In February, I met with Congressman Howard “Buck” McKeon to share my ideas for moving our city forward in California’s tough economic climate. The latest data on the health of our state’s business climate tells a sad tale:
- CA ranks #38 out of 50 – Best States for Business Survey (Forbes 2009)
- CA ranks #49 out of 50 – Small Bus & Entrepreneurship Council Survival Index (2009)
California’s terrible economic climate has put Santa Clarita into fierce competition with other states and cities seeking to attract strong companies. Whether or not you support government stimulus programs, they are here to stay for awhile and our city needs to grab hold of what we can to make sure companies –and jobs– stay here.
I am a strong supporter of the Santa Clarita Economic Development Corporation (SCVEDC) and believe it to be the key to attracting strong anchor companies to our valley. In fact, we’re about five years late in starting it which makes success in the endeavor much more difficult. With an anemic .90:1 jobs/housing ratio, the incumbent council leadership has failed to promote a strategic plan and vision for our city and now we’re scrambling.
A chief concern to me is that small business –literally 70% of our local economy– has been all but forgotten, even after three years of a down economy. A few companies and big box stores are benefitting from economic development efforts but we have not seen the urgency needed from this council to help our Chamber drive key programs to this critical segment.
Here are a few examples:
- 21-Point Economic Development Plan touts $5 million impact for our economy – where is the plan for small business?
- The plan was created without a survey to understand small business need – how?
- We have no method of communicating or “tying in” small business to key incentive programs or many available public services. Public programs must go beyond Chamber and if done right, can increase visibility and relevance of Chamber to more businesses.
- Enterprise Zone – 99% of our businesses qualify, yet only 2% are using it – after three years! Communication to small business and lobbying our state to relax EZ qualification standards is the key – has any incumbents stepped forward for either?
- $100K Community Development Block Grant to Newhall business provided a false economy – this is not a plan to sustain businesses here or anywhere else.
The Chamber’s reasoning for endorsing the incumbents is that they support programs when asked. But voting YES is following, not leading. The council quibbled over $200K seed money to fund the SCVEDC with little understanding that the city’s failed leadership is the primary reason why we don’t have more anchor companies here already.
Where are the incumbents after 3 years of a tough economy? We are the 4th largest city in Los Angeles County and it is time we get a real dialog and a real plan for our business community – not just big business, ALL business. We need more than three votes – we need leadership!
Can Anything Really Be Done?
I received more than 320 responses to a survey my campaign conducted to better understand our local business climate. I have since created the following Top 10 List that includes just a few ideas that our city could implement at little cost to do something to keep small business working. I want leadership that drives solutions – #1 priority should be “conduct a survey.”
- Revamp ThinkSCV. City has invested lots of money in banners and related advertising but failed to involve small business or communicate its value and benefit. Electronic campaign has also been poorly executed. Fix the problem and maximize the investment.
- Review City’s Requirement to “Buy Local” – 84% of survey respondents state that the city is failing in its efforts to “Buy Local”– purchasing programs should be reviewed and expanded to better support local opportunities.
- City-sponsored expo that puts local manufacturers and distributors together with local purchasing agents.
- More Outsourcing. City Hall is holding on to services that should be bid out locally!
- Nonprofit/Civic events – Create/expand communication network with vendors and restaurants interested in participating in major events around our city – push this beyond Chamber and use the opportunity to increase Chambers exposure to more business.
- Assist in sourcing Enterprise Zone-qualified employees. WorkSource and COC can identify EZ-qualified employees offering a win-win for both employers and employees.
- Central Park and similar events – 1,000s of people attend and vendors of all kinds should be involved in the opportunity. We have virtually none.
- American Recovery & Reinvestment Act. Grant application should involve public to determine priorities. This eliminates perceived favoritism in certain areas or projects. Also, grant monies must go to business –not government– jobs.
- Business registration. Our city or the SCVEDC needs to begin a simple registry to identify business type, employee count, SIC, etc. with an assurance that there will be no new local taxes to join. Without this, we have no trend analysis and no communication.
- Commercial Real Estate – As the SCVEDC begins its push to attract outside companies, local commercial RE brokers and managers should be networked in.
Great people are involved in our SCVEDC and Chamber programs but success will not be had on the backs of volunteers. The city also has an obligation to the 85-90% of businesses that aren’t Chamber members – with good leadership in both City and Chamber offices, let’s use this opportunity to increase Chamber’s relevance to our small business community.
Now is the time to get the conversation going. Let’s stop pretending that everything’s fine and we’re all doing a great job. Rhetoric won’t fix it – business needs help now.
I am very passionate about driving business in our city and the valley too. It is time to end our war with the county and unite on a real 20 year plan for growth. Representation and good process at City Hall are needed now to ensure our success.
