Region's Business May 23

DESPITE SANDY, AREA RESIDENTSSTILL HEADED TO JERSEY SHORE

FINE HOMES GUIDE SPECIAL SECTION

A JOURNAL OF BUSINESS AND POLITICSPHILADELPHIA EDITION 23 MAY 2013

REGION’S BUSINESS

UP$, DOWN$REAL ESTATE MARKET SEEING

While Center City and its surrounding neighborhoods continue to attract younger, wealthier residents, some city and suburban neighborhoods continue to decline

DEMOCRATS HOPING TO CHALLENGE GOVERNOR CELEBRATE SESTAK EXIT

MAYOR PROPOSES TAX HIKES ON ALCOHOL, CIGARETTES

ECONOMY, COSTS DRIVE STARTUPS

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Market’s Uneven Return

22

YEAR OF THE INNOVATOR

Economy, Costs, Culture Driving Young Startups

19 ‘Going Green’ On The Road

17

20Benjamin’s Desk Continues Startup Grind

101010

Visitors Return to Jersey Shore

PRESIDENT AND PUBLISHER James D. McDonaldEDITORIAL DIRECTOR Karl M. SmithASSOCIATE EDITOR Terrence J. CaseyCONTRIBUTORS Brandon Baker, Carl Feldman, Nick Field, Charlie Gerow, Keegan Gibson, Daniel Gleason, Brooke Hoffman, Timothy Holwick, Don Lee, Greg MeckstrothPROOFREADER Denise GerstenfieldADVERTISING DIRECTOR Larry SmallacombeDIRECTOR OF BUSINESS DEVELOPMENT Deirdre Affel

Copyright 2013 Independence Media Corp. All rights reserved. Use of material within without express permission of publisher is prohibited.Region’s Business is published weekly on Thursdays and online at www.regionsbusiness.com.The published makes no representations or warranties regarding the advertising appearing in its pages or its websites.

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CONTENTS

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WEEKLY BRIEFING

TOURISM

Convention Center Labor Issues Lead To Financial Woes

A $780 million expansion that prom-ised to bring new business to the $1.3 billion Pennsylvania Convention Center has failed to produce positive results, AxisPhilly reported in an in-depth article.

Though the center has 20 major con-ventions scheduled for 2013, it has only eight booked for 2016, according to the report.

That would drop the center’s economic impact from $510 million this year to about $230 million in 2016.

“Read the post-convention reports and the mantra is the same: the groups like the new convention facility; their attendees love the city, but the same complaint echoes again and again in these reports: Labor hassles, labor costs, labor overtime,” Tom Ferrick wrote in the AxisPhilly report.

Flower Show Blames $1M Loss On ForecastThe Philadelphia Flower Show lost

about $1.2 million this year because of forecasts that called for a severe winter storm, o!cials said, according to an Associated Press report.

“It was a snow drumbeat, and it was relentless,” said Drew Becher, president of the Pennsylvania Horticultural Soci-ety, according to the report.

Online ticket sales were up 7 to 15 percent from last year’s pace before the forecasts, Mr. Becher said, proving that visitors were not turned away by ticket prices or the quality of the show, which on average brings in about $1 million in profit for the society, according to the report.

Meteorologist Greg Heavener of the National Weather Service in Mount Holly, N.J., blamed television and radio stations for hyping up the forecast, say-ing, “They hype it up for ratings and viewership, and all meteorologists kind of take the blame for it,” according to the Associated Press. TERRENCE J. CASEY

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HIGHER EDUCATION

Sluggish Employment Report for Pa. Colleges

The number of jobs in higher education was essentially unchanged in the first quarter of 2013. Meanwhile, the number of advertisements for job openings in higher education continued to grow, but at a moderating pace, according to a new report from HigherEdJobs.

The analysis of U.S. Bureau of Labor Statistics data found the total number of jobs in higher education was down incrementally, decreasing 0.4 percent, and was eclipsed for the second consecutive quarter by U.S. job growth rate, which grew by 1.5 percent.

The “market share” of higher education jobs com-pared to all U.S. jobs was lower in Q1 2013 by 0.02 percent compared to the same quarter last year.

TRANSPORTATION

PHL Nears New Expansion After City Council Vote

A 15-year expansion project at the Philadelphia International Airport moved one step closer to reality after a City Council committee approved purchasing Tinicum Township properties, Newsworks reported.

In order to expand the airport, the UPS facility would have to move into the purchased space.

“It is about trying to make the necessary improve-ments to the airport to reduce delay to enhance capacity for the future to redesign and rebuild our facility so we can set the airport up to handle the needs of the city long term,” airport CEO Mark Gale told Newsworks.

JOBS

State Unemployment Drops to 7.6 Percent

The state’s unemployment rate dropped three-tenths of a percentage point to 7.6 percent in April according to employment statistics released by the Pennsylvania Department of Labor & Industry.

Unemployment decreased 17,000 to 496,000. This was the third largest decrease on record, behind only March 2013 and July 1983.

Employment was up 13,000 to 6,008,000. This increase tied September 2012 for the second largest employment increase in the past twelve months.

Private sector jobs were up 8,300 to the high-est level since September 2008. The largest gains were in professional and business services, leisure and hospitality and educational and health services, which all reached record-high job levels in April.

Table Game Revenue Up 8.9 Percent In Pa.

The Pennsylvania Gaming Control Board announced recently that revenue generated from the play of table games at Pennsylvania casinos dur-ing April 2013 was 8.9 percent above table games revenue produced last April.

This April’s gross table games revenue generated by 11 casinos was $61,552,334, or about $5 million higher than in April 2012 when revenue totaled $56,499,624.

Revel Admits Errors In Restructuring Plan

Atlantic City’s newest casino told the New Jer-sey Casino Control Commission last week that it needed to quickly focus on customer satisfaction after making approximately $2.4 billion’s worth of errors in its first year of operations, the Press of Atlantic City reported.

“Everyone deserves a second chance. We’re looking for a second chance,” Je!rey Hartmann , Revel’s interim CEO, told the commission during

a bankruptcy hearing, the Press reported.As part of Revel’s restructuring, it will

add more a!ordable restaurants, end its no-smoking policy, add more diverse entertainment and employ a new mar-

keting strategy, according to the Press report.

SugarHouse Expansion Could Hit JackpotBY BROOKE HOFFMAN

A week after it took public input on the proposal, the Pennsylvania Gaming Control Board approved the expansion of Philadelphia’s first casino, SugarHouse, on the Delaware riverfront in Fishtown.

The expansion, which has been the subject of buzz for a while, suddenly comes into play as six other casinos are fighting for the city’s second gaming license, like an older sibling grasping for attention upon the arrival of a newborn.

The arguments for all casino developments hinge on potential income and jobs, but does the approved plan improve Sugar House or prepare it for competi-tion?

The Gaming Control Board granted SugarHouse permission to open in two phases when it originally approved its license. SugarHouse’s original proposal for its second phase increased the gaming area by about 40,000 square feet, including a high-limit room, a dedicated poker room, and new focus on Asian table games. The plan included a 10-story parking structure and a second floor with conference and event space.

All of those elements remain in the revised plan the PGCB approved, but the garage is small-er — seven stories instead of 10

— and there are fewer additional slots in a slightly smaller enlarged gaming hall.

According to a report in Plan Philly, during the public input meeting, General Manger Wendy Hamilton explained there is a demand for the space: “We already are getting requests for everything from weddings to cor-porate events.”

The expansion would create

450 full- and part-time jobs along with up to 700 construction jobs over the next two years of con-struction.

Plan Philly also discussed how an increase in revenue for Sugar-House could also benefit the Penn Treaty Special Services District, which the casino helps fund to the tune of $500,000 annually — “an amount that would increase to $1 million each year.”

This article was originally published on the Philadelphia Real Estate Blog at Philadel-phiaRealEstate.com.

While six applicants battle it out for the city’s second casino license, SugarHouse, its first, got the okay from the Pennsylvania Gaming Control Board for its planned second phase expansion. G. WIDMAN FOR GPTMC


WEEKLY BRIEFING

PHA Seeks Developer Partners For More Affordable Housing

BY GREG MECKSTROTH

The Philadelphia Housing Authority has been in the news in recent years for

its high-performance sustainable development seen in new construc-tion public housing across the city.

The authority, the fourth largest in the country, is once again on the forefront of public housing innova-tion, this time launching a formal process to form new development partnerships as part of its “6 in 5” initiative, which is designed to create or preserve 6,000 a!ordable housing units over the next five years.

Since the Authority has been de-densify-ing a lot of its public housing sites for more than a decade, replacement sites have been identified to make up the unit gap from the original sites.

Federal funding to build new sites has shrunk and the agency has decided part-nering with other development groups that build a!ordable housing is the way to go.

To do this, the agency has issued a request for proposals (RFP) for a local unit-based operating subsidy program to assist devel-opments that serve low-income households. The subsidies may be used for existing, newly constructed, or renovated housing

units, and will provide long-term financial assistance to property owners.

PHA has done this in the past, notably on senior housing complexes across the city, but this is the biggest, most expansive e!ort to partner with private developers to build low-income housing.

It’s a move out of necessity: PHA no lon-ger believes it can provide a!ordable hous-ing alone and is turning to these types of partnerships to fill the demand.

PHA is accepting proposals for the pro-gram through the end of 2014. Developers and others interested in viewing the RFP can request a copy by following the instruc-tions posted at http://www.pha.phila.gov/business-opportunities.aspx.

This article was originally published at PhiladelphiaRealEstate.com.

DEVELOPMENT

Preservation Achievement Award WinnersThe following awards were given out last week:

James Biddle Award For lifetime achievement in historic preservation:John Andrew Gallery

Public Service Award For preservation in the public interest:Preservation Pennsylvania

Rhoda and Permar Richards Award For service to the Preservation Alliance:Marian Kornilowicz

Board of Directors Award For exceptional contributions to historic preservation:The Union League of Philadelphia

Community Action Awards For achievement by community organizations: — Friends of the Wissahickon— Nicetown Community Development Corporation

50th Anniversary RecognitionSociety Hill Towers

2013 AIA Philadelphia Landmark Building AwardKeystone National Bank, 1887/1890 1326 Chestnut Street Willis Hale

The Henry J. Magaziner EFAIA Award PennPraxis PRESERVATIONALLIANCE.COM

Study: Residential Property Would Shoulder AVI Burden

As a result of the prop-erty tax overhaul known as the Actual Value Initiative (AVI), residential property will account for a greater share of Philadelphia’s total property value — and thus the property tax bur-den — in 2014 than in 2013, according to a new report from The Pew Charitable Trusts.

For the residential sector as a whole, the added tax burden could be as much

as $72 million annually, with another $11 million in taxes on the “stores with dwellings,” which dominate neighborhood commercial corridors.

Meanwhile, the burden shouldered by the com-mercial and industrial sectors would fall by about $55 million and $20 mil-lion, respectively, each year.

In all, Philadelphia col-lects about $1.2 billion per

year in local property taxes for the school district and city government.

As explained in the report, AVI: The Shift in the Prop-erty Tax Burden, several proposals made by Mayor Michael Nutter and mem-bers of City Council, includ-ing a homestead exemption for all owner-occupied residences, would lessen the magnitude of the changes, perhaps significantly, but likely not eliminate it.

CONSTRUCTION

City Officials Discuss Philly Construction

City o"cials joined members of the Philadelphia construction industry Fri-day to discuss the city’s economy and the industry’s future.

Deputy Mayor Alan Greenberger, Councilman Bill Green, Councilwoman Maria Quinones-Sanchez and Licenses and Inspections Commissioner Carlton Williams comprised the panel organized by the General Building Contractors Association Friday at the Ritz Carlton.

PHILADELPHIA

Innovation Summit Begins This Week

The 2013 Mayors’ Innovation Summit — which began Wednesday — “seeks to provide an important forum for dialog among mayors, information and tech-nology o"cers, civic innovators, technol-ogy executives and the non-profit sector to share their vision of the city of the future,” according to Temple University.

The three-day event will allow city lead-ers and technology experts to show-case the collabora-tive and strategic e!orts they believe can solve the city’s most important challenges.

PHILADELPHIA

City Receives $1.2M ArtPlace America Grant

ArtPlace America announced the award of grants totaling $1,195,150 to implement four projects that animate public spaces through art in University City, Frankford, and the Delaware River waterfront.

The projects, River Stage at the Water-front, FringeArts on the Waterfront, Destination Frankford, and The Depart-ment of Making + Doing, were chosen from more than 1,200 applications as exceptional examples of creative place-making.

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TOURISM

Please Touch Museum Leader Stepping Down

Philadelphia’s Please Touch Museum President and CEO Laura Foster will step down after fi ve years at the helm, the Associated Press reported.

Ms. Foster’s contract with the Fair-mount Park-based museum ends in November, but it was not clear when she will o! cially leave her position.

Chairwoman Salle Stetson told The Philadelphia Inquirer that she and Ms. Foster had discussed the moves for months and said a national search for a replacement will begin soon.

The museum began renovating Memo-rial Hall in 2005 and relocated to the site from 21st Street in 2008. It has been struggling to prepare future debt payments stemming from that move, according to the report.

OKLAHOMA TORNADO

Pottstown Hotel Raising Funds for Tornado Victims

Owners of the Comfort Inn & Suites Pottstown were quick to respond to the devastating loss of life and property from a massive tornado in Moore, Oklahoma.

T h e h o t e l announced plans on Facebook to donate up to $1,000 to the American Red Cross of Oklahoma City via a “Like A Thon.”

Through Tuesday, the hotel will donate $1 for every “Like” on the Comfort Inn & Suites Pottstown Business Page (Face-book.com/PottstownCI), up to $1,000.

If your business is donating to this cause, email Terrence Casey at [email protected].

Below are some of uwishunu.com’s top picks for where to celebrate Memorial Day weekend in and around Philadelphia:

wood Gardens: “On Saturday, May 25 at 9:15 p.m. fi reworks illuminate the night sky at Longwood Gardens’ Fire-works and Fountains event. Tickets to the event are available online and also include all-day access to Longwood Gardens.”

the National Constitution Center: “From Saturday, May 25 to Monday, May 27 the National Constitution Center celebrates military heroes with a number of family-friendly activities for museum guests.

“Each activity is included in the price of museum admission. The museum also provides guests with extended hours on Sunday, May 26.”

“It’s the kick o" weekend for the sec-ond annual Hidden City Festival, and an epic block party is set to go down at 12th and Wood Streets in the Callow-hill neighborhood. From 7 to 11 p.m. on Saturday, May 25, local bands and DJs provide music for folks to dance up a storm at the Reading Viaduct. Food trucks will be on site serving up a variety of sweet and savory fare, and craft beer will be available as well. Tickets are available online.”

and Reception at Laurel Hill Cem-etery: “Laurel Hill Cemetery is home to the burial plot of General George Gordon Meade, a war hero from the Battle of Gettysburg.

“On May 26 honor the famed war hero, and all war heroes, at the cem-etery which will host a service and wreath-laying.”

Memorial Day in Philadelphia


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Le Bec Fin ClosingPhiladelphia’s famous Le Bec Fin will be formally closing its doors after more than 40 years on Walnut Street.Chef Justin Bogle will replace the restaurant with a “progressive American” menu with ultraseasonal ingredients, Zagat reported.

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BY THE NUMBERS

79%People who said

Superstorm Sandy did not change their summer

vacation plans

6%People who said they had

to find a new location down the shore because the usual

location was hard hit

71%People who believe the

Jersey Shore will be ready in time for Memorial Day

weekend

404,000Philadelphia area residents who will travel at least 50 miles from home for the

holiday weekend


ocean and bay water will be safe for swimming and

boating Memorial Day weekend


money they spend at the Shore over the weekend

will directly help small businesses rebuild

16%People who are changing travel destinations but still

going to New Jersey

Survey: Sandy Didn’t Change Most Summer Plans

The summer travel season is about to kick o! with Memorial Day weekend

— and it’s the first big tourism test for the Jersey Shore after the devastation of Hurricane Sandy.

According to a new AAA poll released today, 79 percent of Philadelphia-area and New Jer-sey residents say the storm did not change their summer travel plans.

Some travelers may spend less time at the Shore, or visit a di!erent town, if their usual destination is not available. But others are making extra e!orts to patronize Jersey Shore busi-nesses to help revive the local economy.

AAA estimates that 404,000 Philadelphia area residents will travel 50 miles or more from home this Memorial Day week-end, unchanged relative to the holiday period in 2012.

Of those traveling in the Phila-delphia area, 90 percent plan to drive to their destination. And 22 percent of those Memorial Day weekend travelers plan to visit the Jersey Shore.

An overwhelming majority (71 percent) of respondents believe that the Jersey Shore will be open for summer travelers with an even greater majority (75

percent) believing that the ocean and bay water will be safe for swimming and boating.

AAA’s post-Sandy travel poll also finds nearly 60 percent saying their favorite Shore area wasn’t harmed.

“People are very informed, and some travelers have already visited the Shore personally, to find out if their favorite resort is available before they book travel with us,” said Jenny M. Robinson, Manager of Public and Government Affairs for AAA Mid-Atlantic. “Wildwood and Cape May continue as the most popular shore destinations for the Philadelphia region, and that part of the Jersey Shore was relatively unscathed by Sandy, so people are planning trips there just as before.”

Despite Sandy, visitors — especially NJ residents — are determined to get back to the Jersey Shore

AAA’s poll, commissioned by the AAA Clubs of New Jersey, finds that “Jersey Strong” isn’t just a saying.

The poll asked: “Are you mak-ing an e!ort to visit Shore towns hurt by Hurricane Sandy, to increase tourism and support local businesses?”

Half of the New Jersey residents polled (50 percent) answered “yes,” with the major-ity (82 percent) believing that the money they spend at the Shore will directly help small businesses to rebuild.

Of Pennsylvania residents polled, 28 percent also said they were making an e!ort to support local Jersey Shore businesses.

Long term stays have decreased, but more beach goers are planning on taking at least one day trip.

Of those day trippers, 20 per-cent plan more than six trips and 28 percent plan to take between one and three trips.

For those who had to alter their usual travel location, the most popular response (16 per-cent) was to visit another New Jersey Shore spot rather than go out of state.

However, 8 percent of respon-dents plan to visit Ocean County, Maryland instead, and 5 percent plan to visit Delaware beaches.

The bridge between Sea Isle City and Avalon remained closed to traffic last month, but shore officials say both towns will be ready for Memorial Day weekend. TERRENCE J. CASEY


DEALBOOK

DEVELOPMENT

Resource Real Estate Buys Alabama Site

Philadelphia-based Resource Real Estate Opportunity REIT, recently announced it has purchased Autumn Wood Apartments in Birmingham, Ala-bama, for $8.5 million

Autumn Wood is a 196-unit multifam-ily residential community that consists of 12 buildings and sits on over 17 acres.

The property is located in the city lim-its of Hoover, in Je!erson County, within the greater Birmingham area.

The purchase of Autumn Wood was an “o! market” acquisition that was brought directly to Resource Real Estate.

RRE was able to close this transaction on an all-cash basis and on an acceler-ated timeframe, which motivated the seller to approach RRE.

HEALTH CARE

Worldwide Medical Moving To Bristol

Hamilton, NJ-based laboratory equip-ment company Worldwide Medical Products will be moving operations and about 40 employees to a 68,000-square-foot building on Wharton Road in Bris-tol Township’s Keystone Industrial Park, according to a report on PhillyBurbs.com.

“We just needed more space,” Direc-tor of Operations Chris Conway told PhillyBurbs.com. “We’re just out of space here.”

Mr. Conway also said the company plans to hire an additional 30 employees in the next few years.

Worldwide Medical Products received $2.24 million in low interest financing from the Pennsylvania Industrial Devel-opment Authority to fund the $4.6 mil-lion move, according to the PhillyBurbs.com report.

Cherry Hill, NJ-based Subaru is considering the Navy Yard for its new corporate headquarters, according to a report in the Philadelphia Business Journal.

The car manufacturer has been looking to move out of its current, 115,000-square-foot facility (where it has been located for more than 25 years) into about 225,000 of real estate, according to the

report. The move could happen as early as 2015.

Subaru has also broke ground last year on a 526,000-square-foot distri-bution center and training facility in Florence, NJ, according to the report.

Subaru Considering Navy Yard for New Headquarters


CONTRIBUTE

Send comments, letters and essays to [email protected]. Opinions expressed by guest writers do not necessarily reflect those of Region’s Business.

Mayor Proposes Alcohol, Tobacco Tax HikesPhiladelphia Mayor Michael Nutter has

proposed a tax hike on liquor and tobacco, namely packs of cigarettes, in order to help fund the Philadelphia School District.

The School District requested $60 million to close its budget gap, and Mayor Nutter’s proposal estimates that his new tax increases will raise approximately $95 million.

The fi rst portion of the proposal would increase the liquor tax from 10 percent to 15 percent, which is applied by the drink. That tax increase would take e! ect July 1 and is expected to raise $22 million.

The second portion of the proposal increases the tax on each pack of cigarettes by $2. The $2 increase would be on top of whatever current city and state taxes apply. The tax increase on cigarettes would come into e! ect January 1 of next year and remain in e! ect until the school district’s fi scal year ends in July 2014.

The tobacco tax hike is expected to raise

$45 million.Mayor Nutter made it clear that while

increasing taxes on tobacco will likely have a health impact, the goal of the increase is unequivocally to raise money for the school district.

He mentioned that he is no friend of the cigarette industry, that there are about 280,000 smokers in Philadelphia, and that deaths related to smoking are Philadelphia’s No. 1 cause of death.

Some portion of the funds raised will be set aside for the Philadelphia Health Depart-ment’s e! orts toward tobacco cessation.

Philadelphia City Council is considering an alternative to the mayor’s plan which would call for a raise in the Use and Occupancy Tax on businesses.

This approach is a broad-based tax increase on businesses instead of the more focused impact of a liquor and tobacco tax increase.

The Use and Occupancy Tax is a property

tax specifi c to commercial property and has been debated along with the Business Income and Receipts Tax in recent years.

It is the mayor’s position that the city cannot make such a general tax increase, when he feels they already ask so much of businesses.

The mayor’s proposal accompanies other initiatives to raise funds for the school district, most notably Philadelphia’s well-documented e! orts to pursue delinquent property taxes.

Mayor Nutter believes those e! orts would raise another $28 million in the next fi scal year.

Some City Council members, and plenty of Philadelphia businesses a! ected directly by the liquor and tobacco tax increases, are calling the mayor’s proposal bad policy.

In order for his proposal to come into e! ect, it will have to pass through City Council as well as needing some required measures from the Pennsylvania Legislature.

Timothy Holwick is a freelance writer covering Philadelphia government. Find more coverage at citycouncilmatters.com.

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Montco’s Shapiro Launches Statewide PACBY DANIEL GLEASON AND CARL FELDMAN

Montgomery County Commission-er Josh Shapiro is a rising star in Pa. politics, but he won’t seek a

promotion this cycle. He’s taken a pass on bids for Governor and Congress and instead announced the formation of a statewide PAC.

The initiative, named Keystone Reform, promises to “bring our brand of common-sense reform and pragmatic progress to other counties, cities and across the Com-monwealth.”

Commissioner Shapiro’s new group also plans on playing a role in future elections and to “spread the ethic of good government” through grassroots e! orts through the orga-nization.

“People throughout the Commonwealth have seen the progress we’ve made in Mont-gomery County and are hungry for the same approach to help reform both Harrisburg and Washington,” he said. “Our governing model is based upon an agenda of real reform, fi scal

responsibility and cooperative governing that is delivering real results.”

Commissioner Shapiro was often named as a potential candidate for Governor in 2014 and for Rep. Allyson Schwartz’s seat in Congress in PA-13. Though he took no steps toward a run for higher o" ce in 2014, he did not rule out either campaign until this week.

In addition to the lofty goal of boosting political pragmatists in the Democratic party, the PAC is a way for Commissioner Shapiro to expand his brand, continue to raise money, and build political alliances.

If Gov. Tom Corbett is re-elected in 2014, Commissioner Shapiro will be among the fi rst in line for the Democratic nomination in 2018.

Commissioner Shapiro lead the Democratic ticket to a commission majority after 150 years in the minority in Montgomery County in 2011. He previously represented the 153rd district in the PA State House.

This article was originally published at PoliticsPa.com. FACEBOOK.COM/JOSHSHAPIROPA


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President’s Scandals Threaten US ConfidenceWith scandal swirling around the Obama

Administration the famous words of Sen. Howard Baker, repeated ad infinitum, “Who knew what and when did they know it?” ring ever louder.

An intense search for truth about Beng-hazi should predominate all discussion, for that is where Americans in service of our nation were brutally murdered. But other scandals have captured equal and often greater attention.

The media is understandably upset about the Justice Department secretly invading the phone records of their reporters and editors. The media’s darling is now in a di!erent role, and his handlers seem unprepared and ill-equipped to handle tough questions from the media that once fed at the trough of Obama charm.

The scandal that may have the greatest potential for long-term political harm to the Obama Administration is the Internal Revenue Service’s targeting of conservative organizations for harassment.

These groups had their applications for tax-exempt status delayed for months and even years, while others were subjected to endless and burdensome inquiries and audits. All this while “progressive” and politically liberal organizations saw theirs sail through, most notably the Barack H. Obama Foundation.

The fact that there is a package of three well-publicized scandals simultaneously threatening the Obama Administration adds

to their political problem. Humans connect with things that come in

threes. From the Holy Trinity to the Triple Crown, we naturally remember and hold on to things neatly packaged in groups of three.

It’s partly because three things are finite enough to remember but big enough to show a pattern.

The pattern with the Obama scandals is especially troublesome for him because they hit at the heart of his core message: that he was di!erent and would provide a transpar-ent government that wasn’t just “politics as usual.”

And the strategy, if there is one, that the Administration has employed thus far smacks of cover-up and obfuscation.

The first line of defense is an incompe-tence plea. “We didn’t know” and “these things were done by lower-level personnel” are not big confidence builders.

The IRS scandal is Exhibit One. Using the IRS against political opponents isn’t new and didn’t begin with Nixon.

FDR and JFK both did it. But having to deal with charges about something that strikes at the heart of every American — we all know the awesome power of the IRS

— for nearly four years is something no president has had to do.

While we don’t yet know all the facts, there are enough already on the table to cause great concern.

Lois Lerner, the IRS director of exempt organizations (and the same person who

so quickly approved the Barack H. Obama Foundation), made her admissions at an obscure meeting of the Bar Association.

She was busted for reading from a script the answer to an unusual question about targeting.

The IRS commissioner later admitted that the question — and subsequent answer — was planted. It was an attempt to inoculate and minimize against an imminent inspec-tor general’s report they knew would be damning.

That e!ort to spin the story didn’t last long. Their ploy was outed and, meanwhile, the social media went wild with stories of conservative groups across the country, com-plete with e-mails and other correspondence proving that the pattern went far beyond low-level employees in Cincinnati and existed far longer than the timeline provided by the good folks at the IRS.

The political fallout of most scandals comes from cover-ups and subsequent e!orts to hide the truth from the citizenry, more than the underlying bad acts.

For this reason the IRS scandal looms even larger.

It threatens to undermine any confidence the American people have in this adminis-tration.

And it is especially chilling considering that the IRS is charged with implement-ing what is already a massive government overreach — the “A!ordable Care Act” — ObamaCare.

Charlie Gerow is CEO of Quantum Communications, a Harrisburg-based public relations and issue advocacy firm.

POLITICAL COMMENTARY


POLITICS

Democrats For Governor Celebrate Sestak Exit

BY KEEGAN GIBSON

The Democrats running for Gov-ernor breathed a collective sigh of relief last week as former

Rep. Joe Sestak confirmed that he has his eyes on a 2016 Senate run rather than a 2014 campaign for Governor.

He and Rep. Allyson Schwartz were tied at 15 percent each in a late April Quinnipiac poll of a hypothetical guber-natorial primary. Mr. Sestak hosted a fundraiser for Rep. Schwartz’s Occupy movement opponent Nate Kleinman in 2012 and the two are not known to have a warm relationship.

But the Montgomery County Con-gresswoman saluted Mr. Sestak in a statement.

“Like Pennsylvanians across the Com-monwealth, I admire Rep. Sestak’s life-time of service to Pennsylvania and our nation,” she said. “In Congress, he was leader on critical issues — including our nation’s military, national security, and veterans a!airs. I appreciate his deep commitment to public service and wish him well.”

Former Department of Environmen-tal Protection Secretary John Hanger agreed.

“Admiral Sestak has already given great service to this country both in his military career and as a member of the U.S. House of Representatives,” said Mr. Hanger. “He will make a great U.S. senator. I wish him the best of luck as he seeks to unseat Pat Toomey, the fourth most conservative senator in the Senate.”

Likewise former Pa. Revenue Secre-tary Tom Wolf of York County.

“Admiral Sestak is a champion for Pennsylvania families. He deserves thanks for his past service and contin-ued e!orts on behalf of all of us,” Mr. Wolf said. “My campaign for governor will continue to focus on creating jobs and leveling the playing field for the middle-class.”

So too from pastor Max Myers.“We are pleased to hear that Joe is

making plans to run for U.S. Senate and we strongly support this e!ort. America desperately needs more people in lead-

ership that have the abilities and char-acter that we all have come to admire and appreciate in Joe,” Mr. Myers said.

Former Pa. DEP Secretary Katie McGinty agreed.

“Joe Sestak’s decision to run for the Senate makes a wide open Democratic gubernatorial primary even more of a toss-up,” she said.

Pa. Treasurer Rob McCord echoed their compliments.

“Joe Sestak’s accomplishments in the U.S. Navy and in the U.S. Congress are exemplary, and I wish him the best of luck in his campaign,” he said. “Penn-sylvanians who care about funding edu-cation and creating good-paying jobs would be fortunate to have Joe Sestak fighting for them as their Senator.”

It’s tough to say which of the Demo-crats seeking to unseat Gov. Tom Cor-bett benefits most from Mr. Sestak’s decision to decline the race. Mr. Sestak is well known and lead most of the early primary polls, thanks in part to his statewide run for Senate in 2010.

His base in Delaware County would have put him in a pitched southeastern battle with Rep. Schwartz and Treasurer McCord, both of Montgomery County, and Secretary McGinty of Chester County.

Mr. Hanger, Mr. Wolf and Mr. Myers have also announced bids. They live in the Harrisburg area in Dauphin, York and Cumberland counties, respectively. Allentown Mayor Ed Pawlowski and state Sen. Mike Stack (D-Philadelphia) may also compete for eastern Pa. voters.

Treasurer McCord, Mr. Pawlowski and Sen. Stack have not officially declared bids.

Nearly 20 percent of registered Pa. Democrats live in Philadelphia, 6.2 percent in Montgomery, 4.6 percent in Bucks, 4.1 percent in Delaware and 3.1 percent in Chester counties according to Labels & Lists.

A Sestak candidacy would have opened the door even wider for a west-ern Pa. Democrat.

His departure probably most benefits Rep. Schwartz, leaving her as the best-known candidate in the race in SEPA and elsewhere, and the most potent fundraiser.

The move also keeps the door open for Treasurer McCord, who would have been hard pressed to win even his own geographic base against both Rep. Schwartz and Mr. Sestak. He’s also now the most prominent male candidate.

This article was originally pub-lished on PoliticsPa.com.

8TH CONGRESSIONAL DISTRICT

Second Democrat Emerges Against Rep. Fitzpatrick

BY NICK FIELD

Shaughnessy Naughton, a former sci-entist and publisher, has thrown her hat in the ring and announced her intention to run for the Democratic nomination to challenge Rep. Mike Fitzpatrick in PA’s 8th congressional district.

Ms. Naughton’s o"-cial campaign website identifies her as a Point Pleasant native who was born and raised in Bucks County. She graduated from Bryn Mawr College with a B.A. in Chemistry in 1999, but after working for Wyeth Labo-ratories she decided to join her family’s publishing company in 2003.

According to her campaign bio “she now owns and manages all of the pub-lishing company’s operations including magazine publishing, graphic design, and website development,” something that’s evident from her glossy site and professional profile photos.

“Shaughnessy’s perspective as a small business owner and a scientist will bring a totally unique and much-needed fresh approach to Washington D.C.” it says.

Ms. Naughton filed her statement of candidacy with the Federal Elections Commission on May 1, according to Chris Brennan of PhillyClout who first reported her candidacy.

This announcement comes just a week after another Democratic candidate running against Rep. Fitzpatrick, Kevin Strouse, was named one of the DCCC’s “Jumpstart” candidates. This designation signals that the Democratic organization believes Mr. Strouse, a Iraq War vet and former CIA o"cer, is a top recruit and will receive its early support.

Perhaps the biggest question raised then by Ms. Naughton’s announcement is whether the DCCC will continue to aide Mr. Strouse or back away and let a primary play out first.

Keegan Gibson contributed to this report.

This article was originally pub-lished on PoliticsPa.com.


Steadily, but almost quietly, Philadelphia has become a hotspot for entrepreneurs. The combination of great ideas, available capital and a welcoming environment have set the stage to make 2013 a breakout year for innovation and new businesses.

To Learn More ...For more information on sponsorship opportunities or to suggest story ideas, call our main office at 610-940-1656.The web: RegionsBusiness.comFacebook: Facebook.com/regionsbusinessTwitter: @RegionsBusiness

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2013: YEAR OF THE INNOVATOR

Economy, Costs and Culture Driving Young Startups

BY ANDREW EISER

In response to a lackluster economy, more university students are turning toward

entrepreneurial endeavors, creat-ing their own businesses and, in turn, careers they can continue after graduation.

The experience of creating one’s own job just may be a defining act for a new Lost Generation, created not entirely by war but by seismic shifts in the American economy across industries.

If you graduated college near the depths of the Great Reces-sion around 2009 and likely for some years to come, the idea of entrepreneurship, particularly the novel vehicle of technology, is likely becoming an increasingly viable employment direction.

Unemployment among the young, declining costs for launching a ven-ture and high profile startup culture is changing the field for young tal-ent. A neat example of this change are the cofounders of Center City business analytics shop RJMetrics.

Bob Moore and Jake Stein gradu-ated in 2006 from prestigious Ivy League schools — Princeton and Wharton respectively — and began careers in investment banking, as had been the norm for people of their skills and backgrounds for decades.

Then something changed. Lehm-an Brothers went under, and the

prestige of Wall Street has crumbled. Like thousands of their peers, the pair traded in their suits for jeans and launched a business venture of their own.

Deborah Diamond, president of regional retention nonprofit Campus Philly, said students are realizing they need to have an entre-preneur’s state of mind, constantly thinking about what they can bring to the table, in order to be successful during a time when the concept of permanent employment and retire-ment is foreign.

That’s why Campus Philly and Ms. Diamond have taken an inter-est in the technology community in Philadelphia, which is largely driv-ing entrepreneurship dialogue.

For example, with the Campus Philly Tech Crawl, Ms. Diamond said students have a chance to see the burgeoning startup community, helping to push the trend along. And with a generation heavily influenced by technology, Ms. Dia-mond said students have the tools to become founders of their own businesses.

It’s playing out in the region’s universities:

The University of Pennsyl-vania launches a minor in “engineering entrepreneur-ship”Undergraduate and venture-focused PennApps becomes one of the world’s largest annual hackathons

Drexel University unveils its entrepreneurship minor and $12.5 million soon-to-launch entrepreneurship schoolTemple University‘s Fox School of Business has grown its own entrepreneur-ship focus and promoted its buzzy cross-department, youth-focused Urban Apps and Maps StudioThe University of the Arts has its Music Business, Entre-preneurship and Technology curriculumAfter 12 years, the Wharton VIP program has seen grow-ing interestA pack of undergraduates launched nvigor, meant to plant the seeds of local tech-nology and entrepreneurship opportunities across regional campusesFirst Round Capital launches the Dorm Room Fund to get early access

The message is clear: for many disciplines, a college degree is no longer a guaranteed ticket to employment, so the focus is to get students out into the world to find new paths.

The declining costs of launching a venture and the employment situ-ation has all but made that trend a certainty.

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

RJ METRICS


Steak Shop’s Name Change Draws Ire, Praise

BY BRANDON BAKER

Fifty-one-year-old Joe Groh has endured

quite a barrage of insults since changing the name of Chink’s Steaks Shop to Joe’s Steaks & Soda Shop in April.

But for a man with Mr. Groh’s thick skin, “sticks and stones” might be an apt description for how he’s taken the insults.

“This older woman who had been coming here for 40 years came right up to me [after the name change] and said, ‘Joe, you make me sick. The sandwich is great, but you make me sick.’ And I said, ‘I’m sorry?’ But I knew what she meant,” Mr. Groh said. “This was just the right thing to do.”

Mr. Groh’s steak shop, located at 6030 Torresdale Ave., has been a Philadelphia cheesesteak staple since it opened in 1949 under the management of Samuel “Chink” Sherman. Mr. Groh, who worked at the shop “peeling onions and mopping fl oors” as a 16-year-old in 1979, bought the shop from Mr. Sherman’s wife Mildred in January 1999.

Mr. Groh said he felt a slight burn from the negative feedback he initially received after changing the name.

“It kind of hurts when people want to rip you right to your face. But after a while I just had to stop reading it. ‘Sell-out -- #Joe,’ they’d write,” Mr. Groh said.

But that’s not to say all of his customers have respond-ed so negatively to the change of name, which was initi-ated after more than a decade of public outcry regard-ing the perceived racial insensitivity of the name. That’s also not to say that it has negatively impacted business.

“It surprised me, older customers who have been com-ing here since before even I was born, they’ve been very nice about it. ‘Congratulations Joe, you’ve been here a long time. You earned it.’ And then there are other people who are so pissed o! , that they’re not coming anymore,” Mr. Groh said. “But once the hoopla went away, we didn’t drop. We’re right back to where we were before, every week.”

Though the shop’s name has changed, its o! erings have remained the same — something Mr. Groh takes pride in. From the old-fashioned booths to the soda fountain, Joe’s — “Chink’s” — remains primed for nos-talgia.

“Everything from the 1950s, we still have,” Mr. Groh said. “Walking in here, it’s like stepping back in time.”


MEETUP CALENDAR

Philly B2B Breakfast Power HourTime: 7:45 to 9 a.m.Date: Friday, May 24Place: Le Pain Quotidien, 1425 Walnut Street, Philadelphia, Pa. Cost: $10

“Come out and join the Philly B2B Breakfast Power Hour in the Center City of Philadelphia as we launch our new Business before Breakfast meetings. The meetings are designed to help all types of area business professionals meet other professionals to exchange information and warm leads to assist in growing their businesses.”

TechBreakfastTime: 8 a.m.Date: Thursday, May 30Place: Behrakis Grand Hall, Drexel University, 3210 Chestnut Street, Philadelphia, Pa. Cost: Free

“Interact with your peers in a monthly morning breakfast meetup. At this monthly breakfast get-together techies, developers, designers, and entrepreneurs share, learn from their peers through show and tell / show-case style presentations.”

Bootstrappers BreakfastTime: 8 a.m.Date: Tuesday, May 28Place: Elephant & Castle, 1800 Market Street, Philadelphia, Pa.Cost: $5

At a Bootstrappers Breakfast® we have serious conversations about growing a business based on internal cashflow and organic profit.”

MEETUP.COM

EEB Hub’s Navy Yard Headquarters Is Next Step Of Long-Term Vision

BY JULIANA REYES

The Energy Efficient Buildings (EEB) Hub broke ground on Building 661, slated to be its new headquarters, late last month, The Philadelphia Inquirer fi rst reported. The 36,500 square foot space has been vacant for nearly two decades.

The five-year, federally-funded $129 million research initiative run by Penn State has been operating out of Building 101, adjacent to the headquarters of Benjamin Frank-lin Technology Partners and several investment funds.

The EEB Hub is focused on devel-oping ways to make buildings more energy e" cient. It’ll use its new head-quarters as a “living laboratory” for its work. The EEB Hub’s new head-quarters will be fi nished next April, said Laurie Actman, the EEB Hub’s deputy director. It’s one part of the e! ort’s long-term vision: even after

the fi ve-year grant runs out, Ms. Act-man said the hope is that EEB Hub will continue its research.

“We intend to be a permanent part of the Navy Yard,” she said in an inter-view with Technically Philly earlier this year.

The EEB Hub will focus on long-term planning this fall, Ms. Actman said.

The Hub is an integral part of the growing technology community at the Navy Yard, a place that Ms. Actman hopes will be ”the premiere place in the country for any company who’s innovating in the building technology space.”

One part of this push is the Hub Commercialization Center, a business incubator for clean tech companies that the Hub is running with Benja-min Franklin Technology Partners.

This article was originally pub-lished by Technical.ly Philly at TPhilly.com


Taking ‘Going Green’ On The Road Via Food Truck

Business: Farm TruckFounders:

Eliot Coven and Kris PepperContact:

[email protected]

BY BRANDON BAKER

Farm Truck founders and Phila-delphia University graduates Eliot Coven and Kris Pepper take “going green” to a whole new level — strato-sphere, even.

The food truck, which can most often be found parked at Drexel University or the University of Pennsylvania, uses locally-sourced ingredients from Common Market and Weavers Way co-op to prepare its seasonal dishes — including a strawberry and bacon sandwich on the way for the summer months.

Food is served in recyclable and bio-degradable food containers, with a mobile farmers’ market planned to usher in the change of seasons.

But maintaining their business hook of locally-grown food isn’t always as easy as plucking a tomato from their garden.

“It’s always a struggle [to use locally-sourced foods],” Mr. Coven said. “A lot of the time it’s easier to get stu! from Mexico than it is to get stu! in your backyard.”

Mr. Coven makes the most of his quality-over-quantity approach to business, and further attributes the steady stream of business since its inception three months ago to a food-truck know-how and a unique ability to relocate when business gets slow. He also noted the advan-tages to parking in University City, as opposed to being stationed next to the notoriously prosperous Tem-ple University food trucks.

“Temple is an interesting place, because it has so many established food trucks there already that it’s hard to get a parking spot. It’s a nightmare — there’s so many trucks opening and so many new ones opening every day that parking is one of the biggest issues,” Mr. Coven said. “But opening a food truck, we can seek out our demographic, as opposed to waiting for them to come to us.”

In the long-term, Mr. Coven and Mr. Pepper hope to be able to make ambitious changes to their truck’s operations — whether through boot-strapped success or through funding.

“We’re a food truck, but we don’t want to be 80 years old and moving and grilling chicken,” Mr. Coven said. “We want to be constantly moving the business, whether it’s a franchise or a brick-and-mortar restaurant. We’re always looking for new things to do with the truck.”


Eliot Cover and Kris Pepper, Philadelphia University alumni and founders of Farm Truck are taking locally-sourced food on the road in Philadelphia. SUBMITTED

CAPITAL SEEKERS


In Their Words: Benjamin’s Desk Continues Startup GrindTwo weeks after our successful kick-o! to

Startup Grind Philadelphia, we are gearing up for the next event in the series.

The event held May 1 with Wayne Kimmel, founder and managing partner of venture capital firm Artists & Instigators, inspired a crowd of more than 50 Philly entrepreneurs that packed into our space to hear Wayne’s secrets to success. His enthusiasm for the city and the talent that is produced here was pal-pable and energized the crowd.

If you missed the inaugural event, you can check out the video at startupgrind.com/Philadelphia. Our next Startup Grind event will be held 6 to 9 p.m. June 5 with Gabriel Weinberg of DuckDuckGo, a search engine that allows users to search anonymously (it doesn’t track your personal information), but generates instant answers to your search.

Future speakers will include Alex Hillman, founder of fellow co-working space Indy Hall and Apu Gupta, CEO and co-founder of Pin-terest, Instagram Analytics and marketing tool Curalate.

The eighth floor of Benjamin’s Desk is

well underway and is scheduled to open July 1. Four private o"ces are being built out in addition to the three that are on the seventh floor. One o"ce on each floor is available, and are open to the public on a first come, first serve basis. If interested, contact us at [email protected]. The new space will also allow for more flexibility for the mobile nine-to-five workforce complete with flexible tables and chairs that can be easily moved and configured. A two-level desk bar for those co-workers who simply want to come in to ‘plug and play’ for an hour or two will be along one side of the space.

We’re also seeing many positive signs for co-working and Philly. We recently had visits from both Venture for America and IE Sin-gapore.

Venture for America is a global program for young and talented college graduates that has recently expanded to Philadelphia. The organization’s mission is to revitalize American cities and communities through entrepreneurship. Through their fellowship program, Venture for America trains gradu-

ates and sends them to startups where they spend two years growing those companies and learning the ins and outs of becoming entrepreneurs. We have extended our space at Benjamin’s Desk as a home base for the organization’s Fellows when they come to interview in Philadelphia.

IE Singapore is the Government of Singa-pore’s Trade Promotion Board, a division of the Singapore Ministry of Trade & Industry. IE Singapore is working on launching a pro-gram with Singapore-based tech start-ups who are interested in exploring the U.S. mar-ket. Our meeting with their marketing o"cer was both enlightening and inspiring. The Singaporean economy is booming in tech and other startups alike. We were honored that the agency reached out and met with us about potentially housing and helping to grow some of Singapore’s innovative tech companies and introducing them to the U.S. market. Hear-ing about organizations like these continues to drive us to make our space a collaborative, innovative and inspiring place for all entre-preneurs, both global and local.

DIARY OF A STARTUP

Philly co-working space Benjamin’s Desk contin-ues to expand beyond its o!ce walls, extending its influence to entrepreneurs across the region and, for that matter, the world.

In their words, Michael Maher and his team talk expansion, summer guest speakers and broadening the co-working base.


21REGIONSBUSINESS.COM23 MAY 2013 A&Q

WAYNE KIMMEL’S

The founder and managing partner of Artists & Instiga-

tors o! ers insight into who, not just what, makes for a worthwhile investment.

STRATEGY

What is the elevator pitch for your company, Artists & Instigators?

Artists & Instigators is a venture capital company that invests in amazing, next-generation, innovative ideas.

What types of companies do you typically look to invest in?

We always look to invest in amazing people and nice people. That’s one of our big things. It’s a very important thing for our business. We look to do any-thing and everything we can to help our companies and our CEOs be successful, and typically the kinds of companies that we invest in are very early stage businesses. Sometimes it could be two people and an idea.

Over the years, we’ve had a number of companies that have had successful exits and really amazing businesses. They’ve truly transformed the way con-sumers interact in di! erent industries, whether it was in the food industry or the weight loss industry or the health care industry. Now we’re changing the music industry, the gaming industry.

Why do you look to the creative industry when others look just at science, technology and math?

You can’t be successful if you’re not creative, and you can’t be successful if you’re not truly instigat-ing the market or trying to change something in a market.

To be a real market leader, you’ve got to do some-thing to change things. You’ve got to be amazingly creative. You have to be someone that’s looking at things di! erently.

I’m a big proponent in people that can look out and, quite frankly, see the future. We like to invest in people that see the future. Most companies that we invest in are companies that are looking to change the way people do things today.

What would it take to draw more investors to the Philadelphia region?

The natural resource that this region has is our young people, our smart, our energetic, our incred-ible young people. And if you’re an investor any-where around the world, you should be trying to tap into the amazing young people that are here in Philadelphia.

Our universities do an incredible job of recruiting the top young people from around the world and they bring them to Philadelphia every single year. I believe, and so does my good friend Josh Kopel-man at First Round Capital, that there is major tal-ent here in Philadelphia. As an investor, I think it would make sense to want to invest here, because the talent’s here.

Everything we do, the young people are the ones who know what’s next, because they are what’s next. They are the future leaders. They are our future CEOs. They are our future incredible creative people.

Read the full interview at RegionsBusiness.com.@WayneKimmel WayneKimmel.com

STARTUP


Philadelphia and its surrounding suburbs have seen a rise in both sales and sales price of homes. But while neighborhoods like Center City are booming, low-income markets continue to struggle

MARKET’S UNEVEN RETURN

STORY BY DEE ANN DIVIS | ILLUSTRATION BY DON LEE

The Philadelphia real estate market is bouncing back with some neighborhoods already showing the kind of vigor reminiscent of healthier economic times.

Homes across the region are selling, and they are selling more quickly and at higher prices than they were just a year ago — a trend that appears set to continue.

The recovery is uneven, however, with many hopeful sell-ers in both the least and the most a!uent neighborhoods waiting months, even years, for buyers to make an acceptable o"er. And now their prospects are being muddied by the Philadelphia City Council which is reformulating the taxes that drive the cost of living.

Given that most of the households mov-ing into Philadelphia are being drawn from the suburbs, the choices that law-makers make as they recast the tax code are likely to impact the housing market well beyond the city limits.

Many homebuyers, however, are not waiting see to what happens.

During the first quarter of the year they snapped up 7.8 percent more properties than they did in 2012, according to data provided by Prudential Fox & Roach, Realtors.

The region’s median home price for the


period was up as well, increasing 2.5 percent regionally to $189,500.

Fueling the surge is Philadelphia’s historic Center City whose revitalized core of storied streets, enticing eateries and beautiful townhomes is ringed by expanding bands of renovated neigh-borhoods and fresh construction.

“As the core downtown area has become relatively more expensive, a lot of younger households have moved just to the edge of the core area,” said Kevin Gillen, an economist specializing in real estate issues at the University of Pennsylvania’s Fels Institute of Govern-ment. “They’ve driven a lot of revital-ization and gentrifi cation in these older rowhome neighborhoods that touch Center City as well as spurring a lot of new construction.”

Among the new building projects are condo developments that initially failed during the downturn, said Steve Storti, senior vice president of marketing at

Prudential Fox & Roach. Builders are again picking up proj-

ects that had either been planned but did not get o! the ground or were started but not completed.

You are even “starting to see startups again,” Mr. Storti said.

Townhomes are featured in other developments such as Toll Brothers’ 2400 South gated community. Replac-ing what had been a parking garage, the complex includes 68 rowhouses at prices starting in the low $500,000s. An additional 60 condos will be com-pleted by the end of next year.

Most of those moving into the city are people that grew up in the suburbs, Mr. Gillen said.

“In particular, we have a lot of rela-tively affluent older baby boomers, empty-nesters moving to Center City, especially into relatively high-end luxury condos (around) Washington Square (and) Rittenhouse Square.

In the neighborhoods that ring Center City there are a lot of younger households moving in — singles, young couples, newlyweds and families with one or two kids, Mr. Gillen said.

“Ten years ago it was very rare to see people walking with a baby stroller in Center City. Now it’s just become incredibly commonplace,” he said. “If you go to Rittenhouse Square on a Sat-urday afternoon, it looks like it could be a day care center there’s so many little kids there playing.”

“Center City Philadelphia, really for the fi rst time since World War II, is starting to see an increase in popula-tion rather than a decrease in popula-tion because (people) were moving there for reasons other than work,” Mr. Storti said. “They’re moving there because they like the lifestyle there.”

The rest of the city has not fared as well with areas like North West Phila-delphia, Northeast Philadelphia and

South Philadelphia struggling with less desirable housing stock.

Homes in Center City have an aver-age sale price above $300,000 or $400,000, said Mr. Storti, while homes in these other neighborhoods often sell for less than $100,000.

“The pace of the recovery has been relatively uneven both across neighbor-hoods in the city as well as across di! er-ent parts of the metro-area,” Mr. Gillen told Region’s Business.

Indeed the region experienced an area-wide drop in prices between 2011 and 2012. The median price of a home in the city, for example, dipped from $129,900 in March 2011 to $127,500 in March 2012. It has now fully rebounded to $144,950 — an 11.6 percent change since 2011.

That same pattern is seen in nearby Bucks, Chester, Delaware and Mont-gomery counties. There was a drop from 2011 to 2012 and then a full or

PHOTO BYHRISTOPHER WOODS

TEN YEARS AGO IT WAS VERY RARE TO SEE PEOPLE WALKING WITH A BABY STROLLER IN CENTER CITY. NOW IT’S JUST BECOME INCREDIBLY COMMONPLACE. IF YOU GO TO RITTENHOUSE SQUARE ON A SATURDAY AFTERNOON, IT LOOKS LIKE IT COULD BE A DAY CARE CENTER.’—KEVIN GILLEN,

UNIVERSITY OF

PENNSYLVANIA ECONOMIST


nearly full recovery, according to the Pru-dential data.

Chester went from a median price of $$273,500 in March 2011 to $270,000 for the same month in 2012 then up to $286,000 this year — for an overall price growth of 4.6 percent. Delaware county gained 11.4 percent and Montgomery 2.4 percent. Bucks County was the exception. The median price there dropped 1.2 percent from March 2011 to 2013, though the last year did see it recovering somewhat from its 2012 level.

Mr. Storti suggested that a lack of new construction may have contributed to the drop in median prices. When developers are in the market o!ering new homes they “have the ability to price their product a little bit higher than the market,” which would bump up the median home price.

Another possibility is a now-ending wave of foreclosures, said Daren Blomquist, vice president of the foreclosure-tracking firm RealtyTrac.

Pennsylvania has what is known as a judicial foreclosure process, which delays the processing of foreclosures by some 15 months, Mr. Blomquist explained.

“We saw a lot of foreclosures delayed in

2011, even late 2010, and early 2012 — and now finally some of those delayed foreclo-sures are coming through the pipeline,” Mr. Blomquist told Region’s Business. “We expected that to happen at some point, and certainly it is bearing out to be happening in Philadelphia.”

As of April there were nearly 1,200 fore-closures in Philadelphia and roughly 300 to 400 in Bucks, Delaware and Montgomery counties. Though Chester County had less than 100, like the other jurisdictions, it had more than it did in April 2012.

Would-be homeowners should not be terribly concerned, however, said Mr. Blomquist.

“I would suspect that probably the sec-ond half of this year will see the foreclosure numbers turn lower in Philadelphia,” he said. “We’ve now had a trend of nearly a year and a half where the lenders and servicers have been playing catch-up on foreclosures. So I think we’re getting close to them being caught up.”

Once that happens, Mr. Blomquist said he expects prices to rise 5 to 10 percent.

That could be disappointing news for real estate investors who, Mr. Blomquist said, had shifted their buying to Philadelphia

when prices rose in previously bargain-priced neighborhoods in California and Ari-zona. Those buying houses to rent have been making a solid return of around 6 percent Mr. Blomquist said.

Sales records indicate that real estate “flip-pers” have done well too. Though it is hard to know what their costs and net profits are, the average gross profit for a flipped house in Philadelphia is $59,000, Mr. Blomquist said.

With foreclosures winding down and bar-gains still available, it looks like a good time to buy, said Mr. Blomquist.

“In fact, compared to other markets that have already passed the bottom and are on the way up, [the Philadelphia area] may be a better place for [buyers] who are willing to stomach a little bit more risk.”

Mr. Blomquist is not the only person who senses opportunity in the air. The supply of houses for sale is shrinking across the region and the time it takes to sell a house is drop-ping as well — signs that the market is start-ing to favor sellers, Mr. Storti suggested.

A market is generally considered to be balanced between home sellers and buyers when there is a six-month supply of for-sale homes. There were between 8.1 and 9.7 months of inventory available in the city and

REAL ESTATE

Region’s Most Sought-After Neighborhoods

PhiladelphiaCenter City and the immediately surrounding neighborhoods

Bucks CountyDoylestown (county seat)YardleyNew HopeNewtown

Chester CountyWest Chester (county seat)Chester Springs ExtonMalvernPaoli

Delaware CountyMedia (county seat)Chester HeightsHavertownNewtown Square

Montgomery County:Along the rail ‘Main Line’ ArdmoreBala CynwydBryn MawrGladwyneHaverford

Elsewhere In Montgomery CountyBlue Bell Skippack STEVE STORTI,

PRUDENTIAL FOX & ROACH

Rendering of a kitchen in Toll Brothers’ 2400 South SUBMITTED


its four neighboring Pennsylvania coun-ties in March 2011 — a supply that has now plunged by more than 50 percent in Chester County and almost as dramati-cally in the other jurisdictions.

As of March of this year Philadelphia had a 5.7 months supply (down 36.7 percent from 2011), Bucks had 5 months (down 42.5 percent), Chester had 4.5 months (down 52.6 percent), Delaware had 5.8 months (down 40.2 percent) and Montgomery had 4.7 months (down 42.0 percent).

Despite the tightening of the market it still takes, on average, more than three months to sell a house. The key phrase is “on average.” Some half a dozen real estate agents told Region’s Business that some properties, especially in the highly competitive mid-price range are selling very quickly indeed — and increasingly with multiple o! ers.

“The most activity,” Mr. Storti said, “is between $150,000 and $350,000,” with the average sale price falling in the $200,000s.”

The median price in Delaware County in March was $200,500 — Montgom-ery saw $242,250, Bucks $254,000 and Chester $286,000.

But it’s not just about the price. Dela-ware County, for example o! ers some-thing more than less expensive housing — it o! ers style choices. While most of the housing stock in the Philadelphia region are two-story colonials, experts said, Delaware County has Victorians, contemporaries, Colonial homes, two-stories and even Cape Cods.

“Just about any type of style of home you might be looking for, you can fi nd in Delaware County,” said Noelle Barbone, an associate broker with Weichert Real-tors.

Homebuyers can also choose between larger, more private homes and those enclaves that o! er the conveniences and social connections of more urban neighborhoods. The experts agreed that the latter is increasingly popular.

“What is selling well are properties in walkable, relatively dense mixed-use town centers, said Mr. Gillen. “You held your value much better (in these neigh-borhoods) than if you were in a single-family detached home in a traditional suburban, auto-oriented development.”

Though condos would likely appeal to many suburban buyers the number of condo developments outside of the city is limited, said Mr. Storti.

Many historic communities, especial-ly along the rail line, he said — where

condos would make particular sense — have resisted efforts to increase density.

Buyers are also unlikely to see very large developments. Open land for new communities is scarce, even in the counties. Most new construction is single-family houses but in develop-ments having a maximum of 100 to 200 units.

Though the choices are shrinking and prices rising, buyers are not clos-ing their checkbooks. In addition to the bidding wars at the lower end of the market, would-be homeowners are snapping up properties priced at $1 million and above.

“The demand up to $1.2 million is very strong,” said Robin Gordon, a

Realtor who is also with Prudential Fox & Roach. The demand drops o! quickly, however, as the price goes up. “To sell a home priced above $1.2 mil-lion you have to be picture perfect.”

In fact, she said, there were no prop-erties priced over $3 million sold along the Main Line in 2012.

Part of the issue is that the pool of a" uent buyers for these properties has always been small, which means it can take years to sell a very expensive home. As a result some of the prices at the upper end of the market are com-ing down, said Mr. Gillen.

“We’re seeing defi nitely very high volume of $1 million-plus home sales,” he said. “Whether or not they would have been $2 million 10 years ago may

be a di! erent story.” What happens to the market as a

whole over the next 10 years may also be a di! erent story — a story that is unfolding now in the Philadelphia City Council.

Center City owes its revitalization in part to a decision some 10 years ago to grant a 10-year tax abatement on all real estate improvements.

As the new convention center drew people and businesses to Center City, developers began rehabbing some of the beautiful historic houses at the city’s core.

Those who bought those properties were able to forego paying taxes on the value of those improvements — even if the “improvement” was a completely

2400 South SUBMITTED

WE’RE SEEING DEFINITELY A VERY HIGH VOLUME OF $1 MILLION-PLUS HOME SALES. WHETHER OR NOT THEY WOULD HAVE BEEN $2 MILLION 10 YEARS AGO MAY BE ANOTHER STORY.’—KEVIN GALLEN,

UNIVERSITY OF

PENNSYLVANIA ECONOMIST


new house built to replace a thread-bare residence. This did not always sit well with neighbors who did with-out updated amenities while paying higher taxes. It did not help that the city’s tax assessments also had been wildly inconsistent for years.

Now the city is normalizing tax assessments and reconsidering the abatement. Councilmember W. Wil-son Goode, Jr. has proposed to both limit the abatement to five years and shave its value by 20 percent each year.

“I’ve always viewed this initiative as part of a perspective on compre-hensive tax reform, said Mr. Goode.

He said the plan is to cut business and wage taxes by over $320 million, “In addition to that I believe we may consider other construction cost sub-sidies that would be spread across all taxes as opposed to singling out the property tax to use as the only incen-tive,” Mr. Goode said.

Research is underway, he said, on capping the abatement or creating a two-tiered approach where there would be a five-year abatement in areas that don’t need it as much and a 15-year abatement in areas that needed it more.

Builders and realtors are alarmed by some of the proposed changes.

“If you look at the success every-body’s had on the real estate market over the last 10 years, I think a lot of that can be drawn back to the tax abatement,” said Brian Emmons, vice president of the Philadelphia division of Toll Brothers. “Philadelphia his-torically has one of the highest costs of construction in the country and the abatement attracts developers who know they can o!er that abate-ment as an incentive to their buy-ers to purchase a house where they might not otherwise be considering it because the cost of living.

“Losing the tax abatement would be a huge loss not only for Toll Broth-ers, but for all the developers and the city.”

Reconsidering the tax abatement is really not based upon whether or not it’s been successful, Mr. Goode said.

“Where it has been successful, it perhaps it is not needed,” he said. “Where it has not been successful perhaps some other incentive is needed.”

Dee Ann Davis is a freelance writer living in Virginia.

Old Kensington Brewery Gets Crowdfunded Makeover

BY BROOKE HOFFMAN

Saint Benjamin Brewing Company is quickly becoming a reality for home brewer Tim Patton.

It took about a year to discover the perfect spot and get the ball rolling on construction, but things are now moving along, and with the help of Lucky Ant, the classic face of the brewery’s home in Old Kensington will soon be restored.

Mr. Patton’s goal was to find a build-ing with the feeling of breweries like the Brooklyn Brewing Company.

“It has this really amazing Old World vibe that you kind of get when you see pictures of breweries in Belgium or Eng-land. That was the look I wanted; that was the feel I wanted to have when I walked into my building. I didn’t want them to see cinderblock walls and a metal brew frame like you see in a lot of modern buildings.”

His warehouse at 1710 N. 5th Street evokes the exact style he was looking for

— the building dates to the 1880s and was even owned by a brewery.

According to Mr. Patton’s research, the Theodore Finkenauer Brewery, a fully operational brewery until the late 1800s, originally used the building as a stable.

The second floor is a foot-thick con-crete slab and there are 18-inch steel beams every four and a half feet, which safely permits the brewery equipment to be on the second floor without having to enhance the structure’s strength.

Once the brewery gets going, Mr. Pat-ton plans to add a pub or taproom.

He will keep some aspects of the general building design in the pub, like the exposed brick walls, but intends to incorporate more “Ben Frankliny” things, such as the library or the print-ing press, into the pub’s decor.

Overall, he is trying to recreate as much of the building’s original look from photos — especially the exterior.

Nate Echeverria, the co-founder of Lucky Ant, connected with Pat-ton through FINANTA, a Northern Liberties-based micro-lender which suggested the pair meet up to explore the project’s possibilities.

Lucky Ant is a crowdfunding website that focuses on helping small busi-nesses build campaigns to raise capital by reaching out to the community. In exchange for contributing to the cam-paign, supporters receive discounts, rewards, or o!ers.

“This idea [the company] was born from the realization that small busi-nesses all over the country are having a very di"cult time accessing capital. When a small business like a yoga studio, nanobrewer, etc. approaches a bank, they are often denied a loan or the minimum loan size is too large for their needs.

“We sort of flip the equation around and help these small businesses raise capital directly from their customers and community, hence removing the financial intermediary (i.e. bank) from the equation,” explained Mr. Echever-ria.

Saint Benjamin Brewery Company was an ideal project for Lucky Ant because it “had a real demonstrable community impact (historic preserva-tion and creating a community ame-nity) and was a cool business that could o!er compelling/unique rewards.”

Mr. Patton successfully raised the

$20,000 he sought to begin restoration work through Lucky Ant, surpassing his goal by $1,175.

The funds will go towards remodeling the doors, adding lighting, and erecting signage, along with restoring the three-floor frontage.

“We want to be able to showcase how cool this old building looks and how cool it would look if all of these scars had been removed that had been put on over the years,” said Mr. Patton.

Lucky Ant devised a marketing plan that included gifts such as pint glasses, growlers, and tickets to an exclusive event to be held once the brewery is open.

If you are interested in checking out the Saint Benjamin Brewery or just sampling the brew, Mr. Patton will be participating in Philly Beer week.

You can find him at the Opening Tap event on Friday, May 31, at the Indepen-dence Visitor Center.

Then on Sunday, June 2, Patton will be leading a bike ride from Benjamin Franklin’s home to the new brewery.

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


With the Supreme Court set to rule on two landmark cases a!ecting the marriage rights of same-sex couples, this tax season requires especially careful planning for the LGBT community.

In March, the Supreme Court heard oral arguments on two high profile cases in the current battle over marriage equality in this country. The Windsor case deals with the Federal laws prohibiting marriage equal-ity while the Hollingsworth case takes on California’s state regulations.

The Court’s decisions are expected by late June and the legal, tax and financial implications could be tremendous.

The CasesUnited States v. Windsor is the case which

challenges the Federal Defense of Marriage Act (DOMA). After spending 40 years together as an engaged couple in a commit-ted relationship, Spyer passed away in 2009 leaving her entire estate to Windsor. Since federal law did not recognize their marriage, Spyer’s estate was subject to $363,053 in estate taxes.

In response to the staggering tax bill, Spyer’s estate brought a claim against the government, alleging that the provisions of Section 3 of the DOMA violated the equal protection clause of the U.S. Constitution. Section 3 of DOMA defines “marriage” under federal law as a legal union between one man and one woman..

Hollingsworth v. Perry is a case that challenges California’s Proposition 8. The Hollingsworth case focuses on whether Proposition 8, which amended the state constitution to define marriage as solely between a man and a woman, violates the equal protection clause of the Constitution.

The Impact of the Court’s DecisionShould the Supreme Court rule that

same-sex couples who are legally married for state purposes are entitled to equal tax treatment under federal law, same-sex married couples would be entitled to the same income and estate tax benefits as opposite-sex married couples. These same-sex couples may also be permitted to file amended federal estate and income tax returns.

Additionally, if the Court rules that DOMA is unconstitutional, this means it is void “ab-initio” or invalid from its inception. Those clients who have timely filed protec-tive claims for refunds may seek a refund of taxes paid as a result of DOMA, going back

further than the typical three-year statute of limitations.

While the Windsor case centers on the federal estate tax implications of DOMA, the Supreme Court’s decision in the matter could have much broader implications for same-sex couples since there are a number of other tax provisions which benefit mar-ried opposite-sex couples.

Specifically, same-sex married couples could begin to enjoy elections such as the federal gift tax martial exclusion, portability of federal estate tax exemption amounts, the ability (and possible tax benefits) of filing joint income tax returns, no taxation on the benefits received through a spouse’s health insurance plan, social security benefits, Family Medical Leave Act, and spousal ben-eficiary and rollover elections for qualified retirement accounts, to name a few.

Steps to Take With respect to prior filings, same-sex

married couples should meet with a tax pro-fessional to discuss possibly filing protective claims with the IRS.

Upon careful examination of each client’s set of circumstances, an advisor can determine whether a refund could be due or whether the couple has actually benefitted from filing opportunities not available to opposite-sex married couples.

For example, under current law, one part-ner in a married same-sex couple may file as

“single” while the other partner may file as “head of household,” whereas an opposite-sex couple would have no such ability.

The result could be that the same-sex married couple is enjoying an overall lower income tax liability than if they had been filing as a married couple. In this instance it would be wise for the same-sex couple to elect not to amend prior income tax returns, and a protective claim may not be necessary.

Nonetheless, filing a protective claim for estate taxes owed as the result of a death of a same-sex spouse while DOMA is in e!ect could still prove prudent.

With respect to the filing of 2012 income tax returns, same-sex couples should also determine whether or not they benefit from the current tax elections available to them.

If it is the case that a same-sex married couple has a lower tax liability filing “single” than they would if they were filing as “mar-ried” then the couple should be sure to file their 2012 income tax returns prior to the Court’s decision.

If DOMA is struck down in June, same-sex couples may no longer have the options of filing “single.”

Conversely, if a same-sex married couple’s financial circumstances are such that the couple would benefit from electing “mar-ried” on their 2012 income tax returns, then that a couple would be well advised to go on extension in the hope that DOMA is truck down in June.

Christine Finn is senior manager of Marcum LLP in New York.

CONTRIBUTE


Tax Strategies Amid Supreme Court DecisionOPINION

Cathy Green, CPA, MAcc is senior manager of Marcum LLP in Bala Cynwyd.


REGION’S BUSINESSA JOURNAL OF BUSINESS AND POLITICS

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EDITORIAL BOARD

CEO and President James D. McDonaldEditorial Director Karl SmithAssociate Editor Terrence Casey

HOW TO CONTRIBUTE

To contribute, send comments, letters and essays to [email protected]. Opinions expressed by guest writers do not necessarily reflect those of Region’s Business. We reserve the right to edit all submissions for content, style and length.

Pension ‘Fix’ Will Be CostlyOnce the current pension plans are closed and new employees are enrolled in individual accounts, those left in the pension plans will age and retire as a group. Investment managers will have to shift to more conservative and lower-return investments to be able to pay out benefits as they come due.When investment returns pay for less of existing pension commitments, taxpayers will have to pay more. The office of Pennsylvania Treasurer Rob McCord estimates that the governor’s plan will increase the state’s pension debt by $25 billion by 2046.

STEPHEN HERZENBERG ON INQUIRER.COM,

20 MAY 2013

Obama Administration Undermines Public TrustPresident Obama has a lot of explaining to do. Americans learned this week that his administration took extraordinarily invasive and unjustified measures against organizations exercising their First Amendment rights....During his four-plus years in office, President Obama has talked of restoring citizens’ faith in their government as a force for good. This week’s revelations reinforce those who contend the federal government is an intrusive, expensive, out-of-control behemoth that must be scaled back.It will take all of the president’s persuasive powers to convince American citizens that this week’s disturbing developments are aberrations and that their federal government, which he runs, deserves their trust.

PATRIOT-NEWS EDITORIAL,

15 MAY 2013

Democrats Looking To Unseat Rep. FitzpatrickLooking far ahead doesn’t just happen in presidential politics. With exactly one year to the date before the May 20, 2014, Pennsylvania Primary, two candidates have emerged with the singular purpose of taking on and defeating Fitzpatrick and returning the 8th District seat to the Democratic column

for the first time since 2010.The 8th District also looms large in the national Democratic Party’s plans to regain a majority in the House of Representatives and give President Obama a full Congress he can work with (assuming the Democrats hold the majority in the Senate). It will be an uphill battle, just as it was last year when Democrat Kathy Boockvar went head to head with Fitzpatrick. The well-publicized campaign was hotly contested. The election itself was not, with Fitzpatrick scoring a comfortable victory.It won’t be any easier for the Democrats next year, since redistricting has made the 8th District “safer” for Republicans.Ready to do battle against Fitzpatrick nevertheless are at least two candidates: Kevin Strouse, a former CIA official and combat veteran who served in Iraq and Afghanistan, and Shaughnessy Naughton, a scientist and small-business owner.

PHILLYBURBS.COM EDITORIAL,

20 MAY 2013

Pension Crisis Requires Action Right NowCorbett wants to get all future employees out of the costly current defined benefit plans and into defined contribution plans such as 401ks that so many of the private sector use. No one is arguing that. But the governor also is looking to reduce the state contributions over the next several years. That seems to ignore the fact that it was the governor’s office — albeit not his — and the Legislature and their decision to increase benefits that caused this problem in the first place.We would suggest rolling back the pension multiplier to where it was, something not likely to happen since it’s the Legislature that would have to vote on cutting their own pensions. Besides the state Legislature, also standing in the way are public employee and teacher unions, and courts who, respectively, are reluctant to take action, prepared to fight and expected to declare illegal some of the pension reform Corbett is proposing.

DELCOTIMES.COM EDITORIAL,

20 MAY 2013

COMMENTARY FROM ACROSS THE WEB

One of the largest school walkouts in Philadelphia history is happening right now. @OCCUPYPHILLY

29

@mheaddPumped to be at @musichackday in #Philly at @excitecenter - lots of awesome stuff happening.

18 MAY 2013

@andersonatlargeS/o to @mheadd, lead developer for @PhillyJazzApp. We’re telling the story of #Phily’s jazz legacy. #musichhackday

18 MAY 2013

@JohnLMicekJoe Sestak will challenge Pat Toomey in 2016. Longest Senate campaign ever.

14 MAY 2013

@SmartPoliticsSestak vs Toomey in 2016 would be 1st US Senate rematch among major party candidates in PA history

15 MAY 2013

@TechnicallyPHL“We intend to be a permanent part of the Navy Yard” - @PhilaEnergyGal on the EEB Hub & its new HQ

17 MAY 2013

@GtownWOLaneYour next debaucherous night of drinking and smoking might help the School District close its budget gap

15 MAY 2013

@VPVP delivers the 2013 commencement address today at the University of Pennsylvania. @Penn #PennCommence2013 (WH Photo)

13 MAY 2013

OPINION


BY THE NUMBERS

400,000Residents from Philadelphia

and the surrounding suburbs who plan on visiting

the Jersey Shore this summer

5.7MViewers who watched the series finale of The Office

last Thursday evening

14.78MViewers who watched the

season finale of The Big Bang Theory last Thursday

evening

600,000Jobs “created or supported”

by Apple, according to company estimates

800Apps downloaded from the

App Store every second

$7BApple’s estimated tax bill in

the 2013 fiscal year

12,238Sales of private residential

units in Philadelphia in 2012

29,146 Sales of private residential

units in Philadelphia in 2005, the highest in 10

years

2,175Building permits issued for new construction in

Philadelphia in 2012

947Permits issued in 2009

$1.18MMedian price of home sales in Center City —

West in 2012, the highest price in Philadelphia

70%Increase in median price

in Center City — West from 2010 to 2012

PEWTRUSTS.ORG

40%Airline passengers who

would rather have a stranger sleep on his or

her shoulder than pay for a carry-on bag, according to a

Harris poll

63%Airline passengers who

would rather sit next to a crying baby than a smelly

seatmate

29% Drivers who will travel

between 100 and 200 miles for Memorial Day, according

to TripAdvisor

56% Americans traveling for

Memorial Day weekend via car

86% Americans planning a summer trip in 2013

11% Vacationers who will travel

by train to their summer vacation this year

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SUNDAY, JUNE 2 Bicycling Open benefitting Cadence Cycling Foundation 7:15am

Women’s Pro Race 8:30am

Men’s Pro Race Noon

Stop by the Parx Casino Expo Tent for your chance to win exciting prizes! Located near the Start/Finish line on Lyceum Avenue by Pechin Street.

Region's Business May 23

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