The Old & the Rested

The Old & the Rested

ECONOMY by Francis X. Gilpin | Associate Editor

Three years ago, then-Greater Tampa Chamber of Commerce Chairwoman Deanne Roberts and other local business leaders came under the spell of social theorist Richard Florida.

Such was their devotion to Florida's main thesis - attracting tech-savvy, culturally sophisticated members of generations X and Y is the economic salvation of American cities - that they flew in the man himself. They also hired Oregon economist Joseph Cortright to figure out how the Tampa Bay area could stanch the outflow of the so-called creative class to younger and hipper locales like Atlanta and San Francisco.

Cortright returned here recently on a new assignment from a Florida-inspired group co-founded by Roberts called Creative Tampa Bay. This time, the Berkeley-educated Cortright was given a less daunting challenge.

Instead of offering up advice on how to transform the Bay area into something it might never be, Cortright was asked to assess the Bay area's uniqueness. That way, Creative Tampa Bay could devise an economic development strategy that would play to the region's strengths.

Cortright compiled an array of demographic data from both government sources and private marketing surveys. The regional portrait that Cortright presented at a May 18 economic development conference in St. Pete Beach wasn't totally flattering, but it did offer some suggestions.

Relying on the demographic snapshot, Cortright recommended a somewhat coherent strategy for growing the local economy that may be useful to the business groups from Clearwater to Sarasota that sponsored his research.

The bottom line: The central Gulf Coast of Florida is best positioned to be a place where aging Baby Boomers can ease into retirement. The recreational facilities will keep them active. The cultural amenities will keep them in touch with their Muse. And the proliferation of non-traditional employment agencies will provide part-time work so they don't go broke in their golden years.

Roberts, who owns a public relations agency based in Tampa's Ybor City, says the elements are in place for the Bay area to "reinvent retirement" for 21st century Americans.

Don't forget strip joints

What kind of picture did Cortright paint?

Cortright listed attributes that make this part of Florida different from most of the other 49 biggest metropolitan areas in the United States. All of the attributes begin with the letter "b."

Beaches and boats. Big business employs a higher percentage of local workers than in the other markets. Banks and other financial service firms also are staffed with a disproportionately large share of working-age residents. Lots of 'burbs and backyards. Bikes, too. Residents think the Bucs are a big part of the region's identity.

And, of course, there is an increasing migration of Baby Boomers, with more to come.

After prodding from Roberts and another PR agency owner, Peter Kageyama of St. Petersburg, Cortright added one more attribute beginning with "b," an informal term for a part of the female anatomy, to signify the heavy concentration of adult entertainment businesses in the Bay area.

"We defer to local expertise," Cortright said as he departed from his prepared remarks for a moment.

Then, Cortright launched into the less obvious characteristics that make the Bay area different and not as strong as the rest of the pack.

Since many workers toil at big employers, entrepreneurship is relatively uncommon.

Fewer than 15% of local residents filed federal tax returns reporting income from sole proprietorships, according to 2000 census data. That was below the national average. Barely 5% of local college-educated adults reported income from a small business, again below the national average. In addition, the number of patents obtained by local residents or companies per 10,000 employees was lower than the national average.

The consolation on the entrepreneurial front was that San Jose, in the heart of California's Silicon Valley, scored the lowest of the 50 metro markets when it came to residents operating their own businesses. Cortright says San Jose probably did poorly because there are so many established Northern California tech companies to work for. Los Angeles had the highest rate of entrepreneurship, using Cortright's measurements.

Off the couch

In other respects, the Bay area doesn't sound ready to welcome thousands of Boomers who will insist on being amused, erudite and fit while in semi-retirement.

Local residents worry about the quality of public education, yet adults seldom venture out to learn something themselves at a library, museum or lecture. They are generally uninterested in local issues and give fewer donations to charity.

On the brighter side, Cortright says the Bay area has a homegrown industry, employee leasing, which would be a natural for active Boomers who want to remain in the workforce awhile longer.

"It's not a big exaggeration to say the whole concept of employee leasing and professional employer organizations was invented in this region," says Cortright, mentioning Bradenton-based Gevity HR Inc. as an exemplar. The Bay area accounts for 10% of all of the nation's growing employee-leasing activity, according to Cortright.

If local businesses hope to cash in on an influx of active Boomers, however, Cortright says the Bay area has some changes to make.

Residents must participate more in community activities. Active newcomers will expect to feel a civic energy if they are to put down roots here.

Cortright blames much of the inertia of local residents on suburban sprawl and poor mass transit.

He urged Creative Tampa Bay to encourage residents to "get off the couch" and do something by finding alternative methods for them to get around town besides the region's clogged traffic arteries.

By the Numbers

Tampa Bay area residents are different Spending categories as a share of total household expenditures, compared to national averages.

U.S. Tampa Difference

Cash contributions 2.60% 1.10% 1.40%

Apparel and services 3.30% 2.20% 1.10%

Education 1.70% 0.60% 1.10%

Food away from home 4.50% 3.40% 1.10%

Entertainment 4.10% 3.10% 0.90%

Public transportation 0.80% 0.40% 0.40%

Alcoholic beverages 0.80% 1.00% -0.20%

Source: Impresa Inc. analysis of consumer survey data