SAY NO TO OUTDOORS RETAIL SUBSIDIES

http://www.dailyherald.com/opinion/fencepost.asp

Subsidies for big box will not pay off

Re: your coverage of Hoffman Estates’ proposed subsidy of at least $17 million for a Cabela’s store, this would be a poor “catch.” Cabela’s, the nation’s largest outdoor sporting goods purveyor, sells most of its goods via catalog. But it’s now on a store-building binge. Cabela’s specializes in huge stores – some more than 200,000 square feet. Featuring taxidermy and aquariums, they’re touted as tourist “destinations” that attract millions of shoppers per year. But don’t be fooled by the numbers. This proposed deal – like most big-box deals– is a lousy catch. It won’t create many good jobs. And the store’s ability to draw out-of-state sales tax dollars will wane as Cabela’s saturates more markets.

As well, much of the property tax revenue it would generate won’t fund public services. Under “tax increment financing” or TIF, when a property is redeveloped, the property tax assessment goes up so the property tax bill goes up. The increase, or “tax increment,” gets diverted to subsidize the store instead of supporting schools, police, fire, and other public services. If the store boosts regional growth, those costs will greatly increase — guess who will foot the bills?

A Cabela’s would also mean millions more car trips in the region, more air pollution and traffic congestion. It’s also likely to harm competing area retailers, many of which have long-standing roots in their neighborhoods. For this, taxpayers in 12 communities across the country are already subsidizing Cabela’s for more than $300 million!

Taxpayer subsidies cannot create more spending on outdoor sporting goods – and therefore more jobs and tax revenue. We don’t have more money to spend on fishing rods just because we have more places to buy them. Hoffman Estates should let this “catch” get away – and live better to tell the story!

Greg LeRoy
Executive Director
Good Jobs First
Washington, D.C.