You may have noticed that we finally have some new businesses in town. The old Masonite property north of town, developed by Ross Liberty, has attracted a landscaping supply company, Rhys Vineyards, and a potential hotel, restaurant, and gas station. The landscape business is especially noteworthy because the owner is from Ukiah. Years ago, he got so fed up with local regulations that he moved his business to Cloverdale; now he is coming back. On the other side of town, Costco has broken ground and plans to open its retail store and gas station in the spring. In addition, a new hotel is proposed near the Costco site.
What does all this mean? It means the county’s economic development efforts are starting to pay off. We’re headed in the right direction. Businesses outside Mendocino County are beginning to see us as more receptive to new business.
While the county hasn’t relaxed regulations, there’s been a tremendous change in attitude. County supervisors, CEO Carmel Angelo, Assistant CEO Steve Dunnicliff, Interim Director of Planning and Development Nash Gonzalez and others have bent over backward to make sure no unnecessary impediments or restrictions are placed on new businesses—even in the face of new state regulations.
As consumers, we can expect more choices about where to spend our money, and more choice is almost always a good thing. It generally means broader selection and lower prices. Even if you never shop at Costco, when it opens, you can expect gas prices all over town to drop.
As taxpayers, this uptick in new businesses will provide a broader and more dependable source of funding for city and county governments to pay for much-needed services like roads, a new mental health facility, and the ever-increasing demands for all sorts of other services.
This new source of revenue will be needed in the wake of marijuana legalization, as the property tax base for marijuana-growing property decreases. The economic impact of diminished marijuana dollars will affect local businesses—everything from car dealerships to restaurants.
If my prediction is right, a few years from now, we’ll see less of the underground economy that currently props up our valley, and more of a conventional economy, where restaurants will see less cash and more credit card sales, and car dealers will see more sales paid for with bank loans or checks, as opposed to buyers peeling off $100 bills that smell funny. Our labor market will shift from cash-under-the-table to payroll checks, with all the attendant costs and benefits, whether it be taxes or paid health care.
With this uptick in business activity, there will be more of an opportunity for those of us in the financial and service industries as well. People coming to town to work at Costco or the other businesses I mentioned will need local services, will shop in local stores, and will need to buy or rent housing.
It’s an old expression, but very true: a rising tide raises all ships. Certainly, for those of us in the real estate business, there is opportunity on the horizon. The purchase and sale of commercial buildings and residential properties, as well as an increase in property management, is almost a certainty.
I look forward to the economic growth I see coming our way.
If you have questions about getting into real estate, please contact me at email@example.com or call (707) 462-4000. If you’d like to read previous articles, visit my blog at www.richardselzer.com. Dick Selzer is a real estate broker who has been in the business for more than 40 years.