Most of the Top 10 local business stories in 2009 have a common cause.

Their roots are in the recession, which created havoc for consumers and businesses alike.

The feeble economy generated headlines every month as it made jobs, profits and peace of mind scarcer.

Only three of 2009's biggest local business stories had other triggers — a takeover, a state law and a desire to revitalize downtown.

As in years past, this fifth annual list was compiled based on the scope and the immediacy of events.

1. Are we there yet?

The jobless rate continued to rachet higher during most of 2009 until retreating in November.

The state said this week the rate slid to 7.5 percent, down from October's 8.0 percent, the worst in 26 years.

Only time will tell whether October was the peak of unemployment during this recession.

Even with the November decline, the rate remained painfully high, with 19,800 people here jobless.

In November 2007, when the economy was healthy, the county had a jobless rate of 3.5 percent. Some 9,300 people were jobless then.

2. In for a shock

A 1996 state law deregulating the electric industry finally will give customers here a real choice.

At least five electricity suppliers are wooing consumers in PPL territory, hoping to sign them up for 2010.

The reason for the long-awaited arrival of competition is that caps on PPL rates expired at year's end.

That caused PPL prices to jump 30 percent starting today, exceeding what rival suppliers charge.

So far 148,000 PPL customers, or more than 10 percent, have switched to a competitor, PPL said this week.

3. Square deal

Ten years after it was proposed, Lancaster Marriott at Penn Square and the adjoining Lancaster County Convention Center opened in June.

The $177.6 million facility, which created 170 jobs, features a 19-story hotel with 300 rooms and a 220,000-square-foot meeting center.

The project initially was envisioned as far smaller in size and cost, with 281 rooms, a meeting center of 61,000 square feet and a $75 million pricetag.

The timeline was much shorter too — three years. But that was delayed by numerous legal challenges and plan revisions that required extra funding.

4. Takeover takes a toll

In the biggest acquisition of the year here, Windstream bought D&E Communications for $333 million.

The deal brought an end to the 98-year-old Ephrata-based firm, started by William F. Brossman.

It also will eliminate 70 percent of the former D&E work force, or 239 jobs, in Lancaster County by April 9.

The five top D&E executives, though, left in November with six-figure "golden parachutes."

5. Stronger foundation

The federal stimulus package gave a potent boost to the housing market here and nationwide.

Sparked by an $8,000 tax credit for first-time homebuyers, pending home sales here climbed out of the recession-induced basement.

Pending sales surpassed 2008 levels for six straight months by as much as 30 percent.

With the credit expanded to existing homeowners and extended to April 30, Realtors believe the momentum will carry far into 2010.

6. Dealers shuffled

The recession severely eroded auto sales, despite a brief boost from the federal "Cash for Clunkers" program.

The downturn led auto manufacturers to drop entire makes, and close or move stores.

Locally, gone is the Saturn store; General Motors is shutting down the division after failing to sell it.

GM, as part of its bankruptcy reorganization, also is dropping Pontiac, which has five franchises here, and trying to sell Saab, with one.

The bankruptcy of Chrysler triggered the relocation of two Chrysler and one Jeep franchise here.

CarMax delayed indefinitely its plans to build a used-car superstore here.

7. Sour note

When the Pennsylvania Academy of Music opened its new facility in June 2008, the structure was hailed as a pillar of downtown revitalization.

A year later, it was unclear how long PAM would stay in the magnificent $32 million building.

With donations and investment income down and expenses up, the nonprofit defaulted on $11.1 million in bank loans.

Its lender, in turn, scheduled a sheriff's sale on the 42 N. Prince St. structure.

But this week, PAM announced it had turned the building over to the bank. The bank agreed to rent it to PAM while it looks for a buyer.

8. Make less

"Made in Lancaster County" continued to become a less and less common description in 2009.

Manufacturing jobs fell by 3,500 over the past year to hit a mere 36,900 in November, or 16.1 percent of non-farm jobs here.

Ten years earlier, the county had 56,600 manufacturing jobs that accounted for 25.1 percent of non-farm positions.

Factories closing or announcing plans to do so included American LaFrance, Fleetwood and NTN-BCA.

And there were major layoffs at Conestoga Wood Specialties and other manufacturers.

9. Pay less

Shareholders of many banking companies across the country received smaller dividend checks in 2009.

Banking firms slashed their quarterly dividends to preserve capital as earnings tumbled.

These included major national banking firms with substantial operations here, such as PNC and Wachovia owner Wells Fargo.

Locally based banking firms that pared their payouts included Fulton Financial (from 15 cents to 3 cents), Susquehanna (from 26 cents to 5 cents, then to 1 cent) and ENB National (from 31 cents to 24 cents).

The cutbacks weren't confined to banking firms, though. Firms with local ties to cut payouts included Alcoa, Flexsteel, General Growth Properties and CNH Global.

10. Water works

PPL revived plans in April for a $440 million expansion of its Holtwood hydroelectric station.

The company had canceled the expansion in December 2008 because its rising pricetag was too costly.

But $100 million incentives in the federal stimulus package made the venture affordable.

The expansion will add 125 megawatts of generating capacity, enough to serve 100,000 more homes, to the 108-megawatt location.

tmekeel@lnpnews.com