European Stars And Stripes (Newspaper) - May 6, 1987, Darmstadt, Hesse                                Traffic moving along state Routs 41 in Oakhurst Cam. Below is a naw apartment Complex there. Gordon poems right Haattvedt cat Fornola 9 High Sierra for 73 years a opt on coming Here to got away from halt but they re bringing thu Chi with  s of local government re Ira ent hat Are just being harvested said James b. Hudak a partner in is san Francisco Ollice of the accounting firm Arthur Andersen & co. For the first couple of years the state bailed out cities and counties Hudak added. Then cities implemented salary freezes sold surplus land employed creative accounting. Bui now they be run out of things to do and Ara forced to look Al More creative  Fairfield a cily of about 73,000 that is Halfway Between san Francisco and Sacramento was one of the firs and most aggressive practitioners of government entrepreneurship. When Gale Wilson the City manager was approached by Ernest w. Hahn inc. In 1976 for permission to build a Small shopping Center he proposed a Large regional mall. The City purchased the land for $1 25 a Square foot and sold it to Hahn Lor $2.25 a Quick $1 million prolix. In return the City expedited zoning variances and building permits. Fairfield negotiated the Deal to get increased Revenue in property and sales taxes. 8ui after proposition 13 was passed in 1978, he City worked out a new Deal with Hahn to compensate for the Revenue Cul. Under that arrangement Fairfield will receive in perpetuity 10 percent to 17 percent of net Cash flow after expenses from tha merchants in the one Milton Square fool mall. Despue initial reservations the company says it has had no problem with the arrangement and has a Nate similar deals since then. Far tied sole harm Only Hill of the land in bought and Wilson expects to realize far greater profits from the 66 acres surrounding the mall. The first tenant of a new development there a toys a us Siloro has agreed to give the cily 50 percent of its net Cesh Low in return for the Nghil to locate on thai land. Wilson s staff is taking a similarly aggressive posture in acquiring land and negotiating leases Tor an automobile Dealership Center. When the United states postal service turned Down the City Tor a new Post office Fairfield Buill one anyway and now leases it to the Postel service. I Lell developers you have 1o do things our Way " Wilson  yes Well make you pay but you will make Money " Wilson said his efforts had been aided by Fairfield s size location and rapid growth. But similar projects Are under Way across the United slates and the motivation olten goes beyond generating Revenue in Cincinnati the cily will get 17 percent of the. Profit from a project that includes a Weslin hotel and a new Home Soltice of the first National Bank of Cincinnati. The main objective of the Deal in which the City assembled the land and handled the financing was to rebuild a blighted area and get a luxury hotel in the City s Center but sharing in the Protil helps keep up wild inflation and helps to sell a project to the Public and the i a Council said Nell sober director of redevelopment in Cincinnati. San Antonio is a partner in a Sheraton hotel with the encore co. Of Dahs and China s National Bank which was approached when american Banks showed no interest l in he project. The City s principal goal was to nil Vert twin a photo a More hotel rooms to make the cily More Altra Clive for conventions but this and other investments Are expected to provide it with an additional $5 million a year in Revenue. The cily is now taking a position that we have something of value and we wan something in return said Louis j Fox san Antonio s City manager. In Pasadena calif., the cily plans to Market telecommunications and office alarm systems. Judith Weiss the assistant City manager said the communications systems were expected to make offices in Pasadena More competitive while the City hoped she alarm systems would lower the Cost of providing police and lire Protection. Ii some deals appear loosen Tho door to cronyism kickbacks and unfair Competition proponents of entrepreneurial government say the Mere appearance of corruption has ended 1o have such a chilling effect on development that cities have gone out of their Way to avoid it cities doing this successfully Are finding thai they have to be cleaner Ihan Caesar s wife said John j Kirlin a professor of Public policy at the University of Southern California s Sacramento Public affairs Center. Some experts fear that not Alt local governments have the savvy to handle such deals. Some will be Roesmer ired by the talk o easy Cash flow and will do something they la water regret said David e Dowall. Associate director of the Institute of Urban and regional development at the University of California at Berkeley some very Sweet deals have been negotiated for the private  in May 6,1987 the stars and stripes paga15