Localizing the Economy

 Questions

What criteria would you use to define the appropriate characteristics of a business seeking to locate in Petaluma?

How do you plan to support existing, locally-owned businesses in Petaluma?  What specifically do you intend to do to support local businesses in light of the projected loss of up to $41 million in revenue to local businesses as a result of recently approved retail/big box developments?

What revenue-generating approaches will you pursue, other than adding more big box retailers, to solve the City’s revenue problem?  If successful, what items, programs and services would you apply the new revenue to?

Background

Petaluma already has many big box stores, despite their dubious overall benefits to the community.

• Studies by independent economists show that big-box stores eliminate more retail jobs than they create.

• The tax benefits of big-box stores are negated by the cost of providing public services to these developments and  declining tax revenue from existing commercial districts.

• For every $100 they receive in revenue, locally owned businesses hire more local workers, purchase more goods and services from other local businesses, and contribute more to local charities than their big-box counterparts. When chains displace local businesses, it results in an overall loss of economic activity, not a gain.

• Big-box stores often displace numerous small and mid-sized stores, leaving fewer shopping options and less competition.

Five Myths About Big Box Retail

Impact of Big Box Stores on Jobs and Wages

 Impact of Big Box Stores on Taxes and Public Costs

Locally Owned vs. Chain:  The Local Premium

Key Studies on Big Box Retail and Independent Business

Mike Healy

What criteria would you use to define the appropriate characteristics of a business seeking to locate in Petaluma?
How do you plan to support existing, locally-owned businesses in Petaluma?  What specifically do you intend to do to support local businesses in light of the projected loss of up to $41 million in revenue to local businesses as a result of recently approved retail/big box developments?
What revenue-generating approaches will you pursue, other than adding more big box retailers, to solve the City’s revenue problem?  If successful, what items, programs and services would you apply the new revenue to?
The recently approved Target and Friedman’s centers represent the last of the new big boxes in Petaluma, in my opinion.  They do fill critical gaps identified in the City’s 2004 Retail Leakage Study and will serve to keep local sales tax dollars here to support vital services.  Petaluma’s downtown has long since evolved to compete with big box stores ten miles away, and having them closer should make little difference.  The City’s recent reduction in impact fees was an important step in making Petaluma more business friendly.  I support giving local voters the opportunity to enact a temporary sales tax to enhance vital services, including police, fire and street maintenance.

Alicia Kae Herries

What criteria would you use to define the appropriate characteristics of a business seeking to locate in Petaluma?
How do you plan to support existing, locally-owned businesses in Petaluma?  What specifically do you intend to do to support local businesses in light of the projected loss of up to $41 million in revenue to local businesses as a result of recently approved retail/big box developments?
What revenue-generating approaches will you pursue, other than adding more big box retailers, to solve the City’s revenue problem?  If successful, what items, programs and services would you apply the new revenue to?
I support existing businesses in Petaluma, and will work to attract new partnerships that complement these businesses.  As we move forward, I will promote growth opportunities in healthcare, high-tech and tourism sectors, which afford head of household wages, include benefits and encourage sound economic development.

Gabe Kearney

What criteria would you use to define the appropriate characteristics of a business seeking to locate in Petaluma?
How do you plan to support existing, locally-owned businesses in Petaluma?  What specifically do you intend to do to support local businesses in light of the projected loss of up to $41 million in revenue to local businesses as a result of recently approved retail/big box developments?
What revenue-generating approaches will you pursue, other than adding more big box retailers, to solve the City’s revenue problem?  If successful, what items, programs and services would you apply the new revenue to?
We need to have a diversified workforce in our community. There is room for both small family owned businesses such as the Petaluma Creamery and large family owned businesses like Friedman Brothers to thrive. Both bring different revenue streams into the local economy. Additionally, we need to have a good mix of employers from different fields as mentioned in the Strategic Economic Development plan so we do not see a large loss of workers and suffer through another economic downturn similar to the one that was experienced by our community after the telecom bubble burst in the early 2000’s.

Kathy Miller

 What criteria would you use to define the appropriate characteristics of a business seeking to locate in Petaluma?
As stated above, I would like to see more businesses with head of household type jobs come to Petaluma.  However, the City Council does not have the authority to preclude businesses from coming to Petaluma that do not meet certain criteria as long as those businesses abide by the laws governing our community.

How do you plan to support existing, locally-owned businesses in Petaluma?  What specifically do you intend to do to support local businesses in light of the projected loss of up to $41 million in revenue to local businesses as a result of recently approved retail/big box developments?
The development with the Target and the development with Friedman’s are probably the last large mixed-use developments that will occur in Petaluma.  After these developments are completed, Petaluma will see mostly infill development and redevelopment.  Target and Friedman’s will expand our local tax base and were identified as needed by Petaluma’s Retail Leakage Study.  I have always shopped locally and will continue to do so.  However, I also find myself in Rohnert Park at Target and Home Depot.  I am looking forward to spending more of my money in Petaluma.

What revenue-generating approaches will you pursue, other than adding more big box retailers, to solve the City’s revenue problem?  If successful, what items, programs and services would you apply the new revenue to?
I would try to attract head of household jobs and I am a strong advocate for the passage of Measure X, which will bring increased user fees and tourism money to Petaluma.  I would also consider, if supported by the voters, a special tax for street maintenance and repair and public safety.

Tiffany Renée

What criteria would you use to define the appropriate characteristics of a business seeking to locate in Petaluma?
Projects are a benefit to the community and to increasing city revenue without placing an undue burden on existing infrastructure or devaluing existing infrastructure beyond the revenue that they provide for their impacts.

How do you plan to support existing, locally-owned businesses in Petaluma? What specifically do you intend to do to support local businesses in light of the projected loss of up to $41 million in revenue to local businesses as a result of recently approved retail/big box developments?
Local retail businesses will not be able to compete with national retailers. Local retail stores cannot compete with national pricing schemes that big-box retailers access. So, we will need to focus on new kinds of niches that compliment our visitors program and with new downtown development. With the amount of transit-oriented development we are planning surrounding the SMART station, we will have a built-in base for neighborhood-serving businesses for our walkable downtown. Additionally, by creating more service-oriented business we can further assist in recovering the loss of recirculating dollars that big-box vacuums and sends to their headquarters.

What revenue-generating approaches will you pursue, other than adding more big box retailers, to solve the City’s revenue problem? If successful, what items, programs and services would you apply the new revenue to?
The Go Local program, Petaluma Downtown Association and the Aqus Business Network are programs that provide local business support and targeted marketing efforts. By increasing hotels we can draw more visitors and more revenue to Petaluma through the transient occupancy tax flow into the general fund. As an advocate for the Economic Development Strategy and a local business participant, I was successful in making this a priority and encouraging the hire of an Economic Development manager to implement our strategy. We need to continue setting priorities from the Strategy, including maintaining a supportive website and programs.

Jason Davies

What criteria would you use to define the appropriate characteristics of a business seeking to locate in Petaluma?
We have an excellent strategic economic plan that describes the types of businesses Petaluma should be helping to retain, expand, and attract.  I support that plan. Essentially, I would work to ensure we foster businesses that accent our strengths and won’t undermine our quality of life.  While we need a diverse economy so we aren’t overly reliant on one segment, I would focus particularly on the three sectors highlighted in our strategic economic place as the biggest revenue generators and offering the highest paying jobs – clean and green tech and diversified manufacturing, specialty food and beverage processing, and health and wellness.

How do you plan to support existing, locally-owned businesses in Petaluma? What specifically do you intend to do to support local businesses in light of the projected loss of up to $41 million in revenue to local businesses as a result of recently approved retail/big box developments?
With several new retail centers already approved, we need leadership that can work proactively to ensure strong tenancy in older centers to minimize, and hopefully avoid, blight. As well, we need to minimize the impacts on our downtown through a concerted effort to drive customers there. More can be done to increase tourism as well as encouraging local shopping in our historic district. I would engage more with the Petaluma Vistitor’s Center and Downtown Association as well as Go Local to further encourage marketing programs aimed at drawing more business downtown. While I do agree that in some areas our historic downtown offers unique products, it’s certainly true that some will be impacted. One way to minimize this would be to develop better tools to help our community better identify where they can find products downtown without assuming the need to shop elsewhere.  I believe we can improve our tech infrastructure to help guide shoppers accordingly and have already been assisting with some of the efforts as Chair of the Technology Advisory Committee.

What revenue-generating approaches will you pursue, other than adding more big box retailers, to solve the City’s revenue problem? If successful, what items, programs and services would you apply the new revenue to?
As I’ve answered in other questionnaires and forums, we cannot rely on retail alone to solve our economic challenges. The face of retail is changing dramatically and while many will shop at our new centers, for others, the ease of online shopping will continue to cause some leakage to our local businesses in certain areas. What we need to focus on is bringing more businesses to fill up our 30% vacancies in office parks with high paying jobs that feed back into our community. As well, I would look at ways to better commoditize city assets such as the Fairgrounds and our treated wastewater that we are currently paying to be used for irrigation – we should be selling this at auction. We need to better capitalize on our tourist potential and I’m pleased to see progress going forward on a public boat rental center that can help inspire overnight stays that can feed into our local businesses. I would also look at the potential for revenue increases if the public can support that. I think we need to work more closely with those who have been previously opposed to increasing the hotel tax (transient occupancy tax) – ours is lower than surrounding communities and the impact to locals is relatively low. There is benefit in generating additional revenues that can be used for greater marketing and I would hope that we can work with companies like the Sheraton and KOA to see whether there can be support of increasing this. Without their support, it would not be worth pursuing. We can also work to bring more infrastructure around the Central Specific Plan as I believe the SMART rail will be a catalyst for Transit Oriented Development that can be potential grant funding. I would also consider extending the garbage contract if we can get more impact fees without a cost to the rate payer – though I am always mindful of the concern around no-bid contracts.
http://www.petaluma360.com/article/20120919/COMMUNITY/120919638/1421/COMMUNITY0108?Title=Jason-Davies