Few people today remember that Wernher von Braun was the Chief Architect of the Saturn V Rocket.  However, most everyone knows the name of at least one of the 39 Astronauts that played lead roles in space exploration through the Apollo missions.  And, just about anyone could tell you who said, “That’s one small step for man, one giant leap for mankind.”

Sustainable Shelby is the first agenda for sustainability in the Memphis region and a strategic framework that addresses building codes, the environment and neighborhood rebirth.  It makes the connections between transportation and traffic, public incentives for economic development and land use patterns.  This plan looks close to home by improving public building efficiency and purchasing policies, while looking far down the road at development opportunities, natural resource preservation and tax revenues.

The plan was developed through a process coordinated by 13 Shelby County employees and seven committees chaired by private architects, Sierra Club and neighborhood development leaders, urban planning professors, real estate professionals and community activists.  These committees consisted of almost 150 experts in their respective fields who each volunteered an extraordinary amount of time to a project that they believed would be a seminal moment in the history of Shelby County.

The Sustainable Framework

They all knew that, then-County Mayor Wharton needed this plan to address problems confronting us.  He stated clearly, “the present course is unsustainable on the basis of public finances, environment and land use, disposable neighborhoods, deteriorating health, and declining quality of life.”  Wharton recognized that young educated people are leaving Shelby County, that economic development practices can actually conflict with community building projects and that both fiscal and environmental efficiencies were needed to survive.

This team, however, knew something even more important.  They knew that the plan had to transcend one mayor’s time in office.  They had to create a document that wouldn’t suffer the same fate as the past smart growth plans and suburban expansion plans.  A plan was needed that could achieve buy-in from Shelby Countians and be embraced by administrations to come.  The Sustainable Shelby team was not only interested in solving problems and engaging environmentalists.  They were driven to create the catalyst we need to transform this county.

This plan is in line with past philosophies, current directions and future needs.  This initiative is in line with nationwide ideals that are being set by HUD, DOT and other agencies.  Shelby County is poised to be a true nationwide leader and has already been approved for a federal grant to begin implementing some of the Sustainable Shelby principles.

Interim-Mayor Ford unveiled the Clean Green Shelby initiative and also sought advice from local environmental experts… most all of whom participated in Sustainable Shelby.  This initiative consisted of a Wolf River brownfields assessment program, recycling, a greenhouse gas inventory, an MOU with municipal mayors seeking a solution to waste water issues and stream protections, in addition to drinking water protection.

Smarter Growth

Sheriff Luttrell, as a candidate for Mayor, publicly recognized Sustainable Shelby and that acknowledgment is appreciated by many who have been involved through multiple similar initiatives only to see them scrapped and rebooted years later under another name.  As well, the Mayor-elect stated that economic development begins with a safe and attractive community where people want to live and industries desire to locate.  He knows that “smarter growth” utilizes existing infrastructure like roads, schools, greenways, retail, medical and recreation.  He says we must capitalize on existing infrastructure that is not fully utilized.

There is no question that many of our leaders are speaking the language that is encapsulated within Sustainable Shelby.  This speaks to the lack of partisanship that existed in its creation.  So, there is no reason to lose ground by reinventing the wheel.

And please know that momentum may be waning as our county’s experts have enthusiastically come to the table and been disappointed many times before.  They are looking for a leader because their proposal is not achievable as a grassroots movement.  And because they know you can claim victory from day one, positioning Shelby County with peer communities around the country.

Like many cities in the late 1960s, Portland, Oregon found itself facing urban decay and suburbanization.  Then Republican State Governor Tom McCall and Democratic City Mayor Neil Goldschmidt rallied for and enacted measures to deal with issues ranging from urban zoning to farmland conservation.  The sustainability plan implemented over the last 30 years boasts about providing a regionally inclusive approach in order to build thriving communities, economic vitality and scenic beauty.

Ready to Go

Since 1980, the City of Portland has grown by 57% with a population density of over 4,200 people per square mile.  The Metropolitan Statistical Area (MSA) has grown by 62% to almost 2.2 million.  Portland’s regional household income surpasses $70,000 a year.

By contrast, the City of Memphis has grown by 4.8% since 1980 and has a population density of less than 2,200 people per square mile.  The MSA has grown by 29% to just over 1.2 million.  Memphis’s regional household income is less than $62,000 a year.

Closer to home, please consider Nashville’s Cumberland Region Tomorrow.  As Davidson County and the surrounding area began to grow, this organization became concerned about the future livability and economic vitality of the region.  They have successfully supported and encouraged growth planning, with emphasis on land use, transportation, and preservation of the rural landscape and character of the existing communities for over 10 years.

When their Executive Director, Dr. Bridget Jones, was here for a Livable Memphis conference, she became familiar with the Sustainable Shelby work.  She talked about the most difficult part of Nashville’s project being tied up in building coalitions and creating a strong enough plan.  Dr. Jones marveled at the work that had been done here and stated emphatically, “you are ready to go, you have what you need, Sustainable Shelby is your plan and you are lucky to have it.”

Positioned for Success

Today our system of uncoordinated, isolated departments makes it difficult to promote and improve life in this county.  When the economy rebounds, is Shelby County going to be positioned to succeed?  We have all of the pieces of the puzzle.  Sustainable Shelby just makes sure they are all in the same box.  Who will be responsible for defining our quality of life and powering the greatest economy in this region?

A past county mayor, respected staffers, industry experts and an army of volunteers have built your rocket.  However, they have done all they can do until a champion steps up to move it off of the ground.

You, as new leadership, can choose to use your first few years drawing up new plans.  Or, you can be our Neil Armstrong, strap into the Commander’s seat and help Shelby County take the next step by implementing Sustainable Shelby.

This is the great recession, right?  No one is moving on anything, right?  Besides, Memphis is an extraordinary city with everything to offer and if there was a move to make it would be here, right?

Then how is it that over only two weeks in July, Olive Branch, Mississippi, took the gold medal in every category?

Soladigm announced a new 300 employee operation.  Hamilton Beach will move 125 jobs from Memphis south of the boarder into Mississippi.  Methodist was approved for a 100-bed, 480 employee hospital.  And, Grant Homes launched a 109-lot subdivision.

At Smart City Memphis we debate incentives and political baggage, crime and community, brains vs. brawn, expansion patterns vs. growth boundaries, venture capital and business retention.  We know economic development is supposed to be deep, complex work.  There are experts in the field that tell us how hard it is.

Well, as someone who spent six years working very closely with many Magnolia State economic developers, real estate professionals and business leaders, I’d like to share a few of their secrets.  You can decide how hard it is to really do this.

Mississippians know how to build relationships

Maurice Joseph, a Mississippi real estate investor, gave me the best advice I have ever gotten.  He told me one day regarding a prospect, “Don’t write them, don’t call them, go see them.”  These guys get to know you before you know you want to move.  They know what you need, how much you can spend and where your grandmother goes to church before you have ever mentioned expansion.  They have done things for you, unsolicited, that have helped you personally and professionally.

When the day comes that you do consider a big move, surprise, surprise, here is your buddy with the perfect place for you.  You don’t notice the peer pressure, the brochures or any of the other fluff because you are being asked to buy something they already know you want.

And you know this is a two-way street.  When I say relationship building, I mean it.  These people become your friends and that makes it real easy to do business.

Mississippians show well

Leland Speed, a national real estate investor from Mississippi, puts flowers in the bathrooms of every one of his properties.  When Governor Barbour asked him to be the pro-bono director of the Mississippi Development Authority Mr. Speed went on a statewide tour visiting every single rest stop demanding that they be beautiful representations of his state.

This might sound nuts.  But you don’t have to talk about burglaries or maintenance problems when management demands this level of detail.  You don’t have to sell someone on having the best when there is a bouquet next to the urinal.

This also lends itself to a brief mention of marketing, enthusiasm and interest.

Take this test:  Do an internet search for Mississippi advertising, marketing or public relations firms.  Do the same for Memphis firms.  Randomly pull five or ten web addresses from each.  Compare them and decide which community has the most creative minds, latest technology and enthusiastic spirit… and what will they charge you to share it?

Mississippi brings out the big guns

Olive Branch isn’t attracting this business by itself.  The Capitol is behind them.  From new roads to utility expansions to job training to income tax rebates, this is largely being handled from Jackson.  But that isn’t the most important part.

Having the Governor call on you and offer these things casts the line.  Having another businessman in the area call on you and tell you a story about how the Governor helped his business when they were once in a bind sets the hook.  Having the mayor call on you with a package of pre-approved applications and incentives reels you in.  The real estate developer just has to show up with the hammer and nails because the other work is being done for him.

I belong to both the Memphis Rotary Club and the Kiwanis Club of Memphis.  These people are friends, business partners and true community leaders.  I took an informal poll of about 20 of them this week by asking if they could name a Memphis, Shelby County or Chamber economic development employee.  Most answered no.  If anyone would like to get close to these potential prospects, I can get you an application.

When the economy is slow there are some things winning communities do.  They work hard on getting to know their existing businesses, defining their future needs and discovering who might be complimentary to them.  They put together inspired armies of local cheerleaders.  Then they tell the world what they are doing.  Some things don’t require expensive initiatives or time consuming planning.

Step One – Make Friends

We have to build our relationships.  And we need to do it beyond our comfort zones, outside of our circles and with some people we may not understand.

Get to know others in business.  Practice selling to our friends.  And ask them to commit to this city.

Antonio Ubalde and Eric Simundza did research for and published Economic Development: Present and Future.  Below are their top five marketing strategies (out of 16) based on effectiveness:

* Internet/Website

* Out of town meetings with businesses

* Site selection consultants and familiarization tours

* Public relations

* Special events

Four of the top five are relationship-based.  They either start with a relationship or are designed to build one.

We keep hearing about the plight of One Commerce Square, the largest building on our skyline that is over half-vacant.  What if the owner or leasing agent was a member of Rotary or Kiwanis and had been building a personal relationship with several hundred potential prospects?  What if an economic development official had been doing the same?

Step Two – Help new friends fit in

We have to deploy our team.  That team needs all of the right information to make decisions and help others make decisions.

Do we have a team of influencers, business peers and, frankly, people it is hard to say no to?  Do they fully understand what happens to this community when they make factory decisions?  Do they understand how many other people they do business with nationally that could be prospects for our community?  Are they armed with the knowledge and determination to recruit for us?  Do they feel like this is an important part of life in a community, a last desperate measure or does that even matter?

Step Three – Give friends the right resources

We have to put our money where our mouth is.

In the Ubalde & Simundza work, they found that organizations that had an economic development component spent only around 10% of their budget on actual economic development marketing.  Of that 10% budget, over half was spent on strategies that were the least effective, 17% was spent on the important portal (Internet/Website) and only 30% was spent on the other four most effective strategies.

If economic development agencies don’t put their efforts and dollars toward what actually builds business then the communities that do will continue to steal victories from us.  If our most important figures, leaders and ambassadors aren’t willing to commit themselves to this effort, then more and more of their neighbors will move farther and farther away.

We need a movement that can start with very, very simple tasks.  Memphians must re-learn how to build meaningful relationships.  We must use those relationships to strategically tackle economic development issues.  And we must start deploying the necessary resources to get the word out.

And in all honesty… this starts with every small business person.  The initiative can be ours.  It doesn’t have to come from City Hall, The Shelby County Office Building, a Chamber or a club.

Last winter I wrote about five hours spent in Downtown Denver because I was so marvelously inspired by what was happening there.  I have not felt that excited since… until now.  A few days in DC and my outlook on life could not be any better. 

There is no better time than now to dive into trying to blend sexy real estate projects with strategic community building with necessary economic development.  What if we could claim beautiful sidewalks in front of charming restaurants?  What if high-density neighborhoods felt comfortable and convenient?  What if we could seamlessly transition from home to work to recreation and back again? 

Yes, our Federal dollars make beautiful public spaces possible, museums free and underground public transportation efficient in the nation’s capital.  But that is not what has me so inspired.  Below is a list of ten things anyone, anywhere can do right now.  We can get started with this today. 

#1 – Sweep your own sidewalk.

From the edge of their threshold, out onto the stoop and straight to the curb, residents and shopkeepers alike are happily sweeping.  Not powerwashing or leafblowing, but sweeping.  Smiling and sweeping.  DC is a cigarette smoking city filled with thousands of residents and millions of visitors.  I challenge anyone to find a pile of butts or wrappers or anything else.  I also dare you to find someone complaining about cleaning it up. 

#2 – Don’t stack the chairs until you are sure.

We arrived late and were starved.  The owner of a pizza place that was to close at 11:00 walked to the door and called us in at ten minutes after, when they saw us as potential customers peaking in.  Two huge slices, two drinks and two happy customers.  If we were it they would have made $11, but because we sat in the window, five other customers came in after closing time. 

#3 – Park only where you are supposed to.

No one in DC dares to park on the sidewalk, in a pedestrian plaza or in an illegal spot.  In contrast to Memphis, no freely dispensed passes exist for parking on a mall.  I can’t imagine a pedestrian tolerating their path being impeded by a construction truck or conventioneer or neighbor parking on the sidewalk.  I almost cheered when I witnessed a very nice Porsche being towed from a temporary parking zone in front of a drug store when it stayed past its welcome. 

#4 – Make your front yard matter.

Washingtonians embrace the sidewalk, or rather the property that abuts it.  The space is often defined with a two to three foot iron fence.  Some yards are meticulously landscaped.  Others are more eclectic.  All are wholly embraced for comfort, whimsy and fun.  Bushes, flowers, pathways, chairs, grills and art but never, ever just a grass lawn.  Additional living space may be the rationale.  Improved relations with neighbors and increased property values are the result. 

#5 – Kill your weeds.

People in DC are in a relentless battle against weeds.  Government workers pull violating foliage from beds.  Doormen armed with Round-Up attack steps and walkways.  Grandmothers yank and stomp to make certain their landscape looks good for anyone who might pass.  Where was the guy standing in the weeds screaming, “someone should do something about this”? 

#6 – Give busses their own lanes.

Dedicated bus lanes caught my eye.  They allow buses to move more people, more quickly and in fewer vehicles.  They are usually used in cities that don’t have the population for short-distance light-rail trains or in larger cities as a substitute for longer-distance commuter rail.  But Washington is using dedicated bus lanes to move people straight through the city without being constrained by other vehicles.  However, they do allow bicycles to share the lanes in some cases. 

#7 – Give bikes their own lanes.

Anyone who says it is hard to put a bicycle lane in Memphis has probably never talked to the guy who is in charge of doing it in DC.  There are one-way streets, bridges and roundabouts everywhere.  Yet they still manage to give access to bikers.  In one neighborhood, a wide one-way street was redesigned with a bike lane, a row of bollards, parking lane, three lanes of traffic and another curb-side row of parking.  Oh, yeah… bicyclers now have their own traffic lanes in the center of PENNSYLVANIA AVENUE! 

#8 – Offer exceptional public restrooms.

Bathrooms say a lot to some people about the community they are in.  I was moved by the design of restrooms throughout DC from The National Gallery of Art to the Library of Congress to the National Building Museum.  Government exists for two essential functions: to provide sanitation and safety.  When parks and public spaces lock, abandon or remove toilets it sends the message that the city cannot provide either at the most basic level. 

My wife was particularly fond of the unlocked toilets that we could count on anywhere, anytime ranging from Starbucks to local restaurants.  I broach this subject for one reason.  Memphis has tourist traps that hang signs stating clearly “No Public Restroom”, “For Customers Only” and “Out of Order”.  In our parks, bathrooms have been closed or replaced with porta-johns.

#9 – Mix things up.

DC neighborhoods are brilliantly mixed.  Historic townhouses next to modern office buildings.  Beautiful architecture contrasting with structures that were perhaps not the best idea but somehow it is okay.  Ten-story condos behind two-story houses across from six-story hotels down from eight-story offices.  This does not appear to be due to any design… not a recent one anyway. 

#10 – Hide the parking.

Parking facilities, whether lots or garages, are generally ugly.  They impede pedestrian activity and destroy the urban context of a street.  And, despite popular belief, obvious parking can reduce surrounding property values and stunt growth. 

With the exception of Nationals Baseball Stadium, it was close to impossible to spot any off-street parking.  Being a nerd, I looked.  I could find some cars pulled behind houses down alleys.  I could find ramps going to garages under buildings.  I could find an opening here or there that would lead to a structure behind something of actual human use.  I could find parking in the center of a doughnut with all of the buildings facing the street. 

But unless you look really, really, really hard, you will not see any of this.  It is as if there is only on-street parking in Washington DC.  And it is lovely. 

#10b – Go to Ben’s Chili Bowl

If none of this inspires you, go have an Original Half-Smoke with Chili, Onions and Mustard at Ben’s Chili Bowl.  The price is right, the service is great, the place is clean and the food is a welcome break from the seafood extravaganza found everywhere else.  Walk around the U Street area and experience how this neighborhood has continually reinvented itself while holding on to a few of its treasured institutions. 

This is what we must do.  Starting with what we can and working toward what is difficult.  DC has started and stopped, been built and burned, and had plan after plan after plan.  Sometimes things were accomplished in a year, sometimes in thirty.  But it was inspiring to feel the comfort in the people and their places, to see what can happen in short periods of time and to believe that some examples can be taken from their experiences.

I want our new consolidated metro government to have leadership that embraces fiscal, social and environmental sustainability.  I’d like this leader to have experience ensuring stability in property values.  And I’d like this leader to have vision for our community’s future.  After hearing the Germantown Mayor address the Memphis Kiwanis Club, I am putting a DRAFT GOLDSWORTHY sticker on my bumper.

Mayor Goldsworthy proved to me that she has an extraordinary understanding of government operations, budget management, constituent outreach and urban planning.  So much so, that I really would like her to reconsider her position on consolidation.  As well, I am asking all that have been critical of her position to try reaching out to her again.  I honestly believe that there must be more similarity here than differences.

Goldsworthy talks the talk & walks the walk

Mayor Goldsworthy eloquently spoke of Germantown’s past leaders.  She and her predecessors have been acutely aware of their city’s limited supply of land and growth potential.  Therefore they have managed development, costs and expenses in their community quite purposefully.

She stated, “Since we only have so much room for growth, we want everything to be of the highest quality.”  She talked about how this led to Shelby County’s first example of a Design Review Commission to ensure that all construction met exemplary standards and fit in with the area context and community plans.  Wouldn’t every city in Shelby County like this?  Couldn’t Memphis and Shelby County benefit from this mechanism to ensure investment security and neighborhood stability?  DRAFT GOLDSWORTHY!

Goldsworthy is a thoughtful manager

Mayor Goldsworthy rattled off an understanding of municipal revenues and expenses unlike any elected official I have encountered.  She talked about Managed Competition and other cost reduction techniques Germantown is actually using to run a responsible City Hall and keep from raising taxes.  Each time they think they are doing a good job, they research best practices and try one more time to do better.

Other than firemen and police officers, “Every department must come before a panel to justify filling vacant jobs because over time our needs change.”  Because she created a system that reduces departmental expenses and improves productivity, Mayor Goldsworthy has been able to expand public safety services, add police and increase patrol coverage.  Couldn’t Memphis and Shelby County benefit from this?  Wouldn’t this type of earnest drive for greatness benefit all of the communities that are touched by the newly consolidated area?  DRAFT GOLDSWORTHY!

Goldsworthy is a visionary economist

The Mayor talked about dealing with daily issues but repeatedly talked about looking forward.  She admitted, “no one worries when everything is new, but nothing stays new and we have to make sure we deal with aging neighborhoods before they are a problem.”  Germantown makes sure homes and yards are maintained.  Upkeep is never overlooked so no property ever slips into a deteriorated state.  This creates stability and security for every neighbor.

Sharon Goldsworthy spoke of best practices that she has gleaned by benchmarking with similar communities.  She seems to know what works and what doesn’t.

She also has a handle on the mix of uses that produce the optimum tax revenue while preserving the quality of life Germantown residents expect.  WHAT!?!  An elected official that speaks of planning and zoning?  A politician that not only has the guts to guide projects where the city wants them but plans for future projects and sticks to the plan?  This is unheard of.  Mayor Goldsworthy talked percentages of land area.  She knew that over 30% was public space, untaxed buildings, roads and infrastructure.  She knew approximately what percentage of retail and office space was needed to support that and benefit residential taxpayers.  She is seeking equilibrium in the existing developed areas and in the future of the yet to be developed parcels.  Wouldn’t we want this for all of Shelby County?  Couldn’t Memphis and Shelby County use a big fat dose of this medicine?  DRAFT GOLDSWORTHY!

She proudly discussed infrastructure, like water projects, being funded with today’s dollars but with benefits for generations to come.  She knew how many were being served and how many more could be and, most mindboggling, she knew why this information might be important to decisions made in City Hall.

Goldsworthy is a New Urbanism advocate

In her address, Mayor Goldsworthy even hit Smart Growth.  Yep, Smart Growth in a self-proclaimed bedroom community.  Mayor Goldsworthy seemed keenly aware that sometimes strip-centers outlive their usefulness or succumb to age.  She talked about some being repaired or rebuilt.  However, she also recognized an opportunity to knit different neighborhoods and municipal buildings together around a higher-density, mixed-use town center.  In place of some car oriented shopping centers could someday stand new urbanist communities that celebrate old Germantown and new Germantown.

Whitehaven, Raleigh and Cordova are all screaming for this while someone is planning for it in Germantown.  She is talking about doing exactly the opposite of what the criticized Overton Square developers were… adding urbanism NOT suburbanism.  DRAFT GOLDSWORTHY!

Mrs. Goldsworthy talks about including the public.  She speaks of the community’s vision, of public planning and of the city’s direction in deeply personal terms.  She sounds like she knows how to listen, enjoys learning and isn’t timid about educating citizens.

And she does it all for $24,000 a year (or about 16% of the Shelby County Mayor or 14% of the Memphis Mayor).  So I’d like her on my team… or I’d like to be on her’s.  Plus we could offer her 10 times as much money to be Metro Mayor and still see a significant savings!

Put these principles in the new charter

I don’t know from where her opposition to consolidation comes but I think Mayor Sharon Goldsworthy must be a wealth of experience and knowledge.  Persistence and vision.  She has presided over a town with design and sign standards.  She has managed a budget with techniques that sound masterful.  She has handled investors that want to bend the rules, neighbors that don’t like meddling and jokes from outsiders… and in the process created Shelby County’s most sought after address.  She hires strong people to help plan the future, manages a proud team and isn’t afraid to unload expenses that lead to tax increases.

She believes in her community as a place where you don’t ever have to say clean, safe and stable.  Office investors want to be there, or close by.  Residential investors make money there.  Shops wait for storefronts to become available.  Because, like it or not, Germantown in many ways sets the highest standard around here.

Isn’t this what most of us say that we want for Memphis and Shelby County every day?  Don’t we all deserve this?  Shouldn’t we all demand it?

I wish Sharon Goldsworthy would become an official advisor to the Charter Commission that is working on the consolidation issue.  I wish they’d listen to her ideas and write some of them in the charter.  Then maybe we all could go pull the lever for Sharon Goldsworthy to be our first Metro Mayor.

Instead, I believe new taxing proposals, like the Value Added Tax (VAT), are providing the wake up call.  Americans have been fine with spending our grandchildren’s money for what we want today.  But, we are suddenly appalled when a proposal is floated that suggests we pay for this stuff ourselves.

While I believe we should not spend more than we have, I do not like the VAT.  I fear that the VAT is philosophically wrong for America, functionally wrong for states and potentially devastating to cities like Memphis.

The VAT just feels wrong

United States taxes on individuals are largely transparent.  If I make $45,000 a year I know I should pay about $7,000 in taxes and the guy working next to me is probably paying about the same thing.  What I pay is written on my check stub and I have to sign a tax return at the end of the year.

The VAT is a multi-layered sales tax levied on every stage of manufacturing.  This will cause the costs-of-goods-sold to increase.  And I don’t get to see any of this on the check-out receipt at the register.

The VAT competes with the funding mechanism of many states

In Tennessee, we already have a 7% sales tax on everything.  If the cost of products begins to grow due to the hidden VAT, then that 7% starts to look like a pretty big number.  Because in Tennessee, we have to print taxes on the receipt for the sole purpose of providing transparency regarding what our government is taking from us.

A VAT may provide a short term boost in revenue for government but it represents an effective immediate pay cut for every shopping Tennessean.  As well, lower tax rate states that surround our skinny territory start to look like much better shopping destinations as the costs of taxable goods rise.

The VAT goofs up the entire local system

Despite the rise of creative industries, every economic developer still salivates over manufacturing plants and the ancillary businesses that support them.  If products begin to cost more because each stage of manufacturing is taxed, companies will consolidate functions to reduce these taxable stages and may ultimately move even more of their operations to districts with lower taxes… overseas.

Killing manufacturing does not just disrupt a few evil big corporations.  It eliminates a web of small, locally owned businesses.  Nissan, for instance, builds cars.  A local company close to the plant builds the frames.  Another local minority company electroplates the frames.  Another locally owned distributor stores and trucks the frames to the plant.  I think the VAT will eventually make this disappear.

In Memphis, a bolt & screw company makes a part for a self-propelled lawnmower.  Barrels of these parts are shipped to Tupelo, where the mowers are assembled with a bunch of other parts made in this region.  Then the mowers are sent to a warehouse in Memphis until they are shipped to hardware stores around the country.  The VAT (a tax on each of these stages) will force the lawnmower company to reduce the number of steps in the process, make fewer parts in this area and possibly build their mowers in Mexico, for instance.  If you build them in Mexico, why not ship them from Mexico… goodbye to America’s Distribution Center?

Retail taxes may equal retail destruction

Over the last five or ten years, America has had one huge advantage.  Due to our dollar valuation and due to our tax rates, retail has become a leading industry.  Tourism is being driven by foreign travelers who want to come see Graceland, tour the National Civil Rights Museum and shop.  Because European countries have versions of the VAT, it is cheaper (or at least enticing) to buy a plane ticket, rent a hotel room and shop in America!

And since we have already been losing manufacturing jobs due to other factors, crashing our financial services market and bankrupting our governments, in many ways mall jobs are some of the last positions to aspire to.  That will be severely damaged by the VAT.

Multiple tax streams are necessary but new mechanisms aren’t

I know multiple tax streams produce economic stability.  When property values are down, it is nice to lean on sales taxes.  When sales taxes wane, it is nice to have income taxes to keep the schools open, fire trucks running and police on the street.

I also recognize that existing income taxes are largely a middle-class mechanism.  Property taxes, in Tennessee anyway, disproportionally impact middle and lower income homeowners.  Sales taxes are fair in the sense that everyone pays but those at the lower income levels only have so much to give.

But at what point do we stop just adding new revenue streams and look at a rational approach to providing a fair, stable system?  When do we realize that there are always unintended consequences every time we just roll out a new expense then desperately grasp to find some way to pay for it later?

Rather than staff reductions, program restrictions or policy reviews, we may be offered a multi-layered sales tax on every stage of manufacturing.  Instead of department overhauls, efficiency studies and productivity programs, we may be offered a new tax that will increase the cost of goods sold without having to display the taxes paid on the receipt.  Instead of comprehensively looking at an entire system of taxes and spending, we may be offered a way to temporarily raise revenues through a mechanism that will stick it too those who can least afford it.

Maybe it’s just me but I think we need to spend less before instituting new taxes.

I am so pleased that after decades of some people screaming about the national debt, an administration has finally become interested in doing something about it.  I just fear that raising revenues through a tax on one of the most devastated American sectors is the wrong first step for local economies and for the country as a whole.

If you have been following the construction of the I-269 loop surrounding the outskirts of the Memphis region, you know that one of the primary tools of disinvestment causing, tax revenue depleting, character sucking suburbanization is well on its way.  This highway will make Sam Cooper look like New Orleans’ Decatur Street, the 240 loop look like the Parkway System and 385 look like the Champs-Elysees.

Couple this with an expansive and complete network of sewer expansions throughout Shelby County ready to hook up the rest of the fleeing Memphians, a government who has demonstrated no backbone for protecting the tax base or improving inner city life, and land barons itching to start cutting new deals for more roadside “development”… we find ourselves on the precipice of a catastrophe of epic proportion.

A recent MPO Imagine 2035 presentation of a “Business As Usual” scenario all but confirmed this… or at least the public discussion did.  While our regional population is growing at a tiny annual rate and we are losing population in working-age and educated demographics, we continue to gobble up land at a ridiculously amazing rate.

Therefore, we spend more time commuting in the car than many other cities.  We spend a disproportionate amount of our income on transportation.  Our property taxes are higher because we have to pay for services to the space between destinations.  We have traded any sense of predictable traffic patterns for a spider web of periodic gridlock.  We have destroyed any sense of place that existed in historic neighborhoods, have overbuilt then abandoned second-tier suburbs and started building new communities that are 100% auto dependant because they connect to nothing.

So what is there to hope for?  What is left for those of us who are desperate to see riders on the trolley, people walking to the park and pleasant neighborhoods that rank with communities we are competing with for talent across the country and around the world?

High gas prices!

I know this is a long way off and may never really materialize.  Peak oil theories may not be scientifically sound.  Instability in the middle-east may be a thing of the past.  Hurricanes in the gulf may never touch another platform.  Nuclear plants may never replace oil refineries.  But these things are more likely to happen than the stars aligning to force local leadership to guide us into any alternative direction.  High gas prices making it stupid to drive 30 miles a day for work, 10 miles a day for family activities or five miles to a grocery store… this is all we had left.

Gas prices were supposed to go through the roof.  Then people would start wanting to live near the office and some cute shops would pop up down the street and junior would walk by the barbershop on his way to a baseball game.  America would be America again.

But now this.

Cars that get 100 miles per charge.

Chevy’s is supposed to go over 40 miles on a charge.  Mitsubishi’s could go 90 miles.  The Nissan Leaf is leading the way with 100 miles per charge.  Well, that’s just great.  Instead of fuel costs teasing people back to more dense cities with an abundance of pedestrian options, we can drive even farther for cheaper!

In Houston, Nissan is partnering with Reliant Energy to ring the city with charging stations.  Other deals are in the works from Orlando to San Diego.  Just imagine; someone could live outside of L.A. and almost commute to San Diego, or live in Tampa and commute to Orlando.  And, they’d never have to buy gas.  That sounds neat, if you enjoy driving.  But what if you don’t?  Neighborhoods will still be popping up farther and farther from core cities where land is cheaper and cheaper.  The phrase “drive until you qualify” will take on new meaning when you remove the cost of gas from the equation.  You are in big trouble if you don’t like life behind the wheel.

Closer to home, a company called Ecotality has received a $100 million loan from the U.S. Department of Energy to construct a system of over 2,000 charging stations in Nashville, Knoxville and Chattanooga.  I find it peculiar that one of the State of Tennessee’s single largest investments in highway infrastructure may be in the Memphis area but they didn’t think to link it to electric cars… so we can look forward to being spread out, inefficient and expensive while still driving gas guzzlers.

Unless we do something really cool.

Since Memphis is being left out of the electric car charging infrastructure while being asked to commute farther than anyone in the State of Tennessee, why don’t we use this as an opportunity to try something different?

Instead of agreeing to drive, drive, drive, why don’t we demand an alternative?  Why don’t we just redevelop our inner city where we already have all the stuff and walk or bike every once in a while?  Okay, that might a bit radical.

Why don’t we build our own electric vehicle charging infrastructure?  Why don’t we put charging stations in a system of town centers to encourage people to identify with their neighborhoods and not have to drive quite as far all of the time?

We could put charging stations in areas that are strategically positioned to be employment destinations or cultural destinations to encourage people to develop a pattern leading to a cohesive transportation strategy?

I am not sure what the answer is.  I do know that if we just chill out and watch, we will see more and more 25 to 40 year old college graduates get in their eco-friendly electric vehicles and drive away to another city where, oddly, people spend much less time in the car.

To Steve’s Tire and Auto on Poplar Avenue:  I am sorry.  Your crew has replaced tires, repaired breaks and been a terrific example of customer service.  I can’t believe I considered someone else.

To my neighbors:  I am sorry.  We live in a neighborhood close to everything we need.  I can’t believe I risked damaging that by taking my business across town.

To my city:  I am sorry.  For all of the moaning I do about building community and connectivity and supporting the hometown… I should really set a better example.

My wife’s car needed brakes and like any good husband would, I agreed to handle it.  Plus, I had a $20 gift certificate to Christian Brothers Automotive that I picked up from a U of M event they graciously sponsored.  The coupon had multiple locations on it, so away I went heading toward the corner of Germantown and Winchester Roads.  The traffic was as expected; I knew this would be a long trip.

Where did everybody go?

I rolled passed what must have been a million square feet or more of empty shopping centers, free standing restaurants and parking lots.  Not blighted in the traditional sense.  No boards on the windows or graffiti on the walls.  Just vacancy.  Abandonment.  Miles of it.  It was as if people were mysteriously transported somewhere else by aliens or war or famine, leaving behind perfectly good storefronts.

On Winchester alone, I saw where Kroger and Best Buy used to be.  I passed two former K-Marts and what looked like a half dozen empty Applebee’s before finding my destination (or what I thought was my destination).  I couldn’t find Christian Brothers Automotive.  I found a Coleman Taylor and an Express Oil Change and a few other places that could probably take care of my wife’s brakes.  But I never found the place offering $20 off.

So, I headed back to town.  I had already burned up a few dollars worth of gas and fair amount of time.  No need to make things worse by driving in circles.  Plus, I had not yet really cheated… right?  Perhaps it doesn’t count if you never actually make it to the date.

This place is a zoo.

I eventually hit Madison Avenue.  The guilt started to set in the second I saw Mercury Valet Cleaners.  What would they say if I snuck around taking my clothes to someone else?  Then I passed an old stand-by, The Bar-B-Q Shop, and the brand new restaurant, Fuel.  They are working to make my neighborhood special, shouldn’t I?  I turned toward Poplar and quickly noticed Café Society, one of our favorites.  I also spotted the renovated and expanded Joe’s Liquor.  Would I drive to Winchester for wine?

I pulled into Steve’s Tire and Auto and walked in as if nothing was going on.  I explained the brake issue, handed over the keys and then was offered a ride if I needed one.  Funny thing… I didn’t.

I walked out the front door debating what I could do for breakfast.  I passed on CK’s Coffee Shop and chose to grab milk and donuts from Circle K.  Why a convenience store?  Because it was across the street from Overton Park.

I sat in the park, read my newspaper and ate donuts.  That is until my sister called.  Within minutes, she and my two nieces were meeting me for a day at the zoo.  I don’t know what you do when your brakes are being repaired but, from now on, I go to the zoo.  I walked out of Steve’s and found myself at the sea lion show!  Where else can you do that?

Please don’t leave me!

The day turned out to be marvelous and the car is running fine.  I don’t know if Steve’s brakes are $20 more than the other place.  And, I am sure Christian Brothers would have been fine when I figured out where they were.

I do know that I don’t want my neighborhood to look like Winchester.  I don’t want new businesses to think I take them for granted.  I don’t want old buddies to close their doors and disappear.  I don’t want to miss out on waving to the dog walkers and Frisbee throwers and stroller pushers when walking from the garage to the zoo to my house.

I hope my apology is accepted.  I look forward to replacing the tires soon.

Several years ago cities thought they were in crisis.  Revenues were falling, expenses were growing and emergency funds were depleted.  Some aggressively changed tact, or challenged people or cut costs.  Most waited it out hoping the storm would pass.

Memphis has an opportunity to use our budget crisis today to reform our system for tomorrow.  Examples from peer cities and from visionary business practices could set the stage for Memphis to emerge stronger.  But only if hard decisions are made, bold initiatives are completed and basic principles are developed to guide us in good times and bad.

We cannot retreat, putting this off on the next generation or even the next administration.  Let’s tackle this today so we can enjoy tomorrow.  Let’s take our medicine; otherwise we will keep getting sicker.

Cuts Are Inevitable

CityMayors.com posted this in 2003: “As a result of an increasing squeeze on municipal budgets, many US cities and towns are cutting staff and services and increasing fees.”

According to a survey by the National League of Cities, the biggest negative factors affecting budgets were: costs of city workers’ health benefits (cited by 63%), costs of city workers’ pensions (30%), reduction in state aid (29%), the local economy (25%), and infrastructure needs (25%).

In response to the deteriorating fiscal condition of cities: nearly half (47%) of all cities increased fee rates in 2003, 30% reduced city employment, 29% imposed new fees or charges on services, 21% reduced actual levels of capital spending, and 11% reduced city service levels.

The cities that reacted with great enthusiasm then, may not be panicking as much through the current crisis.

The Streetsweeper Theory

We have to ask why we do certain things the way we do them.  An easy example is streetsweeping.  Has anyone ever wondered why some cities operate streetsweepers at night and others do it during the day?  I once took over a program that ran a streetsweeper between 9 am and 5 pm.  Public trash cans were emptied.  Weeds were cut.  Flowers along the sidewalks were planted and watered, while the sun was shining bright.

Some might just say, “Yea for sweeping the streets!”  Those people had not seen the budget.  It was unsustainable and it was costing other programs like public safety and economic development, as more and more funds were diverted.  We had to ask, “Is our goal to have a great looking downtown or is it to look like we are trying to have a great looking downtown?”

Streetsweepers run at night because cars aren’t on the street and people aren’t walking along the sidewalk.  Some cities run sweepers during the day precisely because people are around to see what they are getting for the money.

By changing the system and putting our crews out from 5 am to 7 am when everyone was out of the way, we accomplished far more impressive results.  Expenses plummeted.  Efficiency skyrocketed.  And the place looked amazing.

However everyday for about a year, a different property owner or elected official would call.  They were enraged that our streetsweepers were gone and couldn’t believe how we were wasting their money.  We stuck to our guns and over time (and with a bit of campaigning) the public caught on to the change and how cool the end results really were.

This is, of course, a most simplistic example.  I know many of our troubles are tougher to tackle.  But picking apart every initiative to get to the why, is what we have to do.  When we look strategically at the service and what it is intended to accomplish, we may not have to debate funding verses firing.  We may find ways to improve performance, doing a better job for less money.

What To Do

1. Improve customer service today.  This is cliché by now but a culture of great customer service brings costs down while driving customer satisfaction up.  Do something extra and unexpected and smile while you are dong it.

2. Look to cities that beat us to the punch.  Some cities started changing their budgets and attitudes in 1993, others in 2003 and others in 1953.  We have to start expecting responsible government at all levels of our community but that doesn’t mean we can’t look to others for help.

3. Hire real estate managers… good corporate real estate managers… to manage everything.  Great real estate investors understand the balancing act between reducing a property’s expenses, generating new revenues and keeping existing tenants from moving out.  This is honestly and exactly what our government is facing.  Commercial real estate has trained an army of managers who could easily use their talent with building portfolios to improving the portfolio of our city assets.

4. Stop thinking about the money and start thinking about the performance.  Cutting is one strategy.  Raising new funds is another.  Delivering a better product almost always wins… even in government.

Where To Start

Phoenix is known as America’s Best Run City.  They have long had one of the best government websites.  An academic case study was done by Janet and Robert Denhardt entitled – Creating a Culture of Innovation: 10 Lessons from America’s Best Run City.  Phoenix takes pride in customer service, looks into the future to prepare for challenges, empowers both the public and its employees, and confidently stays the course because they have laid a solid foundation.

Minneapolis has started to think strategically about everything it does.  Cost-benefit analysis may not be what they call it, but that is what they are doing.  They are attracting business and revitalizing the inner city by making one strategic change.  Mayor Rybak recognized that the usual suspects in their incentive package were driving expenses in areas that hurt the economy of the core city.  He didn’t take any incentive off the table and may have actually added a few.  But he did state very boldly that Minneapolis would no longer give incentives to business to do whatever they wanted to do.  He would only entertain assistance to companies that would provide development that was beneficial to the city, in locations where it was needed, fit strategic goals and didn’t cost his people more than they were going to get in return.  If this means losing a business to a neighbor or distant competitor, he figures it is better to burden their citizens than his.

What To Read

There are voluminous business textbooks on strategic marketing and production management and operational efficiency.  If you have time, go get an MBA.  But for now, you may just want to take a weekend and read two, more simple books.

Ken Miller has a 124-pager called We Don’t Make Widgets – Overcoming the Myths that Keep Government from Radically Improving.  If you don’t get the point by page 12, other people and their systems aren’t your problem.

Despite the most cumbersome title in history, Michael J. Lipsey has distilled a wide range of revolutionary changes for customer service in the 191-page Tenants or Guests, Brokers or Clients, Vendors or Partners.

These should inspire you to look deeper, as well as to act on something today.

On March 24^th a Sinkhole appeared on I-240.  Helicopters soon hovered above, reporters descended on the scene and traffic was snarled throughout East Memphis.  Approximately 48 hours later, repairs were complete, the emergency subsided and our city went back to business as usual.

In a coup for Smart City Memphis, I have the obtained the first post-repair interview with The Sinkhole itself.  The Sinkhole speaks, on the record, sharing its experiences, thoughts regarding the greater sinkhole community and offering insights into life at the bottom.

JL: How are you feeling?

SH: Amazed and relieved.  I didn’t expect to be feeling good as new so fast.  It was a wild ride.  Who knew that a simple Sinkhole could grab so much attention?  I’m glad no one was hurt, had a pretty good time and feeling relaxed now that things have calmed down.

JL: You seem surprised that this was over so fast?

SH: Well, it’s not like I’m the only Sinkhole around.  With the way other sinkholes get taken care of, I thought I might just be told to change my name to Pond or Ditch.  You remember that sinkhole Downtown a while back?  Amtrak couldn’t stop in Memphis for months.  But you mess up a bunch of commuters and I guess you get real popular.

JL: What was the damage, by the way?

SH: Oh I figure about 60,000 people roll past here each day.  Some from out of town, others going to work, some just cruising the loop.  I bet I ticked off 100,000 people.

JL: Sounds like a lot?

SH: Not really.  My sister-in-law, Education Sinkhole, probably deals with over 300,000 students every day.  If you tack on 600,000 parents and a big-ole community that is going to need these kids to be smart, that is a pretty big crater.

She is sure mad right now though.  Half the time she thinks she is more important than any other sinkhole in town.  We tell her all the time that she gets all the money anyway.  But she swears the future is tied up in her and if I can get fixed in 48 hours, surely someone could do something with her.

JL: What did you tell her?

SH: Nothing.  My cousin, Middle Class Sinkhole, butted in.  I told him he wasn’t really a sinkhole and to mind his own business.  He wanted to know what you call it when a bunch of people funnel out of one place and settle in another.  He says I don’t pay any attention to him because he’s been sinking since the 50s.

I only talk to him because he has a bunch of young friends.  All 25 to 35 years old.  Hard to keep up with them though.  They’re not just moving around this area.  They are dropping out of this region all together… you want to talk about a major sinkhole?  I think over 20,000 of them have disappeared since 1999.

JL: You sound like this bugs you?

SH: Doesn’t bug me.  48 hours.  I got fixed in 48 hours.  Education affects millions and can’t get any attention.  Flight is in your face and no one is even trying to do anything about that.  I’m on the highway, man.  I have no complaints.  Plus, this town is loaded with sinkholes and I can’t worry about all of them.

JL: You know some on Smart City Memphis have concerns about our city budget?

SH: Worry away.  I have Washington money and Nashville money.

JL: What would you think if the money used to take care of you was used on a much bigger, newer highway loop?

SH: Ain’t gonna happen.  They said my highway was critical to solving all of the nation’s traffic problems years ago.  They said it had to be here to address growth in this community too.  They are not letting anything happen to that.  I am secure.

JL: I know, as a sinkhole, that you may not know what’s happening with new concrete.  What if I told you that 20 miles on every side of you, hundreds of millions of dollars were being spent to build a new version of your highway specifically to solve all of the nation’s traffic problems and address growth in this community?

SH: That’s crazy.  I just told you Memphis has a bunch of other sinkhole problems.  Most of those are caused because of population decline not increase.  Are you listening?  What would we need all that new highway for?  Unless you just want to fix a bunch of new sinkholes?

At that point, our interview was interrupted by attorneys from the Department of Transportation who asked us to submit a written request for information and to get moving.

And I felt that we Memphians better be ready to demand attention from Nashville one way or another through the remainder of the campaign and beyond. The words in this withdrawal pointed out to me Memphis’ importance to this state, its precarious position in its own history and the neglect it often suffers.

Lessons in Leadership

Set Goals

“We have had a specific campaign plan which called for a budget of $2.5 million – Our initial goal was to have at least $1.0 million of that by the end of 2009.”

Keep Trying

“We fell significantly short of that goal. We then set a goal of having at least $1 million by April 1 of this year.”

Accept Responsibility

“My primary responsibility was to successfully convince enough people to make that investment. To the extent we failed, it was my failure.”

Recognize Others… Even Competitors

“Since State Senator Jim Kyle and I have both withdrawn from the race, we have no candidate from my own community of Memphis and Shelby County or who understands personally its unique needs and opportunities.”

Summary of Universal Issues

“We have crime driven by gang activity and drug trafficking which cries out for changes in our state sentencing laws. We have one of the largest urban school systems in the nation with the urgent need for reform. The University of Memphis is a unique urban research university which is being overlooked by state government and deserves its own independent governing board. And state government needs to end its neglect of the University of Tennessee Center for Health Sciences and The MED.”

While many of us on Smart City Memphis have discussed these issues that the State of Tennessee should be addressing, it is rare to have them summed up and laid out so neatly in one paragraph.

Inspiration

“I hope the other candidates of both parties will work to learn more about the community I love. I’m looking forward to continuing my service as district attorney in Shelby County, our state’s largest jurisdiction. I’ll go to work every day determined to make my community an even better place in which to live. And I will continue to push aggressively for needed changes at the state level in our criminal justice system.”

Bill Gibbons may not have been the right politician in the right place at the right time to move this state from the Governor’s office. But we better follow his lead by doing what we can with what we have while we’re able.

I hope that our local leaders are listening and then acting. Mayor Wharton doesn’t shy away from Nashville or Washington and I hope our many other leaders are prepared to join the team. Taking action on problems in which the state should intervene will only be successful if galvanized and demanded by those we have elected from this community.

I hope that our local candidates are prepared to work like never before. Bill Gibbons said it best, “A statewide campaign in Tennessee is not for the faint-hearted.”

If you are running for Mayor or Commissioner or School Board or Dog-Catcher, you will have to campaign for Memphis at the State level. I hope your local vision is backed up by enthusiasm and unwavering strength.

Be the Squeakiest Wheel

It is easy for legislators and the Governor to work with Nashville. They are there all day, everyday. They watch Nashville news. They read Nashville papers. They dine in Nashville restaurants with Nashville leaders, business owners, citizens and lobbyists.

MEMPHIANS BETTER START SQUEAKING!

Like Gibbons, we need a goal and a heavy agenda to take east.

We need to keep trying when we aren’t being heard.

We need to accept our inadequacies when we fail, make some adjustments and then we need to try again even harder.

We need to build coalitions across our boundaries and rally together to solve the issues that we must, while forcing the State to step in when its authority is required.

We have to believe that crime and education and community health can be tackled, then run at real solutions with all of our might.

Our business leaders know this. Our elected leaders know this. Our citizens know this.

I’d like to take Bill Gibbons’ words in defeat as a rallying cry for the rest of us to make the next big push to band together and succeed. The first victory is being heard. A purposeful Memphis will have to speak loudly to Nashville with one voice. A determined Memphis may have to leverage our strengths and call in our favors just to get to the table. But we must begin moving toward our seat and shouting about what we need.

Making sure anyone with a tie to the Capitol hears what we are saying is the first step in making them realize that we can no longer be ignored.