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What if the city of Toronto built and operated the 'Toronto International Walk of Nations'. Using the grounds of the CNE, the city could build 200 or 300 small to mid-sized units, suitable for use as stores or restaurants. Rent out the units to vendors, ensuring a panorama of multi-cultural offerings. Advertise the location as the 'marketplace of the world', providing both tourists and residents with a world-class attraction.
If the units were all rented and open year-round, the continuous revenue would soon pay for construction costs, and then provide profit. To ensure the success of vendors, the city would help qualified individuals startup their business, providing education and managerial assistance. Public transit to the site would be greatly enhanced, ensuring ease of access.
What I have described is an application of Innovative Government Financing. Using available resources, such as the under-utilized CNE grounds, innovative planning and investment results in the creation of a venture that enhances the city, creates businesses, provides jobs, and also provides profit. In this business venture and community project, everybody wins.
The problem is that the current financial model used by governments does not allow profit. Government financing is based on collecting taxes, and then juggling the service requirements to make ends meet. As the costs and requests for service rise, taxes must rise to compensate. However, increased taxation damages the economy, resulting in even more service requests.
Somehow over time, the concept of profit became evil. This occurred because desire for profit often resulted in harmful decisions. Profits were made, but a lake was poisoned. Someone made a lot of money, but many others did the work. Someone gained by making someone else lose. In addition, since governments could not keep up with the service requirements, profits were unacceptable.
What is essential in Innovative Government Financing is the creation of 'profit with conscience'. Unlike standard financial analysis, which uses mathematics to define an answer, Innovative Government Financing factors in social and environmental impact. Unlike standard analysis, which is based purely on logic, advanced analysis requires debate, discussion and intuitive thinking. With guidelines ensuring positive value, Innovative Government Financing can create ventures that are both profitable and good for society. Profit is not a sin; it is an obligation of a healthy organization.
There are a million business opportunities in Toronto. What if the TTC operated a tour bus service? What if an on-line database were created allowing organizers to rent city meeting facilities during evening or weekends? What if large parking facilities were built at strategic locations, making it easier for drivers to connect with transit hubs? Each of these projects would enhance the city and provide profit. Entrepreneurial minds may begin to imagine a multitude of applications, simply because it is now allowed.
Of course it will be necessary to manage this aspect of government business. An evaluation process would ensure that each venture enhances the city, and does not harmfully compete against private business. Community involvement would be encouraged to ensure support of each business. Potentially communities could propose business ideas to the city, for evaluation and implementation. And, each project would operate as a unique business unit, expected to cover costs and show a profit.
It is essential to understand that the obligations of government are not alleviated by this plan. In no way would required services fall under a fee structure. The intent is for the government to find ways of earning money instead of just taking it. In fact, the addition of earned revenues could allow an increase in public services as well as advanced growth.
Unless concepts and beliefs change, the future of cities is troubling. There is so much potential for good, and at the same time to increase city revenues. Instead of inventing ways to take more money through taxes, licenses or fees, begin using innovative thinking to create prosperity and success.
© Copyright 2006 Glenn Stewart Coles
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