2006 CPEO Brownfields List Archive

From: "Bill Cocose" <wcocose@brownfields.com>
Date: 26 Oct 2006 14:09:38 -0000
Reply: cpeo-brownfields
Subject: Re: [CPEO-BIF] Subsidies
 
I would like to weigh in on this with an additional perspective and observation. Brownfield developers take pride in recognizing value that others don't see, and then bringing their skills to bear in realizing that value. Some of us like to raise the bar on that challenge, and take special joy in seeing the positive impact that we can make on a community by redeveloping the especially nasty and hopeless property that is like a cancer in a neighborhood.

This is particularly true with respect to orphaned and abandoned sites, some of which are stuck in Bankruptcy. These sites are typically so far upside down financially that any hope of break-even, much less a profit, is simply not possible. In these cases, a public-private partnership that includes subsidies and all of the economic development tools in the tool box is required just to start at ground zero.

However, community leaders need to step up and take control of a very critical component that helps cause this upside down state. Specifically, they need to quickly step in and re-assess the properties to reflect their true negative value. Instead, the properties just continue to accrue taxes and exorbitant interest at a ridiculously high value attributed when the property was once operating and of value. This impediment is one of the most difficult to remove, and using valuable subsidies for this is just wasteful and completely unnecessary.

Bill Cocose
Atwater Capital, LLC
561-997-8525


----- Original Message ----- From: "Robert Paterson" <rgfp@mail.utexas.edu>
To: <lsiegel@cpeo.org>; "'Brownfields Internet Forum'" <brownfields@list.cpeo.org>
Sent: Wednesday, October 25, 2006 6:39 PM
Subject: RE: [CPEO-BIF] Subsidies



Austin TX's Greater Chamber of Commerce commissioned an economic development
study back in 1995 asking how they could continue to grow their silicon
hills and maintain quality of life...the answer from the consultants was to
continue to pursue a "balanced sustainable development" approach...the high
tech sector wants a highly educated work force, a fantastic community that
offers its employees great schools, world class cultural entertainment and
the best outdoor scenic beauty and recreational opportunities--why, so its
easy to steal the best and the brightest talent from silicon valley and from
other high tech firms in the US, and keep em happy while in Austin...so
investing in the open space system was a priority, but also dealing with the
growing gap between the "haves" and the "have nots" was also noted -- since
they noted gang activity and other crime/social problems often stem from
lack of opportunity for all sectors of a community...in short, the
consultants concurred with Lenny's point, of course the corporations will
extract as much subsidy as they can along the way (and yes other locational
factors do come into play such as freight, hwy and air cargo access etc.,)


Cheers

Bob

Robert G. Paterson
Associate Professor
Co-Director, Center for Sustainable Development
1 University Station B7500
School of Architecture
The University of Texas
Austin TX 78712-1160
512-471-0734
Fax 512-471-0716
rgfp@mail.utexas.edu


Whatever befalls the earth Befalls the sons and daughters Of the earth. We did not weave the web of life; We are merely a strand in it. Whatever we do to the web. We do it to ourselves. -Chief Seattle (1788-1866) Native American (Suquamish leader)

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-----Original Message----- From: brownfields-bounces@list.cpeo.org [mailto:brownfields-bounces@list.cpeo.org] On Behalf Of Lenny Siegel Sent: Wednesday, October 25, 2006 12:10 PM To: Brownfields Internet Forum Subject: Re: [CPEO-BIF] Subsidies

I am not naive enough to believe that either developers or manufacturers
make location decisions based solely on cost-benefit calculations. Often
they seem to use proposed subsidies in one location to extract goodies
from other communities - where they intend to invest, in any case.

Corporate location is as much a political process as an economic
decision. Communities that wish to attract discretionary investment must
recognize that the overall image of their local environment is as
important as specific subsidies.

Back to my days writing about the semiconductor industry: I believed,
and I continue to believe, that the Portland, Oregon metropolitan area
attracted significant high-tech investments because it was perceived as
a place that prized its natural environment. In turn, that helped
companies attract the best and the brightest from a global job marketplace.


Lenny


Bruce-Sean Reshen wrote:
As always Lenny, you were ahead of your time.  The concept is sound,
though the mathematics become difficult.  Your concept assumes that
developers are able to evaluate and quantify such public benefits and
properly weigh them against the alternative of a direct subsidy which
they better understand and appreciate.

Bruce-Sean Reshen
p. 203-259-1850
c. 917-757-5925

-----Original Message-----
From: brownfields-bounces@list.cpeo.org
[mailto:brownfields-bounces@list.cpeo.org] On Behalf Of Lenny Siegel
Sent: Wednesday, October 25, 2006 12:23 PM
To: Brownfields Internet Forum
Subject: [CPEO-BIF] Subsidies

Long before I ever heard the word Brownfields, I worked with community
groups around the Southwestern U.S. challenging the way that their local

government were offering subsidies to high-tech companies to locate in
their communities.

We argued that it is possible to attract investment by investing public
resources in education, infrastructure, housing, and even environmental
protection. Companies that have a choice where to locate need those
investments, not only because they directly benefit, but because they
need to recruit employees from a global workforce, and those potential
employees look at the qualify of life in areas where they might move.

While direct funding or tax abatement may indeed be useful, it should be

viewed within the context of a full range of public investments designed

to promote economic development. The advantage of spending money on
education, infrastructure, housing, and even environmental protection is

that it benefits existing residents, too.

Lenny




--
Lenny Siegel
Director, Center for Public Environmental Oversight
c/o PSC, 278-A Hope St., Mountain View, CA 94041
Voice: 650/961-8918 or 650/969-1545
Fax: 650/961-8918
http://www.cpeo.org

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