It’s easy yet intellectually dishonest to take two different real estate development types, do a 6th grade-level, basic mathematical comparison on one metric--ad valorem property taxes paid-- and then suddenly exclaim “point-proven, issue settled residential development is BETTER than Commercial!”
To take such a firm-fixed position on such a large and complex subject (real estate development and the public-sector) based upon one data point is ridiculously naïve.
First and foremost: Because we know the free market system works, the private-sector should always take the lead in development of the lion’s share of residential and commercial development within an economy. The government (public-sector), on the other hand, should enact policies and ordinances that foster an environment conducive to private-sector development of most housing, commercial facilities, and other development that enriches a community (e.g. shopping malls, restaurants, theme parks, golf courses, office buildings, strip centers, etc.)
Of course, there are circumstances where the local government must purchase and develop properties for the good of the citizens and to fill a market niche for which the private sector has no profit incentive. (Schools, Fire Stations, Hospitals, libraries, Courthouses, Jails, etc.).
Then there are cross-overs between the public and private-sectors: for-profit hospitals, for-profit schools, public-private ventures, contracted-services, out-sourced services, off-shoring, nonprofit- provisioning and not-for-profit service providers. The lines become blurry on some areas between what the public and private sectors do in some economies.
That is a fact.
There are numerous other examples that could be given.
And regardless of how one feels about either low-cost publicly-subsidized housing or public-sector economic development---from a philosophical, ideological perspective---there are already numerous federal, state, and local laws and ordinances that encourage both of these hybrids.
Most importantly for this discussion are the publicly funded economic development projects.
Along with Infrastructure and Public Safety--Economic Development is a vitally important government function—no matter who says otherwise. Escambia County voters recently approved a renewal of the local option sales tax of which 15% can be utilized for economic development—and this is a good thing! The game has changed nationwide-and communities are now engaged in a pitched battle for jobs.
States and communities have put together strategies to compete, and there are winners and losers—as in life.
Escambia County has had several big victories in the competition to import jobs and revenue to our economy from outside of our area: Navy Federal Credit Union is building a massive campus here that will culminate in 10,000 jobs by 2026 and an economic impact to our region of $3.4 Billion yearly--- per reporting by the PNJ. ST Engineering Aerospace just completed a massive Maintenance, Repair, and Overhaul (MRO) Hangar at the Pensacola Airport, they’re bringing 400 jobs here and they’ve just received a $56 Million Dollar grant from Triumph Gulf Coast to build 3 more MRO hangars and add an additional 1300 jobs!
None of these wins occur without diligent effort and incentive packages from the public-sector.
Incentives drive the decision making. Incentives bring corporate relocations, manufacturing firms, and jobs.
Incentives were the deciding factor in NFCU’s move to Pensacola according to NFCU Senior Vice President Preben Ebbeson as reported in the January 2003 Site Selection magazine.
So, when we bring the discussion back locally to the subject of what to do with the 636 acre OLF 8 site in Beulah that Escambia County will soon acquire, to achieve the highest and best use for this property, we must be sophisticated and intelligent. We must be deliberative and we must listen to the
