Shopping locally helps tax base

By Curt Chapman
Staff Writer
Posted 1/14/10

FAIRHOPE, Ala. — It should come as no big surprise that the leader of the Eastern Shore Chamber of Commerce touts shopping locally. After all, many economists suggest that as more and more money is being spent online, the local tax structure can …

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Shopping locally helps tax base

Posted

FAIRHOPE, Ala. — It should come as no big surprise that the leader of the Eastern Shore Chamber of Commerce touts shopping locally. After all, many economists suggest that as more and more money is being spent online, the local tax structure can falter and jobs be lost close to home.

During a Monday interview, Darrelyn Bender, ESCC president discussed her thoughts on where we are and where we are going economically. The outlook is a mixed bag of good and bad.

“I’m still cautiously optimistic,” Bender said. “We see certain things going up, but not a lot. We hear real estate is on a roller coaster, and sales are good in certain places — not in others.”

She noted the economic numbers are looking more positive nationally as stock values slowly tick up and job loss slows, but added it takes each of us to make an economic difference.

“We need to keep consumer confidence up and we need to shop locally,” Bender said. “We must keep tax dollars here in Baldwin County and the Eastern Shore and off the Internet.”

The local tax base is certainly of growing importance of late, particularly if on March 23 voters approve a 1 percent sales tax earmarked for Baldwin County’s public schools. School officials say the added tax, which would be on the books for three years if passed, would help ease the system’s current fiscal crisis.

But, there are other reasons Bender believes visiting mom and pop shops, and even chains that employ locals, is important.

She said, “I think people will be sorry if they keep shopping on the Internet and they then need something on a short-term notice. The local businesses won’t be here.

“When things come to a grinding halt, and people are scared, people don’t buy things, (retailers) don’t keep them in their stores and people get fired.”

Combatting that is one of the jobs the Chamber takes seriously. Bender said, “We’re getting out the word that the Eastern Shore is still in business through creative advertising. We’re also barter trading to get ads in trade publications and in Valpak coupon mailers. We’re still trying to figure out other ways to get the info out that this is still a great place to live and do business.”

Encouraging growth is also vital, Bender said, adding, “If you’re not growing, you’re dying. We’re working hard to keep that from happening.”

Bender pointed out that an aging population means some will be lost naturally, while others move elsewhere to seek jobs. She said large employers such as shipbuilder Austal USA and ThyssenKrupp are close enough to create an economic domino effect on the Eastern Shore.

In fact, although the ThyssenKrupp steel rolling mill remains under construction, crews there are gearing up for production with word Tuesday that the company has just shipped 400 slabs from its Duisburg works in Germany to the new plant. The initial shipment weighs 10,000 tons, and should reach Calvert within three weeks. A total of 500,000 tons is expected to arrive at the plant by September.

A Brazilian slab works is expected to come online the middle of next year, but it is unclear whether it will replace the Duisburg stream.

Direct and indirect jobs from the two facilities, along with the expected employment from a Chinese auto plant planned near Bay Minette will add a considerable boost to the local economy, according to Bender.

She said the HK Automotive plant’s chances of being built are now at 85 percent because the principal investors have $76 million in the bank for development. The 5,000 jobs expected will not materialize, however, until a more than $1 billion goal is met. Bender said some suppliers have committed to locate here if the car plant is built, but she declined to identify who they are.

Other Chamber projects are moving closer to fruition, and are part of the business group’s Blueprint for Tomorrow, a set of plans and long-range goals.

“We are working on getting the technology innovation center up and running, in conjunction with area universities,” Bender said. The University of Alabama and Auburn University are already on board, she said, and the organization is in talks with the University of South Alabama.

Bender said the idea involves matching entrepreneurs with professors who work with the patent process, in hopes of improving the 30 percent chance a fledgling enterprise will survive.

“We’re focusing on green energy,” she said. “It’s baby steps to get the economy going. It’s growing business at our local level.”