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WHAT’S UP IN NEW DEVELOPMENT
One assertion that's often heard is that government ought
to run like a business. It would certainly make current bud
geting a bit less problematic if our governments were running
profits comparable to oil companies and banks. It'd be impos
sible to get all the way to a totally business-like government,
given that there are certain responsibilities that a government
has to its citizens, and certain services that must be provided
in an equitable manner. If a government did run like a busi
ness, it would charge for every service, and there would be
strange complications, as in the city of South Fulton, TN,
which provided fire protection services to residents of nearby
unincorporated areas for a fee. When one resident didn't pay
his fee, his house was allowed to burn to the ground.
So, there may be some services that will always be a fun
damental duty of government, but are there others that might
be made to be more financially sustainable? Imagine SPLOST
and other capital projects made more sustainable by including
not only the money to build them, but also an operational
endowment. Take a relatively low-impact facility like a park
or greenway: with a ratio like $1 of endowment for every $2 of
capital expense, the annual interest earned could be enough
to sustain the maintenance of that facility in perpetuity, and
could potentially grow faster than operational costs inflate,
allowing the facility to begin funding its own capital improve
ments in the future.
Privatization is a word I'm usually wary of, especially when
it comes to some traditionally public entities like schools,
jails and law enforcement (see Atlanta's troubles with parking
metering if you want to feel better about our local trifles), but
there are some things that it might make sense to privatize.
Facilities like the Morton Theatre or the Lyndon House could do
very well moving under their own sails, and there are certainly
many precedents for private, nonprofit art museums and the
aters around the country. Taking the politics and bureaucracy
out of booking events and shows at facilities like these could
not only save money, but also make them much mere dynamic
contributors to the downtown scene. The Morton, anchor
though it is of the Hot Corner neighborhood, is anything but
lively, and is closed many nights a week. Suppose a private
business were to lease that space from the city, booking shows
many nights a week and fully utilizing the retail spaces on
the ground floor with active businesses?
The amount of government-owned land in this county has
always been seen as a big problem. But with much of the
government land in the downtown area, especially, there's an
opportunity for ACC to profit a great deal from putting it to
productive use—as the River District proposal put forward by
the Economic Development Foundation suggests. Part of that
proposal also includes an economic development loan fund,
another initiative that could not only pay for itself, but gener
ate a profit that could be paid back into the community.
There are many other sites beyond that one, though, that
could be put to such uses, many of which are located at key
intersections around the community, left over from street
realignments. Imagine new corner stores on some of those
sites, with ground leases used to contribute
to area improvements, not only jumpstarting
walkable commerce with a rippling effect to
surrounding properties, but also returning
funds back to city coffers. Other opportuni
ties include bringing private enterprise into
public domains like parks, similarly activating
underutilized public assets while bringing
in funds for operations. There are tons of
precedents around the country for elements
like restaurants in public parks; perhaps we
should be looking at places like Dudley Park
in the same way. Our Greenway, with its
linear biking trails and river, could perhaps
be an excellent home for a private outfitter,
leasing kayaks and bicycles to tourists.
The resource of abundant parkland is also
interesting in light of the rising interest in
urban agriculture. Many cities have long
waiting lists for spots in community gardens,
with substantial membership fees. Beyond
that, there is the recent introduction of
sheep on campus to graze down invasive spe
cies. Perhaps as that model is developed, and
economies of scale kick in, it might become
a profitable enough venture that the city
could significantly reduce maintenance costs
by allowing urban shepherds to come in and
clear weedy areas. Central Park had sheep
grazing a large meadow until the 1930s,
before they were moved to a more rural
location—primarily due to concerns about
hungry Depression-era unemployed eating
the animals.
Our parking issues downtown could also
use a similar lens. While tweaks in policy
regarding who can park where and for how
long have the potential to influence down
town patrons' habits, we shouldn't be afraid
of talking about downtown parking for what
it is: a significant revenue stream that will
grow immensely over time. Some initial investigation I did sug
gested that with increases in space supply as downtown grows,
and with even a much more modest increases in parking rates
than currently proposed, something in the vicinity of $100
million (after management and borrowing costs on a bond)
might be available over 25 years. That money, if reinvested in
downtown for new streetscapes (wider cafe spaces with brick
pavers rather than cracked concrete, anyone?) and ideas like
the River District to bring new major employers, could really
get Athens moving. It would also help downtown businesses
more directly by tying meter revenues directly to the district.
Currently, 85 percent of metering profits are dumped into the
general county budget, disconnected from their source.
As long as we go year-by-year, putting out budgetary fires
as they come, we'll never get anywhere, and likely remain the
nation's poorest urban county for a long time. If, on the other
hand, we invest in a long-range plan to make Athens profit
able and prosperous, and lay everything out on the table, we
might be surprised by the dividends that come back.
Kevan Williams alhensrising@flagpole.com
Some local government entities, like the Morton Theatre, might benefit from some form of
privatization.
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