City’s vending manager goes bust
April 16, 2009 at 3:30 pm by Scott Henry in News
Here’s a pitfall of privatization: Sometimes the company hired to perform some public task goes kaput. That’s the Atlanta-related footnote to today’s big business news, summed up here by the New York Times:
General Growth Properties, one of the largest mall operators in the nation, filed for bankruptcy early Thursday morning in one of the biggest commercial real estate collapses in U.S. history.
What’s the ATL connection? Well, last summer, the City Council finally hit upon a solution for dealing with the motley collection of street vendors that operate around the Five Points MARTA station, Turner Field and other locations. For years, local business owners had complained that raggedy-ass vendors’ booths made a poor impression on visitors and made downtown look shabby (or perhaps shabbier). The city, however, had never managed to muster the political will to force vendors to shape up.
So the Council hired GGP to take care of the situation. Under the new program, instead of setting up a makeshift booth or simply spreading their crap out on the sidewalk, vendors must rent a stylish metal kiosk from the company, which will be responsible for making sure vendors meet certain standards.
Mayor Franklin’s office says the GGP bankruptcy won’t immediately impact the public vending program, which was scheduled to launch this summer. Let’s hope she’s right; I’m tired of buying fake Louis Vuitton handbags from street vendors who don’t offer the full luxury retail experience.
April 16th, 2009 at 3:56 pm
GGP is not kaput, they are reorganizing, which may not affect Atlanta at all.
Worst case scenario, it goes back to the crappy way the city handled it.
April 16th, 2009 at 5:01 pm
Yeah, I’m with you DaleC. Is this an underhanded attempt to knock privatization simply because a firm is reorganizing? So what? I think the better question is whether or not GGP’s services have: (a) improved vendor presentations; and, (b) saved taxpayer dollars/created public value. Let’s not get into the habit of demonizing privatization because both the City and Fulton County desperately need to consider privatizing even more of their city functions if they meet the two criteria above.
April 16th, 2009 at 6:08 pm
Demonize? Nay, sir. Hell, CL is “reorganizing” as we speak. But I find it mildly ironic that the Council gets mucho pressure to privatize; they vote to do it; and, before they program can get under way, the contractor goes bankrupt.
Actually, the program is a great idea and I hope it still goes through. I’m just trying to stir conversation.