In our community ignorance, some refer to the PEDC as the “economic engine” of Paris. They’re off-track. It’s a twisted concept that does harm: Economic development corporations were never intended to be the driving force – in charge – of solicitation, decision-making on awarding incentives, and financing.
An ethical conflict exist in doing all three.
Describing the PEDC as the local “economic engine” is a personal editorial. It misses their purpose: EDCs were to serve as the community’s bankers.
EDCs were to be responsible for doing due diligence for the community on every prospect: Determining credit-worthiness, assets, products, market acceptance of products, etc., of an endeavor – before recommending incentives or arranging financing. This was to protect the taxpayer’s – and their money – and later doing verification; making sure that the terms of the agreement are met to protect the taxpayer’s money.
Even though there are positive models to follow, Paris insists on pursuing programs that have failed to build the community. Examples include
- keeping ordinances in effect that the city does not enforce equally;
- establishing re-investment zones in areas where no investment has been made (except the land cost), while ignoring numerous substandard neighborhoods
- diverting tax dollars from the public base to subsidize private businesses
- giving tax relief to a few, while forcing others to pay more
- giving, in cash, tax dollars as incentives; etc.
Not one of those activities can pass the “equal treatment” test.
But until enough potential voters grow tired of their ox being gored, Paris will continue to elect (and appoint) those who act to take money from a lot of pockets and put it in a few selected pockets.
It isn’t charges of corruption that exist so much as it is the costs of notorious and appalling duplicated ‘improvement efforts’ that end up opaque or wasted. For instance, the city, the PEDC, and what used to be the Chamber of Commerce of Lamar County, all three, claim to do “economic” development.
Yet, they seem to never see the wasted efforts, time and money, or understand that “too many cooks spoil the broth.”
No wonder so little is actually accomplished that economically improves the lives of all our citizens.
There is order in all things.
The “economic engine” is the community – which is made up of a lot of working parts: The PEDC is just one of many.
Without the community, the PEDC would not even exist.