The city will lose a huge chunk of revenue during the next two years when The Washington Post Company moves its printing plant from College Park to Springfield, Va. Citing declining circulation, the company has said it’s just not efficient to run the property, which opened less than 10 years ago. From a business perspective, the announcement makes sense. What we find odd was District 2 Councilman Bob Catlin’s reaction on Friday to the announcement: Despite the fact that the company’s plant brings in the single-largest chunk of property taxes, Catlin told The Diamondback’s Brady Holt that “[I]t’s not a surprise” and that the council was already planning for a $100,000 drop in revenue.
Maybe Catlin and council members are more concerned than Catlin conveyed. It’s our view that they should be. After all, losing The Post Company’s $272,000 in annual tax revenue isn’t exactly what one would call a small hole in the city’s purse. The closing might be just two years away, giving the city a decent chunk of time to figure out just how hard a hit the loss will be on the city’s financial situation. With a bum housing market and a recession looming, the plant’s closure and declining housing values could lead to a scary budget scenario during the next couple of years, and students and residents deserve to know how the city might fare. If nothing else, the city has a clear responsibility to prepare residents and students alike for the possible effects the loss of the company could have on their daily lives.
Even though it is impossible to look ahead and know exactly what kind of impact the loss of the printing plant will have, students and residents should be keeping a vigilant eye on the situation, particularly in order to protect crucial city services. As soon as possible, the city needs to begin outlining what services could see cuts due to the revenue loss and begin implementing a plan to maintain the most important of city services, such as increased police presence. Those who live and work in College Park have a right to know what they can expect in terms of tax increases and services afforded to them before they renew leases or consider moving to the city.
At some point, whether Catlin wants to acknowledge it now or not, the city is going to have to figure out how to make up for this shortfall. News of the closure comes at an especially crucial time, considering the city is looking to build a huge downtown parking garage using public money and has already spent more than $1 million of taxpayers’ money to purchase private property downtown for the project. Is taking on debt to build the garage prudent at a time of economic uncertainty? There is time to work on getting answers, and residents and students should demand them.
Beyond the economic impact of the plant closing, the city is losing a good neighbor, as well. The Washington Post printing plant not only provided a major spike in tax revenue but also consistently maintained a good relationship with the city and its residents. The company had never asked for tax exemptions despite having the ability to do so, and it often worked hand in hand with the city council in order to maintain good relations with the residents and students of College Park. They participated in the state’s Live Near Your Work program and helped to provide adequate employment for many city residents. The loss of the plant and the hopeful inclusion of a new tenant will undeniably have an effect on the community as a whole, as well.
It is imperative that not just the city council but also the residents and students of College Park keep a close eye on this situation as the closing draws nearer. While it may appear there is adequate time to prepare for the economic and social impact of the loss, there are so many factors to consider that taking a lackadaisical approach may end up being a major mistake. Having the advance warning of the impending loss is a major benefit in a sad situation. Why not take advantage of it to limit the damage?
