In Silicon Valley, the original home of high-tech, the welcome mat to take up residence in some cities is being yanked from dot-com businesses, according to a "San Jose Mercury News" report.

Already this month, Redwood City and San Mateo have launched 45-day moratoriums that restrict "Internet-based businesses" from building, leasing or renovating certain space, with nearby cities Menlo Park and San Carlos planning similar curbs.

The reason? Residents and city officials say these high-tech firms are contributing to quality-of-life problems, such as lack of housing and parking spaces.

In addition, these businesses whose sales are online, and not in-person, are reportedly hindering downtown shopping and contributing nothing in sales tax revenues to their home city.

And while highly paid tech workers are being praised for adding foot traffic and sandwich sales to sleepier downtowns, city officials say their employers' ability to far outbid other renters is having a perverse impact on the economy by squeezing out blue-collar, low-tech businesses.

However, dot-com defenders argue high-tech companies are actually improving neighborhoods in need of face-lifts, with typically chic and modern buildings and workers that spend money locally.

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-- Ben Koot (ben@travelcompass.net), September 26, 2000