Printed in the July 2010 edition of NORTHEAST PENNSYLVANIA BUSINESS JOURNAL

The first half of 2010 has been filled with optimism compared to the challenges we all faced in the commercial and industrial real estate market in 2009. We are seeing an increase in leasing activity and small business is starting to move once again. Fellow commercial brokers all over NEPA to whom I speak are all reporting similar activity. It appears that we are all seeing signs of a slow but positive recovery.

But what is holding us back from really breaking loose? Certainly the conservative nature of commercial lenders in this economy is a big part of it. We are finding it necessary to work harder to find conventional funding for commercial deals and are being forced to explore secondary and/or creative financing options.

The other factor is the lack of any significant job creation. This is not only a local or regional problem but a national problem as well. There are fewer new companies starting or expanding in this economic climate and our existing companies/employers are in survival mode.

For so many reasons, it is critical that we don’t waste the opportunities we have to attract new companies to our area. There has been some recent interest in our area from international companies and they would bring quality jobs to our area. Our region has so many advantages over other areas around the country due to our strategic location, our highway infrastructure and our available job force.

Part of what’s holding us back from attracting these companies is that Pennsylvania is getting the reputation as a state that is not “business friendly.” The regulatory process has become so difficult and has added so much time and expense to the entitlement process that we have lost out on opportunities for thousands of jobs in recent years. Developers can’t afford to endure this process and we have lost companies to other states for this reason alone.

I wrote a column about this problem back in February. The column generated such a positive response from the community that I realized my opinions were shared by many others. The next economic development marketing meeting I attended brought more discussion and a longtime friend and client challenged me to do something about the problem. With the support of Chuck Leonard and others, Monroe County’s Citizens Against Excess Regulation was hatched.

Our first meeting was just April 1 and although the word was spread through a small group of people via phone calls and e-mails, the concern and interest from the community was evident as 65 people attended the meeting!

The buzz words for the meeting were simple…accountability, communication, action, and balance. During my opening remarks I made it very clear that this group was not about selling or developing real estate. It was about striking the proper balance between economic development and the environment. The current level of regulation is out-of-control and far too subjective. We quickly formed three committees: Penn Dot, Pa. DEP, and a Legislative Committee and we all agreed to meet every three weeks, as well as daily communication online. There is an attorney and a civil engineer on each committee.

We soon adopted the following mission statement:
“To achieve binding and timely review of Pocono Area Land Development permits through collaboration with land development, elected and appointed agency officials where all recognize the need for balanced growth and accountability to the Constitution and enabling laws of the United States and the Commonwealth of Pennsylvania.”

This organization has been in existence for less than 60 days and we have already grown to over 100 community members with more signing up each day. The diversity of the group is powerful. We have educators, attorneys, physicians, business owners, and various citizens from all occupations. This has quickly become a true community effort.
We have already formulated a strategic plan to tackle these problems head on. We will work with our current local government officials and legislators to strive for more balanced and less subjective policies, which will make the entitlement process less expensive and more efficient. The current policies and many of the proposed changes are adding unnecessary time and expense to good projects and causing prospective employers to pass on our area. We firmly believe that we can strike a balance between the environment and economic development, both of which are critical to maintaining the quality of life we enjoy in our beautiful area.

Look for more news and results from Monroe CARE very soon. This effort has already attracted the attention of other groups with similar goals statewide. I hope that groups like ours can convince our current and future legislators that this problem is a serious threat to our region and take immediate steps for the reform in the policies of the regulatory process that is needed…and needed now! For more information about Monroe CARE, you can contact me directly at michael@baxcommercial.com.

Printed in the July 2010 edition of NORTHEAST PENNSYLVANIA BUSINESS JOURNAL

Search Reference #