Economic Development
Our Country will grow if we implement smart
economic initiatives. One thing most government officials
do not understand is the connection between economic development
and stable job growth. For example, Nassau County is one of
the most expensive counties to live in New York. However recent
job development in the County pays employees on average $8
to $12 per hour. In a County where the average home is $400,000
it is unrealistic to think that any individual can work at
a $15,000 to $25,000 salary level and live in the County at
the same time. Allowing a developer to build is only half
the battle. The second half, which is the most important is
that the jobs that are created from that development are jobs
that provide salaries, which allow residents to live in that
community. The bottom line is we should not proceed with economic
development just to fill up land space. It should be done
in a manner that provides:
• Viable/necessary businesses for
the community
• Stable job growth and progressive salaries that commensurate
with the cost of living in the area
• Opportunities for ownership for younger business leaders
• Reduction in redundant businesses
Many times governmental officials use the
term economic development as a political plug or sound bite
that will get most citizens excited or enthused about their
community. However economic development models should not
be taken lightly because they are a very complicated process.
The problem with most economic models are they focus on which
developers and corporations want to come into the community
and not what the community itself wants. When this model is
used most people will shop there for a few years but then
stop going for multiple reasons (ie. more competitors, price
fluctuation, etc). Today you find more people shopping at
local malls and outlets strictly for convenience and pricing
purposes. On average the local downtown is non-existent. The
local hardware or pharmacy cannot compete with the marketing
and discount pricing campaigns of big business. In the end
the small business closes. The reason this happens is because
most economic models will allow a developer to build a Home
Depot or CVS while there is a local hardware or pharmacy in
the immediate community. The minute these chain stores open
it is matter of time before the “Mom and Pop”
shop is forced to close. Once that “Mom and Pop”
shop closes another void is established in the community.
Hence another vacant property! The cycle will continue if
the businesses that are developed do not co-exist with the
needs of the community.
Now lets move forward
• Economic Development can not be
done in fractions or in a vacuum:
We should have all the viable businesses
lined up for the existing sites within a community before
we commence development. This strategy may be difficult but
it strengthens economic opportunity for the community. Trying
to do a “piece mail” project doesn’t work.
Also in “piece mail” projects most businesses
want to know which store will be the anchor store (ie Walmart,
Target, etc). When this approach is used it usually becomes
a case of cat and mouse. No business will come to the community
if the anchor is not viable and no anchor store will come
if the small business do not compliment their business. We
should be looking to development all properties that have
been designated at the same time.
• Reusable Brownfields:
Corporations should be working with government
officials to ensure we are developing all reusable brownfields.
In more areas than not brownfields are an eyesore. In most
suburban and urban areas they tend to be abandon gas stations,
dry cleaners, and etc. We should encourage developers to use
these properties first before developing other open space.
• Viable Jobs:
People need jobs! Not just any job, but
jobs that will provide them with the opportunity to pay a
mortgage and afford all of the amenities that surround them.
Jobs paying $8-12 per hour will not suffice when the average
home in the area is $400,000.
• Encourage ownership within the community:
It is one thing to have large corporations
in the community, but I am an advocate for large corporations
that franchise their name to common individuals. For example
we should be supporting businesses that foster community ownership,
such McDonalds, Burger King, Blockbuster, and Midas.
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