Departure raises agency concerns
Officials back business-friendly approach
With the news that Pradeep Ganguly will not return from a paid leave of absence and that the search for a new director of the Montgomery County Department of Economic Development has begun, many business leaders and county officials say the county needs to be more business-friendly and jump-start its efforts to retain and attract new businesses.
"We need somebody who doesn't have a steep learning curve, who has met objectives in economic development before," said County Councilman Michael J. Knapp (D-Dist. 2) of Germantown. "We don't need somebody to take six months to come up with a grand strategy. We need to be able to have someone come in and do the job right away."
Jack Garson, founder and principal of Bethesda law firm Garson Claxton, said, "There are a lot of well-intended people in Montgomery County. But sometimes doing business here feels like you're in old Russia — where you need to get in one line to get your ticket stamped so you can buy something in another line. It can be a frustrating experience. Some businesspeople throw up their hands and walk away. Some go to Virginia or elsewhere, where there is a perception that government is more pro-business.
"So in replacing Pradeep, I would pick someone local that knows how to work with all of the various players and get results," Garson said. "An outsider is just going to spend a lot of time and energy acclimating him or herself. Instead, pick a savvy local who supports business but knows how to work with government."
Charles Atwell of Innovative Business Interiors, a former Montgomery County Chamber of Commerce chairman, said, "We can't afford to be in limbo. In these challenging times we need an active strategy to attract and retain businesses, period. Stability is very important."
Former county councilman Steven A. Silverman, now with the state Attorney General's Office, said Ganguly's replacement should be someone who shares the county executive's commitment to stabilizing the job market and to expanding opportunities.
"The vision the executive and the council have had for several years is an effort to expand biotech, minority business and the small-business community," Silverman said. "And that's probably the vision the new person would need to have as well."
Fighting the competition
One of the questions for the county, as the search for Ganguly's replacement starts, appears to be how much emphasis should be placed on attracting companies to the county, and how much should be put on retaining companies, with competing budget issues dominating all facets of government operations around the state and elsewhere.
Georgette "Gigi" Godwin, president of the Montgomery County Chamber of Commerce, said it's a priority, especially now, to focus on attracting companies.
With a budget deficit of more than $520 million, the county "should have a razor sharp focus on growing the tax base through aggressive and strategic residential job growth in high quality jobs," Godwin said in an e-mail.
"Regional competition is fierce for top quality employers," she said. "If we want to grow a sustainable tax base, we need to be the home of top flight employers as well as their tax-paying employees. Our competition is Northern Virginia and D.C. Growing our own is a good, long term objective. But it should be coupled with aggressive recruiting and retention of existing companies."
One company that business leaders want to see remain in the county is Choice Hotels of Silver Spring. Kristina Ellis, spokeswoman for the economic development agency, confirmed that her department is aware Choice is looking for new space.
"I believe they've been looking off and on for a while now," Ellis said.
Godwin said of Choice: "As one of our members with a long history in Montgomery County and Maryland, it would be a major setback to lose not only a valued employer, but also a source of opportunity for so many smaller companies and service providers who rely on Choice Hotels as a customer."
In an example of the ongoing business issues and expenses the county faces, the council next week will consider endorsing two state loans for defense and systems giant Lockheed Martin of Bethesda and biotech OpGen of Gaithersburg. The county has already approved loans of $40,000 for Lockheed Martin, to go along with a proposed $400,000 loan from the state, for building and renovation expenses at its Rockville offices. The county has also approved a $20,000 loan, to go with $200,000 to be lent by the state, for OpGen's expansion.
Overall strategy
Many reiterate more could be done to enhance the county's overall economic development strategy.
"I believe very strongly that we need to be aggressive in expanding our job base. That means focusing on retention as well as attraction of new businesses. We need to shed the perception that Montgomery County — and Maryland — are not business-friendly," said Councilwoman Nancy M. Floreen (D-At large) of Garrett Park.
"I believe we can accomplish this by asking — then listening — to the business world for their advice," Floreen said. "We need to emphasize our investment in education and work-force development, and keep pressing to expand our investment in transportation and other infrastructure. At the end of the day, it's the quality of life that brings and keeps jobs in the county, and we've done pretty well in that regard. We probably don't broadcast it enough, nor do we flat-out acknowledge our need for, and dependence on, a strong job base to continue to deliver it."
Jorge Ribas, president and CEO of the Mid-Atlantic Hispanic Chamber of Commerce, said the lack of a vision for county economic development begins with County Executive Isiah Leggett (D). Ribas, who said Leggett is good "with a vision for politics," but not for business, said a lot more needs to be focused in the county in actual programs for small businesses.
Larry Shulman, of Rockville law firm Shulman, Rogers, Gandal, Pordy & Ecker, said communication was a key.
"Open communications, where people are talking to people in the private sector, without a specific issue out there, understanding the industry, that's the key," Shulman said. "It should be so that when an issue comes up you can bounce it off a person in the industry, will this fly, will that fly … but it doesn't just happen once a year. It's about creating a dialogue with county government. If the business community feels they are listened to, being engaged, then they are going to communicate to others who are going to think about locating here that this is a business-friendly community."
Tina Benjamin, acting director of the economic development department, could not be reached for comment Thursday.
Commenting on the department, spokeswoman Ellis said in an e-mail, "… the primary goal of [the department] has always been, and continues to be, to work proactively to assist existing businesses and emerging entrepreneurs grow and succeed in the County."
She said the department has a "range of initiatives, programs, services and strategic partnerships" and strategically looks to market and promote the county regionally, nationally and internationally "as the location of choice for businesses looking to capitalize on a range of assets found here."
"These assets include a highly educated and diverse work force, leading public- and private-sector businesses and professionals engaged in life sciences, advanced technology and related knowledge-based fields, an expansive federal presence that continues to fuel our local economy and provide ongoing opportunities for our local business community, among many others."