Russ Steele
Rumors are circulating the Grass Valley is having financial problems and will soon be laying off employees. The Bastiat Triangle Alliance has been working on this emerging story all day. A member of the BTA was alerted to Grass Valley's growing financial crisis early on Monday, and we are working to confirm the details and assess the long term impacts.
This is a sad state of affairs as our state economy weakens and fuel cost continue to rise, with all indicators pointing to weaker construction and tourism economy. The spate of business closings are also an indicator that Grass Valley is in trouble. At the same time I wonder how much of the city’s economic decline is caused by past policies, with the city shunning any chain store development. I was reading about Vallejo problems and was struck by this statement in a San Francisco Chronicle story:
“New malls in neighboring cities have beckoned Vallejo shoppers, and taken their sales taxes.”
My question, is how much of this emerging crisis could have been averted, with a more open policy toward the development of revenue sources not dependent on construction and tourism. We have a large cohort of retired people that continue to shop in Roseville where the selection is broader, prices are lower, and service is reported to be several levels about that in the local community. This is huge loss of tax revenue that is going to Placer County and Cities.
Other unique communities in the foothills, and communities in Idaho and Oregon, have managed to retain their uniqueness while bringing to town the stores that citizen are seeking, the same citizens who are willing to drive long distances to spend their disposable income when the desired stores are not local here - income that could be generating revenue in Grass Valley. I think it is time to examine those past policies and start thinking about a future dominated by higher energy prices and increasing number of seniors who have money to spend. Money that can be spent locally, or wherever they think they are getting the best value for their money.
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