Posted inDowntown & central Phoenix Phoenix

Phoenix should leave GPEC

A little history: The Greater Phoenix Economic Council was formed in the aftermath of the 1990 recession. Fueled by savings-and-loan grifters and spec-building con artists (Charlie Keating combined both roles), it was the worst downturn the city had faced since the Depression.

Up to that point, of course.

It stung that the "infamous" and "negative" Barron's article calling out Phoenix was correct. But there were enough locally headquartered companies, civic stewards and sane political leaders remaining to be concerned about more than image. Phoenix and Arizona started a serious effort to diversify beyond real estate, to recapture the efforts of the late 1940s through the 1960s aimed at creating a robust, high-quality economy.

And for several years, GPEC was successful. The keys were the first president, Ioanna Morfessis, who had a sophisticated understanding of economic competitiveness and development; also, she was backed by a board of business titans who could knock heads and write checks. One other element helped: the city of Phoenix was still the unquestioned center of gravity.

Unfortunately, the decade saw 40 percent population growth and massive new sprawl. At the same time, most of the city's corporate crown jewels were either bought or significantly downsized and almost all the stewards died or retreated. The appetite to seriously build a quality economy, to sustain the cluster strategy, waned. In this "drunk on growth" atmosphere, Morfessis left.

She was followed by Rick Weddle and Barry Broome, both capable. But GPEC and the metropolitan area had changed dramatically.

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Posted inPhoenix

Sun city

In a place so starved for "good news," Arizona greeted the announcement that China's Suntech would locate its first U.S. manufacturing plant, growing to 250 jobs, in metro Phoenix as if it had won a Boeing jetliner assembly line. "This is a great day for Arizona," enthused Gov. Jan Brewer. "I've been so
determined that we have a business climate that will bring us jobs."

It's important to note that this "business climate" is a complete repudiation of the ideology of Arizona's Kookocracy. Suntech will benefit from tax incentives and was pursued aggressively, a strategy that has worked well for Southern states. This had been dismissed in the past by legislative leaders and other ruling mandarins who argued that all Arizona needed was more tax cuts, less regulation and sunshine to become the Hong Kong of the desert. Suntech was also roped in by the solar and sustainability research at ASU, some long-standing but much ramped up under Michael Crow. The Kookocracy has consistently cut university funding and scoffed at research. Finally, it represented a reaching out to the world economy by a place that was historically inward looking, just waiting for the next wave of house-buyers from the Midwest. This, too, while pushed by Barry Broome of the Greater Phoenix Economic Council, had received little traction among the local economic elites for years.

So, good for Phoenix. With one of the worst and least diverse major metro economies in the nation, any boost will help. If the lessons from the Suntech deal are learned and expanded upon, who knows what might happen. Yet, not to sun on their parade, the deal also raises some troubling questions.

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