Private businsses must now compete with city

By Beverly Dykes
Posted 10/2/09

Editor:

Is a city’s mission/purpose to go into competition with private businesses?

It appears so when you look at what the city of Fairhope has done. My questions for the mayor and council members are:

1. What business licenses does the …

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Private businsses must now compete with city

Posted

Editor:

Is a city’s mission/purpose to go into competition with private businesses?

It appears so when you look at what the city of Fairhope has done. My questions for the mayor and council members are:

1. What business licenses does the Recreation facility buy?

2. What taxes does the Recreation facility pay?

3. Does the Recreation facility have to pay for advertising in the local newspapers or do they get free advertising/articles written strictly because it is a municipality?

4. Is the Recreation facility protected by state statutes on how much individuals can recover if injured, thereby obviating the need for liability insurance?

5. If the Recreation facility is not self-sustaining, due to the low rates and the free services provided to city employees, can it raise taxes to insure that it continues in its activities?

As is stated on the City of Fairhope Web site under Recreation Center Information, “Our rates are extremely competitive and offer value for the entire family” and the newspaper announced “Recreation Center to serve “all of Fairhope.” After reviewing the Web site, it is noted that this facility is not just for residents of Fairhope but the Fairhope Public School District which encompasses Montrose, Battles Wharf, Point Clear, Marlow, Barnwell, the westside of Fish River and to the Silverhill city limits.

By my count there are currently 11 private businesses that provide health and fitness facilities for the residents of the Fairhope area. All of these business have to pay for the items enumerated above as well as pay the city for utilities, buy advertising, pay employees, buy insurance and all the necessary overhead costs. They must do this and not raise their fees in order to be able to compete with the city’s recreation facility, which doesn’t have to pay any of these costs.

In addition to its utilities revenue, the city relies on fees and taxes to fund its operations. Now the fees and taxes paid by these private health and fitness businesses are helping to fund their competition. What a sad comentary if the city “business” puts the private ones out of business?

Is it fair for the city to compete with private small businesses?

Curves-Fairhope owner