Q+A with Abhinav Alakshendra, after a VCARD presentation in Palm Coast
How much should a city like Palm Coast spend on economic development, to diversify its tax base? What is a long-term strategy for making a walkable downtown? How would the next generation be impacted by development, or lack of it?
To answer those questions, I spoke with Abhinav Alakshendra, who was one of the guest speakers at a recent joint meeting of the Flagler County and Volusia County Associations for Responsible Development, hosted March 13, at the Hilton Garden Inn. Alakshendra is the director for the Center for International Design and Planning, at the University of Florida.
To prepare for his remarks about Palm Coast, Alakshendra analyzed economic development efforts of cities around the United States with populations above 100,000 and budgets of over $250 million.
PALM COAST HAS AN ECONOMIC DEVELOPMENT BUDGET OF ABOUT $300,000 ANNUALLY, OUT OF A $421 MILLION TOTAL BUDGET. WHAT’S YOUR REACTION TO THAT KIND OF A BUDGET FOR ECONOMIC DEVELOPMENT?
Very bluntly: I don't think Palm Coast is doing any favors to its future. For this size city, there should be at least 1% devoted to economic development. So, $4.2 million — and making sure there is a clear vision how that money is going to be spent.
They can take a baby step, but $300,000 is practically nothing. Let's start with a million. But over the next five years, make make sure that you know it reaches to that 1% threshold.
There are so many things an economic development unit can do, but they can't because of lack of money.
WHAT WOULD AN IDEAL ECONOMIC DEVELOPMENT BUDGET BE USED FOR? INCENTIVES TO LURE BUSINESSES TO THE CITY?
It could be anything. For example, Winter Garden decided to use their money to provide free Wi-Fi in the downtown. Now, that free Wi-Fi may have cost a lot of money, but if that is bringing more footfalls to the downtown and increasing the businesses revenue, it makes sense.
There is no one-size-fits all approach.
Palm Coast has a different problem: You don't have dense development downtown. But then, do you want that kind of development in the downtown? That is one question I think the city should be asking.
In my opinion, yes, you should have it, especially when you're growing. This is the time to get that kind of development. A dense downtown goes a long way.
HOW DO YOU INCENTIVIZE DENSER DEVELOPMENT IN, FOR EXAMPLE, PALM COAST TOWN CENTER?
If the city decides that, yes, we want a walkable downtown, we are talking about long-term spending.
For example, the city of Gainesville. Over the years in last 10-15 years, they have been investing. Now, there are some streets which are pedestrianized — for only pedestrians. They have blocked car access.
But in that case, they made sure that, you know, the roads are paved with red bricks. So, basically, it's inviting. You can't do it in one go. You don't have enough money to do that.
Another example: You can be an incubator. Workforce development. You want younger people also living here. Florida has an aging population, but at the same time, young people are going to only select cities.
So an economic development budget is not just for that capital investment or infrastructure investment.
HOW WOULD YOU BRING COMMERCIAL INVESTMENT TO PALM COAST?
You have to give some sort of incentive, but it has to be based on a strategy. What kind of commercial? There has to be a balance, and that's why an economic analysis is important. Do we need BJ’s and Sam's Club and Amazon Warehouse? These are also technically commercial, but in my vision, one is fine, but you don't want to become the warehouse district. It's not a sustainable growth strategy because the tax base is actually lower, and employment is also very low in those warehouses.
WHEN WE POST NEWS STORIES ON FACEBOOK, THEY ARE OFTEN SEEN THROUGH A LENS OF DEVELOPMENT, TYPICALLY NEGATIVE. MANY DON’T WANT THE CITY TO GROW.
You are competing with 267 cities in Florida. If you are not pro development, if you are going to block development, development will move to the next city.
MANY OF OUR RESIDENTS WOULD CHEER FOR THAT. THEY SEE THEIR UTILITY COSTS GOING UP, SALES TAX POTENTIALLY GOING UP, AND THEY FEEL THEY ARE STUCK PAYING FOR DEVELOPMENT.
I see development as something you are doing for the next generation. I believe this is not right to only be thinking about yourself, and your taxes going up.
Then what will happen? The next generation is not going to stay in this town. They are going to follow the development. So, what will happen 40 years from now? Do you want to make this a failing town or faded town? It will happen.
Because if you don't have those new amenities, don’t expect that someone who is 12 years old today, when he is 24, he will stick to this town. It's not going to happen. That is the biggest argument I make: that this is not necessarily only for you. This is for the next generation.
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