Thursday, April 7, 2011

Ken Benton's Thoughts On The Revitalization and Cleanup Of Harlingen's Original Townsite!

MR. KEN BENTON
photo courtesy of Valley Morning Star
Politics, hubris and a lack of leadership
Or I could call it, the Reese Building and its role in Harlingen’s Original Townsite revitalization. How politics and stupidity screwed everything up. I suppose it matters not; it is what it is and Harlingen continues to be a blighted, poverty stricken enigma, long past its prime and far below what it could and should be. It remains a city divided along ethnic and in some cases class lines with so much unmet potential being held back from reaching its potential l by all sides.
The Reese fight is a case in point. With the addition of the 380 grant and the $ 250,000 illegally granted from the 4A EDC, we have a rightly angered and frustrated group crying foul over the favoritism going to one of the mayor’s cronies. A crony who apparently has traded her support for what some call unethical and discriminatory financial manipulation at the airport, related to some unholy venture called MMA Air wing in order to cash in on a treasure trove of incentives for her own development.
For the record, I believe that incenting someone to buy and renovate the Reese was good and necessary. Otherwise the risk was and is too great and the probability of failure too high. Even with the incentives the condos are going to be a challenge to sale in this market at the $ 300,000 price tag. The down town needs middle and upscale housing if it is to ever attract new investment and the kinds of shops, stores and venues which have the economic impact and sustainable job and quality of life enhancement everyone except idiots want to see.
The problem is the way things are being done, with no plan or vision, and the absolute disregard for the law and policy as relates to proper 4A and 4B economic development.
As was the case with Bass Pro, the 4A EDC has spent or committed funds for a project, whether we agree with that project or not, beyond its legal authority as defined by the state laws related to sales tax funds and their use for economic development. The proper and legal role for the 4A is “primary jobs” essentially industry, whether manufacturing, R & D, health care related jobs, etc. Primary jobs are those which drive or are the economic base. Retail does not drive as they say; retail is driven; driven by consumer purchases, those consumers employed in primary jobs.
In other words the basic jobs that provide wages to support the purchase of a home, saving and investment, and discretionary spending are all tied to primary jobs which the 4A iEDC is charged with attracting through an incentive plan developed around a Comprehensive Plan which directs the type of industry(s) the community wishes to attract. For example, Austin went after high tech, “clean” industry and developed semiconductors, R & D and other high tech, high skill, high wage primary jobs which attracted young, educated people which help the construction and retail sectors grow as well.
The 4B EDC has the same basic authority as the 4A so it too can be used to attract or incent basic industries but it also has greater flexibility. It can be used for other non-basic industries purposes so long as those purposes are tied to economic development and job creation. So you ask, “How is quality of life tied to economic development?” According to the International Economic Development Council “Businesses migrate to areas where the quality of life matches the group of employees that they are trying to attract. Many areas are trying to attain a mix of urban and rural to help foster new economy businesses and workforce. Urban lifestyles cater for young professionals and start-up businesses. Rural/suburban lifestyles cater to a family-orientated workforce.” It goes on to define quality of life as follows:
“Quality of Life is the economic well-being, life style, and environment that an area offers. Improving the quality of life is the ultimate aim of economic development programs and initiatives. A balance has to be maintained between encouraging the growth of the local economy, while limiting impacts upon the quality of life. In this post-industrial new economy people are increasingly seeking better quality of life, including:
  • Well-paid jobs
  • Quality education / life-long learning
  • Medical facilities
  • Quality and affordable housing
  • Low pollution and environmental damage
  • Public amenities
  • Low crime
  • Recreation, entertainment, and intellectual stimuli
  • Low cost of living / low taxation
  • Aesthetic build and natural environment”
So the point of this exercise to appeal to the combatants in our current leadership and its supporters to rethink their actions in view of what is it we are or should be trying to achieve. The old guard and insiders need to stop with the games and “us only” way of doing business or they will increasingly face ethics and other challenges which continue to embarrass the community and will inevitably result in some one being dis barred or going to jail or both. The agents of change need to better understand business and economic development and its proper role.
Lastly we need to develop a real comprehensive plan to direct the use of our incentive programs. The 4b is the proper place to review, prioritize and fund one major project: the revitalization and cleanup of our original townsite. That in itself will include 100’s of individual projects and require funds beyond our local capacity. It will require effective marketing of the end vision so that businesses, local, regional, national or even international can be aware of the things here brewing which will help to attract private investment. And while I believe Harlingen needs to focus its efforts for at least the next 10 years on implementing such a plan, the 4A cannot go to sleep. We need to also focus on attracting sustainable growth in business and income growth so that local consumers have the education and disposable incomes to support the book store we would love to see downtown where are now located centers of activity which attract only the very poor.  

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