A GoToby.com reader comments on a recent Wall Street Journal article.
October 29, 2007 – Palm Coast, FL – A recent headline in the Wall Street Journal asked, “Is Florida Over?” The article makes a case that our state’s population growth has slowed to a crawl and that Florida may have actually begun to shrink. Retirees and working residents tell why they are moving to other places. It appears the quality of life and economic opportunities that have drawn so many of us here over the years no longer outweigh our high housing prices and property taxes, which shift the burden onto newer residents and businesses. While Florida’s high costs and tax inequities turn people away, other warm weather states, such as North Carolina, have been working to mold and market themselves as retirement and business friendly destinations.
The debate about Florida’s growth management system has been raging for years and there’s little doubt that a stagnant Florida comes as welcome news to some. Many of us hold strong beliefs and differing opinions. But everyone – from residents who want to close the door behind them to land developers with millions of dollars at stake – have always agreed on at least one thing; that population growth was inevitable. But what if this assumption is wrong and the Wall Street Journal has identified an emerging trend? Maybe we have been too busy amending the state constitution and “managing” our growth with more rules, regulations, and impact fees to notice that the line of investors at the doorway holding their development plans has dwindled. Has our unfair taxation system and difficult regulatory climate – now aggravated by the housing market downturn – grinded the Florida growth machine to a halt? Our latest debate about whether we should require voter referendums for growth management plan changes seems rather pointless if it turns out that there’s no growth to manage.
The State of Florida has been built on the notion that no matter the costs or hassles, the world will never stop clamoring to move here and build a home. Texas has oil. Kansas has wheat. And for decades Florida has had residential real estate. Since the end of World War II, retirees have fled the snowdrifts to build Florida homes and spend money they earned somewhere else. When this happens, the construction industries get an immediate boost and put thousands of people to work. Retail and service businesses follow the new rooftops. The initial influx of retiree dollars circulates and multiplies as working residents and businesses invest and create commerce and jobs. This economic cycle has been clicking along pretty well for decades.
So what happens if people stop moving here? Everyone who is here and being subsidized by the newcomers will have to pay more. Much more. And if we don’t want to pay, we will need to learn to live with lower government services – such as reduced police and fire protection. There will be no more impact fees collected to fund public parks and recreational facilities like golf courses, tennis courts, and soccer complexes. The traffic might be a bit better, but the stores, restaurants and businesses you were planning to drive to will not be there because the market will not support them.
I know what it means when a community loses population and new investment stops. My hometown in Northeast Ohio is a classic rustbelt city that has lost one third of its population and thousands of manufacturing jobs over the past 40 years. I’d guess that in their heyday, they took growth and prosperity as a given and never envisioned that the future might bring a shrinking tax base, boarded-up homes, unemployment, and crime.
One thing is for certain, my hometown today would not dream of chasing away new investment. Rather, they spend a disproportionate amount of the high taxes they collect to try and draw people and businesses back in. They now think more like North Carolina.
Jason Gambone is Vice President of NorthStar Development Services, Palm Coast, Florida.
Jason Gambone
What do you expect to hear from a developer? More uncontrolled growth and sprawl. Jason Gambone, former head of land development in Palm Coast, along with Dick Kelton and our City Council, have destroyed this once beautiful City. As far as he was concerned, everything was a win-win situation when it came to overdevelopment. He then forms his own development company and has the gaul to say development is good. Pure greed. He should go back to Ohio and rebuild his home town.
Kudo’s to Gambone
I agree with Mr. Gambone’s article. The public needs to wake up and realize capital moves very rapidly in the worldwide market. It does not usually stay in environments which are hostile towards business. Our public officials impose high taxes and fees to feed their growth and then wonder why companies do not choose to locate in their communities. The existing companies in an area begin to look for a friendlier environment in which to operate. Guess what folks, that will leave John Q. Public to pick up the tab. We don’t have a revenue problem, we have a spending problem with our government (at all levels).
All your eggs in one basket
Yes it’s time that our City fathers get VERY serious, they need to use every available resource to attract and keep new business. Palm Coast desperately needs to diversify not only the tax base but also the local economy.
For much to long now the city growth has depended on retirees and their money escaping the long Northern Winters, now that’s putting all your eggs in one basket, how wise is that?
It’s time to take this city in a new direction. by creating opportunity for sustainable growth, diversification and most of all quality employment opportunities.
Response to Glo
It’s interesting that you seem to have such a disdain for developers yet a love for this \”once beautiful city\” which was developed by guess what – a developer. I’m sure there are folks from the ITT days still around who would tell you they are disgusted by the monster government which has grown out of what amounts to a large master-planned community. Mr. Gambone has some great points which I have heard echoed by many trying to run a business (not just live as a retiree) in this community.