Turning Down Over $100 Million: A Week of Tough Decisions
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Chapter 1: A Week of Significant Choices
Recently, I found myself in the extraordinary position of declining investments exceeding $100 million in just one week. It’s a staggering figure that dwarfs the seven-figure sums many strive for over countless years, often without success. But how often does one say "no" to this magnitude of investment, especially within such a short span?
You didn’t think I personally turned down that amount, did you? I, who often work tirelessly for a bit over a hundred K? Not a chance! Nevertheless, it was undeniably difficult to reject what could have been a massive investment in the town that employs me to attract new businesses and development.
While I don’t often discuss it, I’ve dedicated over twenty-one years to economic development. This role has consumed tens of thousands of hours, making it less appealing to recount later. Sure, I have engaging stories about the businesses and developers I’ve collaborated with, even those that ultimately chose not to establish themselves here—like Trader Joe's and Whole Foods, to name a few.
Currently, I’m working with multiple recreational cannabis dispensaries, one of which is set to present before our City Council next week. My experience spans numerous businesses, and if we average about twenty-five to thirty new ones annually for the past two decades, we're looking at around six hundred firms. Conversely, five times that number didn’t pan out, often forcing me to suggest they seek opportunities elsewhere.
Section 1.1: The Cost of Decision-Making
In early 2018, I began discussions with an apartment developer about a $50 million luxury project. After months of preliminary talks, our negotiations became serious by fall 2018. This project promised two towers with a pool and community spaces—a vision I invested hundreds of hours discussing.
After countless meetings, the city council recently questioned why this project had stalled for three years. The developer had assured me time and again that he would provide a complete submission soon, but when pressed, I could not guarantee anything concrete. This led to an agonizing conversation with him, where I had to convey that the council no longer supported his vision. His reaction was intense; he struggled to accept our decision, requiring formal correspondence from our City Attorney to finalize matters.
The projected costs for this project had steadily risen, reflecting the increasing prices of materials and labor. It was incredibly tough for me to say no after developing a rapport with the developer over many hours of discussions.
As explained in the video, "Why I Turned Down $100 Million: Choosing the Right Challenge," sometimes declining opportunities can lead to better outcomes in the long run.
Section 1.2: Rejecting Further Opportunities
Our city is robust in the industrial sector, engaging with numerous industrial projects over the years. Currently, demand for industrial-zoned land is soaring, and I frequently interact with potential industrial businesses and investors.
Recently, I had to turn down a request from the world's largest online retailer to establish a distribution center in our city. Despite the attractive offer, I had to decline, emphasizing my responsibility to the city rather than the developer.
In the insightful video "I Lost $100 Million... Here's What I Learned," the speaker discusses the lessons learned from similar experiences in economic development.
Section 1.3: The Challenge of Local Zoning
Establishing truck repair facilities is challenging due to zoning restrictions in our industrial parks. Despite the potential of a $4 million project, I firmly communicated my refusal to allow such developments, prioritizing the city’s zoning policies.
Section 1.4: The Self-Storage Dilemma
Self-storage facilities are lucrative, yet our city policy restricts them to industrial zones. Recently, a religious institution attempted to sell land for a self-storage project, but I had to reiterate our zoning regulations. Despite pressure from aggressive negotiators, I remained steadfast in my decision.
Chapter 2: A Balance of Yes and No
While it may seem I only reject proposals, that’s not entirely true. I work for a city that aspires to maintain a certain character, avoiding a landscape filled with warehouses. My current projects include a downtown bakery expansion, a popular sports bar, and several industrial developments.
Despite the challenges, I also engage with businesses that align with our vision, such as three marijuana dispensaries seeking advice on city approvals. The reality is that the most desirable businesses often present the greatest challenges in attracting them, while less favorable opportunities persistently seek my attention.
In summary, the field of economic development requires a delicate balance of saying "no" when necessary while continuously seeking to improve the community. My recent week of decision-making, leading to over $100 million in rejected investments, is a testament to the complexities of this role.