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10/26/2009 |
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Chamber View: Nestle Waters plant followed city rules--Council must not cave into special interests |
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By Linda Cutler
Chair, Sacramento Metro Chamber Board of Directors
The discussion about the new Nestle Waters bottling facility is actually about Sacramento’s commitment to job creation and the process and rules by which businesses come to our city.
The Sacramento City Council was set to consider on Oct. 27 a measure related to this plant that will have a serious and far-reaching impact on the jobs and business climate in Sacramento.
We have a set of rules that govern how companies coming to our community must conduct business. These rules come in the form of zoning, building permits, utility fees, water use and the like. These are rules that are determined through a very open and public process and they are rules that every business must follow.
The city also has a plan that includes taking into account water needs for residential, government and industrial uses. Nearly every business, whether it is a bottled beverage company, a car wash, a restaurant or a widget manufacturer, uses water to produce its product or service. That plan includes water availability for new businesses to purchase without impacting the water already flowing to other businesses and homes.
So how does Nestle Waters’ new plant fit into this? First, the company followed all the rules, and it did not get any special treatment with respect to the rates it will pay the city for water. Nestle leased existing space from a local property owner and applied to the city for the permits and utilities needed. In short, the company has followed the process just as the many other beverage bottlers such as 7-up and Coca Cola did when they came here.
Now, some members of the Sacramento City Council are working to change those rules mid-stream by tossing aside the council’s entire review process in an effort to force a new law that would either delay or completely stop this plant from moving forward. That should be a frightening proposition to anyone interested in job creation and business development in our community. The signal it would send to other businesses is: Come to Sacramento at your own risk. The city council, at the prompting of special interests, may decide it does not want your business here even after you have leased a building, put millions into retrofitting it and begun to hire people.
And, this decision could have a major impact on the availability of capital for new projects. Why would a bank lend money to a business when the political winds could derail the project mid-way through construction?
Nestle has received more than 2,200 job applications in just in just two months. The company has already hired 11 people and has a local contractor and his crew working to retrofit the building it leased. And Nestle has invested more than $3 million into this facility already, with another $11 million to follow.
So if the city council takes action to stop this plant from moving forward, council members will have to explain not only to those 11 people and the contractor why they will be laid off, but also explain to the other 2,200 people who are looking for work why they are closing off an opportunity to bring jobs to this community.
By making the process of opening a business a political one, the city council is saying that it will pick and choose businesses and jobs depending on its political whims. This is a precedent our community simply cannot afford to set unless the council is ready to take responsibility for hanging that closed sign on the Tower Bridge.
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