New version of Toledo Talk

Why move a business to the burbs - from downtown Toledo? This article about downtown engineering firm SSOE, Inc. provides a little insight. "... the suburban option is an attractive one, with closer parking, more safety, and more reliable electricity. SSOE said it is being offered significant incentives, including at least one location offering a 10-year tax abatement, and without the 2.25-percent wage tax levied on all employees."

"The company said it spends $60,000 a year for private security patrols and $50,000 to lease parking. "Many of our employees walk three blocks from their parking spot to our building. In addition, they are frequently confronted with panhandlers, and several have actually been assaulted," a company document states."

"In addition, it says, the business is critically dependent on computers, costing $15,000 in revenue for every hour of lost downtime. "Our location on the downtown grid has resulted in several expensive outages," the company said."

"SSOE, Inc., an engineering and architectural firm based in downtown Toledo, is asking for a $75,000-a-year incentive through the city’s cash-for-jobs program to keep it from moving to the suburbs. The firm, a downtown fixture since 1948 with 293 full-time employees, hasn’t made a specific threat to leave its longtime location at 1001 Madison Ave."

"Mayor Ford said the cash-for-jobs program, which has been used for years by Arrowhead business park in Maumee, was initiated by him and Councilman Wade Kapszukiewicz for this type of situation. The program, which the city created a year ago, allows payments of up to $75,000 a year for 10 years."

"SSOE could lose a slight advantage it now has in bidding on city jobs by moving outside the city. SSOE has the potential of a Marina District-related project. The committee that reviewed applications for constructing a new sports arena recommended in late October that whoever gets the job should partner with SSOE in the arena design."
posted by jr to business at 5:08 P.M. EST     (3 Comments)

Comments ...

Followup story.

"The competition for one of Toledo’s corporations points up the need to create a regional approach to economic development, [council President Louis Escobar] said."

Nice idea, but it seems political greed would prevent cooperation between Toledo, the burbs, and Michigan. What's the benefit for the outlying communities? Toledo would want too much control.

Toledo tells Sylvania how to handle the Lathrop House situation. Toledo tells the surrounding towns to go along with the smoking ban. I don't think the other towns want Toledo telling them what to do.

More from this followup article...

"Maumee is home to Arrowhead business park, which routinely offers cash grants as a rebate against the city’s payroll tax. Arrowhead has been successful in attracting businesses because of its incentives and conveniences, which include undeveloped building sites, modern infrastructure, and easy accessibility to restaurants, hotels, and transportation."

"Steve Seaton, Toledo’s director of economic and community development, said the administration does not doubt that SSOE has options. Mr. Seaton said. "That’s why this [downtown employment incentive program] was set up - to stop further erosion to Arrowhead Park." "

"Wade Kapszukiewicz, chairman of Toledo council’s economic development committee, said the downtown incentive, available only in the central business district, is an effort to give Toledo the same tools its suburban neighbors have."

" "Everyone knows that urban areas have certain disadvantages - the perception of crime, aging infrastructure. There are advantages to being downtown, and I think we need to promote some of those," Mr. Kapszukiewicz said."

"[SSOE] aired a series of complaints with city officials earlier this year, including occasional power outages and safety of employees walking to and from parking lots."
posted by jr at 04:05 P.M. EST on Fri Dec 05, 2003     #

Opinion from Blade columnist Russ Lemmon about why Toledo is still stuck in the Rust Belt.

"You're on your own, Toledo. That's the prevailing sentiment of political bodies in neighboring communities. ... it's also a big reason why [Toledo] has been mired in mediocrity for decades."

"As a native Hoosier, it's still hard for me to believe that [Indianapolis] has gone from a "cornfield with lights" to having one of the most vibrant downtowns in the country. Few cities have come as close to reaching their potential as Indianapolis. It hasn't always been that way."

"Indianapolis dared to be different, adopting a city-county form of government. Indianapolis in 1971: Fast-growing suburbs were feeding off the city and offering little in return. The solution? Marion County became "Indianapolis" (and vice versa), for all practical purposes. As a result, petty provincialism vanished because those who fled to the suburbs were Indianapolis residents again. Consequently, a dying downtown was no longer somebody else's problem -- it was their problem."

"Toledo in 2003: Fast-growing suburbs are feeding off the city and offering little in return. The political environment? It's every municipality for itself -- whether we're talking about the smoking ban, the fate of Southwyck Shopping Center, or, as we found out last week, SSOE, Inc."

"When pondering the concept of regionalism in northwest Ohio, ..."

"In his State of the City speech in January, Toledo Mayor Jack Ford talked about the merits of consolidation: "Philosophically, I think we need to reorganize our effort on economic development into a single voice, not the four voices -- the city, the county, the port (authority), and RGP (Regional Growth Partnership) -- as we do now. Let's organize into one strong voice." "

"A "uni-gov" system -- in which all of Lucas County would become "Toledo" -- would force short-sighted politicians to look beyond their own borders. The big picture would take precedence."
posted by jr at 02:59 P.M. EST on Wed Dec 10, 2003     #

"Plummeting business income taxes contributed to an unexpected $1 million deficit in the city of Toledo’s budget for this year."

"A report on tax trends by the city’s revenue consultant showed that business income taxes have declined from a high of $17.8 million in 1996 to $12.1 million this year."

"Business income taxes are paid on profits. This year’s revenue is projected at $12.1 million - a drop of 14 percent from revenue of $14.1 million in 2002."

"City Auditor Daniel Hiskey said that money will have to come out of the city’s rainy-day fund, which now has $11.4 million."

"The business income tax declines began during the strong economy of the mid-1990s, and four years before the beginning of the grueling recession of 2001."

"Councilmen George Sarantou, Michael Ashford, and Wade Kapszukiewicz focused on the declining business tax receipts and said council should try to find out why."

YOU THINK? The tax decline started during the so-called boomtimes, and it continues today, 2003, and Council just now thinks they should try to find out what the problem is?

"Mr. Sarantou, chairman of the finance committee, said the fact that the losses began in the middle of a booming economy tells him it is due to employers shutting down their Toledo addresses and relocating to Arrowhead Park in Maumee, Michigan, or other locations."

"Local corporations paid $10 million in business income taxes in 1991 at the bottom of a previous recession. The annual revenue rose to nearly $18 million in 1996 before beginning the current decline."
posted by jr at 06:28 P.M. EST on Sat Dec 13, 2003     #

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