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LivingWages & Communities: Smarter Economic Development. LowerT�an Expected Costs In Oakland, ciry af�cials reported that two retail development projects had been cancelled in recent years, but attributed the result to factors other than the living wage law.a3 In Los Angeles, developers of two subsidized projects, including the Staples Center stadium development project, agreed without complaint to the living wage requirement, while a third project proceeded by exempting some retail and restaurant staff from the n;_�_:rc��•�y�.'{ • In San Francisco, a supermarket, while claiming that it paid its employees a living wage, chose not to accept a business subsidy package citing a desire not to be subject to the living wage reporting requirement.4i Generally, cities reported that the overall � economic climate and traditional eco- ��nj� ��,�� { th�S� �Iti�� nomic development concerns were the dominant factors in decisions �y de�e1- and counties suggest that living wage opers whether to seek or accept public business subsidies for economic develop- reqUll"@C71@C1tS C71�/ il@Ip Cltl@S ICl ment projects involving retail compo- nents. Cities interviewed, such as Oakland, attributed developer decisions not to pursue subsidized retail develop- ment projects chiefly to traditional con- siderations, such as project location, availability of parking and consumer spending, rather than the applicability of a living wage requirement. directing public funds av,�� fra�n retail projects that often bring {@W�1' ��11'11� !'eCUI'C1S C4 their communities. � Finally, the experiences of these cities and counties suggest that living wage requirements may help cities in directing public funds away from retail projects that often bring fewer returns to their com- munities. In fact, Oakland's experience indicates that the failure of its proposed retail projects may have been a blessing in disguise. Using the same land and fewer taxpayer resources, Oa�and sold most of the city property originally slated for retail development to a telecommunications manufac- turer, which is expected to create 1,200 high-wage jobs without requiring ciry subsidies." The remainder of the property is being developed into an automotive facility by a unionized firm that pays its employees at or above the living wage requirement. Thus, even where a living wage require- ment limits the feasibiliry of economic development strategies focused on low-wage sectors such as retail, this may help cities in re-directing business subsidy resources towards other sectors that more readily yield good jobs for the communiry. FactorsThat MayAccount for Limited Impact on Local Business Subsidy Programs Administrators attributed the living wage laws' limited impact on business subsidy programs to two key factors: (1) the fact that many business subsidy programs were already focused on recruiting busi- nesses in sectors that offer higher wages; and (2) the greater public acceptance of business subsidy pro- grams that [hey believe living wage policies can generate. At the same time, administrators reported that �ivin� wage laws helped sharpen the focus of their business subsidy programs on attracting jobs that generate the greatest benefits for their communities. l�