economic development

Pennsylvania Tax Giveaways and an Island in the Sun

By Jamar Thrasher, Third and State

A few weeks ago, the Pennsylvania General Assembly fast-tracked a bill in the waning days of the legislative session to allow certain private companies to keep most of the state income taxes of new employees. News reports to follow indicated the new tax giveaway was designed to lure California-based software firm Oracle to State College.

Well, it turns out the CEO of Oracle, which will benefit from the largess of Pennsylvania taxpayers, recently bought his very own Hawaiian island, as CNN reported back in June.

Oracle CEO Larry Ellison, the third richest man in the U.S., purchased about 98% of Lana'i, the sixth largest of the Hawaiian islands. Forbes reported that the deal was rumored to be worth $500 million.

As CNN tells us:

The island includes two luxury resorts, two golf courses, two club houses and 88,000 acres of land, according to a document filed with the Public Utilities Commission.

Which bring us back to Pennsylvania, where Governor Corbett recently signed House Bill 2626, allowing qualifying companies that create at least 250 new jobs within five years to pocket 95% of the personal income taxes paid by the new employees. 

A Rare Victory In The Endless Fight Against Corporate Welfare

By Mark Price, Third and State

In a rare victory against corporate welfare in Pennsylvania, Ahold USA has withdrawn its request for property tax breaks for a meat-packaging facility it is building in Lower Allen Township, Cumberland County.

As Michael Wood explained before the request was withdrawn:

'How 'bout No, You Crazy Dutch....'

By Mark Price, Third and State

The Only Proper Villian We Could Find From the NetherlandsOn Monday night, the Lower Allen Township commissioners in Cumberland County considered a proposal from Ahold USA, the corporate parent of Giant Food Stores, for a $400,000 property tax abatement on a meat repackaging plant on which the company has already broken ground. (Ahold USA is itself the subsidiary of the Netherlands-based Ahold.)

The company has neglected a basic principle of the economic development game through which companies extract subsidies and tax breaks from states and localities where they were going to build anyway: until you have the subsidy in hand, don't give away that it will not impact your location decision.

But since the company made this error, the title of this blog post, taken from the Austin Powers movie Goldmember, should suffice for the township's answer. (It is pure coincidence that Goldmember, a Dutchman pictured to the right, has a gold G on his velvet sweatsuit.)

Here are two stories on this issue.

The Lower Allen commissioners should continue to say no to Ahold's request because it is a simple giveaway that diverts needed tax revenue from the township. It would be that much costlier if the West Shore School District (which has absorbed $2.2 million in state budget cuts since 2010-11) and Cumberland County (where property taxes for most homeowners and businesses may rise by 22% next year) follow suit.

The repackaging plant will consolidate meat cutting operations for Ahold USA's stores in the mid-Atlantic region. Customers will no longer get their meat freshly cut in the store, instead, the meat cutting and packaging function is being moved to a central location with easy access to the interstate. Some meat cutters will lose their jobs in the process, while others might be offered jobs at the new facility, at a lower wage.

For its $400,000, Lower Allen Township is being promised between 450 and 800 jobs; there is no word on how many jobs will be lost at Giant Food Stores in the region or at the company's Maryland division.   

Normally, a corporate giant like Ahold will approach government officials to inform them they are on the short list for a new facility being planned. Just look at how the Shell Corporation enticed incentive offers from Ohio and West Virginia before securing the mother lode of all incentives from Pennsylvania (a $1.67 billion, 25-year tax break).

Unfortunately for Ahold USA, the company has already broken ground on the meat repackaging plant. So the township commissioners made the right move by putting the request on hold. Why divert scarce tax dollars to a profitable corporation to do something they are already doing anyway?

While they make good beer in the Netherlands, Ahold corporate honchos could learn a thing or two about economic development blackmail from Dick Yuengling Jr., the owner and president of D.G. Yuengling & Son’s.

Although the company recently expanded distribution in Ohio, making Western Pennsylvania an economically attractive location to expand production, the brewing scion doubts he would build a new brewery in Pennsylvania. Yuengling wasn't specific about what he means by business climate, but it is pretty clear from a Patriot-News interview that he doesn't think Pennsylvania as a rule offers enough taxpayer cash to corporations. (Although, Yuengling says his decision of where to build will not be based on the incentives offered.)

The decision comes down to taxes, incentives and the state’s business climate, Yuengling said. 

In the interview, Yuengling hinted that there are far more business-friendly states. And while he didn’t directly criticize any Pennsylvania administration, past or present, he said he can never be certain which way the state is leaning in terms of its tax and business policies. 

By contrast, he said enticing incentives offered by other states might be too good to pass up. However, he declined to cite any states he might be considering for the brewery... 

“We don’t necessarily base business decisions on incentives like that. But if they are going to give them to somebody, we would stand there and take them.” 

Fact Checking the Corbett Jobs Record...and Some Unsolicited Advice

By Stephen Herzenberg, Third and State

The Corbett administration has a new summary of Pennsylvania's recent job performance. Today's news that Pennsylvania's unemployment rate is as high as the national unemployment rate underscores, however, that the state's recent jobs record is not  good. Let’s take a closer look.

PA vs. U.S.: The Corbett jobs summary notes that Pennsylvania's unemployment rate is below the national rate — and it was when the summary was first released. This was not a new trend: the Pennsylvania rate was a point or a point-and-a-half below the national rate for most of the four years before Governor Corbett took office. A year ago, the gap between the Pennsylvania and U.S. unemployment rate was still statistically significant. (See Table A.) But the gap between the two rates — the "Pennsylvania advantage" — has been shrinking steadily since 2010 until the Pennsylvania rate finally climbed to the U.S. level in August 2012, both equaling 8.1%.

Private-sector Job Growth: While the administration touts private-sector job growth in 2011, the numbers reflect a national trend, rather than a unique Pennsylvania story. 

The U.S. economy has had 30 consecutive months of private-sector job growth. In fact, Pennsylvania's rank for the percent growth in private-sector job growth has fallen from 8th in 2010 to 36th in the 12 months ending in July 2012. One of the reasons that Pennsylvania's private-sector job-growth ranking is down is the deeper cuts in public employment in Pennsylvania compared to other states. Deep cuts to Pennsylvania public schools and colleges led to a loss of 14,000 education jobs alone in 2011.

These layoffs impact the classroom and Main Street too. Unemployed teachers, like unemployed factory workers, don’t have money to spend, which affects the broader economy. 

Manufacturing Job Growth: Manufacturing jobs growth improved in 2011, but again reflects national trends. In fact, Pennsylvania's manufacturing job growth since early 2010 is slightly below half the national increase. (See The State of Working Pennsylvania 2012.) 

New Hires in Marcellus Shale: Not this one again. The administration is touting natural gas industry growth by citing the number of new hires. As we've explained repeatedly, new hires are not new jobs (most new hires replace people who quit or are fired). In fact, the number of new hires is basically a meaningless number. Statewide there were 580,400 new hires during the 2nd quarter in Pennsylvania, while total non-farm employment rose between the 1st and 2nd quarter by less than 300 jobs. In other words, the only reason to cite new hires is to make the job gain seem substantially larger than it really is. 

The gas industry has led to some job growth in Pennsylvania, just not on the scale claimed by the industry. Between the 4th quarter of 2008 and the 4th quarter of 2011, employment in the core Marcellus Shale industries grew by 18,000. That gain was largely wiped out by the loss of 14,000 education jobs in just one year. Even using the most generous estimates, employment in the Marcellus Shale in direct and ancillary industries in the 4th quarter of 2011 (as published by the Pennsylvania Department of Labor and industry) was 238,400 – about 4.2% of total state employment.

Here's the unsolicited advice: Twenty months into Governor Corbett's first term, there is still time for the Governor to pursue policies that will improve Pennsylvania's job performance. There are multiple options that have strong bipartisan and business support. For example, investing in transportation infrastructure as recommended by the Governor's own transportation commission. 

In manufacturing and workforce development, the administration is also saying some of the right things. But talk is cheap: we need actual investment in skills and innovation if our job performance is going to improve relative to other states and the nation.

Memo to Ripoffs, Swindlers, and Job Destroyers: Philly has a Tax Break for You!!!

Philadelphia now has a tax package in place that supposedly was a major factor in persuading Josh Kopelman to move his venture capital company, “First Round Capital” to Philly. It seems like FRC is a fine company. It funds brand new start-up businesses, and plans to provide incubator space for many of them in its new headquarters in University City. Patrick Kerkstra over at the Inky is crowing over FRC’s move and is all but saying “gotcha” to people like me who questioned the tax breaks that the City is giving them.

Here’s the rub. Those same tax breaks are available to Bain Capital and Mitt Romney (if and when Mr. Empty Suit returns to full-time vulturing with the firm.) They’re also available to similar companies in the private equity industry, one which has over $4 trillion of buying power under its control without any tax help from us. So here’s the question: In order to get a First Round Capital, do we also need to exempt all these other private equity firms and their leaders from business taxes? Here’s the business model for many of them: buy up existing companies with money borrowed on their assets, pay huge management fees, sell off assets, dump workers.

The New Yorker gives an example of how this model played itself out in real life after Bain Capital acquired Armco Steel Company and reorganized it into “GS Industries”:

[W]ithin two years of investing eight million dollars to create GS Industries and take a majority interest, Bain Capital had paid itself a special dividend of $36.1 million, financed by a big issue of debt. . . . G.S.I. subsequently struggled against domestic and foreign competitors. In 1999 it sought a federal loan guarantee, and in 2001 it entered bankruptcy protection. More than seven hundred workers lost their jobs, health insurance, and some of their retirement benefits. A federal agency had to put up $44 million to bail out the company’s pension plan. Even while G.S.I. was fighting for survival, Bain continued to extract management fees from it—about $900,000 a year, according to a recent Los Angeles Times story. “Bain partners think the profits they made are a sign of brilliance,” an official of the steel workers’ union who negotiated with G.S.I. told the paper. “It’s not brilliance. It’s lurking around the corner and mugging somebody.”

Sometimes jobs aren’t destroyed, they’re just sent away:

The next step in many leveraged buyouts is outsourcing—closing plants and selling assets, using the returns to pay back the loans, and then contracting production out to low-wage factories in other countries, usually where repressive governments prevent workers from organizing their own unions. This is precisely what happened when Freescale Semiconductor was taken over in a 2006 leveraged buyout. In the first year after the buyout, Freescale was forced to pay $760 million in interest on the debt it assumed because of the LBO. In 2007, it laid off more than 2000 employees and outsourced a substantial amount of work, including 50 percent of its assembly, packaging, and testing. In the fall of 2007, Freescale announced plans to open a design center in China that would employ 100 engineers.

Most interesting about these stories is the point about that federal agency putting $44 million into GSI while its management was extracting $900,000 a year in fees. It’s interesting because it’s so typical. This industry thrives on government largesse. Indeed, the single largest source of capital to the leveraged buyout industry is government pension funds. Why is that? Well, apparently, it’s because governments are such good marks for the con-men that run the industry. By using a variety of bogus methodologies for calculating their returns, these companies feed the need of public pension managers to report strong growth in their funds. And as we’ve seen with governmental gullibility respecting interest rate swaps, City managers just can’t resist the pitches of anyone approaching them with a deal that seems too good to be true.

So here’s what we have, for the most part, in this industry: ripoffs, swindlers, and job destroyers. (I’m trying to be nice here.)

Now if these companies come to Philly, that doesn’t mean they would destroy Philadelphia jobs. Who knows, they might actually add some management type jobs. But isn’t extending tax breaks to such companies the reverse of socially responsible investing? Do we want to be known as the go-to City for socially irresponsible investing?

Of course it’s easy for the press to make anyone who suggests that we stop subsidizing evil into looking like silly, naïve, navel-gazers. Kerkstra and I had a long chat about how we might survive as a civilization without getting in bed with corporate pillagers before he wrote his piece. But the only comment he published from me was the wistful one in which I suggested that we be leaders in just saying no. That comment was turned into lovely softball to be served up to the City’s Commerce Director, who replied: "We don't get that luxury. We have to be competitive, and this is a baseline requirement for being competitive."

Well, that’s not all I said, Mr. Commerce Director. I noted that we have a Mayor who happens to be the head of the National Conference of Mayors. He’s also a leader in the region, and perhaps a rising star in the national Democratic Party. Couldn’t our Mayor take the lead in proposing that cities and counties stop throwing their money around by engaging in the zero-sum game of corporate bribing? Wouldn’t it be worthwhile to figure out how to use the money that would be saved by all of us just saying no for things that would improve the livability of our towns and cities? That would start a race to the top, instead of the bottom. It would be a race in which no one loses, instead of the one we’re in, in which everyone – except the .000001 % - loses.

But no, the conventional wisdom is that cities are helpless, they must pay and then pay again for companies that rip off everyone, from workers, to cities, to school districts, to pension funds. It’s all pretty shameful, not to mention very, very unimaginative and downright stupid.

Business Subsidies 101: Take The Money and Run

A blog post by Mark Price, originally published at Third and State.

The Allentown Morning Call reports that a plant operated by International Battery in the Lehigh Valley has closed its doors. The facility opened in 2008 with $4 million in incentives from the commonwealth:

International Battery, which opened an Upper Macungie plant in 2008 that was expected to create hundreds of jobs, has abruptly closed without explanation, workers said, surprising local officials who worked for years to attract the company to the Valley...

Phone messages left with various company representatives were not immediately returned. A message left with Wexford Capital, a Greenwich, Conn., hedge fund that invested $35 million in International Battery in 2010, was not immediately returned.

International Battery, which makes rechargeable lithium-ion cells and batteries for the military and industrial uses, was seen as a recruiting win in 2008 when it decided to invest millions of dollars in the Lehigh Valley and create manufacturing jobs.

On that note, I will leave you with the Steve Miller Band.

PA Economic Development Programs Rank 40th on Job Creation, Job Quality Standards

A blog post originally published at Third and State.

A new national study sizing up hundreds of state-level tax credit, cash grant and other economic development subsidies has some bad news for Pennsylvania.

The commonwealth scored a D and ranked 40th place among the states in the Good Jobs First report, Money for Something: Job Creation and Job Quality Standards in State Economic Development Subsidy Programs. Some of the five Pennsylvania programs reviewed by researchers lack job creation requirements and wage standards for workers at subsidized companies. None of the programs required companies receiving state tax dollars to provide health benefits to workers in jobs or facilities funded by the subsidy.

Researchers looked at Pennsylvania's Film Production Tax Credit, Job Creation Tax Credit, Keystone Opportunity Zone (KOZ) Program, Opportunity Grant Program, and Research and Development Tax Credit. Combined, these programs cost state taxpayers $181 million a year.

Learn more about the Pennsylvania findings here.

The Good Jobs First study confirms the Keystone Research Center’s 2010 study which found that nine major Pennsylvania business subsidy programs had low or no job quality standards.

Could It Be the Weather?

A blog post from Michael Wood, originally published on Third and State.

The Delaware County Daily Times reprinted a story from the PA Independent (the state news service started by the Commonwealth Foundation) which mistakenly blames unions for the out-migration of taxpayers in the state.

Here is the claim:

The Tax Foundation, a Washington, D.C., tax policy nonprofit, tracks tax returns filed in every state to determine how shifts in population affect working by tracking the Social Security numbers of income tax returns filed with the IRS each year.

Between 1999 and 2008, Pennsylvania saw an overall decline of 84,000 tax returns. The top three destinations for people leaving Pennsylvania during that time — Florida, Virginia and North Carolina — are all right to work states. The data is the most recent available.

There are a couple of problems with this rationale.

1. Not many people move between states as a share of the population. According to data on the IRS's website for the period 2004 to 2009, Pennsylvania lost a net 21,847 filers. This equates with less than 0.2% of our population. Most people who move do so to neighboring states.

2. Included in these numbers are retirees. If you aren't in the workforce, I don't think workforce policies are high on your priority list.

In Case You Missed It: Third and State Blog for Week of March 28

Senator Jeff Piccola expanding school vouchers concept to include Pennsylvanians trapped in low-performing families? A state worker stunned to learn her mid-level administrative job is no pathways to riches? A Corbett speechwriter struck with a rare illness afflicting writers of overwrought clichés?

Either Friday was a particularly zany news day — or it was the first of April!

In Third and State's Friday Funny, we passed on an April Fool's take on the latest un-news coming out of Harrisburg. (Our thanks to a loyal blog reader for passing this one along.)

In other news last week, we blogged about the taxes gas drillers do (or don't) pay, why the minimum wage matters, imaginative tax avoidance strategies, and much more!

IN CASE YOU MISSED IT:

Tax Reform can grow our economy according to Moody's Mark Zandi

Check out this great piece on the tax proposal by Maria and I.

http://www.philly.com/inquirer/opinion/20101024_Philadelphia_business-ta...

Short version, do it now!

Brett Mandel's Values Are An Issue

I can't vote for Brett Mandel for Controller. I've said that a few times before on this blog and given reasons. But today I want to explain why Brett can't ever get my vote from a bit of a different angle. And that will require a little digression. I hope you'll bear with me. Because this Controller's race squarely raises the question of what kind of Philadelphia we want to live in.

Brett Mandel wants to cut Philly taxes for all business -- eliminate them really -- because he sees one business as good as any other. He wants to bring as many businesses here as he can, and to assure that once they're here, they stay. I don't.

I'm with Jim Wansacz: cancel the Convention Center

While the workers who will get jobs at the new convention center stand to benefit, even more workers would benefit if North Broad ever came back from the dead. You can absolutely guarantee that nothing will happen with North Broad if that Convention Center blocks everything.

Otherwise, the Convention Center is only good for the bankers getting fees off the financing.

Here's what Rep. Jim Wansacz has to say about it in the Inqy this morning:

A Pennsylvania lawmaker plans to introduce legislation as early as Monday to strip Philadelphia of up to $64 million annually in economic development funds for failing to have its two casinos up and running.

...

"The two casinos and Mayor Nutter have to reach agreements and have permits in place and have these casinos built and up and operational," said the bill's sponsor, Rep. Jim Wansacz, a Northeastern Pa. Democrat and member of the House Gaming Oversight Committee. "If no progress is made, then the rest of the state could use that $64 million to create jobs and stimulate the economy."

Jim! I'm with you! Block it! Stop it! We'd be better off with an empty patch of grass there than we would with a Convention Center!

Foxwoods @ the Gallery: the process still stinks

This weekend marks one of Asia’s most significant holidays – the Harvest Moon – as well as Asian Americans United 13th Annual Mid-Autumn Festival, an event AAU founded to celebrate the cultural survival and community power of Philadelphia Chinatown, one of the city’s oldest immigrant neighborhoods.

Eight years ago, Mid-Autumn Festival was marked by the thousands of people who used this cherished gathering to declare their defiance of a new mayor’s proposal to establish a baseball stadium on Chinatown’s borders. At the time, it was considered a “done deal” and few expected resistance from a largely non-English speaking community with one of the poorest zip codes (at the time) in the city. No effort was made by the city to communicate with the residents of the neighborhood or to engage with the community’s plans for affordable housing, schools, parks, and gardens.

Chinatown had to fight tooth and nail to establish itself as a neighborhood with real needs and a vision for itself. Among the many arguments used against us was that Chinatown had no alternatives for the land north of Vine Street. But eight years is telling. Eight years later, Chinatown North (as it is dubbed) is a far different vision for a city’s development than the one nearly forced upon this community.

Cross Vine Street and walk the footprint of what would have been the stadium. You’ll find:

  • a new annex for Chinese Christian Church, to house their growing congregation;
  • the building headquarters of the Greater Philadelphia Fujianese Association, one of the fastest growing ethnicities in Philadelphia, whose business and community leadership has changed the face of the community;
  • Khmer Art Gallery, which celebrates the culture and arts of Cambodia, and Liao Collection, a gallery and store of Asian arts and antiques, whose owners relocated to this location after being active participants in the battle against the proposed baseball stadium; and
  • Folk Arts-Cultural Treasures Charter School, an arts-based elementary charter school serving 400-some students founded by Asian Americans United and the Philadelphia Folklore Project.

Contrast this with a stadium that would have stayed empty two-thirds of the year, and offered this community little of the kind of “progress” it desired. Is it any wonder that this community fought a baseball stadium with every bit of its breath?

So why would city and state officials think that a casino would be any less repellant? The expected announcement today of the Foxwoods casino re-site to the Gallery is shocking on a number of levels.

First, since it’s apparently been forgotten: Chinatown is a NEIGHBORHOOD. Almost a quarter of its residents are children. We have homes, places of worship, cultural centers, and schools. A casino has no business in or around residential neighborhoods

Second, given the stadium history, it’s shocking that city and state officials would repeat past mistakes and make an announcement without any communication with neighborhood residents. The broader Chinatown community was neither consulted with or even informed of this announcement. We applaud the move to re-site the casinos – done largely in recognition of the flawed process and community activism that sunk the waterfront sites. But it is ironic/disrespectful/outrageous to ignore these past lessons and simply re-site to a different neighborhood with the same lack of process and communication.

Third, the Gallery location reportedly may come with perks for Foxwoods – including potential input on the development of the Market East corridor, a trouble-free approval process, tax breaks or compensation to abandon the waterfront sites, and legal immunity. None of these are priorities or an appropriate use of public process or dollars in difficult economic times.

And finally, we deserve a city that sets its development priorities based on a public planning process guided by unifying principles for what a city and its people need. It doesn’t need politically-connected operators to dictate how and when a city develops and uses its precious resources and money.

Obviously we need a lot more information to know where this is going. But right now, unless we hear differently, we’re ready for a fight.

You decide: no casinos or BPT cuts?

Our friends over at Old Philly Politics A.K.A. The Public Record have a pretty interesting editorial in this week's paper. The crux of it is this:

In a campaign that proved wildly popular with the citizenry, Mike Nutter proposed to spend more on police, health programs, arts programs, schools and Community College. He is opening up new offices in City Hall as fast as desks can be delivered – for business, culture, public relations, transportation, zoning and housing, to name but a few.

At the same time, Nutter is determined to keep cutting the City’s destructive business and wage taxes. Great! In the long run, a healthier business environment will pump revenues in a healthier way.

In the short term, however, it looks like we’re walking into a recession. That can wreak havoc with the Mayor’s best-laid plans. If a general economic downturn affects our region, a wide range of business and wage taxes will drop.

The real-estate market is cooling off at the same time. This will lead to lower earnings from the transfer tax.

The city cannot afford, in 2008, to turn away any longer from the immediate economic benefits of casino construction.

I think slots casinos are one of the worst ideas for economic development proposed for this city in a long time (right up there with raising Black Bottom for Penn in the 50's, "slum clearance" on South Street via the Crosstown Expressway, stadiums and convention centers, etc. And could only be made worse by adding tables games to the mix). I am very happy they have still not been built.

However, this editorial (and the front-page story of the Public Record) make it clear that pro-casino forces are getting antsy.

And positioning casino revenue as a way to fund BPT tax cuts is very, very interesting to me.

I am curious to know who is pushing this idea behind the scenes and how much traction it will gain. It's certainly an argument that could put a lot of us in a weird place, i.e. united.

Memo to the Donald: we have a winner!

Ok, this is way late, but better late than never as they say…

As you may remember, back in the glorious hey-day of YPP, there was a contest to submit ideas to Donald Trump for a profitable use of the Budd Plant after the that location was nixed as a possible casino site.

The point of the contest was to encourage alternative uses of the land that would be profitable for an investor like Trump and also suggest some sustainable economic development ideas. The contest had…er…three submissions (myself, DeWitt and Ben I believe) and via Philebrity quoting the Inquirer a month ago (yea! timeliness), it is clear that I won the Trump Apprentice Challenge Philly:

Rotem and Sojitz Corp., a Japanese company, have formed a consortium to build 120 Silverliner V regional railcars for SEPTA for $274 million. The first cars are to be delivered to SEPTA in December 2008, and all 120 will be completed by June 2010… The lease … is for 20 years, and the plant will house Rotem’s U.S. headquarters and employ about 300 workers on an 11.5-acre site on Weccacoe Avenue between Snyder and Oregon Avenues.

This is awesome. Rotem, which seems to be a subsidiary of Hyundai, is opening its first US plant in Philadelphia. They have also signed a contract to build rail cars for a commuter line in California.

My entry to the Philly Apprentice Challenge was inspired by the Kawaski plant in New York that opened in Yonkers to build trolleys for SEPTA and subway cars for NYC. They have been there ever since. So, if we play our cards right, Roten could be around for a while too providing high-wage industrial jobs to Philadelphians in an industry totally poised to expand.

In haughty blog fashion, let me quote myself from my Budd plant entry:

So, to sum up, my proposal to the Donald is that he think about investing some serious resources into what could be a growing niche market: building rail cars for rapid transit lines throughout the country and also for some international customers.

Philadelphia is well located to get its product to any part of the US. We have a history producing rail products with some portion of a trained workforce still alive and able to work. We have a city and state government that might be willing to cut a deal with the right corporation and we have a transit agency in need of new rolling stock that could award a new rapid transit construction corporation with a contract,

I certainly don’t have an MBA, but I think there’s some value in exploring this idea more and helping Philadelphia become a leader once again as a rail car manufacturer and also providing employment for many Philadelphians not to mention a real boost to our local economy.

Well, here is a real life example. Mr. Nutter and Council: make it work; keep Rotem and help them expand.

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