Moribund Montgomery iced out of ICEE HQ decision by Tennessee

Montgomery County has again been on the sidelines as dozens of major corporate headquarters have made relocation decisions in early 2019. Moribund MoCo, now at rock bottom in the D.C. region in virtually every economic development indicator, just got iced out of another one. While our corrupt elected officials were dozing at the switch, high-energy Tennessee Gov. Bill Lee closed a deal for the ICEE headquarters. The beloved frozen beverage firm is moving its California HQ to La Vergne, in Rutherford County Tennessee.

"It's such a business-friendly spot," ICEE President Dan Fachner said of La Vergne, according to the local Daily News Journal. The deal also includes a distribution center, and a requirement to create 207 additional jobs with an average salary of $60,152 within the coming five years. In exchange for a relatively-paltry $690,275 tax break, La Vergne, Rutherford County and Tennessee will get a $10.3 million project, and all of the tax revenue and collateral economic benefits.

Tennessee Gov. Bill Lee (R)

"ICEE's decision to bring its corporate headquarters to La Vergne highlights how Tennessee's low taxes, skilled workforce and quality of life continue to attract world-class businesses, said Bob Rolfe, the commissioner of the state's Department of Economic and Community Development," the Daily News Journal reported.

Once again, transportation infrastructure also played a big role in the decision. While not mentioned in media coverage of the ICEE deal, the City of La Vergne upgraded Mason Road and its utilities near Bain Drive during the year-long ICEE HQ decision process in 2018. And what do you know? That's exactly where ICEE is going to locate its HQ and distribution center.

Contrast that show of infrastructure investment and goodwill by Tennessee to the moronic decision by the Montgomery County Council to cancel the biggest infrastructure project in White Flint on the very day that Amazon executives were touring White Flint for their HQ 2 search. Along with the enablers in our obsequious and apologist local media, it couldn't be more clear why Montgomery has lost every single major corporate headquarters contest over the last two decades.

Google Maps image shows 13-minute trip to
the closest airport from the future ICEE site

The La Vergne site also sits right off of Interstate 24, and along a major rail line. Smyrna Airport is only 13 minutes away from the future ICEE property, and the major Nashville International Airport is only 18 minutes away, according to Google Maps. Meanwhile, Montgomery County officials have actively blocked any attempt to build a new Potomac River crossing that would provide direct access to Dulles International Airport, leaving all major airports a long, congested drive for busy executives - which is one reason those executives always pass over MoCo in location decisions. In fact, Montgomery lost the Discovery HQ to Knoxville, Tennessee, where Discovery chose a site with similar direct airport and interstate access.

The brain freeze of an ICEE isn't nearly
as cold as the one you'll get from the latest
Montgomery County Council tax increase
this year

While Montgomery County's corrupt, developer-controlled Council and Planning Board were busy converting MoCo's office parks to residential housing for their developer sugar daddies, Tennessee state and local officials were readying theirs for household-name tenants and success. While states like Tennessee and Virginia add highway capacity (and high-wage jobs and corporations follow), Montgomery County politicians in Rockville and Annapolis are aggressively fighting Gov. Larry Hogan's Express Lanes plan for the Beltway and I-270.

An ICEE chill settles over Montgomery County,
now the moribund bedroom community for booming
job centers elsewhere in the D.C. region

“With our top-rated school district, affordable cost of living and strong local economy, companies like The ICEE Company are choosing to relocate and put down roots in our community,” Rutherford County Mayor Bill Ketron said in a statement. Contrast that with Montgomery County's rapidly-declining public schools, high cost of living and record-high taxes, and moribund local economy. It's not a winning formula, to say the least.

The clock runs out on the
Montgomery County cartel

The ICEE victory again shows how attracting one major employer has a multiplier effect. Attracting Nissan to that same part of Tennessee decades ago fueled explosive economic growth in the area. Having traveled to Nashville many, many times as a professional musician, I've been surprised at how many people I've encountered there over the years are employed by Nissan or Nissan-related businesses. Some of them live in wonderful, new suburban neighborhoods developed as a result of the Nissan facilities. 520 new Nissan-related auto parts manufacturing jobs have been added in Smyrna in the last year alone, the Daily News Journal reported. Nashville also recently became home to the parent company of Hardee's and Carl's Jr,. another corporate HQ that MoCo didn't even compete for.

We won't attract that first breakthrough corporate headquarters with the super-low-energy, Berzerkley-inspired, anti-business "new" County Council that took office just over three months ago. They haven't acted on a single one of the major crises Montgomery County faces in the many weeks since. Their press release output in recent weeks features no Bill Lee-style announcements of new high-wage jobs, but instead highlights an "Islamophobia" resolution, an outdoor patio smoking ban, and a "Racial Equity and Social Justice Policy."

Res ipsa loquitur, indeed.

Yext Rosslyn announcement pounds final nail into MoCo's tech job coffin

Northern VA declared

"next Silicon Valley"

after tech firm follows

Amazon's 25000 jobs

into the Old Dominion

There's nothing new about Northern Virginia destroying Montgomery County when it comes to economic development, nor about tech firms choosing the "birthplace of presidents" and D.C. over moribund, high-tax-and-regulation MoCo. But Montgomery's sad role as pinata in our regional rivalry just got weaker than ever last week, when New York-based tech firm Yext announced it would open a new office in Rosslyn with 500 high-wage jobs. On the heels of Virginia's victory in the nation's biggest job sweepstakes - Amazon's HQ2 that will open in Crystal City - the Yext move now has national power brokers officially declaring Northern Virginia the "next Silicon Valley."

Rosslyn's latest big "get" follows other new arrivals to Arlington's business hub with monumental views like the world headquarters of Nestle, Corporate Executive Board, Gerber and Deloitte. Not to mention all the other HQs NoVa has nabbed in recent years, including Hilton Hotels, IntelSat, Volkswagen and Northrop. Yext has leased the top three floors of 1101 Wilson Boulevard, a Class A tower with breathtaking views of the Potomac River and Capitol dome, among other landmarks, according to the Washington Post. Most embarrassing of all, the Yext deal wasn't even a deal - Virginia is paying them no tax incentives, Yext founder Howard Lerman tells the Post. Meanwhile, Montgomery County hasn't attracted a major corporate headquarters in two decades.

Capital One tower in Tysons,
the tallest office building in
the D.C. region

Montgomery has a national reputation as being hostile to business, a high-cost location to do business from, and having an ideological aversion to completing its master plan highway system - or adding Express Lanes to jammed interstates (unlike Virginia). How bad is it? Bethesda-based Donohoe Companies' CEO Chris Bruch had to chastise Montgomery politicians, who are furiously trying to block Gov. Larry Hogan's Express Lanes proposal for I-270 and the Beltway, in a letter published by the Post last weekend.

In other counties and cities, local officials are usually allied with business leaders like Bruch to complete major infrastructure projects. Here? Welcome to Clowntown, U.S.A.!

But our horrible reputation has compounded many past defeats with a major one. All major local jurisdictions have been competing for some time to be seen as a national tech hub. The Amazon and Yext victories have now led to that contest ending with the official recognition that Northern Virginia has won: game, set, match: Virginia.

"Northern Virginia's status as an East Coast tech hub got a major lift last week," wrote the Post's Aaron Gregg of the Yext announcement. "Northern Virginia is a reservoir of untapped talent," Lerman told Gregg. "I think it's the quiet next Silicon Valley." Gregg notes that the hits taken by Pentagon contractors in the Obama-era knucklehead budget battles on Capitol Hill led Virginia officials to turn to the private sector. "They have succeeded with a string of influential corporations setting up offices and headquarters in places such as Rosslyn and Tysons."

How much did we lose when the Montgomery County Council fumbled the Amazon golden ticket last year? 25,000 new jobs, $4 billion in lost wages, and $12 billion in collateral economic growth that Amazon would have provided. None of that even includes the tax revenue that would have accrued to Montgomery and Maryland.

Although it's unclear if our corrupt elected officials are capable of being embarrassed, particularly when they are being coddled and protected by an obsequious local press and surrounded by "Yes Men," we now know that Amazon was watching and listening to their public statements and actions very closely last year. Anti-Amazon and anti-business sentiments made by councilmembers last year were topped off by the capstone of the Council canceling the biggest infrastructure project near our proposed Amazon site in White Flint - while the Amazon executives were touring White Flint. It doesn't get any dumber than that, folks.

"For Amazon, the commitment to build a new headquarters requires positive, collaborative relationships with state and local elected officials who will be supportive over the long-term," Amazon said in its official statement announcing they were withdrawing their New York proposal. Yes, the comments and behavior of our "local elected officials" were indeed given heavy weight by Amazon. Anti-business sentiments and a bizarre, radical opposition to needed new roads were clearly not the winning message.

“A small group of politicians put their own narrow political interests above their community," New York Governor Andrew Cuomo said after Amazon's pull-out there, but he could have been talking about the Montgomery County Council, too. Nobody knows Montgomery's reputation for being hostile to business better than Yext founder Lerman, who grew up in Vienna. That irony echoes the Amazon decision as well, where one of the key decision makers for Amazon in the HQ2 search was Holly Sullivan, former President of the Montgomery County Economic Development Corporation. Sullivan knew our elected officials very well, and was very familiar with our business climate and failing infrastructure and traffic congestion. After all, she had to drive around it herself for several years! She knew exactly what Amazon would get by selecting Montgomery County, and...egads!!! Yikes!

Fortunately for New York City, at the end of the day, they're still New York City and an economic powerhouse even without Amazon. At the end of the day, Montgomery County is still...moribund.

MoCo fumbles three more: Blackboard, HalioDX, Idemia headed to Virginia

Montgomery County officials have blown it yet again. Just three months after failing to bring 25,000 Amazon jobs to our moribund County, they fumbled the ball on three more corporate headquarters sweepstakes. Blackboard, a high-profile education technology firm, will relocate its Washington, D.C. global headquarters to Plaza America in Reston. Biotech firm HalioDX chose Richmond over North Carolina, in its final North American headquarters decision. And Paris-based Idemia, a biometric augmented identity firm, is relocating its North American headquarters from Boston to Reston, as well.

The moves will bring hundreds of additional high-wage jobs to Fairfax County, and Idemia has promised to add 90 new high-wage jobs to the new HQ. Why did both firms choose Reston over Montgomery County? The answers are the same as usual: lower business costs, and superior infrastructure access in Virginia.

Blackboard CEO and President Bill Ballhaus cited their new location's proximity to Dulles International Airport, which as I've been noting for years, has the variety and frequency of international flights and destinations international businesspeople require. Unlike Northern Virginia, which has implemented several infrastructure projects to speed travel, Montgomery County has refused to build the new Potomac River crossing that would provide direct and quick access to Dulles Airport. In fact, the Montgomery County Council is actively trying to further sabotage our outdated and incomplete transportation system, refusing to build the M-83 Highway and Montrose Parkway East, and promising to lower speed limits on all major commuter routes to 25 MPH - and secondary and neighborhood roads to 15 MPH.

The failure to attract Idemia's HQ was a humiliating defeat for a County Council that has claimed it would make Montgomery County a cybersecurity hub. Instead, Virginia's Secretary of Commerce Brian Ball was the one crowing about the Old Dominion bolstering its dominance in that field with the addition of Idemia. "We rely on innovative companies like Idemia to maintain Virginia’s position as a U.S. leader in this industry,” Ball said in a statement.

HalioDX will join almost 70 biotech firms, laboratories and manufacturing facilities at the VA Bio+Tech Park in Richmond. It's a sad reminder that Virginia is now not only handing our County Council their [briefcases] in every other economic sector, but are rapidly reaching parity with Montgomery's biotech sector. Thanks to past County leaders who served before our elected offices were seized by the Montgomery County cartel in 2002, we had a promising biotech niche in the region. Now, it's only a matter of time before even those firms begin to relocate to Virginia, once they have the critical mass of qualified workers and government incentives.

The canary in the Montgomery County economic development coal mine has been deceased for some time. Our Council not only doesn't know anything about how to attract high-wage jobs and corporate headquarters, but couldn't act even if they did. Their developer sugar daddies, who fund the campaigns of every Council member, don't want corporate headquarters taking up valuable land they could use to profit from luxury apartments.

Virginia Gov. Ralph Northam hasn't had much reason to smile in recent weeks, and I reckon he appreciates Montgomery County turning his frown upside down reliably several times a month. His two immediate predecessors were legendary for openly mocking Montgomery County officials for their pro-tax, anti-business ideology. By all indications, comedy hour is just getting started at 100 Maryland Avenue.

Mass layoffs announced at Rockville company

Centerra Group, LLC, a government safety and security contractor located at 11555 Rockville Pike, has informed the state of Maryland it will conduct mass layoffs of its employees March 31, 2019. The firm filed a WARN notice with the state regarding the layoffs yesterday.

Eighty-seven employees are slated to lose their jobs, according to the notice filing. This is another blow to the anemic job activity in the White Flint area, which was capped off by the humiliating loss in the Amazon HQ2 sweepstakes. Montgomery County's economy grows more moribund with each passing hour, yet our County Council hasn't taken a single action to address the economic development crisis in the first two months of its term. Heckuva job, Brownie!

Montgomery County shut-out of contest for UK firm's first US factory

Virginia Gov. Ralph Northam announces
another win over Montgomery County

Score another one for Virginia, as Montgomery County continues to sit out the regional economic development competition. British firm Harlow Group Ltd. has chosen Danville, Virginia for the site of its first U.S. precision sheet metal manufacturing plant. Virginia Gov. Ralph Northam announced the win Thursday. Alabama was the other Harlow suitor; Montgomery County did not even try to woo the firm.

Virginia will spend only $147,000 in financial incentives, while Harlow will invest $8 million in the state building the facility in Danville's burgeoning Cyber Park. Meanwhile, Montgomery County leaders are turning office parks ripe for aerospace, defense and tech campuses into bedroom community townhome developments instead. No wonder Montgomery has a $208 million budget shortfall this year.

"Virginia has once again attracted a leading international manufacturer, and we are thrilled to welcome Harlow Group to this region’s impressive corporate roster,” Northam said yesterday. Harlow Group CEO and Founder Alan Pearce praised Virginia's pro-business climate. “Virginians have been amongst the most welcoming and friendly people and their appetite to make things work and overcome obstacles is second to none," Pearce said. "The ambition of Virginia to embrace new technology and invest in the future will keep the Commonwealth as the number one destination for expansion and business investment, and we are extremely proud to be associated with Danville and the Commonwealth of Virginia.”

Montgomery County has failed to attract a single major corporate headquarters in two decades, and just lost one of its few high-tech manufacturing facilities to Frederick. It hasn't pursued lucrative aerospace firms in any serious way in the same amount of time.

Tired of losing to Virginia?
CLICK HERE for the only
County Council At-Large candidate
with a detailed plan to make
Montgomery County a major
economic development player in 
the region again:
Robert Dyer

Meanwhile, Danville's Cyber Park is becoming the latest aerospace hub in Virginia. “The community’s vision of becoming a hub of automotive and aerospace suppliers is now reality," said Robert Warren, Chairman of the Danville-Pittsylvania Regional Industrial Facility Authority (Montgomery doesn't even have such an authority). Danville Mayor Alonzo Jones was equally celebratory Thursday. "We believed we would create a magnet to draw aerospace and automotive metal working companies from around the world," Jones said. "Our students and residents could be employed in jobs here in our home community that would be highly paid. It is so rewarding to see this vision becoming a reality.”

Another humiliating defeat for Montgomery County. Another reason to throw the bums out on Election Day. You'll notice the four developer-funded Democrats running for Montgomery County Council At-Large have no specific economic development plan on their campaign websites; just generalities and mindless pablum. That's because they don't understand how business works in the year 2018, and because their developer sugar daddies want all the potential land that could hold corporate HQs, and related research and manufacturing facilities to instead be developed as residential housing.

The only way to break this cycle of failure and corruption is to vote for Robert Dyer on Tuesday, November 6.

Moribund MoCo economy continues to tank in 2018

New regional statistics indicate Montgomery County's moribund economy is continuing its steep decline, even as boom times continue across the river in Northern Virginia. The Stephen S. Fuller Institute at George Mason University noted in its June summary of area economic indicators that in 2018, the suburban Maryland jurisdictions of the D.C. area have only accounted for 5% of regional job growth. In contrast, Northern Virginia has accounted for a whopping 78% of job growth in our region so far this year, a devastating comparison.

Virginia currently enjoys a 3.2% unemployment rate, compared to 4.3% in Maryland. According to Aaron Gregg of the Washington Post, job growth in suburban Maryland counties has "softened" further. He quotes Fuller as noting Montgomery County doesn't have the private sector federal contractors that could benefit from the Trump administration's massive boost in defense spending.

Only one candidate can get Montgomery County's
moribund economy moving again.
CHANGE YOUR VOTE - CHANGE THE COUNTY

Andy Bauer, a regional economist with the Richmond Federal Reserve, reports to the Post that "we're not seeing much job growth at all" in the suburban Maryland counties. "Northern Virginia just hasn't seen the weakness we've seen on the Maryland side."

Montgomery County has notoriously failed to attract defense and aerospace contractors - and any major corporate headquarters at all - over the last two decades. And the County Council has made aggressive moves in recent years to urge existing aerospace firm Lockheed Martin to leave the County, moves that even earned them a rebuke from their Democratic peers at the state level. "We don't need the Lockheed headquarters," Councilmember Nancy Floreen infamously told residents at the Aspen Hill Library in 2010. The Council removed a second Potomac River crossing to the Dulles area - an essential piece of infrastructure to compete with Northern Virginia for government contractors and international business firms - from the County's master plan. And it failed to win the Northrop headquarters, which ended up in - where else? - Northern Virginia.

In the Fuller Institute's June report, the authors wistfully recall the greater regional balance of decades past, when Montgomery County used to be a major player in the region, and Northern Virginia usually only accounted for 50% of regional job growth - not today's whopping 80%. To underline the stakes in the regional competition for the supposed 50,000 jobs of Amazon's HQ2, that job number is only 1500 less than the number of jobs created in the whole region between June 2017 and June 2018.

Montgomery County Council lead economic
advisor Vladimir Lenin

Unmentioned in either report are the County Council's record 2016 property tax and recordation tax hikes, 2010 energy tax hike, $15 minimum wage, and a barrage of other anti-business taxes, fees, restrictions and regulations passed since 2010 alone. While Virginia builds mile after mile of Express Lanes and steals our jobs, our Council is fighting Gov. Larry Hogan's Express Lanes plan for I-270 and the Beltway at every turn. The Council's economic development trips abroad have been only to Communist and socialist nations including China, Cuba, and El Salvador under the rule of President Salvador Sanchez Ceren, who was a commander in the Communist FMLN during the country's civil war. The County even boasted that it had brought in Communist Chinese officials as advisors on the Council's $10 billion Bus Rapid Transit boondoggle.

With fellow travelers like these, is it any wonder Montgomery County's economy is circling the drain?

Trump administration declares Rockville Pike an opportunity zone

President Donald Trump speaks with a
business owner during a press briefing on
the Opportunity Zones initiative

The Trump administration has declared downtown Wheaton, two parts of downtown Silver Spring, parts of Long Branch and White Oak, four parts of Gaithersburg - including Montgomery Village, Montgomery College's Germantown campus, and Rockville Pike (between Rockville Town Center and Twinbrook) as Opportunity Zones. Created under the 2017 Tax Cuts and Jobs Act signed into law by President Donald Trump, the zones encourage capital investment in underserved communities through federal tax incentives. The designation comes as media and business leaders express increasingly agree that Montgomery County's economy has become moribund.

Wheaton opportunity zone

Montgomery County Executive Ike Leggett said the County will launch an outreach program to notify investors of the new investment opportunities. "Creating the incentive to bring capital into communities that are currently being overlooked is just a tremendous opportunity," Ivanka Trump said at a press conference on the initiative. "And the fact that this was integrated into the tax bill, which is already proving to be so beneficial for people all over this country, is just another element as we start to rebuild those distressed communities." The tax act reduced taxes for 72% of Maryland residents.

Opportunity zones in Montgomery Village
and Gaithersburg

Rockville Pike opportunity zone

Opportunity zones in downtown Silver Spring,
Long Branch and New Hampshire Estates areas

White Oak has two of the
Trump opportunity zones

Photo courtesy WhiteHouse.gov

Helpless Hans Riemer out of his depth on MoCo's moribund economy

Montgomery County Council President Helpless Hans Riemer appeared lost in his laughably-disastrous attempts to dismiss growing media reports of the county's tanking economy. Confronted with data from the United States government showing Montgomery at rock bottom in growth of new businesses in the region, and suffering from a stagnant economy, Riemer rambled incoherently for 30 minutes before reporters Monday - while frequently consulting cue cards on the table prepared by his staff. If you play a drinking game taking a shot each time Riemer looks down at his cue cards, you'll be knocked out a few minutes into the press conference.

Many are still trying to translate Riemer's stream-of-consciousness remarks Monday. At one point, Riemer responded to a reporter who challenged him to cite a specific error in the Sage Policy Group report with this whopper: "If you combine four or five points, seem (sic) to create a version of reality that is really a very distorted version of reality. So that's, that's fundamentally, you know, whether one data point from one year to another year might have shown what that report showed isn't really the point."

Huh?

That wasn't even grammatically correct or logically coherent, much less an answer to the reporter's demand for specifics.

Ignore the official government data, Riemer advised reporters, suggesting that his own anecdotal thoughts somehow trump numbers from the U.S. Bureau of Labor Statistics (BLS). He then threw out a number of ridiculously absurd excuses for Montgomery's woes, even while claiming there are no woes.

Riemer pointed to the federal budget sequestration impact. That made no sense, because sequestration had a far greater impact on Northern Virginia in recent years, as counties like Fairfax are home to many more defense contractors than Montgomery County. Yet Fairfax County enjoyed a net gain of 3000 new businesses this decade - which included the sequestration years. How many did Montgomery County gain over the same period? Six. SIX! Humiliating, but certainly not the fault of sequestration, as the Fairfax boom proves.

The Council President also argued the Great Recession was to blame, and that Montgomery County was enjoying "better outcomes" than other jurisdictions in the region. Again, totally false. Despite the recession "slowing down" the regional economy, all the other jurisdictions around us outperformed Montgomery County. In fact, Montgomery County was whipped across the board in economic development and job creation by not only Fairfax, Loudoun and other wealthy D.C.-area counties, but even by upstart whippersnappers like Culpeper, Spotsylvania and Rappahannock Counties.

Riemer really went off the deep end by touting Montgomery County's low unemployment rate and high incomes. Neither statistic actually has anything to do with the strength of Montgomery County's economy. They simply mean that Montgomery County residents are employed in high-wage jobs outside of our county, in places like D.C. and Fairfax County. Low unemployment in no way reflects the number of jobs in a jurisdiction, only the employment status of its residents. Yet Riemer said the low number of new businesses created this decade in Montgomery couldn't possibly be true, because of our low unemployment rate. Huh? The two statistics have nothing to do with each other.

One has to worry that someone with as poor of a grasp of basic economic concepts and data as Helpless Hans Riemer is currently in charge of directing the county's economic future. If someone actually believes that the unemployment rate reflects the number of jobs created within Montgomery County, they are clueless about economic development. God help us!

Most entertaining were the many times Riemer couldn't find an answer to a reporter's question on the cue cards in front of him. After searching his flash cards frantically for an answer to exactly why Sage's new business number was somehow wrong, Helpless Hans looked, well, helplessly around the room. "I think I'm going to have to refer you to Council staff for the exact details about why this new business starts [sigh] conversation is just out in left field."

Wait, the Council President doesn't know the numbers? And he's in charge of the next budget, and getting paid $137,000 for this job? Wow. Humiliating. If he doesn't know the numbers, why is he challenging the report?

Riemer then suggested the new business starts number doesn't correspond with other data from BLS.

"Okay, so what does BLS say?" a reporter pressed.

Riemer looked helplessly around the room again. "I don't know if Council staff is here," he stammered. "You'll have to, I'll have to, to get you together with Gene, um, after today."

LOL.

Andrew Metcalf of Bethesda Magazine asked Riemer regarding the County's Economic Development Corporation, "Can you think of any major accomplishments or achievements they have? What exactly has MCEDC done in the last two years?"

Riemer consulted his cue cards again to no avail. "Okay, so, what are the successes of the Economic Development Corporation? Um, [grimaces] I might need a little staff here. Uh, you know, uh, yeah, my economic development team is not here."

Asked when Montgomery County opened dialogue with Discovery Communications after it was known they were considering relocating from Silver Spring, Riemer replied, "I don't have that information." In other words, there was no dialogue.

As they say, the first step is admitting you have a problem. Riemer is clearly not yet prepared to take that step. And as a result, Montgomery County's moribund economy cannot move forward until he is replaced.

ELECT ROBERT DYER

Moribund MoCo has lowest new-business growth rate in region

You know a jurisdiction's business climate is at rock bottom, when one of its biggest critics is the former chief-of-staff of that jurisdiction's sitting County Council President. Thus, some of the best analysis of the moribund Montgomery County economy has come from Council President Helpless Hans Riemer's former chief-of-staff Adam Pagnucco on the Seventh State blog. Pagnucco has done it again, producing another set of mindblowing stats on the walking-dead MoCo economy.

In a recent post, Pagnucco showed that, according to the U.S. Bureau of Labor Statistics, Montgomery County has the lowest rate of growth of new business establishments in the region since 2000. Only the tiny City of Falls Church has fared worse, and think of how small they are in relation to Montgomery County (they have only 15,000 residents vs. our 1.4 million).

Who was ahead of Montgomery County in new establishment growth? [If you are a Montgomery County elected official, consider this a trigger warning, and an opportune time to slip a paper bag over your head before your constituents read the following list] Loudoun County with 134% growth of new businesses established, Spotsylvania County 86%, Prince William County 82%, Stafford County 79%, Culpeper County 58%, Arlington County 42%, Fauquier County 42%, Warren County 37%, District of Columbia 37%, Rappahannock County 32%, the D.C. region as a whole 32%, Frederick County 31%, Fairfax City 30%, Fairfax County 30%, Manassas City 28%, Manassas Park City 27%, Jefferson WV 23%, Calvert County 22%, Alexandria 20%, Clarke 19%, Charles County 16%, City of Fredericksburg 12%, Prince George's County 12%.

Montgomery County, by contrast, had a paltry 10% growth rate in new establishments.

Good God. Humiliating!

The Montgomery County Council again has their [briefcases] handed to them by...Culpeper County???? LOL. Fredneck??? LOL. Jefferson bleeping West Virginia? Bleep, yes.

We already knew that Montgomery County has failed to attract a single major corporate headquarters in two decades. And that the Maryland Retailers Association reported a net loss of over 2100 retail jobs in Montgomery since 2000. But Pagnucco has found even more staggering statistics to add to the Montgomery Moribundity.

Just looking at the post-recession years alone, 2011-2016, the District of Columbia and Fairfax County enjoyed a net gain of 3000 new establishments each. Over those same years, Montgomery County had a net gain of...6. That's a single digit folks. Six.

And how about this: Pagnucco discovered only 19 new business filings in Montgomery County were recorded with the State of Maryland in FY-2016. Nineteen. 

Again, a total humiliation.

Who beat us that year within our own state? Worcester County was at the top, with 138 new business filings. Somebody call Rodney the Lifeguard to save our drowning County Council!

Pagnucco notes that 2011 was the first fiscal year completely impacted by the County Council's massive 2010 energy tax hike. He ends one of his reports with perhaps the most pertinent question in this election year:

"Which candidates for office do you think can help turn this around?"

Myself, for one. Visit my website to see why I am the best choice for the Montgomery County Council At-Large to turn around Montgomery County's utterly moribund economy.

MoCo drops ball again, loses out on Fannie Mae, Wilcoxon jobs

Montgomery County took it on the chin again Wednesday, as our elected officials continue to fumble the ball on economic development. High-tech manufacturer Wilcoxon announced it is moving its Germantown facility - and its 100 jobs - to Frederick. In a statement, Wilcoxon President Dr. Christopher McLean cited Frederick and Frederick County's "manufacturing-friendly taxes and [the] simplified permitting process that exists in both jurisdictions" as major factors in the move.

McLean also noted the quick access to three major highways, key to a manufacturer, and that "8435 Progress Drive provides a lower cost of ownership than our previous [Montgomery County] facility, and we can remain close to Washington, D.C. and three major airports." "Whenever you can attract 100 tech jobs, especially filling 45,000 square feet of space, it’s a great opportunity for the city," Frederick's Director of Economic Development Richard Griffin said, according to the Frederick News Post.

This was yet another clear example of our draconian taxes, red tape regulations and poor business climate costing us jobs and tax revenue.

But it got worse: Fannie Mae announced it has leased a whopping 850000 SF at Boston Properties' Reston Gateway, and will be the anchor tenant there. Tons of jobs will move into the site in 2022, Boston Properties said in a press release, bringing more revenue and business foot traffic for Virginia.

How did this happen? We have a County Council clueless about how the world of international business works in 2018. They are ideologically-opposed to making the common sense changes in taxes and regulations, and building the necessary transportation infrastructure, needed to make Montgomery County competitive in the region again.

Look no further than the Council's brainless decision to loudly broadcast they intend to cancel funding for the Montrose Parkway East. The Council, at least in public, claims they want Amazon to choose the Pike District for its HQ 2.

What better way to impress a logistics company like Amazon, than to announce you are canceling the main infrastructure project near their potential headquarters, right?

It's amateur hour at 100 Maryland Avenue again, folks!

Discovery move is all about why Knoxville beats MoCo in business climate

Discovery Communications is moving from Silver Spring to New York City because it is a content company? Not quite. Unless you believe they film their Shark Week programs in giant water tanks on the seventh floor of their Silver Spring headquarters - as many embarrassed Montgomery County elected officials apparently do. Put aside the spin in Discovery's press release, and carefully study their public statements to media yesterday, and you'll find the real story here is A) why Knoxville has a better business climate than Montgomery County, and B) the big Discovery "move" may actually be a big layoff of extraneous workers, as the company merges with Scripps.

The County's spin, of course, is that there "was nothing Montgomery County could do to retain Discovery." Discovery is a content company! They need to be near other content and advertising companies in New York! Aren't taxes terrible in New York City? Isn't the cost of living even higher in New York City?

Ah - but there's the key point. Discovery's move isn't about New York in the end. Analyze Discovery's public statements, and you find there's no certainty as to how many jobs are going to New York City. Some key high-level positions had already been moved to Discovery's current New York base of operations. Some positions at Scripps in Knoxville will also be moved to New York in 2019.

Scripps already has over 1000 employees in Knoxville doing a lot of the business and administrative jobs that many Discovery employees are doing now in Silver Spring. Again, read Discovery's statements carefully - they don't mention x-number of jobs moving from Silver Spring to Knoxville (or to New York). It could be that Montgomery County not only suffers the shame of losing one of its few Fortune 500 companies, but almost certainly also winds up with hundreds of unemployed Discovery workers as a result. Knoxville will gain all of the jobs Discovery needs from Silver Spring, but not likely all 1300.

Knoxville has everything Montgomery County's elected officials keep telling us we don't need - lower taxes, suburban living, and highway infrastructure. Discovery's press release noted "infrastructure" as a key reason they chose Knoxville. It's very easy to see why:

Discovery's new HQ in
Knoxville is right at an
interchange with I-40

The new Discovery campus in Knoxville is right on Interstate 40, a major cross-country route from California to North Carolina. In fact, they've got an on-ramp right next to them.

Discovery's new Knoxville HQ
is only 18 minutes by car from
the airport

Discovery's future Knoxville campus is also only 18 minutes by car from McGhee-Tyson Airport. Try getting to an airport in 18 minutes from Montgomery County (Hint: You can't).

Tennessee has no income tax. Property taxes are about half of what they are in Montgomery County, even on a million-dollar home. The Volunteer State's sales tax rate is 7%. There is no estate tax, and after a recent change in Tennessee's tax law, the "Hall Tax" on interest and dividend income is being phased out by 2021. The latter change is simply the capstone on why Tennessee's tax structure is so business (and worker) friendly. Robin Ficker was absolutely correct yesterday when he cited taxes as a factor in the Discovery move.

When you consider that neither Discovery, nor New York Gov. Andrew Cuomo, cited any specific number of jobs moving to New York yesterday, the picture becomes more clear. Some key positions may well move to New York, and Cuomo and Mayor Bill Blasio can celebrate winning the "global headquarters."

But Discovery is the real winner here. By moving the real nuts-and-bolts of their company to Knoxville, they and their employees (however many actually get moved) will both save bigly on their annual tax bills. Significant layoffs that would have been bad publicity for the company in Silver Spring now get hidden and deodorized by a "big move" and merger.

Montgomery County, as usual, is the real loser. Not only has no major corporation relocated its headquarters here in twenty years, but now we've lost one of the few Fortune 500 companies we had.  We've lost the taxes Discovery and many of their employees paid.

This is a major financial blow to Silver Spring, as well. Residential buildings continue to replace workplaces in downtown Silver Spring at a rapid pace. There are now fewer workers eating lunch at restaurants as a result. Residents of new apartment buildings in Silver Spring are dining out for lunch in downtown Washington, Tysons, and other growing job centers in Northern Virginia. Turning the Discovery HQ into an apartment building won't help matters.

Discovery's new low-rise,
suburban office park campus
in Knoxville (Google Maps)

If you look at the new Discovery national headquarters campus in Knoxville, it's just that - a suburban office park campus. Nearby are roads and commercial strips that look like Rockville or Gaithersburg. Much like Apple, Google and other successful corporations, Discovery has traded urban for suburban.

It looks more like Rock Spring
than downtown Bethesda -
adjacent water bodies included

Just beyond either side of the suburban commercial area where Discovery will be are single-family home neighborhoods along tree-lined streets. Sure, certain companies are willing to take a financial hit to be "downtown" on a transit station. Discovery obviously isn't one of them, and neither is Apple or Google. Montgomery County's office parks aren't the problem - it's our anti-business County Council, taxes and gridlocked transportation system that are the problems.

Single-family homes on
tree-lined streets near the
new Discovery HQ in
Knoxville (Google Maps)

Montgomery County can lower its taxes. After throwing record amounts of money at Montgomery County Public Schools in recent years, and the results only getting worse by the year, we know spending money is not the solution to the decline in our public schools. Wasteful spending was epitomized last year by the Council spending over $20000 on a security camera system I was able to find for less than $1000 online - including installation. Imagine how many other un-itemized expenditures like this one there are in the operating and capital budgets, and the potential for cuts becomes crystal clear.

Attempts to blame Gov. Larry Hogan for the Discovery debacle only open the door to blaming our County Council for the loss. "The first County Council to lose a Fortune 500" certainly has a nice ring to it. When apologists say, "We were going to lose Discovery no matter what the incentive package was," they are actually correct. Without a business-friendly tax system, without a new Potomac River crossing to provide an 18-minute trip to the airport, without a functioning and complete master plan highway system, and without elected officials who understand international business in the 21st century, Montgomery County is always going to be the loser.