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Sunday, September 30, 2012

Mesquite council out-of-touch on sports complex issue

From Mike vs. Mike in the Mesquite Nevada Number One Online News Source Mesquite Citizen Journal:

The Mesquite City Council still thinks the proposed indoor complex is a good idea but voted unanimously that it is too expensive for the city to construct at this time. It's not a good idea since it does little to create jobs and increase the flow of money in the community. Those are the two basic elements of any economic redevelopment initiative.

You can't just build anything that comes to mind and think it will stimulate the economy. Both business and government people know that an investment must return a profit that exceeds what would be earned if the money was invested in low risk stocks, bonds or Treasuries.
The idea seems to be that visitors will come to town and spend. The truth is that there is little to spend on except in the casinos. And casinos do not stimulate economic growth for reasons that I have written about Ad nauseam.

For a community, any investment must go beyond business profits. Any investment must stimulate the flow of money in the community. This is done, for example, when a retail business or government purchases wholesale products from another business in the community.
Another example, is the hospital which meets the demands of the retiree community, receives income primarily from Medicare, Medicaid, or insurance premiums and pays high wages for professional personnel who then have disposable income to spend in the community if the community offered high-quality goods or services they desire.

The hospital example highlights a local problem. Simply put, the community lacks anything that people with disposable income wish to purchase. Instead they spend in Las Vegas, St. George, or any number of cities north, south, east and west of the city.

There is one example of a local businessman that deserves mention. He is Matthew John. He, and his wife, are individuals who have taken abandoned restaurants and turned them around. He took over a dead diner and turned it into Peggy Sue's. He took over a closed Mexican restaurant and turned it into Cucina Italiana. John also manages the Redd and Grill rooms at the Oasis golf course. Most restaurants purchase their food supplies locally and, in case of the Cucina Italiana, a lot of money was spent creating a welcoming ambiance.

Don Muse, a local advocate of downtown redevelopment also has the right ideas when it comes to investments. Muse, and others, argue that downtown needs to be redeveloped in a way that advances the cultural heritage of the geographic area. Done correctly this would draw visitors, and small business ventures that increase the flow of money in the community.

The Mayor and City Council should stop spending time, energy and money on pseudo-economics and task the City Manager to develop a marketable master plan for downtown redevelopment based upon advancing the cultural heritage of the community.

Mesquite Nevada Number One Online News Source Mesquite Citizen Journal:

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