Good morning, Bureaucracy Busters in Training!

BusinessFlare Take

TARIFFS FORCE CITIES TO CONFRONT UNCOMFORTABLE ECONOMIC MATH Cities betting their economic development strategies on manufacturing reshoring need to ask harder questions about Trump’s tariff policies than they’re currently willing to face. The The Wall Street Journal analysis reveals that businesses are pulling back investment precisely because tariff uncertainty makes long-term planning impossible. Here’s what your economic development team should be demanding answers to: Which specific manufacturers in your target sectors are actually expanding domestic capacity versus just raising prices? How are your existing businesses factoring tariff costs into expansion decisions? What’s your backup plan when companies choose Mexico or Vietnam over your industrial park? Most critically, are you tracking which businesses are quietly relocating operations to avoid tariff exposure entirely? The uncomfortable truth is that tariff policies create winners and losers at the local level, and most cities have no systematic way to identify which category they’ll land in. Smart economic development directors are already stress-testing their recruitment pipelines against various tariff scenarios instead of assuming reshoring will automatically benefit their community.

Street Economics Insight

COMMERCE DEPARTMENT BROADBAND RULES CREATE $42 BILLION OPPORTUNITY FOR CITIES READY TO COMPETE The Commerce Department’s new rules for distributing $42.45 billion in broadband infrastructure funding represent the largest opportunity for municipal economic development since the interstate highway system, but many cities will find ways to complicate their applications and miss the window. The program prioritizes communities that can demonstrate actual need, realistic implementation timelines, and partnerships with reliable providers rather than political connections or consultant-driven proposals. This creates a massive advantage for cities that have already mapped their connectivity gaps, identified underserved areas, and built relationships with telecom companies that actually deliver projects on time. The economic development implications extend far beyond internet access: businesses increasingly require fiber connectivity for everything from cloud computing to remote work capabilities, and communities without world-class broadband infrastructure can’t compete for modern industries. Cities should be asking: Have we conducted actual speed tests in our business districts and residential areas? Do we know which neighborhoods and commercial zones lack adequate connectivity? Have we identified telecom partners with proven track records of completing large infrastructure projects? The federal money will flow to communities that can answer these questions with data rather than wishful thinking, creating a permanent competitive advantage for cities that take broadband infrastructure as seriously as roads and utilities in a few forward-thinking regions while everyone else fights over yesterday’s industries.

Drama Meter Reading

10 out of 10! CLIFTON CITY MANAGER SUES COUNCIL OVER FIRING IN TEXTBOOK MUNICIPAL MELTDOWN Former Clifton, New Jersey City Manager Nick Villano is suing the city council that fired him, claiming the termination violated his employment contract and due process rights. The lawsuit alleges council members conducted secret meetings and failed to follow proper procedures before giving him the boot. This represents everything wrong with municipal governance: hiring managers without clear performance metrics, firing them without documented cause, and then spending taxpayer money on legal fees that could have been avoided with basic management competence. The real lesson for other cities is in the prevention. Every city manager contract should include specific performance indicators tied to measurable and attainable outcomes, not vague political satisfaction standards. Council members who can’t articulate why they’re firing their top administrator probably shouldn’t be making that decision in the first place. This registers a 10 on the Drama Meter. www.dramameter.com

Book Drop

CRAFT BREWERIES PIVOT TO THC DRINKS WHILE CITIES STRUGGLE WITH REGULATORY INNOVATION Craft breweries across the country are diversifying into THC-infused beverages as beer sales decline, creating regulatory challenges (excuses for more red tape) that most cities are completely unprepared to handle. This trend perfectly illustrates the core premise of “Unleash Your Unfair Advantage” that businesses will always innovate faster than government can regulate, leaving communities that embrace change ahead of those that resist it. Smart cities are already updating their business licensing frameworks to accommodate cannabis-adjacent industries, while others will spend years in legal limbo trying to fit new business models into outdated regulatory boxes (I won’t list you here, not yet). The breweries making this transition successfully understand that their unfair advantage isn’t just brewing expertise, it’s their ability to navigate complex regulatory environments and build community relationships. Cities that can streamline approval processes for these hybrid businesses will capture the economic benefits while their more cautious neighbors debate moral implications. The lesson applies beyond cannabis: economic development success comes from enabling business innovation, not controlling it.

ECOSINT Signal

RUSSIAN DOOMSDAY RADIO STATION TEACHES CITIES ABOUT COMMUNICATION REDUNDANCY Special Thanks to Susan Katz Keating from Soldier of Fortune Magazine – SOF for alerting me to this one! The mysterious UVB-76 radio station, broadcasting cryptic signals from Russia for over 45 years, offers an unexpected lesson in communication infrastructure resilience that some cities ignore. This “doomsday radio” maintains constant transmission capabilities even during political upheaval, natural disasters, and technological disruption. Meanwhile, some municipal emergency communication systems fail during minor weather events because they rely entirely on commercial networks and internet connectivity. Cities serious about economic development continuity should be asking: Can our emergency services communicate during extended power outages? Do we have backup communication systems that don’t depend on cellular towers or internet infrastructure? How quickly can we coordinate with businesses and residents during infrastructure failures? And if you want to be a high tech manufacturing hub you better make sure you have stable communication redundancy. Do the Russians (maybe humorously and a little diabolically) understand that reliable communication infrastructure is foundational to everything else better than some American cities? Economic development depends on businesses trusting that local infrastructure will support their operations during crisis situations, yet some communities have communication systems more fragile than a Cold War-era radio station. ECOSINT – Economic Open Source Intelligence

Red River Flavor

HOLMES COUNTY MISSISSIPPI TOPS OBESITY RANKINGS WHILE CITIES IGNORE FOOD SYSTEM ECONOMICS Holmes County, Mississippi holds the dubious distinction of being America’s fattest place, with obesity rates exceeding 50 percent of the adult population, revealing how local food systems directly impact economic development and quality of life in ways most cities refuse to acknowledge. The county’s struggle with food access and health outcomes creates a vicious cycle: poor health leads to reduced workforce productivity, higher healthcare costs, and decreased business attraction, which further limits healthy food options and economic opportunities. Government needs to stop treating food policy as a social issue and start recognizing it as core infrastructure. Communities with limited grocery stores, farmers markets, and healthy food options struggle to attract and retain the educated workforce that drives modern economic growth. The data is clear: regions with better food access correlate with higher per capita incomes, lower healthcare costs, and more successful business recruitment. Yet most economic development strategies completely ignore food system infrastructure while spending millions on industrial parks and tax incentives. Holmes County’s challenge should serve as a wake-up call for communities that think economic development and public health are separate policy areas. www.redriverspices.com

The Music Cities

DISNEY LAYOFFS HIGHLIGHT WHY CITIES NEED DIVERSIFIED CREATIVE ECONOMIES BEYOND ENTERTAINMENT GIANTS Disney’s decision to lay off hundreds of employees in film and television operations demonstrates why cities banking on entertainment industry giants are setting themselves up for economic disappointment. While Disney cuts jobs, smart cities are building diverse music ecosystems that create sustainable creative economies independent of corporate entertainment decisions (some cities are also ignoring the music ecosystems they already have – you know who you are). The music industry offers more resilient economic development opportunities because it’s inherently decentralized and community-based. Cities like Nashville, Austin, West Hollywood, and even smaller markets like Muscle Shoals have built thriving music economies around local venues, recording studios, and artist support networks rather than relying on major studio operations. The key is creating infrastructure that supports independent artists and small music businesses: affordable rehearsal spaces, recording facilities, live music venues, and business incubation programs specifically designed for creative entrepreneurs. Unlike film and television production that can relocate anywhere, live music scenes are rooted in local communities and generate ongoing economic activity through venues, festivals, tourism, and related businesses. Cities watching Disney layoffs should be asking: How can we build a creative economy that doesn’t depend on corporate entertainment decisions? What infrastructure do local musicians and music businesses actually need to thrive? www.themusiccities.com

Space Economy Signal

NASA BOEING DELAYS CREATE OPPORTUNITY FOR CITIES TO RETHINK SPACE INDUSTRY POSITIONING NASA’s decision to delay the next Boeing Starliner flight highlights the space industry’s shift toward diversified suppliers and distributed manufacturing, creating unexpected opportunities for cities willing to think beyond traditional aerospace hubs. While Boeing struggles with technical problems, SpaceX continues reliable operations, and dozens of smaller space companies are expanding rapidly. This industry transformation means cities no longer need to compete directly with Houston or Cape Canaveral to participate in space economy growth. The key is identifying specific supply chain niches where local manufacturers can contribute to space missions: precision machining, electronics testing, specialized materials, or software development. Cities with existing advanced manufacturing capabilities should be mapping how their current industrial base could support space industry needs rather than trying to attract entire aerospace companies. The Boeing delays also demonstrate why diversification matters: communities dependent on single contractors face economic volatility when technical problems arise. Smart cities are building relationships with multiple space companies and focusing on capabilities that serve the entire industry rather than betting on individual corporate success stories.

Purple Cow of the Day

GEORGETOWN CANAL TRANSFORMATION PROVES ABANDONED INFRASTRUCTURE CAN DRIVE TOURISM ECONOMICS The C&O Canal near Washington DC has undergone a remarkable transformation from abandoned industrial waterway to thriving recreational destination, generating millions in tourism revenue and demonstrating how cities can turn infrastructure liabilities into economic assets. The canal’s restoration created a 184-mile trail system that attracts over 4 million visitors annually, supporting local businesses and property values throughout Maryland and West Virginia. This success story offers inspiration for communities sitting on defunct industrial infrastructure: old rail lines, abandoned factories, unused ports, and forgotten transportation corridors. The key insight is that recreational infrastructure can generate more sustainable economic activity than attempts to restore original industrial uses. Georgetown’s approach focused on connecting the canal to existing tourism assets rather than treating it as an isolated project. Cities with abandoned infrastructure should ask: What recreational or cultural uses could transform our defunct industrial assets? How can we connect restored infrastructure to existing economic drivers? What partnerships with state and federal agencies could help fund transformation projects? The canal’s success proves that yesterday’s industrial decline can become tomorrow’s economic development opportunity with the right vision and execution. Purple Cows of the Day at BusinessFlare

About Street Economics Daily

Street Economics Daily cuts through noise, jargon, and bureaucracy to deliver sharp, actionable insights for civic and economic development professionals. Blunt, irreverent, and grounded firmly in reality, it’s essential daily reading for city leaders who refuse to settle for outdated strategies.

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