As a cash-starved Penn's Northeast looks for new sources of revenue, the organization and the region have a chance to remake themselves, said incoming chairman John Cognetti.
The economic development marketing group is still licking its wounds from three years of a sour economy and significant funding losses, but Mr. Cognetti, president of Scranton-based Hinerfeld Commercial Real Estate, struck an optimistic note at the group's annual meeting Tuesday in Brennan Hall at the University of Scranton.
"We are in a difficult time, but an exciting time," he said. "We have the opportunity to become something greater. This is our time to get it right."
He pointed to the addition of the third set of locks on the Panama Canal, which promises to remake logistics and perhaps grow that sector in eastern Pennsylvania. To the west, he pointed to the large reserves of natural gas in the Marcellus Shale and speculated on how that could lead to new industries.
Founded 10 years ago as a one-stop shop for companies looking for location, Penn's Northeast markets the region on behalf of economic development groups in Lackawanna, Luzerne, Monroe and Wayne counties. It also brings together economic development groups that had long been rivals to work collectively on attracting outside investment to the region.
Financial problems strained that relationship. Funded by a per capita levy paid by economic development groups and by government grants and donations, the first half of Penn's Northeast's life went well. With the economic downturn, grants dried up. Some economic development partners, themselves struggling, couldn't pay the per capita levy. In its most recent budget year, Penn's Northeast had about half the funding it had in 2003-2004. The group reduced its per capita from 37 cents per person to 21 cents and is focusing on private sector contributions to continue its work.
"Our model is still relevant and we are re-inventing ourselves," said outgoing chairman Chuck Leonard, of the Monroe County Industrial Development Authority. "The first step it to get more private sector involvement."
Three at-large board members were nominated to serve a three-year terms on the Penn's Northeast board: William E. Sordoni, President Sordoni Construction Services; Scott Lynett, CEO of Times-Shamrock Communications and Publisher of The Times-Tribune and Brian Grove, Senior Director of Corporate Development for Chesapeake Energy Corp.
Contact the writer: dfalchek@timesshamrock.com