SAY NO TO OUTDOORS RETAIL SUBSIDIES

Posted on Thu, Apr. 13, 2006

GENERAL ASSEMBLY
Incentive bill for retailer withdrawn by its sponsor
By John Stamper And Ryan Alessi
HERALD-LEADER FRANKFORT BUREAU

FRANKFORT - An economic development incentive program that would have been used to lure a Cabela's sporting goods store to Kentucky was abandoned as the General Assembly ended its 60-day session.

The measure, which had been amended to include a variety of economic development programs, was not called for a vote at the request of its sponsor, House budget committee chairman Harry Moberly, D-Richmond.

Moberly disliked the Cabela's incentive proposal and other initiatives that the Senate tacked on to his bill, which was originally meant to provide matching funds for innovative small businesses that receive federal research grants.

The Cabela's incentive had been criticized by several legislators, who didn't want to see the state reverse a longstanding policy of not offering incentives to lure retail businesses.

After learning of the proposal earlier this week, many boat dealers and sporting goods stores lobbied heavily against the measure, said Ralph Stokley, owner of Stokley's Marine in Nicholasville.

"It's very unfair for the state to be subsidizing retailers that are going to be in competition with local companies," Stokley said. "They will be able to do business at a lower cost than I will."

When Moberly's position became clear yesterday evening, some lawmakers resorted to theatrics in an attempt to change his mind. House Speaker Jody Richards, D-Bowling Green, and Rep. Steve Nunn, R-Glasgow, both dropped to one knee in front of Moberly and jokingly begged "please."

Among other things, the bill would have given tax incentives to a call center company looking to locate next to the community college in Glasgow and to an auto parts manufacturing company near Bowling Green.

Democratic Rep. Rob Wilkey of Scottsville, whose district includes the proposed location for Cabela's along I-65 near Franklin, said the unorthodox push by the House speaker wasn't likely enough to save the bill.

"It's one of those bills where there's something in there everybody loves and there's something in there everybody hates," he said.

Commerce Secretary George Ward was at the Capitol around 8 p.m. to lobby for the bill. His cabinet would have overseen the tax credit for Cabela's.

The bill also contained a provision that would have provided extensive tax credits for an experimental clean coal power plant that the Commerce Cabinet is trying to lure.

Ward said the bill's demise would endanger the Cabela's project. "It appears to me that they go to states that offer them incentives and they don't go to states that don't offer incentives," he said.

The 14-store chain has endured criticism recently for accepting tax breaks from other states worth up to $350 million. Its stores, which feature wildlife taxidermy museums and large aquariums alongside their sporting goods, are considered tourist attractions by some.

The proposed tax break would have allowed allowed Cabela's to recoup 25 percent of the cost to construct, equip and furnish a store about six miles from the Tennessee border.