A Job Stimulus Program that Costs the Government Nothing

by Todd Leff, CEO of Hand and Stone

The other day I was listening to a radio broadcast discussing whether the billions we spent on the stimulus program actually created any meaningful jobs. The pundits were discussing how we could spend more to create jobs. The irony is that Hand and Stone has been trying to create jobs these past several months and has run into the job creation obstacle known as “local government regulation.”

Consider our frustration in trying to establish a Hand and Stone in a retail shopping center. After months of finding a location and negotiating a lease, we then face applying for building permits. Our construction is not overly complicated, typically involves 2,500 square feet and is in a retail shopping center. The standard wait time just to get building permits reviewed in many communities is six weeks. With layoffs in local government and some localities (like in California) only working four days a week, it may take two months or more to get building permits approved. Once approved, we can build a spa out in 8 weeks.

Another obstacle unique to our business is that many localities have zoning ordinances that prohibit or require a zoning variance for “massage parlors.” While we try and explain that we are a “day spa,” in some cases we are required to go through a full variance process taking another several weeks or months.

What is the cost of this delay? When we build out a Hand and Stone we employ carpenters, painters, tile setters, electricians – probably 10-15 craftsmen on every site. Once we open, we employ front desk staff, therapists and aestiticians – maybe 15 people when we open. We are waiting on permits for 8 new spas right now. So by my calculation we could be creating jobs for 120 workmen right now and 120 spa staff in 8 weeks if we could get these permits today.

Here’s a solution even if just for the short term. Why don’t local governments use a “fast track” system for approval of plans for retail spaces under 5,000 square feet. Most of those businesses will be owned by small businesspeople and the construction is relatively straight forward. The local authorities should have one week to review an architect’s plans and if not construction may start. We’d speed up the process, create jobs, and get business moving again. If any locality is willing to make this “fast track” commitment, let me know, I’d love to build a Hand and Stone Massage and Facial Spa in your community.