Some Things...

I suspect Duluth is on the right track since we continue to do the same things over and over. We seem in a love affair with publicly funded development. I would argue publicly funded development is counter or the antithesis of privately funded development. Privately funded growth results in immediate and long term tax benefit to the City whereas, publicly funded development does not. The term "development" when used in the context of a positive trend in a community, refers to this benefit, that is, the benefit of increased property value and economic activity which results in commerce. Commerce, resulting in tax receipts, is how City functions are funded and until Duluth and Duluthians grasp this concept, we are bound to the same direction and the same pitfalls.

City subsidies to encourage private development are beneficial only when it results in the commerce and tax benefits of similar, non-subsidized developments. Tax increment financing does not meet this threshold of benefit as it does not result in revenue to the City. The way of encouraging "development" in Duluth has accomplished one thing for certain, it has honed the skills of the City's most adept developers as tax recipients. That is, they have become skilled in the art of benefiting from the investment of their own money, getting a return not only from that personal investment but also from the public investment; a sort of private/public double dipping. This is good for the bottom line for the developer but, at least for the short term, it does nothing to benefit the public.

Only when Duluth realizes, removing obstacles to private investment, creating a favorable tax environment and marketing Duluth as a good place to conduct commerce, will we overcome the fiscal woes imposed on us by the current and recent past politicians. The problem however, is similar to the Chicken and the Egg. How do you market Duluth as a good place to do business to those outside the City when the tax picture and City Red-Tape, prove it to be just the opposite?

This is our dilemma and it will take years of undoing decades of misguided law-making by the "leaders" of Duluth. This will likely not occur as those currently skilled at working the system, are the true power-brokers in Duluth and they don't wish for change since the current system of quid-pro-quo works quite well for them, thank you. For change to occur, those in positions of power have to look inward and forward. If they truly wish Duluth to move forward, for Duluth's children to have a chance of staying here and for true economic development, the government must get out of the development business and leave it to the entrepreneurs of the world.