Steve Mensing, Editor
♦ An innate wisdom exists in the value of utilizing private developers money rather than “public money” to foot the bill for economic development projects. It has long been acknowledged by savvy persons involved in economic development that private developers money is a barometer for the actual interest in an economic development project and its potential profitability. If no private money is forthcoming, its almost certain that an economic development project has no real wheels under it and is a high-risk gamble.
When municipal and state governments are the only ones coughing up money for an economic development project, instead of private developers, alarm bells are sounding. Private developers only step forward when they see the solid probability of a profit. They seldom, if ever, get suckered into “build it and they will come” projects. If they get involved in gambles that don’t pay off, their employment shelf-life is short-lived.
How many times do taxpayers get soaked when local governments are the only ones stepping up to plate for economic development projects? Recall all your county or municipalities “build it and they will come” fiascos? Perhaps your area was nailed for a publically funded baseball park? A government funded industrial park that sat empty for nearly a decade until a private developer stepped up and infused the project with private money. Oh and that municipal fiber optic network that failed to turn a profit and threatens to junk bond a city?
