City Manager's Column: "Rear in a Sling."

8-23-01

People who are viewing this web site might notice that we have devoted a lot of time and attention to economic development tools and incentives such as Tax-Increment Financing (TIF) and Urban Revitalization (tax abatement or tax exemption.)

The reason why we've done this is to show the public that the City of Maquoketa is interested in developing as a community.

In fact, our goals should be to:

1.) Create an environment for community development that will thereby encourage economic development; 2.) Create a reputation for success in the things we do; and 3.) Use economic development tools to retain/create good jobs, encourage housing, and create long-term tax base.

Economic development is a competition between cities, states, and even nations. The ones that will succeed will be the ones that choose to be "Players." As with any competition, a tradition of winning creates a reputation for success. In Maquoketa, we are trying to create a winning environment for development and a reputation for success in the things we attempt to do.

In whatever community, in whatever place, the first question in economic development always comes down to: "Do we like the project?"

If the answer to this question is "yes," then the second question is usually: "Is it worth investing tax revenue or public funds into a development during its first years of operation in order to have the development now and its future tax revenue later?"

Successful community development always carries with it a price, a trade-off, or some other form of sacrifice. The price that is paid is almost always based on a choice made between two competing timeframes: "long-term" versus "short-term."

Every deal has a point where the cost is too high. But, outside of that, if a choice must be made, it is always better to defer short-term benefits rather than lose a good development altogether.

We cannot succeed unless we use strategies that involve the use of economic development tools.

The use of the tools that Iowa Law allows us to use is often criticized. One case occurred in the early part of 2000. When the City created an urban revitalization area across the entire City Limits, in part, to encourage housing development, the criticism was that there will always be some homes that will be built whether this incentive is offered or not.

This is true. But, this criticism only looks at housing development in Maquoketa on a micro-level. In a broader view of housing development in Maquoketa, the more pointed question should be, "In a community of over 6000 people, why have only 13 building permits for the construction of single-family homes been issued here over the last three and one-half calendar years?"

It is rarely the case that communities simply develop themselves without any effort from their citizens. In the view of the City Council, steps had to be taken to jump-start the development of housing in Maquoketa, and the urban revitalization tool is one method of doing that.

In almost every situation, if a community chooses not to use the tools that the law allows, then the increased levels of housing, jobs, and future tax base will likely go to the city that does choose to use them.

Or, as I have stated it to our own City Council: While it is sometimes hard to explain why we have offered an incentives package to recruit a company, it is far more difficult to explain to upset citizens why the same business settled in a nearby town or state because we didn't do enough to try to get them to come here.

In the end, if city government can be the difference that allows something good to happen that might not have happened otherwise, or if we can be the difference that keeps something bad from happening, then we need to consider taking on that role.

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Why is this column called, "Rear in a Sling?" I toyed with other more traditional titles, such as "As I See It" and "Rose-Colored Glasses," but they didn't seem to fit. I also considered other non-traditional monikers such as "Up a Creek" and "Out of My Tree," but I don't do much canoeing or tree climbing.

It's always seemed to me that a lot of what government does relates heavily to two things: planning and conflict management. Planning is necessitated by change.  Sometimes, it's the type of change that we want, and, sometimes, it's the type that we don't want but can't avoid. Change then creates conflict.

Someday, this title might backfire on me.  Sooner or later, it is likely that I will write something that will, in fact, put me in a giant sling. 

Nonetheless, I've always had a lot of regard for people in government who can respond to change but manage not to get their rears in a sling for a prolonged period of time while doing it.

"Rear in a Sling" seemed to fit.