County’s golden goose can’t compete!
EDITOR’S COMMENTARY
DESPITE RASH OF NEW BUSINESS, RECESSION DOMINATES WYCO ECONOMY By Wayne Hodges
KANSAS CITY, KS – Do the names McBride’s Irish Pub, Linens & Things and Margarita Mama’s ring a bell? They should because the list represents a disturbing trend of business closings at The Legends at Village West. Now, let’s add Saddle Ranch Chop House and Chili’s restaurants to the “can’t cut it” list. And the bad news, unfortunately, may not end there.
As our economy remains peacefully sedated in ICU, more stores and shops could collapse before the end of fiscal year 2009. Yikes! Look, the intent of this column is certainly not to cast dark clouds of negativity above the economic goals and hopes of Wyandotte County politicians. The plan is simply to address certain economic truths and financial pain caused by a bad economy. Let’s start with some harsh realities:
•According to www.city-data.com, more than 23 percent of Kansas City, Kan., residents live in poverty.
•The same source reports Kansas City, Kan., residents earn a median income of $36,000 compared with $48,000 for the rest of Kansas.
•According to a source within the Wyandotte County Appraiser’s Office, more than 80 percent of real estate property in Kansas City, Kan. is overappraised.
•Wyandotte County is still victimized by high mill levy/tax rates.
•As a byproduct of inflated property values and a bad economy, Wyandotte County produced the most foreclosure activity in Kansas with 1,940 filings in 2008. Ouch!
See, there’s a direct correlation between low income, foreclosure activity and business closings. And the good people of our community, to be candid, have fallen victim to this eroding economic chain long enough. Seriously, the sight of old, vandalized, abandoned structures are far too familiar in certain portions of the northeast and southern communities of Wyandotte County.
The loss of merchants in Village West, however, is a bird of a different feather. Most shoppers would agree the parking lots are usually full every weekend. Yet, more stores continue to close. Why? It’s simple. The stores and restaurants are also open Monday through Thursday. Strong weekend sales, though impressive, are still not enough to compensate for weekday operating expenses.
Also keep in mind, the majority of sales revenue produced at The Legends is from tourism dollars. This becomes even more significant as the recession continues to gain momentum. Less income equates to less shopping for travelers — not good for merchants at The Legends who rely so heavily on tourism dollars to make ends meet.
New retail is essential, but resident income must be addressed
Look, new stores and entertainment venues are nice, especially in Kansas City, Kan. But let’s shift our attention to bringing more high quality employment opportunities to Wyandotte County. Wouldn’t it be great see the migration of corporate office parks and manufacturing plants to provide residents a better opportunity to earn wages in the $15 to $20 an hour range, in comparison to the $7 to $10 range offered by most stores and shops at The Legends?
OK, we’re dreaming a little bit. But to make economic progress, we must figure out a way to improve resident income. A healthy economy must feed off the vitamins and minerals supplied through a solid disposable income/tax base. As football star Rod Tidwell told his agent in Cameron Crowe’s 1996 film classic “Jerry McGuire”: “Show me the money!”
Wayne Hodges, an MBA from St. Mary University, is the editor of “Mass Appeal News.” He is also an adjunct professor, MPA at Kansas University, and legislative intern with the Kansas Senate. Wayne welcomes your comments at whodges@massappealnews.com
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May 14th, 2009 at 5:23 pm
LOVED IT!!!!!!!!!!!!!!!!!!! That is what I am talking about!! I don’t care what they say, the truth is the truth is the truth!
May 14th, 2009 at 5:23 pm
Great article Wayne!
May 14th, 2009 at 5:23 pm
Great Article!
May 14th, 2009 at 5:24 pm
If you don’t stand for something you’ll fall for anything.
September 10th, 2009 at 1:48 am
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