Tuesday, December 13, 2005
Council prodded to oppose incentives for Cabela's, NW Indiana Times. October 11, 2005
Council prodded to oppose incentives for Cabela's
Gander Mountain developer objects to city helping its competitor
BY ANDREA HOLECEK
holecek@nwitimes.com
219.933.3316
Oppidan, a Minnesota-based investment company that builds and develops Gander Mountain stores, is trying to convince Hammond City Council members not to grant tax incentives to outdoor retail giant Cabela's.
On Friday, Oppidan sent letters and packets of information prepared by Ewald Consulting to city councilmen asking them to say "no" to subsidies for the proposed 150,000-to-250,000-square-foot store on the Woodmar County Club site.
"I'm writing you to formally request that you say 'no' to subsidies for Cabela's," Oppidan's Mike T. Ayres states in his letter to council members. "They are a direct competitor of outdoor lifestyle stores, like Gander Mountain, which have already established themselves, and have done so without taxpayer assistance." Ayres said his company paid for the study because "we're sick and tired of these subsidies." "We wanted help to fight these battles across the country," Ayres said Monday. "I think it will work. In Washington County (Wisconsin), it's already delayed the final vote to approve the structure providing the subsidies.
"City, states and counties are being sold on the fact that Cabela's and Bass Pro Shops are tourist destinations, but the reality is they could have stores in 50 states, which would change that," he said. "We believe we should all compete in the open market. Let us all duke it out in the free market."
The packets put together by from Ewald, a government relations and association management firm based in Minneapolis/St. Paul, Minn., include studies on the negative effects of government subsidies to business and news stories on past and current Cabela's developments.
Among the conclusions of its study are that "incentives to lure retail into a community often do harm to business already located in the area." It also contends the promises of increased revenue, jobs and increased economic ability often "are unfilled."
The Gander Mountain store located on an outlot of Hobart's Westfield Shoppingtown Southlake recently was renovated to give it a more modern look, add more merchandise and additional selling space. But its spokesman, Matt Lukens, has refused to comment on whether the renovation was in response to Cabela's possible entry into the Northwest Indiana marketplace.
Monday, Lukens confirmed that Gander Mountain, with its 98 stores, is one of Oppidan's clients.
"They look for properties all over the country for us," he said.
After months of increasingly bountiful offers, the Woodmar County Club members recently agreed to sell the club to Cabela's for $14 million. The fate of the deal hinges on Cabela's Inc. receiving a favorable environmental report, however -- according to its agreement with Woodmar -- it isn't contingent on city's approval of TIF (tax increment financing) subsidies and the state's agreeing to STIF (sales tax increment financing) subsidies to aid developing the 80-acre parcel at Indianapolis Boulevard and Interstate 80-94 into commercial land.
Cabela's spokesman David Draper did not return phones calls placed Monday seeking comment on Oppidan's efforts. He has said in recent months, however, Cabela's will expect incentives or subsidies similar to what it has seen in other areas, but the amount of the subsidies it needs won't be known until the company completes its due diligence on the property and knows what site work and infrastructure improvements are necessary.
Oppidan says in its missive to the council that, although infrastructure improvements are a legitimate use of government funds, "taxpayer funds that promote one retailer over another are inappropriate and inequitable."
It also contends that the retailer's claim to being a draw for millions of tourists can't be sustained as it builds more and more stores.
"....Cabela's is looking to locate stores in the Chicago area, Milwaukee and eastern Michigan and have plans to expand to all 50 states," Ayres says. "Bass Pro is already in the Chicago area among other places, and is also looking to locate in northwestern Indiana. Each store they add diminishes the tourism draw of their other stores."
Weston Sedgwick, spokesman for the Indiana Economic Development Corp., said Cabela's hasn't requested any subsidies yet.
"We have talked to the company, but we can't talk (to the media) about negotiations or exactly what we're talking about with the company because it is highly confidential," he said
Asked whether government subsidies are unfair to other retailers in the same market, Sedgwick said he "wouldn't say that."
"We are currently talking to Cabela's and talking about possible options, but at this time I have nothing new to report," Sedgwick said.
Gander Mountain developer objects to city helping its competitor
BY ANDREA HOLECEK
holecek@nwitimes.com
219.933.3316
Oppidan, a Minnesota-based investment company that builds and develops Gander Mountain stores, is trying to convince Hammond City Council members not to grant tax incentives to outdoor retail giant Cabela's.
On Friday, Oppidan sent letters and packets of information prepared by Ewald Consulting to city councilmen asking them to say "no" to subsidies for the proposed 150,000-to-250,000-square-foot store on the Woodmar County Club site.
"I'm writing you to formally request that you say 'no' to subsidies for Cabela's," Oppidan's Mike T. Ayres states in his letter to council members. "They are a direct competitor of outdoor lifestyle stores, like Gander Mountain, which have already established themselves, and have done so without taxpayer assistance." Ayres said his company paid for the study because "we're sick and tired of these subsidies." "We wanted help to fight these battles across the country," Ayres said Monday. "I think it will work. In Washington County (Wisconsin), it's already delayed the final vote to approve the structure providing the subsidies.
"City, states and counties are being sold on the fact that Cabela's and Bass Pro Shops are tourist destinations, but the reality is they could have stores in 50 states, which would change that," he said. "We believe we should all compete in the open market. Let us all duke it out in the free market."
The packets put together by from Ewald, a government relations and association management firm based in Minneapolis/St. Paul, Minn., include studies on the negative effects of government subsidies to business and news stories on past and current Cabela's developments.
Among the conclusions of its study are that "incentives to lure retail into a community often do harm to business already located in the area." It also contends the promises of increased revenue, jobs and increased economic ability often "are unfilled."
The Gander Mountain store located on an outlot of Hobart's Westfield Shoppingtown Southlake recently was renovated to give it a more modern look, add more merchandise and additional selling space. But its spokesman, Matt Lukens, has refused to comment on whether the renovation was in response to Cabela's possible entry into the Northwest Indiana marketplace.
Monday, Lukens confirmed that Gander Mountain, with its 98 stores, is one of Oppidan's clients.
"They look for properties all over the country for us," he said.
After months of increasingly bountiful offers, the Woodmar County Club members recently agreed to sell the club to Cabela's for $14 million. The fate of the deal hinges on Cabela's Inc. receiving a favorable environmental report, however -- according to its agreement with Woodmar -- it isn't contingent on city's approval of TIF (tax increment financing) subsidies and the state's agreeing to STIF (sales tax increment financing) subsidies to aid developing the 80-acre parcel at Indianapolis Boulevard and Interstate 80-94 into commercial land.
Cabela's spokesman David Draper did not return phones calls placed Monday seeking comment on Oppidan's efforts. He has said in recent months, however, Cabela's will expect incentives or subsidies similar to what it has seen in other areas, but the amount of the subsidies it needs won't be known until the company completes its due diligence on the property and knows what site work and infrastructure improvements are necessary.
Oppidan says in its missive to the council that, although infrastructure improvements are a legitimate use of government funds, "taxpayer funds that promote one retailer over another are inappropriate and inequitable."
It also contends that the retailer's claim to being a draw for millions of tourists can't be sustained as it builds more and more stores.
"....Cabela's is looking to locate stores in the Chicago area, Milwaukee and eastern Michigan and have plans to expand to all 50 states," Ayres says. "Bass Pro is already in the Chicago area among other places, and is also looking to locate in northwestern Indiana. Each store they add diminishes the tourism draw of their other stores."
Weston Sedgwick, spokesman for the Indiana Economic Development Corp., said Cabela's hasn't requested any subsidies yet.
"We have talked to the company, but we can't talk (to the media) about negotiations or exactly what we're talking about with the company because it is highly confidential," he said
Asked whether government subsidies are unfair to other retailers in the same market, Sedgwick said he "wouldn't say that."
"We are currently talking to Cabela's and talking about possible options, but at this time I have nothing new to report," Sedgwick said.
