The Danville Register & Bee published a strongly worded editorial in Sunday’s newspaper, but they missed the target.
Our leaders need to take ijob (sic) creation seriously
(Register & Bee article, paywall may apply unless you break through it)
Let’s analyze some parts of the editorial that they got wrong…
Giving companies public money to locate a factory here has always been — in the minds of many local people — a sketchy way to grow the economy. When a business grows and expands without public money, that’s considered laudable achievement.
The local people who have that mindset are sadly oblivious to the fact of “that’s how deals are made now”. Sure, it would be great if companies just decided on Danville (or anywhere in the Southside region) without any incentives… but that’s not the way it works in today’s economic development world. If you don’t give incentives, North Carolina will and those incentives can place the new business in North Carolina. It would be great for the practice of incentives to cease immediately, but that’s about as practical as universal nuclear disarmament.
We’re not sure why Vogler decided to speak for the other eight members of City Council, other than to do a little Tuesday night grandstanding. It would have been far more impressive for Vogler to convince the other eight members of Danville City Council to join with him in a unified statement to the people of Danville on this important issue.
If the Register & Bee reporter had asked Vogler why he made the solo speech on Tuesday night like I did, she would have gotten the answer that some members of council didn’t want to tell the full story. Instead, the lead on their article was Gary Miller’s repeated demand for Duke Energy to cough up some coal ash cash. I sat back and listened to Vogler’s speech. I watched the smiles and nods of approval from Fred Shanks, Alonzo Jones, Larry Campbell, James Buckner and Buddy Rawley. I asked Lee Vogler for a copy of his speech so that I could publish it here on SouthsideCentral, and he was glad to oblige.
Vogler gets some deserved heat for his self-promotion at times, but this wasn’t a case of him seeking the spotlight. Vogler didn’t give away confidential information in his speech. I’d have loved to have this speech coming from Mayor Sherman Saunders and Vice Mayor Gary Miller, but their speeches have lately been “Danville is great! We’re listening to you!” and “Duke Energy is a bunch of meanie poopieheads”. Saunders & Miller knew everything that Lee Vogler said in his speech too, and never said it. I’m not giving a free pass to Shanks, Rawley, Jones, Campbell and Buckner for not coming forward with this information… but at least they visibly supported Vogler saying what needed to be said. Vogler showed more leadership that has been seen in a long while by having the guts to make that speech. He may have gotten the spotlight, but he didn’t seek it out this time.
But there isn’t a man on Danville City Council today who didn’t run on the promise of new jobs for this community. If more members of City Council lost their own jobs on Election Day, then it stands to reason those who survive the voters’ wrath would take this issue seriously.
I’ve got news for the R&B editorial staff and a lot of Danville citizens. Danville City Council has very little to do with recruiting new jobs to the area. That falls on Danville’s Office of Economic Development and city council has no oversight of that department except through the city manager. Telly Tucker, Corrie Teague, Linwood Wright and the dearly departed Jeremy Stratton broker and brokered the deals. City Council gets the inside scoop on what’s going on behind closed session doors and can advise and recommend action but that’s about all. Economic Development doesn’t go to city council and ask “What should we go after?”. It’s their job to answer that question themselves and to take action to make it happen. The mayor, vice-mayor and council members aren’t expected to have the deal-making acumen to get personally involved with bringing a new company to Danville. City Council is great at a “let’s close this deal cocktail reception” or at a ribbon cutting, but sending Sherman Saunders to China isn’t going to move that deal-making needle much at all. Telly Tucker is doing a great job with a great team now, and the successes or failures in the future will be his to bear.
Danville’s Job Bust problems came from a flawed process that put too much power in too few people along with a poor vetting and money disbursement policy. Sure, you can blame City Council for this because they’re the elected body… but that wouldn’t be totally fair because I don’t expect them to have the detailed knowledge to micromanage and use oversight on city department functions. City Council has three employees that report to them… the city attorney, the city clerk and the city manager. The buck stops with the city manager. If you’re going to chop off heads in vengeance for Job Busts, City Council shouldn’t be first on the chopping block.
Of course every council candidate is going to say and promise “I will support bringing new businesses and jobs to Danville” in their campaigns. Would you expect any less? I know that Danville City Council doesn’t have much in a role for that process. Apparently, the Register & Bee editorial staff doesn’t know that.
I disagree with you on this issue. You state that City Council doesn’t have a role in economic development. However, the City Council has to approve the agreements with the Tobacco Commission as well as the money that the City provides to companies. They can stop anything that they please when it comes to incentives.
As to North Carolina and incentives, Virginia’s statewide unemployment rate is 4.8%. NC’s is 5.5%. Virginia’s has consistently been between a half and whole percentage point lower than NC’s for years. So, no, there’s no proof that NC’s incentives have “worked” in terms of true job creation compared to Virginia. If they were so successful, why would Carolina always have a higher unemployment rate?
And if City Council was to stop an incentive, that would undercut the local, regional and state economic development effort. Another location steps in and Danville gets nothing.
You can’t use unemployment rate comparison. You have to look at how many times Danville (or Virginia) were outbidded. I don’t like it, but that’s how the game is played.
Respectfully, isn’t that the issue? If Danville City Council had said no, then your reasoning is correct…all the “economic development efforts” to “land” WebParts would have been undercut and WebParts would have located somewhere else.
Winkin, blinkin, and nod, that counts as taking responsibility?
I can’t stop you if you want heads to roll. All I can do if shine the light on where the process broke down.
Some people actually believe that city council is an integral part of economic development. They’re not.
I disagree with the above quote about the VA statewide unemployment rate of 4.8%. first the rate is much higher if you factor in the people who are unemployed and have given up on looking for work, we are not counted anymore (and by the way I don’t get unemployment either) . 2nd… the unemployment rate for Pennsylvania,, Halifax, Henry Counties and most of south side VA, and the western counties are much higher then the statewide rate is. it make the state look good but it not a true number, either is the nationwide unemployment rate.
For future reference: Pittsylvania County, not Pennsylvania
thank you for correcting my spelling, I admit I am a terrible speller.
Can anyone list one accomplishment of Linwood Wright in his economic development “consulting” position? I’m not being fippant, I would just like to know what he does.
In my opinion, he’s the “fixer”. He knows how the game is played and knows how to play it.
Anything specific? Thanks.
Lee Vogler Blog post March 9, 2012: ” Economic growth and job creation are my top priorities.” This was an easy one to find. Councilmen believe they are an integral part of economic development Bruce. Lee is not the only one. What they failed to do was to make sure that success did not lead to failure. They took it for granted that if the Tobacco Commission was willing we should jump aboard and they failed to check to be sure ALL investments were good ones, and they failed to make sure we were protected. The problem game not with the first ventures but those that came later. There are now protections in place for us locally….after “Broken Promises”. We have to be sure they are strong and followed. Council failed to safeguard our money. A few more questions, simple ones, should have been asked.
From the perspective of when I was a council member – times have apparently changed since then:
City council first learned about possible economic development “major scores” in closed meetings. Shelia, I asked many questions and most were answered, but I expressed my doubts. I was in the minority. Contrary to beliefs, what happened in these “secret sessions” (they all hated me when I used that phrase) can be made public by any council member willing to face the wrath of the other eight and the administration. The Freedom of Information Act protects what happens behind closed doors – but a renegade council member can still spill the beans and it is not illegal. It has been very difficult for me to remain quiet when I see comments damning council when they were led astray. My fellow members were not the dumb, mindless people some people portray. The sources were deemed trustworthy. Now, in 2015, it is good to hear council will not blindly accept all those rosy projections as fact.
Maybe I should write a book.
Now that I am a target, shoot!
T David Luther
David, some of us understand that City Council has to depend on the full time city employees to investigate and make recommendations to council. The city employees in this case were the former Economic Department Director and the City Manager. The responsibility has to be with those two individuals. The former Economic Department Director has moved on – just before the ” **** hit the fan on this issue”. The City Manager is still here. I know you understand that the City Manager works at the pleasure of City Council. I am not sure that everyone understands that City Council can remove the City Manager. If there was “wrongdoing” on the part of the former Economic Department Director, I hope legal action will be taken.
With all due respect…you say that you expressed your doubts. If you had doubts, did you still vote for the projects? If so, I’d like to know why. This isn’t meant to be argumentative. But it seems to me that this is a problem with democracy in Danville today. We have elected representatives who have doubts/concerns, yet they still vote for what staff tells them. Power in a democracy should rest with elected representatives, not staff. In the last 15 years you, Mr. Tomer, and Mr. Daniels were the only Councilmembers that seem to actually question staff in an intelligent manner.
With all due respect to you Jerry, I’ve questioned staff on any number of issues from use of consultants to unneeded studies and on and on. I know there have been instances where other council members, such as Councilman Shanks, have, as well. But as David Luther pointed out, we’re all human. We miss things too. Council was misled. I came on at the tail end of all of this, but from what I gather, it was the case then too. The key is to figure out how it happened, make changes to prevent it from happening again and then move forward. That is what we’ve done.