Businesses prepare for new political landscape; Many see state results as positive

BYLINE: Susan Paff

Local business leaders and political analysts have mixed reactions on how the outcome of the recent election will affect the region.

When it comes to Gov. Ed Rendell's victory over former Steelers star Lynn Swann, many say four more years of the Democratic Rendell is mostly a good thing for economic development in Western Pennsylvania.

"From our perspective as real estate developers, Rendell has been very strong on economic development stimulus," said Randy Mineo, a principal of Collier Township-based Praxis Resources LLC. "In that aspect, he's been very good for growth."

Many also say new faces in the General Assembly could be advantageous for small business owners. "Pennsylvania is going to have an attentive and responsive General Assembly in the next year," said Brian Kennedy, director of government affairs for the South Oakland-based Pittsburgh Technology Council.

The large freshman class may also create a two-year window of protection from increases in the personal income tax, under which many small business owners pay their business taxes, Kennedy said.

However, the shift in power on the federal level has created a stir in the local business community as well. Some analysts and business leaders feel it may breed indecisiveness between a Democratic Congress and a Republican White House.

Ray Buehler, president and CEO of the Downtown-based accounting firm Schneider Downs, said he doesn't expect anything positive to move forward at the federal level until the next presidential election.

"I think it's just going to be a quagmire over the next two years," he said. "When it comes to pure taxation, business incentives and state (issues), I really don't see anything getting accomplished."


Four more years

Local leaders are hopeful about the outcome of the gubernatorial race, saying Rendell has been supportive of their efforts in the past, and they expect more of the same with his victory over Republican challenger Swann.

"We are very happy about the entire election," said Jack Piatt, chairman of Cecil Township-based Millcraft Industries Inc., which has received state funding for Piatt Place, its mixed-use office-retail-residential project Downtown. "Gov. Ed Rendell has been very kind to the people of southwestern Pennsylvania, and we are expecting four more years of that."

Frank Kass, chairman of Columbus, Ohio-based Continental Real Estate, agreed: "I think the governor's office has been a supporter of development in Downtown Pittsburgh and the North Shore."


Moving ahead

The power shift in this week's election was no surprise to political analysts and community leaders who say it is a result of discontentment among voters with the current presidential administration, not dissatisfaction with particular incumbents.

"I think what happened in Pennsylvania is pretty reflective of the country," said Michael Edwards, president and CEO of the Pittsburgh Downtown Partnership.

They said Republican U.S. Rep. Melissa Hart's loss to Democratic challenger Jason Altmire in the race for the 4th congressional district was a prime example.

"There's no question this defeat is about the war," said Bob Cranmer, director of the Pittsburgh office of the government affairs consultancy Pugliese Associates. "(Hart) has been a good representative for the district. She's collateral damage."

Yet, Cranmer noted, Altmire is an experienced lobbyist who hopefully will be able to bring money to the region, particularly for transportation and aviation projects that have seen recent funding cuts.


Outlook: Cautious

Still, many in the community are taking a wait-and-see approach, and a number of local executives were feeling so cautious they refused to comment for this story.

When it came to state Treasurer Bob Casey Jr.'s win in the U.S. Senate over Republican incumbent Rick Santorum, it is hard to say how Casey will help businesses because he wasn't specific about many of his plans during the campaign, according to Jerry Shuster, professor of political communications/presidential rhetoric at the University of Pittsburgh.

"A lot of expansion of sewage and water systems and repair of older systems are key to general expansion in Western Pennsylvania communities," he said. "Those things cost money ... (and are) things he will have to work on quickly."

On the other hand, Herky Pollock, an executive vice president with Downtown-based commercial real estate brokerage CB Richard Ellis/Pittsburgh, said he sees power for the region in having Democrats control many local offices, the governorship and Congress: "Any development or business decisions that need to be made, there will be support on a federal, state and local level."

Among those withholding judgment is Brooks Broadhurst, an executive vice president for food and beverage for Homestead-based Eat'n Park Hospitality Group. Broadhurst said some of his biggest concerns were with Ohio ballot initiatives that raised the minimum wage to $6.85 and banned smoking in nearly all public places.

"In our business, there's not lots of critical issues that impact us," Broadhurst said. "But there's lots of little ones that add up to impact us in lots of different ways."