MPR: Minneapolis tries to jump-start economy

Minneapolis tries to jump-start economy
By Brandt Williams
Minnesota Public Radio
October 5, 2001

RealAudio

Minneapolis, like other cities around the country, is feeling the impact of the September 11th terrorist attacks. Job layoffs, fears over public safety, and shrinking consumer confidence are raising concerns about the city's prospects. Minneapolis law enforcement officials, clergy and business leaders discussed how to use their influence to minimize the local impact of the attacks.

"Going out for dinner is a patriotic act," said Jaye Rykunyk, the financial secretary and treasurer for Local 17 of the Hotel and Restaurant Employees Union.
(MPR Photo/Brandt Williams)

Police Chief Robert Olson and Fire Chief Rocco Forte appealed for public calm and assured forum participants that both agencies have plans to respond to any threat to Minneapolis - including bioterrorism.

Christian, Jewish and Muslim clergy said their role is to provide spiritual healing for those whose wounds reach below the skin.

Representatives from Minneapolis business and labor organizations encouraged city residents to heal the economy by spending money. "Going out for dinner is a patriotic act," said Jaye Rykunyk, the financial secretary and treasurer for Local 17 of the Hotel and Restaurant Employees Union.

Though her remark elicited chuckles from the crowd of nearly 100, she insisted she was serious about the impact the recent economic downturn is having on the hospitality industry. According to her, several hundred airline food-service workers have already been laid off. Rykunyk said she knew of two restaurants located in Minneapolis hotels that have closed and she expects many more workers to lose their jobs in the near future.

Greater Minneapolis Convention and Visitors Association president Greg Ortale says city residents have to be careful not to "talk their way into a depression." And with the holidays approaching, he says people should think twice before calling off special events.

"Those decisions to cancel have human consequences. Because there's a part-time wait staff person who needs that banquet check in order to make a rent payment," Ortale said.

But some participants were optimistic that the city and state's economic downturn will be short-lived.

"The challenges facing Minnesota's economy over the next year are basically cyclical in nature and do not necessarily reflect any fundamental structural defects in our economy," said Sung Won Sohn, chief economist for Wells Fargo Bank.

Sohn says he expects the state's economy to turn around by late next year. However, he predicts conditions will get worse before they get better.

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