Outside Erie

25 Responses to “The State of Erie”

1. George Vietze
   January 30th, 2008 at 1:58 am

   “State of Erie Address”? Prior to retiring in the Erie area, I had been in the real estate business in Arizona and California. Those state have seen excess and abuses that have drastically effected their economy. Real estate has always been very “cyclical”, typically the cycles have been around 7 years or so before they bust and start again. This last cycle lasted over 12 or so years, mainly, in my opinion, because the tax laws allowing no income taxes on the profit of the sale of personal residences of up to $250,000 if single and $500,000 if married, provided you lived in your residence for at least 2 of the last 5 years. That meant you could sell your personal residence, if married, and pay NO FEDERAL REAL ESTATE TAXES ON A $500,000 GAIN. In states like California, Arizona, Florida and other states where property values would sustain values in that range it created an ENTIRE ECONOMY AND BUSINESS OF PEOPLE BUYING AND SELLING HOMES EVERY TWO YEARS AND MAKING MORE MONEY THAN THEY COULD AT THEIR JOBS, IT LITERALLY CREATED AN ENTIRE ECONOMY, HUNDREDS AND THOUSANDS OF PEOPLE MAKING TAX FREE MONEY. This was abused when Wall Street figured a way to make large fees without risk by selling the mortgages to large investors in the secondary market and eventually busted the bubble, but it lasted longer than it would have because of the TAX ADVANTAGES. Places like Erie where property values did not appreciate in those terms did not see that kind of excess and thereby will not be effected on the downside as much as other places. There were excesses here also, but not to the extent as some other areas.

   My son had moved here from Scottsdale around eight years ago, his ex-wife was from the Union City area and he wanted to be with his daughter and prefers the country life to city life. When visiting him I drove around the area and noticed the amazing amount of retail in the area.
   For a city the size of Erie it was surprising to find the demographics that unfolded. I noticed that one of the popular web sites touting the area mentioned that Erie was within 500 miles of 50% of the population of the United States,that was very revealing. To have over 4,000 hotel rooms, a beach area attracting MILLIONS OF TOURISTS.
   When I realized the race track was investing OVER TWO HUNDRED MILLION DOLLARS, it peaked my interest. WHY ERIE? An area that had lost a large part of its manufacturing economy and was a low income area. WHY? Why chose Erie?
   I downloaded the Economic Feasibility Study that the race track submited to the municipallity as part of the approval process. This is just my opinion, I have no insite other than what I read that is public information, but based on my experience companies that invest hundreds of million of dollars in an area have a GAME PLAN. I don’t happen to believe its 2,000 slot machines and that this is the end game. True or not, I believe that the game is bigger. I have since discovered that the State of Pennsylvania and the Thoroughbred Breeders Association have positioned Pa. to be a major player in the racing and breeding industry. There are only 3 thoroughbred race tracks in Pa. The other two tracks are not known to be very up-scale compared to the new track in Erie. The racing industry is calling Presque Isle Downs the Churchill Downs of Pa. The incentives to breed to Pa. bred horses is substantial, they have changed the rules to encourage breeders to come to Pa. Ohio race tracks are now up for sale because they cannot compete with the income and purses paid from the slot revenue. I further believe that the political temperature is that FULL GAMING will happen in the next five to ten years and that it is possible that the lake will play an important part.
   All this will take time and is certainly not a sure thing, but someone has BET a lot of money that it could happen. Will it be good for Erie? Only if Erie plans for it. Is there a Master Plan for developing the lake shore around Erie? What is being done to attract major developers? What is the political climate?

   I believe we as a nation are already in a recession? When gold hits $929 an ounce, gas is $3.50 gallon, real estate values are in a slump in most places, credit is very difficult to come by, the stock market is down, heating fuel is high, etc., etc., Erie is not excluded from that scenerio and will be effected but in my opinion because real estate and the sub-prime situation is a large part of the criteria, Erie was not be as negatively effected as other area because it did not have the huge appreciation that areas such as California, Arizona or Florida had. If Erie during this recession, which in my opinion, won’t last forever, hopefully only a few years,
   will come up with a PLAN and finish the airport re-development that will allow air access to the people who will want to visit the area and be apart of the growth, it could be on the way to bigger and better things. The political situation has been a stumbling block in this area for years, some progress has been made but it has been slow. There now seems to be an attitude of the counties and townships working closer together because the whole of the area is much more valuable than the sum of the parts operating separately. I focused on the horse industry because it seemed to me that the State of Pa. wants to help and passed laws to mandate that 12% of slot revenue WILL BE USED FOR LARGER PURSES, the racing associations changed the rules to give incentives to breeders to move to Pa. and the race track company put their money in ERIE. I feel with political support and moeny invested by private companies there is a good chance that PLAN will happen. Will the City of Erie do what it needs to do and PLAN for growth? I am not sure, they have not done enough in the past. Will the counties cooperate, will the townships work together, I have my doubts, but if they all come together, the ingrediants are there to bake the cake. Erie, like all areas will be effected by the downturn in the economy, but if we use this time to Plan and we market the assets that we have, the convention center, the lake area, downtown re-development, finish the airport redevelopment, Erie will be far ahead of other areas that will be a lot harder hit because their property values have fallen so much and will continue to fall for sometime. Nothing is easy, Erie has lots of economic hardships but if gaming revenue continues and especially if FULL GAMING comes to this area, the increased revenues should help. Property value should increase creating more revenue for the municipalities. Will they spend this money wisely and plan and market for new growth? I hope so, but I frankly put more faith in private developers but the politics are a reality and do make a big difference. That to me is the big question, the politics. Nobody promised me EASY and I don’t expect it will be easy but I think the State of Erie is better than most places right now and that if we follow the lead of General Electric and create the ATTITUDE AND PRODUCTIVITY that GE has created we can be just as successful. It is about a Plan and an ATTITUDE. It is all about ATTITUDE. Erie has a lot of assets and if Erie focuses on its assets and changes its ATTITUDE and develops a PLAN the State of Erie will be a better place to live for all of us.

2. Jim
   January 30th, 2008 at 9:18 am

   I can agree with much of what is written above, but having lived here most of my life, I would like to add a couple of issues that attitude alone cannot overcome.

   I has been documented for years that the Erie area lags the nation and rest of the state in wealth creation and productivity. They go hand in hand. As Erie doesn’t create wealth at the same pace as the rest of the nation, it means we don’t create pools of capital for productivity investment at the same rate as others do. It means there is less money available to lend, and creates what I call the “credit crises” that has faced Erie, and numerous projects, for years.

   Attitude alone will not overcome a lack of capital to invest in wealth creating projects. Our limited public capital has to be invested in projects that add to wealth creation, and to date that has not happened. Our public investments have been relatively limited to quality of life projects which do nothing to create wealth.

   What is needed is a large infusion of capital that is limited to productivity enhancing investment. Could be either service industry or manufacturing, as increased productivity is equal to wealth creation. The question is how to achieve it, and that is where the political leadership must be brought to bear.

   We need incentives to invest, not just in initial property, like a LETRA or Keystone project provides. We need much more in the way of growth capital to allow existing businesses to grow, faster. Key word is faster. We have some programs in place to help now, but they are so under capitalized that they are not very effective.

   Where attitude can make a difference is in changing the almost immediate negative response to any proposal that would provide family sustaining wage jobs. We have to project a welcoming perception, whether to new endeavors or growth of existing business. That requires leadership, and too often our political class opts to pander to vocal obstructionists.

3. George Vietze
   January 30th, 2008 at 1:05 pm

   Jim, you obviously have a sophiscated background in economics. I agree that there is a lack of capital for projects that will increase productivity and allow existing business to grow faster than they have in the past. Having not been here, I have spoken to others who, like you, have said that the political attitude was a major obstacle to growth.

   I believe that is true. I also believe there are other economical reasons that contributed to Erie being behind the curve in wealth creation and productivity. There is no easy answer to a very complicated question that involves politics, labor availibility, brain drain, market constraints, location logisics, lack of capital,
   political corruption etc.,etc., I prefer to look at how Erie can make the most of what they have NOW.

   I personally think GAMBLING is a tax on the ill-informed, who believe in pulling a lever or picking a horse will somehow be profitable to them. Well, Vegas is an example that the GAMBLING game only benefits the HOUSE
   not the patrons. The Casinos get bigger and bigger. Erie did not originate the idea of gambling but if people from NY, Ohio, Canada and wherever want to come here, stay in our hotels, shop in our shops, leave their money and keep Erie green, I think we should PLAN for them, invite them and use THEIR money to benefit the Erie area.
   Erie needs a LONG RANGE PLANNING DEPARTMENT that has the political support to control the kinds of development and sign ordinances so that development will be the quality of developmentthat will enhance our area.

   I agree with Jim, it would be better to have capital and productivity. GE has found a market and private capital will fund projects that make economic sense, but without demand and a market for the types projects that will produce private producivity and capital we need to work with what we have NOW and eventually we may be able to create other markets as the synergy attracts others. I believe that as Erie continues to develop it will attract private developers with more capital who are able to complete some of the projects that in the past never got off the ground. I understand that the airport project has just made another step forward, the convention center has been having positive activities. The spring will attract the GE shareholders convention, the race track will have its first full season of racing. I wish we had more of the types of projects Jim believes will produce more real wealth but when the airport finally can support larger planes we can finally attract more of the people who want to come here and as Erie is re-discovered I will not be surprised to see major changes. I am happy to have moved here and live in a beautiful country area with access to shopping, education facilities, theatre, art, clean air, plenty of water, not much traffic etc.,and a much more affordable place to retire with the quality of life that works for me. I am happy here but hope that the politics and the residents get together and have a COMPREHENSIVE LONG RANGE PLANNING DEPARTMENT that has the political support to implement the kinds of incentives that will attract more of the kinds of projects that Jim and others know Erie needs, we cannot totally depend on tourist and gambling to fund our projects, although we need the money help fund the support systems that will help keep the quality of growth consistent with way we want our area to look. I see progress but it will not be any overnite miracles. Politics being what it is, is not a perfect system, but it is a reality. People abuse power and I am sure there are behind the scenes agendas that I am not aware that people who have been here longer
   have much more incite, but folks, I hate to inform you but ALL AREAS have problems like this and we have to make the best of what is available now. Forums like this hopefully will create awareness that will have a positive effect. No one promised EASY but in the meantime enjoy what we have NOW and help create an ATTITUDE that welcomes investment in this area and PLAN for it because it will come. The airport expansion is a HUGE step forward.

4. Jim
   January 30th, 2008 at 5:20 pm

   Interesting points, but I have to disagree regarding the airport. I do not believe that the +/- $80M investment in the combined runway extension projects will do much other than to generate immediate requests for addition investments in expanded terminals, jetways and fixed base operations to support the larger planes, that still won’t be here. And that does not mention facilities for freight handling. I’m afraid that all the runway extension will buy us is requests for another $50M to $100M in capital investments with the comment we have to spend that money to get a return on the initial $80M. At present I am not aware of anything even close to a commitment that would constitute a return on investment in the runway project.

   If you look at the Parade Street project, the Koehler project, the juice plant proposal, Steve McGarvey’s original proposal for the Mercantile Building and many others, the common factor among them all was the inability to obtain private financing to match the public funds that were made available for planning and site acquisitions. So public investment was essentially wasted for want of private investment that the community couldn’t, or wouldn’t provide. Somehow that must change in order to either obtain new ventures or grow existing business fast enough to provide economic growth enough to raise our wealth creating ability.

   My top priority would be to change the methodology used in determining what projects obtain public funds, and put in a requirement for real returns on those investments. Currently I do not believe that is even a consideration in the decision making process. I equate our public investment decision making to consumer impulse buying. Things that are nice to have, but not investment grade. That type of decision making and spending of public tax dollars is not what I want from public officials.

   Public officials need to be vocal leaders, with a common understanding of what creates wealth within a community, and fearless when it comes to confronting those with agendas that are anti wealth creating. That includes those who rush to judge the viability of the energy plant proposal, question the biofuel plant, and so on., while at the same time encouraging spending in other areas.

   I fear we have a chicken or egg situation in that the political class won’t change until the public demands it, and public won’t demand it until they are educated about the benefits by the political class. In the meanwhile other areas of the country continue to beat us to new investment, economic growth, wealth creation, and so on.

   A complicated situation for sure, but not so much so that change cannot be made. Look at how southern states have transitioned into manufacturing and services from chiefly agg related in a relatively short period of time. Tax incentives, right to work laws, energy costs, insurance and regulation all played a part, but planning was key, along with a basic understanding of how to market their strengths.

   A number of foreign car makers have located manufacturing in the US over the past decade. There is a reason why they haven’t come to Erie or Pennsylvania, and we are not even identifying, let alone addressing those reasons. Given our geographic location and center to population, there is no reason why we couldn’t make the changes necessary to turn things around.

   To that end however, I believe it requires localities and the state to work together. I do not see our local legislative delegation, with perhaps the exception of Jane Earll, even understanding the conversation we are having here, let alone actively attempting to address it. For example, Mayor Sinnott made the point of needing the same negotiating ability as a mayor as is granted to independent committees under Act 47, yet I heard nothing in response from our legislative delegation. In the meanwhile, the fire department union is headed to arbitration, again, which will set up the police negotiations to follow. The message this sends is that the cost of government will continue to not only out pace the rest of the economy, but actually accelerate, which is exactly the wrong message we need to be sending.

   But where to start? I hope here, in dialog that others can read and hopefully begin to add positive ideas.

5. George Vietze
   January 30th, 2008 at 8:54 pm

   Jim, I have to be honest with you, I have a business background but my background in economics does not have the depth to understand all that you are trying to convey.
   The limitations of the current airport are a constraint to accessibility of the area. When companies and people make choices to visit or do business in an area they assess the cost and ease of transportation to and from that area. If Erie is going to attract visitors and business it needs to have an updated airport facility.
   I understand the simplicity in stating the obvious but you are pointing out the economic reality that the return on that investment, in your opinion, does not justify the investment. At least that is what I am hearing. I honestly don’t have the background to dispute your reasoning and I respect your opinion. I am fairly new to the area and I am trying to get a handle on what makes this area the way it is. My view has been that if projects are viable the money will follow. I do agree that public incentives are extremely important in attracting new ventures but private funds are not usually available unless the developer has the expertise and the financial credibility to add knowledge and expertise to the venture as well as equity dollars. I don’t know the background of the prior projects that were not funded but as Erie grows and other developments happen, hopefully Erie will attract private developers who have the money and expertise to make things happen.

   For those of us who do not have an extensive background in economics could you give us an example of what could have happened or what should happen to fund the projects that you feel would benefit Erie and be more productive.
   Do you feel that the projects were viable projects but no one would step up and fund? I usually do not like to look back, but sometimes we can learn from prior mistakes.

   Do you think an updated airport in this area is important enough justify an investment?

6. Jim
   January 31st, 2008 at 8:04 am

   Regarding the airport, I think that you have to define what “updated” means. Just stating bigger is better, is not necessarily a true statement as Pittsburgh has proven. I think for an example, you need to look at Cincinnati and their long haul / commuter haul terminal design and decide whether Erie has a realistic opportunity to become a long haul center. I doubt it. On the other hand we do have an opportunity to become a commuter haul hub, through the use of regional jets, which provided the growth in traffic which we saw the past several years.

   As for freight, Cleveland has extensive freight handling facilities that is only an hour and a half away. Do we really think it would be cost effective to recreate the same facilities, from scratch in Erie, to avoid what is essentially almost a local delivery from Hopkins? I have serious doubts about that. We have attempted to market that concept domestically and internationally for years with no takers.

   As air lane congestion continues to hamper airline performance, especially along the east coast, the demand for small efficient regional jet direct point to point service continues to grow. Increased ridership generated in Erie as that service became available proves that point. What we need to do is develop a strategy that somehow further insulates us from being on the front line of cuts when airline earnings drop. That means finding ways to partnership with other airports to offer more financially attractive cost structures for airlines that provide incentives for direct non stop service. That would require destination sensitive marketing, similar to what is done in reverse from Florida, the Bahamas, and other island destinations. I’m not aware of any local efforts along those lines.

   Orlando to the islands flights have a lot of regional jet size flights available that are essentially “milk runs”. I’ve done Orlando to Key West on one such myself.

   Another unrelated example I would point to is the method of bay front development. I believe we should have placed equal emphasis on private investment to public investment down there, as we displaced family sustaining wage jobs, that never relocated in Erie. We took a lot of property off the tax rolls, displaced a lot of wage tax providing jobs, and increased the requirement for tax subsidizing of public facility operational losses. The net is that in terms of revenue, while the bay front may be nice to have it currently costs more to have than it provides in revenue to cover the cost of services it consumes. You can’t keep doing that. It like living on a credit card.

   For every public dollar spend we should have an idea if that spending will produce revenue to our government coffers, or require additional public spending to subsidize the operation. With the amount of sudsidizing we are currently doing, I submit we need to shift focus and instead concentrate on those projects which will add to the public coffers though increasing of the tax base, or through the addition of enough wage tax to offset the loss of property tax revenue. (For example a hospital expansion might do that, a bigger snack bar at the tower would not.)

   At the same time, we need to insure that local codes, permitting and enforcement do not make us uncompetitive with the surrounding area. For years Erie’s old plumbing code made it much more cost effective to locate in say Millcreek or Summit. While the City has made some changes there, it is an example of the things we need to standardize if regional promotion is to have meaning. Too often though, to accomplish that we have opted to make the competitive areas less so, than to make the non competitive more so. That same thinking has to apply to permitting and enforcement.

   Currently in the City, a public project can sail through a permitting process that requires a zoning change, while a private project can linger until it is no longer viable. Look at how fast 12th Street was approved for a non compliant sports complex (yet to be constructed).

7. George Vietze
   January 31st, 2008 at 12:38 pm

   This forum is a wealth of local information that us “transplants” really appreciate. It would take years to understand the history and politics of this unique area.

   Danny Lucas’s comments has shed some more light on the history of manufacturing and the balance of the manufacturing industry that currently remains in this area. In speaking with other people you might have an opinion that all manufacturers have left the area. It was good the hear that someone else, expecially someone that has a long history in this area, has a favourable prognosis of the FUTURE of this area. We all look at things through our own lense, it is just human nature to focus on what effects us directly and not a broader view of the effects on the entire area. I can understand some of the negative attitudes, if you lost your job in manufacturing after many, many years of service and had to leave the area to support your family, that might be your definition of “depression”. They say a recession is when someone else loses their job and a depression is when YOU lose your job.

   Jim, in your opinion, will the runway expansion allow Erie to expand or increase the regional jet market which will make it easier to connect to Erie from the west coast or maybe even flying direct to Erie from east coast and other areas?
   What else would have to happen in conjunction with the runway expansion to allow Erie to compete in that market?

   For example, when the GE Shareholders meeting this spring attracts shareholders from all over the United State’s will most of those people find it more difficult to fly into the Erie airport, have to make multiple connections, experience abnormal luggage experience, than it would be the case at other airports? When CEO’s and other people consider moving to an area this is important criteria.
   The airport is our “front door” to many people visiting the area. A first immpression may be important to help the image problem we seem to have with some people. Seems to me that if more people and traffic had easy access to our airport and it were more inviting and vibrant it could justify better restaurants, shops, retail diverstiy. I remember the Phoenix airport in the sixties and compare it to the airport today, albeit, Erie
   is not Phoenix, is it possible to expand our facility as a commuter hub to support not only our personal lifestyle but business in the area? Seems to me that the hotels in the area would benefit from increased traffic, rental car companies would benefit, convention center would find it easier to book out of town groups, the casino would benefit as well as many of our retail facilities and restaurants as well as the friends and residents visiting and going to and from the airport.

   I believe, like Danny Lucas, the Erie area is a special place, moving in the right direction and as I listen to the people who have experienced the past history it is very helpful and informative but the it is about the NOW and what we all do to make the FUTURE of the area a better place for ALL OF US.

8. Jim
   February 1st, 2008 at 7:42 am

   The runway “project” is actually two projects combined. The FAA safety portion, which could have been accomplished years ago, if not for the insistence of linking it to the second portion of the project, which the FAA has consistently refused to participate in.

   In my opinion, that original FAA mandated safety extension would be more than enough to allow the expansion of regional jet direct service. The cost increases that have now impacted just that portion of the project could have made some significant improvements to the terminal.

   My view is that local insistence upon linking the two essentially unrelated projects has delayed construction, increased cost, and cost us business. Another example of attempting to impulse purchase something wanted, but way beyond what was determined as needed.

   As for G.E.’s meeting, I would not be surprised to find their management delegation come to Erie in a private corporate jet, and experience no problem landing. As for pesky shareholders, I’m not sure that their convenience is a major consideration. I submit it is media they are after, relative to the division’s performance. The same media, whose less than glowing coverage of Erie initiated the dialog Danny Lucas has written about so eloquently. I question what our plan is to impress them, given what Mr. Lucas has written about the media perception of Erie.

   The media will arrive at the convention center, and essentially be “trapped” there, unless they want to pay for transportation to leave the center. There is not much they can do on foot from the center to get a true flavor or Erie. Contrast that with the location of the Pennsylvania Convention Center in Philadelphia, and what you can accomplish on foot within blocks of the center during breaks, lunch, etc. So what’s the plan to impress them? I sure hope there is one, and the opportunity is not lost.

9. George Vietze
   February 1st, 2008 at 1:05 pm

   Jim, you raised some great points. If someone was to visit any of us who has been as important and generous to the Erie area as GE, something special might be a nice gesture o hospitality. Does anyone have knowledge if the “ground operators” or “event planners” of the GE Covention Group have been contacted by the City of Erie or the Convention Bureau and are planning or coordinating something special, without cost to GE, to show how much we appreciate their presence and support to the area? Like any other guest that we appreciate maybe a closer personal relationship will serve all parties well. I feel that the City or the Convention Bureau may have already made plans for their arrival and may have a “welcoming committee” for this special visit. It may be a matter of how important the relationship is and what commitment or appreciation do we want from each other.
   There are many ways to look at this as their are people in the area. In most cities, maybe the cities that some people consider “fashionable”, the only people that would do something really special are the people who would directly benefit. It may be another chance to show “the world” “whyerie?” is not just another City and why people like Danny Lucas and other’s remain so tied to this area. If anyone knows of “special welcoming” plans for GE could you share those plans?

   I would rather have this conversation now, than in retrospect, if special plans are not made and we miss the opportunity to show GE and its shareholders we do appreciate them. Maybe this dialog proves that “thought” does “create” and being careful what we say and think, be it positive or negative, will attract what we focus on.
   Danny Lucas has sparked “positive” world wide attention on Erie by his “thoughts” about his town. Maybe this is a wake up call that will ignite a larger spark. We may be in for a lesson of how it works and “why Erie?” is special, you can’t really put your finger on any one thing, it just “is”, maybe we all are special but some of us have been too busy being “fashionable” to notice. If you really define “fashionable” you may find it means very different things to different people. Maybe what New York or LA or Boston consider “fashionable” is not really important to some people in Erie and visa versa.
   We all could do better to demonstrate pride in our area. I remember when I visited Erie and saw the wonderful “fish” art as I drove around the area and my first visit to the Warner and the happiness and music at my first country barn dance, summer time music at the lake, concerts at Bemus Point, we all like different things but their seems to a lot of wonderment (if that is a word)in this area.

10. Jim
    February 1st, 2008 at 1:41 pm

    Several year back I was involved in bring a statewide convention to Erie. At that time it was held at the Avalon, and we used the Tullio Center for a trade show.

    We rented some buses and took dignitaries on an excursion on the afternoon prior to the start of the convention. It was several hours long, and we showed them the city, pointed out the Playhouse (just across from the headquarters hotel) Presque Isle (pointing out Waldemier, it was before the Ridge Center was built), talked about fishing, took them to the Wayne Block House, and out to North East to look at the grapes and wineries. Several of the board members subsequently scheduled vacations here, one rented a fishing charter, and several wanted to make a wine tasting weekend. We also arranged for a golf outing for those interested (at the Erie Golf Course)

    The point is we had a plan in place, and tried to let everyone know about it before hand. Essentially the only cost incurred was for renting the buses, and a light lunch before we left. I don’t remember exactly, but I think we had about 50 make the trip. They in turn were able to tell other delegates arriving of some interesting things they saw. It worked well for us, however we did not get the media coverage we would have liked, despite notifying both print and electronic media.

    When talking about attitude, as we were, advance planning for such major events should be shared with the public, in advance, to add to the enthusiasm for the event, and hopefully make for more welcoming hosts on the part of the public.

11. Art
    February 1st, 2008 at 3:32 pm

    What a great conversation with details that would only be possible at an Erie CEO business round table - but with an honesty that the Blog medium can engender.

    If we look at the Erie community’s strengths it is remarkable, that for all the brain drain and talent outflow that goes on, we do have a resilient, creative and motivated well of resident and expatriate loyalists. To the extent that we cultivate, encourage and bolster this “best strength” we will succeed as a people and as a region.

    My many years, working with businesses in the Tri-State in both large and small businesses suggests that Erie has always done very well in educating and training skilled workers and professionals for some/most to seek opportunity elsewhere. This seeming unfortunate trend can be turned to our benefit. They leave to hone their craft and gain their footing in their given profession.

    The challenge is in the retention and attraction of these creative people to Erie. Those that have move away, often return to be with family and friends at a time in their lives when the are ready to start a business, move a business or help grow organizations through applying their resources.

    This is where our emphasis should be as a community…and it is not currently our strength. Does a longer runway help - very possibly. Certainly preparing for opportunity is most important and I would rather be ready when it knocks.

12. George Vietze
    February 1st, 2008 at 6:18 pm

    I believe that the upcoming GE shareholders meeting this spring at the Erie Convention Center is an opportunity for Erie to welcome this group who reprsent a major long term employer who has given much to this area. Danny Lucas has shed light that international media will cover this event. It seemed to me that the area should put its best foot forward and welcome this group who means so much to each other.

    I called the Visit Erie center and the Convention Center
    who currently are not aware of any plans, outside of the
    plans that GE has made to book the event. I am awaiting a call from the Chamber of Commerce to see if they have plans or know of any plans to welcome this group.

    What do you think? Is this an opportunity that should be explored? Seems to me that if this is news to the reporter in England it might be news to other media and a chance to show this diverse group of visitors the best of Erie. Jim has said years ago he was involved in welcoming another group and it had a positive result and some people returned to our area for various reasons after the event.

    When Jim held his event the media did not really get involved very much even with prior notice of the event.
    GE is a very significant company worldwide, it chose Erie to host their Anual Shareholders Meeting. According to the european reporter there are more “fashionable” places but GE chose Erie over any other place. What does that say for Erie!! This is big news and will get attention.
    The profits at GE are great and Erie contributes a large percentage of their bottom line. Let’s welcome them and make them want to be in Erie forever. Let’s help them want to grow to 20,000 employee’s who work and live in the area because this is a better place to raise their family than many places. We have real texture and our own definition of “fashion” and as they say “It’s all Good” and getting BETTER.

13. Jim
    February 2nd, 2008 at 12:12 pm

    I sincerely hope that our “blue collar” anti business mentality doesn’t prevent the community from realizing what an opportunity this presents.

    If you look at the political comments directed towards G.E. over the years, what you find is media coverage of city democratic council members pandering to union members during labor disputes over the years. That is not the image the community should make, if they want to try to change the media impressions.

    I am not surprised to find that George did not uncover any existing plans for the event. Unfortunately, that is typical Erie. For some reason, Erie doesn’t seem to grasp the value of business.

    I live in Fairview. Last year Fairview budgeted more for receipts in the earned income category than they did in property tax. (Their revenue exceeded their budgeted amounts in both categories. Earned income was nearly double the property tax.) So I conclude that wage tax receipts are at least as important, if not more important than property taxes when looking at municipal revenue streams.

    G. E. has people living all over the county, I would imagine in almost every municipality. As we all know, G.E. is one of the highest paying employers in the region. Therefore, the wage taxes the G.E. employees pay to their respective municipalities should be enough reason alone to insure that this event is important to the entire community.

    It would be interesting to see a study by municipality to look at revenue in terms of where it comes from, to get an appreciation for jobs, and the wage taxes they provide for local spending.

14. George Vietze
    February 2nd, 2008 at 10:04 pm

    In the Jan. 22, 2008, Tradingmarkets.com article “GE keeps on rolling.,” “Quarterly reports from GE Co. have a way of making Erie-based GE Transporation look like a corporate footnote.”

    “To be cerain, the Transportation division remains a slice of a very large pie. But it’s a slice that seems to be getting bigger and bigger and getting more attention.”

    “Profits generated by Erie County largest employer soared 21 per cent in the fourth quarte, to $252 million. And it was hardly a fluke. Transportation’s profits rose by exactly the same percentage in 2007, climbing from $774 MILLION TO $936MILLION.”

    “A quick look at the numbers suggest the company’s emphasis on lean manufacturing is paying off. That 21% climb in profits for 2007 was achieved on a far more modest 9 percent jump in revenues.”

    “When GE Chief Executive Jeffrey Immelt addressed stockholders Friday, Transporation was among the segments singled out for profit growth of more than 20 percent.”

    “Our record performance in such a tough environment validates the strength of our strategy and the talent of our team” Immelt said.”

    “If the numbers weren’t enough, a report in Friday’s edition of the Financial Times lauded Erie and GE Transportation as a high point of GE manufacturing”.

    “It is a huge validation,” Koller said, “Obviously, the Financial Times is one of the most renowned business dailies in the WORLD. For the manufacturing editor to fly in from London to see firsthand what GE Transporation and what the Erie plant is about, that’s a wonder.”

    “Koller said the FINANCIAL TIMES REPORTER APPARENTLY ASKED IMMELT TO IDENTIFY THE BEST MANUFACTURING SITE WITHIN GE. KOLLER SAID THAT IMMELT RESPONDED. “YOU REALLY NEED TO CHECK OUT ERIE AND GE TRANSPORTATION.”

    “The news Friday for the company as a whole wasn’t all good. Net earnings, at $22.2 billion, came in slightly under analysts predictions of $22.4 billion.”

    How important is Erie, Pa. to GE and how important is GE to Erie, Pa.

    Please read my comment on “the comment of the week on this site” FOLLOW THE MONEY!!!!!!!

    A segment of the financial world world wide will focus on GE Transportation and Erie in April at GE’s annual shareholders meeting. It will get world wide media at least from the manufacturing interest and possibly financial news in general. To miss this opportunity
    to show Erie at its best to people coming here from all over the country and the world will be a very sad day in the history of this area. I hope there are major plans being made by the interests who represent this area.

15. Danny Lucas
    February 3rd, 2008 at 6:01 pm

    When you are in a tug of war, only one more person pulling on your end of the rope could make the difference between a win and a failure.

    We are in a tug of war. Everyone looks at it as a simple economic dilemma and tend to line up on the end of the rope that suits them.

    It is critical to recruit as many extra hands on your rope side to pull in a symbionic relationship to victory, or everyone ends up in the mud.

    The airport and GE are a good example.
    Media coverage is more than likely as stated above.

    GE Corporates will fly in privately (except the one plane that Jack Welch’s former wife squealed about him using unfairly to stockholders). Shareholders are on their own, but only two types attend anyway. The first class is a group with a huge number of shares. That would include pension investment groups and the like (they should be appropriately hand held while here too). They may choose to invest in several other fine local firms they have little knowledge on.
    Sell yourself with some data, Oh local companies.

    The second group that attends shareholders meetings tend to be takeover artists like Carl Icahn. He doesn’t have enough dough to buy out GE management so I do not expect him, but if Bill Gates or the Yahoo boys show up, duck.

    So why not a Splash Lagoon treat on-the-house for the media folks and the major heads of GE? It is a tax write off here; it generates great publicity; the folks have fun and likely return; and we showcase us (without the Peninsula being us). From Splash Lagoon, they will meander to the Casino too.

    Not this year, but in the future, I would relocate the entire airport at least 25 miles from where it is. I would allow new tracks to be laid direct from the airport to GE Center (a research and development site) and to the Casino too.
    Imagine leaving the airport 25 miles out of town and spending a dollar for a ticket dispensed from a machine to allow you to take a choo-choo to GE at maybe 200 MPH. That would be travelling 100 miles in a half hour and 50 miles in one-quarter hour, so 25 miles will take about 7 minutes. I can assure you it would benefit GE, the city, great memories, potential sales to all cities, and a distinct pleasurable ride. Win-Win.

    The airport would be new, out of town so the whole county gets to chip in and have a say unlike fiefdom city it is now with Lou. South has lousy weather and McKean has water hassles, but east or west would be fabulous. In fact, a corridor could be sliced within the I-90 median easily. But, I favor a North South bound high speed train myself. growth is headed toward Summit and South. (Land as farms to the East and West are on prime growing soil and Lake moderating temperatures. Why fiddle around with that?

    There is a new magazine in town as of 2/1/08 at
    http://www.erielifemagazine.com . This is a winner and should be available to all GE attenders. We need help with someone locally (Manufacturers Assoc.?) picking up the tab and getting copies down to the Bayfront Meetings for everyone to read and take home.

    The high speed train idea is hardly new. Fly in to St. Louis and take the high speed train (slower than 200 mph, sorry) and it takes you 22 miles to the Mississippi. Cost me a buck; Karli my daughter was 50 cents. We had a blast.
    BUT, we have GE here to showcase that train; St. Louis does not. They use it to get you to Busch Stadium, the Arch, Paddleboats on the Mississippi, and the Zoo for starters. We could emulate that much better.

    Keep in mind, we used to make Griswold cookware, toys at Marx, resiitors at Erie Technological. None of these are recent extinct companies. They are a part of our long ago past. Note that we did not shut down and give the keys to the city away. We are gonna be around long after the naysayers say nay again……and better than ever too.

16. George Vietze
    February 4th, 2008 at 12:34 pm

    In an effort to discover whether any local interests or Economic Development departments had any special plans welcome the upcoming GE Shareholders meeting I made a numer of inquiries Visit Erie, Convention Bureau, Chamber of Commerce and Economic Development Departments.
    Jake Rouch of the Economic Development area of the Chamber of Commerce emailed “Bottom line is that YES the GE meeting will be used proactively to sell ERIE…that is why (the Chamber) pushed 4 year ago to get them here.
    More later…thanks for writing.”

    That is great news…..

    I further emailed Erie Life Magazine and will follow up if we can encourage them to write a story on the Best of Erie in their new up-scale magazine that was planning already to do the “100 best things in Erie”….

    Thank you Danny Lucas for the lead to this magazine and for representing us so well with the International Media.
    If you get on http://www.tradingmarkets.com and search for the story “GE keeps on rolling” Tuesday, Jan. 27,2008 it explains that the reporter from the Financial Times asked the CEO of GE what was GE’s top manufacturing site within GE and Jeffrey Immelt,CEO responded “You really need to check out ERIE and GE Transportation.” He did….
    and the snowball began………

    If we can get the magazine to do a first class article showcasing Erie and this area and that can be available
    to all that want to know about Erie and also do a WELCOME GE STORY…….this will help our GLOBAL ERIE become a little more GLOBAL……be careful what you focus on….it will show up….but you must be awake when it happens to enjoy the show……..

    This is how it works….THOUGHT….ATTENTION…FOCUS….
    LET GO….IT SHOWS UP…ENJOY….

    I thought for years it was hard work and struggle that counts….found out later…it was easier than that….
    that story is much too long…….thanks Danny Lucas and others, I am enjoying this trip…..

17. George Vietze
    February 4th, 2008 at 3:42 pm

    I just received a response from, Sherry Rieder, at Inside Erie, email edition. “If we publish your letter in this week’s Inside Erie, how shall we sign your name?”

    CNBC, the national financial news network, it ONWED by General Electric. If we can get them interested IN THEIR OWN COMPANY maybe they will send a TV crew. I have marketed ideas before, unless we are ready with a marketing program to SELL or PROMOTE Erie all we may end up with is more people with the WRONG perception. It took me awhile and talking with a lot of local people and visiting many of the attractions in Erie that are not visible to many people. The new magazine may be very helpful in showcasing Erie in a professional manner and something someone can put into their luggage and take home. This is a lot more progress on this subject as the “snowball” gets larger. I am happy that the Chamber has plans to showcase Erie and look forward to viewing those plans.

18. annonymous
    February 5th, 2008 at 12:29 pm

    We applaud your efforts, but please don’t get distracted by people who were demoted or fired by the Chamber. The Chamber has failed in its efforts to promote Erie and needs to be closed down. Some of them believe that GE will close down and move out of Erie.

    Have you noticed that the Chambers chairman and new president are not promoting the new Convention Center. Is it because they are too busy promoting themselves?

19. Danny Lucas
    February 7th, 2008 at 3:22 pm

    Probably a safe sidebar here George.

    The evidence is in that ALL current leadership has done little to prevent Erie from being a mudslide were we located in California.

    I avoid ALL of the standard folks who believe the future of this community rests on THEM, as they rest on their mountain laurels (state flower).

    When I walked into the office of Erie Life Magazine, I had an objective of meeting later in the week, getting hard copies of the Premier Issue for specific reasons, and exploring their intent.

    When a trucking firm located at 14th and Wayne, I went to the President there, NOT any politician for an answer to a question.

    If this community is to experience any phoenix out of the ashes, ALL past approaches can be junked. They are a bureauocracy of their own. That means, divided interests.

    Anyone in this town can contact anyone in the world and ask a question. That does not mean you will get a response. But you would be surprised at how often the top person will jot a reply to email and hit send. A seed is planted.

    We do not want to entertain GE and Shareholders.
    We want MORE investment by GE as we are a proven resource to them. That message is not hard to deliver.

    In terms of shareholders, they are investors and a prime source of venture capital. Most likely, none have heard the name John Kansius.

    WE do not need the government to make things happen.
    We need the government to step aside and get out of the way so things can happen. (We will step aside and let them have all the credit for nobody believes any of their baloney on anything anymore).

    I would prefer Erie Life over the other media magazine in Rebecca Styn’s column because of the relationship of the other to Erie Times News. Erie Times News has hardly been an active advocate of Erie emergence; they are after-the-fact reporters of “a company left again”. Their magazine is designed to save THEM, not this community (personal opinion). They will fail. They have yet to participate in the medium of the present let alone, the medium of the future.

    Erie Life Magazine will hopefully aid in printing an April edition (I think the GE hoopty doo is 4/23 ish) and that April Edition need not be a song and dance about GE. They get first class treatment and accolades galore. No, that is of no use to us.

    They need to be convinced of what we, as a people, have to offer. Note Steris productivity in Mexico is a no-go. Productivity here was not a factor; the work got done.
    And please spare me the union laments and/or praise. Go to Topix and rant with the ranters. That is all past issue.

    Union membership has risen this past year for the first time since the 1970’s. The pendulum is swinging to a cost-effective work force; not just the cheapest price.
    Ironically, that is US, Erie PA in a nutshell.

    We have marketed our very best qualities rather abysmally.

    I know that manufacturers and Erie Insurance types get hit up for funds by everyone and anyone. But I am telling all of you top CEO’s out there, an investment to purchase 3000 to 5000 April Editions of Erie Life Magazine would put quite a few into circulation as a new source never tried; and not tainted by ETN gasping for life.
    (Just 10 of you would make 50,000 copies available)
    Place your ads, send them printing money, and let’s see how things develop for new investment in town from international investors.

    Note that not one grant, not one study, not one Pittsburgh consultant is involved here.

    You bosses out there hit http://www.erielifemagazine.com and jot them a quick note that you want to build our community with wisely spent dollars. How can I help? They will likely tell you how many mags they can get out for how large of contribution. The future of Erie is then your call; not a politicians decision.

    VisitErie is atrocious. I went to it and saw a shadowed guy walking to a Siberian Gulag. They Main Events was just updated. well into January, you could view the tundra walker and see upcoming events for Nov. and Dec., 2007.
    Close the site; it is embarrassing to the community.

    The key to the sponsored April edition will be precisely what has happened here and with Peter Marsh at the London Financial Times. LINKS to that issue on the Internet will do the talking. We can make the links, without any level of government thank you kindly.

    The character of our community has already been established. We are miles ahead of many locales in values, work ethics, respect, decency, and the like.
    COMMUNICATING that character has never been done by any level of folks in charge in any venue; politicians, media, Chamber of Destruction, er, Commerce, Frederick’s, Schools and their Boards, everybody. We sink or swim together.

20. Peter Panepento
    February 7th, 2008 at 4:07 pm

    Dennis:

    Lifestyle magazines don’t exist to change the culture of a community. They are largely about leisure and I’m not really sure that, on their own, they will change a lot of minds about Erie. I think it’s a healthy sign that we’re seeing these ventures invest in the community. But I’m not really sure if either of them is going to spark a major change in the perception of Erie.

    Full disclosure: I write as a regular columnist for the “other” magazine you reference.

    I think both are useful reading. But I don’t think they’re going to move Erie’s perception meter very far.

    What you and George Vietze are doing — actually reaching out and contacting decision and opinion makers — will be much more effective. The voices of real people speak much louder.

21. Danny Lucas
    February 7th, 2008 at 4:46 pm

    Full disclosure: my name is Danny Lucas not Dennis.

    There are two mags out now. I have no relationship with either and comment rather independently on both.

    Erie Life Styles is reflective of what you describe. I think that if the Erie Times puts it out, it will reflect status quo. Not an iota of change will be printed.
    As red ink continues to pile up on Erie Times, GoErie, and the whole institution, a grasp at another avenue is not unreasonable. Red Ink will continue for the writers write the same old, same old. Once the oldies die off, Gen X,Y,Z, Millenial…that bunch, will say adios for good to the whole Mead-ium. They largely have already and lifestyle issues are not quite their realm. Maybe you could put out a Mag on Debt! Youngsters understand that well.

    The other, Erie Life Magazine, is a startling entry in its Premier Issue (now 7 days old). I liked what I read; I see potential for community change (depending on the outside Erie management philosophy and agenda, and it is sleek in appearance….imagine a Her Times compared to a Showcase in quality, feel, articles, etc). I have received a number of personal emails thanking for that new link. I saw it on Jenson’s Favorite Bar as soon as I posted it there too. This is a moving organization!

    The internet link to this magazine will find the voices of real people speaking in that location. And, those voices will reach out to decision makers, IF, Erie Life becomes a valuable resource to them.

    In the Erie Times version, that would not be possible.

    Keep in mind, a Lifestyle Mag is about leisure.
    A Erie Life mag is about Life. The people we need to reach, as a community, will likely show greater interest in life than leisure.

    Think of it as YOU are the New England Patriots, have all the home field advantages and power, team, and money, and rules.
    Erie Life is New York Giants. Versatile, exciting, new, adventurous, and…they know how to win in the end.

22. Peter Panepento
    February 7th, 2008 at 5:05 pm

    Danny:

    Sorry for the brain fart on your name. I know full well who you are. I need some more sleep or something.

    I’m not dismissing that magazine’s quality. I’ve seen and heard a lot of good things about it.

    What I was saying is that real people such as yourself speaking up and approaching people is a much more effective way to bring about real change.

    Hopefully this site is one platform for that. But really, this change will only come when a groundswell of people start conversations and engage other real people.

    And just because I write a short monthly column for Lake Erie Lifestyles, don’t turn me into Tom Brady or Rodney Harrison. I’m more like the guy who makes a few extra bucks directing traffic outside of the stadium a few Sundays a year.

    I’m writing for the magazine as a way to introduce people to GlobalErie and because I enjoy writing for an Erie audience.

23. Danny Lucas
    February 7th, 2008 at 7:23 pm

    Gee Pete,
    That brain is fartin there.
    I was thinking Bellichick, not Brady in my analogy. Perhaps we could agree it was a fantastic Superbowl for a change.

    Truth be told, for all I know, all of these publications may be Mead operations. I have never read Erie Lifestyle and can only comment that the ownership will likely lead to same old stuff from same old staff. I was hoping Ms. Cheeseman would shake things up by now, for the better.
    Word on the Street has it she saw her shadow and will dump this season of red ink within six weeks. I am optimistic yet.

    I am in agreement that one-on-one approach with new and creative thought is always an avenue for significant change.

    My reference to THIS magazine and link are solely due to the GE Shareholder event being a once in a lifetime event for us. If we rely on the Chamber, Mayor, County Exec, and Cuneo, and Lou to put something significant together, they will. In 2020.
    We need fast action now. A start up needs bucks from any and every source. I have yet to meet the publisher and doubt she has seen a word written on her behalf. But, if she does, and if the money folks let the money flow, a REAL change can be made to secure venture capital in Erie now, by creating an awareness of where that capital would best be employed. Erie, PA

    This would be taxpayer free dollars (or Euros) like in the old capitalist days.

    An email led to discussion with Mr. Marsh and a mellowing of his original take on Erie. I think the magazine and internet link will give us a second chance to make a first impression with the world in the very same way….
    with even more people.

    That you are working on the other side of the street with another outfit is not central to what I think can be done for Erie by Erie Life at http://www.erielifemagazine.com .
    At least you bring sanity to the thought processes there; plus a brain fart when the meetings are too long.

24. Peter Panepento
    February 7th, 2008 at 7:43 pm

    We have a lot to agree on here. That was a fantastic Super Bowl and I was thrilled with the result.

    And I was complimenting you for your efforts to promote Erie. Kudos for that.

25. George Vietze
    February 7th, 2008 at 9:33 pm

    Peter & Danny, for me these issues are a lot simpler. I moved here partly because I wanted a small town lifestyle and enjoy a community with a small town feel and culture.

    Also, I was amazed by the demographics and dynamics for growth that the area has, without the “big city” problems of lack of community spirit, traffic problems, clean air problems, water problems,etc. I live in the country, close to city service like shopping, theatre, restaurants, entertainment, art, culture and can try to be productive in my retirement years. I believe, like you, that private interests need to work together and any goverment help is nice but I do not want to depend on politicians to make things happen.

    Danny Lucas represented to me what I had already discerned from being in the area. The local people can disparage the area all they want but don’t be caught joining in unless you want to “light a fire” because in spite of the local frustrations with politics, jobs, economy etc., these locals love their home area with passion. It seemed to me that GE, even with all the labor issues that manufacturing plants have, has blessed this area with their presence, albeit in their self interest, but that what make everything work. WIN-WIN. We all are serving our interests.

    Where I come from, a visit from their shareholders and management qualify them as GUESTS. If someone treatment me or my family and contributed to our welfare as GE has to this community they would be GUESTS in my home when they visited. I don’t call that “wineing and dining” just common courtesy. We all view things differently and I respect everyone else’s viewpoint as their own, which they are perfectly entitled.

    Clear the perception, I am not and don’t consider myself a spokesman for anyone but myself. I don’t want that responsibility nor have I earned that right being a “recent” transplant. I just recognize that this community has pride in its home town and now that I also live in the area, have an interest in the prosperity of the community. If anyone else feel the same way, I welcome them to the party.

    Some times doing things the same old way produces the same old result. Change, if you want to change, can only happen by doing things different, but it certainly is not a requirement. I frankly, see things as very positive in Erie, the demographics will take care of themselves because the BASE is here already, the politics can help or hinder somewhat, but things will happen regardless because “Erie is on the move!”. Too many people have too much already invested in the area.

    My question is, if you want that growth to be positive for YOUR AREA, PLAN FOR THAT QUALITY GROWTH AND DON’T LET IT HAPPEN ANY OLD WAY OR LET DEVELOPERS PLAN IT FOR YOU, THEY REPRESENT THEIR FINANCIAL INTEREST.

    To me its that simple. As Jake eluded to, Who gets to be the spokespeople for the area? My answer is the people who live in the area who vote for their representatives to speak for them and those who speak for themselves and make things happen.