Thursday, October 6, 2011

Time to Think Different Buffalo!

Two quotes to reflect on from Steve Jobs. A great visionary who built the most profitable company in the world through relentless innovation. Every day he challenged the status quo and had a mantra that we should all embrace in Buffalo...Think Different!
 

#1.  Because almost everything − all external expectations, all pride, all fear of embarrassment or failure − these things just fall away in the face of death, leaving only what is truly important.”

“Remembering that you are going to die is the best way I know to avoid the trap of thinking you have something to lose. You are already naked. There is no reason not to follow your heart.”

Follow your heart.
S. Jobs

#2.  The only way to do great work is to love what you do. If you haven't found it yet, keep looking. Don't settle. As with all matters of the heart, you'll know when you find it.
S. Jobs

The time is now...Let's think different, build new businesses and show the world that even Buffalo can "put a dent in the universe".

Sunday, October 2, 2011

A $250 Million Idea for Buffalo

Here is an idea on how to drive jobs,  revenue, sustainability, healthy eating while utilizing our vacant lot and buildings.  Not a win win but a win win win win win. 
To many people Farm to table may seem like an old concept that applies only to white table cloth restaurants with limited market appeal.  Take a look at the below link from Entrepreneur magazine on how Farm To Table is Growing the Economy.  The numbers are staggering!  Below are some highlights of the article as it relates to a fellow rust belt town:
“Consider Cleveland, which nobody would confuse with Berkeley, Burlington or Boulder. Set in the heart of the Rust Belt, the city turns out heavy, Eastern European food--the goulashes, paprikashes and schnitzels favored by immigrants from either side of the Danube. Clevelanders aren't particularly healthy--in 2007, Men's Fitness magazine dubbed the city the "junk food capital" of America--and their income falls below the national average. Whole Foods Market didn't put a store there until it had 183 others positioned around the country.
Yet you'll find farm-to-table dining thrives there, too, often hiding in plain sight. At the popular Fire Food & Drink in Cleveland's Shaker Square suburb, chef-owner Douglas Katz has filled his menu with local products in stealth-like fashion: a squash blossom here, a pork loin there, the eggs, honey and butter in the popovers. By August, when the growing season is in full swing, he'll be spending half his food budget on locally sourced items.
That's where we were when the locavore movement began in earnest a decade or so ago. These days, the average metropolitan area in America still grows or raises less than 2 percent of the food it consumes--and it consumes a lot of food, some $15 billion of it in northeast Ohio alone each year, including the breakfast cereals, fast-food burgers, bottled condiments, frozen pizzas and soft drinks that are the staples of many diets. That makes the economic arguments for farm-to-table food compelling. Moving the needle just 5 percent in Greater Cleveland would mean $750 million more in revenue for local purveyors.
The last time a $750 million business relocated to Cleveland was ... well, probably never. So it's easy to see why politicians and policymakers are excited about the possibilities. Recently, five entities combined resources to commission a study by local-business-development analyst Michael Shuman and his two partners on what would happen if northeast Ohio managed to produce 25 percent more of the food it consumed. The report calculated that such a shift would create more than 27,000 new jobs, increase annual regional output by $4.2 billion and grow tax revenue by more than $125 million. "Local food is fast becoming a powerful economic development strategy," it concludes.
Think of it this way….Over the last 30 years, we lost touch with where our food came from...shipping tomatoes from Argentina, buying bread made in California and never thinking twice about the location.  Like many sustainability movements across the world, with food we are moving back in time to make progress.  Bring back the  local milk man, the chicken farm etc.
So….Why not Buffalo?
·         Let’s assume Buffalo is a 3rd the size of Cleveland...assume we can grab 5% of the local food purchases across and we have a $250 million business opportunity!
·         Convert the Central Terminal into a local food exchange where farmers can bring their food and sell to restaurants, retailers and consumers. 
·         Furthermore for our long winters we can convert part of the Central  Terminal into Hydroponic gardens growing tomato, lettuce, and fruit all winter long.
·         Lastly, we put a concerted effort against building community gardens across the city. Converting vacant lots into productive green space that provides local food options. 
The local economy increases its tax revenue, vacant Central Terminal becomes utilized,  vacant lots get converted into green space and we all get to eat local fresh food all year long.  
Ok, it’s one idea. Not the end all to turn things around. But it is a concept that is Real. 

Friday, September 30, 2011

Bills are 3-0...there is no traffic and you can always find parking

While reading the pathethic Buffalo News last Sunday, Get Real Buffalo was thinking of the equally pathetic leadership of Buffalo (Leadership and Buffalo - Is that an oxymoron?)

Example #1 
Byron Brown said it’s important not to let the concerns over the Dollar General part of the project overshadow the other good that will come from it, namely “the job creation and the cleaning up of a blighted property that has had environmental concerns for some time.

GRB Comment – Giving money to a retail store does not create additional wealth in a community. I am sure Byron will bring up the benefits of giving money to a Dollar Store with his visionary Citistat initiatives. Hey he may even call it Byron Brown’s Dollar General.

Example #2
The county’s IDAs rely on fees from the projects they support to fund their operations. Since the recession hit, the industrial and corporate projects that used to fill the IDA pipeline have largely dried up, so doling out incentives for adaptive reuse projects have become an important source of revenue. The Amherst IDA, for instance, was running a deficit through August, but agency officials said they expected to be back in the black this month, after the fees from the dubious Prime Wines project comes in. 

GRB Comment – What this really means is they just need their job saved so that they can get a lucrative retirement package and head to Florida and leave the landscape dotted with stores that no one will have jobs or money to shop at. Wait Buffalonians will at least be able buy trinkets at the Dollar General and drown their sorrows with a jug of MD 20/20 at the local wine store

Example #3  
Q: The Partnership, and you personally, have at times been criticized for not doing very much. How do you respond?
A: First, I (Sir Andrew Rudnick) think it’s bunk. We’ve reported on specific progress, and we’ve done that because we feel accountable, and we’ve done that every year since we were founded 18-plus years ago . . . I think our track record is clear and it’s very positive.  

GRB Comment – Let’s see what has happened in 18 years. City has lost 20% of its population; became America’s third poorest city, urban blight is rampant and Forbes voted Buffalo one America's Fastest-Dying Cities. We are glad that someone is feeling accountable….

Now that the Bills finally have a QB who is leading them isn't it time that Buffalo got a Real Leader?

Monday, September 19, 2011

The Bills are 2-0 and Buffalo is a Great Place to Live

The Bills are 2-0 and it was a beautiful sunny Sunday in Buffalo. These are types of days when people of Buffalo walk around saying… why would you want to live anywhere else?

Just as the Bills 2-0 start serves as a balm to Buffalo’s problems, Get Real Buffalo  is like Jack Nicholson from a Few Good Men shouting a the top of his lungs…”You can’t handle the truth" ...about the region’s economic problems, lack of innovation and resistance to fighting the status quo.  

However, in respect for the euphoria everyone in the city is experiencing we thought we would strike a more positive constructive tone in this month’s post.

The idea this month is about immigration.  To drive economic growth in dying rust belt cities like Buffalo, Detroit, and Cleveland why not encourage and incent immigrants to live in these cities.  We have the infrastructure to handle them, we need their work ethic and entrepreneurial passion to drive growth. Mayor Bloomberg brought this idea up last month with respect to Detroit.

Below is an article from the NY Post talking about his ideas:

Mayor Bloomberg has a fix for the nation's immigration debate: Send 'em to Detroit.
"If I were the federal government," Bloomberg told David Gregory on NBC's Meet the Press Sunday morning. "Assuming you could wave a magic wand and pull everybody together, you pass a law letting immigrants come in as long as they agree to go to Detroit and live there for five or ten years."Detroit has suffered a devastating population loss in recent decades, losing 25% of its citizens since the last census. Meanwhile, immigrants are clamoring to enter the United States.Bloomberg says he can fix both at once.The immigrants would arrive in Detroit, "start businesses, take jobs whatever," Bloomberg said. "You would populate Detroit over night because half the world wants to come here ... You can use something like immigration policy - at no cost to the federal government - to fix a lot of the problems that we have."

Sounds like a crazy idea?  These are types of ideas Buffalo needs to break out of its slump.  Look at the West Side now, teaming with Burmese refugee’s trying to start their own American dream. They are turning parts of the West side back into attractive city blocks. Let’s encourage more immigration to our city, provide them affordable housing, give them education and the capital to start businesses.  Some people may say why not give these opportunities to our current Buffalo citizen’s who are struggling. To which we would reply sorry, you had your chance and you blew it. As immigrants drive growth there will be more opportunities for the citizen’s of Buffalo to find work. It is time for new blood, who want to work hard, build businesses and who are not married to the past or anchored by a sense of entitlements. 

The Bill’s maybe 2-0 but Buffalo as a city hasn’t had a winning economic year in terms of real private sector growth in over 50 years. Time to shake things up and bring a new team into town. Bring on the immigrants! 

Saturday, June 25, 2011

A New Buffalo Bills Uniform Won't Fix This Issue

There is outrage all over the country on the national debt. Where is the outrage in Buffalo over our debt? More specifically our unfunded liability driven by other post employment benefits (health care etc.) that is growing every day?  Our city is on a course to make the Greeks look like disciples of Adam Smith but instead yesterday, thousands of people went to Ralph Wilson Stadium to see the unveiling of the new Buffalo Bills Team uniforms.  We see the same level of passion when the Sabres change their jerseys. 

On the flip side, in San Francisco there are two billionaires passionate enough to fight over the unfunded promises http://finance.fortune.cnn.com/2011/06/02/san-franciscos-pension-smackdown/ .  

Why do we compare San Francisco to Buffalo?  Two cities with dramatically different economies? Lets start with the facts: 

San Francisco:
Other Postemployment Benefits (OPEB) Liability is $4.36 billon
Population – 805,000 (Population “grew” 19% in last 30 years)
Median Household Income - $55,221
OPEB/Capita (Population) -  $5,416
(OPEB/Capita) to Income – 9.8%

Buffalo:
Other Postemployment Benefits (OPEB) Liability is $2.15 billon
Population – 261,000 (Population “loss” of 27% in last 30 years)
Median Household Income - $27,850
OPEB/Capita (Population) -  $8,238
(OPEB/Capita) to Income – 29.6%

Look at Buffalo's OPEB/Capita ratios and compare them to San Francisco.  Time to Get Real and Deal.  Let's break down Buffalo's liability to its major component parts.

City of Buffalo - OPEB liabilities, estimated at about $945 million for the City, with an
annual contribution of $58 million (as of last year) will need consideration
going forward. Despite the fact that funding is currently not required, its
impact will start to be felt in the next few years and a course of action to
deal with this issue will need to be contemplated.

Buffalo School District OPEB liabilities will loom large over the period. Current assessments put the OPEB liability at $1.2 billion, with an expected yearly charge of $137.6 million. The annual required contribution would increase the District’s annual costs by another $89.4
million. Although currently there is no requirement to fund this liability, its impact on
the district over time cannot be ignored as the costs are very significant, compound
annually and could eventually impact on the City of Buffalo credit ratings.

A new Bills uniform, a new Sabres uniform or even a new suit for Byron Brown won't change the numbers and the outlook for the future.  Lets Get Real and start talking about the liabilities we are facing vs. the colors of our team logos.

Sunday, May 15, 2011

2 Pictures of Progress

A picture is worth a thousand words and these two pictures below are emblamatic of the lack of progress, false promises and basic incompetence that plagues this region.  

The first picture was taken in May of 2009 with the Canalside project being shown fully completed with businesses, infrastructure and buildings. 



Fast forward 2 years later and here is the progress that has been made on the exact same site. 

 Let's Get Real Buffalo and start dealing.