Politics & Government

Union, Several Council Members Seek Assurances on Local Jobs

Development is often touted as a source of new revenue and jobs. But if out of town workers build the project how much benefit does Petaluma really get?

 

Development is often touted as a source of new revenue and jobs.

But if out of town workers build the project, how much benefit does Petaluma really get?

Find out what's happening in Petalumawith free, real-time updates from Patch.

This was one of the concerns raised at Monday’s city council meeting as the group studied the economic impact of the proposed Riverfront development on Hopper Street that would include a 120-room hotel, nearly 300 units of housing and 90,000 square feet of retail and office space.

According to the economic impact report, the Basin Street Properties project would create an estimated 2,000 temporary construction jobs and 350 permanent jobs. But many worry these jobs will go to out of area workers, as has occurred on the ongoing Target project, robbing Petaluma and other Sonoma County residents of the full benefits of the development.

Find out what's happening in Petalumawith free, real-time updates from Patch.

“Petaluma is looking to these developments to bring in badly needed revenue and jobs, but this will only materialize if local workers are hired to work on those projects,” said Carl Sanchez, a spokesman for Sheet Metal Workers union Local 104, based in Petaluma.

Sanchez criticized Regency, the company building the Target-anchored shopping center on East Washington Street, for “importing cheap labor” from the Sacramento Valley in lieu of hiring local workers. He also reminded the audience that Midstate, a contractor on the Target project, was recently fined for failing to comply with California prevailing wage law.

“There will not be enough sales tax revenue if the wages are so substandard that they don’t cover anything besides food and shelter," he said. "Who’s going to buy a new golf club at Dick’s Sporting Goods if they can’t afford the rent?"

Other residents and at least one other construction worker urged the council to do what it could to push the developer to give Sonoma County residents priority on construction jobs, if and when the new development is built.

Teresa Barrett recalled that Staples was also built using out of town labor by workers brought in from Idaho.

“They went back to Idaho when the project was done and there was no multiplier effect (on the local economy),” Barrett said. “If Basin Street can persuade the hotel to not use the contractor that comes as part of the package, that will make a big difference.”

The city doesn't have agreements that require local labor on construction projects, but it can ask developers to make hiring local a priority, said Mayor Dave Glass.

Bill White, co-founder of Basin Street Properties, said he was emphathetic to the concerns.

“I hear what’s being said and take it very seriously,” White said, adding that Basin Street prides itself in using "a lot of local labor and intend to continue doing that."

Are you concerned about new developments not using local construction crews? Share your views in the comments below.

See other recent stories from Petaluma Patch:

With Shrinking City Budgets, Park “Adoptions” on Rise

Did Butter & Eggs Melt Away Downtown Sales?

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