Slow Growth, the Environment, Chain Stores, and Economics
Is Bill McKibbon correct when he argues in his new book, Deep Economy: The Wealth of Communities and the Durable Future, that the world doesn't have enough natural resources to sustain endless economic growth? He is certainly "challenging the prevailing wisdom that the goal of economies should be unlimited growth." The reason I bring this up is because Ojai is grappling with idea of limiting formula business and I see it relating directly to our long history in Ojai of slow growth and our concern for the environment. Chain stores are an environmental concern. Chain stores relate directly to slow growth.. Come tell the joint Planning Commission/City Council meeting on Wednesday, September 19 what you think. It starts at 7:30pm at Ojai City Hall.
The business person will have concerns about economics and growth and limiting a certain type of business. To that person I suggest reading some of the studies and other articles done on the topic. While there are at least a dozen books on the topic, most of us do not have the time to read all the books. Therefore, I have listed two recent studies and two brief articles on the topic.
San Francisco Retail Diversity Study
This three-part study, released in May 2007, calculates the market share of independents and chains in several categories: book, sporting goods, and toy stores, and casual dining restaurants. The study's second section analyzes the impact on San Francisco's economy of shopping at locally owned businesses versus chains. The final -- and perhaps most important -- part examines the impact on the city's economy of a mere 10% shift in resident spending between chains and local businesses and vice versa, quantified in terms of added revenue and jobs to the community. While the numbers are specific to the San Francisco area, a reasonable "translation" can be inferred.
Andersonville Study of Retail Economics
This report, released on October 20, 2004, extends the study done in Austin, Texas in 2003. The study compares 10 independent businesses and 10 chains in retail, restaurant and service sectors. The results further corroborate the local economic benefit of independent businesses, demonstrating that independents generate about 3 times the local economic activity as chains. Further, the researchers make the case for community governments to create policy to protect their independent businesses.
American Independent Business Alliance. A brief article on the "Benefits of Doing Business Locally."
Mainstreet News The Monthly Journal of the National Trust's National Mainstreet Center . Article from a 2004 newsletter on "Protecting Locally Owned Retail: Planning tools for curbing chains and nurturing homegrown businesses." by Stacy Mitchell
I hope to see you Wednesday at City Hall.
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Comments (9)
Thanks, Kenley and Leslie. However this turns out, you've done a great service to this community.
Comment #1 Posted by: Dennis Leary | September 16, 2007 05:52 PM
Kenley - have you submitted copies of these studies to the council formally to be made part of the record? I think you should.
Comment #2 Posted by: CFO | September 17, 2007 11:16 AM
Yes, all this material has been submitted to both the Planning Commission and the City Council. I have also been told that some copies will be available to the public. It should be in the public record.
Comment #3 Posted by: Kenley | September 17, 2007 12:23 PM
Thank you Kenley and Leslie. I appreciate your patience and perseverance in trying to safeguard the character that makes Ojai unique. No matter what the future brings, you both have gone well beyond the call of duty.
Comment #4 Posted by: Mike DiDj | September 17, 2007 02:35 PM
we need a Dairy Queen!
Comment #5 Posted by: evan the great | September 17, 2007 06:44 PM
How about a Bob's Big Boy !
Comment #6 Posted by: Robert | September 17, 2007 07:42 PM
Hi Robert. Hi Evan.
Thanks for joining the conversation. While I do have some fond memories of both Bob's and Dairy Queen, both memories are from the city of strip malls...Fresno. It is my home town, but I don't really want to see those elements in Ojai. I welcome criticism and discussion, but it would be good to have a little more than one-liners. What do you think?
Comment #7 Posted by: Kenley | September 17, 2007 09:28 PM
Here's a first draft of what I'll say Wednesday night:
"The issue is simple. You either follow Ojai's General Plan, constitution and will of the people or you cave in to commercial property owners. You either follow the signers of the citizen initiative, the majority of the people who have spoken here, including the younger Cluff, the manager of the Ojai Valley Inn, 70% of business owners polled by the Chamber and the first version of its president, all who want a small town atmosphere; or you cave in to a handful of fearful commercial property owners.
"They are using scare tactics. The elder Cluff worries that he won't be able to recover his investment by selling to big chains like Mariott. Polito worries because the banks aren't sure anymore about that loan they promised. And the insurance companies suddenly see additional risk with an ordinance looming. This is intimidation bullroar.
"You are property owners yourselves and members of the stockholder class. You think investors have the money. Wrong. They use other people's money, scammed from the lower classes and laundered by the banks. Read Kenley's research if you don't believe chains suck money out of the community which is three times richer without them.
"What about the scare tactic of empty store fronts? Lower the rents, license fees and taxes and they will be filled with local entrepeneurs. You feel sorry for big property investors. What about the thousands of people who have already left Ojai because of high rents and real estate? The investors and bankers are driving this speculative bubble. When it busts, the chains will be long gone except to buy up property at fire sale prices when it falls over the Cluff.
"I gave the Council my draft ordinance at their last meeting. If you want to preserve Ojai, it's easy to write an ordinance, better than the infamous HCD. I did it in a day, for free. I'll leave a couple copies here for the planning commission."
_________________________
I'll probably leave after the public comments. I just can't take much more hot air blowing over the bullshit.
Did I miss any important points? I can't say much in three minutes which is just as well when no one is listening anyway.
Love, Dennis
Comment #8 Posted by: Dennis Leary | September 18, 2007 02:05 AM
Kenley and Leslie, you are absolute Saints to be doing all this work! I'm going to nominate you both for Citizens of the Year! The book list is great. I have several titles in my home library. When I was on the council I bought the City a copy of Better, Not Bigger, by Eben Fodor, who I had dinner with when I visited bicycle-friendly Eugene, Oregon, where he lives.
Comment #9 Posted by: Suza | September 18, 2007 11:43 PM