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A NEW CENTURY
 

II: THE CHANGING FACE OF.... INDUSTRY

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Merging C-U would be giant leap toward progress
By ROGER ROBERSON

   Local governments can have a huge effect on business, both positive and negative.
   Everyone in business knows that there is no free lunch, but they do expect sensible, fair and logical treatment out of government.
   When businesses make large changes, they want the local government to partner with them and assist in the expense.
   For example, when a business builds a new office building or plant, the local government can allow for a sensible tax abatement, say three to five years, to help the business offset some of the moving and structure costs.
   The business is making a long-term capital investment with a large cash outlay. This investment increases the employment level of the community by adding new jobs. These jobs make the community stronger and the tax base larger, increasing the amount of money the city can spend on infrastructure, which in turn, will hopefully attract other businesses, and the spiral goes upward.
   Because that property is going to be on the tax books for years and years, the tax abatement is short-term help for a long-term asset to the city. The government-business relationship becomes like a partnership.
   Champaign has done a good job at helping, while some of the other local governments haven't done so well. If you look at the tax base, it speaks for itself.
   My business was involved in moving from one city to another, only 11 miles away. The local government of Farmer City didn't want us to go and did almost everything they could to keep us. Their mistake was made years before by giving a long-term lease, without any type of out, on city-owned property to people (the Fair Association) who could not care less if the city gained or lost a business.
   Hindsight is perfect. My guess is: Farmer City would never sign that type of lease again.
   After looking all over the country, we decided to stay in the area, even though many government bodies understand the government-business partnership. It seems the larger the city, the better they understand it. City governments that don't understand seem to deteriorate over time.
   My business is now located in Mahomet. Mahomet officials were very fair and cooperative with us, but couldn't get one of their taxing bodies to cooperate. It almost cost them our business, even though it wasn't their fault.
   This points out the importance of local governments getting all their parties on the same page of the hymn book before courting businesses.
   Local governments should stay as cooperative with business 20 years later as they are during the courtship period.
   Like a marriage, it takes a lot of time and effort by both partners to make it work. Governments, by nature, seem to get tied up in bureaucracy and become inflexible or at least immobile.
   For businesses to stay profitable, they must change and do it quickly or be taken apart. Local governments also should accept the importance of being able to change and do it quickly. They should adopt the philosophy of "If it's good for business, it's good for our city," rather than "If it's good for the city, it's good for business."
   I have always run my business believing that if it is good for the business, it's good for the stockholder. Businesses run by "If it's good for the stockholder, it must be good for the business" don't usually last too long.
   Governments managed by the philosophy of "Good for the citizens and business, good for the city government" would be leap years ahead of others. The problem is that if city governments don't manage by that philosophy, they don't die or go out of business. They just plod along at the status quo, until they begin to deteriorate.
   I think our local governments are currently successful but are struggling. They could take some steps toward excellence.
   Combining the city governments of Champaign and Urbana would be a giant step of progress. Or we can remain at the status quo for a while longer.

   Roger Roberson owns Roberson Transportation, which was the subject of a drawn-out battle between Farmer City and Mahomet. Mahomet won, and the company now has headquarters there just off Interstate 74.

   The News-Gazette welcomes comments from readers on the issues raised in this article. Please send your comments to: Editor, The News-Gazette, 15 Main St., P.O. Box 677, Champaign, IL 61824-0677. Send comments by e-mail to news@news-gazette.com.

 
     
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