expenditure growth averaging 4.1% per annum,” funding amendment failed by a vote of 98 to 103. The however, revenues are projected to not keep pace, increasamendment would have provided $2.3 billion for roads, ing at an average annual rate of 3.1 percent. bridges, mass transit, local governments, Pennsylvania

LABOR

On Monday, HB 1807 advanced from the House Labor and Industry Committee. Sponsored by Rep. Seth Grove (R – York County), HB 1807 provides state preemption for local mandated leave ordinances. The Pa. Chamber of Business and Industry supports this bill, explaining, “If H.B. 1807 were to become law, Pennsylvania would join a number of other states that have recognized the economic challenges that face business through local employerprovided leave laws and have instituted similar legislation.”

GAMING, MARIJUANA & LIQUOR

In part to help solve anticipated budget woes, the state Senate on Monday approved legislation to allow bars and taverns to run small games of chance. Businesses will keep 40 percent of the net proceeds from these small games of chance, and 60 percent will go to the state.

On Monday, state Senator Daylin Leach (D - Montgomery/Delaware Counties) announced the introduction of Senate Bill 1182. Co-sponsored by Sen. Mike Folmer (R – Lebanon County), SB 1182 would legalize certain kinds of medical marijuana. And last Wednesday, Gov. Corbett’s nomination of Democratic former Congressman Tim Holden to the Pennsylvania Liquor Control Board was confirmed by the state Senate 48-0.

21 NOVEMBER 2013

POLITICAL COMMENTARY

REGIONSBUSINESS.COM

15

On JFK Anniversary, Remember C.S. Lewis, Too

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.

Nobody over 55 will ever forget the afternoon of Friday, November 22, 1963. Every detail is etched in our minds forever. It was the defining moment of our childhood.

I could take you to the exact square inch I was standing at recess when the principal came in. She whispered a few words to our teacher. No whistle blew. Instead we were solemnly told that we were returning to our classroom.

The way we were ushered back let us know that something very serious had happened. Once there we were quietly informed that John F. Kennedy had been shot. We said prayers. Even my friends who didn’t attend parochial schools said prayers in their classrooms that afternoon. Not long after, we were told the President had died.

School closed and we were sent home. We walked in silence.

There are dozens of other details I could recount.

But if someone asked me what I was doing the day the famed author and theologian C.S. Lewis died, I would be clueless. Yet, Lewis died the same day as Kennedy.

We link that fateful day to JFK and him alone.

But across the sea in Oxford, a writer who influenced the faith of millions of people across the globe and arguably more than any other scribe save those who penned the Gospels drew his final breath and died in his brother’s arms.

As much as I remember the day the President was shot, I also recall the day a few years later when

I was handed a copy of Lewis’ “Mere Christianity.”

It was a day when I first felt like an adult.

Lewis’ elegant yet simple prose addressed some of the most difficult philosophical questions: Is there a God? Why is there suffering? Does morality exist on its own accord or was it a creation of man?

These were not issues Lewis took lightly. They were heavy questions mulled by his powerful intellect, and he asked his readers to do the same tough mental work. A brilliant apologist for the Christian faith, Lewis had not come to it easily. Baptized in the Church, Lewis fell away from the faith as a younger man. He returned in early adulthood.

Lewis allowed his readers to be both intellectual and Christian at a time when popular culture worked to separate the two as mutually exclusive – a trend that continues. At his core, Lewis was a “small c” conservative, with tremendous respect for tradition and institution.

Americans’ collective memory of World War II, the era of Lewis’ ascendency, is of bright-faced young men storming beaches and liberating Europe.

For many Europeans, the war brings a different set of memories. They were heavily bombed.

Families were torn apart and millions lost in the Holocaust. Europe would take a long time to recover emotionally, politically and financially.

England lost the flower of a generation. Lewis helped mend the soul of that shaken world.

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In the wake of the destruction, Englishman Lewis, converted from his atheism, crafted what is arguably the most important young adult fiction ever: the Chronicles of Narnia. Its most famous volume, 1950’s The Lion, the Witch and the Wardrobe, starts with four children sent into the countryside after their neighborhood in London was evacuated. Soon, the children tumble though a closet into another world. While on the surface it’s about swords, witches and talking animals, the novel is an allegory of the crucifixion of Christ.

Lewis deftly led his young readers to truth, not through indoctrination or brute force but with a simple story about courage, faith and virtue, talking to a generation in distress on their terms.

C.S. Lewis didn’t point fingers. He didn’t emblazon his religion on his sleeve. And he didn’t browbeat his countrymen into believing theirs or their country’s best days had passed. Lewis, through his works, simply reaffirmed the nobility of walking through life on the strength of faith.

On November 22, as Americans take time to honor the memory of their beloved fallen President, in London leaders will gather to mark a spot in Westminster Abbey’s famed “Poets Corner,” the place where England’s greatest writers are memorialized, for Clive Staples “Jack” Lewis.

It is a fitting tribute to a man who so skillfully maintained conservative Christian values and promoted a quiet faith and life of virtue.

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21 NOVEMBER 2013

REGIONSBUSINESS.COM

INNOVATION

West Chester Coworking Space Launches

BY JULIANA REYES If your community doesn’t have what you want in it, start creating.

That was the thinking behind Walnut St. Labs, a new West Chester incubator and coworking space from entrepreneur Chris Dima.

A little under a decade ago, Dima, 40, tired of commuting to Philadelphia for his job as an adult education teacher, decided to take any job he could that was walking distance from his house.

That happened to be at Economy.com, which later sold in 2005 to Moody’s for $27 million. Dima’s been working in startups — only within walking distance from his house — ever since.

He’s launching this new space to make it easier for others to do the same.

The 2,000 square foot space currently hosts seven companies, two of which Dima cofounded. At about 12 people, the space is nearly halfway full. Dima hopes to turn the space into an actual incubator that offers startup resources.

In recent years, suburbanites have been building coworking spaces and incubators of their own, and Walnut St. Labs is another example of this. There’s Business Casual Coworking in Bucks County, the Dream Factory in Phoenixville and Novotorium in Langhorne.

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

BY BRANDON BAKER Conshohocken, Pa., based WizeHive is frequently touted and explained in the tech community as a leader in the burgeoning cloud-computing space and streamliner of automated business solutions. But here are the layman terms: It’s a cloud-software company that allows organizations to finally — and merrily — ship out their filing cabinets with a one-way ticket to the landfill.

Launched in 2009 by Mike Levinson, who sold King of Prussia, Pa., based PTS Learning System in 1999, WizeHive is a product-based endeavor that, with its primary WizeHive Select software, targets companies that initiate contests and competitions and turn up with an endless pool of application paperwork to sift through.

The idea came to him after co-founding DreamIt Ventures in 2007: Having a hands-on role with talent that came through the health IT incubator, he found he spent the bulk of his time organizing applicant information.

“I was dealing with maybe a couple thousand pieces of data, and there was no easy or effective way for me to organize it all.

It was frustrating,” Mr. Levinson said. “And there were all sorts

Why This West Chester Company Works Out Of Old City The team behind Traffic Safety Store, a West Chester manufacturer and retailer, had a problem. They couldn’t find tech talent who were willing to commute to their office.

Walnut St. Labs

TECHNICAL.LY/PHILLY

“You could not pay people enough to get them out there,” said vice president Nick Eubanks. So they changed their strategy: they followed the talent.

Last January, Traffic Safety Store’s development team began working out of Old City coworking space Indy Hall, where Eubanks had been a longtime member.

Walnut St. Labs

TECHNICAL.LY/PHILLY

WizeHive Cuts Out Paperwork Headaches Business: WizeHive Founders: Mike Levinson, Mike Carson Contact: wizehive.com/get-in-touch

MANUFACTURING

of other activities happening with DreamIt — plans and projects and other business processes and I couldn’t find anything. I looked at other higher-end tools like SharePoint, but they were expensive, and were more comfort-zone, and so the light-bulb went off and I said, ‘You know what, there must be other people out there like me who will have the need for this.’”

Since that moment of realization in 2008, WizeHive has accrued — with a 95 percent year-over-year retention rate — a client roster of more than 600 non-profits, rounded out with heavy-hitter companies like Disney, Blackboard and Echoing Green. It ranked seventh on a recently released Philadelphia 100 list by the Entrepreneurs’ Forum of Greater Philadelphia and, to boot, doubled both revenues and staff in the past year, currently employing 25.

Moving forward, Mr. Levinson and his team aim to broaden the company’s success, focusing on the beta launch of WizeHive’s second software product, WizeHive Swarm — a datamanagement tool for businesses that sorts leads, contacts, hiring information, event plans, etc., and is laid out in what Mr. Levinson referred to as a “two-dimensional spreadsheet taken to the third dimension.”

WizeHive has been funded personally by Mr. Levinson, in addition to rounds of venture-capital funding that combine to $1.5 million from local firms Robin Hood Ventures, the MidAtlantic Angel Group and Ben Franklin Technology Partners of Southeastern Pennsylvania. WizeHive’s Swarm product will be finalized and fully launched in the months ahead.

“It made everything exponentially easier,” Eubanks said, referring to finding staffers, as well as temporary contractors to work on projects.

The roughly seven-person development team, which includes some contractors, has since outgrown Indy Hall and now shares a nearby space with MyClin, another startup that moved out of Indy Hall last January.

Moving the whole company to Philly is out of the question, Eubanks said, because of taxes, but more so because Traffic Safety Store operates out of a 40,000 square foot warehouse, where it keeps its inventory.

The story of Traffic Safety Store’s team is reminiscent of large suburban tech firms like Fiberlink, Bentley Systems and iPipeline opening offices in Philly in part to handle the ongoing struggle of recruiting.

TECHNICALLY PHILLY

21 NOVEMBER 2013

REGIONSBUSINESS.COM

DIARY OF A STARTUP

Role Of Startup Founder Is Always Changing Randy Rayess, founder of product-development investment firm VenturePact, describes in his latest “Diary” entry what it feels like to be the founder of a startup — from day one, to the day it either scales or busts.

In his words: Starting a company sounds fun and exciting for people who love building things. However, after getting on TechCrunch and gaining some traction, founders transition from actively building to hiring and motivating people.

It’s a fundamental shift in the work that you do on a daily basis.

Managing people is challenging, because the best talent always has amazing alternatives, so it’s hard to hire and retain them.

Many of the cofounders I know, including myself, think that they are working on the most exciting problem in the world and do not even understand why they would ever do something else. In reality, rarely — more like never — will you hire someone who has the same passion for the company that you, as a founder, have.

Your startup is like your child, there is no way a babysitter will love your child the same way you do. That said, you definitely want people who believe in your mission, who understand what you are trying to accomplish and why you are doing it. If a founder is excited about their business, and there is sufficient growth or funding for them to hire people, usually he or she will be able to on-board good talent.

At this point, training, delegating responsibilities and allocating tasks becomes part of the founder’s job. For founders, who are perfectionists, this might be hard. Most founders, including myself, are overconfident -- we think we can do a lot, but no matter who you are, you can’t do it all. Plus, you have to give people interesting work. Otherwise, they’ll leave.

As you start hiring more people, all the knowledge in the company is no longer in the founder’s brain. You have to manage the knowledge in the company, make sure there is a good way to communicate, access and control information. A culture starts to emerge based on the first few people you hire. This makes the first employees extremely important for the future of the company.

You have to make sure that they have the right talent and complement the team well. It’s hard to make this conclusion after a few interviews; so, you have to “hire fast and fire fast.”

This is much easier said than done, but it’s extremely important and must be executed well. It needs to be clear to the whole company why someone was asked to leave.

So your role as a founder is much more than just getting on TechCrunch. Your role changes and hopefully, one day, you’ll be running a public company and have to prepare for your quarterly earning calls.

One can only hope.

INNOVATION

17

Non-Profit Accelerator Program Headed To CultureWorks

BY BRANDON BAKER Call it counterintuitive, or call it genius: Center City-based coworking space CultureWorks Greater Philadelphia is prepping the launch of a non-profit accelerator program meant to nurture other non-profits.

CultureWorks was founded in 2010 by Thaddeus Squire, designed with the idea of bringing together people, space and corporate infrastructure. It has since raked in 140 members and acquired six employees on its payroll.

Now, Mr. Squire is looking to broaden its horizons and, perhaps, pay it forward in the non-profit world.

“The inspiration for it was, ‘How can we share [our] revenue-generating staff for nonprofits?’” Mr. Squire said. “That led us to acceleration as a model. And to our knowledge, no one’s really built a non-profit accelerator, since acceleration usually entails some sort of equity investment at some point. The background theory is a lot of the cultural sector is not scalable. The tech sector is always looking for the black box, the ‘ride the elevator up and do the billion-dollar exit’ — everybody’s about that. And it’s getting very tiring.”

Here’s the gist: CultureWorks will sort through a pool of culture- and charity-oriented applicants and narrow the list down to about six teams. It will then start on a two-year, three-phase journey of business development with them that puts an emphasis on having less than 25 percent of revenue come from foundations and government, and at least 50 percent from earnings. In return, CultureWorks takes 20 percent of revenues starting in Phase Three, but never takes equity.

The exchange, Mr. Squire said, is akin to a non-profit startup paying for a human resources department.

“We’re interested in their revenue goals because we get paid; they’re interested in working with us, because we’ve got a revenue team they don’t have to wait 12 months to implement,” Mr. Squire said. “It’s all right there. There’s a mutual interest in generating revenue they need and fulfilling the next fiscal strategy.”

Though plans have yet to be finalized, Mr. Squire aims to start accepting applications in winter 2015, with the program launching in the summer or fall of that same year.

Urban Outfitters Banks On eCommerce

BY JULIANA REYES

rising. In its most recent quarter, online sales were up 40 percent since the same For Urban Outfitters, the transformation quarter last year, Business Insider reportfrom retail store that also sells online to ed. online brand that happens to also have a — Urban is opening fewer brick and morphysical presence is complete. tar stores to cut costs.

The 42-year-old retailer headquartered — The company is opening a 1.2 million at the Navy Yard thinks of itself as primar- square foot distribution center in Lanily an ecommerce company with 500 or caster to accommodate growing online and so brick and mortar stores, chief strategy catalog sales. officer Michael Kaness has said.

— Urban’s latest app features social photo Here are some of the changes that point sharing and free shipping on sales through to Urban Outfitters’ new image: the app, Business Insider reported. Free People, another Urban brand, offers the — Last October, the company said it same free shipping deal for new customers would never buy a cash register again. on its app, as well as a social photo sharing — The company aims to have half of its network that had more than 10,000 photos sales be online-only in the next five years, uploaded as of May 2013. it said last fall. As of September 2013, This article was originally published ecommerce was nearly one-quarter of its in Technically Philly at Technical.ly/ $2.5 billion company’s annual revenue.

Philly.

— The company’s online sales have been

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REGIONSBUSINESS.COM

INNOVATION

Jeff Fluhr’s Formula for Entrepreneurial Success

I

Adarsh Manpuria, WG’15, is an aspiring entrepreneur co-founded Reacheo.com, a digital marketing firm

The article was originally published in the Wharton Entreprenuership Blog at beacon.wharton.upenn.edu/ entrepreneurship

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

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

came to Wharton excited to benefit from the evolving entrepreneurship ecosystem and to further my startup ambitions.

Today Wharton provides extraordinary resources for startups: Founders Club, eClub, Tech & Design club, Business Plan Competition, Entrepreneur-in-Residence meetings, Wharton Entrepreneurship, access to UPenn facilities and also the Philly start-up community.

While navigating this treasure chest, I was fortunate to visit a talk by Jeff Fluhr ENG’96/W’96, co-founder of StubHub and Spreecast, on October 22, organized by the Founders’ Club.

Jeff delivered a thought-provoking and stimulating speech, but also one that made me think about what I (and other aspiring founders) have been so keenly looking to discover—the perfect recipe for entrepreneurial success! Here’s what I took away from his talk:

1. Choices

Entrepreneurship is all about making choices.

The choice to start something new, foregoing the opportunity to do something else (for a Wharton MBA, the typical opportunity cost is to work with a top consulting firm, in investment management or join a tech startup).

Yet that is just the beginning, as the founder finds himself/ herself in a world of endless choices.

What kind of a business should he/she launch — B2B or B2C? Retail, food, healthcare, IT? What kind of a team to build? To raise money or to bootstrap? Some choices are easier than others; few turn out to be right.

Jeff and his co-founder, Eric Baker, discovered the idea for StubHub (then named INeedATicket.com) while working on a business plan competition at Stanford.

Although they reached the finals, they chose not to present their idea, as they had started to believe in the potential of the business.

Both Jeff and Eric dropped out of school and raised money from family & friends to build their business. Jeff admits that this choice wasn’t a big determinant of their ultimate success, but it set Jeff and Eric up for many more choices to come.

2. Intuition, Courage And Perseverance

The early business plan idea for StubHub had all the ingredients of a high potential venture: a large multibillion dollar ticketing market in the U.S., a highly fragmented ticket seller base of mom AND pop agents and the absence of a consumer brand with any trust or loyalty.

Jeff and Eric were quick to see the opportunity and seize it with both hands. Along the way, they stuck to their intuitions. For example, when making key hiring decisions, they would value the candidate’s work ethic Jeff Fluhr much more than his/her technical capabilities.

Even for Spreecast’s CTO role, Jeff made several pivots, like doing white label chose Robert Hunt, who had taught himself platforms for B2B clients such as MSN to to write code, despite coming from a consultkeep the business alive. ing & investing background. In Jeff’s words, “Experience is highly overrated!”

3. It’s all about the journey!

Among the many investors and experts that I have often wondered what it means to be a Jeff and Eric tapped early on was Fred Rosen, ‘serial entrepreneur’. ex-head of TicketMaster.

Is it an addiction to the scrawny, hustling life at startups, a disinclination to work within passive large corporations, or is it a designation coined to portray credibility and experience? I think successful entrepreneurs such as Jeff would describe it as a way of life — the drive to keep going back for more.

StubHub, was founded in 2000 and sold to eBay for $310 million in 2007. However, the journey wasn’t as smooth as it sounds. On the way, Jeff and his team had to fight off multiple lawsuits, tackle near bankruptcy and pitch to 100-plus investors before they could raise their Series A funding (in a time of the early 2000’s dot-com bubble).

He found the business idea for StubHub ‘sketchy’ at best, and believed it would never work, as there were many regulatory hurdles and that artists/sports teams had no incentives in a secondary market for their tickets. The foundAs Jeff said, “There are always highs and ers did intensive diligence on the regulatory lows at a startup, and it can be emotionally concerns and found that there was no federal taxing. It’s not for everyone, but the journey law against secondary ticket sales. can be extremely fulfilling if you are one to Though 15 states had some form of restricmake it through.” tions, Jeff and Eric saw this as an opportunity We wish Jeff the best as he continues his — an interesting problem to solve. journey with Spreecast, with his own high When they could not forge a tie up with standards of past success to live up to! the artists/sports teams, they compensated through other innovative promotions.

Throughout their StubHub journey, they

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21 NOVEMBER 2013

REGIONSBUSINESS.COM

UNIVERSITY CITY: WHERE THE ACTION IS HAPPENING...

One thing is for sure about Philly: University City is booming. From the increasing number of startups that stick around to the increasingly impressive talent pool, University City is the place to be for businesses. Region’s Business set out to learn more about this side of town.

STORIES BY CAIT O’DRISCOLL ILLUSTRATION BY DON LEE

From food trucks to tech companies and life sciences startups, it seems University City is exploding as a hub for small businesses. But what’s behind this growth, and why are small businesses straying away from the Center City district?

The easternmost region of West Philadelphia, University City was named by the University of Pennsylvania during a 1950s urban renewal effort. Drexel University and the University of the Sciences have since joined Penn in driving the phenomenal growth. It’s also home to several medical institutions, independent centers of

scientific research, 30th Street Station, and the new neighboring Cira Centre complex.

Despite the declining economy, the past few years have been great to University City. In 2011 alone, the neighborhood saw about $2 billion worth of real estate projects for public spaces as well as commercial projects. That same year the University City Science Center’s Port Business Incubator opened the Bullpen, a co-working office for budding startup companies — providing entrepreneurs with a desk, phone and highspeed Wi-Fi. The Science Center rivals North Carolina’s

famous Research Triangle now extending to 15 buildings totaling 2 million square feet, which extend from 34th Street to 39th and Market.

“The current institutional expansions of the University of Pennsylvania, Drexel University and Children’s Hospital Of Philadelphia, along with the Science Center, are laying the foundation of the economic growth,” said Stephen S. Tang, Ph.D., MBA, president and CEO of University City Science Center. “This physical growth, matched with the increased vibrancy of the startup community in the neighborhood, is sparking

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REGIONSBUSINESS.COM

PHYSICAL GROWTH, MATCHED WITH THE INCREASED VIBRANCY OF THE STARTUP COMMUNITY IN THE NEIGHBORHOOD, IS SPARKING UNIVERSITY CITY TO TRANSITION BEYOND A CLUSTER OF HIGHER EDUCATION INSTITUTIONS INTO A WORLD-CLASS CENTER OF INNOVATION’ —STEPHEN S. TANG, PRESIDENT AND CEO OF UNIVERSITY CITY SCIENCE CENTER

PHILADELPHIA REAL ESTATE BLOG

University City to transition beyond a cluster of higher education institutions into a world-class center of innovation.

The momentum of the neighborhood is a testament to the level of ambition and quality of human capital in University City.”

Already at 80 percent capacity, 2.0 University Place at 41st and Market was completed this past September and is the first pre-certified LEED Platinum building in Philadelphia. LEED, or Leadership in Energy & Environmental Design, is a green building tool that provides third-party verification of green buildings. Buildings can achieve different levels of certification, i.e. silver, gold, and platinum. There are prerequisites and credits for each rating system, and a team determines the best match for each project. 2.0 has all platinum tenant spaces and the first accessible green roof in Philadelphia.

Scott Mazo, founder and managing partner of University Place Associates, LLC, believes that the LEED Platinum certification is important to companies who are trying to attract the young, innovative minds graduating from the nearby universities, because these people care about being economically and socially responsible. The U.S. General Services Administration (GSA) is 2.0’s largest

tenant. The GSA has a LEED requirement for any leased or owned building.

Previously, that requirement was silver, but recently it’s been upgraded to gold.

Mazo said, “They have that interest because the U.S. Government has been trying to set a standard for commercial construction. This is their headquarters.”

3.0 University Place at the same location will begin construction once an anchor tenant is found, and, according to Mazo, should take two years to complete.

3.0 University Place is one of 100 building projects chosen to participate in the U.S. Green Building Council’s LEED v4 beta project. Additionally, news broke this month of plans for the third and final tower of Cira Centre South with the commitment of global specialty company, FMC Corporation, as the major tenant beginning at completion in 2016. Cira Centre South will be a mixed-use development, which includes an 850-bed, upscale housing option for graduate and professional students.

So the question remains: Why is University City booming while the rest of the nation is in decline?

Tax Credits

University City is part of a Keystone Innovation Zone (KIZ), an incentive program that provides tax credits to for-

profit companies less than eight years old operating within specific targeted industries within the geographic boundaries.

KIZ is a partnership between Drexel University, Thomas Jefferson University, University of Pennsylvania, University of the Sciences, The Wistar Institute, BioAdvance, and the Science Center. The tax credit pool is $25 million. Companies can get a tax credit that equals 50 percent of the increase in their revenue since the previous year. No company who has applied has ever been denied this credit.

Each company is eligible to receive up to $100,000 and can opt to sell their credits to larger companies. Last year, Apple bought $2.33 million worth of Pennsylvania tax credits.

In 2012, only three companies applied for the University City tax credit leaving more than half the pool unused. So far this year there are already 13 applicants for the credit — the highest number ever to apply. This is because, in past years, only life science companies were eligible, but this year KIZ decided to make tech companies eligible as well. The awards are announced in December each year.

Residential and Commercial Projects

The University Science Center now includes 15 buildings totaling 2 million

square feet of available plug-and-play incubator office space stretching from 34th and Market Street to 39th and Market.

With the addition of 2.0 University Place and the planned 3.0 University Place at 41st and Market to the West, and Cira and Cira South at 30th Street to the East, space is plentiful.

University City also boasts a 93 percent office occupancy rate and an 89 percent retail occupancy rate, as well as a 90 percent residential occupancy rate.

According to UniversityCity.org, 2.6 million square feet of new residential real estate projects have recently been completed or are under construction, which is expected to increase population by roughly 10 percent over the next two to three years.

Tang said, “It’s clear that not only are we attracting jobs but residents, too.

The Science Center’s planned residential tower at 3601 Market is one of many projects slated to increase the residential concentration in University City. The growth and expansion in the area isn’t limited to the anchor institutions either.

We have new green spaces and parks, like The Porch at 30th Street Station and Penn Park popping up.”

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Jack Soloff Senior Managing Director 215-246-2764 jsoloff@ngkf.com

Craig Scheuerle Executive Managing Director 215.246.2752 cscheuerle@ngkf.com

Matt Guerrieri Director 215.246.2709 mguerrieri@ngkf.com

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Philly Retaining More Bright, Young Talent Campus Philly, a nonprofit organization that fuels economic growth by encouraging college students to study, explore, live and work in the Greater Philadelphia tri-state region released a census report in the Spring of 2010 based on interviews with 4,600 graduate students, undergraduates and alumni. The results showed that our region is retaining significantly more non-native Philadelphians after graduation than we were six years ago (48 percent in 2010 versus 29 percent in 2004).

Interest in staying in Philadelphia after graduation is high, with 75 percent of alumni reporting that they were interested in staying in the region and 58 percent of current students saying they are likely to stay in the region.

Baltimore, which conducted a similar study in 2009 of its undergraduate population, found that only 31 percent considered it likely that they would stay in that region after graduation.

Also, according to a February 2011 report “America’s Biggest Brain Magnets,” on NewGeography.com, of all metro areas in the country with populations over 5 million, Greater Philadelphia ranked #1 in growth of the population over age 25 with a college degree.

In addition, the CEOs for Cities “Young and Restless in a Knowledge Economy” report shows that talented young adults are increasingly choosing to settle in the close-in neighborhoods of the nation’s metropolitan areas,

and Philadelphia is near the top of this trend, with a 57 percent increase in the number of 25 to 34-year-olds with college degrees living in our city and close-in suburbs.

Job opportunity is the most important factor to students in their decision to stay after graduation with 91 percent of Campus Philly respondents making that their clear cut first choice over affordability (63 percent) and staying close to family (55 percent).

The majority of the population in University City is between the ages of 20 to 34. Between 2000-2010, the number increased by 21 percent. Furthermore, more than half of residents in the district over 25 have obtained a Bachelor’s Degree or higher. In fact, an astounding 27 percent have Bachelor’s Degrees and 27 percent have Master’s Degrees or higher. In Philadelphia as a whole the numbers are 13 percent and 9 percent, respectively.

The 2 million square feet University Science Center with its plug and play incubator space along with the expansion of University Place and Cira makes the University City district most appealing to aspiring entrepreneurs. When coupled with the plentiful funding opportunities, networking chances and available startup tax credits, there is no better place in the region to start a career.

Transportation

30th Street station is located in University City, the second busiest train station in the nation, with 50,000 travelers a day. SEPTA’s regional rail provides connections to neighborhoods throughout Philadelphia and the suburbs all the way to Delaware and the Philadelphia International Airport. New Jersey transit trains cross the Delaware River, and AMTRAK trains go to destinations as far away as Miami, Chicago, and New Orleans. SEPTA has trolleys, buses (including the University City Lucy Loop), and subways servicing the neighborhood from end to end.

The district also offers easy on and off access to two major highway links I-76 and 676. University City also offers some of the most bicycle-friendly streets with a network of roughly 25 miles of bike lanes.

Talent

Due mostly to the area colleges, the majority of the population is between the ages of 20-34. Between 2000-2010, the number increased by 21 percent. Furthermore, more than half of residents over 25 have obtained a Bachelor’s Degree or higher.

In fact, an astounding 27 percent have Bachelor’s Degrees and 27 percent have Master’s Degrees or higher. In Philadelphia as a whole the numbers are 13 percent and 9 percent, respectively. Between Penn, Drexel, and the University of Sciences there are over 50,000 students in University City. This entrepreneurial spirit is a breeding ground for start-up companies. Academic funding for research has been increasing as well. University City researchers received more than 44 percent of all National Institutes of Health funding distributed statewide.

Josh Kopelman is a prime example of the type of ingenuity a lot of these students possess. Kopelman, originally from Great Neck New York, is a non-native Wharton School graduate who stayed in Philadelphia. He co-founded Infonautics Corporation in 1996, and founded Half.com in 1999. Half.com quickly became one of the world’s largest sellers of books, music, and movies. It was purchased by eBay in 2000 for $245 million. Kopelman remained with the company for three years, stepping down in 2003 to found TurnTide, an anti-spamming company, which was acquired my Symantec just six months later. In 2004, Kopelman founded First Round Capital, one of the nation’s most dynamic beginning stage venture capital firms, which is now headquartered at 40th and Locust streets. Kopelman told UniversityCity.org, “First Round Capital is thrilled to move our headquarters into University City. We’ve seen a real surge in the number of companies that were founded by students at Penn and Drexel—and are looking forward to helping the next generation of entrepreneurs get their start.”

30th Street Station

(FLICKR.COM/PMILLERA4)

21 NOVEMBER 2013

REGIONSBUSINESS.COM

INNOVATION

23

Innovator Of The Year Awards Celebrates Philly Six Philadelphia companies in four industry sectors were named winners at the inaugural Marcum Innovator of the Year Awards last Thursday, November 14. The awards honored the contribution of innovation to the Philadelphia area economy and the companies behind the ingenuity. Winners included: M^\agheh`r !lfZee" Ç Lmk^ZfMO G^mphkdl% bgghoZmhk h_ ,= ob^pbg` m^\agheh`r maZm \hgo^kml Zee ikh`kZffbg` bgmh Z ,= _hkfZm pbmahnm ma^ g^^] _hk special glasses.

M^\agheh`r !eZk`^" Ç KZcZgm% ibhg^^k h_ l\ZeZ[e^ Zg] ^Zlber ]^iehr^] Dbg^mb\ F^la g^mphkd m^\agheh`r _hk bg]nlmkbZe Zg] fbebmZkr pbk^e^ll \hffngb\Ztions.

A^Zema\Zk^ !lfZee" Ç A^ZemaJq% bgghoZmhk h_ ]ZmZ ZgZermb\l Zg] lh_mpZk^ solutions for transparency into the quality and cost efficiency of the healthcare system.

A^Zema\Zk^ !eZk`^" & @eh[nl F^]b\Ze Bg\'% Z f^]b\Ze ]^ob\^ fZgn_Z\mnk^k specializing in the design, testing and launch of innovative spinal implants. ;nlbg^ll FZgZ`^f^gm Ç <hgmbgnnf A^Zema :eebZg\^% Z ikZ\mb\^ fZgZ`^ment services innovator. >g^k`r Ç LmkZmBL >FL% Zg ^g^k`r fZgZ`^f^gm lrlm^f maZm Zeehpl [nbe]bg` managers to control energy usage at every point of consumption throughout the property portfolio.

Continued on page 24

Winners received a symbol of their achievements.

Former PA-Governer Mark Schweiker gave this year’s keynote address.

The Marcum LLP team celebrates with award winners.

24

21 NOVEMBER 2013

REGIONSBUSINESS.COM

INNOVATION

Innovator Of The Year Awards Celebrates Philly “Every one of our winners tonight and every one of our nominees has followed in the path of great innovators,” said David H. Glusman, Partner-inCharge of Marcum’s Philadelphia office. “The things you try don’t always work. In order to be innovative, you have to be willing to fail before you succeed and succeed big.

“That’s what we’re celebrating tonight. Marcum is honored to congratulate each of the outstanding companies whose achievements made the inaugural Marcum Innovator of the Year Awards so incredibly difficult to judge.”

Though under the weather with laryngitis, former Pennsylvania Governor Mark S. Schweiker, currently a Senior Vice President at Renmatix, delivered a brief keynote address.

“Region’s Business believes that if we continue the discussion about innovation in our pages and continue to highlight the companies that are driving innovation in Philadelphia, the market will embrace the advances that are being pioneered in this great city,” Jim McDonald, president and publisher of Region’s Business, said.

This year’s program was sponsored by PNC Bank (premier Franklin Sponsor), together with 44 Business Capital Partners, First Niagara, Morgan Lewis & Bockius, Peco, Wells Fargo, and Xerox, which were all Edison Sponsors.

Photos: Rikard Larma

Guests gathered for the awards presentation at the feet of the museum’s iconic Benjamin Franklin statue.

Christopher Wink presents the award for Technology Innovation (large) to Robert Schena, Jr. of Rajent.

Kathy Lentini presents the award for Energy Innovation to Felicite Moorman of StratIS EMS.

Salvatore Patti presents the award for Business Management Innovation to Dr. John Tedeschi of Continuum Health.

RoseAnn Rosenthal presents the award for Technology Innovation (small) to Leo Riley of StreamTV Networks.

David Glusman presents the award for Healthcare (large) Innovation to Andrew Lott of Globus.

21 NOVEMBER 2013

REGIONSBUSINESS.COM

FINE ESTATES PREVIEW

25

$2.8M European Country Manor In Newtown A winding driveway edged by antique trees leads to an elegant European country manor home with six bedrooms and five bathrooms.

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The lovely dining room with arched doors is wonderful for elegant dinner parties.

A vibrant colorful country kitchen is accented by tiles and contains a sweet breakfast room.

The family room/media room is rounded out with an elegant fireplace.

A sophisticated master suite with fireplace and luxurious bath comes equipped with a beautiful library.

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For more information on 55 Maher Lane, please contact Lisa James Otto at (215) 862-2626 Ext. 215

26

21 NOVEMBER 2013

REGIONSBUSINESS.COM

REAL ESTATE

PHL Local Gaming Criticizes City Assessment

BY JACK GRAUER PHL Local Gaming LLC (PHL) representatives last week voiced dissatisfaction with a recent state-commissioned assessment of their bid to build Philadelphia’s next major casino. An October report by the City of Philadelphia Commerce Department ranked PHL’s proposal lowest or close to it out of six competitors according to several metrics. PHL Local Gaming President Joseph Canfora said the Control Board’s methodology failed to account for crucial factors that distinguish their plan from the others.

For starters, the competition envisions the casino either in Center City or near the sports stadiums. PHL would instead build on a 30-acre lot at Front Street and Packer Avenue, close to where the group held this morning’s press briefing.

Among other advantages, a casino at its proposed location would draw traffic to a separate off-ramp rather than adding

stress to the already congested routes leading either downtown or to the stadiums. The location is also further from the closest residential areas than the others.

PHL’s newly revamped prototype, which it has dubbed Lower South Entertainment and Recreation District (LoSo), represents a smaller investment than some of the other plans. But it can “open at least six months prior to any other applicants,” according to PHL board member Bennett Lomax. The initial plan calls for 2,400 slot machines and 105 table games. If things go well, the operation would then expand its gaming accommodations to the full capacity a C2 gaming license allows: 5,000 slots and 250 tables.

Beyond gaming itself, according to its press release, the LoSo plan also includes attractions such as food-and-beverage and retail businesses, soccer fields, racquet sports, an indoor swimming pool, a zip-line park, rock-climbing facilities, a

PHL Local Gaming’s revised proposal for what it now calls the “Lower South Entertainment and Recreation District” adds theme-park attractions to the mix.

PHILADELPHIA REAL ESTATE BLOG

golf driving range, a dry ski/skateboarding park, a water park, and areas devoted to music and live entertainment.

The Pennsylvania Gaming Control Board is still evaluating the five remaining proposals for Philadelphia’s second casino license, which is also the last that will be awarded in the state under the

law that legalized casino gaming in 2002.

The board is expected to announce its decision early next year.

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

Q&A

21 NOVEMBER 2013

REGIONSBUSINESS.COM

27

CRAIG SPENCER:

THE LUXE LIFE OF LUXURY CONDOS

The 48-story, 270-unit Residences at the Ritz Carlton is the most expensive residential building in the city’s history with the highest, most valuable inventory in the market. With Dilworth Plaza park slated to open in 2014, the value is sure to grow.

Craig Spencer, founder, CEO and president of The Arden Group, and owner of the Rittenhouse Square property, spoke with Region’s recently about the location’s success even during a global financial crisis and what they expect for the future.

Why have the Residences at the Ritz Carlton remained successful?

Typically, when we look at buying a fundamentally-distressed property, we consider whether we’d be able to use our expertise operationally, as well as our capital, to execute a business plan that will allow it to operate above market again, which turns it into a good investment.

In the case of the Ritz Carlton, the property was already developed, so it was not financially distressed, but it met all of our other criteria. It was a good opportunity to take control of the Ritz Carlton brand in center city and we have a 25-year track record to back it up. Dealing with the largest residencies in a good location and a good market significantly reduced the project’s costs and allowed us to focus on sales without skipping a beat.

When the global financial crisis hit, we’d been around long enough not to panic.

In fact, we were able to close more sales than any other Ritz Carlton in the country.

And because we were well-capitalized, we were able to take advantage of the depressed market, and acquire [significant portions of ] debt at huge discounts.

What’s driving demand for the luxury condo market in Philly?

Philadelphia’s got a lot of people moving into the city. It’s a 24/7 city. Consider not only all there is to do downtown - restaurants, arts, educational opportuni-

ties – but also how easy it is to move around center city. The new wave of luxury condos is there to support that center city growth. There hasn’t been a new condo project in center city in 20 years. Many projects were talked about, only a few got built. 1706 Rittenhouse just sold out, and 10 Rittenhouse is down to between 5-10% of its inventory.

The interesting thing is that we have sold more condos in the last four years than any other building in center city. While I’ve outsold 10 Rittenhouse, I have a building that’s more than twice as big, with 270 units. Now, we’re in a great position now at the Residences because while our competitors have nothing left, we have our best inventory available.

How will the property maintain its momentum?

We got a little lucky, but eight years ago, there was the idea to convert Dilworth Plaza into a world-class park. We got behind it, even provided the first funding.

Having a $55mil world-class park operated as a semi-private entity, having that kind of amenity opening on our front door has worked out to our benefit. We’re expecting great things for both the velocity of our sales and pricing per square foot.

The more people live and experience the luxury condo lifestyle, the more people talk about it.

Philadelphiaresidences.com

28

21 NOVEMBER 2013

REGIONSBUSINESS.COM

OPINION

Making Pennsylvania More Competitive

David Patti is President and CEO of the Pennsylvania Business Council.

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

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

One hundred years ago, Pennsylvania’s state economy was bigger than that of most nations. Steel, coal, oil and gas, railroads, textiles made the Commonwealth a dominant industrial player.

One hundred years ago Pennsylvania had many advantages to draw on: abundant mineral resources and water; good transportation systems and proximity to most of America’s population; remarkable intellectual brilliance and creativity; and a tough, hardworking, resilient workforce.

Today, Pennsylvania enjoys most of the same advantages that put us at the forefront of world economy a century ago, but the competition among states and among nations is far more intense.

Our political and civic leaders must make competitiveness a primary and overarching public policy goal. The Pennsylvania Business Council in 2008 and again in 2010 completed meta-analyses — studies of studies — comparing research that looked at competitiveness issues of all 50 states. In January 2014 we’ll release a new study we’ve done based on 47 variables of competitiveness that we assembled to assess Pennsylvania’s ability to attract, grow and retain businesses and jobs. The bottomline in the first two studies: Pennsylvania is in the middle of the pack among the 50 states.

We’re not the best or the worst.

Clearly we can be better. The success of our firms and jobs of our families depend upon improvement. The metrics in our 2014 study are grouped in eight categories that economic development and site selection professionals consider important to their work: 1. Budget/state spending 2. Education/workforce development 3. Energy/natural resources 4. Healthcare 5. Infrastructure 6. Legal/regulatory climate 7. Quality of life 8. Taxation Next year, we’ll provide a roadmap to policymakers to address issues identified by the study.

There are no quick fixes, but there are some pretty obvious steps Pennsylvania could take to improve its competitive position: ;bm^ ma^ [nee^m Zg] fZd^ ma^ g^\^llZkr funds available to address Pennsylvania’s crumbling transportation infrastructure.

The dramatic and tragic collapse of a

bridge in Minnesota a few years ago and subsequent — fortunately, not fatal — bridge failures in Pennsylvania have well documented the need to take action on transportation infrastructure.

A handful of lawmakers must be convinced of the need to increase revenues for infrastructure supplants any promise not to raise taxes.

K^\h`gbs^ maZm I^gglreoZgbZÌl [nlbg^ll tax climate is among the worst in the nation.

While we enjoy a low personal tax rate, Pennsylvania’s corporate net income tax rate of 9.99% is the second highest in the nation.

And our tax rate is made worse by our continuation of a tax on the assets and net worth of our employers. Our cyclical commodity firms and start-ups are even further penalbs^] [r ma^ lmZm^Ìl k^_nlZe mh Zeehp bff^]bZm^ full deductibility of past business losses from current profits. We’re one of only two states to limit net operating loss deductions.

Lmhi makhpbg` fhg^r Zm ^]n\Zmbhg Zg] lmhi ]^fhgbsbg` m^Z\a^kl' Neither is useful. Secondary and postsecondary education are at a crossroads. The public understands the time is right: our students need to be well educated to fare well in the global economy. Fix the real problems of poorly performing schools. Set high standards. Ensure students are mastering material before they are pushed on and give them immediate remediation if they need it. Assess student learning and require competency in the basics of reading, writing and mathematics before graduation. Truly ensure that our young people are career and college ready.

Adequately fund post-secondary education that prepares young Pennsylvanians for 21st century jobs. Demand fiscal accountability from all schools, colleges, universities and other educational and training institutions. <k^Zm^ Z e^`Ze \ebfZm^ maZm bl _Zbk Zg] ik^dictable for plaintiffs and defendants alike; that provides just awards when warranted, but not lottery winnings for those who play.

We have to stop “venue shopping” — mov-

ing lawsuits to Philadelphia solely to find more permissive courtrooms and more generous juries. Create a statue of repose so manufacturers can’t be sued for product flaws decades after they were made and sold. And protect sellers who played no role in the design, manufacture, assembly or use of products from lawsuits.

Pbma ma^ ^\hghfb\ k^\ho^kr \hfbg` along slowly, there is widespread acceptance of the need to reduce the cost of doing business in the Commonwealth. Our workers’ compensation system is in dire need of fh]^kgbsZmbhg Zg] ho^kaZne' Hk`Zgbs^] labor and business were able to work with one another to achieve meaningful reforms to our unemployment compensation system (albeit more could be done). All parties must come together again on WC. Will these steps to improve Pennsylvania’s competitive position be achieved? The one absolute requirement is the political will to affect change among the policymaking role players: Governor Corbett and his Cabinet, the Pennsylvania Legislature, our career executive agency personnel, academic analysts and experts, media reporters and editorialists, and interest group advocates.

When we look to Washington, it is clear that many individuals in these roles have grown comfortable with an unending cycle of debate and argument.

How do we stop that from happening in Harrisburg? The involvement of people like the readers of Region’s Business is essential. The business people of Pennsylvania have to get engaged. Talk to incumbent officeholders and candidates, write policy leaders, support your chambers of commerce and trade associations, connect with the media, and educate your neighbors.

Let’s make Pennsylvania’s economy a world leader again.

21 NOVEMBER 2013

REGIONSBUSINESS.COM

OPINION

29

Businesses Can Help Ease Student Debts

N

Thomas P. Nerney is chairman, president, and chief executive officer of U.S. Liability Insurance Group in Wayne.

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

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

ews stories and headlines paint a dire picture of the financial futures of young Americans who are graduating from college with substantial debt.

While a certain percentage of students will graduate with little or no debt, student loans have surpassed credit-card debt as the second highest type of debt in our country, behind home mortgages. Seventy percent of those graduating from Pennsylvania colleges in 2011 carried an average debt load of $29,959 per student, with total national student-loan debt recently surpassing the $1 trillion mark.

The need for the business community in the Philadelphia area to step up and help our recent graduates is more urgent than ever before. As employers, what is our obligation in helping overcome the burden of student-loan debt?

At the U.S. Liability Insurance Group (USLI), we believe in young people and invest in them heavily. I have found that having their energy in the office pushes us all to get better every day. I have listened to them speak about their undergraduate experiences, for which they are grateful and proud. Yet for many, after doing whatever was necessary to finance their way through college, the reality is sinking in.

As an employer and a CEO, I find it unsettling to know that the salaries we can provide to recent college graduates don’t cut it anymore. They have borrowed their way through college with little attention to the consequences for their futures, and now we cannot pay enough for them to achieve financial independence.

I have asked myself if our regional corporate community, with more than 100 colleges and universities, can do something about this problem. I am calling on leaders of area businesses to consider how we can create positive change to keep the mounting debt at bay and bring greater financial literacy to our young people. How can we work toward a solution? Such a solution would be different for every company, but each could make a lasting impact.

At USLI, we implemented a college-help qualified educational assistance plan (per Section 127 of the IRS Code of 1986). This plan helps students from a dozen area colleges and universities interning with us to pay down their student loans.

Through the program, if our undergraduates have federal or private loans in deferredrepayment status, we direct a portion of their hourly wages toward paying down their deferred debt. Over four years, a student

(NATASSIA DAVIS

could earn up to $21,000 tax-free to repay student loans.

By decreasing their loan principals, students win by reducing or eliminating future loan payments, and we as a corporate community win by reducing the indebtedness of this generation.

The responses to the plan from our students and local colleges and universities have been overwhelmingly positive. We now want to share what we have learned in the hope that the regional corporate community will stand with us in support of this generation and this effort.

If USLI can implement a program for 90 students, I am confident that other companies can do something similar. Working with students and colleges, each company can determine how much of its interns’ pay goes toward debt repayment. In the process, students will better understand their financial-aid packages and learn more about what it will take to pay off their loans. After all, isn’t education what college is all about?

I believe that colleges and universities have a responsibility to take a more active role

in educating students about the reality of student-loan debt. There need to be honest conversations with students and their parents about the real cost of college over the course of their lifetimes, not just over four years.

We have all but mandated a college degree for the majority of entry-level positions, and, in return, I believe the business community is in a unique position to address this one small piece of the studentdebt pie. We should do our part because, ultimately, it’s the right thing to do.

Thomas P. Nerney, Chairman, President and Chief Executive Officer of United States Liability Insurance Group in Wayne, PA, received his undergraduate degree at Cabrini College in Radnor and an MBA from St. Joseph’s University in Philadelphia. He is currently the Chair of the Board at Cabrini College. Last year, Cabrini College instituted a groundbreaking 12.5 percent reduction in tuition and fees.

Contact him at tnerney@usli.com

30

21 NOVEMBER 2013

REGIONSBUSINESS.COM

BY THE NUMBERS

155

Fewer calories ordered by consumers at restaurants where caloric intake is on the menu, according to a study by researchers at Drexel Universityâ&#x20AC;&#x2122;s School of Public Health

80%

88,000

Youth experiences provided by the WorkReady Philadelphia program over the ten year period from 2003 to 2013

Customers who reported seeing labels on restaurant menus

26%

Customers who said it impacted their menu choice

400

Average amount of calories saved by customers who reported considering caloric information when making ordering decisions The Philadelphia Youth Network

1,600

Calories ordered at full-service restaurants per meal, with and without menu labeling

2,000

Average number of calories recommended for most people daily FLICKR.COM/BITCHCAKES

30%

Retailers expecting strong sales this holiday season (vs 41% in 2012), according to the 2013 American Express OPEN Small Business Holiday Monitor

54%

27%

Small business owners who will purchase holiday gifts for their clients from a small business

Small business owners giving their staff endof-year bonuses this holiday season, (vs.

35% last year)

41%

Business owners who plan to give clients/ customers gifts this holiday season, down from 51% last year

$203M

Invested in the system by public and private sources

32%

Small business owners who will throw a holiday party, down from 40% last year

FLICKER.COM/SCOTT BEALE

9,000

Work experiences provided

$15M

Invested by the business sector

130

Organizations supported the program by delivering workforce preparation programs for youth

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