Do Bad News Headlines Scare Off Developers?
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Submitted by ReporterLeslieA... on Fri, 2008-05-16 17:15. |
When it comes to growth in Merced, which factors influence a developer's decision to build here?
According to the city, negative headlines slow growth.
In fact, the city says Merced's current headlines are doing more to slow growth than a low-skill labor force, lagging schools, poor air quality, crumbling transportation system and high crime rate.
That analysis comes from the city's development forecast, a document you can find on the city's Web site here: http://www.cityofmerced.org/depts/cd/planning/documents_and_handouts/def...
The two-page report makes predictions on how housing, office and commercial development will play out over the next five years.
For example, the city thinks housing demand will remain at "pre-2000 levels, with a very gradual increase in 2013."
The report also lists the "major forces" affecting Merced's growth.
Four factors are listed has having more impact than the others: the mortgage crisis, lower-quality health care, high building fees and, last but not least, "Perception."
The report says: "Merced's current headlines have negatively impacted the community's and outside investors' perception of the city. As the mortgage crisis fades some of these headlines may disappear, but the impression will likely last some time."
Any developers out there reading this, I'd love to know what you think about that.
Hopefully developers are making decisions based on careful study of land prices and market trends and all kinds of other economic data.
I'm sure news reports from a particular community influence them too, but I wonder how much.
Syndicate
The times are what they are...
I am certain that developers use more resources than the local newspaper when deriving at a decision to develope an area or not. It's somewhat unreasonable for city officials to think what is printed in the paper has that much bearing on a developer's decision.
I mean the times are what they are and the facts are prima-facie. It doesn't take a rocket-scientist to look around the environment they live in to observe that Merced's economic market is flat with no current end in sight.
Take a drive out to Bellevue Ranch if you want to get a good idea of how bad our times are. Homes there are incomplete with many still in their "rough-in" stage, left standing for when times get better. Tall dry grass, thistle's, etc. have grown up around once manicured model homes; gang-writing and general tagging have taken a toe-hold in the area etc. and Bellevue Ranch is not the only development that this trend can be seen.
So, if I were a developer I'd only have to look around me to see that Merced City and County is not a good investment at this time, period!
City and county officials should encourage "green" businesses to come into the county; business that can afford to pay more than Merced County's traditional "slave-wages" of minimum wage. Give the local people a means of economic prosperity and you'll slowly begin to see those desolate-foreclosed on-bank owned properties begin to sell once again!
City and County Officials are some of the highest paid jobs in Merced but they themselves cannot support the infrastructure. The Wal-Mart distribution center could be a fine idea under the right circumstances, that is, they must be "green conscious" and they must be willing to pay far above minimum wage, like $15.00 per hour starting wage! This way a duel income family can begin to afford say a $200k home! MERCEDIANS HAVE TO LEARN TO STOP GROVELING for scraps while the FAT-CATS widen their profit margin! SIMPLY PUT, THE HIGH COST OF EVERYTHING THESE DAYS CANNOT ALLOW ONE TO GROVEL ANY LONGER.
End the groveling and working for peanuts and you'll see economic prosperity and quality of life return to Merced.