Something is going on in Biloxi, Mississippi! It is about the only construction activity of note I have seen on the road trip so far! Concrete trucks are driving around town heading somewhere with their full loads. There is an open air mall that is in the process of opening. Most stores are open and a few more appear to be on the way. Along US Highway 90 that parallels the ocean there are shuttered buildings and plenty of lots for sale. There are some buildings that are boarded up and in a state of disrepair. These are from Katrina, five years ago. One casino, with a start of the above ground structure, has suspended construction – for two years now.
It is definitely a mixed bag for the area. That’s the good news. The bad news is that they are virtually all government-funded projects. There is little to no private money. Other areas of the country on this trip are not so fortunate and would be happy to have a mixed bag like the Biloxi area. The other parts of the country are not seeing any effect from public works money.
With all of this public money, I found out it is coming from two fronts. The first is FEMA money for the Katrina repair/relief effort. The second is the stimulus funding. After all, there are plenty of federal facilities in the area. It makes you wonder just why the private projects are not out there taking advantage of the “bargain basement” contractor pricing structures.
The stimulus spending doesn’t appear to be generating any secondary effects. Private projects are languishing in Biloxi, just like the rest of the country. There is no progress on the vacant lots and boarded up buildings. The local word is it is because of the insurance companies not paying on the policies (flood versus storm). Regardless of the insurance coverage or lack of coverage, the economics of success must be present before a project starts. The economics are not there for private projects in Biloxi. Look at the casino that hasn’t been able to go forward for two years. Look at the small businesses that are not rebuilding, such as the hotels and tourist facilities.
It seems that the federal stimulus “recovery” is not so much a recovery as a spending package without any long-lasting or trickle down impact on the economy.
