In the movie, “Waking Ned Devine,” a Scottish village scams a lottery and evenly distributes the annual income to every household in the village. The result? Instant overnight wealth throughout town.

This movie plot captures the essence of every successful economic development effort. It imports capital — hence the term “capitalism.”
Not jobs.
Money.
Wealth, or money, creates demand, which creates supply, which creates jobs, which improves wealth, etc. When political and other leaders talk about “creating jobs,” or “growing,” a subtle but crucial point is lost.

It is not the job that is of value, or acquired population, but the newly enjoyed disposable income which is a product of the job.

Again: Money, not jobs. And not population increases.

This cycle often is referred to as economic development, or E.D.

A Matter Of Definition
E. D. is a major goal for Decatur. And while this is valid, E.D. is but a means to an end. In and of itself, the acquisition of wealth can be meaningless — the money hidden in the mattress.

Rather, E.D., manifested as newly acquired disposable income throughout a community, means everything from better schools to higher quality new shops opening to absorb the new income. And those new streets, air traffic, restaurants and stained glass in church windows equal the end being sought — increased quality of life.

I define E.D. as efforts that result in increasing the per capita income of a target area population. And when this happens, my definition of a high quality of life is the availability of the broadest possible range of pleasurable human experiences in a positive environment.

How We Get There
Gone are the days when patching streets and seeing garbage hauled away is enough. Today’s city government is all about improving quality of life for citizens — and we are expected to advance their range of pleasurable experiences.

While it is true that all cities are incomplete works in progress, each city is at a different place on the quality of life scale. While greater population will increase opportunity, it presents problems in maintaining a positive environment. Newark, New Jersey, may be bigger than Telluride, Colorado, but not necessarily a better place to live.

The Economic Development Corporation of Decatur/Macon County (EDC) is seeking to attract new investment in the form of primary jobs. If the investment being recruited is for retail, which generates sales tax to local governments, the recruiting is managed by the City of Decatur. Retail establishments diversify employment options, but jobs are a byproduct of their reason for locating in the city.

In March, the Mound Center opened with a Target store as the anchor. Starbucks Coffee also will build at the site, with other retail/restaurants to follow. Keep in mind, however, the decision to locate in a city ultimately rests with the retailer, not the city.

Sales and property tax generated at the site will pay for the public investment necessary to prepare it for commercial, as well as return new revenue to the city’s general fund — and provide funds to fill the gap for the school district to build a new school at Wabash Crossing. This improves shopping diversity to attract shoppers now going out of town, as well as new non-resident income.

Wabash Crossing is importing about $100 million dollars into the community and building approximately 500 new homes within a long three iron of downtown. New private investment, sometimes seeded by but always encouraged by the city, account for several hundred million more dollars in new investment.

Working closely with EDC, our community is enjoying high employment — an indicator of community wealth. This employment, shopping/dining/housing diversity moves us further along the livability scale and, of equal importance, attracts and encourages new investment.

Turning The Corner
In the public sector, it is never easy to take risks. Yet managed risks are necessary to move the city forward.

In downtown Decatur, we have cleared dilapidated buildings, worn infrastructure and unsightly streetscape to prepare for new investment — similar to the model at Mound and 51. Inner cities present a different set of development challenges, but even more exciting opportunities. Already, several new businesses have opened and more are coming.

Mayor Osborne’s Treasures of Decatur initiative is a visionary means to use the city’s rich historic and cultural advantages, and can help make downtown an exciting destination.
An integral part of the strategy, this in turn will reverse the flight of capital that began leaving downtown in the late ’60s.

The formula has been around for a very long time, but it is not particularly well understood. Instant overnight community wealth is great for the movies, but slower in reality. Nevertheless, community wealth leads to demand, which leads to supply, which leads to new investment, which leads to new employment opportunities, which incrementally increases wealth — which keeps the juggernaut moving and growing.

We must never lose sight of the evolution.

Steve Garman is City Manager of Decatur.