Economic Development #3: The Cost
"To the Editor: New York City is giving Kidder, Peabody & Company $31 million in incentives to stay in New York City. The city has been giving large corporations billions for decades to retain jobs. But such incentives are not available to companies like mine, which have decided to stick it out though most of our competitors have abandoned this city. Indeed, by not making demands on City Hall, we pay higher taxes to subsidize those who have the leverage to hold the city hostage. Yet small companies are collectively the major employers in the city. . . .
"Kidder, Peabody claims the $31 million in incentives will enable it 'to operate in Manhattan on a cost-competitive basis.' What about companies like ours? Many 'New York' companies face this issue with most of their work force outside the city.
"Small-business owners get involved in their communities. Each year my company provides hundreds of thousands of dollars in pro bono technical services. We plan to continue to do so as long as we live and work in New York City. City Hall must protect the small-business people who contribute to the city's coffers and its welfare as much as those that are more politically visible.
"Carolyn S. Konheim
-- From the New York Times of November 9, 1993. The author of the letter is president of Konheim & Ketcham, environmental consultants* * *