End Gridlock Team, Council At-Large, 2002

During the entire 1998-2002 term, freshman Council Member Blair Ewing battled County Executive Doug Duncan on the ICC, development policy, living wage and other issues. In the spring of 2002, intense speculation centered on whether Ewing would challenge Duncan in the primary. Ewing instead formed a slate of challengers to take over the council, prompting Duncan to form his own slate: the End Gridlock Team. Duncan's team massively outspent Ewing and swept all the at-large seats. End Gridlock did many negative mailers, some of which we will be reprinting, but below is one of the positive ones.

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Silverman for Delegate, 1994

Steve Silverman is best known for his two terms on the County Council and his run for County Executive in 2006. But few people remember that Silverman ran for Delegate in District 20 back in 1994. All three incumbents – Sheila Hixson (who first entered office in 1976) and two-termers Peter Franchot and Dana Dembrow – were running for reelection.

Silverman’s platform was unusually parochial for a MoCo state legislative candidate. In his intro letter below, he questioned why Baltimore City and Prince George’s County were getting sports stadiums and more state aid than MoCo. This message would later work well for Rona and Ben Kramer.



Silverman lost to the incumbents, but he won an at-large County Council seat four years later and would make his mark on county politics. The only other candidate since then who has lost a Delegate race and was later elected countywide is current school board member Laura Berthiaume.

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Silverman Explains Northrop Loss

Montgomery County Director of Economic Development Steve Silverman sent the following letter to members of the business community explaining Maryland's failure to land Northrop Grumman.

April 29, 2010

Dear [Name]:

I am sure that there will be many articles written about Northrop Grumman’s decision to locate in Virginia, and I also assume that the facts and speculations surrounding the deal will be rehashed and debated. Given my day-to-day involvement in the County’s efforts to secure Northrop Grumman, I wanted to provide you with my personal perspective on this effort.

Rest assured that Montgomery County and the State of Maryland put forth an extremely competitive offer to Northrop Grumman. During this five month process, Maryland and the County worked collaboratively to attract this high profile prospect, and did so by involving high ranking leaders in our business and public sectors.

There are two important factors I would like you to know about this particular recruitment. One is that all of the elected decision-makers, who were required to sign off on our offer, starting with County Executive Ike Leggett and the Governor, did so with a thorough acknowledgement that we needed to be extremely aggressive, and aggressive in an unprecedented fashion. The second point I would like to convey is that Maryland and the County were complimented by many involved in the selection process on our attractive offer and welcoming nature. It appears that we surprised the site selection community with our proactive competitiveness, and in the process, hopefully changed the perception that Maryland and Montgomery County are not always willing to be real players in such high-stake recruiting activities – because we were and will continue to be.

At the end of the day, Northrop Grumman made a business decision involving real estate and unfortunately this time, that decision did not go our way. As we have previously noted, the glut of office space in Northern Virginia will remain a challenge for us, no matter what type of aggressive incentives we propose. While we are clearly disappointed, the County, the State and our respective economic development agencies are proud of our efforts.

I would like to thank you and your colleagues for your support of our corporate recruitment activities and ask that you continue your efforts to make Montgomery County a great place to live, work, learn, and play.

Sincerely,

Steven A. Silverman

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Response to Blog

By Steve Silverman.

The article above raises legitimate questions about the Costco initiative. Here are some answers.

The County Executive’s proposal to invest in bringing Costco to fill the now four-year-long hole left at Westfield Mall when Hecht’s went out of business is first and foremost about jobs.

The initiative would produce 475 permanent jobs, at a time when the County has lost thousands of jobs due to the economic downturn. It would create an additional 250 to 300 construction jobs. And it would leverage more than $50 million more in private investment.

Additionally, the County would receive property taxes, income taxes, and impact fees – and the State of Maryland would receive sales tax – from the Costco operation. Right now the empty Hecht’s is generating zero.

As with all investments from the County Economic Development Fund, this is a “money-maker,” not a money-taker.

Here’s how the process works: The County Department of Economic Development explores possibilities for investment of the County’s Economic Development Fund. It brings those possibilities to the Council, meeting in closed session. It is closed session because these are negotiations involving proprietary information, public disclosure of which, at that point, would compromise the County’s negotiating positions and possibly affect County negotiations with other companies.

The Executive seeks the Council’s advice. If the Executive decides to move forward, a formal proposal is sent to the Council, which involves public hearings and scrutiny from Council committees and the Council as a whole in public session.

Concerns about Wheaton’s central business district are legitimate. This development would strengthen the County’s vision for Wheaton. The mall is a given. It will be there whatever happens to a “Town Center” vision for the rest of Wheaton. This is part of an overall, ongoing effort to improve Wheaton, while retaining its unique character. The County Executive has just announced a “Request for Qualifications” to search for and choose a development partner to redevelop acreage owned by the County and Metro in downtown Wheaton toward that end (click here to view). And the County Executive’s recommended Capital Budget includes more than $7 million additional in Wheaton infrastructure.

But the success of that revitalization vision – and private investment in that vision -- rests on the mall being successful. Unlike the Costcos in Beltsville and Gaithersburg, shoppers will have to enter the mall to patronize Costco, just like with J.C. Penney and Target.

Since it would be filling up an already existing space in an already existing shopping mall, there would be no changes or public transportation investment necessary to facilitate the project.

The article above raises the question of possible impact of Costco on small businesses in the Wheaton area. In fact, Westfield businesses and many other businesses in Wheaton are already supportive of the Costco possibility. Why? Because every business in Wheaton needs more customers, more boots on the ground, more patrons.

And, in central Montgomery County alone, Costco has more than 12,000 business members. Small businesses shop at Costco for supplies the same way contractors depend on Home Depot for the materials they need. In fact 92 percent of businesses in Central Montgomery have Costco memberships.

The County’s economic development strategy is broad – including major efforts on expanding our biotech efforts, work to retain and expand federal job presence, and forging new ground in green technology. Incentives are only one factor among many in corporate decisions to locate. We continue our efforts on a broad array of opportunities, including, but not limited to Northrop Grumman.

As a matter of fact, in 2000, then-County Executive Duncan proposed, and the County Council unanimously approved, a $6 million incentive to bring Macy’s to this very same Westfield.

Counterposing the possible layoff of 44 bus drivers to the incentive being discussed is your classic false choice. One could pick any item of a County budget of $4.3 billion and juxtapose it to reductions being proposed by the County Executive to close a $608 million budget gap in the coming fiscal year.

Again, the investment by the County in a successful company such as Costco would create jobs, strengthen Wheaton revitalization, and provide individuals and small businesses with increased consumer choices.

And Montgomery County needs all kinds of jobs at this time of economic downturn, including retail jobs, in order to meet the varying employment needs of our residents. Costco, it should be noted, does provide health benefits for employees working 20 hours a week or more – and for their families.

It would, again, be a money-maker that would strengthen the County’s tax base and, thus, help maintain critical County services.

We look forward to working with the Council to advance this initiative and, more broadly, to move the ball forward on Wheaton revitalization.

Steve Silverman
Director, Montgomery County Department of Economic Development

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Silverman Comments on Leggett, Knapp Biotech Editorials

Steve Silverman, the County's recently hired Director of Economic Development, submitted a comment on our post "Leggett, Knapp Issue Dueling Plans for Biotech." We reprint the comment below for the benefit of our readers.

Adam,

I saw your blog entry regarding the “Dueling Plans for Biotech”. You stated that County Executive Leggett’s October 9th guest editorial for the Washington Business Journal was a “tit-for-tat” to Mr. Knapp’s 10-point Life Sciences Strategy proposal. That assumption is not reality.

First of all, County Executive Leggett welcomes and encourages Mr. Knapp’s contributions to our efforts and views Mr. Knapp’s proposal as complementary to the ongoing efforts we are making in this area. Secondly, County Executive Leggett recognized the importance of the biotech industry in Montgomery County early on in his long career on the County Council, helping to grow and nurture this industry during its early development in the County. He has continued that commitment to this vital industry as County Executive.

Since assuming office, County Executive Leggett has initiated three distinct efforts to strategically plan for our community’s economic future: 1) the development of the County’s Strategic Plan for Economic Development; 2) the establishment of a Biosciences Task Force, a group chaired by David Mott (former CEO of our own home grown MedImmune), which is developing a vision and roadmap to a successful life sciences industry; and 3) a Green Economy Task Force, whose end product will be a plan to develop the green industry, and jobs, in our community. Mr. Knapp’s proposals dovetail with these ongoing efforts.

The County Executive has been successful in leading the charge to have both the Maryland BioScience Center and the Maryland Clean Energy Center establish their operations in the County. He has funded and opened the fifth business incubator in the County’s Business Innovation Center on the Germantown campus of Montgomery College, a facility which builds on the College’s biotechnology and science programs.
And under his leadership, the County has successfully advocated for an expansion of the State’s much-in-demand biotechnology tax credit program.

Just to clarify, the guest editorial to the WBJ was drafted and sent to the WBJ on September 25 – more than least two weeks before it was published and five days before Mr. Knapp’s press release. (The “mainstream media” is not as nimble as you bloggers in printing posts). So, it should not be viewed as a “tit-for-tat”. For our efforts in growing and nurturing Montgomery County’s bioscience industry to succeed we must all work together. The County Executive knows this and I’m sure Mr. Knapp does as well.

Given your interest in this, I’ve attached the County Executive’s editorial on this issue.

Steve Silverman
Director
Montgomery County Office of Economic Development

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Montgomery County’s Most Influential People, Part Four

Our respondents collectively nominated 158 individuals as the most influential non-elected people in Montgomery County. Of these people, 101 received just one vote and 19 received two. To make it onto the upper reaches of our list, it was not enough for a person to be well-known in one local area or in one sector of the community. A person needed wide recognition across multiple segments of our sample to get near the top. Today, we begin presenting the leaders, along with some commentary from myself and our voters, in reverse order of the number of votes.

14 (tie). Doug Duncan, Former Montgomery County Executive
7 Votes

Reader: Watching Doug Duncan since 2006 has been like watching Whack-a-Mole. He keeps popping up briefly and then disappearing again, all the while we know he’ll eventually emerge yet again. Now we hear he’s weighing a return to the campaign trail. But the fact that what he’s planning is being watched so closely simply underscores his influence, even when out of office.

Reader: Seriously, could make a comeback. Just waiting for the opportunity. The whole depression episode seems to have tempered some of the opposition he had accumulated through so many years of doing whatever developers wanted.

Reader: Whether next year is a pretty calm election year with a few primary flare-ups or a knock down drag out fight that could lead to a Republican governor is up to this man.

Reader: Because of his recent remarks in the Post blasting O’Malley, Duncan makes the top 10 list because with over 300k in the bank, he could mount a strong (although probably unsuccessful) primary challenge to O’Malley next year.

Adam: The dominant political figure of Montgomery’s modern era. Cast a long shadow over the county’s politics for twelve years. Part of today’s dysfunction stems from the fact that many people are struggling to find their place in a post-Duncan county landscape with no single leader. That includes Duncan himself.

14 (tie). Glenn Orlin, Deputy Chief of Staff, Montgomery County Council
7 Votes

Reader: The single most knowledgeable resource about transportation in the County and maybe in the State. Glenn has the memory of an elephant and is not afraid to play tough with Council Members when he believes they are headed in the wrong direction. I believe Council Members trust Glenn more than any other person on the merit staff.

Reader: I heard him referred to as the tenth Council Member. Who sets the county’s transportation priorities? It is more likely Glenn than any of the nine Council Members who have served for a far shorter period of time. His influence is huge. Every candidate for state and local offices in 2010 will have to formulate opinions on projects he has put or kept on the table. He makes the election almost meaningless since he will remain no matter who wins. The rise of powerful legislative staff at the state and county level are one development of the past 30 years little understood, noticed, or appreciated by the public. How could such nice, hardworking people have anything but the best in mind for the county? However, if Glenn likes rail more than buses, his passion will be what drives decisions more than the elected Council Members or County Executive. It is sad and undemocratic.

Adam: He is the tenth Council Member, like it or not. Orlin has a long memory, a nose for detail, a facility for numbers and a quiet but shrewd style. He is the most influential transportation planner in the county, period. He also has one of the largest minor league baseball program collections in the United States.

14 (tie). Jerry Pasternak, Former Special Assistant to the County Executive
7 Votes

Reader: The former Duncan fixer still has access to and influence over various elected officials.

Reader: After three years out of County government, Jerry has largely shed the label of the Duncan administration but still has a huge rolodex of great relationships. Even though he works as a lobbyist, many influential people in County government still seek his advice on political strategy, and on that topic, there is nobody better.

Reader: Might be out of sight, but he is still behind every corner of important policy in the D.C. suburb side of Maryland. He knows what you did last summer. But he’s not necessarily telling.

Adam: Almost every rumor in the county goes through Darth Vader at least once before you hear about it. Still knows all the cards on the bottom of the deck.

12 (tie). Gigi Godwin, President/CEO, Montgomery County Chamber of Commerce
8 Votes

Reader: The Chamber’s CEO is warm and welcoming with a bubbly personality and a great smile. Don’t be fooled though - her policy knowledge is very deep and elected officials rely on her for guidance and advice. She is the consummate professional and her grace always helps the cause of the business community, even in difficult circumstances.

Adam: Leads a whip-smart team of super-women (including Vice-Presidents Barbara Ashe and Lisa Fadden) who give business a respected policy voice. Worth every penny of their members’ money.

12 (tie). Jackie Lichter, Political Director, SEIU Local 500
8 Votes

Reader: Helped coordinate the SEIU effort for Obama in VA. Helped elect Nancy Navarro. Now, rumor is, may get hired out by DLLR. Definitely continuing the meteoric rise.

Reader: Everyone has had a crush on her for years. (Lucky Alan!) Smart, funny, and she’s advising half a dozen upstart candidates for state office.

Reader: Should run in the future.

Reader: Can’t find anyone who will not rave about her. Unlimited upside. What she ends up doing will be entirely up to her.

Adam: Fastest rise in local politics since Valerie Ervin.

10 (tie). Blair Lee, Chief Executive Officer, Lee Development Group and Gazette columnist
9 Votes

Reader: Blair continues to be an insightful analyst of Montgomery County and Maryland state politics.

Reader: Like a crazy old uncle locked in the attic, Blair drips with frustration and sometimes incoherent musings. But his analysis of political culture in Montgomery and his regular skewering of the press and liberal politicians is still a must read. Here’s a prediction of his next column: Montgomery is getting steamrolled because it doesn't stand up to the Governor and the press will elect Obama to a second term.

Adam: MoCo’s old bull continues to snort and stomp on liberals and Baltimorons. Knuckleheads beware!

10 (tie). Gustavo Torres, Executive Director, Casa de Maryland
9 Votes

Reader: Executive Director of CASA de Maryland, his work has significantly and positively impacted the lives of many Montgomery County residents who have little influence or voice.

Reader: Most important voice in the Latino community in the state and will play an important role in the immigration reform debate next year.

Reader: Gustavo is a widely-respected strategist and advocate for the Latino community. CASA de Maryland is the go-to organization for the press, which makes them visible and effective on issues of concern.

Adam: Undisputed leader of MoCo’s immigrant community.

9. Doug Prouty, President, Montgomery County Education Association
10 Votes

Reader: As the MoCo political establishment has become increasingly disenchanted with Jon Gerson, the locus of political influence in the county's most powerful union may shift. Prouty is smart, well known to both older activists (because his parents were active in the NAACP) and younger (because of his work with MCEA), and charismatic. He is also unflinchingly dedicated to education, with no ambitions to elected office, which will serve him well.

Reader: He’s president of the county’s teachers union, which is one of, if not the, strongest political player in the county. I’m only putting one person per union, the President. While Tom Israel and Jon Gerson are certainly influential in the endorsement process and other decisions, at the end of the day, Prouty is MCEA president and Gerson is just staff.

Reader: The new MCEA President will play a huge role in the 2010 election. His support is one part of the Holy Grail of local endorsements - the other being Chris Van Hollen. Look for this county native to play an even bigger role than his powerful and much respected predecessor Bonnie Cullison. Prouty’s local roots make him less dependent on advice from Jon Gerson as well. However, he may focus MCEA’s efforts on County Council and Board of Education elections next year since their membership will have a greater impact on teacher salaries over the next decade.

Adam: Brand new MCEA President. Few people know him now. EVERYONE is going to know him a year from now. Has equal roots in the labor and educational communities and has the word “Leader” written all over him.

6 (tie). Tim Firestine, Montgomery County Chief Administrative Officer
11 Votes

Reader: The buck stops somewhere on Firestine’s desk. It’s gotta be tough being the budget guy when times are so bad. Cutting salaries for teachers, firing a few county employees, talking about furloughs. But, hey, at least we have enough money to get Ike’s Helicopter Adventureland off the ground. Free rides for kiddies and campaign donors.

Reader: Handles the nuts and bolts of the county.

Reader: A calm overseer of daily operations of Maryland's largest jurisdiction.

Reader: No one knows the county government as much as the CAO. He has more institutional knowledge than anyone. He knows where the money comes from and where it goes.

Reader: Shapes the running of the government, shapes the form of Ike’s arguments.

Reader: He’s got his hands in everything MoCo and is very effective.

Adam: Still the most powerful man you’ve never heard of.

6 (tie). David Moon, Former Campaign Manager for Jamie Raskin and Nancy Navarro
11 Votes

Reader: Quiet political mastermind behind Jamie Raskin and Nancy Navarro, now a force feared by several incumbents.

Reader: Now has quite the reputation for winning campaigns. As regards electoral work, any pol in MoCo worth their salt will be seeking his help. We’ll have to see whether influence at the polls can translate into influence over policy.

Reader: At least everyone seems to have a political crush on him right now.

Reader: Talented political strategist and organizer.

Reader: Political and policy guru.

Reader: With several successful campaigns under his belt, Moon has become the go-to political operative in Montgomery County. But only as a staffer to Nancy Navarro can we see the full extent of his influence, leading some to wonder if he’s playing puppet-master.

Reader: Played the David Plouffe role in the Navarro special election, but what will he do for an encore?

Adam: Growing fame is matched only by his deviousness.

6 (tie). Steve Silverman, Montgomery County Director of Economic Development
11 Votes

Reader: Like a previously caged bobcat, Silverman has leapt back into Montgomery looking for fresh game.

Reader: A team of rivals? Ike’s decision to appoint Silverman to run Economic Development for the County should be seen simultaneously as one of the better decisions he’s made, but also a sign of his own weakness. The fact that so many people were thrilled to have someone in the Executive Branch to turn to other than Ike cannot help but underscore the buyer’s remorse so many people I have spoken to have mentioned.

Reader: Incredibly well-connected and well-liked in various sectors around the County. Many who are disappointed in Ike’s leadership are eager to see Steve succeed in his new role and appreciate his ability to get things done (not a strength of the Leggett administration).

Adam: Ike Leggett made the political move of the year by making Silverman the new Director of Economic Development. That appointment simultaneously placated the business community and neutralized a potential opponent. The problem is that Silverman’s success depends on Leggett’s willingness to fund his department and allow him to use the money as he sees fit. The jury’s still out on that one.

We’ll present the Fabulous Five tomorrow!

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Steve Silverman on "Political Pulse" on Channel 16 TV‏

Steve Silverman, the Director of the Montgomery County Department of Economic Development will be on the "Political Pulse" TV Show on:

Thurs, September 10th at 9:00 p.m.
Fri, Sat. Sun., September 11th-13th at 6:00 p.m.
Tues, September 15th at 9:30 p.m.

Topics that will be discussed include the competition between Montgomery County and other jurisdictions to retain and attract new businesses and how taxes, traffic and the quality of schools in Montgomery County are relevant to companies that are considering relocating.

Political Pulse is on Channel 16 TV in Montgomery County.

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Whispers of the At-Large Race, Part Five

In our final part, we examine the last three potential at-large contenders.

Hans Riemer, Silver Spring

Riemer moved into Montgomery County in December 2004 and ran unsuccessfully for the County Council District 5 seat in 2006. He has lots of experience as a national political activist, working against George W. Bush’s social security privatization plan, running Rock the Vote and working for Barack Obama’s presidential campaign as his national youth director. He currently works for AARP.

Riemer has a number of important strengths. He was a maniacal door-knocker in 2006, has a knack for making a good impression, has quickly developed a network of friends across the county (including your author, who supported him last time) and has participated in numerous political and advocacy campaigns. He raised over $130,000 for his last council race and that was before he went to work for Obama. His weakness is that he does not have a long history of activism in the county. His service on Action Committee for Transit’s board was interrupted by his employment with Obama. Still, Hans Riemer will be a major contender for an at-large seat because of his progressive background, campaign experience and ability to raise money.

Spy: Can’t see him winning, but he is politically immersed and was gracious after losing to Valerie Ervin. He would be a dark horse candidate. I believe he will run.

Spy: He is someone that can be a progressive consensus builder in Rockville.

Spy: Hans also works for the AARP so he should be able to deliver credible messages to the “Obama Generation” as well as Seniors. He will have to work against the potential “Downcounty” heaviness on the Council (Marc, Valerie, Nancy, Hans and George). To do this, he’ll have to work hard to prove to the UpCounty folks that he can represent them too and that he’s able to relate to their concerns. He is a good fundraiser and will be able to fundraise a lot of money, which is necessary for an At-Large bid, and if done early, could scare some others out of the race. He would be an asset to the council as a new, young voice in contrast to the status quo.

Spy: Young - experienced, smart and multi-ethnic appeal as his wife is minority. Cute child. Said to be exploring a run as an at large candidate. Ran against Valerie and is rumored to be supported by her for the at large spot. Don't know his politics or his alliances. With experience in Rock the Vote, AARP and the Obama campaign - could be a formidable candidate especially if he can still draw on some of that West Coast money.

Spy: I think Hans will be a strong candidate. You can’t even count the number of friends this guy has made over the last few years. A talented, fresh face to shake up an underwhelming council. While he lost in 2006 his campaign was quite well run and this is the type of guy who learns from experience. Of all the names, only Hans seems strikingly different than the same-old tired list of Council candidates. He’s a proven money-raiser and knows how to campaign. He’d be appealing to new, younger voters and senior citizens alike, and is well positioned to be the strongest voice on sustainability issues.

Spy: Smart and likeable. Could be a dark horse. Claims to have the ability to mobilize young voters - but didn’t do so when he ran against Valerie Ervin in the 2006 District 5 primary.

Spy: Hans Riemer would be a great at-large candidate, who could bring in younger, progressive Democrats and minorities. His run (and loss) in the District 5 Council race a couple of years ago was good preparation for a second try, and I think it’s a sign of his political talent that he and Valerie seem to have a good relationship now.

Spy: He’s been planning to run since he lost. He is much more established than he was a few years ago and is a logical additional vote for the Floreen/Ervin/Knapp/Leventhal side of the council. He has the organizational know-how to run countywide and can raise the money.

Spy: Hans Riemer is one of the more frequently mentioned serious at-large candidates. Though Valerie Ervin handily defeated him, Riemer seems to have smartened from the loss and has built strategic alliances since then. The key fact in his favor is that he raised a large wad of cash for his first run for office, both proving that he can raise money and also that he must have built serious name recognition in D5 after having spent so much money there three years ago. Since branching out to serve on the brain trust of Obama for America, AARP and ACT, he should be a fundraising juggernaut compared to the other challengers. His youth also gives him both a fresh image and makes him harder to tie to the older battle-lines (ie: End Gridlock). Keep an eye on Hans Riemer. He is likely to gain the support of perhaps some incumbent councilmembers, as well as Obama volunteers, progressive activists, labor, business, and more.

Steve Silverman, Silver Spring

Prior to County Executive Ike Leggett’s hire of Silverman as his new Director of Economic Development, a possible comeback by the former at-large Council Member was one of the hottest rumors in the county. That was probably part of the reason why Leggett brought him in. Few people believe that Silverman will run again now. But what happens if he figures out that Leggett will not give him the resources he needs to do his job?

Spy: Can’t see him doing that, but he does burn to win and loves wielding power. Enough with the retreads. Let’s develop a new bench.

Spy: This rumor doesn’t pass the credibility smell test. No way in hell he’s going to trade in his cozy $180,000 County job for the right to go back to the Council and make 50% less. “Been there, done that” saying certainly applies here.

Spy: Steve Silverman is the other all-star (along with Becky Wagner) on your list. He is already getting rave reviews from inside and outside DED and he’s only been on the job a few weeks. He is “A-list” material, without a doubt, with a proven track record from his previous service on the Council and a practical, no-nonsense approach to local government that is focused more on results and helping people than ideology or political correctness. He would instantly be a leading candidate for any office in the County, if he wants to run in 2010. That is the only question. He knows how to get along with others, even those whose views differ from his, and the County would benefit from more true leaders, like Steve, at the helm right now in these very difficult times.

Spy: Steve is making much better money than Council Members. Been there, done that.

Spy: Not sure he would run, but if he did, he surely would round out the leadership team. This man is a leader. Steve is honest, practical, effective, and respected by residents, community groups, labor, business and other elected officials. Indeed, his former rival, Ike Leggett, has called on him to serve.

Spy: He burned too many bridges in his last campaign. Leggett is too smart to have brought him on if he thinks he would be a rival. He has been a state official, and tried for county exec, - wouldn't another run for at-large be a come down?

Spy: I’ve never heard of him as a potential candidate for council. I had heard rumors of him running if Leggett didn’t (a big rumor a few months ago), but hopefully he settles into his new post.

Spy: Interesting to think about Silverman returning to public life. Though I know many a person who now regrets supporting Leggett over Silverman, most of these are knowledgeable political operators. They mostly voted for Leggett because they thought he was more liberal, but now find him to be either an incompetent manager or an intentional waffler. They do not outnumber the much larger group of primary voters who (fairly or unfairly) drank the Kool Aid and started believing Silverman was the devil in developer’s clothing waiting to plow over the Ag Reserve. It is sort of sad, actually, as Silverman seems like a nice guy and Ike seems more like a weasel every day. In any case, Silverman would hurt George Leventhal’s re-election prospects. But, is he really going to run for office after picking up the high-profile post he just accepted?

Spy: Has a much better job now as Economic Development Director. The big surprise would be if he decides the Leggett administration is dysfunctional, resigns and runs for County Executive against Leggett!

Becky Wagner, Bethesda

Wagner has been the Executive Director of Interfaith Works (formerly Community Ministry), one of the county’s most prominent charities, for about ten years. She is one of the biggest names in the county’s non-profit community and is well known by both the political class and the business world. She was named a 2008 Washingtonian of the Year by the magazine of the same name.

Wagner has never run for office before but she did work as an aide to Senator Paul Sarbanes. As a successful non-profit executive, she should know how to raise money. Her organization’s mission of helping homeless people and the working poor should give her plenty of credibility with progressives. Her biggest potential problem is her opposition to the county’s living wage law, part of an effort by non-profits to successfully exempt themselves from the law that ultimately passed. Wagner is a heavyweight contender for an at-large seat.

Spy: Becky Wagner is the standout among the early names surfacing so far. She is the real deal, a true, proven, visionary leader with deep roots and incredibly broad support in the community. She has dedicated most of her life to making the community we live in a better place, especially for those less fortunate, and she is a good manager who knows how to run a tight ship. She has earned lasting respect and admiration from everyone who has ever gone through Leadership Montgomery, run a local business, had any interaction with Community Ministries or dozens of other major non-profit organizations she has helped in the County, or basically anyone who has ever met her. She is the kind of serious, dedicated community leader (and I use the term “leader” deliberately here) who you’d hope in your wildest dreams might be persuaded to run for public office one day. She is on everyone’s “A-list” and would be a huge asset to Montgomery County as a member of the Council. Just let me know when she launches her campaign committee and where to send the check. As leaders go, it doesn’t get any better than Becky Wagner.

Spy: Runs a very professional, respected non profit. Has political experience working for former Sen. Sarbanes. Can’t see her having the patience for the B.S. required for running and serving as an at-large council member in Montgomery. However, if she does, she could be a very strong candidate. Already has a built in network with her non-profit and has a track record of serving others.

Spy: She knows the non-profit worlds but is there money there for her campaign? Does she have her feet on the ground and is she grounded enough to hit the trail running? I have my doubts - and do not see her on the circuits, nor have I heard her speaking forcefully on any cause that could rally the faithful.

Spy: Becky Wagner is the new Jane De Winter, meaning people are floating her name quite a bit right now as a potential serious at-large challenger. Unfortunately, she suffers from the same problems as Jane De Winter - no name recognition, no demonstrated fundraising ability, and nothing particularly exciting or different about her, except that she is a woman whose name is not Duchy Trachtenburg. This seems like a real long-shot, even with incumbent support. Putting gender aside, the fundamentals of her candidacy are little different than that of Chris Paladino, who has no chance.

Spy: I know a lot of people who will drop everything to support Becky Wagner… I see Hans and Becky as the only two on your list who will be able to excite people enough that they will open up their checkbooks to give generous contributions.

Spy: The strongest possible non-incumbent (other than Silverman). Wide reach across the county, strong base in the religious and non-profit communities, impressive fundraising potential. Excellent speaking skills and knowledge of the issues. If I were an incumbent at-large member, I’d be very worried about Becky. She needs to make amends with labor for her opposition to the living wage legislation years ago, which she should be able to do, given labor's antipathy to Trachtenberg and desire to back a winner in 2010.

Final comment:
At the moment, we see Becky Wagner, Hans Riemer and Jane De Winter as the most likely and viable at-large challengers. But it’s still very early. Each of them needs to start running hard, raising money and gaining visibility SOON. Whoever slacks off will fall behind in the early contest for surrogates, endorsements and the critical Apple Ballot. And don’t forget that all four incumbents are in the race. So, to all the candidates, we say this – start showing us some hustle and run!

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Does the Department of Economic Development Actually Create Jobs?

The recent loss of Hilton Hotel’s headquarters to Fairfax and the resignation of Department of Economic Development (DED) Director Pradeep Ganguly have created significant debate about DED’s performance and mission. Four County Council Members wrote County Executive Ike Leggett urging him to select a new DED Director rapidly and Leggett picked former County Council Member Steve Silverman. But debates about DED’s leadership do not answer more basic questions, such as whether DED actually creates jobs and deserves taxpayer support.

A mammoth report from the Office of Legislative Oversight lays out DED’s functions. DED encourages private sector job creation by overseeing qualifying capital projects (valued at $5.7 million in FY09), offering tax credits (valued at $3.4 million in FY09), running the county’s business incubator program, doing marketing and outreach activities and providing career services to adults, dislocated workers and youth (mostly through contractors). The two largest DED programs are the incubators (based in Shady Grove, Silver Spring, Wheaton, Rockville and Germantown, with a sixth one coming in Fairland/White Oak) and the Economic Development Fund, which makes loans to businesses. The report describes the work of DED in exhaustive detail, but it offers no opinion as to whether DED actually creates jobs. Instead, it says:

The research literature contains few examples of rigorous outcome evaluations of state and local government economic development programs. Measuring an economic development program’s effectiveness requires establishing a cause and effect relationship between the program and outcomes. Few groups undertake this type of evaluation because it is both analytically difficult to design and because the evaluation cost is often perceived as outweighing its benefits. Further, in some situations, political interests further discourage a review that might reveal negative results.

Below are financial data on the program from Montgomery County’s operating budgets. Note that “Grant Fund MCG expenditures” refer to federal Workforce Investment Act money. Also note that FY08 was the first budget during the Leggett administration.


Total funding for DED’s operating budget grew by 3.4% and 3.7% in Doug Duncan’s last two years and then changed by 7.8%, -1.8% and 10.9% during the first three years of the Leggett administration. But that is deceptive because it includes federal grants. In terms of county funding alone, DED’s operating budget grew by 25.0% and 11.3% in Duncan’s last two years and then changed by 10.8%, -3.4% and -2.4% under Leggett. Total workyears initially rose under Leggett but have fallen by double digits in the last two years. Economic Development Fund expenditures have fallen from $3.7 million in Duncan’s last year to a recommended level of $852,440 this year. On a strictly monetary basis, Leggett has reduced the county’s commitment to DED.

What does this funding buy? Under the Leggett administration’s Countystat program, DED has attempted to quantify the impact of its work in its latest recommended operating budget:


DED claims job creation by new and existing businesses through “DED involvement” ranges from 1,200-1,800 per year. Capital investment through “DED involvement” totals $35-110 million per year and leased space ranges from 414,200 square feet to 896,318 square feet.

In comparison to the size of the county’s economy, DED’s impacts are strikingly small. The Bureau of Labor Statistics estimated Montgomery County’s private sector employment at 380,492 in 2007, meaning DED’s job creation accounts for just 0.3-0.5% of the county’s private workforce. The county has 42.1 million square feet of office space, so businesses with which DED is “involved” only occupy 1-2% of the office market. And business capital investments in the tens of millions of dollars are minuscule compared to the county’s $59 billion in personal income as estimated by the Bureau of Economic Analysis in 2006.

Another question arising from the data is the meaning of “DED involvement.” Does that constitute making a phone call, holding a seminar and mailing a brochure or does it only include more substantive activities like grants of tax credits and loans? Are DED’s performance claims really based on services that were vital to creating private sector jobs or would those jobs have been created anyway? Current Countystat data does not say.

The new DED Director and the County Council must start asking these kinds of questions to get at the central issue: does DED actually create jobs? If it does, its budget should be dramatically increased because few things are more important during a recession than creating jobs. But if it does not, then DED should be eliminated. Its funds could be better used by other agencies or returned to the taxpayers.

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Spy Roundtable on Leggett’s Hiring of Silverman

MPW’s far-flung spy network was quite excited this week over County Executive Ike Leggett’s appointment of former County Council Member Steve Silverman as the new Director of the Department of Economic Development (DED). Let’s find out what our super-connected informants had to say about that.

Spy #1:

There was little difference on issues between liberal Democrat Ike Leggett and liberal Democrat Steve Silverman In the 2006 Democratic primary. To persuade voters that there was a distinction between them, Leggett embraced the cause of anti-growth activists (even though his 16-year voting record on the County Council had never reflected an anti-growth perspective). He will never admit it, but by appointing his 2006 primary opponent, Leggett is conceding that the anti-business rhetoric of the 2006 campaign was a mistake. Montgomery County must pursue an aggressive and effective economic development strategy if we are to achieve our other public policy goals (world-class education, support for the needy, investment in infrastructure, etc.) Managing our growth is a challenge, but the current economic crisis has shown us that not having growth is worse.

Spy #2:

Steve Silverman is a smart guy and a dealmaker. He has gained experience as a manager with the AG's office. I question, however, whether there was someone else out there with greater experience in economic development. For Steve, it's a better commute. For Ike, at least it didn't take 6 months to fill a vacancy.

Spy #3:

It is welcome news for the business community in Montgomery County. Steve is pro-economic development, understands the politics of the county and has a demonstrated record of bringing people together to get things done. Given the current economic climate in the county, and the frustration many business leaders have with County leadership, Steve will be seen as welcomed relief. It is an interesting decision by Ike to hire his former adversary. It shows either strength on his part or concern about the future tax base of the county that he brought in a bright light like Steve. Perhaps it’s a little of both.

Spy #4:

It’s very obvious that Ike is practicing that old adage, “Keep your friends close and your enemies even closer.”

Spy #5:

It’s a good move. It keeps a potential rival out of the exec or council races, and will make Steve more circumspect in his comments. The co-authors of the wreckage that was Doug’s regime will have one less defender. I think Steve could be good at this and certainly has promotional skills. The business community should feel comfortable with him. His weakness is his lack of analytical skills involving development. Any deal is not a good deal and Steve is used to a world where you either give away the store, or bend over and say “screw me.” His staff will have to be the ones to pay attention to the details and make sure that the deals are good for the county, not just the fish we’re trying to lure here.

Spy #6:

I was never a Silverman fan. I think he has lots of business contacts whom he can bring into the Leggett fold. Of course this can also defuse him as a possible opponent in 2010. Can he do a good job? If he so chooses. He is not known for a quiet and gentle manner, nor as one who takes direction well, so we’ll see what happens.

Spy #7:

Choosing Silverman - head of the End-Gridlock County Council - isn’t too much of a surprise.

Ike Leggett has been quietly letting people see his real side since his election. He ran on a platform of slow growth and of addressing inequities of county government. But for many reasons - the budget most prevalent - he could not achieve these goals and there is a question whether he really wanted to in the first place. Ike is a seasoned politician. During the election he realized the winds had changed and people were not happy with Doug Duncan and his pro-growth End-Gridlock team.

For the last two decades Ike never took a hard stand on anything that had any controversy. Ike has always been known for flip-flopping and fence sitting. He flipped on the Purple Line when the time was right and sat on the fence on the ICC for years. When Ike was on the council he would wait until he knew where the popular vote was and then he would champion it. He always stayed close enough to both the developer and the civic to know where to vote. Remember Ike supported Pay and Go and people don’t change their spots that easily. If Ike does not get political capital on an issue he usually sits on the fence.

After he was elected he started right off pandering to the development communities by appointing Bob Metz from the land use law firm Linowes and Blocher as his transition team leader. It’s rumored that Jerry Pasternak is a regular on the second floor at 101 Monroe Street. Three guesses why that is. Ike has been making a lot of noise about Royce Hanson, but I am sure quietly he is saying to himself “You Go Royce!” as Mr. Hanson is promoting and approving project after project of high-density development. I am sure Ike is hearing the sound of ChaChing with every project that Park and Planning approves.

Ike learns real fast. He knows that he needs to support growth to placate the Chamber of Commerce, so he talks the Smart Growth game - the new pro-development, popular, environmentally sensitive pro-growth marketing mantra. The Shady Grove Smart Growth Development is a prime example. The community wanted no more than 3000 residential units and Ike pushed for 6000, bet he lands big campaign contributions there.

Ike knows getting to the top is only part of the battle. He still has to stay there and so far he’s not doing a great job of building community confidence. Laying off 400 County Employees hasn’t helped in the realm of making him very popular. Now that Ike has had to lay off those county employees he needs to mend fences with the unions. Ike also knows who still has clout in Montgomery County. He owes his political career to Sid Kramer so it’s no surprise he would help Sid’s son get his own start in county politics. And besides Kramer will round out Ike’s Pro-Growth team nicely on the Council. Ike claimed he supported “managed growth” but he hasn’t done anything to increase roads, transit or schools. With Silverman on his team, Ike is trying to follow in the footsteps of Doug Duncan and build a pro-growth political powerhouse that will bring big campaign dollars for either a re-election bid or maybe the governor’s house. Only time will tell.

Spy #8:

Appointing Steve Silverman to head Montgomery County’s economic development efforts is a good move on many levels: First, Steve’s appointment will be seen as a confidence booster among local business leaders who, up until now, have been underwhelmed by both the leadership demonstrated by the executive branch and the Council on anything related to our business climate. Second, it underscores the fact that the Leggett administration understands the body blows our local economy has taken in recent months and now sees the need for much stronger leadership in this under funded and (until now) spectacularly poorly led “unwanted step-child” of an agency. The next question is, will the Council ever get it, and will they ever start acting accordingly? Third, Steve Silverman has the ability to inspire and re-energize the DED staff, which is beyond demoralized by most accounts, and bring more focus to their efforts. Finally, it shows that Ike Leggett is secure enough in his political standing to appoint a former rival to a key position in his administration. As the appointment of a “Team of Rivals” was seen as a measure of the political genius of President Lincoln at a moment of profound crisis in our nation’s history, perhaps Mr. Leggett’s choice in this case (albeit on a slightly smaller scale) will prove equally wise in this time of economic crisis. In any case, this is clearly a good move and will be well received in most quarters.

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Leggett Names Steve Silverman To Direct Economic Development Department‏

Following is the press release from the Leggett administration.

For Immediate Release: April 7, 2009

Leggett Names Steve Silverman to Direct Economic Development Department

Montgomery County Executive Isiah Leggett today announced Steven A. Silverman of Silver Spring as his choice to head the County’s Department of Economic Development.

Since January 2007, Silverman, 54, has served in the Maryland Attorney General’s Office, as an assistant Attorney General, heading the Consumer Protection Division, and most recently, as Director of Aging, Healthcare and Special Projects.

“Retaining and expanding business investment and growth in Montgomery County is always important, and it is even more critical in these uncertain economic times,” said Leggett. “Montgomery County has not been immune from the economic uncertainty that has already impacted the entire nation.

“Still, our strengths as a County are enormous. These strengths provide good jobs paying good wages. They make possible and, at the same time, are strengthened by, our world-class school system and Montgomery College. They strengthen our tax base to make possible the delivery of critical services in public safety, transportation, and assist the most vulnerable in our midst, and more.

“Montgomery County cannot, however, rest on its laurels. We must continue to work to retain and grow businesses here in the county at the same time that we strengthen our programs aimed at small and minority businesses and reach out to attract investment and companies from across the nation and beyond. We are a leader in biotechnology, but to retain that position, the County must push toward the new horizons.

“Our Smart Growth Initiative is designed to meet the needs of the present and the future by bolstering future development in biotechnology to create the jobs – and the resulting tax revenue -- of tomorrow, while opening up thousands of transit-oriented housing units next to the Shady Grove Metro.

“Our outreach to foreign companies is centered on the very cutting edge sectors such as biotechnology and information technology that we are looking to strengthen here in Montgomery for the long-term.

“Our Green Economy Task Force is working to promote Montgomery County as a leader in the conception, production, and marketing of the green technologies of the future.

“Steve Silverman has the energy, intellect, and experience to take our Department of Economic Development to the next level – to work with me to help weather the challenges ahead and position this County and its businesses to come out of the downturn in a strong situation that builds for the future.

“As a former chair of the Council’s Planning, Housing, and Economic Development Committee, he is fully versed on the whole range of issues, problems, and opportunities before us. He knows where we’ve been, where we are, and – most importantly – where we need to go.”

Silverman served as a member of the Montgomery County Council for two terms, from 1998 to 2006, serving as its president twice.

“I am very excited to be chosen for this position by my good friend Ike Leggett,” said Silverman. “I look forward to working side-by-side with him to advance our economic development efforts in these turbulent times. Much good work is being done -- and many more challenges lie ahead. I will work closely with the County Executive and with our county businesses – large and small – to protect what we have, take our strengths to the next level, and help build the tax base that makes possible our critical County programs in so many areas.”

Silverman received a B.A. from the American University (School of Government and Politics) and his J.D. from George Washington School of Law. He served as a co-chair of the Silver Spring Redevelopment Steering Committee (1998) which was instrumental in the revitalization of Silver Spring. Silverman served as chairman of the Greater Silver Spring Chamber of Commerce and has been recognized for his work by numerous community and faith-based organizations.

Leggett is sending the nomination to the County Council this afternoon.

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Contact: Patrick Lacefield, 240-777-6507

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