by Marc Albert
A lengthy story on the front page of the business section of today’s New York Times suggests that Emeryville’s renaissance as a big box mecca may backfire — as worried consumers drastically cut spending.
The story, A City That Shopped Till it Dropped chronicles the waning fortunes of local retailers and the repercussions for a city dependant on sales taxes.
The Times describes Emeryville as having “hitched its wagon over the last several decades to what seemed like the limitless ability of American shoppers to spend money.” The strategy is suddenly a poor bet. The Times said 25 percent of the city’s revenue comes from sales taxes and “‘collections fell 23 percent in the third quarter this year from the same period last year, among the steepest drops in the state.”
With the expansion of the Bay Street mall (pictured above) looming on the City Council’s agenda, the article asks, “Did a city that worked so hard to clean up the mess left by abandoned steel mills and rubber plants ultimately trade one kind of urban blight for another, more modern variety?”
___________________________________
The City Council majority continues to promote big development (and millions of dollars in taxpayer subsidies to build these developments) with promises of big tax revenues in return — to pay for parks, child care, sidewalks, and better youth and senior programs. All of those promises may turn out to be nothing more than pie-in-the-sky.
It’s pretty easy to whine about this, but I don’t see anyone suggesting alternative ways to fund police, education and beautification projects.
The last comment is spot on. I challenge anyone to come up with a better way to fund municipal government (especially small ones) in California than salex tax and trasient occupancy (hotel) tax. Unfortunately that is the name of the game in California. Blame Prop 13. Almost all residential land uses lose money for municipal governments. Its true: our property tax does not pay for all the services we use. Fiscalization of land use is reality and Emeryville has done a great job capturing tax dollars. It allows all of us benefit from the relatively high level of services we have. Yes, in a downturn there will probably be cuts, but that is the nature of a cyclical economy. If anyone has a solution, by all means, share.
how about collecting on unpaid business taxes?
“I don’t see anyone suggesting alternative ways…” Dude, read the NY Times story… Emeryville stands alone in this heavy dependance on retail sales taxes. Decisions were made to take us down this path. Other cities made other choices but Emeryville is unique in how exposed it now is….other cities will fare better in the economic crisis.
Interesting you choose the word whine…city of whiners, nation of whiners. It’s a recession of the mind.
Did someone say “beautification projects”??
One alternative would be to diversify with other kinds of commercial and light industrial development, particularly green and homegrown businesses, instead of doubling down on retail & hotels in order to squeeze out a couple more dollars per square foot. One good step in this direction would be to stop pushing out and tearing down viable existing businesses like the Flower Mart in order to build one more mall.
No, these businesses don't produce the kind of spectacular returns that retail & hotels do during boom markets. But like T-bills, they do better in hard times. If it's not smart to invest your whole retirement according to one high-risk strategy, it's no smarter for the city to do the same with its (our) whole budget.
It’s the Redevelopment Agency that needs to be examined. Of course there are issues with prop 13, and the way we chose to fund our cities and country. The state’s, including Emeryville, loss is partly due to the way the Redevelopment Agencies across the state operate. Follow the money and the lobbyists; bond brokers, lawyers, developers… And, as a citizen of Emeryville, how much is the total indebtedness of Emeryville, and how much is it Statewide?
Here here on the Redevelopment Agency! All this tax increment “funding” is/has bitten us in the ass. It’s immoral to call thriving (non big box) business and people’s homes “blight” to turn it over to favored developers. The feedback loop is complete when the favored developers donate to the politicians re-election campaigns.
My friend in Florida sent me the article as it was in the “National Journal” section of the Sarasota-Manatee Herald Tribune.
Why do we have to learn about our town from the New York Times? Why won’t the Chron or the Trib cover Emeryville?