NC Media Watch

A quest for reason and accuracy in letters to the editor, guest editorials and other issues of interest to the citizens of Western Nevada County.

Tuesday, November 01, 2005

More on try, try, try again.

Brittany Retherford writes the GV Council wants citizen input on Grass Valley developments - Copy of study included, November 1, 2005
Economic and Fiscal Conditions Study for the City of Grass Valley
Less than 24 hours after the Grass Valley City Council voted to accept a weighty and somewhat controversial study on proposed area developments, the mayor called a second special meeting to talk about what that decision really means for residents who want to give feedback.


The study, called the “Economic and Feasibility Study,” takes a look at the viability of adding four new developments to the city, which could total 2,500 homes. It has been heavily-anticipated by residents, officials, and developers alike for almost two years. Some have seen the release of the study as a pivotal moment for these developments. For others, it has been viewed as merely a tool in the decision-making process.

We have written about his here and here, however the more I think about this “Economic Study” the more concerned I become. It appears the only economic question it tries to answers is: Is the annexation of the SDAs a good deal for the city? What about the local economy? What are the impacts on local businesses?

The study really does not look at the economic impact on the larger economy. For example the local construction industry contributes 17 percent to the local economy. Now, lets assume that the SDAs are approved and the developers bring in large construction companies from the Sacramento Valley. Construction firms that have a long term relationship with the developer, and build the homes, reducing the demand for individual homes in the county. Lets say that the Valley contractors have long term relations ships with valley construction material supplies and buy outside the community. Our local contractors and local developers buy from local suppliers according to the Annual Nevada County Indicator Report. (Copy here)

Without protection for our local contractors, we could see a major reduction in a major sector of our economy. Can we afford a 10 percent drop in our local economy? One option for the City is when they approve the SDAs they include a provision that 35 to 50 percent of the work be done by local contractors.

The study does not have a marketing component. It just assumes that all the building will be occupied in 2020. This should be a major concern for the Economic Resource Council. They will be under pressure to fill these buildings with thriving businesses. In a global market place, with expanding globalization, it might be wise for the City to look at the future market demand for local manufacturing facilities. Many of our local manufactures have moved to other states, or offshore. Others are under increasing regulator and labor pressure to seek lower cost locations. Also, Nevada City has existing pads waiting for new manufacturing facilities on the Tektronix property, next to the Grass Valley video manufacturing facility and headquarters. Were these vacant facilities factored in the need for manufacturing facilities?

This is getting too long. More on the SDA approval process latter.

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Blogger Thiruppathy Raja said...

Really well done for the blog.these are so sweet and pretty!

Local Contractors

Sun Aug 28, 11:29:00 PM PDT  

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