Local Businesses View Stimulus Bill With Mixed Emotions
FAIRFIELD
Norwalk Hour
Tait Militana
Boston University Washington News Service
Feb. 17, 2009
WASHINGTON – For months Norwalk-based developer Greyrock Homes has been selling houses at a loss.
The company’s award-winning residential development in Cos Cob has so few buyers that Jerry Effren, the company’s principal, said he decided to sell houses below cost, hoping to ride out the economic storm.
Effren said he also recently decided to shelve a 20-home residential development in Wilton, after almost five years of planning and approvals. He said the slumping economy has wreaked havoc on the housing market.
“We had to shut it down and wait it out,” Effren said. “In this marketplace, the sales are just not strong enough.”
Effren is not the only one suffering. Business owners from various local industries said the recession has hurt their bottom lines. However, many had differing opinions on the potential effectiveness of President Barack Obama’s economic policies and the stimulus bill that the president signed into law on Tuesday.
Effren called Obama’s economic plan a disaster, saying he expects the stimulus package to do nothing to help him.
“I’ve cut 90 percent of my workforce,” he said. “The people I work with have done the same thing. You ask me what’s going to fix this. I don’t think it’s the stimulus.”
According to Effren, the largest problems with the stimulus bill are the lack of transparency and its size. He said Obama has not followed through on the transparency he has promised and said he could not be more frustrated with politicians who think huge government spending will stabilize the markets.
“It will do absolutely nothing,” said Effren. “It will delay any meaningful restructuring of the economy. People are waiting on the sidelines.”
Nonetheless, some business leaders who have experienced financial problems similar to Effren’s expressed hope that Obama’s economic plan will represent a significant improvement over the policies of President George W. Bush.
Kenneth Olson, president of POKO Partners, a developer based in New York that is working on the Wall Street Place mixed-use project in downtown Norwalk, said his company, like others, has faced economic challenges. The Wall Street Place residential component has been converted from apartments and condominiums to all apartments.
“It’s so much harder to get financing,” Olson said. “Those buyers [of condominiums] have been dramatically impacted by the economy.”
As long as funds are distributed fast enough, Olson said, the stimulus package should help his business because it provides funds for urban development, a major aspect of his industry. He said the stimulus plan has flaws, but the Obama administration’s approach to the economy is dramatically better than that of the Bush administration.
“There is no comparison,” he said. “At least Obama is engaged and trying to move things forward. Bush was not engaged.”
David Levinson, president of Norwalk Community College, was optimistic about Obama’s measures to fix the economy, saying potential infrastructure development projects in Norwalk would help stimulate the town and the college.
“We provide a number of workforce training programs,” Levinson said. “It is going to be a wonderful opportunity for us, so we can expand and create a new workforce.”
According to Levinson, the largest issues facing community colleges during the recession are budget cuts. He said he has already seen a 3 percent cut in state block grants and expects an additional 7 percent in cuts by the fall. These cuts, coupled with higher enrollment as students look for alternatives to expensive four-year schools, Levinson said, mean that the school must try to teach more students with less money.
Yet Levinson said the school is well positioned for the future and the stimulus will help. The college is continuing its work on a new science center and is entering a partnership with J.M. Wright Technical High School to facilitate a smoother path for students between high school and college.
“We believe we are right on the front line in providing a health work force that is needed,” Levinson said. “I’m very encouraged by how the community has come together.”
For Effren, the stimulus package represents a potential harm to Norwalk. He said as long as the government is involved, the market will not stabilize, prolonging already delayed projects in the city.
“Norwalk has some great developments on the books,” he said. “Unfortunately it’s taken too long to get them approved. Many could already be making revenue for the city. It [the city] has a lot of tremendous potential but will have to weather a poor economy.”
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