An Open Letter to Developers in Redwood City

There is all this debate swirling around whether or not Redwood City is being overbuilt. It is clear that our cyclical economy is either already at its peak or past its peak and on its way down. Just the fact that people are talking about what should be done during the next low should make it clear that people can already sense the changes coming. Personally I would say that whether we want to acknowledge it or not a couple of major indicators are pointing down: water and China just to name two.

While some areas of the Bay Area and Redwood City in particular have yet to really feel the effects; not that far away communities on the ocean are already relying on water that is trucked in. Stories of children being bathed once a week are starting to proliferate. While some people suspect that El Niño is just around the corner and that he will be a big El Niño, the fact is that it still isn’t a sure thing. El Niño could come and not dump water in the right areas, or dump too much of it at one time to make it useful. Water is not just a local issue. In country after country, area after area, the lack of water and development are running smack into each other.

Even if we had enough water though now that Redwood City is becoming a one industry town namely a high tech town; Redwood City now also needs to worry about the business cycles of technology. A lot of the local technology companies have maxed out national growth and are now looking for growth internationally and in particular in China. China however is also maturing. Regardless of whether or not you believe that it’s recent problems are lasting; the fact is that its rate of growth can not and will not be maintained. China is now trying to arrange for a soft landing but even if they are able to pull off that soft landing it is going to mean that our local Redwood City companies are not going to get the sales that they had hoped for.

All in all, unless you are a large developer who is financially strong enough to carry the empty buildings for a couple of years, it might not be wise to rush to build and develop many more properties. And if you are a small developer attempting to come in at this point you may want to give it some thoughtful consideration before you proceed.

Historically one of the jobs of government in this country has been to provide a counter weight and balance to the forces of the market. But lately instead of providing a counterweight government is starting to follow the market which means that they end up amplifying the messages although in a delayed fashion which is likely going to make the highs, higher and the lows lower. Those politicians that are urging you to build, build and build may not be doing you a favor. If I were you I would weigh the pros and cons carefully.

Sincerely,

Tania Solé

Candidate for City Council

Redwood City, CA