A Competitive Agenda for Renewing the Cities of Northeastern Pennsylvania
Strategies And Recommendations To Implement The Brookings Institution Report: “Back To Prosperity: A Competitive Agenda For Renewing Pennsylvania”
J o I n t U r b a n S t u d I e s C e n t e r
7 South Main Street, Suite 201 Wilkes-Barre, Pennsylvania 18701 T: 570.408.9854 F: 570.408.9854 W: www.urbanstudies.org
Staff
Teri Ooms Marla Doddo Joseph Boylan Executive Director Development Coordinator Research Analyst
The Joint Urban Studies Center The Joint Urban Studies Center was established to provide essential research, analysis, and consultation to small and mid-size cities aiming for full participation in the new economy of the 21st century. The Center mobilizes the resources of regional institutions of higher education to engage communities in planning that is informed by research, energized by broad participation from stakeholders in the community, and validated by successful implementation. As the managing partner in the Center, Wilkes University is joined by King’s College, College Misericordia, Luzerne County Community College, Penn State Wilkes-Barre, and the University of Scranton.
Note The views expressed here do not necessarily reflect those of the educational partners, their offices, trustees or board members, or private businesses that fund the Joint Urban Studies Center (JUSC) or the staff of the JUSC.
Acknowledgements We would like to acknowledge the Joint Urban Studies Center Advisory Board for its time, effort and commitment to this region:
William P. Montague, Founder Jim DePolo David Lee Mark IV Industries Commonwealth Telephone United Way of Wyoming Valley Enterprises, Inc. Tim Gilmour, Ph.D., Chairman Michael MacDowell, Ph.D. Wilkes University Patricia Donohue, Ph.D. College Misericordia Luzerne County Community College William B. Sordoni, Vice Chairman Melanie Maslow Lumia Sordoni Construction Company Rusty Flack Maslow Lumia Bartorillo Advertising Diamond Manufacturing Thomas Baldino, Ph.D., Chairman Clifford K. Melberger Academic Council Jeffrey Folk, M.D. Diversified Information Technologies Wilkes University Geisinger Thomas J. O’Hara C.S.C., Ph.D. Steve Barrouk Mary C. Hines, Ph.D. King’s College Greater Wilkes-Barre Chamber of Penn State Wilkes-Barre Scott Pilarz, S.J. Business and Industry William Host, M.D. University of Scranton John Cefaly Wyoming Valley Health Care Russell Roberts Cushman & Wakefield Systems Bohlin Cywinski Jackson Denise S. Cesare Thomas E. Lawson Eugene Roth Blue Cross of NEPA Borton-Lawson Engineering Rosenn, Jenkins, and Greenwald Scott Dagenais William Leandri Susan W. Shoval M&T Bank Huntsville Executive Search GUARD Insurance Group
Research Team: Joseph Boylan, Marla Doddo, Elvira Illiano, Onur Kalar, Teri Ooms, Lori Solomon, and Kerry Zellner.
Table of Contents
Table Of Contents
Executive Summary 4
The Brookings Institution Report 9
A Profile of Northeastern Pennsylvania 10
Why Does This Report Matter to the Cities of Northeastern Pennsylvania? 12
Summary of Findings by the Brookings Institution 13
Local Recommendations 14
A Process for Moving Forward 30
Appendix: A Profile of Northeastern Pennsylvania 33
Conclusion 42
Endnotes 43
EXECUTIVE SUMMARY PAGE 4
Executive Summary
The Brookings Institution Report identified five key areas (see below) that the Commonwealth of Pennsylvania needs to address in order to revitalize the economy. The Brookings Institution based its recommendations on statistical data and interviews with key business, government, and non-profit leaders. Brookings also completed a review of the state’s investment policies, economic development practices, and economic trends.
Brookings divided the state into regions or Metropolitan Statistical Areas (MSA). The northeastern region is made up of Scranton/Wilkes-Barre/Hazleton. The two counties, the major cities, and the majority of the municipalities in this region all face the same difficulties, and mirror the five challenges affecting the state as a whole.
Brookings defined five major statewide initiatives that should be adopted in each region to address the challenges that the state of Pennsylvania faces. They include:
• Planning for a more competitive, higher-quality future. The Commonwealth should improve Pennsylvania’s state-local planning systems to enable its regions to promote sound land use and economic competitiveness on a more coherent basis.
• Focusing the state’s investment policies. Pennsylvania should make the most of its significant infrastructure and economic development spending by targeting its resources on the state’s already older, already-established places.
• Investing in a high-road economy. Pennsylvania should invest in the workers and industries that will help its regions produce a more competitive, higher-wage future.
• Promoting large-scale reinvestment in older urban areas. Pennsylvania should make itself a world-leader in devising policies and programs to encourage wholesale land reclamation and redevelopment in the regions’ cities, towns, and older suburbs.
• Renewing the state’s and regional governance. Pennsylvania should promote much more regional collaboration and cohesion.
The Joint Urban Studies Center (JUSC) focuses this study on northeastern Pennsylvania. For the Scranton/Wilkes- Barre/Hazleton MSA, the Center created a list of in-depth recommendations that fall under each of the five statewide initiatives identified by the Brookings report. JUSC’s recommendations are suggestions that could be adopted and implemented by local governments; non-profits; higher education institutions; K-12 schools; and business, industry, and civic/service groups in northeastern Pennsylvania.
PAGE 5 EXECUTIVE SUMMARY
JUSC precedes the list of recommendations with a section that profiles the region; highlights the problems with the unbalanced age demographic, low “higher education attainment,” inadequate job base, and population loss; and explains their impact on the wealth in this region and how they are interrelated.
JUSC also explains why it is so important for this region to take action to revitalize its economy based on the impact such a turnaround could have on each resident. JUSC believes it is important to enhance the quality of life and increase the standard of living for our residents. Concerted action is important because — during the next decade — this region will grow as a result of immigration from the major metropolitan areas. Putting this region on solid footing will allow us to take advantage of the opportunities such growth brings. It also gives us the opportunity to address some of the challenges that come with this type of growth.
JUSC suggests that the reader also review the JUSC study: “Why Aren’t We Average?” This research paper studies the qualitative and quantitative issues from 1950 to 2000 that place our region below average on many of the key census indicators. This companion study addresses the economic consequences of our failure to evolve with the rest of Pennsylvania and the nation.
It is highly recommended that mobilization and action begin immediately. We must also recognize that — even with sweeping changes — expecting overnight impact is not realistic. JUSC pledges to continue to provide data, customized strategy development, and best practices to assist stakeholders in moving the region forward. JUSC’s expertise lies in working with clients (governments and nonprofits) individually, to provide customized strategies for implementation after a thorough review of the client, community, or organization.
EXECUTIVE SUMMARY PAGE 6
There is no linear progression for acting on any of JUSC recommendations. As a matter of fact, implementation should commence as soon as possible, with each of the stakeholder groups working collaboratively and/or independently based on the various recommendations. JUSC plans to convene a meeting of the County Commissioners (of both counties) and the mayors of the largest cities in the region to discuss specific regional approaches to solving problems during 2005.
JUSC is recommending some strategies that could be politically charged and controversial. Specifically, these include consolidation of local government services, and collaboration on zoning codes, land use, and transportation plans. JUSC recommends holding local government, business, and residents to higher standards in compliance with codes and regulations on property maintenance, and streamlining local government processes to be more business friendly and more automated. Specific strategies are outlined in more detail later in the report.
Three themes reoccurring throughout JUSC’s initial reports are: economic development, education and workforce development, and the practice of regionalism. JUSC believes that these three themes and the corresponding strategies are the foundation for rebuilding our region.
Economic Development Mixed-use, high density developments and urban villages should be a part of the planning to contain sprawl. Neighborhoods with mixed housing units at a variety of price ranges have proven to be the most stable neighborhoods across the country.
It is important to remember that strong economic growth comes from the investment of new money into an economy, not the redistribution of existing dollars. Specifically, this means that we need to encourage “developers of last resort,” i.e., our chambers of commerce, counties, and municipal government to invest in projects in our communities. This task is not easy when money is needed to provide basic municipal services and social service programs; however, this type of development demonstrates a commitment to improving the area and enhancing its image. What’s more, this development becomes a catalyst for new development from the private sector.
Many successes of economic recovery in communities around the country are attributed to this process of
* Photo courtesy of Greater Wilkes-Barre Chamber of Business & Industry
PAGE 7 EXECUTIVE SUMMARY
development. Here in northeastern Pennsylvania, we are beginning to see major, private development taking place now that we have begun investing in the area. Much of this development is in our downtowns. This investment is another reason why serious consideration should be given to tourist amenities; retail development; and arts, culture, recreation, and venues. This step will increase the value of our downtowns and create more economic impact.
Economic development is crucial to our region’s growth and should be invested in heavily. A balanced and coordinated approach to economic development should be practiced. Specifically, programs that support business creation, expansion, and retention, as well as business attraction, should be encouraged. Many local groups are working on these strategies, and their efforts must be more intense and aggressive to invoke the necessary changes. In order to maximize these efforts, other stakeholders should create an environment that is conducive to promoting economic development. We already cited local government strategies that could support these efforts.
Education & Workforce Development In particular, education and workforce development are areas in which a number of stakeholders from education, workforce investment agency boards, social service agencies, and parents must be more proactive. School administrators, teachers, and parents (the education triad) must focus on creating a generation of learners. Expectations for our children’s education attainment need to be higher. Furthermore, it is imperative that we increase the number of residents who move on to higher education or post-secondary technical training. As a region, we will never compete for higher-wage-paying jobs without an appropriately educated and skilled workforce.
Despite the complexities of the school systems, unions, and various federal and state mandates, there are innovative solutions that can be gleaned from school districts across the country to improve public education (a short list appears in the recommendation section of this paper). Parents must see the value of continuing education, encourage it in their home, and stress the importance of learning in the early grades. Educators should encourage average and above average students to strive for greater excellence. Administrators need to provide the systems, the freedom, and less bureaucracy for this to happen. In other words, education needs to be educators’ primary focus — not ancillary services that could be privatized. Sports, while important to development, should not be the main focus of a student’s educational experience.
* Photo courtesy of Greater Wilkes-Barre Chamber of Business & Industry
EXECUTIVE SUMMARY PAGE 8
Workforce development agencies should collaborate more with businesses to determine the skills needed for jobs. These agencies should also work more with community colleges and technical schools to create general and customized training. Manufacturing training centers present another collaborative opportunity to develop workers’ skills.
Regionalism As you read through this paper, one common theme is present in a variety of the strategies. This theme is the practice of regionalism or collaboration to solve problems and enhance opportunities. The economic interdependence of Lackawanna and Luzerne counties is significant, and it will be described in an upcoming JUSC release on “Bond Issuances: History, Trends, and Impacts.” People and businesses move across jurisdictional lines every day to make their business more profitable and to fulfill the need for goods and services in their personal lives. Therefore, as individuals and private sector businesses, we already live and work on a regional level. There is no Democratic or Republican way to pick up the trash, or deal with parking and transportation issues.
Most municipalities in our region face similar problems. The resolution of these problems should be the impetus for our local governments to work together. Governor Ed Rendell has recognized the power of acting regionally and devised most of his revitalization strategies to work on a regional level. JUSC will be releasing a separate paper titled “Regionalism,” in spring 2005. The paper will highlight successful regional initiatives implemented throughout the country that this region can use to enhance its own unique set of attributes.
Northeastern Pennsylvania must reinvent itself. What worked in the past is no longer sufficient in a global, technologically advanced, and innovative economy. Change must occur, and in some cases, it must be radical change. Leaders should change the way they think and be willing to extend themselves beyond normal boundaries.
This region must embrace change to turn its economy around. What this means is a departure from the traditional ways of doing business. Instead of concentrating on each individual entity, we should focus on the region.
PAGE 9 THE BROOKINGS INSTITUTION REPORT
The Brookings Institution Report The project was funded by the Philadelphia-based William Penn Foundation and the Pittsburgh-based Heinz Endowments. The Brookings Research Team worked with its Pennsylvania partner, 10,000 Friends of Pennsylvania, and coordinated nine regional forums that served as an opportunity for Brookings to see the diversity within the regions of the Commonwealth, as well as interview key stakeholders during its information gathering stage. After listening to local residents and conducting statistical research, the Brookings Team was armed with the information it needed to analyze the state and identify some key issues affecting the state’s inability to meet the national averages on growth and prosperity.
In December 2003, the Brookings Institution published its “Competitive Agenda for Renewing Pennsylvania.” Accompanying that document were eight regional profiles identifying trends, their causes, and broad strategic goals for each region to implement.
* Top photo courtesy of Wilkes-Barre Chamber of Business & Industry
A PROFILE OF NORTHEASTERN PENNSYLVANIA PAGE 10
A Profile of Northeastern Pennsylvania The Appendix to this document contains a summary of specific trends that have taken place in this region. The summary focuses on population, education, income, and employment as key indicators of major issues impacting our Metropolitan Statistical Area (MSA) of Lackawanna and Luzerne counties.
Some of the key trends and the impact they have on our region are described in the following paragraphs. First, we have an increasing elderly population. This population sector consumes more resources from the community than it contributes, largely because this population group is on a fixed income and the recipient of many community programs and services.
Next, our younger population, ages 25 to 34, has been declining, which means that we are not placing as many people into the workforce. Without a growing workforce, the tax base isn’t increasing, and there is little or no reinvestment into our community. The segment of the younger population that is leaving is primarily those who have completed their education beyond high school. Some of these individuals have finished with college degrees.
Education is another component. This region is rich in higher education institutions, yet only a small portion of our residents go on to college. Our local schools primarily educate non-residents and then export them back to where they came from.
Unfortunately, this “out-migration” of young adults impacts income levels. With only a small percentage of the current population possessing college degrees, we have primarily lower incomes, which impacts the tax base,
* Photo courtesy of Greater Wilkes-Barre Chamber of Business & Industry
PAGE 11 A PROFILE OF NORTHEASTERN PENNSYLVANIA
disposable income, and reinvestment into the community. This MSA is significantly lower than the state averages for individual or household income.
Employment opportunities are another determining factor or cause. Our local economy is primarily a blue collar economy. For an overwhelming majority of positions, higher education degrees are not required, thus suppressing our income levels. Another disturbing factor about employment in our region is that even our blue collar economy is not diverse enough to protect it from changing economic times. Through the years, this region has been plagued by a number of major plant closings and downsizings, leading to higher unemployment numbers. Based upon comparison to the national average, this region is labeled “distressed,” by the federal government.
All of these factors are interrelated. For example, if we had more employment opportunities in this region requiring a college degree and competitive pay, we could retain more of our educated youth, thereby increasing income levels in the region. Conversely, we may not be successful in attracting high-wage paying companies because we have a limited supply of highly educated people. This quagmire provides a unique set of issues for the region in developing and prioritizing solutions. However, all is not lost.
Northeastern Pennsylvania has been referred to as a region. This region is also the MSA. Brookings also identified its key issues as regional problems. Governor Rendell identifies some of his new programs as regional solutions. The key is regional action. We must look beyond our jurisdictional and political boundaries to work on problems collaboratively. Very few issues are isolated to one community in particular. In other words, the key to our success is to work collaboratively on broad issues impacting the region, work with neighboring cities on common issues, and work together to maximize the opportunity and the existing assets.
Businesses and people work, play, shop, and eat daily without regard to political boundaries. Therefore, the obvious solution is to plan for our future and operate in the present under that same premise.
* Photo courtesy of Wilkes-Barre Chamber of Business & Industry
WHY DOES THIS REPORT MATTER TO THE CITIES OF NEPA? PAGE 12
Why Does This Report Matter to the Cities of Northeastern Pennsylvania? Envision a region where there are sufficient jobs for residents and where residents have a variety of job opportunities. Imagine a region where people could get appropriate healthcare to meet the needs of their families. Northeastern Pennsylvania could be a region where our children grow up safely, are provided with a high quality education, and obtain employment that would pay equitable wages. Envision a region where the city or county could provide essential services to residents without continually raising taxes and fees or acquiring new debt. Envision filled storefronts in downtowns, energized public education, less crime, fewer drugs, and more recreation, entertainment, and culture. Envision a region, where tourists and business people come because of the many assets we possess, and then decide to become residents.
If this sounds appealing, then it is incumbent upon all of us to put aside personal agendas, the need for power and control, and to work for the betterment of all. If we want more of our neighbors to be “haves” as opposed to “have nots,” and if we want our children and grandchildren to have a better life, then we need to plan for our future strategically. We need to be innovative and creative — because business as usual isn’t working.
PAGE 13 SUMMARY OF FINDINGS OF BROOKINGS REPORT
Summary of Findings of Brookings Report Scranton/Wilkes-Barre/Hazelton, like Pennsylvania’s other regions, has the potential to build a very different future — if the state helps the region focus its efforts; leverage the assets of its cities, towns, and older townships; and overhaul its most outdated and counterproductive practices. The Brookings Institution report, “Back to Prosperity” concludes that the Commonwealth should embrace five major strategies to bolster Scranton/Wilkes- Barre/Hazelton and its other regions’ capacity to grow and successfully compete:
Plan for a more competitive, higher-quality future. The Commonwealth should improve Pennsylvania’s state and local planning systems to enable its regions to promote sound land use and economic competitiveness on a more coherent basis.
Focus the state’s investment policies. Pennsylvania should make the most of its significant infrastructure and economic development spending by targeting its resources on the state’s older, already-established places.
Invest in a high-road economy. Pennsylvania should invest in the workers and industries that will help its regions produce a more competitive, higher-wage future.
Promote large-scale reinvestment in older urban areas. Pennsylvania should make itself a world leader in devising policies and programs to encourage wholesale land reclamation/redevelopment in the regions’ cities, towns, and older suburbs.
Renew the state’s and regional governance. Pennsylvania should promote much more regional collaboration and cohesion.
LOCAL RECOMMENDATIONS PAGE 14
Local Recommendations As a result of these five recommendations, JUSC has developed a few additional statewide strategies and regional strategies for implementation to assist in our recovery.
Plan for a more competitive, higher-quality future. Zoning Existing zoning codes should be enhanced or new codes could be written to encourage sustainability and to discourage sprawl. Specifically, mixed use, high density projects with allowance for green space and green building in downtowns should be encouraged. Development that promotes walking and biking as, opposed to driving, should also be encouraged. Ensure that all pedestrian walkways are compliant with the Americans with Disabilities Act (ADA). Allow hospitality businesses to set up sidewalk services. Develop codes that allow businesses to put potted plants and flowers in front of their storefronts. Require builders/developers to put conduit in the ground (if it does not already exist) or pre-wire structures for high speed Internet access.
Sign Ordinances Develop and enforce signage requirements to ensure consistency in size and type to enhance the aesthetics of the community; this requirement doesn’t mean that all signs should be the same. Communities can adopt policies in which the size of signage relates to the speed of traffic on the street, as opposed to the size of the facility’s road frontage. Therefore, in downtowns where there is more “walkability,” signs can be scaled down.i
Building Facades Develop design standards (for new construction and rehabilitation) to coordinate with the developing image of the community to create a sense of place. Preserve historic fronts, and encourage and provide incentives to property owners to enhance and maintain existing facades similar to the Façade Improvement Program in Hazleton (FIP). Local Community Development Corporations (CDCs) can develop programs in towns where the new Elm Street money can’t be secured. In addition, CDCs can implement this program in larger cities to enhance limited Elm Street funding. Use enforcement guidelines where appropriate. Adopt design standards that ensure safety and mobility for pedestrian and non-motorized modes of transportation.
* Photo courtesy of Wilkes-Barre Chamber of Business & Industry
PAGE 15 LOCAL RECOMMENDATIONS
Mixed-Use Development Mixed use development allows for the creation of higher density developments, known as “urban villages” in urban areas.
These are buildings with a combination of commercial and residential uses. They are one of the best mechanisms for enhanced land use and transportation. In addition, they offer more alternatives to downtown housing to encourage urban dwelling. • Rehabilitate old buildings into trendy loft apartments, offices, or unique clubs and restaurants. • Restore historic old homes and buildings to their natural luster even if they are located amidst a traditional business district.
Provide incentives for this type of development. The aim should be for high density with appropriate parking considerations.
Housing Emphasis in this region should be on increasing home ownership, particularly in the urban areas, and addressing unique mixed use opportunities for apartments in suitable areas. Housing beautification incentive programs could be used by cities, counties, and non-profits to assist homeowners in improving and maintaining the external structures and landscaping of their home (i.e., Elm Street). A variety of funding mechanisms can easily be put into place to promote homeownership, or for home restoration or beautification.
Focus the state’s investment policies.
Live Near Where You Work The Commonwealth of Pennsylvania could implement tax credits for individuals to live near where they work and provide incentives to use public transportation. This incentive would help decrease sprawl and congestion by promoting more urban living.
State Technology Initiatives The Commonwealth should streamline business activities not only by providing online applications for permits and registrations, but also by providing for electronic submission of those applications. Pennsylvania should also provide technology grants to municipalities and counties to encourage communities to establish their own “e- government” operations. In 2004, Michigan moved to implement a new streamlined permit system. The system is web-based and allows businesses seeking state-issued permits to apply on-line. Michigan joins several other states that already have this mechanism in place. This “business friendly” strategy could assist in the state’s business attraction efforts.
LOCAL RECOMMENDATIONS PAGE 16
City Revitalization The state of Michigan combines its community improvement grants, loan programs, and assistance programs into a single “resource toolbox” that can be used by cities and communities for revitalization projects. The program also creates a new “catalyst grant” that serves as a flexible tool for organizations engaging in neighborhood revitalization projects. These grants were created by combining existing grant programs from five different state agencies and departments. Projects are evaluated on their potential to succeed in drawing citizens and jobs to a particular neighborhood.ii
Priority Funding Areas (PFAs) According to Maryland legislation, PFAs are programs in which the state offers subsidies for new roads, water, and other infrastructure for projects that are within municipalities, within the I-495 and I-695 beltways, or within other areas that meet specific criteria. The Maryland legislature originally designed PFAs as areas designated by the state, in cooperation with existing communities, where the government would like to encourage and support urban growth. PFAs are the main focus of the Smart Growth Act because they encourage revitalization of cities and towns and help preserve natural environments by discouraging growth outside their designated areas. The premise behind PFAs is to attract local business owners and homeowners with incentives to build or restore historical properties in existing communities instead of “sprawling” outward.iii
The Maryland Heritage Preservation tax credit is part of the PFA designed to attract businesses and homeowners to relocate into historic homes and buildings in existing communities. The credit is worth 20% of the redevelopment costs for both homes and commercial buildings. The availability of these credits has made the program successful. The credit is refundable, which means that developers can receive their credit as soon as the work is completed. This credit has an immediate impact on a developer’s balance sheet. The program has proven beneficial for redevelopment projects in older communities and declining neighborhoods. Initial results show that the taxes these projects will produce far outweigh the investment costs of providing the tax credit.
In June 2000, the Pennsylvania legislature approved House Bill 14 and Senate Bill 300. The two bills were slated to “offer strong new tools for counties and municipalities to plan for growth and conservation of resources, and an historic step forward to responsible land use in Pennsylvania,” according to the website www.10000friends.org.
Some local examples include: “Luzerne County Flood Protection Authority” of March 31, 2001, and the “King’s College: Wapwallopen Creek Project” of August 7, 2002.iv The downside of House Bill 14 and Senate Bill 300 is that there has been no direct connection to rebuilding the metropolitan area with the resources of these bills. An amendment identifying criteria for urban redevelopment would help to focus this legislation in priority growth areas in each region.
PAGE 17 LOCAL RECOMMENDATIONS
Hospitality Development The city of Wilkes-Barre, in particular, needs to develop a strong hospitality attraction campaign, through attraction of various chain restaurants or bars, or cultivating local entrepreneurs to create businesses in the area. Wilkes-Barre can develop a national marketing attraction program to focus on public relations and personal sales. The Wilkes University Small Business Development Center, partnering with chambers of commerce, banks, and the U.S. Small Business Administration (SBA) in the various communities they serve in Luzerne County, could develop specific entrepreneurial training programs to assist in the development of more start-ups. The business and entrepreneurship divisions of the local colleges could collaborate to develop student businesses in the downtowns. Scranton, Wilkes-Barre, and Hazleton have the potential to be successful college towns. Amenities that are attractive to the 18-22 year-old market also need to be in place. This age group patronizes coffee houses, bars, clubs, trendy restaurants, boutiques, and bookstores.
Downtown businesses should actively market to the student population to encourage the students to go “off- campus” for amenities. Discounts or “volume” oriented programs that entice students to spend are beneficial for the business community, as well as of convenience and value to the students. Swipe cards that provide students with opportunities to buy from merchants without having to carry cash are also appealing. If community businesses post job openings at each campus, students would be more likely to seek employment at these businesses, and the businesses will have more applicants to choose from. This strategy would help to create a community-campus link. Student orientation weekends that include tours of the downtown area (or a downtown fair to introduce students to local businesses) and information packets from businesses are tools to educate the students.
Emphasis on hospitality and retail development will also help to retain the current downtown worker population in Wilkes-Barre. Many of the daily workers leave in their cars at lunch time to patronize restaurants and shopping outside the downtown or leave immediately at the end of the workday.
Downtown Scranton has had more success than Wilkes-Barre to date in building its downtown hospitality market for office workers, and has commissioned a strategy to develop more links between downtown merchants and local colleges and universities. The downtown mall and theaters offer opportunities for students, residents, and workers alike.
Regional Tourism Marketing Program Individual communities and counties can market their amenities through their own websites and brochures. A regional marketing effort should be designed to promote both day and overnight visitors and address/promote more local use of amenities. In addition, as convention and conference facilities are built, a comprehensive marketing
LOCAL RECOMMENDATIONS PAGE 18
strategy to attract small to mid-size conferences should be implemented.
The universities and colleges in and around our region’s downtowns bring new students and their families from outside the area. This is a tourism opportunity that the region has not planned for. The community should partner with the colleges to hold periodic family weekends. This partnership would bring parents into the region, most likely overnight. Being provided with appropriate venues, lodging, and hospitality within walking distance of the schools, parents would most likely stay in the downtown for two days.
Arts & Culture and Recreation & Venues Communities should establish Urban Entertainment Districts. A success story in Kansas City demonstrates how it established a $454 million bond issuance aimed at revitalizing more than 30 acres of blighted property in the city. The bond was approved by the voters. Movie theaters, restaurants, entertainment venues, housing, lodging, offices, and retail development were a priority to expand the city’s tax base. The city offered gap financing in a variety of forms, depending on the project, including reduced land prices, abatements, equity partnerships, grants, bonds, and zoning variances.v
In the Scranton/Wilkes-Barre/Hazleton MSA, redevelopment projects such as the downtown theater complex, Riverwalk and the Southern Union building, as well as the redevelopment of the Altamont Hotel, should be encouraged. Creating more amenities in the urban core will attract users and thereby create economic impact that can be used to pay off debt or be reinvested in the city.
As a result of diverse, frequent, and well-organized events, more people would come to the downtown areas. Vacant storefronts could be utilized by artists as temporary studios. Craft fairs and an indoor farmer’s market could be housed in storefronts during the winter months. All of these uses would provide a positive impact in the downtowns ___ first by utilizing vacant storefronts and second by attracting people who would not typically come to shop or visit. The city of Scranton has been successful in coordinating many functions near the courthouse that draw visitors to the community on weekends. Wilkes-Barre hosts a few functions on the Square on the weekends and during the week; the Farmer’s Market is one such success. Hazleton has a FunFest street fair, and all these cities have outdoor New Year’s Eve celebrations.
Mural projects are another way to encourage community involvement, beautify the area, and create a tourism venue. One need only look at the success in downtown Philadelphia to see the impact. Philadelphia’s mural project is quite expansive. The city sponsored community days in which residents and children could come and paint the murals. Neighborhood forums helped frame the vision for some of the murals. Philadelphia has developed a tourism program based on the mural project.
In the future, downtown development projects should include specialty museums (science and history themed), children’s discovery centers, and performing arts centers, such as black box theaters. These would not only meet the needs of the residents, but also create more tourism assets.
Urban amenities equate to a strong quality of life. Liveliness, excitement, entertainment, culture, and the distinctive features of a particular place — the most basic attractions that cities have to offer — are an important tool for encouraging, maintaining, and increasing private investment. Places that are attractive to people will have the competitive edge for a job-creating environment.vi
PAGE 19 LOCAL RECOMMENDATIONS
Local Pride and Local Buy Program Much of the region’s marketing is done for business attraction purposes, so it is directed outward, specifically to the corporate real estate community, brokers, and consultants. Yet internally (among the residents) an attitude of negativity prevails. There is a perceived lack of quality of life, and little or no enthusiasm for the small, positive changes that have been made, and no desire to embrace change. This defeatist attitude will hinder positive, strategic growth if left to permeate our region. Perhaps the region, in partnership with local print media, television networks, and radio, can create a campaign designed to market the attributes of this region to its residents.
Further, communities within the MSA could implement a “buy local campaign” to encourage residents to shop within this MSA, because a large number of people still travel to Allentown or Philadelphia to shop.
Crime Personal safety plays a key role in determining where people want to live. Even low crime rate areas with a perception of high crime (city of Wilkes-Barre) create a barrier to revitalization. Former New York Mayor Rudy
Giuliani taught the world that a community can improve even by going after minor infractions. We can overcome the appearance of deterioration and chaos that provide the foundation for crime by cracking down on smaller infractions.
Community policing is a tool that could be implemented in neighborhoods that support crime watches — tailored to the protection of the individual neighborhood. This effort is usually successful when there is coordination and communication between the police force and the community groups.
LOCAL RECOMMENDATIONS PAGE 20
Crime prevention through environmental design, such as lighting, alternative walkways, and parking, could be added to building requirements on development projects.vii
Invest in a high-road economy.
Employment Training Program The Commonwealth should create a state set-aside to compensate companies for putting employees through continuing education or customized training. The state can certify existing higher education institutions as acceptable providers and reimburse the company for part or all of the training costs after an employee has successfully completed the requirements and remained on the job for 180 days. This program can be used as a tool to prepare entry-level workers for employment in specified industry clusters or for incumbent work training. This strategy has worked well for the state of California.
Gigabyte Initiative The state needs to develop a long-term technology plan to assist all communities in the Commonwealth to have high speed Internet access for businesses, homes, and schools. Another measure would be to develop wireless capabilities in public places.
In November 2004, Governor Rendell signed House Bill 30. House Bill 30 is an expansion of Chapter 30, which was enacted in the Pennsylvania General Assembly in 1993. What House Bill 30 does is guarantee that every Pennsylvanian has access to affordable, basic telephone service and to provide every Pennsylvanian with access to broadband service, no later that 2015. The expansion comes on the heels of Chapter 30 which expired on December 31, 2003.
Social Service Issues Local non-profits can apply for federal Community Service Block Grant (CSBG) Act funding. Created in 1981, this grant provides funding to Community Development Corporations (CDCs) to offer technical and financial assistance for economic development activities. These activities are designed to address the economic needs of low-income individuals and families by creating employment and business development opportunities.
PAGE 21 LOCAL RECOMMENDATIONS
Local Workforce Investment Agency Involvement Local Workforce Investment Boards (WIBs) should include members of higher education to define regional issues regarding workforce development. WIBs should create an annual labor outlook that surveys employers on employee recruitment, training needs, and growth projections. This survey will enable the community to respond better to employer needs and help the local community colleges develop more effective customized training or certificate programs. The WIBs could also compile statistics of its client base to analyze the match or mismatch between skills needed and skills available in the region. The WIBs should invest in computerized kiosks to place in malls or downtown areas to encourage online job applications. The WIBs and their partners could hold registration for events, classes, and youth programs through the kiosks. All information on programs and services should also be made available in Spanish.
The local WIB should work in conjunction with businesses, local school districts, and higher education institutions to create a cluster program centered around major industries that identifies the organizational chart, career ladder progression, job description, proper job training, skills, and educational requirements needed by the specific industry for each of its jobs.
In partnership with a statewide foundation, Michigan is providing start-up grants for the initial development of Regional Skill Alliances. These alliances are locally managed partnerships formed to address strategic workforce issues affecting groups of firms operating in the same industry in a specific region. Representatives from K-12 education, economic development, local businesses, community colleges, and universities are part of the alliance.viii
International Development Communities/counties should develop a globalization plan, encourage sister city partnerships, promote exporting, internationalize city halls, build on diversity, get involved in cultural and student exchanges, and make their cities foreign-user-friendly to assist local companies to expand to the international marketplace.ix Locally, small business development centers (SBDCs) and the NEPA Alliance could be utilized to offer technical assistance to small businesses, particularly start-up businesses wanting to enter the international marketplace.
Procurement Communities/counties should develop an online procurement system to promote local small companies’ access to bid for products and services within their home jurisdictions. Local government could implement policies that give preferential treatment to local small businesses. Technical assistance (in the proposal preparation process) or administration of the contracts could be provided free to businesses by the local SBDC network. Through the resources of a Defense Logistics Agency (DLA) grant, the NEPA Alliance provides the same assistance on federal solicitations. Communities/counties could allow businesses to create an online profile so they could respond to Requests for Proposals (RFPs) with minimal effort.
Healthy Communities There are ways to create healthy communities. This is difficult and has failed many more times than succeeded. One way is to encourage walking downtown to shop and dine. Communities can also develop provisions for bike lanes and bike parking for the youth of the community.
LOCAL RECOMMENDATIONS PAGE 22
Cleaning up and reusing abandoned rail lines can provide hiking and biking paths throughout communities. The Wyoming Valley Wellness Trails Partnership is a local resource that communities could use to implement healthy community plans.
More Entrepreneurial Programs The SBDC programs in the area should continue to market their resources. As one of the best-kept secrets across the country, SBDCs have the resources to encourage entrepreneurship and provide pre-venture training to increase start-up success, as well as provide ongoing technical assistance during a business’ pivotal first five years. SBDCs could tailor programs toward specific industries or target programs geographically to provide intensive, specialized services. The Wilkes University SBDC and the University of Scranton SBDC serve the Scranton/Wilkes-Hazleton Metropolitan Statistical Area.
Business Retention Each urban mayor should implement a “Mayor Visitation” program whereby he/she targets one business to visit either biweekly or monthly. The mayor should be accompanied by the appropriate council member(s), city administrator(s)/manager(s), and various heads of departments within the community, as well as a representative from the Chamber of Commerce and an SBDC consultant. The meeting should include a tour, as well as a presentation by the company about its industry, strength of business, and obstacles for success in this region, etc. This interaction would promote information flowing in both directions, which is beneficial for a community’s successful economic development.
Each Chamber of Commerce should form a Business Retention Team (BRT) that is marketed within its service area. When a business is struggling, it could contact a member of the BRT to gain immediate support. This team could help struggling businesses gain the expertise they need to work through some of their deficiencies. The team would ascertain the nature of the problem, and put together a group of high-level decision makers from local or state government, utilities, and other industry leaders to act as mentors. SBDC consultants, bankers, or other professional service providers could visit with the company and develop an action plan designed to assist the company with its challenges.
Technology Transfer Schools with research capacity could work with the NEPA Institute and the SBDC network for technology transfer opportunities. These organizations could also undergo training to assist in Small Business Innovation Research and Small Business Technology Transfer Program (SBIR/STTR) proposal preparation and administration. These programs fund a billion dollars each year in early-stage R&D projects at small technology companies—projects that serve a federal agency need and have commercial applications.
Small companies retain the intellectual property rights to technologies they develop under these programs. Funding is awarded competitively, but the process is streamlined and user-friendly.
This technology transfer would serve as a foundation for high technology business creation to work hand-in-hand with higher education and as part of a high technology business attraction program. A local organization should also partner with the Space Alliance Technology Outreach Program (SATOP). This initiative would help to transfer space technology into practical applications for small business. Currently, there are only four regional partners in the entire U.S. The closest partner is located in New York state.
PAGE 23 LOCAL RECOMMENDATIONS
Knowledge-Based Economy Establish a program through which low-income families could rent a computer for a nominal monthly fee, and both children and parents could get low-or-no cost training. Federal grants are available for this type of program. Establishing cooperatives with computer manufacturers for equipment donations and asking college students to act as instructors enhance this type of program.
Education K- Ph.D. – Creating a Region of Learners As JUSC researched communities that have been successful in developing a stronger local economy, one consistent strategy has been an initiative to enhance the education system. The more highly educated an individual is, the higher the wages he/she can produce, which in turn filter through the economy. Therefore, our education system must improve. In our low-income, low “higher education attainment” areas including northeastern Pennsylvania, special attention must be given to parents who either don’t see value in higher education or are not in a position to help their children because of their own lack of schooling.
Strategies include:
• Encourage dress codes/uniforms to de-emphasize the social aspect of school. • Challenge Achievers — do for overachievers what “No Child Left Behind” does for underachievers. Develop special classes to enhance skills in a particular subject. Institute a program for fundamentals based on ability, as opposed to age. • Start the study of languages in kindergarten and institute an all-day kindergarten program. • Parental Value of Education — teach parents the value of education so they can instill it at home. Offer programs to help parents help their kids with homework and studies. • Honor the School Board Members — the business community needs to elevate the importance of community service positions, such as school board posts, so that more qualified people get involved. • Allow parents choice of schools through charter schools or vouchers. • Privatize non-educational functions — contract out for food service, cleaning and maintenance, and transportation to bring back the focus to education. • Create an “Adopt a School” program — ask businesses to adopt local K-6 schools and encourage employees to tutor, read, or educate on career opportunities. • Develop Business-to-School Compacts — graduating students are the first pool of potential hires for open positions within local companies. This applies to both high school and college students. • Emphasize math and science for middle school girls to foster their interest level and encourage career development in those disciplines. • Lengthen the school year or require that only full days count toward state mandated minimum day requirements. • Partner with a foundation and the local higher education institutions to establish a program modeled after “Hoop Dreams” that provides high school students with college scholarships and connects them to the regional business community and a network of greater opportunities through a core program of college preparation mentoring, internships, service learning activities, SAT prep courses and ongoing support.x
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More Connectivity – SMART Buildings and SMART Homes Technology-friendly tax codes, more public access to technology centers, and development of a long-range comprehensive technology master plan are all tools communities could use to become more connected. Communities should adopt a code for developers that require developers to provide the conduit for high speed communications when ground is opened for new construction, repair, or rehabilitation, as part of the permit approval requirements.
Promote large-scale reinvestment in older urban areas.
Retail Recruitment Each community should have its own plan to fill gaps in retail development. However, JUSC recommends a regional approach to retail marketing similar to Penn’s Northeast’s strategy for industrial recruitment. Penn’s Northeast is a regional organization focusing on industrial and office business attraction. Penn’s Northeast markets the entire region by leveraging the regional marketplace and its assets to corporate real estate executives and location consultants seeking to site businesses. This option is more a powerful strategy than if each community acted alone. A similar marketing strategy could be developed for retail recruitment.
Greening/Cleaning This region needs to pay more attention to its aesthetics and its environment by: • Improving maintenance of local roads, sidewalks, curbs, and parks • Paying particular attention to the main arteries in a community, as well as the central community • Creating more green space • Using more trees, plants, and flowers as anchors on corners or borders on streets • Continuing to reclaim abandoned mining operations
PAGE 25 LOCAL RECOMMENDATIONS
Studies have demonstrated that retail stores with trees and/or flower pots in front of them have higher retail sales than those without.
Aesthetics and cleanliness help to frame a positive image of a community. This image aids in developing local pride, as well as assisting in business attraction and tourism growth.
Strong Community Services Cities need to ensure that the basic services they provide are done efficiently and effectively. All code enforcement should be proactive. Processes for permitting and planning should be expeditious and established to encourage investment and development. Cities must be pro- business.
Today, local governments must act like entrepreneurs to effectively serve their constituent businesses and residents. Responsiveness, convenience, and strong customer service must be ingrained in the local government’s values.
E-Government Local communities without a website should establish one that allows for certain services to be delivered online (permitting, paying fines, fees, etc.) along with community information, building codes, zoning regulations, public notices, council agendas, etc. Communities could also link with general search engines and property search engines. There should also be links to local resources, tourism, event information, and other community functions. Websites should also be user friendly to potential international users. Certain pages of a community’s website could be translated into other languages. Students from our local universities might be able to assist communities with some of these functions through internships or service learning opportunities.
Public transportation Local communities need to evaluate the current system of mass transit to ensure that routes and stops meet current demand. As buses are replaced, we should move to Clean Natural Gas (CNG) or hybrid fuel buses to maintain air quality. To avoid downtown congestion, we need to encourage mass transit for commuters by enhancing routes and stops, creating parking on the fringe, and make mass transit and parking affordable. Buses should also be outfitted with front bike racks to encourage the use of bikes. State government could also adopt incentives for individuals who use public transportation as their primary means of commuting.
* Photo courtesy of Wilkes-Barre Chamber of Business & Industry
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Green Building Cities should develop community ordinances that require recycled material, natural light, drainage, personal environment managing, and natural light considerations in new construction or rehabilitation of existing structures. The motto should be “Conserve, Protect, and Beautify.”
Renew the State’s Regional Governance.
State Government Operations Consolidation State government could consolidate key state agencies (such as economic development; business and industry, and employer and employee functions) under one agency.
In 2003, Massachusetts enacted a law creating a Development Coordinating Council. The Council’s primary responsibility was to develop policy for the Commonwealth that addressed housing, transportation, capital development, economic development, and the preservation of environmental resources. This Council is chaired by an appointee of the governor. Members of the Council include secretaries of the executive offices of economic development, housing and community development, environmental affairs, transportation, and construction, as well as the commissioners of the department of capital asset management and maintenance, and of the division for energy resources. The chairman serves at the pleasure of the governor and he/she serves as an ex officio member of the governor’s cabinet. The governor appoints advisory members from the water authority, transportation authority, and regional planning organizations, as well as a municipal planning representative and a professional planner.
The coordinated development policy states that the Council will: • discourage wasteful use of land, water, and energy resources; • support revitalization and reinvestment in urban areas while encouraging reuse and rehabilitation of existing infrastructure; • protect sensitive lands, natural resources, and habitat lands; • support convenient and affordable transportation choices; • protect economically productive natural areas, including farmland and forests; • provide an adequate supply of housing for all incomes throughout each community; • encourage a clear and transparent development approval process while encouraging regional planning and regional solutions; • require coordination among state agencies on sustainable growth efforts; and • ensure all state activities are in compliance with the development practices.
Governor Rendell created Executive Order 2004–9 on June 15, 2004, creating an Economic Development Committee of the Cabinet which is similar to Massachusetts’ law but not as comprehensive. This Committee includes all of the secretaries of the various state departments, appointees from the Policy Office, the governor’s chief of staff, and ex officio members as appointed by the governor. The purpose of the Committee is to foster job creation, measure effectiveness of state economic development and tax policy, and promote policies that encourage stewardship and conservation of natural resources.
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In 2003, the governor of Michigan signed Executive Order 2003-14 creating a Department of Labor and Economic Growth (DLEG) to promote job creation and economic growth by centralizing the state’s job, workforce, and economic development functions under one department.
Departments such as career development are also housed in DLEG, along with the regulatory functions of workers’ compensation, construction code division, unemployment, employment relations, tax tribunal, and the liquor control commissions. These departments relate to commercial, business, and workers’ issues. DLEG also added independent functions, such as the Broadband Development Authority, Michigan Economic Growth Authority, Michigan Next Energy Authority, and the Michigan Economic Development Corporation (EDC).xi
Local Government Consolidation We should encourage local government consolidation of services, programs and back office operations. This region has 176 general purpose governments, some 28 per 100,000 people compared to 6.1 per 100,000 nationally. This redundancy complicates coordination, exacerbates unbalanced and sprawling growth patterns, and undercuts the area’s economic development.xii Cities do not stand alone. They border other cities and share similar issues, which will require collaboration and cooperation to resolve this region’s problems. Borderless issues (such as crime, drugs, poverty, flight of a younger, working population, irresponsible land use, pollution, crumbling infrastructure, and decline) should promote collaborative planning and problem solving.xiii Tax sharing, non-aggression pacts, transportation, land use, and zoning plans are items that could be worked upon cooperatively. Local governments should consider leveraging their purchasing power to buy vehicles, supplies, and other goods. The National League of Cities has a purchasing consortium available to its members. Because of its size and scope, communities can save significant amounts of money annually on a variety of purchases.
Privatization is another strategy local governments should consider. Local governments should set policies without necessarily implementing them. For example, several municipalities or townships could join together to contract for trash hauling services as opposed to each having its own provider or providing the service through the municipality.
* Photo courtesy of Greater Wilkes-Barre Chamber of Business & Industry
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Regionalism is already occurring in the non-profit sectors. NEPA Institute (formerly GVTA), NEPA Alliance, Penn’s Northeast, and the Coalition of Local Chambers of Commerce are prime examples of ongoing initiatives aimed at cooperation and collaboration.
Politics There is no Democratic or Republican way to pick up the trash. Most municipal officials deal with the same issues and can explore common solutions, regardless of political affiliation.xiv This theory emphasizes that collaboration across political boundaries could be effective in dealing with issues that are common to all parties. By cooperating and collaborating, municipalities could form partnerships, which should lead to more regional strategies to deal with regional problems.
Another aspect of politics that is crucial to effective government is “how” elected officials deal with matters before them — either among themselves or with the public. After arguments that prevailed at numerous council meetings, Cedar Rapids, Iowa, developed 25 operating norms that govern behavior among colleagues and 14 core values that identify what the council stands for.xv These norms assisted the city in having shorter, more productive meetings and helped the community to have more confidence in the council and the local government operations.
Leadership Roman Statesman Cicero defined the commonwealth as a partnership for the common good. Collaborative leadership values cooperation over partisanship and civility over disrespect.xvi
Local leaders must take bold steps to lay down policy and provide the tools for change. Local government doesn’t always have to be the “doer;” however, local government must create the environment for positive economic force and market changes while helping the private sector to make investment and reinvestment.
* Photo courtesy of Pittston Chamber of Commerce
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Stewardship and Civic Leadership Civic entrepreneurs are leaders who work collaboratively to effect change in their regions. They include stakeholders from various sectors (public, private, education, nonprofit, labor, and champions from the business community) with an outcome-oriented and value-driven regional focus. While the chambers are doing a great job of motivating their membership to act, many stakeholders are still not involved. Therefore, it is recommended that a Mayor’s Night Out program be established in all cities throughout the region. This program would bring the mayor into a different neighborhood in his/her community on a monthly rotating basis. The program would be staged as a town hall style meeting. Residents and businesses from that particular neighborhood could attend and hear the latest community updates. The citizens would have an opportunity to participate in discussions with the mayor and to hear firsthand about the projects and goals for their individual neighborhood, while offering the residents an outlet for expressing their needs, challenges, and opportunities.
Diversity This region must accept that diversity is present in the general population. Our region will continue to see an expansion of diverse cultures and ethnicities migrating to this area. The region must also accept that women are a fast growing segment of successful business start-ups, and they are in positions for upward mobility in the workplace. Tolerance, acceptance, and respect must be incorporated in value systems of all local employers (public and private, small and large). There must be changes in attitude to foster changes in the culture of the workplace. We must embrace the changes and recognize that, age, gender and race demographic changes result in new market opportunities for local businesses.
A PROCESS FOR MOVING FORWARD PAGE 30
A Process For Moving Forward Serious effort must be put forth to revitalize the Scranton/Wilkes-Barre/Hazleton area. JUSC believes this MSA is a key component to the long-term strength of the state for two reasons: geography and higher education.
Geographically, this area of northeastern Pennsylvania is poised for inward migration from New York, New Jersey, and Philadelphia. Those seeking to buy a single family home will find the housing market appealing, thanks to affordable housing and low real estate taxes. Transportation options for commuting out of the area are also prime factors for relocation. Due to the area’s proximity to the major markets, busing and future rail service will help to promote commuting.
Due to this expected immigration to the region, business attraction efforts should intensify. As our population grows, local job creation should be paramount in our long-term vision. An increase in job creation would not only help existing residents, but it would also create opportunities for new residents. The number of those commuting would subsequently decrease and it would keep northeastern Pennsylvania from becoming a bedroom community. Furthermore, this would decrease congestion and decay on our roads. Most likely there would be some company movement as businesses begin to follow their employees into the region. However, we cannot rely on that possibility to create the jobs we need.
In addition, this area has already seen (and will continue to see) job growth in the distribution and logistics sectors. The region needs to plan appropriately for this growth as these sectors do not create as many jobs per square foot as other sectors, although they consume large amounts of land, create congestion on local roads and highways, and lead to significant air quality issues. In spite of the negatives, jobs in this sector are gaining momentum and surpassing starting wages in manufacturing in other parts of the country. As distribution is becoming more automated, distribution jobs require more education for and skill from the average worker. However, job diversification and emphasis on higher wage paying jobs should remain a focus as logistics and distribution will begin to locate here with minimal effort.
Furthermore, this region is rich in institutions of higher education. If marketed correctly, these schools could be the key to revitalization. Colleges and universities help to produce the labor force of the future. That, coupled with affordable housing and improved quality of life, will encourage employers who are looking for educated workers to seriously consider this region. JUSC estimates that at the end of the next 10-year period, we will see significant population growth, with employers following the workers into our region forcing us to deal with higher cost housing, sprawl, and transportation issues. Addressing growth as part of the revitalization strategy will help this region to be better prepared to mitigate future challenges occurring as a result of that growth.
Regionally This report lists a variety of strategies that various communities, counties, non-profit civic and business organizations, and quasi-public agencies can implement to achieve these goals and address other issues relating to job creation, business development, and job retention while planning for future growth within the MSA.
Any public sector employee, elected official, or citizen from any city, county or township can begin the process by acting on any of the strategies identified above. Communities need to initiate discussion with neighboring communities about acting jointly on solutions. Other non-profits and community groups can also tackle issues pertaining to their area of emphasis or geographic coverage.
PAGE 31 A PROCESS FOR MOVING FORWARD
The key to revitalization is having a strong, positive foundation whereby residents and governments can collaborate and cooperate, with regionalism and regional leadership as the foundation.
The overall initial regional goals should be as follows: 1. Contain sprawl development. 2. Make downtown areas and surrounding cities more desirable. 3. Retain and add to the young adult population.
The Scranton/Wilkes-Barre/Hazleton MSA has the tools in place to change, revitalize, redevelop, and grow in the 21st century. How this region decides to use the tools available to it will determine future economic success.
Below is a listing of pertinent facts to remember as we strive to revitalize this region: • For decades, communities relying on technology and employment from the industrial age have fallen into decline. • U.S. manufacturing continues to decline. • Nationally, the service industry is still the fastest-growing job sector. • We live in a global economy. • Movement of information is just as integral as movement of product. • Due to information technology, the way business is done is changing. • The unifying force in successful local development strategy is a shared vision of a better future for the community. We must identify an achievable future that builds on consensus for public and private action.xvii • Businesses are more portable now and can locate anywhere. Businesses can choose to locate where its prime employment base wants to live (or lives). • Creation of new wealth, not redistribution of income, revives and sustains an economy.
This region has been on the decline for decades. Multiple factors contributed to the situation, including natural market forces, the economy, the political environment, and poor planning. Despite this mix of controllable and uncontrollable forces shaping us, this MSA is poised for significant economic opportunity provided that we prepare ourselves and plan appropriately for growth.
Highlighted in this document are some strategies that can be implemented in communities. Changing policies, updating codes and regulations, identifying new programs and services, and most important, creating a collaborative, regional vision, all are options to achieve greatness.
Joint Urban Studies Center JUSC can serve as a resource (by assisting in the convening stakeholders from a community) to plan and set goals and objectives. JUSC can further identify processes, procedures, and case studies for many of the initiatives and customize a plan for each municipality or township. JUSC can also provide additional research or feasibility
A PROCESS FOR MOVING FORWARD PAGE 32
studies to meet the needs of its clients. JUSC services are available to any local government or non-profit organization.
JUSC also plans to be proactive in this effort through a number of specific initiatives identified below.
JUSC will produce the first regional Indicators Report in the fall of 2005. Thereafter, JUSC will produce a new Indicators report for that particular year. JUSC will measure the region on a variety of major indicators and specific components, and then compare them with similar-sized regions both within the Commonwealth and in other states. These indicators can serve as a major planning tool for government, non-profits, business groups, and higher education.
JUSC will convene a Regional Leaders Visioning Event to coincide with the release of the Indicators Report. This event will allow stakeholders to gather and develop a regional vision with a prioritization of specific goals, strategies and timelines. Committees will be formed to take responsibility for implementing strategies. Each community will be asked to adopt a resolution demonstrating their commitment to this regional initiative.
JUSC will convene quarterly Joint County Commissioner meetings to continue regional dialogue on issues and opportunities.
JUSC will also establish a northeastern Pennsylvania Annual Mayor’s Conference whereby mayors can meet and discuss opportunities and challenges in their communities with experts from around the country.
Finally, JUSC will work to create an Association of City Administrators/City Managers so these individuals can meet periodically to work on issues, share information, and participate on a list-serve to facilitate electronic communication.
JUSC fully encourages each community to begin taking action today.
PAGE 33 APPENDIX: A PROFILE OF NORTHEASTERN PENNSYLVANIA
Appendix: A Profile of Northeastern Pennsylvania
POPULATION “Healthy states and regions often exhibit one or more of the following factors: steady immigration; attraction or retention of young professionals; a relatively high churning of population, with a mix of residents moving in and out of the state. Pennsylvania possesses none of these.” The Brookings Institution
Population remains one of the top issues facing this state, in particular, the Scranton/Wilkes-Barre/Hazleton Metropolitan Statistical Area (MSA). This major metropolitan area of Pennsylvania has seen a serious decline in population since the early 1940s, with losses caused by many factors. Some researchers blame the Agnes Flood of 1972 and the abandoned coal mines, while others simply blame the sagging economy for the loss of Pennsylvanians. Regardless of such findings, researchers and elected officials agree there is a major population dilemma occurring throughout the Commonwealth of Pennsylvania.
By studying the Brookings Institution’s report, we have isolated four major population indicators of concern to this region. They are: population growth, population loss, population of young adults, and population of elderly.
Population Growth The Scranton/Wilkes-Barre/Hazleton MSA is comparable to the rest of the state in that it shows an increase in population within second-class townships. According to the Brookings report, between 1990 and 2000, the Scranton/Wilkes-Barre/Hazleton region’s second-class townships grew by 5.2%; that is an increase of 10,241 new residents. Fast development of outer, second-class townships and the continued decline of first-class townships indicates the emergence of urban sprawl. Figure 1
14.0% 13.2% 12.0% 10.0% 8.6% 8.0% 6.9% 5.5% 6.0% 4.7% 3.4% 4.0% 2.0% 0.5% 0.8% 0.0%
rk n is Percent Change in Population o a o ig n Ohio Y lli tates w ch I S e Mi N ited n North DakotaWest VirginiaPennsylvania U
Source: U.S. Census Bureau
APPENDIX: A PROFILE OF NORTHEASTERN PENNSYLVANIA PAGE 34
Population growth in outer townships has dominated the overall growth in the state since 1950 and is currently increasing rapidly. During the 1990s, the state’s outer townships increased by more than 11%, or 538,000 people — compared to the 8% increase in the 1980s (Figure 2). Between 2000 and 2002, Pennsylvania has seen the outer townships grow by 2.4%, or 124,000 new residents. As of 2000, outer townships make up nearly 42% of the state’s overall population — which is up from 23% in 1950. This is another indicator that urban sprawl is affecting northeastern Pennsylvania’s economic vitality. Figure 2
1990 2000 Absolute Percent Population Population Change Change Older Pennsylvania 7,302,435 7,163,358 -139,077 -1.9% Cities 3,274,940 3,118,262 -156,678 -4.8% Boroughs 2,584,968 2,555,642 -29,326 -1.1% 1st-Class Townships 1,442,527 1,489,454 46,927 3.3% 2nd Class Townships 4,579,205 5,117,696 538,491 11.8% State Total 11,881,640 12,281,054 399,414 3.4% Source: U.S. Census Bureau
Population Loss While outer townships continue to grow, the overall Scranton/Wilkes-Barre/Hazleton MSA continues to experience a decline in population. In 1990, the Scranton/Wilkes-Barre/Hazleton MSA had a population of 624,780 residents. In 2000, the same region had a population of 611,090 people. Figure 3
15.0% 12.4% 13.2% 11.3% 10.0% 7.2% 7.0%
5.0%
Population 0.0%
Percent Change in -2.1% -5.0%
Allentown/Bethlehem/Easton Scranton/Wilkes-Barre/Hazleton Harrisburg Lancaster York United States
Source: U.S. Census Bureau
The numbers in Figure 3 reflect a 2.1% decrease in population during the 10-year span, or 13,690 residents lost. Of all the major metropolitan areas in the state of Pennsylvania, Scranton/Wilkes-Barre/Hazleton is the only region to record a decrease in population during the 1990s. The surrounding MSA, in the eastern and south-central regions
PAGE 35 APPENDIX: A PROFILE OF NORTHEASTERN PENNSYLVANIA
of the state, saw the most residential increases. Some population loss in the mid-1970s was due to the Agnes Flood of 1972. Additional population loss in the 1980s was due to the garment industry’s decline in this area, but after 32 years, residents are still exiting this region in alarmingly high numbers.
Population loss is affecting the state as well. According to the 2000 Census, Pennsylvania is the sixth largest state in the union, with a total population of 12,281,054. During the 1990s, Pennsylvania was the third slowest growing state in the U.S., behind North Dakota and West Virginia, with a population increase of 3.4%. Along with the slow growth rate, the state has also experienced the fifth largest domestic outflow between 1995 and 2000, with 688,753 domestic migrants moving in while 800,049 moved out; a net flow of negative 131,296 residents. These numbers, according to the Brookings report, show that Pennsylvania grew mostly through births, not migration, which is why the state ranks so low in population growth statistics.
Population of Young Adults Without question, the most disturbing statistic is that of the population of young adults. Brookings identifies “young adults” as people who were between the ages of 15 and 24 in 1990, and were between 25 and 34 years old in 2000. The Scranton/Wilkes-Barre/Hazleton MSA has been experiencing a dramatic loss of young adults for many years, but a larger decline has occurred in the past decade. In 1990, this area had a young adult population of 90,905. Ten years later, in 2000, the same MSA had a young adult population of 74,865. These numbers result in an absolute change of negative 16,040 people, or a 17.6% loss due to out-migration (Figure 4). This significant amount of out-migration has been blamed on such factors as low wages, poor shopping districts, high taxes, and the higher incomes available outside of this MSA. Figure 4
The Same Age Group Age Group Group, But Absolute Percent 15-24 in 25-34 in Ten Years Change Change 1990 2000 Region and MSA Later
Northeast 266,894 255,584 -11,310 -4.2%
Scranton/W-B/Hazleton 90,905 74,865 -16,040 -17.6%
Allentown/Bethlehem/Easton 81,051 78,970 -2,081 -2.6%
State Total 1,681,065 1,560,486 -120,579 -7.2%
Source: U.S. Census Bureau and The Brookings Institution
APPENDIX: A PROFILE OF NORTHEASTERN PENNSYLVANIA PAGE 36
On the statewide level, the lack of amenities has also had an effect on this population group. In 1990, Pennsylvania had a population of 1,681,065 young adults compared to its 1,560,486 in 2000. These numbers reflect an absolute change of 120,759 people, or a 7.2% loss of young adults. Pennsylvania’s 7.2% decrease of the young adult population falls well below the national average of an 8.5% increase. As a group, young adults between the ages of 20 and 39 make up 29% of the United States population, while in Pennsylvania the same age group makes up 26.5% of the population. These figures reflect an out-migration of young workers. The median average age of Pennsylvania residents is 38 years old, which is three years older than the national median of 35 years.
Population of Elderly While young adults are moving out of the region and state, the elderly population continues to increase. According to the Brookings report, MSAs that have experienced successful population growth have had a low elderly population and a high young adult population — the opposite of what is shown in this region. Figure 5
SHARE OF TOTAL POPULATION Age Bracket United States Pennsylvania 20 to 29 13.6% 12.0% 30 to 39 15.4% 14.5% 40 to 49 15.1% 15.5% 50 to 59 11.0% 11.5% 60 to 69 7.2% 8.1% 70 to 79 5.8% 7.4% Source: U.S. Census Bureau
The elderly percentage of the population (people 65 years and older) continues to rise in this area and throughout the state (Figure 5). As of 2000, 18.9% of the Scranton/Wilkes-Barre/Hazleton area’s population was made up of elderly residents.
This trend is also present throughout the state. Per the 2000 Census, Pennsylvania ranked second behind Florida in elderly population. Florida has the largest elderly population in the nation. The entire Commonwealth of Pennsylvania has an elderly population of 15.6%, which is higher than the national average of 12.4%. The 15.6% is an increase from 15.4% in 1990.
These statistics directly affect the economics of a community. Residents under retirement age usually have higher wages that are invested into the region where they live and work. On the other hand, the elderly population generally consumes more financial resources than it makes. Without the creation of new capital and investment, this region is primarily redistributing existing income, resulting in a lower standard of living.
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EDUCATION “Economists have long considered “human capital” – talented people generating ideas and innovations – a crucial factor of production and a primary driver of regional economic growth”….” As summarized by the Progressive Policy Institute, ‘when the most valuable input for many firms is the skills and talent of their workforce, a pool of skilled workers is the most important locational factor.’.” - The Brookings Institution
Education plays a key role in the makeup of any MSA or state. Locally and statewide, institutions of higher education greatly affect a region’s economy. While some high school graduates can still hold high paying jobs, a college diploma is becoming a prerequisite for many higher paying jobs. National data support this by showing that this “wage gap” between high school and college graduates has increased significantly. For example, since 1975, workers with a college degree earn 1.8 times more than those workers with only a high school diploma. In 1999 alone, the ratio rose to 2.6. Educational achievement is very important; it not only increases wage levels, but it also adds to diversity in employment sectors. This diversity is needed to keep a region recession proof.
Educational Attainment Only 17.4% of residents in the Scranton/Wilkes-Barre/Hazelton MSA possess a bachelor’s degree, compared to the national average of 24.4%. This percentage puts the region last in the category of residents holding bachelor’s degrees among the nine major MSAs studied in the state. These numbers remain a major obstacle for growth and economic development for this region. In light of the higher education infrastructure in this region, this MSA certainly possesses the tools to increase the knowledge base of our residents. However, the residents must value higher education more for themselves and their children before we will see a turnaround in this statistic.
Looking at statewide statistics, it is apparent that educational attainment numbers are mediocre and in need of improvement. Similar to this region, all of Pennsylvania has only 22.4% of its residents holding a bachelor’s degree or higher, a full 2% lower than the national average, ranking Pennsylvania 31st among the states. In contrast, Pennsylvania ranked sixth nationwide for the number of students enrolled in college in 2000.
An uneducated and unskilled workforce is affecting the state’s ability to attract high wage and high profile jobs, while also inhibiting entrepreneurship. According to the research firm Cognetics, Pennsylvania ranked 44th on its annual “entrepreneurial hotspots” report in 2001, showing how education levels can affect an MSA or state. These education levels often lead to unemployment and lower wages. Between 1999 and 2001, Pennsylvanians with a graduate or terminal degree averaged $42,600 more in income than the average high school graduate. According to the Brookings Report, from 1999 to 2001, an average 11% of Pennsylvania workers with only a high school diploma had earnings below poverty level. Low wages and minimally educated workers will continue to be the standard in this region and throughout the state until educational attainment levels are addressed and corrected.
Northeastern Pennsylvania is not attractive to business and industry because of the low attainment of higher education. Population loss and below-average income for workers is a direct result of an undereducated population. According to the Brookings Institution Report, “economic success increasingly turns on attracting and retaining highly educated people.” The report goes on to state that “success requires large numbers of people with a college education and high skills,” stressing the importance of a high level of education. The Brookings Report states that cities and metropolitan areas with the highest share of educated workers have broad labor markets, vibrant and distinctive downtowns, plentiful amenities, and a positive, tolerant culture. These objectives are shared goals for Scranton/Wilkes-Barre/Hazleton and the state of Pennsylvania.
APPENDIX: A PROFILE OF NORTHEASTERN PENNSYLVANIA PAGE 38
EMPLOYMENT “Pennsylvania’s economy is languishing. Based on major indicators, such as employment growth and wage levels, Pennsylvania’s economy clearly lags behind other states. Comparatively speaking, the state has seen little employment growth over the past decade, wages are low, and increases in average annual pay aren’t keeping pace … In short, Pennsylvania appears stuck in a cycle of malaise.” The Brookings Institution
Employment Growth Slow employment growth continues to be an obstacle facing the Scranton/Wilkes-Barre/Hazleton area. According to the Brookings Report, this region displayed the slowest employment growth between 1992-2002 of the nine major metro areas discussed in the study. During that time span, the region added approximately 16,900 new jobs. This led to an overall 6.4% increase in the area’s employment base, well short of the 19.9% national average (Figure 6). Figure 6
25.0% 19.9% 20.0% 18.0% 15.4% 15.0% 11.4% 11.1% 10.0% 7.5% 6.4% 5.0%
0.0%
s A r e P te /H York Erie -B Percent Change in Employment Change Percent cas n W S/ La Harrisburg United Stat
Source: U.S. Census Bureau
In the latest census figures dealing with employment growth, the state of Pennsylvania did not prosper either. Among all the states, Pennsylvania ranks 47th in overall employment growth, better only than Hawaii, New York, and Connecticut. As a whole, the state saw an 11.4% increase in jobs, falling short of the national average of 19.9%. Layoffs are another major contributor to the unattractive employment situation in the state. According to the Brookings report, Pennsylvania had 290 mass layoff events in June, July, and August 2003 alone that affected nearly 26,000 workers.
Job Diversification There is one change in employment that local and state officials are pleased to see ─ job diversification. For decades, Pennsylvania relied solely on its statewide manufacturing, making the state mostly one-dimensional. Since companies are now seeking cheaper labor overseas, the manufacturing sector has taken a huge hit (see Figure 7). For example, between 1970 and 2000 alone, the Scranton/Wilkes-Barre/Hazleton area reported a loss of 48.2%
PAGE 39 APPENDIX: A PROFILE OF NORTHEASTERN PENNSYLVANIA
of its manufacturing jobs, a percentage that was exceeded only by Philadelphia and Pittsburgh. During that same time span, Pennsylvania had lost more than 38% of its manufacturing jobs, or nearly 600,000 in total. The local and state losses are well above the national average loss of 3%. Even though most of the positions lost were in the garment industry (positions that featured low wages and benefits), the losses were still high for a one-dimensional state, creating a need for diversification. Figure 7
Pennsylvania's Employment Sectors 1970 2000 Agriculture/Mining 1% 1% Construction 5% 5% Manufacturing 30% 14% Transportation 6% 5% Wholesale 4% 4% Retail 15% 17%
FIRE (Finance, Insurance, Real Estate) 6% 7% Services 19% 34% Government 13% 11% Farm 2% 1% Source: Bureau of Economic Analysis
Diversification occurred quickly with the emergence of the service sector, which has become the fastest growing employment sector in the state. Between 1970 and 2000, the Scranton/Wilkes-Barre/Hazleton region saw a 148% increase in service jobs and a 41% increase in retail jobs. As a whole, the state saw the overall service sector grow by nearly 1.4 million jobs, or 142%, during the same time span.
Healthcare and educational services are also flourishing locally and throughout the state. According to the Brookings Report, healthcare and educational services make up a combined 37% of the state’s sector jobs, compared to just over 29% of this sector nationally. Individually, Pennsylvania ranks fifth among states in its share of service jobs in education and sixth in its share of service jobs in healthcare.
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INCOME As a subset of employment, income is the driving force behind a successful economy. Figure 8
Average Household Poverty Rate
Region 1990 2000 Percent 1990 2000 Scranton/W-B/Hazleton Older Pennsylvania $38,754.94 $40,223.32 3.8% 12.3% 12.9% 2nd Class Townships $49,963.68 $53,126.69 6.3% 8.0% 7.4% Metro Total $41,899.74 $44,189.40 5.5% 11.0% 11.1% Pennsylvania Older Pennsylvania $46,854.52 $47,804.10 2.0% 13.5% 13.3% 2nd Class Townships $55,908.24 $60,068.52 7.4% 7.4% 6.2% State Total $50,145.71 $52,681.23 5.1% 11.1% 11.0% Source: U.S. Census Bureau
One objective of cities and states across the country is to offer quality employment opportunities that will provide above-average income for their residents. By offering these opportunities to its citizens, cities and states help to create increased income that fuels a highly successful economy. Pennsylvania is falling short of this objective. The average household income in the U.S. in 1999 was $56,644. Pennsylvania is close to, but still behind the national mark with an average household income of $52,681, while the Scranton/Wilkes-Barre/Hazleton Metropolitan Statistical Area reports an average of $44,189, well below the state and national average (Figure 9). Figure 9
$60,000 $56,644 $54,889 $52,681 $50,259 $50,000 $44,189 $40,000
$30,000
$20,000
$10,000
Average Household Income Household Average $0 PA United Pittsburgh Lancaster S/W-B/H States
Source: U.S. Census Bureau
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The average salary per employee in 2001 was $34,976 in Pennsylvania, compared to the national average of $36,214. In the year 2000, it was reported that 61% of Pennsylvania’s workers were employed in occupations with average wages of less than $27,000 per year. Along with the low wages, the average annual salary in Pennsylvania increased only 10.2% from 1991 to 2001 — compared to 13.2% nationally, ranking Pennsylvania 32nd in the country.
These figures seem to coincide with the population loss of young adults discussed in the previous section. Losing educated, young adults does not help to increase employment growth, especially higher wage employment growth. The loss of educated young adults in this region is producing an older, undereducated population. A result of an undereducated population is lower wage jobs.
CONCLUSION PAGE 42
CONCLUSION Northeastern Pennsylvania has the immediate problem of addressing its low wage economy, slow growth, and the unstable local government infrastructure resulting from too many local government entities. However, this area must also look at its future. Geographically, this region is central to commerce on the east coast. It is also an affordable region, rich in higher education and aesthetically pleasing, with year-round sports and recreation. These attributes make it attractive to individuals and businesses.
Specifically, JUSC believes this region could see more significant in-migration growth of individual families seeking to purchase a single family detached house. Home ownership costs are out of reach for many families living in New York, New Jersey, and Philadelphia. This in-migration could drive up the cost of housing, polarizing our local economy even further into the “haves” and the “have nots.”
One problem associated with this in-migration is that many people might keep their jobs in the urban areas and commute. Not only would this cause congestion and higher road maintenance, but most of the income would be spent outside the region, adding to economic problems. Job creation would not keep pace with this growth and/or there could be a mismatch of skills. Only after significant in-migration took place (the next 10-15 years) would we then begin to see companies follow their employees and move into this region.
To avoid this gap between in-migration and the move of employers following their employees into the area, we should begin planning now to deal with growth and to aggressively pursue business attraction, business expansion, and business creation. The region should work aggressively to make the existing workforce more competitive for jobs and more inclined to pursue higher education.
We should continue to invest in ourselves to spur new investment from the outside, but, concurrently, we must watch that outside investment does not become too intensive. If that happens, it becomes another way for wealth to leave the area.
As a region, we should work together to facilitate and maintain change. We should be able to look 15-20 years ahead and plan for the opportunities and challenges that would result from growth. Finally, we should be willing to act and recognize that significant change is needed to increase the standard of living and quality of life in this region.
PAGE 43 ENDNOTES
i Ewing, Reid. “ Pedestrian and Transit Friendly Design: A Primer for Smart Growth. Smart Growth Network: Washington, DC, 1999. p.19. ii Hansen, Heidi. Key Pieces of Governor’s Economic Strategy Move Forward. www.michigan.gov. May 11, 2004. http:// www.michigan.gov/printerFriendly/0,1687,7-168--92594--,00.html. iii Knaap, Gerrit-Jan. An Inquiry into the Promise and Prospects of Smart Growth. National Center for Smart Growth Education and Research: University of Maryland. August 27, 2002. iv http://www.dep.state.pa.us. v Hudnut, William. Cities on the Rebound. Washington, DC: Urban Land Institute, 1998. vi McNulty, R., Jacobson, D., & Penne, R. The Economics of Amenity, Washington, DC: Partners for Livable Places, 1985. vii Hudnut, 63. viii Hansen, 2. ix Hudnut, 38. x Hoop Dreams. www.hoopdreams.org/about.htm. xi Boyd, Liz. Governor Creates Department to Promote Job Creation, Economic Development. www.michigan.gov September 17, 2002. xii Back to Prosperity: A Profile of Scranton/Wilkes-Barre/Hazelton. Washington, DC: Center on Urban and Metropolitan Policy, 2003. xiii Hudnut, 47. xiv Hudnut, 10. xv Hudnut, 23. xvi Hudnut, 18. xvii McNulty, Jacobson & Penne, 16.
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