Thursday, October 29, 2009

Business Practice?

The following story caught my eye. “Olsen Brothers Enterprises LLP has been ordered to pay about $194,000 in fines and other fees for violating storm water and erosion control laws while they built new grain storage facilities in Belmont and Boscobel.”
The reason the story interests me is that I’ve been doing site plans and building permits for years and thought that some (not all) companies have used the following tactics during construction projects.
“In its decision, the court said the defendants' history in these operations appears to be that "they would make the business decision, go forward with the project, and accept the costs for violation of the permitting procedure as a cost of doing business." As a result, the State of Wisconsin was compelled to obtain a restraining order to make construction cease at the Belmont site until a permit was obtained.”
Now, I’m sure that has been a business plan rather then lack of experience. The fact is that many small cities lack the ability and will to stand up to these companies because of a lack of qualified personnel, money and the politics involved. A big company bringing jobs and other investments verses the government bureaucrat – hard to win that public opinion poll.
What really bothers me is that the problem is going to get worse – not better. These companies now use the economy as the basis for only wanting to invest in what makes them money and think it’s the governments’ responsibility to handle the third party effects or better yet – ignore them. These small cities will require additional funds that will have to be generated at the local level to support the cost of covering the third party effects. The public isn’t interested in giving us anymore money for anything. Yet, the cost of making them comply is going to cost a lot too! Small cities and the State are going to have to have a plan for dealing with this problem.

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