Economic Development 101

In my last post I introduced the topic of Fullerton’s latest foray into “Economic Development” a term that really refers to the idea that a city can generate more sales tax revenue through its ministerial efforts so that it can hire more people and pay them more money.

This is the old California Redevelopment mantra that was used by cities across California for decades to hand out land, cash, and favors to chosen developers and retailers. Nowadays, there’s really only land to give away as we saw in Fullerton with the abysmal “Tracks at the Tracks” project that ironically handed away millions of dollars in potential up-front revenue that might have balanced our budget in 2025 all by itself.

I thought I would spend some time reviewing the Kosmont Companies report and watching our esteemed City Council’s review of said “Retail Market Strategy.” To say that I was underwhelmed would be an understatement.

The report is 90 pages long. 95% of it is data mined from some source which tells us nothing an ordinary person couldn’t fathom all by himself – like on-line shopping is a big problem – and which seems almost disconnected from the recommendations on pages 11-13.

I have to wonder about the source of all this tsunami of numbers and even their validity. One side-by-side pair of graphs was particularly dubious.

Somehow triple net rents in Fullerton spiked, even as vacancies soared. Meanwhile in the broader areas of Orange County, including neighboring towns, vacancies somehow dropped during the worst of the Covid pandemic. And in Fullerton the graph shows, rents stabilized, even dipped in ’21-’22 even though demand apparently skyrocketed. I’m not an economist but this sure looks like pure nonsenso-data to me.

Anyway, the recommendations are just a boilerplate laundry list of ways to spend money, and a lot of it, to hopefully make money. I’m sure Kosmont uses them over and over again in every “study” they perform. Here they are. Enjoy:

What a load of consultant bullshit-jargon leading to the inevitable conclusion that Fullerton needs to hire more people in order to pay for the ones we already have. If we look at these recommendation we see the old Redevelopment lingo writ anew – collaborations, outreach, improvement districts, façade improvements, “thematic” sidewalks, way-finding, public art. Don’t forget enhanced customer service! And of course collecting data (probably through the kindly and expensive offices of Kosmont itself). But is there a single mention of a public accountability program by which the people of Fullerton and their elected representatives can determine if money blown on this nonsense even paid for itself? Nuh-uh.

And of course Kosmont’s “study” diplomatically avoided mentioning Downtown Fullerton’s million dollar budgetary sinkhole, supporting the myth that it is an asset instead of a decades-old liability. Maybe they think thematic sidewalks will clean up the clientele.

The Council’s reaction to this consulto-gibberish was utterly predictable. Ahmad Zahra, who must have peed himself in excitement over Action Item 12 was completely on board and vocally supported the need to increase “staffing levels” to accomplish this laundry list of pabulum. He believes that art tourism, and all of Fullerton’s museums can pave the way to success. His accomplice in stupidity, Shana Charles was all giddy, too, and pointed out the inescapable link between economic development and Fullerton’s “urban forest” whatever that may mean.

Bruce Whitaker mentioned that he was a follower of somebody named Jane Jacobs and supported organic economic development. A wise position, but one completely at odds with his recent approval of the idiotic City-driven apartment/hotel boondoggle that flushed millions and millions right down the municipal commode.

In the end nothing specific was decided and the Council moved on, no one having bothered to find out, presumably because they didn’t care, what this 90 page report cost the taxpayers of Fullerton.