Thank you for visiting our website. I can thank you because you are here. Whether you’ve checked our directory, calendar of events, or visited this blog, we appreciate your interest and hope you’ve continued to discover plenty of useful content in every visit. But within the wide-ranging reach “Buy,” “Act,” and “Think” are a number of ideas and suggestions to better drive your individual actions, improve your choices, and bring our statewide independent business community ever closer together. We strive to do our very best.

If you were able to attend any of our events this year, you could see first-hand the efforts of our tiny staff supported by an army of local-minded volunteers. The enthusiasm surrounding our mission definitely propels our efforts and inspires hope for more events with greater geographical diversity in the future.

Despite tough economic times, Utah remains a top-tier state in which to do business and our universities continue to rank the highest for the creation of startup companies. Entrepreneurship thrives. But our locally owned businesses continue to feel the pressure of competition from big boxes. Whether or not we are emerging from recession, consumers are constantly faced with some important decisions when it comes to spending their hard-earned money. Granted, The U.S. Department of Commerce’s Bureau of Economic Analysis said that “In October 2011, real disposable personal income increased 0.3 percent.” So that’s cool.

But the choice remains as to where to spend that disposable income. 

Through these winter months, let’s remember to check with our friends, to check the Local First partner directory, and to look for options that support our community and strengthen our local economy first. That can mean dispatching with the “convenience” of “one-stop shopping” (that studies have shown lure consumers into purchasing more than what they intended to begin with) and planning a shopping list and efficient route that supports local businesses. For holiday shopping, a good plan can not only limit total gas consumption, it can save the hapless wandering around department store in search of some random present.

Dozens of our partners stepped forward during Local First week to offer discount coupons for our friends and followers of Local First. There was great media coverage of the event and some solid exposure for independent businesses throughout the state. In fact, notes Local First’s Marketing Assistant Kristen Lavelett, “We achieved hefty statewide reach from our little South Salt Lake Office by employing the power of the internet.” The Gift Shift Coupon was a great opportunity to patronize an independent business and receive the benefit of some exclusive discounts. Just for thinking locally.

Moving forward, we encourage you keep those enthusiastic business owners in mind for all your needs, whether making purchases for yourself or as gifts. They love talking about their businesses which are their passions, and they love sharing ideas about other ways to make local choices.

Stay tuned for some more locally tuned dialogue and, I hope, some fantastic gift ideas.

--Andrew Dash Gillman

Story Highlights:

• Independent business and chains are united on the issue and are at a disadvantage to solely online retailers who claim lack of physical presence or “nexus” (further defined herein) justifies their not collecting sales taxes. But that gives them a 6 to 10 percent advantage over retailers that do collect sales taxes.
  
  
• Bookseller Betsy Burton highlights the matter of fairness in the issue.
  
  
• The fact online retailers don’t collect sales taxes actually do not make them go away, effectively transferring the liability for those taxes to the consumers.
  
  
• Pete Ashdown points to the Constitution to show only a federal solution can correct the disparity but alludes to the current political climate to show that Washington D.C. is not eager right now to address tax reform, especially if it involves raising them in any way.
  
  
• Convenience is the modus operandi of the internet, a driving force of that retail arena.
  
  
• Utah alone lost $180 million in uncollected taxes last year.
  
  
• If the government fails to address the issue, consumers can do their part to help local businesses, the local economy, and the society and infrastructure of their community by choosing to spend more of their dollars locally, whether at physical stores or their websites, ensuring that sales taxes are properly collected.

Introduction

Okay. A quick google search of the question of internet taxation doesn’t reveal all that much so you think, “maybe this whole ‘eFairness: Internet Taxation Forum’ isn’t for me.” But what was a hard sell on paper or on your computer screen was in person an engaging, even lively exchange on a rather complicated question. All that’s left to do here is recreate that dialogue in a way that captures its energy and relevance to everyone. And oh yeah. This affects everyone.

It is rare, but both chains and independently owned businesses have come together to address the issue of internet taxation because both kinds of businesses (and, indeed, all consumers) have a stake in the issue. Sales taxes are, in and of themselves controversial. But if we assume for a moment that sales taxes are a reality of American commerce (a challengeable assumption), then we ask whether all businesses shouldn’t be obliged to collect them with or without a physical presence (nexus) in a specific state.

Specific geographical presence matters because taxes not only vary (from 6 to 10 percent) from state-to-state, they also vary among counties and municipalities. The conflict has its origins in mail-order businesses who sought being excused from sales taxes for that very reason. When internet retails first took the same exemption no one took notice, but now that online sales are in the hundreds of billions and hundreds of millions of dollars in sales taxes are going uncollected, struggling municipalities are noticing.

Ultimately, there’s a two-way street running in and out of the question. The answer, in brief, seeks for 1) a level playing field wherein sales taxes are collected on every purchase, whether online or in a physical store and 2) challenging brick-and-mortar stores to bolster their internet presence in order to offer the same convenience of online shopping. Ultimately, one critical aspect of the discussion boiled down to that question of physical presence, as summed up by that one word: nexus. But more on that later. Back to the beginning, on the fair 18^th floor of the Zions Bank building in downtown Salt Lake, where we lay our scene.

The Discussion Begins and Panelists Offer Opening Thoughts     

Following a presentation of Earth Village’s video presentation showcasing the mission of Local First Utah, the esteemed master of ceremony, Robert Mayer, a professor from the University of Utah Department of Family and Consumer Studies, offered the panelists (click for panelist profiles, requires Adobe Reader) an opportunity to offer some opening thoughts. In terms of the total discussion, the opening thoughts are quite extensive, and convey much of the breadth of the whole discussion.

Bookseller Betsy Burton insists that there are no rational or legal reasons for the disparity: “This is, more than anything else, a fairness issue. Everybody is supposed to collect sales tax. And to pick one segment of the retail population and say that one segment doesn’t have to collect sales tax and the rest of us do is not only unfair, it seems to me to be un-American, sort of anti-competition and anti-capitalism.” Ultimately, Ms. Burton’s two broad talking points have pointed benefits for the economy: “If we collect from everyone equally we can either help to address our deficit or even more interestingly we could actually lower sales tax for everybody,” she says.

Dave Davis echoes Burton’s concern of fairness for both local and national merchants who are pitted against online retailers using loopholes in the tax code based upon an apparent lack of physical presence or nexus. “We don’t want government picking winners and losers,” says Mr. David, adding that another concern not adequately appreciated (indeed, not at all in most cases) by consumers is that since online retailers don’t provide a collection service for sales taxes on things purchased, they are in essence transferring the legal liability for that sales tax to consumers. Both the moderator and Mr. Davis relayed aspects of an anecdote about Scott Matheson Jr. being the only individual to voluntarily send in uncollected sales taxes to the state. In short, liability as a purchaser of goods online doesn’t go away if it isn’t collected, and the state tax commission, so inclined, could audit consumers for failed payment of use taxes for online purchases. It’s no small amount, either. In Utah alone, a study showed $180 million a year in sales taxes goes uncollected. Davis points to education and children’s health insurance as potential benefactors of collected taxes.

Pete Ashdown brought to the discussion a perspective of a business entity not taxed, and one who competes against other entities not taxed. Mr. Ashdown emphasized the internet as a realm driven by convenience, and most consumers when making decisions about email and internet hosting don’t make them based upon whether or not the company is in state. Ultimately, he points to both political and constitutional challenges to levying sales taxes on out-of-state enterprises: the Constitution in Article 1 Section 10, he reads, states that, “No State shall without the Consent of Congress lay any Imposts or Duties on Imports or Exports, except what be absolutely necessary for executing its inspection laws: and the net Produce of all Duties and Imposts, laid by any State…shall be for the Use of the Treasury of the United States.”

So, shows Mr. Ashdown, even if the state did collect such use taxes, it would have to go straight to the federal government. In addition, there is political pushback largely by the Republican Party against the levying of any new taxes or elevated taxes despite the need for deficit reduction. As a result, there can be little hope right now of seeing federal regulations determining internet sales tax, which Ashdown sees as the only way it can be properly handled. Ashdown says the best hope for local retailers is to bolster their inventory and online presence to the point where they can offer the same convenience as online retailers, for those times when consumers are seeking it.

John Ward brought a couple of platforms to the conversation beginning with a relevant analogy in the form of the rise of the use of electronic payment, including credit cards for grocery and gasoline purchases based not necessarily upon economic challenges obliging the use of credit cards, but on convenience and rewards programs associated with their use. As CFO of Harmons, Ward does make the point that grocery shopping hasn’t experienced the same magnitude of migration to the internet, but that it’s gradually coming.

Merchants who wish to comply and collect sales taxes online still face the challenge of juggling dozens of local tax rates. While he’d like to see the state streamline its own sales tax, he agrees with Mr. Ashdown that “a national sales tax that is easy to administer, easy to collect, and easy to remit” is necessary to ensure full compliance. Even if the company looks to bolster its own online should the demand arise, he is pleased to report, “This year alone we’ve put almost $30 million into brick-and-mortar.” At the end of the day, Local First Utah heavily emphasizes and values the experience of engaging in our community through visiting local businesses and establishing working relationships with local business owners and their employees.

Scott Beck of Visit Salt Lake begins by suggesting that “We can all agree that the internet has changed our business model.” He cites the travel agent as a prime example of a kind of business person and business model that has dramatically changed with the conveniences and versatility of the internet. But since internet travel businesses like Expedia.com are an intermediary (a third party bringing together buyer and product, but who doesn’t own the product), there are concerns not about the remittance of taxes, since when a room is sold at a hotel by a website a tax is charged and sent to the locale where the room was sold, but about how the tax is calculated relative to the how much of the total cost of the room is collected for services and fees. From the perspective of his industry, Mr. Beck doesn’t see the sales tax clarification discussion as a matter of “whether, how, or when,” just when. But it has to be easy to understand and implement.

Nexus Defined and the Potential Power of Uncollected Sales Taxes

The discussion that follows goes into some greater detail about the various concerns the panelists brought to the table. The moderator highlights the $180 million in uncollected sales taxes, which Mr. Davis clarifies are solely from online entities who “claim they have no nexus in the state, therefore they have no obligation to collect that sales tax.”

The Utah State Tax Commission simply defines nexus as, “a business has an established presence in Utah. A seller with Utah nexus must collect and pay certain taxes, including sales and use tax.” Nexus is typically interpreted by online retailers to mean if they don’t have a physical presence in a state who define nexus this way, they are not in fact obligated to collect sales taxes (Wal-Mart has an online presence but also nexus in every state, Amazon, the most common example given for their sheer size, does not). But what Mr. Davis shows is that it doesn’t release consumers from the liability to pay. Again, from the Tax Commission: “Use tax is a tax on goods or taxable services purchased for use, storage or other consumption in Utah. Use tax only applies if sales tax is not applicable or if sales tax was not paid at the time of purchase. If you purchase an item from an out-of-state retailer for use in Utah and the retailer does not collect the tax, you must pay the use tax directly to the Tax Commission.”

Thus the joke brought up by the panel about that straight-shooter Matheson, a category into which Mr. Davis included himself, being in the know about the matter. That raises the question as to how many consumers were actually deliberately going online to avoid sales tax, which Davis suggests is likely most true of larger purchases, where seven percent is a significant amount of money. What most of the consumers who are saving that money don’t realize is that just because the retailer doesn’t collect it, as the use tax law shows they are still responsible for it. But clearly the substantial difference gives the online retailer an unfair competitive edge.

Attempting to Level the Playing Field

It’s not to say the whole issue has flown under the radar. Some states have, in fact, been more aggressive on the issue. But simplify, simplify, simplify. It has to be easy for everyone to participate. That would seem to necessitate legislation at the federal level, but many just don’t see it happening. With the question of taxes threatening to derail the federal government on the issue of the national debt ceiling, the question of sales tax reform doesn’t have much elbow room, despite the point that deficit reduction could be addressed by both unremitted sales tax and (arguably, properly) elevated tax rates.

On the other hand, leveling the playing-field may come through the reduction of local use taxes rather than boosting online sales taxes. Mr. Ashdown finds use taxes to be “regressive,” adding that sales taxes “punishes people who are buying food,” something that legislature has debated lifting for years, but has never done. The debate in this year’s legislature, in fact, was to raise the sales tax on food and lower the overall base sales tax, which struck the same chord among community watchdogs, who felt the tax would have the largest impact on low income families, where a few dollars can make a huge difference. Instead, Mr. Ashdown favors “lifting all sales taxes and going more toward an income-related model.”

The moderator raised a political question as to which party will lead the charge into tax reform since it appears that in the short term an answer won’t come out of Washington. Mr. Davis still boils it down to fairness, and even though Ms. Burton chooses to have an online presence for added convenience, she remains at a disadvantage for having to collect sales tax there. Davis goes on to give an example of grey areas between matters of nexus and affiliates (or subsidiaries), the latter of which large online retails use as a loophole to avoid sales tax collections—unless, as has often occurred, a state law is passed obliging the collection, in which case the major online retailers have been known to promptly sever relations and move operations to a more favorable state. In fact, Ms. Burton points out such maneuvering is often blatant, especially with respect to the major players in her industry: “That willingness to bludgeon [competition] and maintain a really unfair advantage is something I think we should all be concerned about.” Ms. Burton’s comments point to the way Local First Utah, and the friends of Local First are able to unite in a common cause with a louder voice to help “Keep Utah Independent” by bolstering our independent business community.

In fact, communities of voices uniting in a common cause at the local level are beginning to have a much greater impact on people’s decision making. And Scott Beck points to online opinion sites becoming the “curators” or “editors” through public consensus, or, “We the People.” The strength of “personal preference by populous” helps (along with editors and critics) to determine what works and what doesn’t, and the good news is that that voice is a very strong champion of the local and the authentic.

The panel proceeded to debate the likely outcome of proposing online sales tax requirements. Mr. Ashdown predicts it would be challenged and go to court, where it would lose, which Mr. Ward echoes. Mr. Davis is more optimistic. He says people are in the process of arguing the breadth of the definition of “nexus,” arguments he believes the states have the opportunity to win.

People just have to get interested in the conversation.

Ms. Burton reiterates an earlier point that the successful generation of online sales taxes will in fact lower the base sales tax rate statewide, which she sees as a conservative goal and issue. Mr. Ashdown reinforces the importance of simply providing value to a consumer.

Ultimately, Mr. Beck doesn’t think there is a government solution and that a level playing field cannot be changed because partisan politics are determined by inherently not level playing fields. But change, he says, happens at the consumer level: “We can spend more of our dollars locally as residents to affect [change] in a real, organic, ground level way that has more impact than what a government agency can do…We as the consumers have the most powerful opportunity to make the change.”

That's what we've been saying all along.

Words and Photos by: Andrew Dash Gillman

The Moab Economy

When last we spoke, a bit of an economic divide in Moab was unfolding. There are many facets breaking down that divide, but in its simplest, gentlest form, the divide is between the seasonal, tourism-driven economy, and the year-round economy.

Some business owners provide year-round services, while others are largely only able to cater to tourism, offering goods of little or no interest to residents. The dialogue is tricky because on both sides of the conversations are legitimate business owners trying to make their living, which with many consumer goods isn’t feasible given the town’s size, hence the drift of business and purchases outside of Moab.

One hope is that some intrepid soul or brilliant entrepreneur is able to carve out a living selling necessities while also supporting themselves. That may not mean a competitively prices electronics store in which to purchase a 72” 1080p HDTV, but it could mean expanding lines of basic apparel and household needs outside of the outdoor gear that most outfitters provide. Village Market’s Mr. Washburn has seen the constraints of the economy and gas prices combine to lure in more local business, but he has also committed to sourcing local products, distinguishing his store both to residents and to tourists through dedicating a portion of its stock to the local economy.

It’s a great start. Yet the localization movement encompasses more than just food production. Moab is already harnessing healthier, renewable energy in the form of wind, a commitment that earned the city the distinction of being the Nation's First EPA Green Power Community. Maybe the next step is learning to use completely regionally available building materials in conjunction with modern building knowledge to maximize energy efficiency within households and businesses. Well, maybe if Moab were a transition town like the one depicted in The Economics of Happiness.

The Voices of Business Owners

Ultimately, Local First Utah can’t answer all the questions. But as we continued our listening- and fact-finding tour we did hear a lot of optimism. Desert Thread’s Cathy O’Connor notes, “A lot of locals really try to support us and also pay cash.” O’Connor’s colorful shop sits next to the 100% wind-powered Moab Times-Independent, though it was a somewhat recent move, part of the town’s “rent-motivated musical chairs.” The difference in rent between O’Connor’s shop just off Main Street and those whose storefronts face the main drag is astonishing. But the fact remains, most tourists simply don’t wander all that frequently off the main strip.

For O’Connor, it’s okay: “You don’t start a yarn business to get rich. But then our overhead is different too. You can sit on yarn for a long time.” That’s not to say she isn’t kept extremely busy with her business. “As a shop owner you don’t have the time to do the things Local First is doing.” And Desert Thread is one of those businesses that offers something not seasonally specific.

Around the corner, the BARKery’s Jessica Turquette has been fortunate to see her business grow though her property commands ahigher rent. But her specialty dog and cat boutique is definitely a year-round service, though obviously adventurous pets accompanying their owners into Canyon Country during the tourist season spurs a spike in business. Either way, the Farmers Market/Sam’s Club divide is apparent to Ms. Turquette too, but she acknowledges if you want, say, lady’s clothing that doesn’t say “Moab,” you’d have no choice but to pick it up on a trip out of town—even keeping a list for a special trip to Salt Lake (where people where clothes that say, “Moab.”) For many goods and some services, that may well be the only option. But who is going to drive their dog to Sam’s Club in Grand Junction when they can get everything they need in town, including a self-serve dog wash?

Making the Local Shift, where Possible

To be sure, Local First Utah’s philosophy maintains that neighborhoods thrive on diversity, and not everything can be local, let alone produced locally. All things considered, many business owners in Moab seem encouraged by the support of residents. Indeed, if more make the local shift by handling everything they can in Moab, they’ve done the most any of us can do anyway. In larger cities, where there are more options facing every consumer decision, the local shift is complicated even further by matters of price and choice. But if the next closest choice is two hours away, it may well be that the best choice is the local choice, even if it costs slightly more in Moab (which it also may not), offset by time and fuel and money diverted to unintended expenditures. As more options do become available locally, perhaps it will raise the standard of living and allow residents more time to enjoy the place most people come only to visit.

Team Outreach Spring 2011 split at the junction of Center and Main to better canvas the town in the short remaining time. While there won’t be time to mention all of our stops from this (or the morning’s work), it is worth mentioning that my afternoon’s refreshment was provided by the previously mentioned Castle Valley Creamery, whose delightful honey goat’s milk yogurt I purchased at the Moonflower Market, another partner business that is a “non-profit natural foods store featuring organic and locally grown produce, natural and organic foods, organic to go prepared deli items, and high quality supplements and personal care products.”

The staff at Moonflower was quite busy during my visit, providing ample time to photograph their commitment to the burgeoning local and regional food economy (see gallery below).

But what of that pending visit with Mr. Bob Owen at Fresh Moab Coffee? Well, we had no idea the treat that was in store for us as we stood by the Overlook Gallery peering down the dirt road, or even whether or not Mr. Owen was on hand. The ensuing discussion occupied nearly an hour, with Mr. Owen embodying several tenets of our philosophy. He was like a mouthpiece for our mission, and living proof of the benefits that come from dealing with a passionate and compassionate small business owner.

Alas, as I have already unburdened myself of a great many words on the first day in Moab alone, I shall reserve this discussion for a special edition blog post.

The sun is already lowering toward the high sandstone mesas and since Matt Monson and I had traveled several hours and talked to several business owners as well as city officials (and now the town’s restaurants were filling with patrons while many of the shops were closing down for the day), we decided we had earned ourselves a short hike. Directly surrounded by the expressive beauty of the Colorado Plateau of southeastern Utah, it’s hard not to answer the call of canyon country’s many random and wild places. It’s a place that has inspired innumerable poetic reflections but, alas, my own are not for this blog.

It would turn out that thanks to the organizational prowess of the Wayne County Business Association’s president Ted Winder, tomorrow’s schedule would be packed. For now, let’s just see if we can’t reach Hunter’s Arch…

Photos and Words: Andrew Dash Gillman

What You Need to Know

~ proudly brought to you by Zions Bank and Local First Utah

June 30

8am-10am

Founders Room, Zions Bank 

18th Floor, One S. Main Street, Salt Lake City, Utah

Sales taxes are a fact of life. Often controversial, they are critical sources of revenue for our communities. Despite the importance of sales taxes, there are substantial loopholes in the system that work to the disadvantage of our municipal and state governments, as well as our local, independent businesses. Here is the loophole: Currently online-only retailers aren’t collecting sales tax at the point of sale despite the fact that the tax is still due. This places small brick-and-mortar businesses, at a significant disadvantage as they are collecting the tax as required by law.

A sale is a sale. Whether it takes place online or at a local business, when a sale is made, a transaction has occurred and the sales tax is owed. The same rules should apply online that apply on Main Street.

This loophole distorts prices paid by consumers. Even small, marginal shifts in sales that may be influenced by an inequitable sales tax system represent a serious competitive disadvantage and they challenge the sustainability of local businesses.

Come and learn more on June 30th, 8am-10am, Founders Room, Zions Bank, about how this issue is affecting Utah. To RSVP please click here and for more information please contact Amy at  This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Getting Started: General Session

On paper, Salt Lake City’s 2^nd Annual Neighborhood Business Conference “Walk this Way” looks pretty great. Actually, printed on bright kelly green (or is that green-yellow?) with the Seal of Salt Lake faded into the background, it looks fantastic. Credit, here, is due to Kim Louie Creative and the illustrations of Stephanie Swift. As for the conference itself, let’s just say Local First Utah, teamed up with Salt Lake City, put on quite a show. Quite a show, indeed.

It all began on a perfect spring morning, the kind where you walk out your front door and say, “Ah, nice day for bike ride and a better day for a Neighborhood Business Conference.” If you’re Salt Lake City Mayor Ralph Becker, you opportunistically do both, by riding your bicycle to the conference (with an extra tray of Gastronomy fruit tarts bungeed to the back).

First thing in the morning, participants mingled and awaited the beginning of the general session. The lobby of the Jewett Center for Performing Arts was already buzzing with networking and ideas. Soon, everyone assembled in the Gore Concert Hall for a general session worth writing home about.

Many “thanks,” “thank yous,”and even a “thank you very much” or two were accompanied by an abundance of gratitude, inspiration, and encouragement to launch the general session. Westminster Provost Cid Seidelman reminded participants about Westminster College’s many goals and achievements. (And special thanks are due to the staff and volunteers from the college that helped make the conference run smoothly.)

Salt Lake City’s Dan Velazquez (Small Business/Economic Development Manager) was there, as was Bob Farrington (Economic Development Director). Mayor Becker unveiled many of his small business and city planning initiatives that make Salt Lake a better, healthier, multi-modal, and vital place. Local First Director Joelle Kanshepolsky not only added her support to the conversation, but helmed a breakout session later that morning. Local First State Coordinator Matt Monson introduced the morning’s keynote speakers: Steve Bercu and Rebecca Melançon.

The Austin Experience

What followed was an inspirational dialogue about the successes of the “Buy Local” movement in Austin, Texas. And while Austin is different in many ways from Salt Lake, Melançon and Bercu showed the way in which they helped build a city-defining movement, took on challenges, and unified business owners in a common goal, even though the diversity and independence of many business owners added several distinct voices to the conversation. In other words, by acting as a voice, like Local First Utah, eight business hubs (called IBIZ districts, or Independent Business Investment Zones) emerged in Austin, with plenty more to follow. In a few short years, independent business owners quickly embraced their freshly branded unique district identity and harnessed the marketing power of that unification to bring in and retain a thriving customer base.

And everyone worked together to get the word out.

The results have been very encouraging, most notably where the Austin Independent Business Alliance (of which Bercu is President and Melançon is Executive Director) has been able to deal more effectively with city officials as the representative voice of small business interests. Interest is growing, and new districts are independently coming together. Interestingly, some of the newer, largely well-off developments with mostly national chain businesses are catching on and trying to brand themselves similarly.

It’s encouraging to see the size, strength, and potential of the AIBA and realize that similar potential exists in Utah. While “Keep Austin Weird” makes sense for Austin, Local First Utah is working to give voice to and brand independent businesses throughout the entire state. While that move presents unique challenges with the different voices emerging from our many unique hubs, Utah is also united by a strong entrepreneurial spirit that is directly descended from its pioneer heritage. Small businesses run by our friends, neighbors, and our own families have long been the backbone of our many communities. But in recent years have we been challenged by larger entities threatening to destroy the character of our neighborhood commercial districts.

The 2^nd Annual Neighborhood Business Conference is a forum for discussing strategies to keep the independent spirit thriving, and while it was geared toward the city of Salt Lake, the messages learned from the conference is that every town and city in Utah can work toward the same community unifying goals. Many of those messages were expounded upon in a brief Q&A with a panel composed of the keynote speakers, Mr. Farrington, Local First Utah Board Co-Chair David Nimkin, and Salt Lake City Councilman Luke Garrott.

Networking and Dialogue

Following the general session, a brief networking session (fueled by Rimini Coffee) in the lobby of the Jewett Center allowed neighbor businesses to talk and write about the strengths and weaknesses of their districts while addressing both opportunities and limitations to achieving their goals. The different districts, from the existing Avenues, Broadway, 9^th and 9^th, and 15^th and 15^th to emerging districts at Pierpont, State Street, North Temple, Foothill, and Sugarhouse and more, did have some unique challenges, many were addressing similar questions. The networking session showed what is possible just by getting the conversation started. It also showed, for coffee drinkers present, how good Rimini’s coffee is.

Break-Out Sessions

With encouragement from the general session, questions from the networking session, and strategies in mind, participants separated into pre-selected break-out sessions located across Westminster’s beautiful urban campus. Those sessions ranged from “Loan Resources” and “Marketing and Branding” for small businesses to the “Advantages of Buying Local First.” The city also chimed in with “Sustainable Paths to Better Business Districts.”

Dan Velazquez was joined by Steve Price and Justin Belliveau as well as Utah Microenterprise Loan Fund’s Executive Director Kathy Ricci to tease out small business financial concerns. Local First’s Matt Monson brought his small business experience and grassroots activism to the “District Identity” session where Crowell Advertising president Traci Crowell discussed strategies for better branding. They were joined by arts administrator Roni Thomas and Greater Avenues Community Council board member Ruth Morgan.

Though city code is often daunting in appearance and difficult to navigate, James Allred, Nole Walkingshaw, and Jeff Barnard showed participants that it is possible to “Bust Through Red Tape” and develop a positive, functional relationship with the city. Meanwhile, the Small Business Liaison for the Economic Development Division of Salt Lake, Jessica Thesing, was joined by business owners Marci Rasmussen (Especially For You) and Scott Evans (Pago) to talk about the successes and future potential of “Neighborhood Business Districts, 101.”

If you’re a frequent visitor to localfirst.org, you know well the many advantages of choosing Local First. But Beehive Cheese’s Pat Ford and Liberty Heights Fresh’s Steven Rosenberg have a lot to add to the conversation, and even more to add to the state’s local and independent economy and culture. With help from Local First Director Joelle Kanshepolsky, participants were treated to a tour de force in the local first mission and philosophy in practice.

Finally, University of Utah’s Office of Sustainability Program Director Myron Wilson was joined by Camille Winnie, who is the Community Development Director of the Downtown Alliance, as well as Salt Lake Brewing Company’s Development Director Amy Coady and community liaison Bill Knowles in a session moderated by Deputy Mayor David Everitt on creating a healthier, more sustainable and livable city. Recycling, walkability, and multi-modal transportation (namely bicycles and trains) dominated the conversation, but Mr. Wilson used the self-contained experience of the university campus and its goal to achieve carbon-neutrality as a model for creating a healthy city.

Wrap and Thanks

Not everyone who had intended to attend the conference was able to make it, so Local First Utah will have available at future tabling events (see our calendar) additional copies of the N.B.C. participant folder with facts and information about the event and its presenters, as well as additional resources and city projects that prove to make Salt Lake City not just a model of future development and redevelopment for the rest of Utah, but for the rest of the nation.

The same drive and motivation that led you to start your business is the sustaining energy behind the local first movement. In Utah, that drive is as strong as ever, and the Neighborhood Business Conference and likeminded events throughout the state are constantly proving that thinking, acting, and buying Local First Utah is a cause more than just worth supporting—it’s a cause worth living.

Thanks again to everyone mentioned herein, the city’s team and interns, Local First volunteers, and the dedicated event planning and coordination ofLocal First Utah’s Amy McCuaig and Matt Monson.

Special thanks, once again, to American Express, Zions Bank, ISIS, University Credit Union, Utah Microenterprise Loan Fund, Gastronomy, Squatters, KRCL, Harmons, Rimini, Sodexo, Crowell Advertising, Cactus & Tropicals, Vest Pocket Business Coalition, and Parrish Place Bed and Breakfast.

Author and Photographs: Andrew Dash Gillman

PART 1:

The Wall Street Journal posted in October, 2010, that the relentlessness of the economic downturn was keeping small business owners from being able to hire new people and spur economic growth. There is nothing about that statement that doesn’t make sense, but its repercussions seem to be far reaching:  “small businesses, known for jump-starting economies, aren’t upholding their reputation…the forerunners in hiring and growth [they are] the harbingers of recovery.” The economics of such an equation are, well, better left to economists, but is it fair to claim that small business aren’t “upholding their reputation”?

The immediate answer is yes. The Journal doesn’t criticize small businesses for failing to do their part. Small businesses cannot be expected to shoulder the burden of the national economy. Or can they?

The article quotes Stephen P.A. Brown, who is the director of the Center for Business and Economic Research at UNLV, who notes that “‘Consumer income just isn’t back yet.’” Consumer confidence, in other words, is relying upon the presence of jobs. But Brown says something more compelling: “‘A lot of small businesses have direct [contact] with consumers.’” Brown’s point strikes the core of the Local First movement, but gets no further attention in the article, which focuses on data and economics.

There is something not measureable about Brown’s notion, like the hypothetical “util” unit of measurement that accounts for the economically immeasurable aspects of utility and satisfaction gained from the acquisition of goods. All that is quite tangible but not quite quantitative about the experience of shopping locally is the emotional core of Local First Utah. The mission is simple in that Local First seeks to strengthen communities and local economies by promoting, preserving, and protecting local, independently owned businesses throughout Utah.

While that mission is measurable economically in the percentage of money spent that stays in the local community, it is also measurable in neighborhood vitality, including access to goods supplied by local business owners or the opposite: vacant storefronts once inhabited by friends and neighbors.

Thursday, January 6, 2011. Says The Wall Street Journal on small business: “The Future is Brighter in 2011, but Problems Linger.”

Neat.

Sarah E. Needleman, Emily Maltby, and Angus Loten reported that increased consumer spending and an improved credit market may bolster small business, but likely only the healthiest among them. That is a “marginal” improvement, at best, but the increased confidence may at the very least allow merchants to slightly raise prices from the rock-bottom points established in the valley of recession to try and lure in consumers.

That trend proved true in January throughout the United States, but not in Utah, according to The Salt Lake Tribune from February 18—at least for the time. That trend should change in Utah if gas prices increase as expected, along with the increase in price of food and raw materials.

Of course, wages have remained low and a corresponding increase in unemployment claims nationwide are not encouraging signs, even in Utah where jobless claims have actually decreased in one of the few states that still has a funded unemployment coffer.

Whew.

It’s a lot to process. With luck, some of it can be worked out in Part 2 of this discussion.

PART 2:

What on earth is anyone, whether an individual or a struggling small business to do with this information?

On the one hand, Utah has proven resilient, and bucked some of the trends that have devastated other states’ economies. Maybe it’s our pioneer heritage and entrepreneurial spirit, but (notable and tragic exceptions notwithstanding) business owners have hung on in desperate times. On the other hand, no one is exempt, and that is how an individual can actually take action. While the big boxes do offer access to relatively cheap consumer goods, everyone has to ask himself or herself whether or not we need all these goods. To be sure, the layouts of these stores are designed to lure consumers in walking out with more they intended, but they also are completely vacant of any emotional resonance, replacing knowledgeable, passionate individuals with a vested interest in the goods with oversized, yellow smiley faces.

Local First Utah is about encouraging and empowering individuals to take as much of their business and buying power to the people who care about their products and their customers. It’s about feeling confident walking away from a conversation with a business owner. It’s about real community.

An economist once argued that Sam Walton created more jobs than any other American entrepreneur in history. Unfortunately, he may well have been right. But it seems to have come at the expense of a skilled American labor force, and a manufacturing industry exported oversees, the gradual process of which has worsened our country’s dependence upon fossil fuels and promulgated the artifice of the American dream through unnecessary access to consumer goods through free trade that protects America’s interests at the expense of other countries.

Alas, the best we can do, in many instances, is support the local purveyor of global goods. That’s okay! We can’t just severe the supply line, but if the goods are already made out of the country, why send the profits out of state? Happily, in many other instances, truly local choices can be made. That is the light at the end of the tunnel, and a light that is getting increasingly brighter. Some of the related questions left unanswered herein, as well as best practices for acting on behalf of the preservation of our cultural vitality will be addressed in this blog moving forward.

There is a lot of gloom and despair hanging over this rant. But small business in Utah, a direct bloodline of the state’s pioneer heritage, has always been supported by hope and joy, the fuel of the human spirit. In every exchange there is choice. Local First Utah reveals the choices that can be made locally, and in doing so preserves the independent spirit of our industrious state.

Author: Andrew Dash Gillman