The County EDGE Ad Hoc committee final recommendations represent positive movement but can be further improved through Commission amendment. The Shelby County Commission Economic Development Committee will be considering the recommendations of the Commission Economic Development Growth Engine (EDGE) Ad Hoc committee on Wednesday November 28, 2018.

The resulting recommendations are designed to improve Memphis/Shelby economic development outcomes through EDGE reforms and improved coordination between EDGE, The Greater Memphis Chamber (GMC) and countywide economic development organizations. The recommendations come after 9 meetings under the leadership of Commissioner Willie Brooks, participating Commission members and representatives from the private sector.

The work of the committee was most significant in revealing fundamental improvement opportunities to include more effective measurement, workforce development, pad ready site readiness/development, road completion, processes review and support for existing local business. The former has been kicked aside over the last 7 years by local economic development leaders as excessive corporate/real estate incentives and financial engineering have been, unfortunately, locally prioritized.

Progress on Reform

Economic development reform progress is evident in the recommendations. EDGE Ad Hoc Committee recommendations clearly define EDGE and Greater Memphis Chamber (GMC) roles while stating the need for  measurable goals, better public reporting processes and funding for EDGE and GMC. Reviews were ordered for incentives, fees, the legality of the use of code names to protect prospect anonymity and the 9 other Shelby County payment-in-lieu of taxes (PILOT) programs.

Further, given County funding authority over K-12 and oversight of the Workforce Investment Network (WIN), it is recommended that Mayor Lee Harris and the County take the lead on workforce development.

And finally, recommendations call for plan development for commercial/industrial site availability, support for local business, countywide economic development coordination and a review of the EDGE Board and CEO reporting structure.

Amendments for Improvement

The Shelby County Commission should speak more specifically by amending the County EDGE Ad Hoc Committee recommendations for improvement as shown below:

New EDGE Board – A new EDGE Board is needed after resulting below peer average wage growth and administering deficient workforce development efforts, a lack of a strategy for site readiness, incomplete accounting that resulted in taxpayer losing excessive retention PILOTs, declining small business vitality and most recently, at the last meeting, an excessive taxpayer losing expansion PILOT.

Establish Community Investment Benefit/Cost Ratio – EDGE currently uses a 1.0 benefit/cost ratio to determine breakeven for the taxpayer which is defined by dividing projected tax proceeds by the amount of the abatement. A 1.0 benefit/cost ratio results when projected tax proceeds equals the amount of the abatement. The problem with the 1.0 benefit/cost ratio is that it does not consider the economic impact of investing in the community. In this way, the establishment of a community investment benefit/cost ratio would better inform breakeven for the taxpayer and smarter incentives in support of local business retention/growth and infrastructure to facilitate economic development attraction.

Define Economic Development – Public bodies should formally define what “economic development” is. Without definition, measurement cannot be established. “Improving the social well being of the community’s people” has been publicly advocated for in local public proceedings. Such a definition would effectively identify the taxpayer as the customer in local economic development work. Thinking in terms of the Amazon Road Map of The Memphis Economy of the University of Memphis would perhaps help in speaking to a definition for “economic development”.

Dump the EDGE Scorecard – Dump the bogus EDGE Scorecard for measurement.

End Retention PILOTs– If fully accounted for, it will be revealed that abating taxes for existing businesses/jobs is a loser for the taxpayer when applying a minimum benefit/cost ratio for community investment. Given the significant disruption and cost of relocation, corporate retention is supported not by tax abatements but by smart community investments in workforce, public safety, pad ready sites, roads, public transit, and small business.

Workforce Development – GET GOING TODAY with accessible tools and ready to go local small business solutions.

Establish Time Frames – There are several reviews ordered in the recommendations that lack a time frame. Given the lack of local sense or urgency, without a time frame, local review work could stretch into a year or more.

The adoption of the above amendments will improve the final product of the EDGE Ad Hoc Committee for the benefit of the customer taxpayer.

Conclusion

The County EDGE Ad Hoc committee work has been most productive in publicly revealing areas for needed improvement in the work of economic development. The work demands a plan which will require defining economic development, effectively and publicly measuring progress against that definition and course correcting as needed. In the current environment, course correction starts with a new EDGE Board. If the former occurs, local economic development efforts can only improve.

About This Site –  Memphis Corporate Community Leadership (MCCL) Measured

With a special focus on Memphis Tomorrow, MCCL Measured is the first ever and exclusive tool to attempt to measure the effectiveness of Memphis Corporate Community Leadership efforts that use taxpayer money. The site is designed to facilitate financial literacy education regarding taxpayer funded initiatives. Additional videos and resources can be found by browsing the entire site or at http://mcclmeasured.net/resources . Please email questions to jkent@pathtrek.net

What is the economic impact of investing tax dollars in the community as opposed to warehouse jobs ? The EDGE Board doesn’t seem to care. The above question comes and is answered in this article in response to Councilman Martavius Jones concerns regarding excessive tax abatements approved by the Economic Development Growth Engine (EDGE) Board as covered in the Memphis Business Journal. Jones is one of the the few local legislators that has professionally resided outside of Memphis. This gives Jones unique insight to ask questions that things are not adding up in Memphis when compared to other cities.

The first question that should be asked is “Is there a need to incentivize 30 warehousing jobs at all?” Probably not. But if so, some boundaries need to be set for abating EXISTING commercial property taxes for NEW jobs. Based on the analysis in this article, the EDGE Board left an estimated $850K, at a minimum on the table, at its most recent meeting based on the application of a minimum and proven community investment 1.24 benefit/cost ratio. And if the most recent study of the Economic Institute regarding warehousing jobs was applied, the $850K left on the table would jump to $1.35M.

The objective of this article is to encourage the establishment of a benefit/cost ratio to inform smart and balanced economic development investments that support the implementation of the Amazon Road Map published by The Memphis Economy of The University of Memphis. The analysis in this article is for a new job expansion PILOTs while abating EXISTING taxes. Retention PILOTs, which abate existing taxes against existing jobs while requiring a different analysis,  should be ended altogether. 

Decline by Design

Community disinvestment continues in Memphis within a unique municipal decline by design framework which Jones questions. Last Wednesday, the EDGE Board called a special meeting to stick it to the taxpayer by voting to abate EXISTING local tax dollars for 30 brewing company warehouse jobs. This vote comes on the heels of local concerns regarding EDGE and economic development policy. In short, the Board vote supports the argument for a new EDGE Board that follows below peer average total wage growth, neglected workforce development efforts, tanking small business vitality and a lack of site availability.

The tax abatement, otherwise known as a payment-in-lieu of taxes (PILOT), appears to be more of a real estate than an economic development deal. PILOT acceptance results in a paying tenant for the warehouse owner. The $2.3M abatement yields projected tax proceeds of $1.8M resulting in a $500K loss for Memphis/Shelby taxpayers and a .79 benefit/cost ratio according to the EDGE PILOT Project Summary. This project summary does not apply the more rigorous requirements found in the Economic Institute study previously mentioned or the analysis that results in a 1.24 benefit/cost ratio found in this article.

The benefit/cost ratio is derived by dividing the projected tax proceeds by the taxpayer funded abatement. A 1.0 benefit/cost ratio implies that the taxpayer is benefitting the same as the recipient of the taxpayer funded PILOT. But is this really the case? No one has yet to ask,  “What is the economic impact or benefit/cost ratio of investing in the community?”. Such information would better inform smarter economic investments for community benefit.

Economic Impact of Community Investment ?

This discussion in this section is not designed to be right per se but to discourage community disinvestment and the establishment of a community investment benefit/cost ratio to inform smart economic development incentive policy with regard to abating EXISTING taxes for NEW Jobs.

Investing in the community should not have a 1.0 benefit/cost ratio but a higher ratio if local government is using taxpayer funds to improve its community. Close review of the PILOT project summary reveals a $200K per year abatement of existing property taxes over a 10 year term is used to support the .79 economic impact benefit/cost ratio. So what is the benefit/cost ratio of investing in the community ?

Both increased school counseling services and more police for safer streets have been stated as local needs to improve economic development outcomes for a more prepared workforce and safer streets. So, to derive a economic impact benefit/cost ratio for community investment, increased school counseling and police will be used.

Using available public data sources, a $50K police officer can be shown to increase tax proceeds $55K+ per year based on increased property values due to decreasing violent crime. And this analysis argues that a $50K school counselor with a caseload of 100 will increase total student wages by $500K per year with a 2.3 economic multiplier applied to increased wages. The 2.3 factor serves as an approximate average economic impact multiplier across the local economy for investments in education. A 3.76% local tax income rate is used against increased wages based on the rate derived from page 2 of the EDGE Project Summary.

And $776,000 of commercial property tax proceeds or 26K per worker in PILOT commercial property tax income is accounted for in this analysis by redistributing those proceeds across the working student population at a 10% rate to account for increased commercial demand for investments in education and resulting higher wages. This results on an annual basis to be $26,000 per 100 students or $260 per student based on the following calculation ($26,000 / 10 yr term) x 10% = $260. Given these assumptions, the following calculations are derived:

The result of this analysis is a 1.24 benefit/cost ratio. With the further use of multipliers against commercial property the ratio can jump to a 1.58 benefit/cost ratio. Again the purpose this section is not to be right but to encourage a quantitative context to the conversation and the establishment of a benefit/cost ratio for community investment while informing smart economic development incentives for workforce development, public transit, small business development, pad ready site development and recruitment. The analysis models economic benefits of community investment that result in increased property values, commercial demand and wages.

Conclusion

Typically this blog supports new job PILOTs but not this PILOT. To achieve a 1.24 benefit/cost ratio, the EDGE Board would have needed to reduce the incentive from $2,325,744 to $1,474,016 which represents approximately $850K or 37% in excess abatement. This does not apply the more rigorous standards of the Economic Institute study for warehousing jobs which would have resulted in a $1.35M reduction.

In practice, per Martavius Jones concerns in the MBJ of providing everyone a 75% abatement, a more restrained 47% abatement would have worked for both the taxpayer and this real estate deal labeled “economic development”. But instead, the EDGE Board robotically plowed forward with a 75% taxpayer losing abatement for warehousing jobs.

Get real folks. Boundaries are needed in the abatement of existing taxes while ending retention PILOTs. A new EDGE Board is needed. The disconnected EDGE Board continues offering taxpayer losing and excessive incentives, without restraint, in the face of growing local concerns……

About This Site –  Memphis Corporate Community Leadership (MCCL) Measured

With a special focus on Memphis Tomorrow, MCCL Measured is the first ever and exclusive tool to attempt to measure the effectiveness of Memphis Corporate Community Leadership efforts that use taxpayer money. The site is designed to facilitate financial literacy education regarding taxpayer funded initiatives. Additional videos and resources can be found by browsing the entire site or at http://mcclmeasured.net/resources . Please email questions to jkent@pathtrek.net

In reference to a recent Memphis Business Journal article, Richard Smith is only a small part in the disruption of the Memphis economic development ecosystem. Routinely dismissed by the non-investigative local press and the establishment of which Smith is part is the army of customer taxpayers supporting the disruption of the economic development system. The taxpayers are represented by bloggers, social media and activist organizations such as Memphis Raise Your Expectations (MRYE). These are customer taxpayers who have been proposing research based economic development solutions to the dismissive and arrogant Memphis Corporate Community Leadership (MCCL) complex for some time now.

But the same family merry go round of establishment figures get the credit for needed disruption. Disruptive solutions to local economic development efforts start in Memphis with a largely new Economic Development Growth Engine (EDGE) Board and listening to different people outside of the establishment. Most on the EDGE Board have been serving for almost seven years while overseeing deficient economic development efforts. New ideas and non-establishment figures are needed to serve on the EDGE Board to drive more balanced economic development efforts to serve customer taxpayers. The problem with the disconnected MCCL establishment is that they seem to lack an understanding of what “economic development” is or who the customer is in taxpayer funded initiatives.

EDGE Board Meeting

At the most recent EDGE Board meeting, Board resignation was requested in public comment. Johnny Moore, a banker, EDGE and Memphis Tomorrow Board member, asked the public commentator, Joe B. Kent, for data to support his request. Kent reeled off 1) below peer average total wage growth since EDGE began, 2) EDGE botched workforce development efforts and 3) bogus retention PILOT accounting that abates taxes against current tax revenue that comes at an estimated taxpayer loss of $250M+ while being reported as a $600M gain. Kent failed to mention a lack of site availability to support economic development efforts.

Mark Halperin, EDGE Board member and Moore cited their volunteerism as accomplishments implying “self-sacrifice” without responding to Kent’s data supported concerns. If it were not true, it seems, Moore, a banker, would quickly defend against the bogus accounting assertion made by Kent but that didn’t happen. Bogus PILOT accounting has been used to justify excessive tax abatements that have undermined true economic development efforts in site readiness, workforce and small business development. Concerns over excessive incentives were additionally raised by EDGE non-voting board member and City Councilman Martavius Jones.

Given local EDGE results, perhaps Moore and Halperin should go volunteer somewhere else. Halperin was key to the important ServiceMaster win but has served on the EDGE Board for 7 years. There are plenty of volunteer opportunities in Memphis available other than their “self-sacrificing” EDGE Board volunteerism. And if Moore really wants to help, perhaps he can volunteer to ask his Memphis Tomorrow CEO organization to shut down, fulfill their promises and restore Memphis to average status with a $1.5 billion contribution to City and County Government by the end of the year. The $1.5B ask is supported based on an estimated $124 recurring annual Memphis / Shelby taxpayer loss that have come as a result of deficient performance from the Memphis Tomorrow taxpayer funded Fast Forward initiative. The Memphis ecosystem has declined ever since the founding of Memphis Tomorrow.

But for some reason, even given the results, a new EDGE Board is never considered by the Memphis/Shelby Mayors or the local legislative bodies that oversee EDGE. Reid Dulbeger, EDGE staff CEO, takes most of the direct criticism for EDGE. Dulberger is a highly competent bureaucratic administrator – the type of administrator that is needed for an organization like EDGE. But saddled with a highly deficient board, Dulberger gets hung out like many local staff of deficient MCCL boards. Problems in Memphis start at the top and board level as customer taxpayers are dismissed by the Memphis establishment. Its an establishment that has yet to globally define “economic development” which is needed to inform, drive and measure productive economic development efforts.

Workforce Development

For example and unfortunately, every major organization in Memphis has their fingerprints all over botched workforce development efforts to include EDGE, Memphis Chamber, Memphis Tomorrow as well as FedEx. While their have been signs of positive change at the Chamber, unfortunately they just punted workforce development  on first down to yet another new initiative after Mayor Strickland declared Workforce development the #1 economic development priority.

This is the second time the Chamber has punted workforce development with the first being when their Chairman’s Circle punted the Greater Memphis Alliance for Competitive Workforce (GMACW) initiative to EDGE. The most recent punt comes after stalled workforce development efforts over the past 4 years and local solutions are dismissed by the deficient MCCL complex in EDGE, Chamber and Memphis Tomorrow. And leaders, in the MBJ article, for some reason, don’t mention workforce as part of local economic development priorities.

In the EDGE meeting, a staff grant administrator for GMACW, in Alan Gumbel presented. Gumbel administers the Move-Hire grant that has resulted in a highly successful implementation led by the Greater Memphis Medical Device Council (GMMDC). GMMDC works to close the skills gap for the thriving Memphis biomedical device industry.  GMMDC counsels parents, students and teachers to help them better understand the great benefits of a career in the medical device industry. While still in high school, students can use the Tennessee Promise grant and dual enrollment classes to complete a diploma and then go directly into a job or an apprenticeship with no college debt. This is one career path that GMMDC advocates for when promoting careers in the biomedical industry.

But as far as connected workforce/education to employment efforts, GMACW has fallen short over 4 long years.  Staff, such as Gumbel, have been derailed by deficient board leadership and contracted partners that lack a track record of domestic United States workforce development experience. Simple connecting solutions in for example, a Chamber articulated alignment protocol to inform workforce development efforts, a common job board, student career portfolios or the use of the ACT National Career Readiness Certificate (NCRC) seem out of reach of a deficient MCCL complex.

At the EDGE meeting, Dulberger did sneak in the NCRC in his closing presentation but the NCRC was in small print in the corner of his presentation. The Strickland administration initiative that endorses the highly credible ACT NCRC solution strangely goes locally unpromoted. As a result and by high level choice, disconnected workforce development efforts persist in Memphis. Its like, for some reason, a large part of the solution for connecting workforce development efforts is a secret. So damn weird….

Conclusion

Disruption can be good but it has to disrupt the status quo. Without a largely new EDGE Board, needed disruption probably won’t happen.

About This Site –  Memphis Corporate Community Leadership (MCCL) Measured

With a special focus on Memphis Tomorrow, MCCL Measured is the first ever and exclusive tool to attempt to measure the effectiveness of Memphis Corporate Community Leadership efforts that use taxpayer money. The site is designed to facilitate financial literacy education regarding taxpayer funded initiatives. Additional videos and resources can be found by browsing the entire site or at http://mcclmeasured.net/resources .

Unable to articulate a workforce alignment protocol for employers’ needs to the workforce development system, The Greater Memphis Chamber is yet again, punting workforce development. This time the punt comes in the form of an announcement of a  a new initiative that includes a 9 month implementation schedule. Why wait 9 months? Why not go ahead and get started TODAY with connected workforce development?

Getting started with implementation immediately is the solution to local workforce development needs. And getting started does not exclude “shiny new” open platform programs such as Talent Pipeline Management (TPM) as advocated for recently by the Greater Memphis Chamber. In fact, as an open platform, TPM can be accommodated to come in and bless or supplement started work whenever it finally arrives.

But imperfectly Getting Started is the key, as educators and employers clamor for leadership on workforce development from the business community. While there are significant opportunities for TPM and the locally offered PathTrek process to work together, unlike TPM, the PathTrek process gets started today – while stressing the importance of using common language and the Strickland Administration endorsed ACT WorkKeys National Career Readiness Certification (NCRC) in support of workforce development efforts.

This article discusses the following:

• Chamber punt on workforce
• Getting started today with the locally offered PathTrek process for workforce development
• An overall favorable analysis of Talent Pipeline Management (TPM)

Chamber Punt – Implementation Woes

Getting started immediately is not going to happen if the Chamber punts workforce to yet another new initiative. Based on a recent Evanoff article , this time, the punt comes on first down to the “shiny new” Talent Pipeline Management (TPM) initiative after Mayor Strickland declared workforce as the #1 priority in economic development. Kicked aside are available local solutions and highly credible workforce development tools in for example, the ACT Work Ready program that goes unmentioned by the Chamber.

Previously, approximately 1.5 years ago, the Chamber punted its Chairman’s Circle Moon Mission in the Greater Memphis Alliance for Competitive Workforce (GMACW) program over to the Economic Development Growth Engine (EDGE). After that Chamber punt, EDGE just packed workforce in and went to the locker room. The cost of punting workforce is estimated to be $500M in lost wages and $15M in lost local tax revenue. A peculiar aversion to the unromantic work of implementation exists in Memphis. It’s Time to Get Started !

Given the local need, as voiced by educators and employers, implementation should not be delayed. Going back to the City Council Committee work over a year ago, starting at about 32:20 in the video, educators effectively beg for business community leadership in the form of a coherent centralized marketing approach to support workforce development efforts.

In search of an answer to centralization, in the video, Gary Rosenfeld smartly googles “Memphis Jobs” and Indeed pops up at the top of the list. For unknown reasons, in the meeting, the World’s leading job board in the easy to use Indeed to promote job openings as part of a coherent and centralized solution is shot down for advertising. Do what ? Advertising job openings is a problem ?!?!  Currently, Indeed is showing 12,000 Memphis job openings.

And at the “Age of Agility” conference, earlier this summer where Dr. Candice McQueen and Dr. David Rudd spoke, educators were most curious of how to get the business community involved in education. Business leadership is needed to support educators in meeting employer demand. Solutions to help facilitate that work were written about earlier this summer.

Locally Offered PathTrek Process – Time to Get Started !

The locally offered research based PathTrek process stresses Getting Started. Coming 4 years before TPM, but like TPM, the locally offered PathTrek stresses the use of career pathways and common language to support workforce development efforts with employers as the primary customer of the workforce development system .The use of common language is nothing new. After all, common language is what the ACT Work Ready Communities program is all about.

But unfortunately, driven by high level choices, common language in workforce development remains unimplemented after 4 years of dealing with the “elephant in the room” in the disconnected Memphis Corporate Community Leadership (MCCL) complex. MCCL has a special proclivity toward prioritizing excessive tax incentives and not the workforce in economic development work. MCCL consists of Memphis Tomorrow, Greater Memphis Chamber and EDGE.

The PathTrek process prioritizes workforce development and starts with a 1 day Getting Started implementation. The 1- day implementation includes ready to go elements in 1) publication of employer demand data and 2) the promotion of the Strickland Administration’s ACT Work Ready program.

Additional early implementation elements would encourage local leaders to select a common commercially available and reputable job board to promote local job availability and advocacy for the Greater Memphis Chamber to represent the workforce development needs of employers through the articulation of an alignment protocol. A workforce alignment protocol helps to define and guide local workforce development efforts much like a definition for “economic development” would guide local economic development work. But Memphis has neither. Without an overarching alignment protocol for employer needs, the workforce development system does not know how to align their efforts to serve their primary customer in employers.

Informed by a workforce alignment protocol, academic standards-based curriculum alignment and implementation would occur over the first 3 months. While like TPM, PathTrek is a flexible open platform, when recommending implementation assets, PathTrek recommends world leading best of breed tools. Examples include: 1) O*NET for an occupational information data source, 2) Indeed job board technology and 3) ACT Work Ready assessment tools. Please proceed here to learn more about PathTrek.

About Talent Pipeline Management

The open TPM process has several attractive elements that recognizes the employer as the customer of the workforce development system and includes 1) data demand driven employer requirements and 2) common language development to facilitate professionally diverse stakeholder communication.  At the same time, the US Chamber authored TPM, as written, comes with a 9 month implementation schedule and lacks meaningful definition, educational and learner supports. For instance, there is not any definition or discussion around the universal concepts of academic standards or the use of O*NET which is the world leader in occupational information.

While light on specific non-binding examples, perhaps because of its open design, TPM provides a framework for the insertion of workforce development implementation assets which could involve a range of potential providers. It is suspected that TPM’s partner in Strada Education and its affiliates would sell product into the framework. The partner network seems mostly geared for post-secondary and adult audiences. Some TPM products may be locally needed at some point others perhaps not, hence the accommodating open TPM process design.

Strada affiliates include the Center for Adult Experiential Learning, College Confidential, DXtera Institute, Education at Work, EMSI, Inside Track and Road Trip Nation. Of the former providers, based on services ready to go today on the ground in Memphis today and locally researched, competition exists between EMSI and Road Trip Nation.

Overall, the TPM framework provides a solid process for connecting workforce development efforts. The process organizes employer groups and leverages employer demand data to inform common language development, curriculum and program offering while measuring results to inform workforce development improvement efforts.

Solution – Get Started !

The major downside to the otherwise favorable TPM process,  is the 9-month implementation schedule and not Getting Started right away. Imperfectly and expeditiously getting started is paramount ! So how to go about Getting Started ?

1. Determine a centralized job board. How about Indeed, the World Leader?
2. Publish Employer Demand Data – Its ready to go now !
3. Promote ACT National Career Readiness Certificate (NCRC) and get as many NCRCs administered as possible by June 1, 2018
4. Work with Chamber on a simple alignment protocol to generally inform the workforce development system of customer employer needs
5. PILOT ready to go career planning curriculum in Q1/Q2 and implement Q3/Q4
6. Wait for TPM to arrive

Getting Started with implementation has several benefits. In fact, not Getting Started will result in more of the same. Getting Started is likely to result in improved workforce development outcomes. And after Getting Started with improving workforce development efforts that translates into improved economic development outcomes for all. That is why Getting Started is so important.  Let’s get started !

The evaluation and improvement of tax incentives should start with a newly appointed Economic Development Growth Engine (EDGE) Board and the termination of retention and residential payment-in-lieu of taxes (PILOT) programs. Retention PILOTs abate taxes against existing tax revenue and Shelby County is the only County in the State that abates taxes for multi-family residential construction.

Questioned often, the goal of this website is to educate Memphis and Shelby Countians through financial literacy. Unknown to most, the community has been invested in decline though policy for some time. This comes as a result of low expectations, lack of implementation, lack of investigative press, an unchecked out of control EDGE Board and until recently, poor legislative oversight.

Decline seems to have been going on for so long that the highly educated pubic cannot see the deficiency as carried out by Memphis Corporate Community Leadership (MCCL). New, recently announced Memphis Public Libraries financial literacy efforts should consider the resources offered by MCCL Measured as a core element in taxpayer financial literacy education.

And while encouraging to see workforce as the #1 economic development priority, new Strickland administration efforts will hopefully focus on defining what economic development is and is NOT. Discouraging about the Strickland announcement is the lack of a completed plan or the release of the trumpeted Mass Economics Study after 8 months of local economic development study.

Recently, it was reported in the Memphis Business Journal that 1 of the 11 recommendations of the Memphis City Industrial Development Board Committee that EDGE tax incentives should be “evaluated and improved”. But for who?

In this evaluation and improvement exercise, hopefully the taxpayer is viewed as the customer when using public funds. But based on the results, it cannot be assumed that MCCL views the customer as the taxpayer. After all, through testimony, its public information that local taxpayer funded economic development efforts have, over time, lacked a plan, effective measurement or even a definition for economic development. This occurs while excessive incentives sacrifice the work that attracts and supports economic growth in the development of small business, a reliable workforce, public transit and available sites.

Best of the Worst of EDGE

While there are several examples, the “Best of the Worst of EDGE” in excessive PILOTs goes to help define what economic development is NOT. Since this is not a reflection of the companies but of economic policy, in the spirit of new legislative recommendations, the companies are kept anonymous. See below examples of what economic development is NOT.

• At the Board level, Greater Memphis Alliance for Competitive Workforce (GMACW) efforts largely put on hold in favor of granting corporate / real estate tax incentives.
• Blind commitment to excessive corporate/real estate tax incentives as small business vitality tanks .
• $25M tax abatement to retain a refinery that is going absolutely nowhere.
• $50 tax abatement to retain a sports apparel company while transferring $50M of wealth from one of the most impoverished areas in the country in Memphis at (27%) to one of the least impoverished at (13%) where the company headquarters is located. Abated tax proceeds appear to indirectly support a social justice ad campaign of the company currently underway.
• $5M in taxes abated for retaining a chemical company that is going nowhere that saves $1M per year using high quality Memphis water resources.
• $6M in taxes abated to retain a pharmaceutical company in a renewal of a PILOT after employment had decreased for the company since being in Memphis. The renewal gives the company a 28-year PILOT. The $6M is being transferred from Memphis with a 27% poverty rate to the wealth center of the world where the company headquarters is located.
• $19M in abated taxes awarded to 2 developers for residential multi-family construction which is $19M more than the developers would have received in any of the 94 other counties in the State of Tennessee.

Take in the above and know that there are 9 other tax abating boards in Memphis / Shelby County that are not getting the EDGE microscope. Whoa !

Conclusion – Who and What ?

Memphis Raise Your Expectations (MRYE) and MCCL Measured have been advocating for the adoption of a definition of economic development by local legislative bodies in “economic development is a process to improve the social well being of people”. This would be measured using external data sources in the Bureau of Labor and Statistics program of Quarterly Census of Employment Wages that would measure total percentage wage growth versus 15 Shelby County peers as identified by The Memphis Economy of the University of Memphis. 

Challenges to the former is that the people, in MRYE, are not listened to in a Crump like rigged up system. Gotta stop listening to the same rotating band of people all of the time. Please see previously written blog on this subject.

As far as a connected approach to workforce development, MCCL Measured has been advocating for and supportive of Strickland Administration announced programming that has seemingly remained unimplemented and effectively not adopted by the Greater Memphis Chamber through a lack of promotion. The consistent lack of local implementation on behalf of taxpayers and employers is just strange and part of the decline by design local community leadership culture.

If the taxpayer is viewed as the customer, implementation should take center stage with retention and residential PILOTs terminated and the appointment of largely a new EDGE Board. This will mark an improvement in economic development policy and a move away from community disinvestment and toward community investment.

In the meantime, the public awaits answers on two questions 1) Who is the customer in taxpayer funded economic development efforts ? and 2) What is economic development ?

About Memphis Corporate Community Leadership (MCCL) Measured

MCCL Measured is the first ever and exclusive tool to attempt to measure the effectiveness of Memphis Corporate Community Leadership efforts that use taxpayer money. Additional videos and resources can be found by browsing the entire site or at http://mcclmeasured.net/resources .

A more progressive group of public officials are making progress on a range of economic development issues but are obstructed by an “elephant in the room” being Memphis Corporate Community Leadership (MCCL). MCCL consists of Memphis Tomorrow, Greater Memphis Chamber and EDGE.

Local activist movements in Memphis Raise Your Expectations (MRYE) and this blog MCCL Measured have, through measurement, successfully and overtly confronted MCCL while more subtle but vital activist organizations in Memphis Interfaith Coalition for Action and Hope (MICAH) are adding critical mass to the transformational movement. The transformational movement confronts Memphis inequality for the benefit of all.

Commissioners  Willie Brooks, Reginald Milton, Edmund Ford, Tami Sawyer, Brandon Morrison and Michael Whaley are all engaged in one or more of the following economic development reform issues of Economic Development Growth Engine (EDGE), workforce and/or public transit reform. Recognized by Commissioner Milton, a curious Boss Crump represented the intransient MCCL at the County EDGE Ad Hoc Committee on Wednesday.

County EDGE Ad Hoc

On Wednesday, with a concerned Boss Crump watching, Mayor Jim Strickland offered refreshing testimony on a framework for economic development in the County EDGE Ad Hoc committee that consisted of the following four points: 1) its not all about tax incentives 2) workforce development is the top priority 3) support for local business including small business which is responsible for 70% of local economic growth and 4) research based target sector corporate recruiting strategy to guide responsible incentive development. Boss Crump departed the meeting without comment.

Ron Belz shared concerns for road improvements in Southeast Memphis to support site availability and Mayor Strickland stated that work is proceeding to improve roads in the Southeast. Carolyn Hardy championed local business investment by the local business community and asked the Mayor for the “Gold Standard” for economic development. Immersed in offline negotiations, The Mayor was not yet prepared to unveil a “Gold Standard”. But given the priority of local workforce and contingent on a yet to be revealed definition for local economic development, a “Gold Standard” might be the following:

Memphis will lead the nation in career ready workforce development while achieving above peer percentage average total wage growth.

Eric Roberston of Community Lift raised questions regarding the effective evaluation of the 9 other organizations besides EDGE that have tax abating authority. An article was recently published by Smart City Memphis on this topic. This committee only deals with EDGE but Robertson’s concerns are on target while in pursuit  of taxpayer justice.

The MCCL elephant in the room, has challenged local economic development work with a hyper-focus on tax incentives for existing businesses that without question have restrained road improvements, site availability and small business growth. For example, it was implied in the City EDGE committee that local real estate developers have obstructed needed site development work. This thought process is concerning given a current shortage of ready to go sites to support economic development efforts.

County Ad Hoc Public Transit

Ford and Sawyer have successfully assembled a diverse and invested public transit ad hoc committee consisting of themselves, subject matter experts from Memphis Area Transit Authority, researchers from Innovate Memphis and public transit users in the Bus Riders Union.

Funding has been the central issue for adequate public transit for almost 2 years following the release of Transit Funding study. Given the overt confrontation of the activist community, local leaders seem more comfortable confronting, on the record,  the MCCL elephant in the room as an obstacle to addressing transit funding.

Ford said “that we as a community must sell a funding solution for transit”. Following the meeting, the activist group MICAH, could be seen scurrying the room asking for a list of groups concerned with public transit to begin the grassroots campaign in support of public transit funding. Ford has also remarked that workforce challenges revolve around public transit availability, worker public record and skill development.

County Ad Hoc Workforce

Ford, Sawyer, Morrison and Whaley while being challenged with attendance at meetings from workforce development parties, have assembled a diverse group to support local reform efforts. This work, while desperately needed,  seems to be a rerun of past City Council committee work that somehow ended without material results more than a year ago. The same unresolved issues are sure to surface in the County Workforce Ad Hoc around the need for a cohesive connected marketing plan to support workforce readiness and development supported by a user friendly and reputable centralized job board.

The need for soft skill development was discussed in the meeting but there is no authoritative and quantifiable data to define what is meant by soft skills. The Greater Memphis Chamber clamors for “alignment, alignment, alignment”. Alignment to what ? The Chamber has yet to articulate an alignment protocol.

In committee Mr. Mike Lewis, County Human Resource Administrator, smartly stated that “there is a lack of connectivity between a local workforce readiness programs.” The similar was stated by Roland Raynor of Tennessee College of Applied Technology (TCAT) more than a year ago in City Council Committee.

Connectivity is not going to happen until there is data that defines in-demand skills (soft skills), a centralized and reputable job board is established and the Chamber articulates a generalized alignment protocol. Once the former is accomplished a cohesive marketing plan to define and support workforce development efforts can be assembled. A plan will be published through blog Monday, November 5, 2018.

As far as the elephant in the room, again it’s the MCCL in the Chamber and EDGE run Greater Memphis Alignment for a Competitive Workforce (GMACW). Both have ignored and stifled locally offered connected workforce development solutions while under-serving 60,000 students and a community in need. The costs to taxpayers and a community in need are huge.

Ford starts all of his meetings with this CA article. The article involves a  millennial and part of the more mobile population that has left the city and not because they wanted to but because they felt they had no choice. Most that leave the city are invisible to leaders and don’t get picked up by the CA but instead, off the radar, leave after trying to navigate a seemingly closed system. People, their ideas, energy and creativity and just arrogantly dismissed and they go elsewhere.

Conclusion    

The MCCL elephant in the room has won thus far while enjoying excessive tax incentives and arrogantly disregarding the taxpayer at the Board level through a lack of effective workforce development, declining small business vitality, challenged public transit and a lack of site availability.

Here is the problem, as stated by Paul Volker, former Federal Reserve Chairman for conservative Ronald Reagan, “We’ve got an enormous number of enormously rich people that have convinced themselves that they’re rich because they’re smart and constructive. And they don’t like government, and they don’t like to pay taxes.” And in Memphis, those same people for one reason or another don’t want to effectively deliver taxpayer funded services either. In Memphis, social justice starts with taxpayer justice.

But the good news is that, things are changing. A more active and confrontational activist community is overtly challenging the MCCL along with public leaders on the record. Memphis transformation will require participation from the taxpayer with significant philanthropic participation by Memphis Corporate Community Leadership coupled with informed legislative oversight and external measurement for the benefit of all.

About Memphis Corporate Community Leadership (MCCL) Measured

With a special focus on Memphis Tomorrow, MCCL Measured is the first ever and exclusive tool to attempt to measure the effectiveness of Memphis Corporate Community Leadership efforts that use taxpayer money. Additional videos and resources can be found by browsing the entire site or at http://mcclmeasured.net/resources .

The Economic Development Growth Engine (EDGE) has just been nationally recognized by the Council of Development Financial Agencies (CFDA)  for financial engineering in innovative tool development but not economic development. One of EDGE’s innovative tools includes the infamous EDGE Scorecard that claims a 150% taxpayer return on investment (ROI) generated from abating taxes. These tools are both innovative and bold to say the least.

It’s a deserved recognition from a peer like CFDA organization that mirrors, in many ways, EDGE, consisting of bankers, attorneys and financial engineers. After all, EDGE has a plethora of financial tools and programs, that for the most part, rig the system for the few in corporate/real estate interests. This is not to say that all EDGE programs are for the primary benefit of corporate / real estate interests. Examples include the Community Builder PILOT and the Inner City Economic Development Loan program. But relatively speaking, these financial tools serve small programs.

But financial tool development does not always result in the public benefit or economic development. Some will remember the financial tools that helped precipitate the Great Recession in collateralized debt obligations, credit default swaps and compromised ratings standards . Such tools are highly complex while often lacking credibility after thorough investigation and/or effectiveness in serving the public good. This was the case with the above-mentioned financial tools in the Great Recession and the same can be said for many of the current day EDGE financial tools.

In commenting on the award, EDGE Board Member, Jackson W. Moore said, “This award reflects the foresight of our community’s governing bodies in creating EDGE and letting EDGE do what it does so well – providing opportunities for all people in Memphis and Shelby County to access economic prosperity.”

Moore’s assessment is disconnected from reality based on local EDGE legislative oversight testimony, external data and press reports. Under EDGE, Memphis/Shelby County has experienced below peer average total wage growth, plummeting small business vitality, neglected workforce development efforts and site availability challenges while subjecting prospective client employers to an expensive and complex application process. External corporations have even found it challenging to navigate the EDGE process and access prosperity in Shelby County. While benefiting the entitled few, it appears the focus on financial engineering has distracted from the work of economic development which should be about improving the social well-being of people. See video.

Arrogance

Rooted in the arrogance of its unaccountable birthing Memphis Tomorrow CEO organization, like them, EDGE has engaged in programming that benefits largely the entitled few in corporate / real estate interests at the expense of taxpayers. One of the innovative EDGE tools used to do this includes their retention payment-in-lieu of taxes (PILOT) program. In a stunning act of financial recklessness, the program abates existing taxes and then recognizes existing tax revenue as new tax revenue on the EDGE Scorecard. See video.

Another financial innovation is the residential PILOT program which required state legislative approval for implementation with Shelby County as the ONLY county in the State of Tennessee offering residential PILOTs. But even if one believes there is a special need for residential PILOTs in Shelby County, the entitled excess in the local EDGE implementation should leave any taxpayer aghast.

At the June 20^th EDGE meeting, two developers walked away with approximately twice as much as the taxpayer benefit with abatements totaling $19M in Memphis/Shelby County taxes. Shocking, this is $19M more than the developers would have received in any other county in the State and $9M more than the local taxpayer benefit. This occurs as even some residential developers have raised concerns as to why residential PILOTs are taking place in the midst of a robust market and housing shortage.

As for Jackson Moore and the EDGE Board, all were for the above residential PILOTs while not considering more restraint and compromises offered by taxpayers in public comment. And regarding public comment, if the EDGE Board does not like what one says, they just arrogantly gut the public record.

The former was done as Moore consistently met monthly with his EDGE Board to administer corporate / real estate tax abatements while refusing to hold and chair regular public Greater Memphis Alliance for Competitive Workforce Board meetings thereby obstructing access to prosperity through workforce development. This astounding arrogant disregard for the taxpayer occurs as workforce is the #1 economic development need throughout the country.

As discussed in recent legislative testimony, current economic development work has proceeded for some time without a plan, informed measurement or even an economic development definition to guide local work. This contributes to a lack of course correction resulting in a rigged condition while needed work is neglected. Something must change to reverse the rigged condition, trajectory and the arrogant disregard for taxpayers by Memphis corporate community leadership.

Legislative Oversight

While legislative oversight has resulted in identifying problems with the local economic development ecosystem, legislators have yet to question the EDGE Scorecard or propose a specific measurable definition for economic development.

In testimony before the County Economic Development Committee on 10/24/18, Reid Dulberger, EDGE CEO, testified that for every dollar of abated taxes invested, approximately $2.50 is generated for taxpayers. That is a 150% ROI. Do any Commissioners think that a 150% ROI from abating taxes sounds too good to be true ? Anyone ??

In fact, based on data from EDGE, that $2.50 generated and 150% ROI is bolstered by claims that as of 12/31/17 – retention PILOTs used to retain existing company operations – which includes largely the abatement of existing taxes for 19 different companies – generates $3.80 for every dollar invested or a 280% ROI.

Again, through the practice of abating largely existing taxes, a 280% return for taxpayers is generated. Sound too good to be true ? IT IS TOO GOOD TO BE TRUE ! This reporting practice is nothing more than an exercise of the EDGE Board in “smoking their own dope” using their very own innovative financial tools.

And as far as a definition for economic development, one has yet to be established. It appears, based on press reports, that local economic developers would assert a “measure of the amount of capital investment” as an economic definition given the common mention of $15M in local capital investment. But the capital investment definition does not align to recent legislative testimony which has asserted a focus on improving the social well being of people as a definition for economic development.

In short, real estate development is not economic development nor is financial tool development.

Conclusion

While celebrated by financial wonks, financial engineering is not economic development. The good news is that legislative oversight and new thinking at the Greater Memphis Chamber may better direct the work of economic development. Unless the former happens, taxpayers should expect more of the same.

With the former in mind, legislative bodies should in no way delegate defining and measuring economic development to the EDGE Board. Legislators should represent the people while calling for a new EDGE Board and telling the new EDGE Board how legislative bodies will define and externally measure economic development progress. Taxpayer funded economic development efforts should be externally measured by legislative bodies and in alignment with improving the quality of life of its resident taxpayers.

In this way, effective oversight can occur. Without it, effective legislative oversight will not occur while being reduced to a polite and propagandized quarterly reporting exercise that fails to serve the taxpayer and a community in need.

About Memphis Corporate Community Leadership (MCCL) Measured

With a special focus on Memphis Tomorrow, MCCL Measured is the first ever and exclusive tool to attempt to measure the effectiveness of Memphis Corporate Community Leadership efforts that use taxpayer money. Additional videos and resources can be found by browsing the entire site or at http://mcclmeasured.net/resources .

FOR IMMEDIATE RELEASE

Contact: Joe B. Kent, Memphis Raise Your Expectations

Phone: 901-574-4753

Email: jkent@pathtrek.net

MRYE Meets with Shelby County Mayor Lee Harris

Progress on Economic Development Policy

Memphis, Tennessee, October 23, 2018 – MRYE met today with Shelby County Mayor Lee Harris and presented him with this letter which contains MRYE’s balanced economic development policy recommendations.

We, at MRYE,  believe substantive progress was made with the Mayor on 1) ending the Economic Development Growth Engine (EDGE) retention payment-in-lieu of payment (PILOT) program, 2) some change in Economic Development Growth Engine (EDGE) board membership in the immediate near term and 3) more connected public accountability for the Greater Memphis Chamber of Commerce.

MRYE and Mayor Harris also productively discussed the need to raise expectations and thinking bigger in areas regarding career ready education, public transit and small business development. As an example, MRYE conceptually proposed a Nation leading career education initiative that would clearly and publicly define workforce development organizational areas of focus for 1) in-school audiences and 2) out of school audiences with the support of a research based plan, data, measurement and career pathways curriculum. Properly implemented, the plan stands to retain/develop talent, decrease the career counselor caseload and potentially save money while increasing career ready post-secondary completion rates.

MRYE further discussed that public awareness training needs to take place related to tax rates and tax burden. Such awareness training helps provide the foundation for providing a dedicated public transit funding source. For example, in the meeting, it was discussed that the combined Memphis/Shelby property tax rate is higher than Nashville/Davidson but the Memphis/Shelby property tax burden is lower than Nashville/Davidson.

MRYE also demonstrated and shared concerns regarding EDGE incomplete retention PILOT accounting methodologies and measurement that have gone to justify excessive retention PILOTs and undermine the tax base costing Memphis/Shelby taxpayers and a community in need millions. Concerns over excessive EDGE residential PILOTS were additionally communicated to the Mayor.

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About Memphis Raise Your Expectations (MRYE)

MRYE is the local grassroots economic development thought leader. MRYE was the first to conduct a public survey on economic development while leveraging the Amazon Road Map criteria and  publicly proposing on the record the prioritized adoption of the Amazon Road Map and a definition for economic development based on improving the social well-being of people.

With a majority black population, social justice in Memphis starts with taxpayer justice. But taxpayer justice is not the norm with a Memphis Tomorrow CEO corporate community leadership complex that leverages federal, state and local taxpayer money while their initiatives deliver declining results for the taxpaying community. It was recently said in the Memphis Business Journal:

 “We’ve got an enormous number of enormously rich people that have convinced themselves that they’re rich because they’re smart and constructive. And they don’t like government, and they don’t like to pay taxes.” And then said, “Everybody talks about monetary policy but the lesson of all this is we need better, stronger supervisory powers.”

This is not some activist from Memphis Raise Your Expectations (MRYE) talking or some “liberal”. It’s 91 year-old Paul Volcker. Paul Volcker was conservative Republican Ronald Reagan’s Federal Reserve Chairman. And he is saying the same thing that MRYE is saying in calling for more legislative oversight and balanced economic development policy while indirectly talking about the likes of Memphis Tomorrow.

Volcker’s remarks regarding supervisory powers goes to fundamental checks and balances of the type that Memphis lacks. In a stunning move, after the Memphis City Council sought to reverse the will of the people through referenda for instant run-off voting (IRV) and term limits, it voted to fund a public education campaign on the referenda. Couple the former, with the historical lack of oversight of Memphis Tomorrow taxpayer funded initiatives, to the tune of a $124M recurring Memphis/Shelby taxpayer loss and systemic taxpayer injustice occurs for a community in need.

The Greater Memphis Chamber of Commerce often connected with Memphis Tomorrow taxpayer funded initiatives seems to be leaning toward a more taxpayer accountable model in current proposed economic development reform efforts but only time will tell. The Chamber just named Beverly Robertson, formerly of the National Civil Rights Museum (NCRM), as its interim CEO.

Transformational or Symbolic

The Beverly Robertson Chamber CEO announcement, promoted as transformational and symbolic, is sure to put the local Memphis establishment at ease. Robertson was selected based on her deep connections to the community and corporate, non-profit and small business experience. But will the selection be merely symbolic or transformational while contributing to taxpayer justice?

It must be stated, that the NCRM from which Robertson came, has not been locally publicly active in such critical taxpayer justice matters as public transit or reversing excessive EDGE corporate/real estate incentives that undermine public service funding for taxpayers, small business and a community in need. The type of corporate incentives that undermine the tax base and result in taxpayer injustice are the type that Robertson’s advocate in Willie Gregory and his own Nike enjoy.

Nike, currently running a social justice campaign, is the beneficiary of a $50M Memphis/Shelby County tax abatement. The tax abatement transfers taxpayer wealth from one of the most impoverished areas in the country in Memphis (27%) to one of the least impoverished areas in Beaverton/Portland, Oregon (13%) where Nike headquarters is located

For what it’s worth, the former is not social or taxpayer justice. And Nike is only one of several beneficiaries of retention PILOTs that come at an estimated Memphis / Shelby County taxpayer loss of $250M while being reported as a $600M gain by the Economic Development Growth Engine (EDGE) Board . The former $850M discrepancy and taxpayer injustice results from the EDGE Board’s use of  incomplete accounting over a 7 year period that treats existing tax revenue as new revenue. This practice illustrates Volcker’s concerns.

Strangely and given the results, MRYE and MCCL Measured are the only groups in Memphis calling for a new EDGE Board. The editorial and social justice paralysis on this issue is startling and an indication of a rigged Memphis system that taps down expected thoughtful dissent at the expense of the community good. Transformational change in favor of taxpayer justice is in order…..

Conclusion and Good News

In a City known for its symbolic overtures, here is the good news. While representing the local business community, Robertson clearly has the breadth of experience to connect and lead transformational efforts. To do this, Robertson will be required to reject the arrogance of the rich “smart and constructive” to which Volcker refers. In Memphis, Volcker would be referring to Memphis Tomorrow.

Such rejection will likely result in Robertson eliminating silos while leveraging her vast experience to connect community and recruiting initiatives for the benefit of local business and the taxpayer. In this way, when taxpayer funds are involved, Robertson would know that the taxpayer is the customer; something Memphis Tomorrow has never known. And Robertson, will hopefully welcome needed oversight, which Volcker referenced as a need, to drive balanced economic development efforts .

Memphis Tomorrow can best help the City by returning $1.5 billion back to the taxpayer in a lump sum by the end of 2018 and shutting their doors.

Change is in order and Beverly Robertson has the experience, connections and team in place to blaze the transformational  trail. A trail that hopefully leads to social and taxpayer justice through balanced economic development efforts that improve the social well being of the Memphis people.

In a nightmare scenario for any city, Memphis problems and standards for performance start at the top with Memphis Tomorrow. Memphis Tomorrow is a local CEO organization, founded by Joseph Reeves “Pitt” Hyde III, that cloaks itself as a community / economic development organization. But the organization is way down in its categories of public safety, workforce and economic development while their non-profit initiatives feast upon a cauldron stew using your tax dollars from federal, state and local sources.

All the while, caped under the label of “economic development”, excessive locally targeted corporate / real estate tax abatements under the Memphis Tomorrow EDGE initiative flourish for the benefit of the few at the top as local small business vitality declines, Shelby County growth lags its peers and income inequality explodes.

Based on what has been researched, this dreadful Memphis Tomorrow Fast Forward initiative performance can be shown to cost Memphis/Shelby taxpayers $124M per year. Frightening is the lack of alarm by local community leaders and rigorous oversight of Memphis Tomorrow initiatives. This appears to be because decline and poor performance have been going on for so long that it has been culturally normed. Leaders that only know Memphis, mistake the social hierarchy of Memphis Tomorrow for community and economic development proficiency.

Memphis Tomorrow can best serve Memphis by providing a $1.5 billion immediate contribution in full up front to the City, stop rigging up the community for decline and shutting down. This will fulfill Memphis Tomorrow promises by providing funds that will help bring the local ecosystem up to average.

DISCONNECTED

Spooky, this normalcy of decline, fueled by low expectations, was evident in a recent Commercial Appeal story. Duncan Williams, a local community leader, said that commenting on the future plight of Memphis Tomorrow is “above my pay grade”. Apparently disconnected from reality, Williams is clearly enchanted by, and yielding to,  the local social hierarchical construct while not fighting for the taxpayer for an end to Memphis Tomorrow.

Further, also mentioned in the CA article was Spence Wilson Jr. of the Greater Memphis Chamber Chairman’s Circle and Kemmons Wilson Companies. With trend data in hand, regarding local taxpayer funded initiatives under corporate community leadership, I requested a meeting with Wilson about a 1.5 years ago while questioning leadership effectiveness. Wilson, apparently disconnected from reality as well, like so many in the community leadership complex, declined to meet with me. Instead, Wilson wrote in part through email the following:

“I disagree with your overall assessment of where we are as well as the validity/effectiveness of some of the groups you mention. And, given what little I’ve experienced but more of what others have shared regarding their dealings with you, I doubt your ability to be a uniter. Uniting together as a community has been the key ingredient with humility, trust and mutual respect being some of the key values. Above all, each participant has had to EARN the respect of others every step of the way.”

Wilson’s observations are understandable. Needed confrontation to bust up what is working for a small few and Not for the overall good, is rarely, if ever viewed as uniting or humble by establishment figures such as Wilson. On the other hand, his arrogance towards the taxpaying public is evident in implying that a taxpayer must “EARN” (in all caps) their right to question the performance of taxpayer funded initiatives. With that, the question now, for Wilson 1.5 years later, with the same Memphis Tomorrow community / economic development complex in place, “Where are we now?”. Wilson also serves on the National Civil Rights Museum (NCRM) with Pitt Hyde. The NCRM will be discussed later.

It should also be stated that Jack Moore, a former banker and Wilson’s in-law, serves on the EDGE Board. The diverse EDGE Board has systematically awarded locally targeted corporate / real estate PILOTs using bogus, incomplete accounting that overstate tax revenue generated by an estimated $850M at an estimated loss to taxpayers of $250M+ while claiming an estimated gain of $600M. EDGE uses an accounting methodology that eerily recognizes existing tax revenue as new revenue in many cases.

In a shocking performance, Moore took over the Greater Memphis Alliance for Competitive Workforce (GMACW) initiative as its new Board Chairman under EDGE. Moore managed to only have 1 GMACW meeting in the past year while he met every month with the EDGE Board to administer corporate / real estate tax abatements. So much for education and workforce development for a community in need, under Moore, who is part of the Wilson clan.

As far as the benefits of diversity on the EDGE Board, the benefits of diversity are overrated in this case. To correct this, I would prefer a new diverse or non-diverse and professionally balanced EDGE Board that would implement balanced economic development policy. A professionally balanced non diverse board would consist of all black females or males or all white females or males. Or, a new professionally balanced diverse board would work as well, as long as it replaces the EDGE Board in place now.

THE HORROR SHOW FILTERS DOWN

There is no sense of urgency in Memphis – NONE. Horrifying, deficient community leadership proliferates throughout the system starting at the top, with Memphis Tomorrow. As an example, almost 2 years ago, Transit Funding – Memphis Deserves Great Transit was published. The study confirms inadequate funding challenges local transit.

Adequate transit supports poverty reduction, workforce reliability, community competitiveness and sustainability. But the “visionaries” of Memphis Tomorrow have yet to publish a funding policy position for adequate public transit. At the same time, the NCRM where Hyde and Wilson are both board members, have yet to publish a position either. NCRM states on their website that they, “examine today’s global and civil rights issues, provoke thoughtful debate and serve as a catalyst for positive change”. Go figure….

Further, a new EDGE Board is needed as a fundamental system check for a tax abating board. Memphis Tomorrow advocated for the creation of an EDGE Board that did not protect the public interest in board member term limits or legislative approval for economic modeling used to justify excessive corporate/real estate tax abatements. Excessive tax abatements have gone to undermine the tax base of a community in need, as income inequality explodes and small business vitality declines.

While there are several examples of excessive abatements, one example involves Nike, currently running a social justice ad campaign. Currently,  through an EDGE retention PILOT tax abatement, $50M in wealth is being transferred from one of the most impoverished communities in Memphis (27%), to one of the least impoverished in Portland/Beaverton Oregon, (13%) where the Nike headquarters is located.

Frightening, while it seems everyone was for the social justice found in statue removal (symbols over substance), a number of local advocacy organizations lack public policy positions on substantive issues that can help reverse poverty, small business vitality and slow economic growth trends in, for example, a new EDGE Board or public transit funding. Those organizations that lack public positions include: Memphis Tomorrow, Greater Memphis Chamber, Shelby County Chamber Alliance, EDGE, NCRM, Black Business Association, NAACP and MLK50 to name just a few.

Ghastly is when advocacy organizations don’t advocate on substantive issues for a community in need while yielding to the status quo at the top and seemingly in this case to Memphis Tomorrow. In a way it seems the Memphis Tomorrow complex demands allegiance to a social hierarchy of nonperformance that has mastered the mechanics of control while failing miserably in the art of evolving the community ecosystem.

At any rate, in this analysis, social justice organizations are overrated. By the way, can we get some transit in here if we move the Crump statue? Don’t bother, it won’t work.

THE PRESS

Terrified, the Memphis press won’t write about the paralyzing outcomes of Memphis Tomorrow or even call for a new EDGE Board.  It must be stated that the Memphis decline has systematically occurred without an external event while spanning elected official’s terms over the past 15 years.

This points to a deficient corporate community leadership culture as Memphis leads the country in both nonprofits per 10,000 population and poverty. That should raise a huge, blood red flag , but it really doesn’t. It’s a system that is designed from the top to decline. Lacking press and rigorous legislative oversight results in a rigged system that lacks needed vitality to support economic growth.

CONCLUSION – GOOD NEWS !

There is good news and it’s not coming from the highly deficient Memphis Tomorrow corporate community leadership complex. Its coming from the people in groups like Memphis Raise Your Expectations (MRYE). MRYE is leading voter discussions while laying out economic development positions that question real power when no one else will. MRYE is leadership while the likes of Hyde, Williams, Wilson and Moore seem to mistake leadership for a lack of advocacy and  bureaucratic conformity to a rigged, Crump like social hierarchical system that is not working.

See my videos and blogs at – http://mcclmeasured.net/resources/

ABOUT MCCL MEASURED

Memphis Corporate Community Leadership (MCCL) Measured is the first ever, and currently exclusive tool for measuring the effectiveness of the Memphis Corporate Community Leadership complex.