| toledo talk | Discussing the news and events in and around Lake Erie West |
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| northwest ohio & southeast michigan | coffee is for closers | 21-Aug-2008 2:25 P.M. |
Business-friendly scale - "Ohio fares poorly and Michigan fares well. In the latest rankings in the Small Business Survival Index published by the Small Business & Entrepreneurial Council, in Washington, Ohio was unchanged at 40th among the states and Michigan moved up a notch to fifth from sixth most "business-friendly" state."
"The index, compiled for 10 years, has 26 components, including taxes on income, sales, and property, as well as utility costs, crime rate, health-care regulations, and even the number of bureaucrats per 100 population (both Ohio and Michigan have about 5)."
"The index is to help state governments determine if they help or hinder small businesses, which collectively make up 99 percent of all businesses, employ about half of private-sector workers, and annually provide 60 to 80 percent of job growth."
"Local entrepreneurs and business owners say they're not surprised, given high utility costs, high taxes, and lots of other things wrong in Ohio. Still, they say they are expanding, making money, and coping."
"Michigan has been more aggressive in attracting business."
posted by jr to business at 12:08 A.M. EST (26 Comments)
Comments ...
Links:
Small Business & Entrepreneurial Council
2005 Small Business Survival Index
Small Business Survival Index 2005: State Rankings*
(Ranked from the Friendliest to the Least Friendly Policy Environments for Entrepreneurship)
1 South Dakota
2 Nevada
3 Wyoming
4 Washington
5 Michigan
6 Florida
7 Mississippi
8 Alabama
9 Indiana
10 Colorado
11 Texas
12 South Carolina
13 Virginia
14 Pennsylvania
15 Tennessee
16 Arkansas
17 Arizona
18 Missouri
19 Idaho
20 New Hampshire
21 Alaska
22 Georgia
23 Illinois
24 Delaware
25 Maryland
26 North Dakota
27 Wisconsin
28 Kentucky
29 Oklahoma
30 Utah
31 Kansas
32 Nebraska
33 New Mexico
34 West Virginia
35 Louisiana
36 Connecticut
37 Oregon
38 Montana
39 North Carolina
40 Ohio
41 Iowa
42 Massachusetts
43 Vermont
44 New York
45 New Jersey
46 Hawaii
47 Minnesota
48 Rhode Island
49 Maine
50 California
Ohio's border states all rank higher than Ohio.
posted by jr at 12:37 A.M. EST on Sun Nov 13, 2005 #
And I've said many times on here Toledo is about the most unfriendly place for small business in the state-but that's only been the case since about the late 70's on. Before that, it was great to have a small (LOCAL) business here.
posted by Foolkiller at 03:38 A.M. EST on Sun Nov 13, 2005 #
It's nearly impossible for the "Small Business Owner" to succeed...my gosh, one example and this is NOT what I would consider a small business...
Starbucks replacing Barry Bagels!!! Why???would something of such be suggested let alone considered!!! Barry's Bagels has been at Westgate forever...(my impression was NOT that Barry Bagels wanted to trade with Starbucks...what our government leaders vision was for Westgate...out with OLD in with the NEW...)
Taxes are high, tax abatements seem to go to INDUSTRY and MANUFACTURING from our city which to me says White Collar Business NOT WELCOME in Toledo...which brings me a Big Business...and a question...DID TOLEDO OFFER O.I. ANYTHING TO STAY???
posted by MARIELORA at 11:41 A.M. EST on Sun Nov 13, 2005 #
We may not have jobs in Toledo, but we have a social conscience. We only want our people to have the right jobs.
posted by MemyselfandI at 12:21 P.M. EST on Sun Nov 13, 2005 #
In a Forbes Survey, Toledo ranked 141 out of 150 metropolitan for "the best places for business and careers", behind Gary, Indiana and Detroit, Michigan. Toledo also ranked 144/150 for Job Growth.
posted by lloyd at 05:38 P.M. EST on Sun Nov 13, 2005 #
The new income tax cuts and business tax cuts will help. But they probably don't go far enough.
Taxes are basically anti-growth. Ohio thinks of itself in the same league as NY or California, but realistically it's not. Some states can get away with charging high taxes and still enjoy enough growth because of lifestyle factors. Ohio's lifestyle factors aren't a whole different than Michigan or Indiana or even Tennessee or Georgia. The state can't compete having the highest tax burden in "flyover country", and the highest taxes in the nation after NY, California, and "Taxachussetts".
posted by paddington at 08:19 P.M. EST on Sun Nov 13, 2005 #
Firstly, Marie, it's not the business of government to bribe the wealthy (i.e. businesses). Taxes are the cost of being civilized. If citizens owe taxes on their income and properties, then so do corporations (who have taken great pains to tell us that they have the same rights as people, please note!).
Secondly, there was a NINE MILLION DOLLAR "package" collected together for O-I, under Ford. That wasn't enough of a bribe to keep them in downtown.
Thirdly, I think that you're onto something with your criticism or observation of Toledo's abatement targets. A friend of mine complained just today that Toledo does lavish their bribes upon industry, and not on techie small businesses (apparently, his preferred thing).
posted by GuestZero at 12:42 A.M. EST on Mon Nov 14, 2005 #
I am not surprised Ohio rated so low on the Forbes list. But you would think with some of our larger Ohio cities, they would have carried us here in northwest Ohio.
Cinci though, I have no prove, seems to be on an incline. It's warmer weather, prettier landscape, etc. But, I have a feeling that most that claim they are a Cinci business actually are just over the border in KY. I do know that many people who work in Cinci live in KY, and lookie, it's higher than us on the list!
I wouldnt be surprised if Georgia moves up on that list. They have had some major growth over the past 5 years. I went to visit where I used to live for some time, and what used to be farm area is loaded with housing subdivisions and businesses.
posted by alexandra at 12:56 A.M. EST on Mon Nov 14, 2005 #
GuestZero...Toledo COULD NOT even PAY O.I. to stay!!!
What HOPE does that leave Toledo with???
Will Carty continue to give tax abatements to Industry and Manufacturing??? His goal seems to be to entice White Collar Business in Toledo...what do you think???
posted by MARIELORA at 07:23 A.M. EST on Mon Nov 14, 2005 #
I am providing a link to a guide of Toledo...this article actually states that "TOURISTS" visit Toledo...goes on to list all the attractions "TOURISTS" often see...ballet, symphony, art museum...
When have "TOURISTS" visited Toledo??? The only time I can think of...possibly when the Boat Races were on the Maumee...isn't that a ONE DAY EVENT???
The impression I am getting with this write up on Toledo...It is a "TOURIST" ATTRACTION...
I cannot believe that!!! I see absolutely NO REASON other than family and friends residing in Toledo; why anyone would visit here!!! Am I alone with these feelings???
http://www.hellotoledo.com/
posted by MARIELORA at 08:17 A.M. EST on Mon Nov 14, 2005 #
Next link I find for Toledo will undoubtedly speak of our city as a "TOURIST TRAP"...
I am totally dumbfounded of the thought of families actually vacationing here for the attractions...the only attractions I can possibly think of...
Maumee Bay...Tourist Attraction???...I don't think anyone would travel to spend their vacation on a contaminated lake front hotel or cabin...
Putt-N-Bay...but...that's NOT Toledo!!!
posted by MARIELORA at 08:28 A.M. EST on Mon Nov 14, 2005 #
Nor, is Cedar Point...in Toledo...
Or...Port Clinton...
posted by MARIELORA at 09:29 A.M. EST on Mon Nov 14, 2005 #
I don't think people "vacation" in Toledo, but they do day-trip here for the zoo and art museum. Those are tourist dollars.
Toledo is a city not friendly to business. We'll give you tax abatements, but we'll also tell you that you must hire Toledo residents. We'll impose draconian building codes on you. We'll subject your employees to the highest municipal income tax in the State of Ohio. We'll give you a predatory newspaper whose publisher will destroy your life on a whim. We'll give you surface streets whose planning and light timing were done by inmates of the local jail. We'll give you corrupt politicians who will extort money from you for their pet causes. To paraphrase Chrissie Hyndes, we're afflicted with a government with no pride.
Toledo would be a great place to do business were it not for the government. Carty has promised change. Let us hope it is so.
posted by MemyselfandI at 06:17 P.M. EST on Mon Nov 14, 2005 #
Most folks not involved in the restaurant business are unaware that last year the costs of food service permits AND fire inspections both doubled. JFo balanced the budget, but he did so on the backs of the small businesses of Toledo.
We got a double barrell from the state of Ohio too. The cost of renewing a liquor license increased 30+% in 2004. This year starts the new Ohio tax @ 0.26% of gross sales.
It's the smallest businesses that get hurt the most. The little restaurant, the corner tavern, the same folks whose businesses were decimated by JFo's/The Blade's smoking ban. These small businesses can't afford more taxes and fees.
Take a little tavern that employs 10 people. Let's say the business grosses $500,000 a year. Over the last 2 years, their cost of doing business increased by $2,000+ courtesy of Ohio tax laws and Toledo fees.
While that isn't an ungodley amount of money, when one also considers that we pay the highest electric rates in the world, it's no wonder so many business are stuggling.
I hope Carty can help get us out of this mess.
posted by jimavolt at 09:05 P.M. EST on Mon Nov 14, 2005 #
jimavolt, apparently we are in a similar line of work. The deadline to register for the CAT is tomorrow. Isn't this more of a county and state problem? Unless Carty tries to undo the smoking ban, which I don't see happening, tax relief needs to come from the state. The county increase in the cost of food service permits borders on the criminal. And how about those new reg's? Stuff that has been fine for twenty years is suddenly a violation. We went 32 years without a violation and now, without any change in our operations, we dread the inspector. We make every requested/mandated remedy immediately and they still are not satisfied. The next visit finds more stuff! I understand that they have adopted the federal standards and will not grandfather any operation. Mostly I just do what they ask and pray I can afford or physically accommodate the next round of corrections. It is quite possible I might be forced out of the building I am in. There just isn't a lot of room to make any more changes.
posted by holland at 09:26 P.M. EST on Mon Nov 14, 2005 #
Hey Holland
You're right that it's the County that raised the costs of permits, not Toledo. My error - but an unreasonable increase nonetheless.
I hope Carty can help get some competition for electrical service. It sure would be nice not to get those $4,000 electric bills.
Btw, 32 years is a great run in the business. Congrats. I'm proud to have made it 17 years at the Distillery. Which business is yours?
posted by jimavolt at 09:54 P.M. EST on Mon Nov 14, 2005 #
Actually its a convenience store. Talk about electric bills! Thirty two years for a Mom & Pop is a long time. We have 10 employees. It is adapt or die! We have reincarnated ourselves about five times now. We just started a new service which we hope will metamorphous us again. I am afraid to mention it for fear of a jinx, maybe if the business plan bears fruit.
posted by holland at 11:34 P.M. EST on Mon Nov 14, 2005 #
PS jimavolt. Our daughter and her crowd frequent your establishment and give it high marks. We have been there a few times ourselves and enjoyed it. Child Proof Toyz is a good band. Tom Carros is a friend, former employee and neighbor.
posted by holland at 11:39 P.M. EST on Mon Nov 14, 2005 #
Marie, if white-collar businesses found Toledo such a good prospect, we would have seen more of them show up. But they haven't. So, why? Let's look at what Toledo offers:
1. A backwater or flyover taint to its overall culture. This is now essentially impossible to dispel with the regional economic collapse, so there's little point in addressing it. (Note that the smoking-ban people are partially motivated by this.)
2. Still has relatively cheap housing. Toledo's home prices started to fall in 2003 -- a good 2 years before they started to peak nationwide.
3. Is rather centrally located and is an air and road hub, and is further supported by rail. Still, with the increase in overall transport options in America, this is not much of an advantage over many other places.
4. Has a pathetic public transport system. Still, many people in America rely on cars, so that's not much of a disadvantage.
5. Has a terrible job market. Hoo, boy!
6. Has no nightlife worth mentioning. What a yawner.
7. Is not near enough to an "interesting city". Detroit is a sh*thole and no one wants to go there for any rational reason other than obtaining better quality illegal drugs.
8. Has politicans so inept or criminal that it just about makes you scream. This has profound influence on the tax-and-benefits environment.
So ... about all Toledo offers is cheaper housing.
Well! Does anyone really wonder why people are LEAVING Toledo instead of moving INTO it?
I don't know the stats for the 'burbs, but I'd bet their population gains are primarily from flight from Toledo, and are much less attributable to actual immigration from other regions.
Now, having identified Toledo's weaknesses, what can social leaders and individuals do about it?
#1 is impossible to change on its own. We must change other things to improve that one. Skip it.
#2 is a strength. However, politicians can try to screw this one up with their bulldozers.
#3 and #4 are neutral.
#5 is the hugigantinormous problem that we're trying to solve in the first place. The politicians are almost completely powerless to change it.
#6 is up to artists making the effort and to various small businessmen taking risks. I strongly doubt the latter is ever going to improve. I do believe that the former are making some advances. But the involvement of politicians distorts the picture by moving the social stress onto the taxpayers behind the scenes.
#7 is also impossible to fix. The only way it can be fixed is for Detroit to improve (yeah, right) or for Toledo itself to remake itself into an interesting city itself.
#8 is something we can fix. But the body politic has shown little willpower to enact such fixes. Personally, I'm not holding my breath about it.
posted by GuestZero at 01:53 A.M. EST on Tue Nov 15, 2005 #
We'll give you a predatory newspaper whose publisher will destroy your life on a whim.
------------------------------------------
THERRREEEEE YOU GO! I stated here once before that The Blocks (mainly J.R.)are (since the 80's, at least) directly, or indirectly, resposible for about 90% of Lucas County's problems. The voters are responsible for the other 10%.
posted by Foolkiller at 04:29 A.M. EST on Tue Nov 15, 2005 #
Toledo has cheap housing, but if you go to the sunbelt you get cheap housing and low taxes, so Toledo can't compete.
posted by paddington at 10:03 P.M. EST on Tue Nov 15, 2005 #
Foolkiller, I think you have your fractions flip-flopped (a.k.a. "Kerryed").
Rich twits like the Blocks have influence, but that's merely a rudder on the ship of state. The engine of the ship is composed of the "double-votes" of the masses (by ballots and dollars). With enough power, the ship can be taken in any direction.
Too bad that we're leaking like a seive and the people who could be bailing have already taken to the lifeboats. The people who could have installed bilge pumps refuse to do so, since their money gets a better return on other ships.
As for Paddington: Cheap housing combined with a city connection is uncommon. The housing bubble across the USA has ensured that. I believe that Toledo competes on that point. Of course, despite that, the lack of jobs is a fatal disadvantage.
posted by GuestZero at 01:43 A.M. EST on Wed Nov 16, 2005 #
GZ, i meant to post this last night, but it doesn't look like it came up. I think you have nailed everything right on the head and I wanted to say WAY TO GO etc etc on your posts here. Also, MemyselfandI, you pretty much hit right on target also. I hope Toledo Leaders might start to frequent this site a little more and grab ideas from all the free-thinkers here...
posted by alexandra at 02:25 P.M. EST on Wed Nov 16, 2005 #
I kind of realized how small of an area Toledo is today:
JFo presented his final budget of 235 million dollars (seemed like alot to me)
Then I heard that Detroit's budget deficit is $300 million!!! Detroit is short on their budget the entire amount of funds needed to run Toledo and then add $65 million to that...crazy
posted by lloyd at 06:26 P.M. EST on Wed Nov 16, 2005 #
Lloyd, Detroit is Toledo's future. Toledo merely has less distance to fall than Detroit did.
Detroit is still on an overdrive of spending, while its tax base has not only shrunk but has critically changed in character. You can't run a "post-industrial" city by only taxing the pathetic incomes of the masses of poor within it, and as well the rafts of smaller businesses who do not have the resources to resist predatory government.
I don't own or operate a small business, but what I see happening to them around this patch of the Midwest really honks me off. It's bad enough that too many small businesses are treated like private piggy banks by their owners (or worse: like HOBBIES). When local governments start firing fees at them like an archer would arrows, the end result is a general collapse of small businesses.
We should pay strict attention to the Lake School district. That will probably be a model for the future of post-industrial school systems. I predict there will be a lot of fund-raising bake sales.
To return to my point: Detroit still doesn't know that it's in "critical condition", hence it's still spending without regard to security of income. Kilpatrick remained in office, too, which shows how deeply that Detroit's voting citizenry is embedded in a fantasy world. Detroitians seem to still think they have a future that will have enough economic robustness to pay off their shortfalls. Delphi's CEO Miller must still be howling with laughter as the ineptitude of it all, as he contemplates dictating terms to workers as well as (I'd imagine) politicians in each municipality that has a Delphi factory.
posted by GuestZero at 10:03 P.M. EST on Wed Nov 16, 2005 #
Speaking of the Detroit area, here's this posting from Arbor Update.
"Remarks made by some Livonia residents during a city planning commission meeting are propelling one white pastor to action. Their assertions that building a Wal-Mart store in their city would attract Black Detroiters and eventually turn their neighborhood into a ghetto has made headlines. [Rev.] Waschsmann wants churches in Livonia—tagged America’s whitest city—to begin deeper discussion on racial issues."
And from the other day:
"A federal grand jury Tuesday indicted Detroit City Councilman Alonzo Bates for putting “ghost employees” on the city payroll from 2002-2004, including relatives and his lawn man. The 65-year-old councilman, who last Tuesday lost a reelection bid, also was charged with failing to file tax returns from 2001-2004."
"Bates was charged with four counts of mail fraud, four counts of theft from the city of Detroit, one count of bank fraud and four counts of failing to file federal tax returns. The most serious charge, bank fraud, carries a maximum penalty of 30 years in prison and a $1 million fine. The tax charges are misdemeanors and carry a maximum penalty of 1 year in prison and a $100,000 fine."
posted by jr at 05:55 P.M. EST on Thu Nov 17, 2005 #