In the end, the money wasn't enough. Maryland and Montgomery County economic development officials offered Northrop Grumman $22.5 million in incentives to win the headquarters of the defense contractor — one of the most lucrative financial packages ever for a state not known for ponying up big dollars to win business. But last week, Maryland still lost out to neighboring Virginia, where state officials offered $12 million to $14 million in addition to undisclosed local incentives.
Northrop Grumman Corp. said it made its choice based on the selection of buildings in Virginia, not the states' business climates. But that was no consolation for politicians and business leaders in Maryland who wooed the company. The decision brought out old frustrations from the business community and renewed long-held criticism that the state isn't friendly to business. It led some to question whether Maryland has deep-seated policy and regulatory issues that even millions of dollars in incentives can't overcome.
Northrop's choice was another in a string of corporate headquarters losses Maryland has suffered over the years, most recently Black and Decker's sale to Connecticut-based Stanley Works, which removes a Fortune 500 corporate headquarters. Sweetheart Cup Co, U.S. Foodservice and Noxell Corp — the former owner of Cover Girl cosmetics — are other corporate HQs that have left the state or been swallowed up by mergers.
"There is no question that if states are going to attract [business] venues, they are going to be aggressive and create a friendly environment," said Norman R. Augustine, retired chairman and chief executive of Lockheed Martin Corp. "Maryland gets a big plus for its corporate governance laws. There are other areas where we don't have any advantage, and we will have to address those."
Augustine led a committee of high-profile business leaders, educators and politicians in going after Northrop. He said the state put together the most aggressive effort that he's ever seen it produce to lure a business. He believes Maryland's package was competitive with Virginia's, but the state simply didn't have as many buildings available. Maryland has made strides. There was a time when the state wouldn't have aggressively sought businesses — the state's political climate didn't allow it. And the state has amenities that businesses find attractive, corporate location experts said. There is a major airport, good schools, a highly educated population and the nearby federal government and its tens of billions of dollars in annual spending in Maryland.
Business leaders also give Maryland credit for its incorporation laws, which give companies flexibility in appointing directors and allow strong defenses against hostile takeovers. Yet fundamental issues, such as tax rates, labor costs, cost of living and construction costs still cause some businesses to think twice about calling the state home. After all the incentives, companies want to know what it's going to cost to do business in the long term.
"Companies want it all, they want everything," said John Boyd, a principal with the Boyd Co., a site-selection firm based in New Jersey. "But the reality is, we counsel our clients to focus on the fundamentals — the fundamental cost structure they have to live with for the next 50 years."
Political controversy can also color a state's business climate. Maryland attracted national attention in 2006 when the General Assembly approved a measure that required Wal-Mart Stores Inc. to pay more for its employee health care. Gov. Martin O'Malley's criticism of the pay package of Constellation Energy Group CEO Mayo Shattuck was a deterrent to executives thinking of moving to Maryland, business leaders say.
"Many business people that I have talked to have indicated that even discussions of public policy here in Maryland — even if these bills aren't passed and aren't signed into law — does give the impression that Maryland is not as business-friendly as Virginia or other states," said Kathleen Snyder, CEO of the Maryland Chamber of Commerce. "We have a great location, one of the most highly educated work forces in the country, a great transportation network. But we also have some tax issues and regulatory proposals that stand in our way of being 1, 2 and 3."
Virginia passed a $50 million economic development package this year that included programs to lure businesses to the state and provided incentives to encourage energy research and economic development at universities. Maryland's budget, meanwhile, included $1.1 million in cuts at the Department of Business and Economic Development. SOURCE: Baltimore Sun
Showing posts with label business. Show all posts
Showing posts with label business. Show all posts
April 30, 2010
Md. Racing Commission approves transfer of Laurel and Pimlico
The Maryland Racing Commission Thursday approved the transfer of Laurel and Pimlico race tracks to MI Developments Inc., whose CEO committed to bringing the businesses to a break-even status within two years. The approval was issued three days after a bankruptcy judge gave approval of Ontario-based Magna Entertainment Corp.’s reorganization plan that includes the transfer of five of its tracks and other assets to MID, its parent company, in exchange for the payment of debts and settlements.
CEO Dennis Mills said after the commission meeting, which was held at the Pimlico Race Course clubhouse and overlooked preparations being made for the 135th Preakness Stakes, he hoped to bring the properties to financial solvency quickly.
“Two years is the max, but we want to get [them] to break-even within months,” he said.
He said MID’s first order of business after the May 15 Preakness would be to meet with all the industry stakeholders, including horsemen and customers. The goal of those meetings would be to get feedback on how to make racing a financially viable proposition once again. During the bankruptcy proceedings in Delaware, testimony revealed that while the property value of many of Magna’s assets were high, the businesses themselves were generally losing propositions. Mills added MID would take suggestions sent through its website and could consider having meetings open to the public.
“The second thing is, after we get those ideas, we execute them,” he said.
But MID’s executives held back when asked by commission members about their plans for Laurel Park and Pimlico. They said MID had about $130 million in cash and capital from its real estate ventures, and noted their investment in improving Laurel’s turf track, now considered one of the best in the country. SOURCE: Maryland Daily Record
CEO Dennis Mills said after the commission meeting, which was held at the Pimlico Race Course clubhouse and overlooked preparations being made for the 135th Preakness Stakes, he hoped to bring the properties to financial solvency quickly.
“Two years is the max, but we want to get [them] to break-even within months,” he said.
He said MID’s first order of business after the May 15 Preakness would be to meet with all the industry stakeholders, including horsemen and customers. The goal of those meetings would be to get feedback on how to make racing a financially viable proposition once again. During the bankruptcy proceedings in Delaware, testimony revealed that while the property value of many of Magna’s assets were high, the businesses themselves were generally losing propositions. Mills added MID would take suggestions sent through its website and could consider having meetings open to the public.
“The second thing is, after we get those ideas, we execute them,” he said.
But MID’s executives held back when asked by commission members about their plans for Laurel Park and Pimlico. They said MID had about $130 million in cash and capital from its real estate ventures, and noted their investment in improving Laurel’s turf track, now considered one of the best in the country. SOURCE: Maryland Daily Record
April 28, 2010
RedGate: Like a "House that is falling apart"
If you’re a duffer in Rockville, you’re probably not going to be happy. The Red Gate golf course may not survive without funding from the city of Rockville as is proposed in the budget for fiscal year 2011, and the revenue from the city’s speed camera project falling short of the budget’s prediction may be to blame. “We are facing a fiscal crisis with Red Gate and it’s like a house that is falling apart,” Rockville Mayor Phyllis Marcuccio said. “I would hate to think we are neglecting the course just because we don’t have the money to operate it right this moment.”
“Some of these losses are from the significant lower spending in the speed cam project,” said Burt Hall, director of the city’s Parks and Recreation Department at Monday’s city council meeting. The department has funded the golf course in the past, giving Red Gate $372,000 in 2005 as part of a five-year business plan meant to rehabilitate the course. Red Gate representatives say their fiscally precarious situation could mean its closing in the near future without continued support from an “enterprise fund.”
“The course has been highlighted as one of the recreational centers in financial straits right now,” said Joe Jordan, the chairman of the Red Gate Advisory Board. Jordan, who calls himself the “one man band” for Red Gate. Parks and Recreation’s fiscal 2012 budget could see a bump of $700,000, some of which could go towards the course, but Jordan fears the course may not survive in the meantime.
“At the end of five years, the course wasn’t supposed to need this money any more,” Hall said. Parks and Recreation’s proposed $11.8 million budget is already $4.5 million less than they had hoped for. The fiscal 2011 budget proposes using the money for asphalt improvements, street landscaping, park enhancements for disabled children, and maintenance.
“Even with these necessary spending decreases, we are looking at a lot less than we are used to,” Hall said. “We just don’t have room in our budget for Red Gate.”
“Some of these losses are from the significant lower spending in the speed cam project,” said Burt Hall, director of the city’s Parks and Recreation Department at Monday’s city council meeting. The department has funded the golf course in the past, giving Red Gate $372,000 in 2005 as part of a five-year business plan meant to rehabilitate the course. Red Gate representatives say their fiscally precarious situation could mean its closing in the near future without continued support from an “enterprise fund.”
“The course has been highlighted as one of the recreational centers in financial straits right now,” said Joe Jordan, the chairman of the Red Gate Advisory Board. Jordan, who calls himself the “one man band” for Red Gate. Parks and Recreation’s fiscal 2012 budget could see a bump of $700,000, some of which could go towards the course, but Jordan fears the course may not survive in the meantime.
“At the end of five years, the course wasn’t supposed to need this money any more,” Hall said. Parks and Recreation’s proposed $11.8 million budget is already $4.5 million less than they had hoped for. The fiscal 2011 budget proposes using the money for asphalt improvements, street landscaping, park enhancements for disabled children, and maintenance.
“Even with these necessary spending decreases, we are looking at a lot less than we are used to,” Hall said. “We just don’t have room in our budget for Red Gate.”
Big Jump in Hiring as Local Staffing Company Hits Milestone
Washington DC - 10 til 2 – The Part-Time Placement Service of Montgomery County is marking its one-year anniversary with a marked upswing in employment. 10 til 2 provides employers with college educated, highly skilled employees who are looking for long-term, part-time work.
“2010 has already shown remarkable growth for us with numbers up 82 percent from just four months ago,” said Cathy Nestoriak, owner of the 10 til 2 Montgomery County franchise. “I am thrilled with the recognition we are receiving in DC and Maryland as a savvy business solution. We have a lot to be excited about.”
“10 til 2 really holds a unique position in the industry,” said Nestoriak. “We take care of the expensive, time-consuming human resource duties so our clients can focus on running their business. And the experienced professionals we place work on a part-time basis. It really gives businesses the opportunity to both seize control of costly payroll and move forward in a fluctuating economy.”
About 10 til 2
10 til 2 – The Part-Time Placement Service specializes in providing companies with quality, college-educated employees on a long-term, part-time basis; and can staff virtually any professional position. 10 til 2 has a proprietary database of experienced professionals, giving businesses a shortcut to the best talent available. For more information about 10 til 2 please go to www.tentiltwo.com
“2010 has already shown remarkable growth for us with numbers up 82 percent from just four months ago,” said Cathy Nestoriak, owner of the 10 til 2 Montgomery County franchise. “I am thrilled with the recognition we are receiving in DC and Maryland as a savvy business solution. We have a lot to be excited about.”
“10 til 2 really holds a unique position in the industry,” said Nestoriak. “We take care of the expensive, time-consuming human resource duties so our clients can focus on running their business. And the experienced professionals we place work on a part-time basis. It really gives businesses the opportunity to both seize control of costly payroll and move forward in a fluctuating economy.”
About 10 til 2
10 til 2 – The Part-Time Placement Service specializes in providing companies with quality, college-educated employees on a long-term, part-time basis; and can staff virtually any professional position. 10 til 2 has a proprietary database of experienced professionals, giving businesses a shortcut to the best talent available. For more information about 10 til 2 please go to www.tentiltwo.com
April 27, 2010
Maryland loses Northrop Grumman; heading to Virginia
Defense contractor Northrop Grumman Corp. will move its headquarters cross country to the Virginia suburbs of Washington, D.C., to be closer to its key customers in the U.S. government, officials said Monday. Maryland Gov. Martin O'Malley congratulated northern Virginia for winning an intense sweepstakes between the two states for the corporate control center. Virginia Gov. Bob McDonnell planned to announce the relocation on Tuesday in Arlington. The company announced in January that it wanted to move from Los Angeles to the Washington area by 2011. A spokesman did not immediately return calls and an e-mail Monday seeking comment on the company's choice.
Northrop Grumman CEO Wesley G. Bush told O'Malley on Monday that the company decided to move to one of two sites in Virginia, O'Malley spokesman Rick Abbruzzese said. The site will be either in western Fairfax County, near Washington Dulles International Airport, or in the Crystal City area of Arlington, which is almost within walking distance of the Pentagon, a company official said on condition of anonymity because the person didn't want to upstage McDonnell's announcement.
The move will send about 300 of Northrop Grumman's senior employees to the Washington metropolitan region. The company, which provides aerospace, electronics, information systems, shipbuilding and technical services, has about 120,000 employees worldwide. SOURCE: ABC
Northrop Grumman CEO Wesley G. Bush told O'Malley on Monday that the company decided to move to one of two sites in Virginia, O'Malley spokesman Rick Abbruzzese said. The site will be either in western Fairfax County, near Washington Dulles International Airport, or in the Crystal City area of Arlington, which is almost within walking distance of the Pentagon, a company official said on condition of anonymity because the person didn't want to upstage McDonnell's announcement.
The move will send about 300 of Northrop Grumman's senior employees to the Washington metropolitan region. The company, which provides aerospace, electronics, information systems, shipbuilding and technical services, has about 120,000 employees worldwide. SOURCE: ABC
April 26, 2010
Health care bill requires businesses to list every expense over $600
Most people understand that the IRS is likely to need thousands of new agents to enforce the Obama Administration’s new health insurance mandate – starting in 2014, you can either buy health insurance or the government will confiscate your tax refund, at least. But hidden deep within the 2,000 plus page law is a vast new authority for the IRS that proponents admit has nothing at all to do with health care.
Instead, its purpose is to squeeze more and more tax dollars from businesses to eliminate the so-called “tax gap” – bureaucratese for every red cent Americans owe the IRS but don’t pay up come April 15. In section 9006 of the health care law, many businesses will be required for the first time to report every expense they incur over $600. Right now, businesses must report the wages they pay employees. But they are exempt from reporting payments to other businesses and for merchandise. Even small businesses can easily incur thousands of business expenses over $600 each year. Critics say the requirement will inundate businesses with new red tape and cost them huge sums preparing paperwork.
“This is an enormous and costly new paperwork burden that likely hit about every business, regardless of how small,” Sen. Kit Bond (R-MO) said in a December floor statement about the section.
A Democratic aide who spoke on the condition of anonymity said Sen. Max Baucus (D-MT), chairman of the pivotal finance committee, was a key backer of including the section in the health care law. The aide defended the provision as a “voluntary” way of increasing tax revenues without raising tax rates, adding that then President George W. Bush’s administration supported the requirement.
“Voluntary information reporting improves tax compliance without raising taxes on small businesses, which is why Presidents . . . Bush and Obama both proposed similar policies to this one,” the aide said.
The information will give the IRS new ammo against businesses that under-report their income or overstate their expenses. If the IRS wants to audit that business, it can roughly calculate its income by analyzing reported payments to that business and its expenses by the payments the business reported. The Democratic aide said the requirement merely extends the reporting requirement beyond corporations to other types of businesses like limited liability companies (LLC). But the language of the statute makes no apparent distinction between the different types of businesses. Instead it says the requirement applies to “any corporation.” Either way, many small businesses are going to need to file thousands more 1099 forms to the IRS – on top of the new requirements and fees they already face in the health care law.
The National Federation of Independent Businesses has been leading the charge against the language and calls the new requirement “a tremendous new paperwork burden for small business.” House Republicans are already scrutinizing the language and considering legislation that would repeal it. SOURCE: Daily Caller
Instead, its purpose is to squeeze more and more tax dollars from businesses to eliminate the so-called “tax gap” – bureaucratese for every red cent Americans owe the IRS but don’t pay up come April 15. In section 9006 of the health care law, many businesses will be required for the first time to report every expense they incur over $600. Right now, businesses must report the wages they pay employees. But they are exempt from reporting payments to other businesses and for merchandise. Even small businesses can easily incur thousands of business expenses over $600 each year. Critics say the requirement will inundate businesses with new red tape and cost them huge sums preparing paperwork.
“This is an enormous and costly new paperwork burden that likely hit about every business, regardless of how small,” Sen. Kit Bond (R-MO) said in a December floor statement about the section.
A Democratic aide who spoke on the condition of anonymity said Sen. Max Baucus (D-MT), chairman of the pivotal finance committee, was a key backer of including the section in the health care law. The aide defended the provision as a “voluntary” way of increasing tax revenues without raising tax rates, adding that then President George W. Bush’s administration supported the requirement.
“Voluntary information reporting improves tax compliance without raising taxes on small businesses, which is why Presidents . . . Bush and Obama both proposed similar policies to this one,” the aide said.
The information will give the IRS new ammo against businesses that under-report their income or overstate their expenses. If the IRS wants to audit that business, it can roughly calculate its income by analyzing reported payments to that business and its expenses by the payments the business reported. The Democratic aide said the requirement merely extends the reporting requirement beyond corporations to other types of businesses like limited liability companies (LLC). But the language of the statute makes no apparent distinction between the different types of businesses. Instead it says the requirement applies to “any corporation.” Either way, many small businesses are going to need to file thousands more 1099 forms to the IRS – on top of the new requirements and fees they already face in the health care law.
The National Federation of Independent Businesses has been leading the charge against the language and calls the new requirement “a tremendous new paperwork burden for small business.” House Republicans are already scrutinizing the language and considering legislation that would repeal it. SOURCE: Daily Caller
April 20, 2010
east county's fast-food boom
Sure, all those Downtown Silver Spring folks get to brag about their speakeasies and honey-lavender roasted chicken, but we've got our own culinary renaissance happening Up The Pike. If you've been down Randolph Road in Colesville lately, you know we're getting another Wendy's.
That's right, y'all: it's the same spicy chicken fillet and frozen dairy dessert you've come to enjoy in Wheaton, Briggs Chaney, Aspen Hill and Calverton, now just ten minutes away from all of those places. With those kind of eating options, it's only a little disappointing that despite a change in liquor laws, an ongoing lack of investment in our local economy (other than things that can bring profits back to corporate headquarters in Dublin, Ohio), continue to render East County a fine-dining wasteland.
While the urban planner in me is cautiously excited about the provision of on-street parking, sidewalks, and outdoor dining at the Colesville Wendy's, it's frustrating that this new branch will look much like the other four within spitting distance of my house. Of course, this means that a restaurant that broke ground last month could have the fry-o-lators up and running by May Day, if not sooner. SOURCE: Just Up the Pike
That's right, y'all: it's the same spicy chicken fillet and frozen dairy dessert you've come to enjoy in Wheaton, Briggs Chaney, Aspen Hill and Calverton, now just ten minutes away from all of those places. With those kind of eating options, it's only a little disappointing that despite a change in liquor laws, an ongoing lack of investment in our local economy (other than things that can bring profits back to corporate headquarters in Dublin, Ohio), continue to render East County a fine-dining wasteland.
While the urban planner in me is cautiously excited about the provision of on-street parking, sidewalks, and outdoor dining at the Colesville Wendy's, it's frustrating that this new branch will look much like the other four within spitting distance of my house. Of course, this means that a restaurant that broke ground last month could have the fry-o-lators up and running by May Day, if not sooner. SOURCE: Just Up the Pike
Venture capitalist investment falls off in first quarter
Venture capitalists in the first quarter were less enthusiastic, both nationally and in Maryland, as total investments fell from the fourth quarter. In Maryland, 14 VC investment deals totaled $61.0 million in the first quarter, down from 21 deals totaling $105.3 million in the fourth quarter, according to new data from the latest MoneyTree Survey from PricewaterhouseCoopers, National Venture Capital Association and Thomson Reuters. Nationally, VC investment fell 8.9 percent to $4.73 billion from $5.18 billion. Still, total investment for the quarter was up both nationally and in Maryland from the first quarter of 2009. In the U.S., first-quarter investments last year totaled $3.4 billion; in Maryland, they totaled $43.3 million.
"Despite a great deal of economic uncertainty in the first quarter, the venture capital industry moved forward with a more active start than it did in 2009, which bodes well for the remainder of the year," Mark Heesen, president of the VC association, said in a statement. SOURCE: Gazette
"Despite a great deal of economic uncertainty in the first quarter, the venture capital industry moved forward with a more active start than it did in 2009, which bodes well for the remainder of the year," Mark Heesen, president of the VC association, said in a statement. SOURCE: Gazette
April 19, 2010
Veteran banking pair heads to Monument Bank
April 19, 2010 (Bethesda, Md.) – A seasoned banking duo is leading the charge as Monument Bank plans to branch out into another market in Montgomery County. Monument Bank, a Maryland-chartered community bank based in Bethesda, announces today that longtime banking partners Lawrence J. Bolton and Deborah J. Keller have joined Monument as development officers in preparation for the bank opening its second location. Pending regulatory approval, the business-focused bank plans to open a branch in Silver Spring at 8602 Georgia Ave., situated at the intersection of Georgia Avenue and Colesville
Road, in mid-May. The bank currently has one branch, in Bethesda, near its administrative office.
Bolton is now a Senior Vice President and Area Business Development Officer for Monument in the Silver Spring market, while Keller serves as a Vice President, Branch Manager and Business Development Officer in that same market.
“We are extremely pleased to welcome Larry and Debbie to Monument’s development team,” says H.L. Ward, the bank’s President and CEO. “The banking landscape in Silver Spring is quite competitive, and for our new location to succeed in that market, we need veteran professionals running this office. We have found those people in Larry and Debbie. They have decades of experience in Silver Spring and consistently set the standard in customer service.”
Bolton’s more than 40 years in banking includes 25 years in the Silver Spring market; all of Keller’s more than 30 years in the industry have come in that geographic area. For the past 24 years, the two have worked together at various banks, most recently at Bethesda-based EagleBank, where Bolton was a Senior Vice President and Regional Sales Manager for the Silver Spring market and Keller was a Vice President, Branch Manager and Business Development Officer, also in Silver Spring. The pair also previously worked together at Allegiance Bank of Maryland, Suburban Bank of Maryland, First Union Bank and First American Bank.
In their new roles at Monument, Bolton and Keller will serve high net worth individuals and small and medium-sized businesses in a wide variety of industries, including accountants, attorneys, doctors and other professional-service firms.
“We’re very excited to call Monument Bank our new home,” Keller says. “Growing a branch in Silver Spring is a challenge that we eagerly accept, and we know that this office can flourish, because the personal service that we provide to customers is second to none.”
As the Silver Spring office gets up and running, Bolton and Keller will hire an assistant branch manager and teller, with other hires likely to come further down the road. Monument Bank is in an expansion mode this year. The bank recently doubled the amount of administrative space it occupies in Bethesda and looks to add at least 10 people, and possibly between 16 and 18, to its current staff of 32 employees.
“Monument is a growing community bank that is all about providing excellent service to its customers,” Bolton says. “Debbie and I look forward to opening this new branch in the near term. Our customers will always have two people to go to when doing business with us. That really sets us apart.”
About Monument Bank:
Monument Bank, founded in 2005, is a privately held, Maryland-chartered community bank based in Bethesda. Relying on quality service and state-of-the-art technology, the bank currently has one branch, also in Bethesda, and a work force of 32 people. Monument’s board of directors consists of business owners and senior executives from companies in the Washington, D.C., area across various industries, such as banking, finance, professional services, and real estate. For more information, please visit: MonumentBank.comMedia Contact: Neil Adler of D*MNGOOD®. 202-683-8975 office. 410-499-5004 cell. neil.adler@dmngood.com
April 18, 2010
April 17, 2010
Qiagen gets Montgomery County, Maryland help in expansion plans
Qiagen NV is getting at least $1 million in Maryland and Montgomery County incentives to aid in its latest $52 million Germantown campus expansion, which includes plans to add 90 new jobs in the state. The molecular diagnostics company, which is based in the Netherlands, plans to add 117,000 square feet of new manufacturing and office space to its decade-old U.S. headquarters at the corner of Dawson Farms and Germantown roads.
It hopes to break ground this fall and complete the new buildings in 2012, increasing its local footprint to 347,000 square feet. The expansion plans are a scaled-up version from December, when the company had been considering additions ranging from 90,000 to 118,000 square feet. The move, which is the second time Qiagen has expanded in recent years, follows the foreign company’s acquisitions of Gaithersburg-based Digene Corp. in 2007 for $1.6 billion and Frederick-based SABiosciences Corp. last year for $90 million.
Company officials had said in December that they would be looking for incentives to help with construction bills. Indeed, to assist with project costs, the Maryland Department of Business and Economic Development is ponying up a $700,000 conditional loan through its Maryland Economic Development Assistance Authority and Fund — as long as Qiagen adds 90 new jobs in the state in the next five years. SOURCE: Washington Business Journal
April 16, 2010
Montgomery County loses $4.6B in taxable revenue, leaving budget gap at almost $1B
Millionaires fleeing state tax cause 82 percent of income drop
Montgomery County, Maryland's richest county, is facing a budget shortfall of nearly $1 billion as high-income residents flee the state's millionaires tax. Budget officials told the County Council on Tuesday that Montgomery must once again write down its projected income tax revenues, this time by $44 million for this fiscal year and $100 million for next fiscal year, which starts in July. Those write-downs come up on top of a $24 million income tax reduction disclosed last week for the current fiscal year, and are in addition to a nearly $800 million budget gap projected for next fiscal year.
The budget holes have threatened the county's AAA bond rating and prompted County Executive Ike Leggett to propose raising energy taxes by 63.7 percent, eliminating 18 bus routes and closing a public library in Noyes. A weak economy that ate away at capital gains and slowed the growth of small businesses can account for much of the county's fiscal woes, but county officials said the state compounded the problem by raising taxes for millionaires to 6.25 percent from 5.5 percent in 2008.
"Their timing couldn't have been worse," said Councilman Mike Knapp, D-Germantown, who said the millionaires tax has had a "devastating" effect on the county's budget. "Talk about cutting yourself off at the knees."
A "major factor" for the county's budget woes is the loss of its millionaire taxpayers, according to county economist David Platt.
Montgomery lost $4.6 billion in taxable income from tax years 2007 to 2008. More than 82 percent of that drop comes from taxpayers with incomes of $1 million or more, county records show. County data show that 216 millionaires who filed taxes for 2007 did not file with the state for 2008, compared with an average of 119 in previous years. While some of those not filing may have died or decided not to file a tax return, county officials said there is plenty of anecdotal evidence that Maryland's millionaires moved to more tax-friendly states.
"It's pretty clear that people did take their income someplace else," said Tim Firestine, chief administrative officer, noting that the loss of just a handful of millionaires has a disproportionate effect on the county's revenues.
Worse yet, Knapp said, was the likelihood that many millionaires who left won't come back when the tax expires at the end of the year, leaving the county's tax base smaller.
"Even if the economy gets better, we're going to have less money," Knapp said.
The millionaires tax may become a campaign talking point. Former Republican Gov. Bob Ehrlich already has criticized Gov. Martin O'Malley, a Democrat, for his strong support of the tax.
Also in Montgomery » The County Council gave preliminary approval to a revised "Science City" plan that supporters hope will make west Gaithersburg an epicenter of the life-sciences industry. Council members voted 8-1 on a straw vote, with Councilman Marc Elrich opposed, for a plan that scales back the county planning commission's proposal to 17.5 million square feet of development from 20 million. The plan also includes new safeguards against traffic congestion.
» A former County Council aide who sued the county for $5 million for allegedly violating an anti-discrimination law she helped write has dropped her lawsuit. Dr. Dana Beyer had charged in court records that the county discriminated against her because she is a transgender individual.
SOURCE: Washington Examiner
Montgomery County, Maryland's richest county, is facing a budget shortfall of nearly $1 billion as high-income residents flee the state's millionaires tax. Budget officials told the County Council on Tuesday that Montgomery must once again write down its projected income tax revenues, this time by $44 million for this fiscal year and $100 million for next fiscal year, which starts in July. Those write-downs come up on top of a $24 million income tax reduction disclosed last week for the current fiscal year, and are in addition to a nearly $800 million budget gap projected for next fiscal year.
The budget holes have threatened the county's AAA bond rating and prompted County Executive Ike Leggett to propose raising energy taxes by 63.7 percent, eliminating 18 bus routes and closing a public library in Noyes. A weak economy that ate away at capital gains and slowed the growth of small businesses can account for much of the county's fiscal woes, but county officials said the state compounded the problem by raising taxes for millionaires to 6.25 percent from 5.5 percent in 2008.
"Their timing couldn't have been worse," said Councilman Mike Knapp, D-Germantown, who said the millionaires tax has had a "devastating" effect on the county's budget. "Talk about cutting yourself off at the knees."
A "major factor" for the county's budget woes is the loss of its millionaire taxpayers, according to county economist David Platt.
Montgomery lost $4.6 billion in taxable income from tax years 2007 to 2008. More than 82 percent of that drop comes from taxpayers with incomes of $1 million or more, county records show. County data show that 216 millionaires who filed taxes for 2007 did not file with the state for 2008, compared with an average of 119 in previous years. While some of those not filing may have died or decided not to file a tax return, county officials said there is plenty of anecdotal evidence that Maryland's millionaires moved to more tax-friendly states.
"It's pretty clear that people did take their income someplace else," said Tim Firestine, chief administrative officer, noting that the loss of just a handful of millionaires has a disproportionate effect on the county's revenues.
Worse yet, Knapp said, was the likelihood that many millionaires who left won't come back when the tax expires at the end of the year, leaving the county's tax base smaller.
"Even if the economy gets better, we're going to have less money," Knapp said.
The millionaires tax may become a campaign talking point. Former Republican Gov. Bob Ehrlich already has criticized Gov. Martin O'Malley, a Democrat, for his strong support of the tax.
Also in Montgomery » The County Council gave preliminary approval to a revised "Science City" plan that supporters hope will make west Gaithersburg an epicenter of the life-sciences industry. Council members voted 8-1 on a straw vote, with Councilman Marc Elrich opposed, for a plan that scales back the county planning commission's proposal to 17.5 million square feet of development from 20 million. The plan also includes new safeguards against traffic congestion.
» A former County Council aide who sued the county for $5 million for allegedly violating an anti-discrimination law she helped write has dropped her lawsuit. Dr. Dana Beyer had charged in court records that the county discriminated against her because she is a transgender individual.
SOURCE: Washington Examiner
Silver Spring's Svec Conway Printing announces installation of Ricoh C-900-S
Svec Conway Printing is proud to announce the recent installation of it’s new Ricoh C-900-S Digital Color Press. Photographed with their new acquisition are business owners Bobby & Sheila Firestein. Svec Conway Printing located in Silver Spring MD was established in 1982, rejuvenated in 2003 with it’s new ownership specializes in printing a variety of booklets, brochures, pamphlets and magazines for corporations, universities and associations.
The recent purchase and installation of the Ricoh C-900-S will allow Svec Conway Printing the opportunity to offer existing and new clients the ability to produce a larger array of components at shorter run lengths and a more economical value, stated Bobby Firestein. In addition to the companies digital press installation Svec Conway also acquired several finishing components to compliment their new digital printing services. These finishing services include, wiro binding, plastic coil binding, perfect binding and gate-folding.
Svec Conway Printing continues to be active with it’s numerous Green initiatives. Participating with local organizations like Clean Currents the company utilizes 100% Wind Power and through it’s affiliation with The Carbon Fund the company is offsetting it’s CO-2 emissions. Combined with these associations Svec Conway also utilizes both the FSC and SFI paper chain of custody standards.
For additional information about Svec Conway please contact Bobby (ext. 10) or Sheila (ext. 22) Firestein at 301-589-6666.
April 15, 2010
Montgomery County tentatively OKs Gaithersburg West plan
The Montgomery County Council approved an initial version of the Gaithersburg West Master Plan in a straw vote Tuesday with a new name, The Great Seneca Science Corridor Plan, and an eight-member majority that included Councilmember Phil Andrews, who has long opposed the density proposed in the plan. The council will take a final vote on the Great Seneca Science plan in the next two weeks. Still, the tentative approval is significant, as it addressed the hotly debated issues of density and traffic congestion. The planning board initially recommended up to 20 million square feet of development, a number the county executive and Andrews said was too much. They instead recommended up to 18 million square feet.
The plan now calls for up to 17.5 million square feet. The council also discussed “critical lane volume,” which deals with road congestion. The original master plan proposal set the limit at 1,600 vehicles per lane per hour, a limit the revised plan reduces to 1,450 vehicles per lane per hour. SOURCE: Washington Business Journal
April 13, 2010
Don Rogers, lawyer, assists business start-ups and early stage businesses
Potomac based Shulman, Rogers, Gandal, Pordy & Ecker, PA is one of the largest and most respected law firms in the Washington Metropolitan area. Founded in 1972, the firm practices law across a variety of areas from corporate law, to real estate, to litigation to estate planning and family law. Mr. Don Rogers is one of the managing partners, and over the past 30 years, Mr. Rogers has worked with many business entities, including start-up and early-stage business enterprises to assist them in achieving their business objectives. Mr. Rogers has assisted his clients in obtaining required resources such as seed capital, venture capital, and strategic alliances, developed various stock option plans for key employees and assisted clients in implementing succession plans for transition to the next generation of owners.
Mr. Rogers is also the Chairman of the EagleBank Foundation, a 501(c)(3) organization, providing funds to fight cancer and other worthwhile charities. His accounting degree (B.S. in accounting from Hunter College of the University of New York) and his J.D. from Georgetown University, and his LLM in taxation from Georgetown University allows him to provide businesses in the Maryland area and beyond with accounting and legal advice. Additional information on Shulman, Rogers, Gandal, Pordy & Ecker is available at ShulmanRogers.com.
PHOTO: Don Rogers, managing partner
ProMark delivers super efficient homes in amenity-rich, transit-ready environments
ProMark Real Estate Services has served the greater Washington, DC metro region for over a decade. Managing Member Robert O. Eisinger founded the company in 2000 with longtime business partner Thomas D. W. Fauquier. The company continues in the tradition of Eisinger, Kilbane & Associates, historically one of the area’s most innovative commercial developers and among the first real estate firms in the country to capitalize on the purchase of air rights. The Eisinger family has deep roots in the local real estate industry and maintains a long history of groundbreaking design, environmentally responsible development and civic engagement. Today, the company is engaged in both the White Flint and Gaithersburg West planning processes and is developing a new workforce housing prototype to overcome the barriers to the development of market-rate, moderately priced housing in Montgomery County, MD. Recognizing that the region’s vitality is tied to its ability to house an economically diverse resident population, ProMark delivers super efficient homes in amenity-rich, transit-ready environments.
> Hilary Allard Goldfarb. Planning Director, ProMark. 16220 Frederick Rd. Suite 325. Gaithersburg, MD 20877. 301-208-6700 (office). 240-481-4282 (cell)
PICTURE: an aPAD concept living space
> Hilary Allard Goldfarb. Planning Director, ProMark. 16220 Frederick Rd. Suite 325. Gaithersburg, MD 20877. 301-208-6700 (office). 240-481-4282 (cell)
PICTURE: an aPAD concept living space
David Graling leads Gelman, Rosenberg & Freedman, CPAs
Gelman, Rosenberg & Freedman has been part of the Washington, DC metropolitan region since 1981. The firm provides accounting, auditing and consulting services to an extensive client base, which consists of nonprofit organizations and for-profit corporations, including government contractors, research and development firms, retail businesses, professional service firms, partnerships and trusts, as well as individual clients. In addition to the Washington, DC metropolitan area, we also serve businesses in other locations in the United States, and we are involved in on-site field office auditing in Europe, Africa, Latin America, and central and southern Asia.
David F. Graling, CPA, MBA. President of Gelman, Rosenberg & Freedman, CPAs. 4550 Montgomery Avenue, Suite 650 N Bethesda, MD 20814. Phone: (301) 951-9090. dgraling@grfcpa.com. www.grfcpa.com
MC can now own biotech company with public tax dollars
ANNAPOLIS - The Maryland General Assembly approved a bill that would allow Montgomery County to invest taxpayers dollars in biotech startups. The measure would empower Montgomery to make stock investments in Maryland companies. State law prohibits local governments from making equity investments, which are regarded as high-risk, according to a legislative analysis of the bill. The state government is allowed to make such investments, however, and Montgomery officials wanted in on the return.
"We want to allow the county to do what the state does," said Montgomery's legislative analyst, Sheila Sprague. Sprague said the bill, sponsored by the Montgomery delegation, was drafted at the urging of County Executive Ike Leggett. The Senate unanimously approved the bill, while the measure won approval by a 135-3 vote in the House. Gov. Martin O'Malley is expected to sign the measure. But a Montgomery County senator stopped the ball rolling when the measure went before the Senate Finance committee during the approval process.
"I read this [bill], and I see it as saying county government can own 25 percent of a private business ... and I actually have a problem with that," said Sen. Rob Garagiola, D-Poolesville. "It seems like there could be a lot of conflicts." Finance Committee Chairman Thomas M. Middleton asked Garagiola to return the bill to the Montgomery delegation and add a clawback provision to give taxpayers some financial security. When Garagiola aired his grievances before the delegation, Sens. Brian Frosh, D-Bethesda, and Mike Lenett, D-Aspen Hill, chimed in.
Frosh said the bill seemed "risky," and Lenett suggested, "Why don't we just save the money [instead of investing]." But Sens. Rich Madaleno, D-Wheaton, and Rona Kramer, D-Olney, said the bill was fine as written. Kramer said the money the county would be investing would be spent on grants and loans, and the county should be able to profit off its investments. Montgomery's Department of Economic Development would be in charge of making the county's investment decisions. The department has about $850,000 in county appropriations for business loans, said Director Steve Silverman. But the department can petition the County Council for more money. The bill would unleash the department's funds for investments, and there is no cap limiting the amount of money the county can use for investments versus loans.
SOURCE: Washington Examiner
"We want to allow the county to do what the state does," said Montgomery's legislative analyst, Sheila Sprague. Sprague said the bill, sponsored by the Montgomery delegation, was drafted at the urging of County Executive Ike Leggett. The Senate unanimously approved the bill, while the measure won approval by a 135-3 vote in the House. Gov. Martin O'Malley is expected to sign the measure. But a Montgomery County senator stopped the ball rolling when the measure went before the Senate Finance committee during the approval process.
"I read this [bill], and I see it as saying county government can own 25 percent of a private business ... and I actually have a problem with that," said Sen. Rob Garagiola, D-Poolesville. "It seems like there could be a lot of conflicts." Finance Committee Chairman Thomas M. Middleton asked Garagiola to return the bill to the Montgomery delegation and add a clawback provision to give taxpayers some financial security. When Garagiola aired his grievances before the delegation, Sens. Brian Frosh, D-Bethesda, and Mike Lenett, D-Aspen Hill, chimed in.
Frosh said the bill seemed "risky," and Lenett suggested, "Why don't we just save the money [instead of investing]." But Sens. Rich Madaleno, D-Wheaton, and Rona Kramer, D-Olney, said the bill was fine as written. Kramer said the money the county would be investing would be spent on grants and loans, and the county should be able to profit off its investments. Montgomery's Department of Economic Development would be in charge of making the county's investment decisions. The department has about $850,000 in county appropriations for business loans, said Director Steve Silverman. But the department can petition the County Council for more money. The bill would unleash the department's funds for investments, and there is no cap limiting the amount of money the county can use for investments versus loans.
SOURCE: Washington Examiner
PLUG: Lt. Gov Brown shows off copier from Capitol Office Solutions
Capitol Office Solutions is a wholly-owned subsidiary of Xerox and an HP partner. It provide small to mid-size firms with local service and works with firms to improve efficiency and productivity by helping them manage there printing. They have a focus on sustainability and helping companies achieve their green missions. Their equipment is on display at Bethesda Green. Capitol Office Solutions has the ability to provide your company with superior technology from the entire family of XEROX products with local technical and administrative support. Their technologies cover scanning solutions, document management, enhancing workflows, reducing waste & increasing office efficiencies. Currently, some of our partners are EFI, Nuance, Equitrac, CREO, eCopy and Xerox Docushare.
Michael Sullivan. Account Executive. Capitol Office Solutions. 9065 Guilford Road. Columbia, Maryland 21046
PICTURE: Congressman George Leventhal and Lt. Governor Anthony Brown in front of the Xerox ColorQube and looking at some literature.
April 12, 2010
Greenbaum announces opening of Title Town Settlements in Rockville
Todd Greenbaum is pleased to announce the opening of Title Town Settlements. Title Town Settlements is "Your Hometown Settlement Team" located in Rockville, MD. The company's mission is to consistently achieve superior customer service by providing constant personal attention, expert workmanship, and unwavering dependability throughout the settlement process. At Title Town Settlements we know you expect us to provide superior work quality, but also covet the personal attention that you deserve. We have the experience and knowledge to ensure the quick and easy settlement you desire and make each transaction a priority so you feel right at home.
Todd has conducted hundreds of closings, handles all aspects of the real estate transaction from start to finish, prepares deeds, mortgages and other documents necessary to the settlement process and teaches Continuing Education to real estate agents. He specializes in residential and commercial purchase and refinance transactions, including short sales and foreclosures. His goal in founding Title Town Settlements was to create a company that focuses on the balance between the high level of customer service that clients expect while being able to establish long-lasting personal relationships. Many title companies focus only on the amount of business they are doing and lose sight of the personal attention clients deserve.
Todd is an Attorney admitted to practice in the State of Maryland and the District of Columbia and is an active member of the Maryland, D.C. and Montgomery County Bar Associations. “
Todd I. Greenbaum. Attorney-At-Law/President
Title Town Settlements, LLC. 721 Fallsgrove Drive #2121. Rockville, MD 20850. T. (301) 580-2850
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