Minimum Wage for SoWal???

[SHELLY]

I think the 30% figure includes all costs for housing, including rent, utilities, renter's insurance, etc. Also remember that this calculation is based on zero income tax.

Shelly, I know you are somewhat kidding, but regarding #3 on your list, please keep in mind the effects of charging $35 for a grouper sandwich. The restaurant will lose many customers to Publix and cooking at home, thereby causing the business to lay off people, and bring in less gross income, eventually closing the business all together.

In a way it I wasn't kidding about the $35 sandwich. Laying off people will be the least of the worries (as decent service workers will remain in high demand from Biloxi to SoWal). The tragedy will be for the business owners losing their livelihood and the visitors having to travel to Destin :shock: or PCB in search of entertainment and a meal. It's the price SoWal now must pay for its rush to gentrification.

 

[SHELLY]

Let's assume two people splitting that rent, or $650 each per month.

If we agree with the previous data, ie that a person's housing should equate to no more than 30% of income.....

We arrive at $2,166 monthly income, $26,000 annual, or about $12-13/hour rate.

TWT,

I can tell you are totally convinced that $12.50 is the magic number that will attract employees to SoWal businesses.

 

[Smiling JOe]

TWT,

I can tell you are totally convinced that $12.50 is the magic number that will attract employees to SoWal businesses.

Shelly, I don't think TWT is at all convinced as such. He has a geniune concern and question. Even if one calculates the wage based on all of the factors mentioned, there are only so many homes to rent at the price I mention, and many more employees needed. Also, not everyone want to rent. Perhaps we should also look at the cost of buying a home in SoWal and looking at wages based on that too.

To clarify, we are not trying to set a minimum wage, but simply trying to find the hourly wage point where people can live and work in SoWal in order to keep services coming and businesses open.

 

[Amp22]

Florida Girl - your profile shows your occupation as low income housing owner - can you give us some specifics to help out the discussion? What is your experience with rents and where are yours located?

 

[Uncle Timmy]

TWT,

I can tell you are totally convinced that $12.50 is the magic number that will attract employees to SoWal businesses.

Nope

Experience in life has taught me there are rarely single solutions to any problem; and for that matter that any problem exists in isolation without influence from other issues.

As I am interested in all these related issues, I am mearly trying to push this discussion along.

And Shelly, when I said FOCUS - I didn't mean on me. I know my avatar is cute and all, and I'm very flattered but it would be better to focus on the issue at hand.

If you disagree with the $12.50/hour figure, present a line of reasoning and facts to push the discussion along.

 

[Smiling JOe]

See post #69. Apparently, I edited it instead of posting a new post. oops!

 

[SHELLY]

I think Joe's numbers are a good start--assuming of course one can find housing in SoWal for $1,000 per month. My guess is that places like that have long since been sold off for a hefty profit.

Settling on a single wage is far too simplistic. There are so many more variables to consider. For example:

Not all employees are waiters who would beef up their wages with tips (they also need house cleaners [tips are expected but rarely received]; food counter workers, clerks, lifeguards, beach chair attendants, reservation staff, security, etc.). The minimum wage will have to be set to draw in the non-tip employees.

Most of the jobs are seasonal and finding roommates and getting long-term leases wouldn't apply.

Rental units in and around a decent driving distance are as rare as rocking horse manure. Going forward one must assume there are some homeowners willing to rent their "investment" to multiple tenants in the 18-to-20 age group [not likely]. Assuming this would happen...when employees are needed most (in the tourist season) home owners who may want to rent at other times of the year will pull their rentals off the market--why get $1200 a month when you can get $1400 a week?

Lots of younger folks [and older folks] have debt obligations (car payments, student loans, tire rims, cell phone bills) and poor credit scores that would not pass muster with landlords who run credit checks before renting.

Most people who go through the time and expense of moving into an area and settle down do so with the intention (and the need) to be employed full-time. Many of SoWal jobs that go begging wouldn't provide the security needed to make people consider such a move.

Finding folks to take summer jobs in the past worked because there was a good mix of various levels of income classes scattered around the panhandle. In Destin and Panama City there were several old mid-long term furnished beach apartments and homes that had no problem housing a bunch of service workers who migrated down from the North to make money during the summer season.

In the last 2-3 years all of that changed. Old motels and apartments were torn down and replaced (or are in the process of being replaced) by high-cost condos. Older rental houses were sold and the new owners have increased rent considerably trying to cover their carrying costs and make a profit. Whole communities of low-mid income families sold out or were priced out of the area. Along with them went an entire group of young family members willing to take low-wage jobs or adults willing to take a part-time weekend job to supplement their low salaries.

When all is said and done, I can't offer up any near-term or quick fix solution--I wish you luck trying. I DO know that $12.50 isn't going to attract the quality and quantity of employees needed to support the tourist season, but throwing money at the problem appears to be the only solution until affordable housing returns to SoWal or a massive migrant worker program is employed. I think SoWal businesses are going to have a tough go of it over the next few tourist seasons until they figure it out and they'd better figure it out soon before all those new condos and housing areas come on line and are filled with folks wanting to be serviced.

 

[SHELLY]

A Focused Article

 

[Smiling JOe]

Shelly, that article is a dead-on mirror of Walton Co. and I am surprised to see that the numbers even correlate. It is a little lengthy compared to most posts but extremely relavant and worthy of a full read. Good job finding and posting it. :clap_1:

 

[Kurt]

A scene repeated again and again.

What does the commissioner expect - for the developer to sell below market value and not make a profit?

"My brother bought a house three years ago in Olympia (a Wellington subdivision) for $330,000. That same house today is selling for $780,000," Palm Beach County Commission Chairman Tony Masilotti said. "Why is that? Profit taking.

"The developer bought that land 10 years ago at $45,000 an acre, and they get two units an acre. So what's different today? Why such a price increase? They're profit-taking."