Can Social Media Help Cities Fight the Economic Downturn?

Can Social Media Help Cities Fight the Economic Downturn?

Social media and the public sector is a topic that I find interesting, and have noticed some trends here in my neck of the woods – Orange County, California – which include cities posting traffic updates regarding closures, improvements and accidents on their twitter pages, along with announcements of interest to the community, such as council meetings and civic events.

I read an article in Mashable not long ago about how different cities are using social media to help combat the economic downturn – 5 Way Cities Are Using Social Media to Reverse Economic Downturn. What I found most interesting is that it is the local economic development agencies within cities that are the primary users of social media to attract companies and stimulate local economies.

Here in Orange County, some of the cities are creating stimulus measures such as waiving fees and loosening restrictions to try to help revitalize the private sector.

The city of Buena Park is donating an acre of land and returning $50 million in future sales tax proceeds to the developer planning a retail, office and hotel project.

In Garden Grove, the city agreed to pay a developer $42 million to help with financing when the 600-room resort and water park is open.

San Juan Capistrano has cut development fees by 75% to attract auto dealers and hotels.

Santa Ana has deferred fees for projects citywide, and relaxed lease requirements for One Broadway Plaza, which will be the city’s tallest building.

In order to keep Best Buy from closing its Westminster store, the city agreed to a sales tax rebate.

Another grass-roots initiative is the “3/50 Project” which encourages consumers to shop local and support local businesses and communities. Local businesses have signed up for free fliers, and 3/50’s Facebook page now has 71,098 “Likes” (including me). According to a story in the Orange County Register, local retailers’ opinion of the success of the program “ranges from none to some, with those regularly reminding shoppers about the importance of shopping locally faring best.”

I think the trend of localized efforts to stimulate the economy will continue to grow throughout 2011, and look forward to a widespread turnaround.