LVEDC's Don Cunningham on LV's Economy - Is the Glass Half Full or Half Empty?

Lehigh Valley Economic Development Corp. (LVEDC) CEO Don Cunningham has always been a glass half full kind of guy. That attitude served him as Bethlehem's Mayor, when overnight, Bethlehem Steel pulled the plug and shut down. In one fell swoop, the City lost 20% of its tax base, to say nothing of residents who were out of a job. Cunningham, very much a local version of FDR, always inspired optimism when it was needed most. It paid off, too. Today, Bethlehem might actually be in a better position economically than it ever was.

Where are we economically? - The Lehigh Valley has grown from a GDP of $27.4 billion in 2003 to $55.7 billion in 2023. This actually tops Alaska, Wyoming and Vermont. Believe it or not, $9 billion is from manufacturing. The second biggest sector ($8.7 billion) comes from finance, real estate and insurance. Health care and education account for $8.4 billion, followed by professional services ($6.9 billion), wholesale trade ($3.8 billion) and retail trade ($3.8 billion).

Last year, instead of a brain drain, NorCo actually led the state in the growth of jobs for adults under 40. This is in stark contrast to the rest of the northeast. 

Median household income is $81,709, above the state's $76,081. "These are the numbers that are most relevant to us," observed Cunningham. The poverty rate is 10.5%, which is lower than the state rate of 11.8%.

Are there any recent NorCo projects?  Yes. They include (1) Have Hydraulik in Bethlehem Tp, a (manufacturer which moved to Bethlehem Tp from China; (2) FLSmidth Cement, a cement equipment manufacturer which moved its Illinois and Arizona operations to Allen Tp, creating up to 60 new jobs; (3) Gfm Manufacturing (Pharmatec), which opened its first US facility at the former IQE building in Bethlehem, creating up to 100 new jobs; (4) D. Gillette Industrial, a defense contractor that opened up in Forks Tp and created 17 jobs; (5) Bazzini, America's oldest nut company, has expanded into NorCo; (6) COHERENT, an existing semiconductor manufacturer in Forks Tp, is expanding operations, which will create up to 320 new jobs; (7) Infinera, a semiconductor manufacturer in Upper Macungie and Bethlehem, is creating a new advanced test and packaging facility

What is the strategic plan? Cunningham said that, for the first time since he's been at LVEDC, there are actually "more people who want to be in the market than we have products and places and buildings for them." 

He recognized the opposition to large footprint warehouses, but noted "that's also what houses the manufacturing economy." He suggested there needs to be a balance. Warehousing, however, is not among the types of economy that LVEDC is targeting. 

In response to a question from Council member John Brown, Cunningham said that a big challenge for the Lehigh Valley is its fragmented governance. NorCo and Lehigh have a combined 59 local governments, not including the county governments themselves. 

Its biggest strength is proximity to market, with about 1/3 of the nation's population within a 6-hour drive of the Lehigh Valley. Also, the plethora of colleges and technical schools has reduced a brain drin into a brain gain for new talent. 

Goffredo: We Need To Consider Economic Development in Smaller Communities

At the conclusion of last week's Northampton County Council meeting concerning economic development, member John Goffredo noted that it is "perfectly explainable" why so many projects emanate from Bethlehem and Easton. But he wondered what the county should be doing to spur economic development in the rest of the county. He observed that many local businesses closed during the pandemic and never re-opened. "There's no bakery in the slate belt, a local cheese place that I adored in the area that never opened back up, and I'm sure there are a lot of other economic development opportunities."  He suggested that the county and committee members should reach out to local communities to see if they can help in any way.

Do you have any suggestions in your area? It would be good to name the location and what you think is needed. 

LVEDC Claims LV GDP Was $39 Nillion in 2016

Lehigh Valley Economic Development Corporation is claiming in a statement that the Lehigh Valley’s gross domestic product (GDP) for private sector industry has grown to a record-high $39.1 billion for 2016, a more than 4 percent increase over the previous year.

“It’s truly remarkable to consider that the economic output of our two counties has increased to the point that it’s larger than two states,” said Don Cunningham, President and CEO of the Lehigh Valley Economic Development Corporation (LVEDC). “We saw growth across each of our economic subsectors, and manufacturing continues to grow in the Lehigh Valley, making up an even larger percentage of the regional economy than last year.”

The findings released Sept. 20 by the U.S. Department of Commerce’s Bureau of Economic Analysis (BEA) show that the Lehigh Valley economy now ranks 65th out of the 382 largest metropolitan areas in the United States, compared to ranking 73rd last year.

The Lehigh Valley GDP is now larger than of Wyoming ($38.5 billion) and Vermont ($31.5 billion), as well as 108 other countries in the world. If the Lehigh Valley were a country, it would be the 87th largest in the world in terms of economic output.

A breakdown of the total GDP by subsector, as well as the rate of year-over-year growth, can be found below:

· Finance, insurance, and real estate: $8 billion (+5.9 percent)

· Manufacturing: $6.9 billion (+2.6 percent)

· Education and health care: $5.3 billion (+4.6 percent)

· Professional and business services: $5.3 billion (+4.2 percent)

· Retail trade: $2.3 billion (+3.2 percent)

· Information: $1.9 billion (+1.6 percent)

· Transportation and warehousing: $1.9 billion (+9.5 percent)

· Arts, accommodation, and food services: $1.6 billion (+5.4 percent)

Manufacturing year-over-year growth was led by a 4.5 percent increase in non-durable goods manufacturing. This includes food and beverage and chemical products, which reflects two of the target sectors of the Lehigh Valley (food & beverage processing and life science research & manufacturing) as identified by LVEDC.

Transportation and warehousing is the fastest-growing sector of the regional economy, according to the BEA, with 9.5 percent growth year-over-year.

Goods-producing industries in the Lehigh Valley economy increased by 3.4 percent, according to the BEA, while service-producing industries increased by 4.4 percent.

These GDP figures derive from the BEA and were analyzed and presented by George Lewis, LVEDC Director of Research and Analysis. GDP rankings of other countries come from the World Bank. The BEA adjusts its figures to account for new information and projections, so numbers that have been reported for previous years may have been changed or adjusted over time.

2016 is the most recent year for which measurable GDP data is available. The $39.1 billion GDP figure does not account for government spending.

(Blogger's Note: This post is based on information supplied by LVEDC and cites its sources).

Nazareth's Downtown Manager Wows NorCo Council

Nazareth Downtown Manager Stephanie Varone wowed NorCo Council yesterday with a description of what she's done since being brought on board 3 1/2 years ago to revive the tiny borough's struggling shopping district. "This is really a success story," said NorCo's Economic Development Director, Tim Herrlinger.

Technically, Varone works for Nazareth Economic Development Comm'n. When she was first hired, it was for 20 hours a week. She now works 30. She is paid $20,000 by Nazareth Borough Council, with another $15,000 coming from Northampton County.

Describing Nazareth as "the little engine that could," she predicted that it could be "a little New Hope." She called her organization "the hub of all that's happening in Nazareth."

And here I thought it was poker machines.

Varone said that, unlike other downtown managers, she took no college courses in economic development. She instead studied marketing. "To me, Nazareth was a business that needed to be promoted," she said.

So how did Varone promote Nazareth?

• She squeezed borough council for 40 banners in the downtown district to make the shopping district look good.
• She created Nazareth Now, listing events and local businesses in a positive light.
• At the county's suggestion, she started a farmers' market on Saturdays in the Nazareth Circle. It has grown from 6 to 27 vendors. Saturday is now the top retail day in the shopping district. But she warned that farmers' markets have grown 400% in the Lehigh Valley.
• She's pursued facade grant opportunities with Northampton County, and has turned a $50,000 public investment into $140,000 worth of facade improvements.
• She has personally recruited eight new businesses over the past three years, from the Xpresso Cafe to her own boutique, which she calls Smooch on Main. (That's where Ken Kraft buys his lipstick.) This is $797,000 in leases and a $2 million investment.
• She persuaded borough council to build a municipal parking lot to handle foot traffic.
• She has recruited two brew pubs, indicating that craft beer vendors usually develop a following. One of these, which may or may not be called Kerrigan's, is expected to open in December or January. A lease has been signed for a second brew pub, called Birthright Brewery, at 57 S Main Street, site of the former Nazareth National Bank. She expects to see it in business within 60-90 days.

Varone failed to mention that one of the businesses she recruited, the Run Inn from Emmaus, ran out. It is now a vacant storefront. An art gallery she touted is never open. The only things I see there are utility shut off notices. She also apparently had a hand in persuading a well-established pest extermination business, Rid-Et, to leave. She complained about a giant insect in the storefront window. While that may be counter to the New Hope image she is trying to create, it is precisely the kind of shop that makes sense to the practically-minded people who live in Nazareth. 

Varone admitted that Nazareth has had some bad press recently. You'll have this when a police chief chains and perp walks accused litterbugs while the Mayor is skimming from poker machines. You do tend to get a black eye when a council member obstructs a state police investigation into illegal gambling at the clubs. If truth be told, there's been far too little said.

She noted that she's been called a cheerleader, and that's true because I'm the person who called her one. "I like that, actually," she told Council, stating she is "flattered"

"I will do whatever it takes to have something positive in the news," she said.

I perceive my role a little differently. My first obligation is to be honest with my readers. That in the end is the best way to spur business growth.

I exposed corruption in Nazareth. This included a state grant for a private social club at which Council member Larry Stout is a bartender. It also included a grand jury investigation of then Mayor Carl Strye's little skimming operation.

At a borough council meeting, Varone called me "venomous" and a "cancer," so you know she's a pretty good judge of character.

She is a cheerleader, and a good one. She has made a difference in Nazareth. But businesses will stay away from a town full of corruption. Allentown is Exhibit 1 in that argument. Businesses will also avoid a top-heavy police department that is failing miserably. Exposing this wrongdoing may have short-term consequences, but in the long run, improves the economic climate. 

(Blogger's Note: I missed the first part of Varone's presentation, but watched it online.)

Is DaVinci Center a Fit in Easton?

Da Vinci Science City - Easton Waterfront

Without question, Easton looks much better today than it did just a few short years ago. Mayor Sal Panto, who is an enthusiastic ambassador when he talks about what once was known as Shadtown, deserves much of the credit for this rebirth. But its main attraction is that it is a river town halfway between New York and Philly. People and businesses have been playing to these strengths in recent years, and it's working. It might work for the Da Vinci Center, too.

Last week, news broke that The Da Vinci Science Center, located on the west end of Allentown, is considering an expansion into Easton. Executive Director Lin Erickson gave Northampton County Council an overview of the project last week, claiming it would bring education, tourism and economic development to Northampton County.

According to Erickson, Da Vinci Science Center needs to expand, and has spent the past year evaluating different locations. Its search led it to Days Inn. That will be demolished and replaced with a 170,000 sq ft facility that includes a science center, a 500,000 gallon aquarium with large view panes, an Aquarium Restaurant and event center with seating for 500, an immersion theater, a creativity studio or "Fab lab," classrooms and offices.

Easton has agreed to contribute up to $30 million of the projected $130 million cost.

Based on a comparison with the Chattanooga Aquarium, Erickson projects that Easton's Da Vinci Center will draw 600,000 visitors annually. It will create $45 million in economic development, provide jobs for 200 people and generate $7 million in local tax revenue.

Chattanooga (528,000) is much larger than Easton (27,000), but Erickson noted that the population within a 50-mile radius of the Lehigh Valley is 7.1 million, seven times that of a 50-mile radius around the Tennessee site.

In its 20-year history, the Chattanooga Aquarium has attracted 18 million visitors, and hotel taxes in that area have increased 500%.

Over the next year, Easton and Da Vinci will conduct a feasibility study to determine if the plan is viable. That alone will cost $1 million. Northampton County will assist with $50,000 in hotel taxes If Da Vinci gets a green light and funding, the project will be completed by 2021.

One drawback of this site is that, as Erickson herself noted, is that it is located in the flood plain. From time to time, it is itself an aquarium. I am unable to recall whether The Days Inn was impacted, but know the McDonalds across the street has been hit several times by floodwaters in recent years.    

Erickson stated that she decided on Easton, in part, because of its accessibility to Routes 22 and 78, as well as New Jersey. But funding was also a major factor. "Mayor Panto stepped up with a commitment unlike any of the other cities," acknowledged Erickson.

Da Vinci's goal is to bring "science to life and lives to science."  According to its 2014 tax return, it took in about $2.6 million in revenue and had about $2.5 million in expenses. Those include $1.3 million in salaries, including $131,000 to Erickson. It employs a staff of about 50 full-time and part-time employees. One of them is related to a board member.  It has a very large and unwieldy Board of Trustees of 28 people, and has a loan out to one of them.

Can Easton afford $30 million for a project that might fail? Nearly a third of its population is below the poverty level. Only half of its homes are owner-occupied. But  the City has an A-plus credit rating.

Easton has already agreed to spend $5.9 million to acquire the Days Inn, but is only paying $100,000 for the property until the feasibility study is completed.

Previously, Panto had hoped to enhance tourism with a national high school hall of fame. But that idea went nowhere.  

Green Knights Converting Wind Gap Tire Dump to Industrial Park

Green Knight Economic Development Corp is a private non-profit first formed in 1999 when Pen Argyl Area Concerned Citizens were approached by the Pennsylvania Department of Environmental Protection and Waste Management with a proposal for a gas-to-energy facility at the Grand Central landfill. In addition to generating enough energy to power 8,000 homes, the plant generated something else - money.  That's how Green Knights were able to build a shell building that ultimately attracted Techo-Bloc (landscaping products manufacturer). It's how Green Knights have been able to fund area scholarships and contribute to the Slate Belt YMCA. And next year, it's how Green Knights will be able to build a small industrial park on top of the second largest tire dump in Pennsylvania.

For years, Route 33 commuters have seen this tire dump eyesore at the Wind Gap exit. It's a 55-acre abandoned slate quarry that became both a massive tire dump that at one time included two million tires. Some of the soil has also been contaminated by asbestos.

In March 2015, Green Knights acquired this brownfield, and plan to replace it with a 25-30 acre industrial park with ten lots targeted to small, light manufacturers. The goal is to attract 300 jobs.

Slate spoils and steel slag already on the site will be used to cap what's left of the 2 million tires. In addition to the green from Green Knights, about $740,000 in public grants and loans have been poured into the project for clean-up and remediation.

Project manager Chad Helmer told Northampton County Council last week that the construction will take place next year, and it will be an "all hands on deck" project that pays prevailing wage.

Jennings: "The Slate Belt Has Been Long Neglected by All of Us"

When we talk about poverty in the Lehigh Valley, most people immediately think of Allentown, Bethlehem and Easton. But the decaying infrastructure and lack of decent jobs is also a serious problem in our older boroughs, where the rag mills and quarries are extinct. In Pen Argyl (population 3,500), 12.2% of the population lives below the poverty level. It's pretty much the same with the populations in Bangor (10.4% of 5,200), Portland(13.7% of 500) and Wind Gap (9% of 2,700). Alan Jennings, the CACLV ExecutiveDirector who will tell you himself that he's been fighting a losing battle against poverty for decades, wants that to change. He's proposing a Neighborhood Partnership Program (NPP) that will include all four boroughs.

"The Slate Belt has been long neglected by all of us," Jennings admitted to NorCo Council last week. He thinks that a NPP is the "best tool that's available for economic development in lower income neighborhoods. This is not a traditional economic development tool. This is a neighborhood development tool. It is a tax credit program offered by the [state DCED]."

What prompted Jennings to make this proposal?

Two words.

Alicia Karner, who lives in Bangor. Jennings said that, when she was employed by Northampton County, she badgered him incessantly. "You can't fight her for very long without getting bloodied and bruised." Karner eventually departed the County for greener pastures in Bethlehem, but Jennings continued seeking financial commitments from area businesses.

He finally succeeded.

Here's how it works. A business making a contribution of at least $50,000 per year for five years can get a state tax credit of up to 80%. This, coupled with a federal charitable deduction, means that it only loses 13 cents on every dollar contributed.

The businesses pledging to contribute to a Slate Belt NPP are as follows: Merchants National Bank ($50,000 per year for five years); Waste Management ($50,000 per year for five years), ESSA Bank ($25,000 per year for five years); and Lafayette Ambassador Bank ($10,000 in Year 1, $5000 in Years 2-5).

How will the money be used?

"We are very Main Street-oriented in the sense that we think central business districts are critically important," said Jennings. He added that money would be spent on facades in central business districts. It will also be allocated to housing rehab projects and municipal park improvements. He said the focus in the first year will be Bangor. In the second, it will be Portland. He believes this tiny river town is an excellent venue for eco-tourism by boaters who can take a break from kayaking and stop in a shop or restaurant.

Jennings has experience, too. He already administers three NPPs in Allentown, South Bethlehem and in Easton's West Ward. What's different about this one, if approved by the state, is that it will be the first to cover several municipalities.

The state will decide in November.

Pen Argyl Borough Manager Robin Szmoda was with Jennings as he spoke to Council. She said borough efforts to attract private investment were unsuccessful.   

Former DCED Staffer at People First

John Orsini is a former Norco Department of Community and Economic Development employee who was upset, to put it mildly, by my criticism of his department. "[T]he only bloated thing around the county is Bernie...," he said in a comment on my blog, posted during business hours. He also referred to himself as part of a team of "dedicated professionals who work hard every day to try and make the County a better place."  He then hunted me down in the Recorder of Deeds office, where he began to poke at me, although he later denied getting physical.

That's the last I saw of him.

According to LinkedIn, Orsini is now a business loan officer at People First Federal Credit Union.  He's gone from being a "dedicated professional" trying to make the County a better place to a dedicated professional trying to make People First a better place.

"If you are looking for a business loan, a deposit relationship, or you just want to talk, give me a call at 610-797-7440 x120. We're one of the best kept secrets in business banking in the Lehigh Valley."

Tell him I sent you.

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

Freshpet Opens Innovation Center in Hanover Tp

Dennis Bobita had no idea a building was being named after him.

While walking down the pet aisle during your weekly grocery trip, many of you may have probably noticed Freshpet selections for your cat and dog. But what many of you don't know is that Freshpet is manufactured right here in the Lehigh Valley, in Hanover Township.

Freshpet first moved into 176 N. Commerce Way at Lehigh Valley Industrial Park in 2013, expanding an existing 60,000 sq ft building to over 90,000 sq ft with a $25 million investment. In addition to feeding your pets, this company provides jobs for 100 people.

Freshpet President Richard Thompson (left) with
retiring Dennis J Bobita, after whom research facility is named

President Richard Thompson is the originator of Meow Mix, which he calls "McDonald's for cats." He sold that brand to invest in better, healthier products that use no preservatives and must be refrigerated. His company also supplies free food to the Colonial Regional Police Department's K-9 unit, contributed $6,500 to its upkeep and paid for most of Hanover Township's recently established dog park. It has done all of this without any taxpayer subsidies.

Freshpet has now opened a new, 50,000 square-foot, research and development facility at 146 N. Commerce Way. It's located next to its company headquarters. It's named the Dennis Bobita Innovation Center in honor of the company's VP of Research and Development, Dennis J. Bobita.

“When I first started here, our research would involve four people gathered around in a small office and that’s it, so to see what it has become today is really amazing,” said Bobita, who had a 35-year career in the pet food industry. He will still work as a consultant for FreshPet.

Taking over for Bobita will be the company's new VP for research and development, Lynn Lie, who said she looks forward to "overseeing the development of new and exciting recipes for Freshpet that will make pets happy, keep them healthy and provide ease and convenience to owners when it comes to feeding their loved ones.”

Business Matters' Tony Iannelli and LVEDC CEO
Don Cunningham on hand for grand opening. 

She owns Phoenix & Orion, 5 and 12 year-old cats.

Called an "Innovation Center,"the building will be used to develop new products, enhance existing products, and make packaging more efficient.

“When you grow a business like Freshpet, with the uniqueness and the quality of our business, it’s really important to have innovation,” said Richard Thompson, CEO of Freshpet, Inc. “So to have this center where we can actually do this without being in a cramped office building someplace on a desktop will be a huge thing for us.”

The research and development center is expected to create new jobs, but exact figures were not yet available. But the 32,000 square-foot expansion of the main manufacturing facility will create up to 60 new jobs. The project remains on schedule, and FreshPet is currently training new employees for the plant.

Freshpet dog and cat food can be found in more than 14,000 retail stores across the U.S. and Canada.

Lehigh Valley Economic Development CEO Don Cunningham, who was on hand for the opening of the Innovation Center, along with Hanover Township Manager Jay Finnigan and Supervisor John Nagle, said this is precisely the kind of new manufacturing he sees taking place all over the Lehigh Valley.

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.

Bethlehem Plans Downtown Market Study and Retention Staffer

Bethlehem DCED Deputy Director Amy Burkett

Northampton County is using about $1 million in table games revenue for what Executive John Brown calls a Community Investment Partnership Program (CIPP), focused on the County's smaller communities. But another $150,000 has been earmarked for Bethlehem ($100,000) and Easton ($50,000). Easton is still working on its proposal, but Bethlehem introduced its spending plan to NorCo Council at their May 5 meeting.

Bethlehem is proposing to spend $100,000 on a downtown market study to develop a "market-based development strategy" and identify an optimal tenant mix for Bethlehem's two downtowns. Only $25,000 in County money will be spent on this study. Bethlehem Department of Community and Economic Development Director told Council the goal is to maintain two "vibrant" downtowns.

The remaining $75,000 will help fund a $125,000 business development and retention specialist.

Hyden Phillips, who supports this funding, asked whether Martin Tower is a third downtown. Deputy DCED Director Amy Burkett said she doubted whether Martin Tower will be included in this study.

President John Cusick suggested that the study should examine whether rents are being undercut by taxpayer subsidies in the Allentown NIZ.

Our Phantom Economic Development

I want to share an email I recently received from a hockey fan.

The Phantoms' season is over and, once again, they failed to make the playoffs (finishing 7th of 8 teams in the Atlantic Division of the AHL).

Notably, the Phantoms won a sterling 14 home games this year (out of 38).

That means PA taxpayers forked over nearly $1 million in taxes per Phantoms home game victory to pay the debt service on the PPL Center.

That on top of the highest gas tax in the country (70 cents per gallon which beats even California!) and a governor who wants to increase any number of other taxes.

Any wonder both the NIZ and the CRIZ are having an extremely hard time landing new business from out of state?

43 Communities To Apply For $1.3 Million in NorCo CIPP Grants

Northampton County's Community Investment Partnership Program (CIPP) was just announced in January, but is going full speed ahead. Executive John Brown plans to use table games revenue from the Sands Casino for a variety of grants and revolving loans, with an emphasis on aging boroughs and townships. At a meeting of County Council's Economic Development Committee on August 6, county officials disclosed that 43 municipalities have already given notice that they intend to apply for $1.3 million in grants for various projects.Though these applications will be ranked by county staffers, Council will have the final say on how to spend the $500,000 set aside by Brown for these grants.

Community and Economic Development (CED) Director Diane Donaher had stated in January that 80% of the funding would be directed at boroughs and townships "that lack access to resources. .. They don't have staff. They don't have funding." But in response to concerns raised by Council that the cities were being ignored, Donaher added $150,000 to the program for Bethlehem ($100,000) and Easton ($50,000). Those will be urban block grants. Community Development Administrator Lori Sywensky explained that this would "make sure cities have access to some of the resources available, but not to the detriment of the smaller communities."

In contrast to smaller communities, neither Bethlehem nor Easton will be required to match the block grants.

"Our neighborhood NIZ is stealing businesses from the area, complained Ken Kraft, referring to Allentown's controversial Neighborhood Improvement Zone, where $54 million in state tax dollars to date have been diverted for an arena and several office buildings. He explained that some of Bethlehem's money will fund a city position to retain local businesses.

In addition to these community grants, $100,000 has been set aside for job creation.. CED staffer Mark Hartney, who explained that those grants are "based on opportunity," is currently working with four companies. Three of these are looking to expand and the fourth is an international company seeking to relocate to Northampton County. One condition of this grant is that any job created must pay at least $19.18 per hour, which is 80% of the Northampton County median income. "I think it's important to attract quality jobs," Hartney argued. It's unclear, however, whether any job creation grant includes a clawback provision that would enable the County to get its money back for an empty promise.

In addition to what is now $650,000 in grants, the CIPP program will include a $500,000 revolving loan fund for business gap loans. Donaher suggested that Council provide the County's General Purpose Authority with $500,000, and trust their "expertise and professionalism" in awarding and monitoring these loans. Two members of the County's General Purpose Authority - Mike Dowd and Neal Koplin - explained how they would administer the fund and repayment structures.

"Does council want to be reviewing 25 or 30 financial statements?" asked Dowd, himself a former Council President. Though Ken Kraft called gap loans risky, Koplin indicated that there would be collateral for these loans

After the CIPP presentation, Donaher countered criticisms that her 8-person office has failed to produce a single job, except for the ones in her own department. She indicated they are currently working with 26 businesses, including three manufacturers and a health facility.

 "This is what we do everyday," she  argued.

$35,000 Grant to Lehigh County Business explained

Donaher did come under some criticism for a $35,000 grant that Executive John Brown recently authorized for a business located in Whitehall. The money went to Restore, a nonprofit associated with the Lehigh Valley Habitat for Humanity, for the start up costs that would enable it to recycle latex paint. Restore is located at the old Circuit City business and is mostly staffed by volunteers.  

Environmental Services Coordinator Ken Zinis informed Council that complaints about latex paint disposal are among the most "common calls we get from our residents.".

Bob Werner took issue with giving this money away without at least informing Council. "I want to make sure there's accountability," he insisted.

After determining that Lehigh County's made no contribution, Scott Parsons asked why  Northampton County is funding a Lehgh County business

"I've been waiting for that question," answered Sywensky. "Habitat for Humanity is a Valley-wide entity." She added that Restore is "actually a nonprofit. ... We looked at the greater regional good here."

Sywensky got a little help from Kraft.

"It's a very advantageous thing for us because we were throwing it in landfills and nobody knows what to do with it. Everybody has latex paint. ... It's a really good program and I'm 100% for it." Restore just happens to be the location where the paint is recycled. Hopefully, in the future, we can use that paint here, in our offices."

LVPC's Becky Bradley Predicts S. Bethlehem and Allen Tp as Next Boomtowns

Right now, I look more like a boiled lobster than a human being. The unforgiving Sportsfest Sun dd a number on me this weekend. So though I want to give you a full report on what the Lehigh Valley Planning Commission's Beck Bradley had to say to Northampton County, this will be an abridged version.

She has no crystal ball, but Bradley told Northampton County Council that she expects business to boom in South Bethlehem and Allen Township.

South Bethlehem.- An expansion of the Panama Canal is nearing completion that is going to allow much more freight come up the Eastern Seaboard. Because seaports have no land to expand, she believes places like South Bethlehem will become inland rail ports for large amounts of international freight.

Allen Township. - The Fed Ex facility along Rte 248, she believes, is going to help the airport by allowing for more air freight, and should also result in a large number of businesses.

Neither of these business ideas is depended on a NIZ, CRIZ, KOZ or TIF. So they just might work.

11:15 am: A local expert, who shall remain nameless, tells me the following:

My students researched the impact of the widening of the Panama Canal 4 years ago.

Essentially, nothing coming from the Pacific Rim that is destined for east of the Mississippi will be off-loaded on the West Coast (and trucked or railfreighted east). Instead, cargo superships will transit the Canal to ports everywhere along the Gulf and Eastern Seaboard (Galveston, New Orleans, Miami, Charleston, SC, Norfolk, Newark, Elizabeth, Boston and Portland, ME look to be the big winners).

That's good business for East Coast ports (I've heard one estimate that Long Beach, CA alone stands to lose about 40,000 port jobs). But, because many of those East Coast ports lack the real estate (and other infrastructure) nearby to accommodate the additional goods they will receive, most goods will be on containers that will be off-loaded and shipped by rail to regional intermodal hubs (like the one in South Bethlehem near I-78). From there, the goods will travel (usually only a short distance) to a distribution facility where they will go in one side and out the other (loaded on to trucks after sorting by destination). That's why Ed Roske is planning almost 10 million sq ft of distribution facilities in South Bethlehem. Probably also why Charlie Chrin built an interchange on 33.

Interestingly, Ohio looks to get a huge piece of the action as goods destined for the Midwest will probably be sorted there.

The Broken Pieces of Mosaics on Main

They say the most beautiful mosaics are still made, after all, of broken pieces. It appears that there are broken pieces to the story about Mosaics on Main, which had its grand opening on Sunday.Northampton County Executive John Brown and DCED Diane Donaher proudly stood inside this new business, heralding it as something they want to bring to every borough. Perhaps they should think again.

Peter Theodoropolous and his family have owned and operated the very popular Nazareth Diner for at least the past quarter century. So when he announced plans for a new business called Mosaics on Main, there was no reason to doubt its potential for success. According to a news account, he owns three others in Red Bank, Atlantic City and Miami. His mosaics sell at between $3,000 and $85,000.

I'm unsure whether Theodoropolous has mosaic galleries in Atlantic City or Miami, but can tell you that he he has no art gallery in Red Bank. He did have a business there called Tesserae Mosaic Gallery, but telephone calls reveal that the number is no longer working. Rather than being part of a revitalized downtown, it's an empty storefront.

Courthouse records reveal that Theodoropolous is being sued by the Nazareth business that at one time had a contract to mount his pieces. Engineered Wood Products, LLC, supplied easels, gallery renovations and mounted mosaics for Theodoropolous, starting in June 2013. But as of February he still owed nearly $62,000 to Robert Stanke's Engineered Wood.

Stanke, in an attempt to work with Theodoropolous, cut his bill to $51,000, and the artist agreed to pay $1,000 per week for the next 51 weeks until he is current. But nothing was paid.

Easton Attorney Gary Asteak has filed a complaint on behalf of Engineered Wood. Theodoropolous is represented by John Karoly II.

So John Brown announced a $1 million grants program from inside a business that deserted Red Bank, changed its name and is now being sued for $51,000. By the way, his grants program includes public art.

How 'Bout a CRIZ For Whitehall, Coplay and Catty?

Many of the same problems that plague the Lehigh Valley's three cities - poverty, aging infrastructure, dying Main Streets and abandoned industry - are also present in Northampton County's 19 and Lehigh County's 8 boroughs. They also exist in older Townships like Whitehall, whose population now exceeds Easton. While it makes sense to encourage growth in the Lehigh Valley's urban core, most planners and legislators forget that these boroughs matter just as much as our cities. It's easy for them to forget, too, because boroughs lack the staff to make their needs known. For any economic development program to be successful, that attitude has to change. Believe it or not, Pennsylvania's new City Revitalization and Improvement Zone (CRIZ) program may open the door a crack. Whitehall Township's Jeff Warren and Howard Lieberman are trying to push that door open. This is their story.

The CRIZ program is available to cities with 30,000 or more people. So far, only Bethlehem and Lancaster have received this coveted designation. On up to 130 acres, new taxes can fund development. Unlike Allentown's more controversial Neighborhood Improvement Zone (NIZ), only new development can be rewarded. An existing business poached from another municipality is ineligible.

Whitehall's Howard Lieberman and Jeff Warren

How has the CRIZ cracked the door open for boroughs? It authorizes one pilot zone for a township or borough with at least 7,000 people. So far, there's been no zone designated. Warren, a Whitehall geophysicist, and Leiberman, Executive Director of Whitehall Industrial Commercial Development Authority (WTICDA), would like that designation. That Township's population now exceeds 26,000 and it would probably qualify for a pilot program on its own. It certainly has the inventory. .

Take the former Lehigh Valley Dairy property, for example, which is one of the first things you see when getting off Route 22 and into Whitehall. This gigantic 271,000 sq ft building, has been rotting away for the last 25 years on a designated brownfield, with no buyer or developer in sight. Sitting on nearly twenty acres, it is certainly Lehigh County's most prominent, if not largest, eyesore.

But it's a great property. Almost at the corner of Route 22 and McArthur Road, it provides for easy access to a major interstate. It's within a quarter mile of 18,000 residents, people who could use a job. Over 120,000 vehicles drive past it daily. How something like this could remain undeveloped so long is a mystery. It's about a block north of Allentown's border. It is the heart of the Lehigh Valley's urban core, but its status in a township makes most tax incentives and other resources unavailable.

In addition to the dairy, Whitehall has been attempting to market the former Dent Hardware Manufacturing, former Thomas Iron Works and Whitehall Waterfront.

But Warren and Leiberman think the pilot program, to be truly effective, should be able to cross municipal borderlines and include other properties. They point to Catasauqua's former FLSmidth Manufacturing and Coplay's former General Supply. They'd like to see those properties combined with Whitehall's for a regional pilot.

So when Governor Corbett visited Bethlehem on March 21, they both made their case, as best they could, to the state's highest executive officer. He told them he wants to see how Bethlehem and Lancaster do before deciding whether he wants to take this economic development tool to the next level.

Cunningham Argues For Regional Approach to Economic Development

Don Cunningham's LVEDC to roll out economic development strategy

He's been a news reporter, City Council member, Mayor, County Executive and even a member of former Governor Ed Rendell's cabinet. These days, Don Cunningham is President and CEO of the Lehigh Valley Economic Development Corporation (LEDC). He dropped in on Northampton County Council's economic development committee on March 6 to update members on a recent report card delivered by Garner Economics, LLC, the same firm hired by major corporations to do site selection. It's a $135,000 report card, too, paid for through a HUD grant. Though the lengthy report can be read at LVEDC's website, Cunningham summed it up in one sentence. "Economic development is a game of competition," he explained, noting that the Lehigh Valley is at play against other areas in the state, 49 other states and the world.

Recruiting big business into the area will create headlines, but Cunningham cautioned that another very important aspect of economic development is keeping what you already have. He stated that 75-80% of job expansion comes from business that is already here.

"We undersell ourselves," Cunningham told Council. "We tend to be more critical of ourselves than the outside world is."

The Lehigh Valley is the 68th largest metropolitan region in the United States, generating $33 billion every year in GDP. It includes 15,000 companies. "That is a significant region," observed Cunningham. "We do not have to define ourselves merely by, 'Oh, we're close to Philadelphia, we're close to new York.' We are the Lehigh Valley."

According to Cunningham, the economic development strategy in any area has to play to its own strengths. Chief of these would be the area's infrastucture and access to markets. "We got good bones," Cunningham said of our road and rail systems.

Another "huge factor", said Cunningham is a low crime rate. "You never want to have any level of crime, but when you compare it per capita against other regions, we have a very low crime rate, even in our cities."

One of our negatives is the relative high cost of labor, compared to non-union parts of the country. "That's obviously not a negative if you're the person earning the money and trying to live a middle class lifestyle," Cunningham observed. In addition, the cost of electricity, taxes and air pollution are considered areas of weakness.

Target industries that would be good fits for this area include high performance manufacturing (e.g. Victaulic), high value business services (e.g. D&B), life sciences research (e.g. B. Braun), and food and beverage processing (e.g. Samuel Adams).

To achieve these goals, Garner has made a number of recommendations, and Cunningham told Council that LVEDC would roll out its own action plan in May. But he added that the area's economic development growth is already winning, referring to a recent "Site Selection"  story listing the Lehigh Valley as the second fastest business market in areas of under 1 million people. Finishing second to Omaha, the Lehigh Valley had forty-six $1-million projects involving 50 or more employees. Omaha had forty-eight.

Garner had recommendations of its own, including a 1% sales tax and municipal consolidations of 63 municipal governments fragmenting the Lehigh Valley. Cunningham cautioned these are not recommendations of LVEDC. Council member Bob Werner complained, not only about the 1% sales tax, but said it would go back to LVEDC.

But Cunningham told Werner, "The study does not recommend anywhere that the money go to LVEDC. Wherever that came from is a fallacy. It doesn't say that." In addition, Cunningham said it is unlikely that a sales tax would happen and that decision would be made on a state level.

In response to Council President Peg Ferraro, Cunningham stated there is no large vacancy rate in office buildings, despite the building going on inside Allentown's Neighborhood Improvement Zone. But he stated the New Jersey migration into "bargain basement farmland" is over.

Werner continued his criticism of Cunningham and LVEDC. He complained that a similar report was done in 2010, to which Cunningham responded that these studies only have a shelf life of about three years. "That's how fast markets are changing, that's how fast you need to react," answered the CEO.

Werner then asked, "The bottom line is, what does this do for Northampton County?" He complained about the move of Bimbo Bakery from Northampton to Lehigh County.

"While you are living in the world of  'Are we getting as much as Lehigh County?', I will tell you that the outside world doesn't play that game," answered Cunningham. "You're competing with the world."

Cunningham went on to say there are 11 large, real prospects in Northampton County. "Let's celebrate that this region is on the United States map, and not get back to this parochial whining about where did this go, where did that go?" he argued. "The way we're going to win, is to win as a region. Northampton County, if it does its job, will get its fair share."

Cunningham also pointed out that while Northampton County lost 200 jobs to Lehigh with Bimbo Bakery, it picked up over 200 manufacturing jobs with the location of "Fresh Pets" to Hanover Township in Northampton County.

Cunningham told Werner he is trying to get votes while Cunningham is developing a regional strategy to get jobs.

A Voice Over Artist as Economic Development Czar?

Northampton County Executive Director John Brown has nominated Diane Donaher the County's fist Economic Development Director since the days of Glenn Reibman. But just who is she?

Well, for one thing, she's a voice over artist.

Non-union, of course.

Creative Sound Studios describes her as "[m]iddle aged, a voice you can trust, [with] approachable narrations." In fact, in this little audio segment, Donaher shills for the "country wineries" and "working farms" of Bucks County.

Now she can shill for our country wineries and working farms. And for more money.

During the Executive race, Brown complained that the County focuses too much of its economic development energy on the cities. "We have to get away from Allentown, Bethlehem and Easton, and focus on the rest of the community," he argued. So naturally, he hired a Bethlehem resident for the job. Not only that, but one who served for three years as Bethlehem's Deputy Director of Economic Development before she decided to become a radio star.

As it happens, that's the only economic development job she ever had.

Some say she left after only three years because she didn't care much for newly elected Mayor John Callahan.. That may be, but her job history is full of short stays:  United Way - 2 1/2 years; LV Business Education Partnership - two years; and Skills USA for just a year.

She recently formed 3D Non-Profit Resources, which apparently gives nonprofits advice on how to raise money.

She did spend one long stint before her job in Bethlehem - 15 years with SkillsUSA. That outfit seems to specialize in training kids for jobs, as opposed to actually educating them.

Incidentally, her husband Dean Donaher just happens to be Director of Student Services at the Bethlehem Area School District.

Very convenient.

You could make the case Donaher knows a lot about nonprofits, or fundraising, or even our educational system. You could claim she's a great voice over artist. But economic development? That's a tough sell.

Council will confirm her, probably unanimously. They'll defer to the Executive, even though there are loads of people out there who are more qualified, like Pete Reinke or Steve Melnick.

Reinke even plays golf! ... And speaks fluent Republican.

I am turned off by her listing of Georgetown as part of her educational background on her LinkedIn page. She was there a week, kinda' like Brown's $7,400 taxpayer-funded junket to Notre Dame. In both cases, this has nothing to do with education. It is resume-padding.

Why did Brown pick her?

Probably the statue of her patron saint, Elmer [all Republicans please bow your heads] Gates, sitting in her back yard, helped. It's no secret she's tight with this Lehigh Valley Partnership heavyweight. And it's no secret that Brown is a puppet for the unelected bluebloods.

Donaher should never have been nominated. LVEDC CEO Don Cunningham passed on her. But she'll get the job, and we will pay a ridiculous salary for a voice over artist.

In her defense, I'm told she has a bubbly personality, is very nice, is an accomplished public speaker, i.e. bullshitter, and will work very hard.

I believe she will ... For about two years.

Exec Candidates Galore Inside the Belly of the Beast

Bangor Mayor John Brown

Seven County Executive candidates, from both Lehigh and Northampton County, participated Monday night in an economic development forum co-hosted by the Lehigh Valley Economic Development Corporation and Lehigh Valley Partnership. This shindig, which attracted about 50 bluebloods, occurred at DeSales University's newly opened Gambet Center. I'm sure that place must have one or two restrooms, but I'll be damned if I could find one. I asked Bert Daday, but he huffed that Partnership members like him never need to use bathrooms of any kind. He and a few other Partnership dudes like L Anderson Daub I sat in the back, away from the fray, kinda' like Roman emperors. If one of them signaled thumbs down at any point during this dialogue, it would be curtains for the unlucky speaker.

Bethlehem Mayor John Callahan

I was up in the front row, sitting next to Don Cunningham, believe it or not. I told him I was Lamont McClure's guest. Don's big thing was getting flags into the room - American, Pennsylvania, Lehigh and Northampton County. Unfortunately, Frank Kane, Cunningham's former Chief of Staff, brought two Lehigh County flags instead of a Lehigh and Pennsylvania flag. Cunningham fired Kane on the spot, but Kane retorted, "You're not the boss of me!"

Other than trying to fire Kane and introducing moderator Chris Borick, who got paid to ask questions somebody else prepared, Cunningham had a fairly easy night. He sat there studiously reviewing a notebook as the night went on. During a break, I noticed a Mad Magazine inside of it.

Former Exec Glenn Reibman

The Northampton County Executive candidates - John Brown, John Callahan, Lamont McClure and Glenn Reibman, all played it straight. No jokes. McClure had to spend an hour without using the word "Gracedale," and that seemed to throw him off his game. Reibman has started referring to himself in the third person again, something he used to do when he was Executive. Callahan, a natural salesman, was in his element. John Brown, in the first time I've ever seen him in action, was quite impressive.

Lehigh County Executive candidates Dean Browning, Tom Muller and Scott Ott were a tad more jocular. When Ott was asked to describe what assets make the Lehigh Valley attractive, he tried to threw in everything, including hunting grounds and opera. Browning deadpanned, "I often go to the opera when I get done hunting. Then Muller wisecracked, "The fat lady's singing."

Att'y Lamont McClure

At this point, Daday gave a thumbs down, the signal to slay all three of them. But Cunningham, reading Mad Magazine, missed it.

All of the questions, some of them repetitive, focused on economic development and regionalism.

Regionalism.

All candidates support more regional efforts. Brown noted his 18-month effort to regionalize police departments in the Slate Belt. Callahan noted the revenue sharing from the casino with Allentown ($2.5 million) and Easton ($0.8 million), calling it a "watershed moment for regional cooperation." He also pointed to combining redundant water and ewer authorities, noting that Bethlehem and East Allen are combining after two years of negotiation. McClure stated he supported the Allentown arena, unlike Callahan. Reibman wants a bi-county or even a tri-county health department, and wants rail to Philadephia, New York and Scranton.

Businessman Dean Browning

Browning believes Lehigh should start moving towards a county-wide police force, and is urging a regional approach to the three publicly-owned nursing homes in the Lehigh Valley. Muller pointed to Lehigh County's regional crime center, which in four short months has helped bring in 3 homicide suspects from Bethlehem and Berks County.

Ott insisted that regionalism has to be voluntary and can't be forced from the top down, claiming that the "politics of regionalization may put a damper on some of the dreams of regionalization"

Tax Incentives

LC Director of Admin Tom Muller

While they all support tax incentives for private development, they do so in varying degrees. Reibman's support was the most unqualified. In fact, he spoke of outright grants. Callahan supports the entire "alphabet soup" of tax incentives, but cautioned the use must be judicious. McClure stated he supported tax incentives, including the Chrin TIF, but said they really need to be analyzed to see if they are working. Brown stated they should be used "very sparingly" and you need to know the return on investment in advance.

Browning supports tax incentives like a TIF if they serve a "pubic good." He noted that a TIF he worked on in West Hills resulted in $100 million in development and 1,000 jobs. Muller supports incentive, but only if they result in jobs. Ott complained, "We have become dealmakers instead of lawmakers." His objection is that there should be objective standards to qualify for a tax incentive. But he said he'll likely support the TIF proposed at Hamilton Crossings.

Jobs and the Economy

Comm'r Scott Ott

Brown would like to know where economic development appears in the county's mission. That needs to be spelled out. But he'd reach out to smaller communities aggressively. He also suggested investing in COGs (Councils of Government).

Callahan would appoint a Director of Economic Development and move its office away from the "bowels of the courthouse." He would do what he could to make it easier to do business. In Bethlehem, for example, the average waiting time for a restaurant permit has dropped from 42 days to 14.

McClure claimed that he had the idea of appointing a Director of Economic Development Director first, so there, John Callahan! He also said that businesses would be attracted naturally by his no-tax hike pledge, like flies to honey.

Reibman would appoint a Director, and he appointed a Director before anyone, so there, Lamont McClure! He thinks that a study to connect Routes I-78 and 378 will stimulate the local economy.

Browning would focus on developing the Lehigh Valley workforce. He suggested that there be periodic roundtables of government, education and business to identify areas where workforce training is needed. He also stressed the importance of education, and would implement a "Leader in Me" program in which businesses "adopt" specific schools and help them.

Muller agreed the County needs to work harder to reach "at risk" kids, but stated that the County is not the driver of economic development.

Ott's basic approach to economic development is essentially, "Do no harm." In fact, he wants to outsource as much government as he can, even to the point of making employees competitively bid for their jobs.

Lehigh County's DCED Office

Both Browning and Muller favor keeping it intact. Ott appears to want to dump it. "Government can do some things well, but is never going to be as nimble as you can be," he told the job creators. He prefers a strong role from the private sector, noting that politicians have "mixed motives" and are always looking at the next election.

Infrastructure

Callahan cites a RenewLV study claiming that $60 million can be saved by consolidating water authorities. While he doubts it's as high as that, consolidation of Bethlehem and East Allen will reduce water rates for residents significantly. McClure believes county bridges need repair, but is opposed to a large bond for it. Reibman talked about rail again.

Ott stated that he blocked the Lehigh County Authority from extending its charter, but complained Commissioners have little control over authorities. Muller, who is Vice Chair of the Lehigh County Autority is "delighted" that Ott has little control, and believes the LCA should work towards regionalizing the County's water and ewer. Browning criticized the "parochial" approac Ott has taken to the Lehigh County Authority, and lauded both Muller and Cunningham for their work in maintaining the County's 47 bridges.