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LivingWages & Communities: Smarter Economic Development, LowerT�an Expected Costs Table 4: Impact of LivingWage Laws on City Business Subsidy Programs, �00 I Number of PYOJOCtS with Numberof Pro�ects Locality 7'� of Projects Living Wage �;OriC�1t10riS Cancelled Because of EachYear LivingWage Law Duluth, M I Health Care,Techno€ogy 2 0 Los?�rgcles. C�t N xc� Usc 3 {J Mmr�np��la. F?N T�d�nalq�r �J fl �kland, �A Mi�ed usc I � 3rn fnmr,�c, Tx T�hr�p1� Fi�rtG� � 0 Manu�a�.��n� San �rtosaa��4 `iixe� u�e ' I Taleda OH r1d4'FLrOI r�s 0 �31Tl+1� �� rldL��s�. �3IN�i::4� �� #�� �'ps��nki�Ml I�des�sal E Q �'ps��i�siT4wr•s��ia. `il Tac�n•o�agX. �i�Kvst��' S � � Minneapolis, which has had a living wage requirement in effect since 1998, has seen no drop in applications for business subsidies under its economic development program, and no complaints from businesses since it implemented its living wage policy?' • In San Antonio, which last year expanded its living wage policy to incorporate a base living wage standard for all of business subsidy recipients' employees, the Economic Development Department successfully recruited a grocery firm to locate its meat distribution plant in the city, which is expected to create 40 new jobs at or above the $8.75 livingwage rate." In negotiating the project, the company raised no objections to the wage -�yuir� a�t �,�. ' • In Toledo, which experienced a drop in applications for subsidized loans for machinery and equipment in 2001, the economic development administrator attributed the decrease to current economic uncertainties —not the obligation to pay a living wage." • Similarly, administrators in Los Angeles and Oaldand attributed any reduction in retail develop- ment to the recent decline in tourism, rather than the living wage requirement. Limited Impact Even on Business Subsidy Programs That Target Employers in Lower Paying Sectors Such as Retail Generally, few cities use economic development funds to subsidize the creation or retention of jobs in low-wage sectors such as retaiL Many localities da not see providing business subsidies to retailers, whose employees generally earn at or just above the minimum wage, as the best use of scarce economic development dollars. As Karen �.ovejoy Roe, Supervisor of Ypsilanti Township, explained, "the Township Board ... feels that if you are going to cut a person's taxes to promote economic develop- ment, it's only worthwhile if the employees are malcing a decent living standard."42 As a result, few of the localities provided subsidies directly to retail establishments. However, more communities do choose to subsidize mixed-use development projects, which may include some combination of office, housing, and retail space. The economic development depart- ments in San Francisco, Oalcland, and Los Angeles have mandated that developers of mixed-use devel- opment projects malce efforts to ensure that their retail tenants pay the living wage rate. In these instances, local governments have had mixed success with retail establishments. *�