Audit raises questions over TCC's funding for downtown Starbucks that lost over $200K
Not only did they lose $200,000 they spent over $841,000 to build it out. This is a great example of why the government should not spend taxpayers' money to directly compete against local businesses. The government should create the entrepreneurial ecosystem for private businesses to create goods and services that the market wants.
As the article points out, FSU has Starbucks as well as two RedEye Coffees, but FSU does not own them or run them they contracted Sodexo to run the businesses and then Sodexo made strategic partnerships with local and national vendors to execute.
Another great example of the government creating an entrepreneurial ecosystem to thrive is the new South City area. There were empty buildings that were bringing down the neighborhood, so the city created economic incentives in the form of tax credits for private business to come in and risk their own capital. The result? Happy Motoring, Proof, and Catalina Cafe are all investing their own money to revitalize a part of Tallahassee creating jobs and tax revenue.
Government/Private partnerships as long as they are open, inclusive, and transparent are essential for a thriving entrepreneurial ecosystem, but the government should never be in the business of competing with private business.
Hopefully, this is a good lesson on where the "lines" are.
#business #tax #coffee #investments #government #economics#transparency #partnerships #ecosystem
