Here’s a localized case of the increasing presence of government involving itself in the decision-making of business, though in this example the business opened the door by relying on public money. The City’s Redevelopment Authority, an agency of the City headed by a board of unelected directors, wants the developer of an East End hotel to aim for a silver certification for the hotel from the U.S. Green Building Council. This after the developer, having trouble borrowing money because of the economy, decided to pursue the basic level of green certification, instead of the silver, in order to control costs.
In order to get the silver certification now, the developer would have to spend an additional $300,000 and hopes to work with the channels of government to get the money (the developer’s quote was "We’re going to find a way to find the money to do it"). Not surprising since the URA already secured for the project a $2.75 million loan and then got a $300,000 grant from the agency yesterday, which is conditional upon getting the silver stamp of approval.
Some on the board worried that allowing the developer to just get the basic certification would set a bad precedent for other developers. How about the precedent of determining how environmentally friendly a hotel should be? Is it worth making a requirement that, from all indications, the developer will pursue but only if he is able to get public money to fulfill?
It is amazing to see the "slippery slope" of public-private partnerships and how they have morphed from the public handling its responsibilities (public safety, infrastructure) and the private sector allocating resources to economic activity.
