WEBVTT 00:00.467 --> 00:01.435  - (female announcer)   Production funding for 00:01.435 --> 00:04.771  Behind the Headlines   is made possible in part by 00:04.771 --> 00:06.807  the WKNO Production Fund, 00:06.807 --> 00:09.009  the WKNO Endowment Fund 00:09.009 --> 00:12.446  and by viewers   like you, thank you. 00:12.446 --> 00:16.049 - The debate over tax incentives and economic development 00:16.049 --> 00:18.418 tonight on Behind the Headlines. 00:18.418 --> 00:20.988 [intense orchestral music] 00:35.469 --> 00:37.137 I'm Eric Barnes of The Daily Memphian. 00:37.137 --> 00:38.605 Thanks for joining us. 00:38.605 --> 00:40.841 I am joined tonight by Martavius Jones 00:40.841 --> 00:43.076 from the Memphis City Council. 00:43.076 --> 00:44.111 Councilman, thanks for being here. 00:44.111 --> 00:45.379 - Thank you for having me. 00:46.880 --> 00:49.316 - Along with Tami Sawyer, from the Shelby County Commission. 00:49.316 --> 00:51.051 Commissioner Sawyer, thank you for being here. 00:51.051 --> 00:53.053 - Thank you so much for having me. 00:53.053 --> 00:54.288 - Along with Bill Dries, 00:54.288 --> 00:56.790 reporter with, The Daily Memphian. 00:56.790 --> 01:00.394 We are talking today about this conversation, this debate 01:00.394 --> 01:01.962 that has been going on as long as we've been doing 01:01.962 --> 01:04.031 Behind the Headlines and certainly before that, 01:04.031 --> 01:05.899 about how the County, the City, 01:05.899 --> 01:08.769 the region does tax incentives. 01:08.769 --> 01:12.306 Scheduling note that we taped this before a joint meeting 01:12.306 --> 01:13.941 of the City Council and the County Commission 01:13.941 --> 01:15.876 that happened the day before this airs. 01:15.876 --> 01:17.377 And also last week, 01:17.377 --> 01:20.013 we did a show with Reid Dulberger from EDGE, 01:20.013 --> 01:21.848 which is the entity that administers 01:21.848 --> 01:23.784 many of the tax incentives in town. 01:23.784 --> 01:26.286 As well as Worth Morgan, a City Councilman 01:26.286 --> 01:27.554 who would like to streamline 01:27.554 --> 01:28.989 and change in probably a different direction 01:28.989 --> 01:30.657 than I believe the two guests today. 01:30.657 --> 01:34.061 And that show is available online at wkno.org. 01:34.061 --> 01:36.730 But I will start with you Councilman Jones, 01:38.031 --> 01:41.368 what are you calling for in terms of changes 01:41.368 --> 01:44.604 to how PILOTs and other tax incentives happen? 01:46.106 --> 01:49.109 - First Eric I think we need to have the discussion 01:49.109 --> 01:52.145 and review of the EDGE Board. 01:52.145 --> 01:56.483 EDGE was constituted for approximately 10 years ago. 01:56.483 --> 01:58.952 And we need to as the elected officials 01:58.952 --> 02:01.154 that delegated our responsibility 02:01.154 --> 02:02.856 the County Commission and the City Council 02:02.856 --> 02:05.158 I think we need to have a discussion to see 02:05.158 --> 02:08.829 if we're satisfied with what the results have been, 02:08.829 --> 02:11.264 if there are any adjustments that are necessary 02:11.264 --> 02:14.301 and how do we move forward? 02:14.301 --> 02:16.903 You know, I look back at what may have been 02:16.903 --> 02:19.272 the major employment wins 02:19.272 --> 02:21.208 and they seem to have been short lived 02:21.208 --> 02:23.010 when it comes to the incentive. 02:23.010 --> 02:25.178 The most recent being ServiceMaster. 02:25.178 --> 02:28.181 But when we talk about Electrolux and Mitsubishi 02:28.181 --> 02:30.283 some of the ones that received 02:30.283 --> 02:31.918 some of the greatest incentives, 02:31.918 --> 02:33.487 they didn't seem to last long. 02:33.487 --> 02:34.688 So I don't think that we're getting 02:34.688 --> 02:36.590 and those are just the high profile ones 02:36.590 --> 02:38.392 the ones that make the headlines. 02:38.392 --> 02:41.028 I'm of the opinion we're not getting the results 02:41.028 --> 02:43.063 that were intended. 02:43.063 --> 02:46.900 - And are you calling for, when you talk about the vote 02:46.900 --> 02:50.370 and the Council to have a vote on specific projects 02:50.370 --> 02:52.439 that do and don't get incentives, 02:52.439 --> 02:53.940 or did I misunderstand you? 02:53.940 --> 02:56.410 - Yes and so there's, you know 02:56.410 --> 02:57.978 there are a number of different factors 02:57.978 --> 03:01.681 when these PILOTs and these others incentives are being, 03:01.681 --> 03:03.383 when they're being evaluated. 03:03.383 --> 03:07.687 You know, there's one that generally a cost-benefit ratio. 03:07.687 --> 03:11.491 And so if one has a cost-benefit ratio less than one 03:11.491 --> 03:13.593 that means that it's costing us 03:13.593 --> 03:15.529 more than it's benefiting us. 03:15.529 --> 03:18.331 And I think that if we're gonna enter into an arrangement 03:18.331 --> 03:22.669 where we have that negative cost-benefit, 03:22.669 --> 03:25.505 I think the elected officials need to know why 03:25.505 --> 03:27.541 and we need to be the ones approving it 03:27.541 --> 03:29.443 because we're the ones who are directly accountable 03:29.443 --> 03:30.677 to the taxpayers. 03:30.677 --> 03:31.711 And that's just one aspect of it. 03:31.711 --> 03:33.046 - Got it. 03:33.046 --> 03:35.382 And Tami Sawyer from your perspective, 03:35.382 --> 03:37.517 what sort of changes are you calling for? 03:38.985 --> 03:41.822 - There's two major things that I'm looking at Eric. 03:41.822 --> 03:44.825 First with the tax incentives 03:44.825 --> 03:48.595 that we give as a County and as a City, 03:48.595 --> 03:50.797 me being a resident of Memphis, 03:50.797 --> 03:54.234 I believe that the incentives that come through 03:54.234 --> 03:58.472 need to have community investments attached to them. 03:58.472 --> 04:02.109 Currently, we give this incentives out willy-nilly 04:02.109 --> 04:05.212 with no requirement to invest in our schools, 04:05.212 --> 04:10.217 our roads, you know and it remains a continuous issue. 04:11.418 --> 04:14.121 We say that we need to incentivize businesses 04:14.121 --> 04:15.489 choosing Memphis. 04:15.489 --> 04:17.324 And we blame our workforce. 04:17.324 --> 04:19.559 We say that we don't have a strong workforce. 04:19.559 --> 04:21.895 Remember up until three years ago, 04:21.895 --> 04:25.766 our city was marketed as one of the lowest wage, 04:26.933 --> 04:31.671 lowest places to pay wages in the country. 04:31.671 --> 04:36.676 And so what I would like to see is incentives redone, 04:37.811 --> 04:41.448 repackaged with some type of community fund 04:41.448 --> 04:45.886 requiring these companies, the larger ones especially. 04:47.454 --> 04:49.756 This is not necessarily focusing on 04:49.756 --> 04:53.460 small business development but on the larger companies 04:53.460 --> 04:57.097 to invest in the community, whether that be childcare, 04:57.097 --> 05:00.233 school systems, roads, et cetera. 05:00.233 --> 05:04.738 And then second to Councilman Jones' point. 05:04.738 --> 05:06.807 There needs to be more oversight. 05:06.807 --> 05:09.509 I actually would love to use my counterparts 05:09.509 --> 05:12.946 the Republicans talking points here 05:12.946 --> 05:16.483 where during the COVID crisis 05:16.483 --> 05:20.020 they have continuously shown chagrin 05:20.020 --> 05:22.556 for the role of the health department 05:22.556 --> 05:25.692 and said, "We are listening to non-elected people. 05:25.692 --> 05:28.962 Why are we allowing non-elected people to make decisions," 05:28.962 --> 05:31.198 and their attacks on the health department. 05:31.198 --> 05:34.668 Here we are putting our largest business decisions 05:34.668 --> 05:39.673 in the hands of EDGE and DMC who are extremely powerful 05:40.774 --> 05:42.275 and the average Memphian wouldn't even know 05:42.275 --> 05:45.779 what those acronyms mean and who runs them. 05:45.779 --> 05:49.049 - Yeah and EDGE is the Economic Development Growth Engine 05:49.049 --> 05:51.451 that again we had the CEO, President on last week 05:51.451 --> 05:53.753 and they administered the PILOTs, 05:53.753 --> 05:56.423 the payment in lieu of taxes, as well as some other grants. 05:56.423 --> 05:58.191 DMC is Downtown Memphis Commission, 05:58.191 --> 05:59.593 which is probably one of the biggest, 05:59.593 --> 06:01.394 if not the biggest incentive giver. 06:01.394 --> 06:02.762 One more question to you on what you just said 06:02.762 --> 06:04.130 and then we'll go to Bill. 06:04.130 --> 06:07.534 On this notion of investment so it is the idea 06:07.534 --> 06:10.537 that for a company to get say a PILOT, 06:10.537 --> 06:13.139 and you know, you're talking about larger companies, 06:13.139 --> 06:14.341 not small businesses. 06:14.341 --> 06:15.942 That they would also have to spend, 06:15.942 --> 06:19.012 commit to spending cash on say, schools or childcare, 06:19.012 --> 06:20.780 that there would be committed cash outlays on the part 06:20.780 --> 06:23.016 of the company that's being recruited? 06:24.417 --> 06:27.187 - Yes I mean, I haven't spelled the entire thing out 06:27.187 --> 06:30.357 but I do believe yes, that that is what's important. 06:30.357 --> 06:33.827 If you're coming here and you want the talent, right? 06:33.827 --> 06:36.930 ServiceMaster says they need to go to Atlanta, 06:36.930 --> 06:38.665 their new parent company 06:38.665 --> 06:41.901 "that's where the talent is," quote unquote. 06:41.901 --> 06:45.505 But you know, we know that the current statistic 06:45.505 --> 06:47.274 for our schools is we're graduating 06:47.274 --> 06:49.309 only a third of our students, 06:49.309 --> 06:52.312 prepared for work or college, right? 06:52.312 --> 06:55.515 And if we have all of these Fortune 500 companies 06:55.515 --> 06:58.485 and large businesses that are getting tax incentives 06:58.485 --> 07:02.922 and we're still producing low education for our students, 07:02.922 --> 07:05.025 they should have some type of commitment. 07:05.025 --> 07:06.926 If we're not gonna change our budget 07:06.926 --> 07:08.695 to invest in education, 07:08.695 --> 07:10.664 if we're gonna focus on business development, 07:10.664 --> 07:12.265 then the businesses should be required 07:12.265 --> 07:14.434 to invest in our youth. 07:14.434 --> 07:17.637 - And I think the proponents, and again, I'm sorry Bill. 07:17.637 --> 07:20.807 But the proponents of these incentives would say, 07:20.807 --> 07:22.475 "Well they are still paying property taxes 07:22.475 --> 07:24.744 and those property taxes do go to the schools." 07:24.744 --> 07:27.280 And the second perspective that they always have 07:27.280 --> 07:29.282 to think into something like that is 07:29.282 --> 07:30.884 they won't come to Memphis. 07:30.884 --> 07:33.486 They will go to another city or another state 07:33.486 --> 07:36.189 where they don't have to make those investments. 07:36.189 --> 07:39.693 Because it's all sort of the low cost choice 07:39.693 --> 07:41.728 in terms of what incentives are on the table 07:41.728 --> 07:45.065 because, you know thousands of entities around the country, 07:45.065 --> 07:46.800 cities, state and region 07:46.800 --> 07:48.068 are doing these sorts of incentives. 07:48.068 --> 07:49.202 So again, your response to that 07:49.202 --> 07:51.037 and then Bill I promise I'll go to you. 07:51.037 --> 07:52.872 - Yeah, very quickly I would just say that 07:52.872 --> 07:54.574 if you look at what's happening 07:54.574 --> 07:56.576 with tax incentives across the country, 07:56.576 --> 07:59.879 reform is the word of the day. 07:59.879 --> 08:02.716 Boston is reforming their tax incentives 08:02.716 --> 08:05.318 to be more inclusive in the community. 08:05.318 --> 08:09.656 Washington, DC required 35% MWBE investment. 08:09.656 --> 08:12.892 That's investment in Minority and Women-owned Businesses 08:12.892 --> 08:15.061 for the building of the National Harbor. 08:15.061 --> 08:17.897 That was almost what a billion dollar development. 08:17.897 --> 08:21.401 And so when we say like, we can't make these requirements 08:21.401 --> 08:24.471 or people won't come, how does that work 08:24.471 --> 08:27.907 when we see major cities making changes 08:27.907 --> 08:29.676 that impact their community? 08:29.676 --> 08:32.078 San Antonio redid the entire system. 08:33.179 --> 08:36.049 You know, Atlanta where people were going, 08:36.049 --> 08:37.751 has requirements to invest 08:37.751 --> 08:41.020 in Minority-owned businesses in the communities. 08:41.020 --> 08:43.490 Memphis has low self-esteem when it comes to these things, 08:43.490 --> 08:44.991 we think we can't require things, 08:44.991 --> 08:46.493 or people won't come here, 08:46.493 --> 08:48.128 when everywhere else is like 08:48.128 --> 08:49.696 you're not gonna play my people like that. 08:49.696 --> 08:54.300 New York is requiring statewide 30% MWBE investment. 08:54.300 --> 08:56.503 And we're still like, "Oh, no." 08:56.503 --> 08:59.906 - Right, Bill go ahead. 08:59.906 --> 09:04.043 - Councilman, let me ask you about EDGE's 09:04.043 --> 09:05.245 current requirement, 09:05.245 --> 09:09.349 kind of the entry level requirement on wages 09:09.349 --> 09:12.786 which is $13 an hour plus employer 09:12.786 --> 09:17.357 subsidized health insurance or healthcare access. 09:18.758 --> 09:23.029 Is $13 an hour with that stipulation, is that enough? 09:23.029 --> 09:25.865 - No, frankly no. 09:25.865 --> 09:28.201 Just a few council meetings ago, 09:28.201 --> 09:31.237 Mrs. Beverly Robinson, who is the chair of the Chamber, 09:31.237 --> 09:33.973 provided a presentation to the Memphis City Council. 09:33.973 --> 09:38.978 And it indicated that for a single working person 09:40.113 --> 09:43.283 with one child, that the living wage 09:43.283 --> 09:46.219 is closer to $21 an hour. 09:46.219 --> 09:48.922 So I would contend that we are incentivizing 09:48.922 --> 09:50.857 our continued poverty 09:50.857 --> 09:55.428 if we look at and settle on $13 an hour as the floor 09:55.428 --> 09:57.564 as far as providing incentives. 09:57.564 --> 10:00.967 I by no means am I saying that we should do away 10:00.967 --> 10:02.368 with the incentives. 10:02.368 --> 10:04.504 I just think we need to be more deliberate, 10:04.504 --> 10:08.174 we need to set more direction of the types of employers 10:08.174 --> 10:11.377 and the types of industries that we incentivize. 10:11.377 --> 10:14.747 But clearly, $13 an hour is not enough. 10:14.747 --> 10:16.783 And we shouldn't be incentivizing. 10:16.783 --> 10:18.985 - Commissioner, what's your thought on this, 10:18.985 --> 10:22.722 is this all about a certain wage an hour? 10:22.722 --> 10:25.258 - That's a very important point absolutely. 10:26.392 --> 10:29.529 Thirteen dollars an hour is not minimum wage anymore. 10:29.529 --> 10:34.434 Fifteen dollars is minimum wage and we're very close to that 10:34.434 --> 10:36.970 not even being the talking point. 10:36.970 --> 10:39.138 We're looking at cities on the West Coast 10:39.138 --> 10:42.709 that are talking about $20 an hour. 10:42.709 --> 10:46.613 Banks are sending their minimum wages at $25 an hour. 10:46.613 --> 10:49.516 Bank of America just announced that by 2025 10:49.516 --> 10:52.218 they'll be at $25 an hour. 10:52.218 --> 10:55.555 And you know, people wanna make the argument 10:55.555 --> 10:58.992 that these are low talent jobs 10:58.992 --> 11:01.261 and why should they be required? 11:01.261 --> 11:04.230 And anyone who makes that statement, 11:04.230 --> 11:07.834 I would challenge them to throw boxes for eight hours 11:07.834 --> 11:11.404 in a crowded warehouse in the middle of a pandemic 11:11.404 --> 11:14.407 and not have childcare because you can't afford it 11:14.407 --> 11:18.378 on $7.50 or $12. 11:18.378 --> 11:21.080 - I think both of you have heard this argument 11:21.080 --> 11:24.217 from Reid Dulberger, the President and CEO of EDGE. 11:24.217 --> 11:27.520 Who says, "We need to have a wide range of jobs" 11:27.520 --> 11:32.458 "because if we just go after the higher paying jobs, 11:32.458 --> 11:34.594 "that we're going to leave people 11:34.594 --> 11:37.330 in the current labor market in Memphis out." 11:37.330 --> 11:40.466 Commissioner, what do you say to that? 11:42.168 --> 11:44.571 - You know, I'm doing better with my language. 11:44.571 --> 11:46.940 So the words that I would use about that 11:46.940 --> 11:49.642 I'm not going to use Bill. 11:49.642 --> 11:54.614 But I think that it is a silly argument. 11:55.982 --> 11:59.185 It's one of those arguments that makes it sound 11:59.185 --> 12:02.455 like you're invested in something when you're not. 12:02.455 --> 12:05.792 I don't think that by increasing wages, 12:05.792 --> 12:10.363 certain people aren't going to be included 12:10.363 --> 12:13.633 because there's often a profit margin that makes room 12:13.633 --> 12:15.168 for these wages. 12:15.168 --> 12:17.036 The reason that there's a national push 12:17.036 --> 12:19.272 for $15 an hour, Bill 12:19.272 --> 12:21.074 is because the minimum wage 12:21.074 --> 12:25.478 has not been increased in generations. 12:25.478 --> 12:29.582 People were still earning $7.50 as minimum wage 12:29.582 --> 12:31.351 when before I was born. 12:31.351 --> 12:35.588 And you know, I'm estimating here 12:35.588 --> 12:36.990 because I can't remember the year, 12:36.990 --> 12:39.125 but it's been a long time. [laughs] 12:39.125 --> 12:44.130 And you know, just considering that you know, 12:45.598 --> 12:49.302 the price of what a dollar is worth from 1982 to now, 12:50.470 --> 12:53.706 a dollar is almost worth $20 now. 12:53.706 --> 12:55.241 You can't walk into a store 12:55.241 --> 12:58.311 and buy something for a dollar, pretty much. 12:58.311 --> 13:01.314 And so we haven't changed minimum wage with, 13:01.314 --> 13:05.184 but we're still requiring people to live off of the days 13:05.184 --> 13:06.552 when you could get you know, 13:06.552 --> 13:09.088 a loaf of bread and milk for a dollar. 13:10.289 --> 13:13.092 - Councilman, your thoughts on this. 13:13.092 --> 13:15.862 Should economic development incentives 13:15.862 --> 13:20.266 be reserved just for new sectors in the economy 13:20.266 --> 13:22.368 and for the higher paying jobs? 13:23.770 --> 13:26.272 - On an incentive standpoint, yes. 13:26.272 --> 13:28.441 I think that there will always be 13:29.442 --> 13:33.579 a need for lower paying jobs 13:33.579 --> 13:37.617 and they will come to Memphis. 13:37.617 --> 13:40.253 But I just think that the incentives should be reserved 13:40.253 --> 13:45.258 for those higher wage industries and companies. 13:47.026 --> 13:49.095 - All right, Eric back to you. 13:52.198 --> 13:53.700 - Well for both of you, 13:53.700 --> 13:55.635 I'll just stay with you Martavius, Councilman Jones. 13:55.635 --> 13:59.539 The Mississippi factor comes up a lot, right? 13:59.539 --> 14:01.808 As does even Fayette County and Arkansas, 14:01.808 --> 14:03.342 but Mississippi is probably the number one. 14:03.342 --> 14:07.313 In terms of lower wage jobs, you know warehouse jobs, 14:07.313 --> 14:09.916 which often are a little bit more involved 14:09.916 --> 14:12.151 than we probably present them. 14:12.151 --> 14:16.055 But the argument is well if we don't offer these incentives, 14:16.055 --> 14:18.257 if we go too high on the minimum wage, 14:18.257 --> 14:20.059 if we go too high on the requirements, 14:20.059 --> 14:22.161 you can just go across the border 14:22.161 --> 14:25.498 and still have access to the airport, to FedEx, 14:25.498 --> 14:28.267 to our neighborhoods, to downtown, to Beale Street, 14:28.267 --> 14:30.336 to the Grizzlies, the Tigers, 14:30.336 --> 14:33.206 I mean all the sort of amenities that people sell 14:33.206 --> 14:34.974 and that people who live here love, 14:34.974 --> 14:38.111 you can take advantage of those by locating in Mississippi 14:38.111 --> 14:40.179 with far fewer restrictions and requirements 14:40.179 --> 14:43.416 and what the business people will say 14:43.416 --> 14:46.486 is a much more streamlined process. 14:46.486 --> 14:48.254 So it's not just competing against Boston 14:48.254 --> 14:49.422 and these other cities 14:49.422 --> 14:51.190 that Commissioner Sawyer has talked about 14:51.190 --> 14:52.658 where they've done reforms. 14:52.658 --> 14:55.394 Mississippi has not done those reforms as far as I know. 14:55.394 --> 14:56.896 And so people push back on that 14:56.896 --> 14:57.964 what's your response? 14:59.699 --> 15:01.734 - This goes back to the comment 15:01.734 --> 15:03.436 that Commissioner Sawyer made, 15:03.436 --> 15:06.506 about Memphis having a self-esteem problem. 15:06.506 --> 15:11.377 If Memphis feels that it needs to compete with Mississippi, 15:12.478 --> 15:14.514 rural areas, areas that are not developed, 15:14.514 --> 15:16.015 we have a self-esteem problem. 15:16.015 --> 15:17.049 We have a self-esteem problem 15:17.049 --> 15:18.951 if we think that that's the case. 15:18.951 --> 15:21.854 From the standpoint of warehouses, 15:21.854 --> 15:24.357 Memphis does not have hundreds 15:24.357 --> 15:28.027 or even thousands of parcels of undeveloped land. 15:28.027 --> 15:29.262 That's what you need 15:29.262 --> 15:33.699 for a 3, 4, 500,000 square-foot warehouse. 15:33.699 --> 15:35.501 That's gonna pay jobs that are, 15:36.803 --> 15:39.472 that they feel are competitive at $13 an hour. 15:39.472 --> 15:43.442 So my thing is when we talk about those jobs 15:43.442 --> 15:45.945 and the salaries that they demand or command, 15:47.079 --> 15:49.148 if we fill that we need to compete with that 15:49.148 --> 15:51.083 I think that we need somebody else at the helm 15:51.083 --> 15:54.787 who needs a better outlook and who's more optimistic 15:54.787 --> 15:58.324 about what Memphis can offer. 15:58.324 --> 16:00.560 And we need to be competing against cities 16:00.560 --> 16:02.662 like Nashville, Charlotte, Austin, 16:02.662 --> 16:05.598 not DeSoto County, not Marshall County, 16:05.598 --> 16:08.467 Fayette or Crittenden County. 16:08.467 --> 16:10.336 - Commissioner Sawyer, I see you nodding again 16:10.336 --> 16:12.872 are you not worried about that pushback, 16:12.872 --> 16:16.142 the competition with Mississippi line that 16:16.142 --> 16:18.144 the business community often uses? 16:18.144 --> 16:20.446 - No you know, I agree again. 16:20.446 --> 16:24.016 It goes back to the self-esteem issue. 16:24.016 --> 16:27.520 Who are we as a city, who are we as a state? 16:27.520 --> 16:29.622 There's a lot of things that Mississippi does 16:29.622 --> 16:31.824 that you know, are we going to, 16:31.824 --> 16:34.994 do we wanna be 50th in educating our children, 16:34.994 --> 16:38.130 do we wanna be 50th in our public health? 16:38.130 --> 16:41.767 You know, do we wanna have a month 16:41.767 --> 16:45.571 of lack of access to clean water as Jackson has right now, 16:45.571 --> 16:47.707 instead of two weeks like we had. 16:47.707 --> 16:50.042 You know, we could go on and on. 16:50.042 --> 16:52.678 But I think that again these are all arguments 16:52.678 --> 16:55.781 that we're pulling together to not even try. 16:55.781 --> 16:57.984 The biggest issue here Eric is 16:57.984 --> 16:59.986 the time to have the conversation 16:59.986 --> 17:02.955 and try to do something different is now. 17:02.955 --> 17:07.159 To say that someone might choose to go to Southaven 17:07.159 --> 17:09.495 instead of Memphis. 17:09.495 --> 17:11.264 You know, we've seen people try 17:11.264 --> 17:14.834 but even if you look at the casinos, 17:14.834 --> 17:17.203 everybody thought that we were gonna have 17:17.203 --> 17:20.439 this huge you know, second Las Vegas 17:20.439 --> 17:23.276 and it was still too far from Memphis to prosper 17:23.276 --> 17:24.877 for a long time. 17:24.877 --> 17:27.213 We are still the center of the Mid-South 17:27.213 --> 17:30.082 and that means something. 17:30.082 --> 17:32.385 - And again, I should note that last week 17:32.385 --> 17:34.754 we had Reid Dulberger from the EDGE 17:34.754 --> 17:36.722 as well as Worth Morgan from the City Council 17:36.722 --> 17:37.657 who's on the other side of this 17:37.657 --> 17:38.891 you can see that at wkno.org. 17:38.891 --> 17:40.559 Or you can download the podcast 17:40.559 --> 17:41.794 wherever you get your podcasts. 17:41.794 --> 17:43.963 So just to balance things out. 17:43.963 --> 17:48.968 On the issue of schools and the economy, 17:50.436 --> 17:52.972 or excuse me and taxes and investing in children. 17:52.972 --> 17:54.640 I mean, again the pushback would be, 17:54.640 --> 17:56.809 I have to play the role of devil's advocate today 17:56.809 --> 17:59.011 given the way we structured this. 17:59.011 --> 18:01.314 Would be that the well, if they are, 18:01.314 --> 18:03.582 if those companies are moving to DeSoto County, 18:03.582 --> 18:07.019 be they $15 or 13 hour, $10 an hour jobs. 18:07.019 --> 18:08.988 The taxes, the property taxes, 18:08.988 --> 18:11.490 they're going into the coffers of DeSoto County, 18:11.490 --> 18:13.426 Marshall County, not into Shelby County, 18:13.426 --> 18:17.229 and so the taxes that pay for the school system go down, 18:17.229 --> 18:19.865 they aren't, we're not getting them. 18:19.865 --> 18:21.600 Commissioner your take on that? 18:23.169 --> 18:25.171 - Yes that's a possibility. 18:25.171 --> 18:27.440 You know we've had that happen before, 18:27.440 --> 18:30.276 where companies have decided not to come to Memphis 18:30.276 --> 18:31.677 and we weren't doing anything. 18:31.677 --> 18:34.113 You know we weren't requiring anything. 18:34.113 --> 18:37.350 And so I guess, you know the other side's argument 18:37.350 --> 18:38.985 is if we do something different 18:38.985 --> 18:41.587 they might definitely choose not to come. 18:41.587 --> 18:44.924 But we've also seen those companies go to other places 18:44.924 --> 18:46.792 and then close a year later. 18:46.792 --> 18:50.496 And then, you know my last point there Eric is that, 18:50.496 --> 18:51.964 [throat clearing] 18:51.964 --> 18:55.234 right now we're doing nothing and still losing companies 18:55.234 --> 18:58.037 and still losing jobs, you know. 18:58.037 --> 19:00.740 So if we're still gonna have a short lifespan 19:00.740 --> 19:02.541 with these incentives, if the, you know 19:02.541 --> 19:04.010 companies are gonna bounce around 19:04.010 --> 19:06.445 and come here for two, three years and move on. 19:06.445 --> 19:08.214 Then we should get what we can from them 19:08.214 --> 19:09.448 for those two or three years. 19:09.448 --> 19:11.050 I just think that again, 19:11.050 --> 19:14.020 these are arguments that are presented to not try anything. 19:16.322 --> 19:18.491 - Councilman Jones, we mentioned ServiceMaster. 19:18.491 --> 19:20.459 And we talked last week with Reid Dulberger 19:20.459 --> 19:22.094 about ServiceMaster. 19:22.094 --> 19:23.963 That it is, you know the headline is that, 19:23.963 --> 19:25.798 "ServiceMaster is moving to Atlanta." 19:25.798 --> 19:29.969 In fact the bulk of the employees by his count 19:29.969 --> 19:33.372 is still over a 1,000 employees related to Terminix 19:33.372 --> 19:34.974 are still in Memphis. 19:34.974 --> 19:37.309 And so the PILOT was built around, 19:37.309 --> 19:39.478 I believe around 800, 850, 19:39.478 --> 19:42.114 somewhere in the 800 range of jobs. 19:42.848 --> 19:45.451 So the headline says one thing 19:45.451 --> 19:46.852 and that's on us in the media. 19:46.852 --> 19:48.320 But the reality is that they still have 19:48.320 --> 19:50.022 a major presence here. 19:50.022 --> 19:53.392 Are you worried that, and those are higher paying jobs. 19:53.392 --> 19:56.729 Those are a more, a broader more professional jobs. 19:56.729 --> 19:58.197 I mean, there's a tremendous. 19:58.197 --> 20:01.267 It is not the low wage jobs that we've been focused on here. 20:03.102 --> 20:05.871 Are you concerned that Terminix will move, 20:05.871 --> 20:09.341 and that you know what happens if they move 20:09.341 --> 20:11.577 or if they want more incentives to stay? 20:11.577 --> 20:14.180 Those are the high paying jobs that you talked about. 20:14.180 --> 20:17.216 The ones that we, I think in your words should be proud of. 20:17.216 --> 20:19.919 How far should we go as a city, as a community 20:19.919 --> 20:21.721 to keep Terminix in town? 20:21.721 --> 20:26.258 - Well I think that if we're looking at that prospect 20:26.258 --> 20:28.594 then we have to respond accordingly. 20:28.594 --> 20:30.262 But going back to my contention, 20:30.262 --> 20:32.465 I think that those, and I agree with you. 20:32.465 --> 20:36.936 Those are the jobs that we want to be competitive with. 20:36.936 --> 20:39.371 Now one of the things, one of the other arguments 20:39.371 --> 20:43.142 that's made and I don't necessarily agree with it 20:43.142 --> 20:45.111 is we're talking about our workforce 20:45.111 --> 20:47.580 and what the education level is here. 20:47.580 --> 20:50.282 If we look at other competitive cities, 20:50.282 --> 20:53.152 Atlanta, Charlotte, Austin if you would. 20:53.152 --> 20:57.723 I would contend that everyone who populates those cities 20:57.723 --> 20:59.225 are not natives. 20:59.225 --> 21:01.227 What I feel that we need to be doing 21:01.227 --> 21:03.195 and what I strive for us to do, 21:03.195 --> 21:05.865 is make Memphis attractive to companies 21:05.865 --> 21:08.067 that would want to relocate here. 21:08.067 --> 21:10.803 One of the things, in this environment right now, 21:10.803 --> 21:13.606 we look at some high tax states 21:13.606 --> 21:16.842 like New York, Illinois, California. 21:16.842 --> 21:20.312 So if I had my druthers about me, 21:20.312 --> 21:23.082 we would have personnel on the ground 21:23.082 --> 21:27.686 recruiting for Memphis in those areas to bring them here. 21:27.686 --> 21:30.055 That's what I think that economic development 21:30.055 --> 21:32.158 and incentive need to look like. 21:32.158 --> 21:33.492 If this required of us 21:33.492 --> 21:36.195 to provide more funding for us to do so, 21:36.195 --> 21:37.396 I'm in agreement with that. 21:37.396 --> 21:38.964 But I don't think we're doing a good job 21:38.964 --> 21:42.034 of selling ourselves as an attractive city. 21:42.034 --> 21:43.302 - All right. 21:43.302 --> 21:44.970 - That's the direction I think we need to move. 21:44.970 --> 21:46.172 - We'll go to Bill. 21:47.540 --> 21:50.609 - Let's talk about the series of two meetings 21:50.609 --> 21:55.581 that the first one has been held as we record this. 21:57.049 --> 21:58.651 But Commissioner Sawyer since we can't talk about 21:58.651 --> 22:00.352 what actually happened at that meeting, 22:00.352 --> 22:02.454 since we're recording today, 22:02.454 --> 22:05.257 what are your expectations for the meeting, 22:05.257 --> 22:07.927 what specifically do you want to come out 22:07.927 --> 22:09.895 of these two joint sessions? 22:11.263 --> 22:13.699 - So we were able to make requests in advance. 22:13.699 --> 22:15.901 And one of the requests that we had 22:15.901 --> 22:19.405 was one that we start from a baseline. 22:19.405 --> 22:24.276 And you know so everyone has access to the same information. 22:24.276 --> 22:27.279 And so we reviewed different reports 22:27.279 --> 22:31.317 and you know we're able to come into this conversation 22:32.685 --> 22:34.186 from a similar standing point. 22:34.186 --> 22:36.789 Even though our outlook might disagree 22:37.723 --> 22:39.525 and be on different sides. 22:39.525 --> 22:42.261 What I hope that these two meetings 22:42.261 --> 22:45.431 ended up being is not a waste of time. 22:45.431 --> 22:47.366 You and I have talked about it before. 22:47.366 --> 22:49.468 I don't want it to be PowerPoint mania. 22:49.468 --> 22:53.839 I want us to, what I struggle with as a County Commissioner 22:53.839 --> 22:55.074 is a lot of talking 22:55.074 --> 22:58.310 and not a lot of action or change happening. 22:58.310 --> 23:00.179 And so what I hope that these two meetings 23:00.179 --> 23:03.816 come out with is, either a game plan 23:03.816 --> 23:06.185 for the County Commission and City Council to say, 23:06.185 --> 23:09.622 "Here's what we agree on, here's what we think we can do." 23:09.622 --> 23:14.026 You know, whether it be having a Community Investment Fund, 23:14.026 --> 23:17.463 or agreeing to setting a minimum wage, whatever it is, 23:17.463 --> 23:21.000 or investing in recruitment, you know. 23:21.000 --> 23:22.468 Whatever the case may be. 23:23.836 --> 23:25.170 Something has to come of it. 23:25.170 --> 23:27.606 Otherwise we just spent the taxpayer's money 23:27.606 --> 23:29.441 for nice lunch and sodas. 23:30.609 --> 23:33.979 - Councilman, your hopes for these two 23:33.979 --> 23:35.581 very important meetings. 23:36.749 --> 23:38.951 - I'll go back to the fact that this is a, 23:38.951 --> 23:43.822 EDGE is a function that was created by the prior 23:43.822 --> 23:46.825 or previous City Councils and County Commissions. 23:46.825 --> 23:48.827 And it will be I'm coming up, 23:48.827 --> 23:51.930 well I'm in the sixth year of my term. 23:51.930 --> 23:56.935 And so for us to have this body and for the elected body 23:57.836 --> 24:00.072 to not review and determine 24:00.072 --> 24:02.007 what should be the future direction, 24:02.007 --> 24:04.376 I think it will be a dereliction of our elected duties 24:04.376 --> 24:07.379 in the trust that citizens of Memphis and Shelby County 24:07.379 --> 24:08.847 have entrusted us with. 24:08.847 --> 24:13.786 So we have to take a look back and assess and determine 24:13.786 --> 24:17.489 if or not we are satisfied with the results. 24:17.489 --> 24:19.758 And the whole definition of insanity 24:19.758 --> 24:21.727 is continue to do the same thing 24:21.727 --> 24:23.429 but expect different results. 24:23.429 --> 24:25.030 We have to look at that. 24:25.030 --> 24:29.335 I am not satisfied with the result that we have seen 24:29.335 --> 24:31.637 whether it's from a wage standpoint, 24:31.637 --> 24:35.507 whether it's from an industry standpoint. 24:35.507 --> 24:39.044 And I think that I don't want roll off of the City Council 24:40.412 --> 24:42.314 see that going forward, 24:42.314 --> 24:43.549 we're heading in the same direction 24:43.549 --> 24:45.551 where we've been over the past 10 years- 24:46.652 --> 24:47.886 - Let me, I'm gonna say, a minute, 24:47.886 --> 24:49.288 I'm sorry Bill to interrupt you 24:49.288 --> 24:50.723 just with a minute left here. 24:50.723 --> 24:52.257 I wanted to take actually a bit of a left turn 24:52.257 --> 24:54.393 because we have you both here and you know, 24:54.393 --> 24:57.363 the topic of the day and still remains COVID. 24:57.363 --> 24:59.398 And as we you referenced earlier you know 24:59.398 --> 25:01.166 changes in how the distribution is happening 25:01.166 --> 25:03.769 it does seem that that distribution is smoother now, 25:03.769 --> 25:05.904 more people are getting it and obviously supply 25:05.904 --> 25:07.039 from the federal government 25:07.039 --> 25:08.674 and the manufacturers is increasing. 25:08.674 --> 25:09.908 And there are some people out there 25:09.908 --> 25:11.143 who are talking on a national level 25:11.143 --> 25:12.911 about the whole situation flipping 25:12.911 --> 25:16.482 where demand will be the problem not supply. 25:16.482 --> 25:18.016 And I guess I'll go to you first Tami. 25:18.016 --> 25:21.954 I mean, one of the groups that has vaccine hesitancy, 25:21.954 --> 25:24.089 hesitancy about the vaccines on a national level 25:24.089 --> 25:26.125 is black communities. 25:26.125 --> 25:28.193 There's much history to that we don't have enough time 25:28.193 --> 25:29.661 to get into. 25:29.661 --> 25:32.264 But the horrific history of experimentation on black people 25:32.264 --> 25:35.834 and people of color and poor people in this country is real 25:35.834 --> 25:38.604 and present in the hesitancy. 25:38.604 --> 25:41.840 What are you hearing from your constituents 25:41.840 --> 25:44.777 about their eagerness or their wariness 25:44.777 --> 25:46.678 of getting the vaccine? 25:48.180 --> 25:50.449 - Just very quickly. 25:50.449 --> 25:54.820 I think that the hesitancy has been a bit overstated. 25:54.820 --> 25:57.890 You know, people, white people in the South 25:57.890 --> 26:01.493 are just as hesitant as black in the South you know. 26:01.493 --> 26:05.330 - One study was yeah, I should yeah 40% of Republicans 26:05.330 --> 26:07.733 about nationally don't wanna get the vaccine 26:07.733 --> 26:09.668 and a big percentage are hesitant. 26:09.668 --> 26:10.969 Go ahead. - Thank you. 26:10.969 --> 26:13.472 And so what I'm hearing from my constituents, 26:13.472 --> 26:16.308 they wanna be informed, you know. 26:16.308 --> 26:17.810 Some people are waiting to see. 26:17.810 --> 26:19.645 I'm seeing a lot of people 26:19.645 --> 26:21.947 share what their experiences with the vaccine 26:21.947 --> 26:25.284 and I think people wanna be healthy. 26:25.284 --> 26:26.752 - Yeah all right. 26:26.752 --> 26:28.320 We're out of time, I appreciate that. 26:28.320 --> 26:29.755 I appreciate Councilman Jones, 26:29.755 --> 26:31.557 thank you for being here, Commissioner Sawyer. 26:31.557 --> 26:33.258 That is all the time we had this week. 26:33.258 --> 26:35.027 Remember you can get past episodes of the show 26:35.027 --> 26:37.896 at wkno.org, or you can download the full podcast 26:37.896 --> 26:40.165 of the show wherever you get your podcasts. 26:40.165 --> 26:41.600 Thanks and we'll see you next week. 26:41.600 --> 26:44.203 [intense orchestral music] 26:57.516 --> 26:59.518 [acoustic guitar chords]