Should Cunningham Have Taken Paid Appointment to Chinese Board?

Making the world better through plastic. 

Don Cunningham is CEO at Lehigh Valley Economic Development Corp. According to the company's 2014 nonprofit tax return, Cunningham's salary was $138,000. In that year, $2.3 of its $4.4 million in revenue came in the form of government grants. These include hotel taxes from Lehigh and Northampton County. LVEDC also administers a host of other government grants, like a $3.4 million sustainability grant awarded in 2011. It is, for all practical purposes, a public agency. So is it proper for Cunningham to accept $30,000 from some Chinese plastics company that he helped lure to the Lehigh Valley?

Interestingly, this news did not come from Cunningham or LVEDC. He was perfectly content to keep us in the dark. We only know because of a required disclosure from the Chinese company.

It's sad that disclosures from private foreign companies provide more transparency than a publicly funded agency.

Cunningham and LVED' lawyer deny there's any conflict of interest

I disagree. I like Don and believe he has done an excellent job at LVEDC. But quite obviously, his role there gives him all kinds of inside information about the community that is invaluable in the private sector. He can clue them in on major infrastructure projects, grant opportunities and taxing trends. It's totally improper for him to use his inside knowledge to benefit a Chinese company. But that's what he is being tempted to do.

That's the way things happen in China. It's not supposed to be the way they happen here, except for Allentown. The LVEDC Board should stop this.

Updated 11/23/16, 10:25 am:  When I published this story, I included a link to The Morning Call story in which it first appeared.  As another blogger who pays undue attention to who gets credit for what has observed, I did not break this story. I published this story because this is not a grey area of the law, as the article suggests. You either break the Ethics Act or you don't. What Cunningham did is completely legal. It's also completely wrong.

Cunningham: Manufacturing Alive and Well in Lehigh Valley

Whether Democrat or Republican, Northampton County Council has historically been a very harsh critic of the Lehigh Valley Economic Development Corporation (LVEDC). They have long complained that Northampton County is Lehigh's ugly stepsister, and is too often overlooked by LVEDC when it comes to economic development. LVEDC, which is funded with hotel tax dollars from both counties, has also been slammed over the years for its complete lack of transparency and secretiveness. Has Don Cunningham, Lehigh County's former Executive and Bethlehem's former Mayor, turned things around now that he is at the helm?  His nuts and bolts report to Council, full of details on job creation and retention here in Northampton County, is perhaps LVEDC's most effective explanation ever to Northampton County.

Cunningham explained that LVEDC  is the "regional marketing entity" funded by both counties and the largest employers within the Lehigh Valley. Much of what it does is designed to attract business to the Lehigh Valley without regard to where the business is going. The Valley has experienced significant growth, as evidenced by  a $35.4 billion GDP. This is larger than Vermont and 94 countries. Site Selection Magazine, which relies on hard empirical data, identifies the Lehigh Valley as the top performing area for economic development in the northeastern United States.

The Lehigh Valley is experiencing international growth. Out of 19 major projects last year, nine were international. . Northampton County's include Inditex (Spain), a clothing distributor located in Forks Tp; Defense and Aerospace contractor MBD - Safran (France), operating in Lower Nazareth; Primark Stores (Ireland), a clothing distributor in Bethlehem; Electronics company Ricoh (Japan), established in Hanover Tp;  and Norac, a French-based bakery coming to Forks Tp.

The food and beverage business is booming, claims Cunningham. "It started in the Macungies, but we've seen a significant movement of food processing into Northampton County. In fact, in the last 12-18 months, the pendulum of development in the Lehigh Valley has really swung towards Northampton County."

Cunningham said that, unlike 20-25 years ago, the local economy is much more diverse. "We no longer have all of our eggs in one basket." It is instead balanced over several sectors: Finance and real estate ($5.24B); Business services ($5.01B); Manufacturing ($4.95B); Education and health care ($4.84B); Retail ($2.2B); Transportation and warehousing ($1.61B); Information ($1.53B); and Arts and entertainment ($1.36B).

There are fewer jobs in manufacturing because of automation and technology, "but the reality is that the Lehigh Valley is the 60th largest market for manufacturing in the United States," even though the Lehigh valley is not the 60th largest population base in the country.

"We're swinging well above our weight class in manufacturing," he observed. He added that the typical manufacturer these days employs 20-75 people in 20,000-80,000 sq ft. The work is heavily automated, and is growing because of proximity to New York and Philadelphia, and lower cost of production.

"It's a misnomer than many people believe that manufacturing is somehow dead here. It's quite the opposite." Though the warehouse industry attracts headlines, manufacturing is three times larger.

"The old manufacturing was everyone go down to the Bethlehem Steel," said Seth Vaughn. Cunningham stressed that it is now important for people to attend vocational and technical schools. "We are nearly at full employment in the skilled occupations," he said. "These smaller manufacturers require a higher level of skill than when my father worked at Bethlehem Steel.... Today the shop floor is highly automated, highly technical."

Hayden Phillips remarked that many people confuse small manufacturers with warehouses because they see tractor trailers and loading docks.

Cunningham has heard Northampton County's complaints, and has also embarked on marketing very specific locations within the Lehigh Valley. He agrees that different regions within the Lehigh Valley have their own attractive assets. In Allentown, it would be the NIZ.  Bethlehem has two vibrant downtowns and has its own share of tax incentives. Easton is a river community that with a growing artist and restaurant scene. The slate belt has a large inventory of available commercial properties with fast and easy access to both Routes 33 and 80.

Cunningham has had brochures and sub-websites made up for each of these regions as well as Youtube videos highlighting the strengths of each specific community.along with the region as a whole.

He then ticked off some of the areas within the County that are experiencing job growth. South Bethlehem leads the field. Cunningham was Mayor in Bethlehem when the Steel company ceased operations. "If you would have told me 18 years ago that 80% of that land would be spoken for and re-used, I would have said you were crazy.," he remarked. But a former brownfield site is booming with job creation.

Zulily is an international e-commerce site, and its East coast operations are in Northampton County, along with 1,200 jobs. He also mentioned Curtis-Wright, which moved its operations into Bethlehem from New Jersey. REEB Millwork is a Lehigh Valley company that was persuaded to stay here after it outgrew its site in Fountain Hill. Tyber Medical is a start-up. "We helped fund their entry into the market in Northampton County," noted Cunningham.

In addition to the development in South Bethlehem, Cunningham pointed to expansions by C and S Wholesale Grocers (500 new jobs) and the retention of Guardian Life Insurance in Hanover Township (1,000 jobs retained)

LVEDC is also working on the redevelopment of brownfields like the Simon Silk Mill (Easton), Easton Public Market and GKEDC Industrial Park in Wind Gap.

Cunningham also highlighted the Fed Ex hub, which will be able to process 70,000 packages per hour and serve as a magnet for other retailers in the Lehigh Valley, seeking a means to quicker delivery.

Three hundred of the 800-acre Chrin site, located in the northern portion of Palmer Township, has been purchased. That is warehouse space, but the remaining 500 acres will go to manufacturing, office, hotels and other commercial uses.

Will an inland port in South Bethlehem lead to an explosion of warehouses? Cunningham noted that an inland port designation at the Norfolk-Southern terminal has yet to be decided. Something coming off a ship in Newark must first go by rail to an inland port near Carlisle, after which it is trucked back to the Lehigh Valley. Having an inland port designation in South Bethlehem would take those trucks off the road and would create more efficiency for local business.

Cunningham notes that several communities, including Binghamton in New York,are vying for an inland port designation. He added that e-commerce, which is growing 20% each year, will smile on the community that gets this designation.

LVEDC - Northampton County Presentation by BernieOHare

Cunningham Wows NorCo Council With LVEDC Presentation

LVEDC CEO Don Cunningham

Unfortunately, the details of this story have to wait until Monday. For now, I want you to know that Lehigh Valley Economic Development Director Don Cunningham hit a grand slam with a Northampton County Council that has historically been highly critical of LVEDC and its efforts at attracting business in Northampton County. It's a "good news" story, too.

For now, let me remind you of the common view that the only development going on right now are warehouses. Guess what? We're completely wrong. Manufacturing is alive and well, and represents a much greater percentage of business in the Lehigh Valley that big boxes. It's just no longer like the manufacturing we used to see in the days of the Bethlehem Steel. I'll report to you in detail on Monday.

Cunningham Fired at LVEDC

Photo taken by former LV Ramblings intern Peg Ferraro

After being caught fraternizing with a bottom-feeding blogger on Friday afternoon, LVEDC CEO Don Cunningham has been summarily terminated.

"We have standards, damn it!" explained Board member L. Charles Marcon. "We could put up with the Springsteen concerts, but this is too much."

In another emergency meeting, the National Museum of Industrial History, known as the NMIH and not to be confused with the NIMH (National Institute of Mental Health) has hired Cunningham at a salary of $5,000,000 per year.

"Let's see what Morganelli does now!" said Board spokesperson L. Charles Marcon.

Some idiots will actually believe this, but I couldn't resist.

Peg Ferraro actually did take that picture. But I fired her as my intern because I'm much more handsome than I appear in that picture. They say the camera adds ten pounds. "You must have eaten ten cameras," Cunningham told me.

I was sleeping soundly Friday morning when suddenly, the bottom-feeding blogger beacon began to shine from South Side Bethlehem. Governor Corbett was coming to town. Cunningham, Peg and a host of other big shots were there.

I hopped into my $500 Blogger-Mobile and made it. I was the only person there who hadn't shaved. ... Or showered.

The Governor's press person allowed me to remain even though I had no credentials except for the "Award Winning Broadcast Journalist" card I had a friend make up for me a few months ago. A state trooper with the Guv' was giving me the "I'll take you down to Chinatown" glare, and i don't blame him. But Corbett and the Sands CEO were cool as hell.

I'll have the straight story later today.

Lehigh Valley Wow?

Don Cunningham, CEO and President of the Lehigh Valley Economic Development Corp. (LVEDC) was at last Thursday's meeting of NorCo Council's economic development committee. I missed most of the presentation, but was there in time to hear them discuss their "Wow!" campaign to promote the Lehigh Valley and their creativity. Lehigh Valley Wow!

This reminds me of the Catholicism Wow! campaign waged by Cardinal Glick, played by George Carlin, in Dogma.

"Thank you, thank you, thank you. Now we all know how the majority and the media in this country view the Catholic church. They think of us as a passe, archaic institution. People find the Bible obtuse... even hokey. Now in an effort to disprove all that the church has appointed this year as a time of renewal... both of faith and of style. For example, the crucifix. While it has been a time honored symbol of our faith, Holy Mother Church has decided to retire this highly recognizable, yet wholly depressing image of our Lord crucified. Christ didn't come to Earth to give us the willies... He came to help us out. He was a booster. And it is with that take on our Lord in mind that we've come up with a new, more inspiring sigil. So it is with great pleasure that I present you with the first of many revamps the "Catholicism WOW. " campaign will unveil over the next year. I give you... The Buddy Christ. Now that's not the sanctioned term we're using for the symbol, just something we've been kicking around the office, but look at it. Doesn't it... pop? Buddy Christ..."

Cardinal Glick and the Catholicism Wow! campaign were eventually destroyed by an avenging angel played by Ben Affleck. So Don, check visitors for wings.

NorCo Council Grumbles Over LVEDC Firings

Last week I told you that three heavyweights at Lehigh Valley Economic Development Corp. have been let go. Pete Reinke, VP of Business Development; Jean Mateff, VP of Administration and Investor Relations; and Bob Bilheimer, Director of Business Expansion, have all been shown the door. As I suspected, Northampton County Council were less than enthusiastic at the news. They were especially upset at the termination of Reinke.

Council President John Cusick: "Say what you want about Pete, at least he came here. He always answered our calls."

Scott Parsons: "Pete was our contact person? Who is our contact person? Do we have one?"

Ken Kraft: "We should demand that Don Cunningham [he's the boss] come here and tell us what is going on."

Bob Werner had no pithy comments, but did have a very depressing observation as a result of all his bed-time reading. According to the Fourth Economy Index, Lehigh County is rated #7 among communities "ideally positioned to attract modern investment and managed economic growth." Despite being practically identical, both geographically and demographically, Northampton County is rated 167.

Something is obviously wrong.

Cunningham has been President and CEO of LVEDC for over a year, but has made no appearance at Northampton County Council. But in a statement to this blog last May, he pledged to "use all of my ability to work with everyone, whether they supported my selection or not, whether they are in the urban core of Allentown or the slate belt of Northampton County to find a way to get it done."

Heads Roll at LVEDC

Today is the last day on the job at Lehigh Valley Economic Development Corp. (LVEDC) for three of their top people.

These three heavyweights are Pete Reinke, VP of Business Development; Jean Mateff, VP of Administration and Investor Relations; and Bob Bilheimer, Director of Business Expansion. They got word on Tuesday. From what I've been able to piece together, CEO Don Cunningham thinks it's time for the organization to move in a different direction. I'm told the termination has nothing to do with any dissatisfaction with the job performance of affected employees. It might be an effort to cut costs or a desire by Cunningham to bring in his own people ... with a lower handicap.

Summer hours, you know.

In addition to these three highly ranked officials, at least other two staffers are departing as well. One is retiring and another is on her way to Ohio.

This sudden shake-up, which appears to have been handled poorly, does nothing to inspire confidence in the economic development arm of the Lehigh Valley. Funded in large part by hotel tax from both counties, there is increasing concern that the investment just isn't worth it.

Updated 1:30 PM: Cunningham Confirms Termination

Here's his statement:

Several of the people you may have been accustomed to working with at the Lehigh Valley Economic Development Corp. will be leaving the organization this week.

Jean Mateff, vice president of administration and investor relations, Pete Reinke, vice president of development, and Bob Bilheimer, director of business retention and expansion, will be leaving as part of a restructuring. The changes are part of a year-long analysis by me, president and chief executive officer, and the LVEDC Board to improve the strategy, structure and performance of the organization to better serve the marketing and economic development needs of the Lehigh Valley.

Each of these employees have considerable skills and experience and I’m confident that in the right role that they can be an asset to other organizations or companies in the Lehigh Valley or beyond.

Change is always difficult but it is a constant in life. Change is a critical part of continuous improvement. And, LVEDC still needs to improve. We have returned the organization to its core mission: to market the Lehigh Valley’s economic assets inside and outside the region and to be a one-stop shop working with a myriad of partners to help businesses to come here, grow here and to start here. But, more work remains.

We have instituted a new culture. A culture based on results not process, performance not public relations and strategy and accountability not just managing the “in-box.” It would be easier to embrace the status quo but, frankly, it’s not good enough to serve the Lehigh Valley.

LVEDC is not the story. The Lehigh Valley is the story. Economic development is the result of many partners working together from local, county and state governments to real estate brokers and developers to regional organizations to companies and entrepreneurs.

We are in a period of tremendous economic change across the world, the United States and our Lehigh Valley. The advent of lightning speed technology and the Internet has changed every aspect of the economy from our factory floors to the way we purchase consumer goods. It will continue to change the types of jobs the economy creates and the way companies do business. It continues to affect land use policies and job training needs here.

In the Lehigh Valley, we need to be more strategic, more focused, more regional and more aggressive to ensure that the economy of tomorrow here greatly exceeds the economic successes of our past. The economic world is not standing still. It changes every day, sometimes every hour. The Lehigh Valley needs an LVEDC that keeps pace with the economy that we are charged with developing and promoting here.

We have considerable talent in the Lehigh Valley both within LVEDC and outside in both the public and private sectors. In the coming weeks, we will be announcing some promotions and additions to our staff, all with a focus on getting the right people on the bus and putting them in the right seat.

I’m committed to making LVEDC the best regional economic development organization in Pennsylvania and the Northeastern U.S. I know that our Board of Directors expects nothing less, nor should our partners and the people of the Lehigh Valley.

Treehugger Kleiner Goes Corporate With LVEDC

Photo stolen from Michael Molovinsky

Not all that long ago, Andrew Kleiner was a blogger who spent all of his time in Allentown's parks, where he'd write about ponds and stuff. Michael Molovinsky and he used to have lengthy online discussions about riparian buffers and bog turtles. Well, Andrew has gone corporate baby. He's sold out to Lehigh Valley Economic Development Corp. as a part-time land recycling assistant of the Lehigh Valley Land Recycling Initiative.

The funny thing is he doesn't even golf.

All kidding aside, Andrew is a very nice and sincere young man and deserves this opportunity. It is a credit to LVEDC CEO Don Cunningham to have hired him. He was gonna' hire Michael Molovinsky, but I talked him out of it.

Andrew will now support outreach and marketing efforts for brownfield redevelopment and maintain files on contractors available for assessment and remediation projects and report progress on LVLRI initiatives to various committees.

Kleiner has most recently served as a field biologist for the Acopian Center for Ornithology at Muhlenberg College and as a senior laboratory researcher of environmental chemistry and toxicology for the departments of chemistry and environmental sciences at Muhlenberg College. His related experience includes an appointment to the City of Allentown Environmental Advisory Council and work as an environmental educator and community organizer in Allentown. He earned a Bachelor of Science degree in Environmental Science from Muhlenberg College and resides in Allentown.

LVLRI focuses on improving the economy and the environment by promoting the remediation of old industrial properties throughout the Lehigh Valley.

Is Cunningham Right For LVEDC?

Norco Exec John Stoffa voted against Don Cunningham. So did Norco Council member Peg Ferraro. So far as I know, these were the only two who voted against Cunningham as Lehigh Valley Economic Development Corporation(LVEDC)'s new head honcho. According to Stoffa, LVEDC needs a certified economic development professional. It's not a retirement home for politicians.

When retired politician Phil Mitman decided to step down as CEO, LVEDC Executive Committee Chair Don Bernhard pledged that Mitman's successor would be someone with "serious economic development credentials." He'd want to see a Certified Economic Developer certificate, experience in economic development and loyalty to the Lehigh Valley. "That is exactly what we are doing," Bernard told The Morning Call.

But Bernhard is a blowhard.

When push came to shove, insider politics won. Cunningham, whom I like, might turn out to be the best CEO that LVEDC has ever had. Lord knows, they could use some real leadership. But his selection is contrary to what was pledged.

I probably would have caved and voted for Don myself. He is that charismatic. But I see these three problems.

First, it is well known that Cunningham though Allentown's controversial NIZ was a bad idea. I had heard that from his closest stafers. But Cunningham was mysteriously absent on the day that LVEDC decided to give this funding scheme their endorsement. Then Allentown Mayor Ed Pawlowski, a Cunningham foe, gives him a ringing letter of endorsement. Then, after being selected as LVEDC's new top dog, Cunningham makes a statement supporting the NIZ. So it certainly appears that Cunningham sacrificed his principles to advance his own interests.

Second, he has no real private sector experience. How effective will he be in drawing private sector jobs to the Valley without massive doses of state incentives? State subsidies will harder and harder to come by in future Corbett budgets. So an inexperienced Cunningham will have to sell the Lehigh Valley largely on merit, not the bucks he can throw at a prospective employer. That's a tall task.

Finally, he is dealing with an unwieldy, stagnant and political board. It needs "at-large" members who are not political appointees, term limits for all and a thorough and competitive vetting process.

Updated 2 AM: Cunningham will be Alan Jennings' guest today on Lehigh Valley Discourse, 6 PM, WDIY (88.1 FM). (You can livestream it). Jennings is a NIZ Board member, and I wonder whether they'll break out the pom poms.

Updated 10:15 AM: Don Cunningham's Response: "There is much I could react to in this post. But, I’ve lived long enough to understand that deeds not words answers questions and respect is earned and not given.

"I only want to reassure the readers of these Ramblings that I am not heading off to the retirement home. To the contrary, I will bring a high-level of energy and engagement to make LVEDC a better and faster engine to market the Lehigh Valley and to work with everyone, public and private, to create jobs and opportunity and to grow our economic base. Our mission will be clear and focused. And we will be open and engaged. In the end, it’s about results. It’s not about how many meetings you do, how many conferences you attend or how many certificates are on your wall. I will use all of my ability to work with everyone, whether they supported my selection or not, whether they are in the urban core of Allentown or the slate belt of Northampton County to find a way to get it done. The premise upon which LVEDC was created is a good one. The Lehigh Valley is stronger in marketing itself and creating jobs and opportunity as a region than we are as component parts."

LVEDC's New Top Dawg - Don Cunningham

Lehigh Valley Economic Development Corporation (LVEDC), the area's publicly-funded and beleagured  economic development agency, has been operating without a CEO. Former Easton Mayor Phil Mitman stepped down earlier this year, and a "selection committee" embarked on a nationwide search for someone with economic development credentials, as opposed to a politician. Informed sources tell me that the CEO-creators have decided they like politicians after all. By an 8-1 vote, they have recommended Lehigh County Exec Don Cunningham as LVEDC's new CEO.

Since the selection committee includes all the LV heavyweights, Cunningham's appointment as LVEDC's new CEO is all but a sure thing.

Although it's no secret that Cunningham and Allentown Mayor Edwin Pawlowski have feuded in the past, it's interesting to note that Pawlowski provided the choosers with a glowing letter of recommendation for Cunningham.

Is this Cunningham's reward for remaining silent on the NIZ? Call me smug or misguided, but it sure looks that way.

If Cunningham accepts the job, and all indications are that he will, he won't be running for Bethlehem Mayor. That's a relief to Bob Donchez who had to consider Cunningham his most formidable rival.

Taking the job also means Cunningham will be stepping down as Lehigh County Executive, perhaps as early as next month. Under Lehigh County's Home Rule Charter, the Republican-controlled Board of Commissioners get to choose the new Exec, although he or she must be a Democrat.

Who's it gonna' be?

I hear Dennis Pearson is available.

Who voted against Cunningham?

How does Don feel about "Summer Hours"?

Stay tuned.

Updated 9 AM: Contrary to what some of my readers might think, I like Don and think he'll be an excellent CEO at LVEDC. I hope I haven't just jinxed him.

Will Cunningham Take Reins at LVEDC?

In the 2013 Bethlehem Mayoral race, many think that Council member Bob Donchez will square off against his friend, Lehigh County Exec Don Cunningham. As a popular two-term Mayor, Cunningham held the City together throughout the turbulent years that followed the demise of Bethlehem Steel. But Donchez, a former teacher and son of a police detective, has consistently been high vote getter in the last few races.

But will Cunningham really run?

Lehigh Valley Economic Development Corp. is looking for a new CEO. According to inside sources, it has narrowed its list of candidates to just two people.

One of them is Don Cunningham.

LVEDC Tries To Explain Summer Hours ... Again

Last year, a Lehigh Valley Economic Development Corporation (LVEDC) tweet about Friday Summer Hours, in the midst of a recession and increasing unemployment, really bothered a lot of people adversely impacted by the economy. After all, our tax money helps support LVEDC.

As I mentioned yesterday, it's that time of year again. Instead of a Facebook tweet, LVEDC's Vice President of Regional Development, Pete Reinke, sent an email blast about 19 weeks of Friday afternoon golf, at 19 different courses.

After getting wind of this story, the Express Times contacted LVEDC and was told this was a private email.

Really?

Reinke's LVEDC email address is PReinke@lehighvalley.org. That's the email address he used to send his "private" email. The email was sent to all members of LVEDC's publicly funded staff. At their official email addresses.

Another LVEDC VP, Steve Melnick, used his LVEDC email address to send a "private" reply.

Reinke also used his LVEDC email address to contact public sector employees, at their public sector email addresses. These include over 100 employees of Northampton County, Allentown, Lehigh County, Easton, Bethlehem, and even New Jersey. In addition, this "private" email went to numerous employees of other publicly funded nonprofits.

I have not identified these publc sector employees because they have no control over who sends them an email blast.

In addition to using his LVEDC address, Reinke also lists his LVEDC phone number and LVEDC fax number for replies.

In addition to repeating the same exact mistake it made last year, LVEDC is compounding its folly. Just like it did last year, it's making up bullshit excuses after getting caught.

Incidentally, Summer's not here yet.

This must be Spring Hours.

LVEDC Announces the Return of Summer Hours

Last year, a Lehigh Valley Economic Development Corporation (LVEDC) tweet about Friday Summer Hours ignited a firestorm.

"We start summer hours today. That means most of the staff leave at noon, many to hit the links. Do you observe summer hours? What do you do?"

The notion of a publicly-funded economic development engine hitting the links in the midst of a recession is a tad insensitive.

Not only did the tweeter take the heater, but LVEDC CEO Phil Mitman eventually resigned, too.

Guess what?

Fore!!!

Pete Reinke, LVEDC's VP of Regional Development, just sent this email blast out to all LVEDC staff, public employees and numerous LV Movers and shakers:

It’s that time of the year!
Friday afternoon golf. Starts this week.
This year’s theme: 19 courses,19 weeks, plus the ever important post round 19th hole.
Each course can only be played once, so suggest a course and a week to play it, or I will pick.

This Friday-Beth Muni: 136,144,152.
Who wants in!
Tell me who to add to this list or tell me if you want to be removed

Seve Melnick, VP of Entrpreneurial Development at LVEDC, has already responded, "I'm in".

These guys just don't get it, do they?

If you want to see your tax dollars at work, drop by Bethlehem Municipal Golf Course on Friday to see how many public employees are working on their handicaps.

Why LVEDC's Exec Committee Supports the NIZ

The Express Times tells us that LVEDC, the Lehigh Valley's supposed economic development engine, has endorsed Allentown's 130-acre Neighborhood Improvement Zone (NIZ). This happened even though it allows Allentown to grab EIT owed to other municipalities, This happened even though the subsidized rents within the NIZ will create an uneven playing field for commercial real estate developers in the rest of the Lehigh Valley.

Why?

Let me explain. LVEDC, like faux grass roots group RenewLV and Alan Jennings' CACLV, is a creature of the Lehigh Valley Partnership. That's an aging collection of rich white guys who think they run the Lehigh Valley, and maybe they do. LVEDC, RenewLV and CACLV are three fronts for the Partnership, just like a pizza shop can be a front for the mob.

On Tuesday, five Partnership bluebloods got together and decided that LVEDC needs to endorse the NIZ. After all, what's good for Allentown is good for the Lehigh Valley.

Even if it isn't.

After getting its marching orders, LVEDC prostrated itself before an unelected aristocracy yet again. Who knows? Maybe Alan Jennings will write yet another op-ed claiming he "walks the walk."

Secretive as always, LVEDC declines to reveal its exact vote, but Chair Don Bernhard huffs that it was not close.  Then he went off to play golf.

Summer hours, you know.

Well, I have the numbers.

The vote was 14-2 in support of the NIZ. But the two No votes come from pretty powerful people.

One of the Nos comes from Richard Thulin, who is slated to take over as LVEDC's Chair next year.

The other No vote?

Bethlehem Mayor John Callahan.

I'm sorry, but if the Mayor of the Lehigh Valley's most successful city has concerns, this bullshit endorsement is meaningless.

LVEDC Gets Mack Tough

Megatron

The past year has been a bad one for Lehigh Valley Economic Development Corporation (LVEDC), a publicly funded nonprofit designed to attract and retain business in the Lehigh Valley. In June, their social networker posted a tweet about Friday Summer hours, chirping that "most of the staff leave at noon, many to hit the links." She was fired. Then in September, it came under fire from Northampton County Council for doing too little to attract new business to the County. Finally, last month, CEO Phil Mitman announced his intention to resign.

Perhaps that's why the Lehigh Valley's economic development engine chose Mack Truck's Customer Center, located in Allentown, as the venue for their annual investors' meeting. Several hundred business and government leaders sat among a collection of Mack Trucks, including Megatron, as LVEDC's Mtman credited the company for attracting 12 companies, $238 million in investment and 3,749 jobs in 2011.

Mack trucks gleamed as Coca Cola's Tim Fischbach announced a $46 million expansion project at its 225,000 sq. ft. Upper Macungie plant, where the syrup for Coke and Diet Coke is manufactured. Powerade, Vitamin Water and Fuze will now be processed at the plant.

"LVEDC was our quarterback in this mission, our Eli Manning," claimed Fischbach, who credited the LV's economic development engine for successful negotiations with local officials and more importantly, for securing a $1.25 million infrastructure development grant from the state.

Mack Trucks glimmered as Coca Cola's Fischbach announced 26 employees in Upper Macungie, with an additional 24 people to be hired over the next 3-4 years.

According to Fischbach, the average salary of salaried new hires is $69,000 per year, plus benefits.

After the speeches, as business leaders networked and grabbed their smart phones, Mack Trucks stood at attention, hoping to be noticed.

Mack's oldest vehicle, a 1905 bus

Among them was a 1905 bus, the oldest existing Mack vehicle, which put in a million miles on the roads of Chicago and New Orleans.

"It still runs," a proud Mack employee said. "In fact, they all do."

With businesses like Mack and Coca Cola, so does the Lehigh Valley.

Below is a slideshow of all the Mack trucks on display, from the 1905 bus to Megatron.



Updated 9:58, to make a clarification concerning salary as per Bob Wendt.

Phil Mitman Resigns From LVEDC

LVEDC's top dog, Phil Mitman, has stepped down. Mitman came under fire last June for an official tweet announcing, "We start summer hours today. That means most of the staff leave at noon, many to hit the links. Do you observe summer hours? What do you do?" He fired the tweeter, which just got the twitterati all worked up.

He might be headed to Easton Area Industrial Land Development, whose board voted on Phil replacing retiring Executive Director Charles Roseberry last month.

Updated 1:45 PM: The Express Times and Morning Call now have stories confrming this report.

LVEDC Needs New Pitch in Northampton County

Every year, LVEDC CEO Phil Mitman takes time out from his busy schedule to tell Lehigh County Commissioners and Northampton County Council members how great things are going. Never mind that little thing called a recession. Unemployment? You won't even find the word listed on LVEDC's webpage, even though the BLS places both counties around 9%. Mitman claims things are just wonderful. Lehigh County is always led to believe it's doing a little better than Northampton County, and vice versa.

For a long time, Mitman has been treated like a visiting celebrity here in the People's Republic of Northampton County. After all, he is a Bixler. I don't think his family came over on the Mayflower, but it was the proud owner of America's oldest jewelry store on Easton's centre square, which is round. I bought my engagement ring there in 1788. The Easton store closed its doors in 2009, after Mitman had sold it.

Mitman's colonial pedigree, and his engaging personality, likely meant a lot to the puppet masters at the Lehigh Valley Partnership, our unelected aristocracy, when they selected him to lead the Lehigh Valley's economic development nonprofit. Though funded in large part by hotel tax from both counties, as well as other public monies, LVEDC has historically been shrouded in secrecy. It started catching lots of heat after unsuccessfully attempting to gag a number of local luminaries, including Express Times publisher Martin Till.

It's never a good idea to aggravate someone who buys his ink by the drum.

Enter Phil Mitman. He was going to change all that with a "climate of collaboration."  Then $100,000 went down the toilet for a passenger rail study that told us what we already knew - it costs too much. Then they all nearly fell for an ill-fated attempt by Mayor Ed Pawlowski to relocate to downtown Allentown. Despite 7 AM meetings, another attempt to muzzle public officials and cheer leading by Lee Butz, whose building was designated as LVEDC's new home, the public spotlight ruined everything. Word kept leaking out, despite an insistence on goofy secrecy pledges.

So much for collaboration.

Then came the tweet heard round the world. In an attempt to reach out to the Twitterati, LVEDC actually hired a social networker who one Friday posted this:

"We start summer hours today. That means most of the staff leave at noon, many to hit the links. Do you observe summer hours? What do you do?"

Oh, I don't know. Some of us are standing in unemployment lines. Others are actually having trouble putting food on the table.

When I reposted that tweet here, LVEDC's initial reaction was to slam me. Their Propaganda Minister, Steve Althouse, delivered a missive to various news outlets and totally played goofy Jonathan Geeting, who holds himself out as an expert on ... well ... everything.

Althouse was careful to exclude me.

Unlike Geeting, The Morning Call's Scott Kraus painted an accurate picture of what had happened, which included the termination of the tweeter and some incredibly goofy explanations by Phil "Fore!" Mitman. Columnist Bill White followed that with a "Step Away From the Smartphone" parody.

Needless to say, LVEDC has pretty much stopped tweeting.

I'm concerned about the money. Their online financial statements fail to tell me how much their employees are getting paid. But according to Guidestar, which has LVEDC's 2009 and 2008 reports to the IRS, I know that Mitman was paid $134,366 in 2009. This is about 14% more than his $117,788 2008 salary. In the midst of a recession, total employee expenses amounted to $1,280,937 in 2009. In addition, $80,263 was spent for conferences and conventions, and another $15,993 for travel.

I asked LVEDC's CFO, Jean Mateff, to provide details about those travel expenses. She said she'd get back to me.

That was in June.

Summer hours, I guess.

With all this in the background, a dapper Phil Mitman stood before Northampton County Council on Thursday night, with VP Pete Reinke standing by his side. When he did this two years ago, only the Northampton County Bulldog - Ron Angle - questioned him. Last year, it was pretty much Angle again, all by his lonesome. But on Thursday night, everyone had questions. Mitman was unable to make lemonade out of lemons.

He attempted to state that the LVEDC created 1,743 new jobs in the Lehigh Valley during the first six months of 2011. But the usually quiet Mike Dowd wasn't buying the bullshit. After noting that many of the jobs created were really just retained jobs, Dowd pointed out that there were 809 new jobs in Lehigh County, but only 223 in Northampton County.

Why the disparity?

Mitman will get back to us on that.

Lamont McClure wanted to know whether the reason for this disparity is because, comparatively speaking, Northampton County delivers a smaller share (34%) of the hotel tax than Lehigh. Mitman denied that has anything to do with it, but was unable to really explain the disparity.

Mitman was asked what his outfit does to help mom-and-pop small businesses, the backbone of our economy. He sends them to CACLV's Rising Tide Loans.

Mitman's backup, Pete Reinke, explained there are four "prospects:" (1) "Project Gravity," a 5,000 sq ft warehouse that might hire 220 employees; (2) a controversial alternative fuel company coming to Plainfield Tp, which will convert 16' high grass called "miscanthus gigantus" to fuel, bringing 50 jobs; (3) a biofarm chemical producer in the Slate Belt, which will bring 55 to 250 jobs in 3 years; and (4) an electric connectors company bringing 54 to 125 jobs.

Then later, Phil Mitman stated there were 17 prospects.

Which is it?

Council Prez John Cusick asked about Euclidean University, a proposal in East Allen Township that you first heard about on this very blog. Reinke told Cusick that LVEDC is not working with Michael Parlamis, who's been called a "pillar of the community" by The New York Times. Then he went on to snark the whole idea and attack Parlamis' integrity, suggesting that he was trying to do the same thing with a tract owned by Chester, New York. Had Reinke really done his homework, as Mitman claimed, he would know that the New York municipality decided to sell the property to someone else.

If LVEDC's intention was to portray itself as a job creator, it failed. Badly. But whether LVEDC can be dismantled, as Angle would like, is a much more complicated question that would likely involve the state senate, which enacted the hotel tax legislation. The puppet masters at The Lehigh Valley Partnership have friends there.

At Least LVEDC's Phil Mitman Can Laugh

On a Friday in early June, I took a shot at Lehigh Valley Economic Development Corporation (LVEDC). Despite its grandiose name and the bluebloods on its board of directors, it's actually a nonprofit funded mostly by hotel tax revenue from Lehigh and Northampton County. But some of that aristocratic atmosphere made its way to one of its PR people. She tweeted, on their official tweeterer, "We start summer hours today. That means most of the staff leave at noon, many to hit the links. Do you observe summer hours? What do you do?"

I'll tell you what I did. I slammed LVEDC. It's incredibly tone deaf to brag about hitting the links when many LV residents are on reduced wages or laid off.

LVEDC "Business Relations Manager" Steve Althouse predictably took it upon himself, in a mass email, to accuse me (without naming me) of "sensationalism" for accurately reporting what was said. And he got another blogger to dump all over me, which must have been pretty easy.

In most cases, the story would end there. But not this time, Both newspapers sunk their teeth into this story, and ripples were felt all the way to frickin' India.

So LVEDC CEO Phil MItman decided to fix everything by firing the tweeter. That backfired, too. That got the twitterati all lathered up.

Yesterday, I saw Mitman before Northampton County Council's Finance Committee hearing. I was thinking it might be an unpleasant experience, but we both started to laugh when we saw each other. He even introduced me to one of his muckety mucks, who was receiving all kinds of accolades for having lost 45 lbs.

Probably golfing.

"I'm not saying a word to you. It's safer that way," grumbled Phil, who actually started to laugh himself.

"Shouldn't you be golfing?" I asked.

"It's only Wednesday," he answered.

I have to admit that, arisocratic blueblood or not, Phil has a pretty good sense of humor.

Peg Ferraro on LVEDC: "What Do You Want From Me?"

Late last year, the LVEDC finally agreed to fork over $50,000 to the Greater Lehigh Valley Chamber of Commerce very successful Borough Business Revitalization Program. They had been stalling on a funding request for 1 1/2 years, but claimed they finally saw the light. CEO Phil Mitman pledged he'd even be point man.

With a point man like Phil, you might as well send up the white flag.

Since giving his word, Mitman has cut two checks. One is for $5,000. The other $45,000 check has so many hoops to jump through that Phil should have just kept the money, which was probably his intention in the first place. Conditions imposed by LVEDC will only hurt the program, according to Northampton County Council member Ron Angle.

Peg Ferraro, who is serving as Council's liaison to LVEDC, attempted to defend the restrictions as "fiscally responsible." But Executive John Stoffa, who attends the same meetings as Ferraro, stated the LVEDC is running this award-winning program through "too many hoops."

"I don't see the hoops being accountability," surmised Angle, who claimed the conditions imposed are actually a "roadblock" to the program. "There was a chance for $50,000 of hotel tax money to go to little boroughs like Bath and Bangor to help those little boroughs, which are all struggling."

Suddenly angry at Angle's observation, Ferraro lashed out, "What do you want from me right now?"

Maybe he wanted her to do her job, the one she's supposed to have been doing for the past six months.

Ann McHale made a pretty good suggestion, which she turned into a motion. She wants Mitman and Greater LV Chamber of Commerce CEO Tony Iannelli to appear at a Finance Committee meeting and discuss the issue. The only No vote came from Council Prez John Cusick.

This should give Mittman something to tweet about, but today's Friday. Summer hours.

Who Will Replace Mitman at LVEDC?

A Sunday Express Times editorial claims it's time for LVEDC CEO Phil Mitman to say good-bye, not so much for the tweet heard 'round the world (and first reported on this blog), but his lousy attempts at damage control.

"In a clumsy damage-control effort, Mitman was at a loss to say whether Williams was fired for misrepresenting the organization’s 'TGIF' policy — or for leaking the truth. Either way, it created an 'oops' moment for a private tax-supported group with a record of shielding its business from the public."

As it happens, Mitman's contract is set to expire next year. Around that time, two people will be looking for a job. One of them is Bethlehem Mayor John Callahan. The other is Lehigh County Executive Don Cunningham.