Ernest Hohmeyer questions whether small businesses will be attracted to the Adirondacks within the next ten years. 

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The Adirondack Daily Enterprise (Saranac Lake NY)

2/1/10, Web site

 http://www.adirondackdailyenterprise.com/page/content.detail/id/511044.html?nav=5041

By Ernest Hohmeyer

Front-page news, Adirondack Daily Enterprise, January 2020:

"The town of Fairbanks today declared itself bankrupt, unable to pay for state-mandated infrastructure improvements, increasing services to its second-home and aging population and past debt. Its grim picture is symbolized by its closed school and the going-out-of- business sign of its only gas station and convenience store. This is the latest in a string of local municipalities throughout the Adirondack Park to put up their hands and "

"Couple suffers injuries Family laments that they would not have been life threatening, but certified rescue personnel were 45 minutes away and the closest hospital over an hour "

"Environmental groups sued the DEC for allowing the overuse of the High Peaks region, a growing environmental issue over the last 20 years as tourists and recreationalists avoid the interior of the Park that no longer can provide basic services "

We have a perfect storm brewing in the Adirondack Park that, if it is allowed to continue building, will forever change the Adirondack landscape faster and more dramatically than any another issue which faces the Park today.

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Would small business come to our community?

A great deal of time, money and resources has been spent over the last 20 years by Adirondack Park municipalities on "community economic planning." The most recent efforts locally have been the Lake Placid/Essex County Visitor's Bureau destination planning program and the work by Camoin Associates in Tupper Lake. One of the key aims of these plans is to support and attract business.

Let's investigate this for a moment. When a company, no matter how large or small, decides to relocate, it typically undertakes what is called a "site selection" process. Important criteria include infrastructure; availability and affordability of land; availability, training and cost of labor; taxes; access to capital; cohesive and streamlined regulatory processes; and quality of life. In terms of our neighbors outside the Blue Line, we simply cannot compete in most of these areas. Our infrastructure is limited to our hamlet areas where there is often limited commercial space. Our biggest community is 5,000 year-round residents, so our labor pool is not large, and the Park has numerous overlapping government and regulatory bodies perceived by those outside the region as problematic.

Ah, but we could always pull the ace out of our economic development pockets and play our quality-of-life trump card.

Put yourself in their shoes. Quality of life means different things to different people, but to community developers we often extolled our school systems, hospitals, vibrant downtowns and community volunteerism. Now think about the recent Adirondack Park Regional Assessment Report and ask yourself: Do we have a stable quality of life here? From a business perspective, companies want to move to an area that, besides making for a good business decision, also provides a stable and healthy community environment that is hopefully growing - how else can they hope to grow their business? I believe we may have lost our only trump card.

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In the Adirondacks, size does matter

You may say that everyone and every community has been affected, and we are no different. Yes, it is true that nearly everyone has suffered in some degree, but in the Adirondacks we already had unhealthy local economies - even when times were good. Our preponderance of government jobs and tourism have left us prone to a future based on public policy that we cannot control (think Camp Gabriels) and on healthy consumers. Our lack of economic diversity makes us more vulnerable to economic affliction, which has been a historic disease - way before the recession. But it is also one of SCALE. Our economy is dominated by small micro-businesses whose total income is often in the thousands, not millions. That means their margin between profit and bankruptcy is often very small, and any one change, such as losing even two to three customers or a $5,000 rise in expenses, can push them over the edge. Larger companies can lay off employees and cut expenses and still survive; a self-employed person cannot lay him- or herself off and still eat. Our small business life in the Park, enveloped in even smaller communities, is so much different than in any other location in the state. Yet it gains minimal attention and PROTECTION as a unique Adirondack species when you compare it to the SCALE of preserving the uniqueness of its natural resources. And for many, it is not as much about not protecting the Park's resources as it is about equal effort and SCALE in protecting all the Park's resources, human and natural. The Park is an environmental regulatory phenomenon. It is not regarded as a unique community and economic habitat, for while we have a singular regulatory framework for the Park to protect its natural resources, we are pulled apart with multiple DEC, DOT, Economic Development and tourism regions, and, needless to say, the myriad of local, county and regional economic entities. With few exceptions, these programs cover an area outside the Park where there is more activity, political gain and greater business SCALE than inside the Blue Line. When I was involved in community development, I would often be ridiculed by my colleagues outside the Park for spending as much energy on a $10,000 loan as they would on a $1,000,000 project. It is difficult for anyone outside the Park to understand our SCALE, where a small push can go a long way and where success in many communities is measured by attracting two to three jobs.

To create the perfect storm, you need a myriad of factors, and they are coming together to place Adirondack small businesses on the endangered species list. We will investigate this next.

Questions/comments? Let's start a conversation at mountaincommunityvisions.wordpress.com.