Monday, December 30, 2013

Philadelphia Fed says housing permits way up in PA, NJ, and DE



Numbers, values rise by double digits



New residential permits rose significantly from New Jersey, Delaware and Pennsylvania from November 2012 to November 2013, according to the Philadelphia Federal Reserve.

In fact, the growth of residential permits issued year to date through November increased by double digits in all three states compared with the same month period in 2012. 

Permit issuances were 17% higher in Pennsylvania, 21% higher in Delaware and a whopping 36% higher in New Jersey.

The growth rates of the permit values range from up 19% for Pennsylvania to 36% for New Jersey.

Four Chester County firms get $5.25M in state funds



Four Chester County firms will receive $5.25 million in Pennsylvania Economic Growth Initiative funds. The companies are selected based on their potential to create jobs and positively impact the local economy. The following four projects were among 58 projects across Pennsylvania awarded a total $133 million in Redevelopment Assistance Capital Program funding.

Here is a rundown of the firms, according to State Senator Andy Dinniman's office:


  • The Chester County Historical Society will receive $750,000 to upgrade its roof, its HVAC system, its front terrace and sprinkler and water-control systems. The historical society attracts thousands of visitors to West Chester each year for exhibits, presentations and events. 
  • The Innovation Center at Eagleview will receive $1.5 million to renovate and upgrade its buildings, which offer fully-equipped lab space and offices to emerging life science, bio-medical and other technology-based companies.
  • Uptown Worthington will receive $2 million for its mixed-use development under construction at the intersection of routes 202 and 29.
  •  Carlino East Brandywine LP will receive $1 million for its East Brandywine Development.


“These four projects represent a nice range of projects across Chester County, and each of them will contribute to their communities and to their local economies,” Dinniman said. “I believe the Eagleview project is particularly interesting given its importance to the life science industry. And as a historian by training, I also eagerly await the improvements to the Chester County Historical Society.”

PPA contract latest twist in Phila. labor relations



PHILADELPHIA The Philadelphia Parking Authority came to terms last week on a four-year deal with employees represented by AFSCME District Council 33, the same municipal workers' union that has been locked for years in fruitless contract talks with the Nutter administration.

The PPA contract would run through August 2017, provide employees with alternating 2.5 percent and 3 percent raises each year, and pay immediate lump-sum bonuses based on length of service.

The contract does not address changes to the pension system. Mayor Nutter has repeatedly called reforming pension costs necessary for any deal with the district council and essential to the city's continued financial health.

DC33 represents about 11,000 nonuniformed, mostly blue-collar city workers, divided into 14 locals. Members have been without a new contract or raises since 2009, as have workers from their white-collar counterpart, District Council 47.

DC33 represents a variety of employees at the Parking Authority, including tow-truck drivers, parking enforcement officers, and mechanics.

Though governed by a separate board - a majority of its members are appointed by the governor - the Parking Authority had been following Nutter's lead in contract talks.

The administration told authority officials not to bargain "until the mayor settled the other contracts," according to a filing with the Pennsylvania Labor Relations Board.

In 2012, Teamsters Local 115, which represents Parking Authority employees at Philadelphia International Airport, filed an unfair labor practices charge against the authority for not bargaining a new contract.

In April 2013, a hearing officer agreed with the Teamsters and essentially ordered the authority to begin contract talks.

It is unclear whether that decision led the authority to begin talks with DC33 as well. The authority's executive director, Vince Fenerty, and DC33 president Pete Matthews could not be reached for comment last week.

Mark McDonald, a spokesman for Nutter, said the administration was "assessing the impact of this contract," particularly on payments made annually from on-street parking revenue to the city and School District of Philadelphia.

"We're not in a position to comment until we have a greater understanding on how this contract would impact those funds," McDonald said.

The deal with employees of the parking agency is just the latest turn in the city's bumpy relationship with its unionized workers.

In January, the Nutter administration presented to DC33 a "final offer" calling for 2 percent and 2.5 percent pay raises and sharply reduced pensions. About 6,800 city workers would have been affected by Nutter's offer.

The union countered with a proposal for 3 percent pay raises and no concessions on pensions, work rules, or furloughs.

Two months later, DC33 members were a heavy presence at Nutter's annual budget address, where union protesters shouted down his attempt to deliver his speech.

Since then, Nutter has settled a long-running contract dispute with city firefighters, and he agreed this month to advance $2.5 million to DC47's depleted health-care fund.

Nutter signaled that relations with DC47 were improving while praising union's new president, Frederick Wright, as a "serious and sincere guy." Nutter said he was hopeful a contract could be reached for the 4,000 city workers in that union.

Wright, who unseated former president Cathy Scott in September, faces a rerun of the election on Jan. 7, because Scott contested the results.

Source: Philly.com

14 starts ominously for NJ casinos as gov watches



The new year is a crucial one for Atlantic City's future, and 2014 won't start auspiciously.

This is the fourth year of a five-year grace period New Jersey Gov. Chris Christie has given the seaside gambling resort to turn around its struggling fortunes before considering expanding casinos to other parts of the state — something casino executives fear will decimate the already wobbly market.

And it will begin with the closing of one of the city's 12 casinos, the Atlantic Club Casino Hotel, which is shutting its doors on Jan. 13, the victim of a takedown in bankruptcy court. Two national gambling companies with casinos in Atlantic City, Tropicana Entertainment and Caesars Entertainment, are paying a combined $23.4 million for the business, and the right to strip it for parts and close it down.

Tropicana is taking the slot machines, table games and customer lists, while Caesars is getting the property and its 801-room hotel. Neither has any desire to operate the casino in the now diminished Atlantic City market.

In remarks made the day before the Atlantic Club closing was announced, Christie said 2014 is time for Atlantic City to start putting up measurable results.

"It's obviously a critical year because we need to begin to see progress in Atlantic City or we're going to start considering alternatives," he said. That means considering the once-unthinkable: allowing casinos at the Meadowlands sports complex in northern New Jersey and possibly elsewhere in the state. Currently, state law restricts casino gambling to Atlantic City, along the state's southern coast.

"It's a year when we have to show some significant results," Christie said.

The state legislature wants to approve a commission to study the impact of gambling at the Meadowlands.

"Frankly, New Jersey's gaming industry in Atlantic City is at a crossroads," Tony Rodio, president of the Tropicana Casino and Resort and head of the Casino Association of New Jersey, wrote in a letter to state lawmakers earlier this month opposing the gambling expansion study.

He cited private investment in nongambling attractions like the Steel Pier amusement park, the Margaritaville restaurant and entertainment complex, and the downtown outlet shops; a five-year, $150 million casino-funded advertising and "Do AC" re-branding campaign; and the state-run tourism district focusing additional police and sanitation efforts along the Boardwalk, beach, shopping and marina areas. That progress will be jeopardized if investors think cheaper, convenience-based casinos will pop up in other places.

Many casino workers and outside observers fear the Atlantic Club closing could be the first of several in a resort that analysts have long said has too many casinos to support in a shrinking Northeast gambling market. Wayne Schaffel, a former Atlantic City casino publicist in the 1980s, sees more of the same on the horizon, particularly with rival companies preying on weaker competitors.

"It is very likely that this same strategy will be used to take out Trump Plaza, perhaps the Golden Nugget and maybe even the Showboat," he said. "It will undoubtedly shore up the balance sheets for the remaining 8 to 11 properties, but it will also take out anywhere from 1,500 to 3,000 rooms. At the end of the day, the winners will be the few remaining casino companies. The losers will be the thousands of employees who lose their jobs; the state, which will suffer from ever lower revenue and taxes, and Atlantic City itself."

And the $2.4 billion Revel Casino Hotel could be sold or make a second bankruptcy filing this year.

This will be the first full year of Internet gambling in New Jersey, which the state launched in late November to provide another source of revenue for the casinos. The big question is whether it brings in new money or just diverts it away from spending at the brick-and-mortar casinos. Nearly 110,000 online gambling accounts have been created in New Jersey thus far; the first Internet gambling revenue report will be issued in two weeks.

The state should also decide this year whether to try to take its thus-far unsuccessful effort to overturn a federal ban on sports betting to the U.S. Supreme Court.

Liza Cartmell, head of the Atlantic City Alliance which markets the resort, said Christie should grant a one-year extension of his deadline for an Atlantic City turnaround, noting that the lingering effects of Superstorm Sandy in Oct. 2012 set back tourism in Atlantic City and much of the Jersey shore by more than a year. She also said continuing investment in non-casino attractions proves the resort has a future.

"There are people who believe this island, this magical place, is a gem," she said. "It's very rough but it's continuing to be polished. It just needs some time."

Source: ABC News / AP

Emmaus Firefighters Try to Unionize



Borough officials argue the firefighters are volunteers, not employees, and should not be able to unionize. Both sides make their case Jan. 9 in Harrisburg.



Firefighters in Emmaus are at the beginning stages of trying to unionize.

The borough, meanwhile, believes firefighters are volunteers—not borough employees—and thus should not be allowed to unionize.

Both sides will have a chance to present their arguments at a Jan. 9 hearing before the Pennsylvania Labor Relations Board in Harrisburg.

Lindsay Bracale, a press aide with the state Department of Labor & Industry, confirmed the date of the labor board hearing. It will begin at 10 a.m. in hearing room 3 in the North Office Building in the state capital.

A statewide group called the Pennsylvania Fire Fighters Association, which represents paid firefighters in Allentown, Bethlehem and Easton among other municipalities, filed a petition Oct. 24 with the labor board, requesting permission to represent 27 Emmaus firefighters in collective bargaining with the borough.

In the petition, the association says it is seeking to represent "all full-time and regular part-time firefighters employed in the fire department, including deputy chief."

The association's petition does not cover "office clericals, guards and supervisors."

The petition includes the name of association president Art Martynuska and was submitted by Stephen C. Richman, an attorney with offices in center city Philadelphia, at 121 N. Cedar Crest Blvd. in South Whitehall, and in Haddonfield, N.J., and New York City.

Martynuska could not be reached for comment. Patch sent an email to Richman, who did not respond in time for this posting.

In Emmaus:

—The borough already pays some salaries and benefits to fire department personnel. It also provides stipends to encourage volunteer participation. According to 2011 figures provided by the borough, Emmaus paid $423,411 for fire operations, plus $321,581 in salaries and benefits for a total contribution of $744,992. That came to 8.5 percent of the $8.68 million general fund budget.

—Borough council has introduced a proposed ordinance that would apply to fire department operations.

—The borough gets state aid for fire department operations in the form of a "foreign fire" tax. The word "foreign" refers to out-of-state companies that provide insurance to in-state properties.

—The borough website says of fire operations: "The Fire Department’s staff is comprised of paid on-call volunteers who respond, on average, [to] 375-400 calls per year. Calls include fire protection, rescue/extrication and HAZMAT response, and are dispatched via Lehigh County’s 911 Communications Center." The website also says borough fire chief James Reiss, "a 31-year department veteran, ... oversees 42 volunteer firefighting professionals, comprised of duty crews, standby drivers and crews available 24/7, 365 days a year.

—The fire fighters association, according to its website, represents more than 10,000 paid professional firefighters in Pennsylvania. It also represents EMTs and paramedics. The association is a member of the International Association of Fire Fighters (IAFF).

Patch posed questions to Emmaus borough manager Shane Pepe on the issue:

Q. What is the borough's position regarding the unionizing of firefighters? Is there one issue that stands out?

A. The Borough's position is that the firefighters in the Borough are meant to be volunteers.  They apparently feel that they are employees. 

One of the issues that stands out is the way that the firefighters are paid. Their position is that they are paid through payroll and therefore should be considered employees. The Borough's position has historically been that they receive their pay stipends through the payroll system and they receive W-2 forms to make life for the firefighter easier, so they don't have to pay taxes on a 1099 form at the end of the year.  It also helps the firefighter with items such as withholdings for child support, etc. 

There are other issues that stand out, however, this is an issue that will be decided by the Labor Relations Board.

Q. Can you confirm the amount that firefighters receive in the borough's annual budget? And how much of that is for stipends? Also, why did the stipends begin and what about the apparent effort to end the stipends?

A. $519,366 is their 2014 budget.... $182,000 is for stipends.

The stipend began several decades ago. The Borough never stated that we were eliminating the stipends.  Borough Council greatly reduced the amount we were paying in last year's budget, just like we cut several positions in the Ambulance Department, Police Department, and Public Works Department.  When they were making budget cuts, they made the cuts to this department as well. 

Part of the reason was because it was legal counsel's opinion that the way the department stipend was being paid did not meet Fair Labor Standard Act requirements.  It had been this way since the 1980s apparently.  The Borough Council felt that we should do things the legal and correct way, which prompted the beginning of the construction of the ordinance.

Q. What prompted the proposed borough ordinance that would apply to firefighters? How are firefighters classified under the proposed ordinance?

A. (Along with the above), there were several areas where Borough Council needed to clean up the current Borough ordinances for the fire department.  The Borough has always held the position that we have a volunteer fire department, which should be held as a separate entity from the Borough Government.  This is how the law works. 

The only professionally paid fire departments in the Lehigh Valley are Easton, Allentown, and Bethlehem City Fire Departments.  Every other department is considered a volunteer department. 

Many of the departments pay stipends to offset costs for the fire departments and provide for some type of incentive for the volunteers, as there is a great amount of training and work that goes into being a firefighter.  Council has always recognized this, as it's not as simple as just picking up a hose and spraying water at a fire.  Council felt that paying a stipend and continuing to pay a stipend is beneficial to the entire community, however, there was never an intention that the firefighters would be employees.

Council has worked with the leadership team of the Fire Department throughout the entire process.  Council was open throughout the process and did everything they possibly could to make sure that the fire department's voice was heard and addressed every single concern legally possible that was voiced by the fire department. The ordinance was formed so that there was very little impact on firefighters. They would still receive stipends and everything else they have ever had. The changes were procedural and structural in terms of how the department operated overall and better defined the department in its relationship with the Borough. 

The ordinance was written to be in line with the vast majority of every other volunteer fire department in Pennsylvania.  The ordinance included free accounting services by the Borough if the department chose.  It included almost every request by the fire department as well.  We spent approximately 9 months working on this ordinance with the department.

Q. What is the Emmaus Firemen's Relief Association and how much does it get each year?

A. The Emmaus Firemen's Relief Association is an organization created that consists of volunteers.  Each year, the Borough receives approximately $80,000 in Foreign Firefighter Tax State Aid from the Commonwealth of Pennsylvania.  Because it is our position that the Emmaus Fire Department is a volunteer fire department, we give the money to the Firemen's Relief Association every year.  They, in turn, do with it as they please. 

There are guidelines and rules that they must follow under the state laws, however, the money is usually spent on equipment for firefighters, additional vehicles, etc.  If the department were treated as a paid fire department, the Borough would keep the money and use it for the fire department under the same guidelines, only we would be making the decisions with the money rather than the Volunteer Relief Association.

Source: Emmaus Patch