The popular method of attracting new employers, by offering them cash incentives to locate or expand in a certain area, is going to be re-examined in San Antonio, News Radio 1200 WOAI reports.
Northwest side Councilman Greg Brockhouse says largely, incentives have been used to attract businesses to the central city, which is unfair to businesses in other parts of town.
"It’s time to reduce or eliminate incentives that have been targeted to specific areas of town. These policies have disproportionately hurt small and medium sized businesses and underserved areas of San Antonio," Brockhouse said.
Downtown Councilman Roberto Trevino says he welcomes the opportunity to point out the importance of incentive programs, and he says locating employers downtown is the best way for the city to grow.
"Continuing urban sprawl is not the most needed parts of our city," Trevino said. "It is the urban core which, I am confident, will rise to the top when looking for areas which could benefit from these public/private partnerships."
The use of taxpayer money to attract businesses to a community or a neighborhood has been controversial for years, and has become more controversial as cities around the country vow to offer as much as $1 billion in incentives to attract Amazon.com's second headquarters.
Opponents say incentives amount to 'corporate welfare,' and ask whether taxpayer money should go to line the pockets of wealthy corporations.
But business development experts say incentives are the best way to secure robust employers, who will more than repay the incentives over the years through property and other taxes, and the increased contributions of hundreds or thousands of new employees.
"As a growing city that is looking to be among the best in the nation and internationally, these incentive programs allow us that opportunity and for this reason, we gladly support a review of how we can most effectively utilize them," Trevino said.
Brockhouse asked whether reductions in regulations and perhaps tax abatements, rather than outright gifts of cash to companies, might be a fairer way to attract new employers.
The issue will come up at a future City Council meeting.