'Plan B'? Rename it 'Plan F' for 'Fantasy'

April 26, 2008 12:16 am

Debby Girvan's "Plan B" alternative to the Kalahari Resort is for the city to attract small to mid-size businesses in the areas of education, health care, new media, and data technology.

Presumably, these businesses will generate the $80 million needed by the city to pay for upcoming mandated capital improvements, as well as maintain core services.

While her "Plan B" may make a good campaign sound bite, it does not pass the reality test.

The businesses listed by Ms. Girvan would be subject to only two city taxes: real-estate and BPOL. These businesses are typically found in Class A office parks, the kind that are springing up throughout Northern Virginia, Stafford, and Spotsylvania. Occupancy rates are falling because the market has been overbuilt.

When City Council designated Celebrate Virginia as a tourism campus years ago, it acknowledged tourism as the city's best bet for economic development.

The council also wisely positioned the city to capture far more taxes from the businesses located there, as permitted by Virginia law.

Instead of paying only two taxes, like the businesses in Ms. Girvan's plan, the Kalahari Resort will pay seven different taxes. That's one reason why the income projections are so high for Kalahari.

Ironically, Ms. Girvan's dream of attracting and expanding small to mid-size businesses will also be realized, thanks to Kalahari. These smaller businesses will provide many of the goods and services used by the resort.

It concerns me that Ms. Girvan does not seem to grasp the fundamental realities of economic development. Mayor Tom Tomzak does.

During his first term, he has put Fredericksburg on the map in terms of scoring economic development "home runs." He deserves to be re-elected.

Mary Jane O'Neill

Fredericksburg

The writer is a member of the Fredericksburg Economic Development Authority.