Mobility Fee Moratorum an Epic Fail?

[Metro Jacksonville]

Mobility Fee Moratorum an Epic Fail?



September's version of the "On Numbers Economic Index," which measures the economic health of 102 major metropolitan areas doesn't have good things to say about Jacksonville when compared to other cities in Florida and across the nation.  Such data tends to suggest that the mobility plan moratorium, intended to spur economic development locally, has epically failed.


Full Article
http://www.metrojacksonville.com/article/2012-sep-mobility-fee-moratorum-an-epic-fail

[JeffreyS]

Epic fail is the perfect description.

[fsujax]

now if we could just convince a majority on City Council of this.

[mbwright]

oh, gee, what a surprise.  I guess the lack of development was not solely because of the impact fee.  Sort of like Rick Scott saying the reason the state was not developing, was because of all of the restrictions imposed by the DEP, EPA, and DRI reviews by the DCI.  Hard to believe these were not the root cause of this mess we are in.

Interesting to note that by not collecting the fee, that it conversely prevented work to be done that the fees supported.

[Bridges]

Great Article! Going to write the city council with some facts about it.  Are there city council meetings where they discuss the fee moratorium? 

[tufsu1]

no one has officially filed a request to extend the moratorium yet....so not, there aren't any scheduled meetings

[dougskiles]

Let's compare two different strategies available to provide jobs:

In today's Florida Times Union, there is an article about property tax rebates given to companies based on a specific number of jobs created.  The amount of rebate varies according to the type and number of jobs.  If no jobs are created, the tax rebate goes away.  In some cases, the owner pays the tax and then gets a refund.  A case-by-case approach allows for the results to be measured.

http://jacksonville.com/news/metro/2012-09-19/story/jacksonville-mayor-ramps-property-tax-rebates-compete-business-expansion

Since July 2011, the city has approved a total of nearly $7.5 million in property tax breaks.

Paul Crawford, acting director of the Office of Economic Development, said without the incentives, Jacksonville would gain neither the jobs nor the investment of businesses that would go to other cities. The deals with the property tax breaks are expected to create 535 new, high-wage jobs.

That comes to roughly $14K per job, with performance guarantees built-in.

Contrast that to the Mobility Fee moratorium, which has already issued building permits resulting in $2,671,577 of lost infrastructure funding.  If all of the waivers that were approved lead to building permits, we are looking at a total of $15,050,995 in lost funding.  There is no way to measure the job creating success of this endeavor.

Retail jobs are support jobs.  They are not a driving economic force in a city (unless we become a tourist destination for shopping).  The other issue with retail jobs is that they typically come at the expense of another retail business or shopping center.  When looking at retail job creation, we must look at the net gain (or decrease) for a region.  The jobs at a new Wal-mart may simply be coming at the expense of a closing K-mart.

I have no problem with Wal-mart opening a store at K-mart's expense (that is a free market doing its thing).  I do have a problem with it if public money was used to make the Wal-mart a viable project.

The new jobs we are trying to create and encourage need to be those that result in a net gain to our local economy.  Manufacturing jobs, banking jobs, tech jobs fill this role.  Higher education fits into this category.  Construction and service jobs, do not (they come as a result of the other jobs).

And this opinion is coming from someone in the construction industry.  We took a huge hit during the recession and I would prefer that Jacksonville focus efforts on creating a sustainable economy that can withstand future recessions a little better.  It may mean a little less income during the boom times, which I am willing to trade for a little more security during the rough times.

[simms3]

If the answer to growth is relaxing one's barriers to entry, can someone please explain to me why every other growing city or every coastal gateway market is doing the opposite?  Even the TX cities are starting to realize that their "only" negative right now is their low barrier to entry and they are taking steps to increase them.  Boston doesn't have Houston growth, but it has impossible barriers to entry and excellent fundamentals making it just as attractive to new investment.

People in Jacksonville have their heads up each other's asses.

[simms3]

But Doug,

Do you think companies are enticed to move or expand here because they'll receive a $100,000/year property tax abatement?  I would think they move to Jacksonville for other reasons.  Similarly, it's more expensive to do business in NYC or Boston, but I can guarantee you every company wants to have a large presence in each city.

The way to grow your economy is not simply to buy deals or rely on warmer weather, though each can help, but to provide the fundamentals in which a company can grow and be profitable in that environment.

[dougskiles]

I agree with you simms3.  I am pointing out the difference.  If we are going to play the game of incentives, I much prefer that we do so in ways that are measurable.

If I had my way, we would invest our resources entirely into making Jacksonville a better place to live and work (better schools, better infrastructure, parks, etc.)

When we make things cheap, we get cheap in return.  Expecting more, gets us more.  It takes guts and good negotiating skills, and it can be done.

[JeffreyS]

Doug.

[tufsu1]

also, there is apparently some major controversy with the freeway removal now in OKC...I read an article the other day where some groups are pushing for it to be rebuilt....they cite the increased traffic generated by all the new downtown activity.

[thelakelander]

Confusing considering I-40 was relocated a few blocks south.

[vicupstate]

 

I agree with you simms3.  I am pointing out the difference.  If we are going to play the game of incentives, I much prefer that we do so in ways that are measurable.

If I had my way, we would invest our resources entirely into making Jacksonville a better place to live and work (better schools, better infrastructure, parks, etc.)

When we make things cheap, we get cheap in return.  Expecting more, gets us more.  It takes guts and good negotiating skills, and it can be done.

Well said.  You can't cut taxes and wages enough to compete with 3rd World countries or even podunk counties on the prairie.

You have to be able to offer something they can't, like a high quality of life and an educated workforce with higher skills.  Jax has yet to learn that lesson and it will be in a race to the bottom, until it changes course.   

[cityimrov]

You have to be able to offer something they can't, like a high quality of life and an educated workforce with higher skills.  Jax has yet to learn that lesson and it will be in a race to the bottom, until it changes course.   

Or you can pay for them to come here.   With enough money, Jacksonville can have bring lots of companies come here.  However, paying people to come here is just like buying friends.  They'll be happy to be your friend as long as you have the money to pay them.