The Sacramento business climate is harsh. Businesses complain that they can enjoy lower costs and less governmental burden in other markets. They wonder if they should remain here or buy into claims from Austin, Dallas and Houston that their business environments are better. This proposal and two others in this series will show how to make Sacramento more business friendly and reduce the allure of other cities. This is proposal one.
Proposal 1: Create a business park pilot program
Sacramento County must create a 20 square mile business park as a pilot program that is extremely business friendly. All commercial dwellings and existing home offices residing in this zone shall enjoy internet speeds of 100Mbps or more upload and download. This will attract technology-intensive companies including server farms, cloud providers, ISPs, web hosts, ecommerce developers and online retailers. Companies in these fields reside in the information age. They make the Sacramento market more attractive and render Austin, Dallas and Houston relatively less attractive.
These companies create high paying jobs. They will help put Sacramento on the map and render other markets relatively less attractive. People who work at these jobs will purchase homes and invest in other local real estate. They will support local businesses. They will fall in love with the Sacramento area and its forward thinking.
Some people may disagree. They can reply that high speed Internet access is wonderful but somebody has to pay for it. Who would pay? Developers? Tenants? County? Sacramento County can partner with a local vendor to pull fibre into all commercial dwellings and existing home offices. Customers will pay fair market value for this service. Proceeds will be split evenly between the County and the cable installer for 99 years.
Dissenters will also reply that Sacramento County cannot kill the luster of Austin, Dallas and Houston. Every metropolitan area has its attributes. Some folks will visit Austin, Dallas or Houston, return and say “I want to live and relocate my business there.” The law of averages says that will happen. Sacramento needs to develop a similar attractiveness. Rivers, lakes and good weather appease those who are already here, but they are not enough to attract more business. Decision makers need solid reasons and faith that the environment is business-friendly. Creating the business park will fit that need and help attract those who would otherwise move to Texas.
Next up: The governmental burden on small businesses.