In today's News & Record editorial, Pockets of poverty, we learn that last week Mayor Nancy Barakat Vaughan attended a meeting in Charlotte where she was informed that:
"William High of UNC-Chapel Hill’s Center for Urban and Regional Studies examined poverty rates, per-capita income and unemployment across the state and labeled 162 census tracts as “severely economically distressed.” Two-thirds of them are in urban areas. Ten of the 11 most severely distressed zones are in cities: the Leonard Avenue area in High Point, the Cumberland Street neighborhood in Greensboro, four tracts in Charlotte, three in Winston-Salem and even one in Raleigh."
The UNC CURS Report the N&R editorial refers to.
From the N&R editorial:
“I wish the legislature would partner with us on some of these issues besides economic development,” Greensboro Mayor Nancy Vaughan said Monday."
Nancy Vaughan displays her complete lack of understanding of what economic development really is. From Wikipedia:
"Economic development generally refers to the sustained, concerted actions of policy makers and communities that promote the standard of living and economic health of a specific area. Economic development can also be referred to as the quantitative and qualitative changes in the economy. Such actions can involve multiple areas including development of human capital, critical infrastructure, regional competitiveness, environmental sustainability, social inclusion, health, safety, literacy, and other initiatives. Economic development differs from economic growth. Whereas economic development is a policy intervention endeavor with aims of economic and social well-being of people, economic growth is a phenomenon of market productivity and rise in GDP. Consequently, as economist Amartya Sen points out: “economic growth is one aspect of the process of economic development"
As is evidenced by the study of Greensboro communities, Greensboro obviously hasn't met that definition. Nancy Vaughan thinks economic development is the same thing as real estate development:
"Real estate development, or property development, is a multifaceted business, encompassing activities that range from the renovation and re-lease of existing buildings to the purchase of raw land and the sale of improved land or parcels to others. Developers are the coordinators of the activities, converting ideas on paper into real property.[1] Real estate development is different from construction, although many developers also construct. Developer Louis Lesser drew the distinction in a 1963 New York Times article, "Developing is the key word. 'We don't build ourselves', Mr. Lesser stresses. 'We buy the land, finance the deal, and then we have the best builders build under bond at a fixed cost."
Had Mayor Vaughan have said, "I wish the legislature would partner with us on some of these issues besides real estate development." her statement might have been believable but as it stands she shows either a complete misunderstanding of the differences between economic development and real estate development or a complete disreguard for the facts.
Our state legislature is lead by real estate developers just as is the government of the City of Greensboro and like Greensboro government their agenda is real estate development first, economic development somewhere distant if at all. They talk about jobs but Greensboro remains the hub of the 2nd hungriest MSA (Metropolitan Statical Area) in these united states, has a poverty rate of over 21% and highest unemployment of any comparable city in North Carolina.
And all the while the Greensboro City Council keeps passing incentive packages.
From the study:
"More than 50 percent of children in both urban and rural dis-tressed tracts live below the poverty line."
But Nancy's children have never lived below the poverty line. Nancy's little girl is growing up in the most exclusive neighborhood in the entire state of North Carolina. These things aren't a problem for Nancy. The only words Nancy Vaughan has spoken to date concerning these problems are, pay attention now:
“I wish the legislature would partner with us on some of these issues besides economic development.”
And while the News & Record article mentioned the Cumberland Street neighborhood as being one of the most distressed neighborhoods in North Carolina, this map I lifted from the study shows all of Greensboro's distressed neighborhoods in red. Click on the image to enlarge.
Of course, having sat through Professor William High's presentation last week, Mayor Vaughan was already well aware of this so she continues with plans to construct a downtown performing arts center as if that is going to solve the problem. See Incentives In Greensboro: Part 23: GPAC As An Incentive Package.
On Thursday I meet with Andrew Scott of the City of Greensboro who is going to discuss with me the question I asked in Incentives In Greensboro Part 24: Setting The Record Straight: and again in Incentives In Greensboro: 26: How Is Greensboro Any Different?
"There are times when it is necessary to give incentives to private companies to provide the necessary infrastructure to grow the economy and provide services necessary to society that private industry might not have the capital to provide. Building a bigger tax base is not one of those necessities. As a matter of fact, the City of Greensboro is unable to provide any evidence that building a bigger tax base actually benefits the community overall. I challenge the Greensboro City Council and City Staff to show us proof that increasing Greensboro's tax base actually benefits the community overall."
I've warned Mr Scott that without documents to provide to my readers, he and his department, as well as the entire City of Greensboro approach to incentives will appear suspect. After all, not all of you can fit into that one conference room.
I apologise the answers are slow in coming. I keep asking the questions and posting the answers as quickly as they're made available. I could twist arms and threaten bodily harm in an effort to get answers more quickly but my friend and GPD Cheif Ken Miller has warned me that such tactics might not produce exactly the results I might want. Besides, Ken has plenty to do without my getting him all stirred up.
Also before I get another call from GPD Criminal Investigations Division, I really was kidding about the pitchforks and torches. Just come to the City Council meeting tonight with angry faces and signs that read "No PAC." I think they'll know what you mean.
And if that doesn't work we'll start the City Council recall elections.
Please continue reading Incentives In Greensboro: Part 31: A Different Light
