Tuesday, May 30, 2006
Retail isn't economic development.
July 14, 2005, 11:32PM
Pols won't seize land, just clients
By RICK CASEY
Copyright 2005 Houston Chronicle
Texas politicians, Democrat and Republican, tripped over each other in their eagerness to make Texas safe from last month's U.S. Supreme Court ruling allowing the use of eminent domain for economic development projects.
How terrible, they harrumphed, that a governmental body could use its power of eminent domain to take property from one individual or business so it could be used by another business!
In less than three weeks — lightning speed for state government — the governor authorized the Legislature to take up the issue in special session and both houses produced bills protecting landowners from having their property seized for use by private companies.
Unless, of course, that private company is the Dallas Cowboys. This is, after all, Texas.
But while the governor and his buddies are protecting us from land grabs for private companies, they're showering certain favored companies with our money.
Take the Cabela's outdoors store that opened last week in Buda, a small town just south of Austin. Please.
The Nebraska-based former catalogue store went public a few years ago and started building stores all over the country. Following in the footsteps of Missouri-based Bass Pro Shops, it created shops that look like theme parks, called them tourist draws and snookered public officials to grant tens of millions in tax breaks and subsidies.
They call it "economic development."
The tax subsidies, breaks and incentives total more than $60 million, according to documents obtained by the Austin American-Statesmen. (Is there more? Cabela's sued Attorney General Greg Abbott to try to keep the newspaper from obtaining some documents.)
The town of Buda and Hays County expect to pitch in as much as $40 million, mainly for infrastructure, $4.5 million in county sales taxes will go back into the project, the state will pay $20 million for road enhancements, and the governor's Texas Enterprise Fund will kick in several hundred thousand dollars.
Showing no restraint, Buda will turn its water tower into an advertisement for the store and pay toward some billboards as well. And the Texas Fish and Wildlife Commission is delivering Guadalupe bass for the store's 60,000-gallon aquarium.
Nebraska special session?
We Texans aren't alone. The governor of Nebraska is considering calling a special session for the sole purpose of passing state subsidies for a Cabela's store.
And a town in Ohio three years ago considered exercising eminent domain to move a couple of recalcitrant landowners out of the way for a Cabela's store. The store was built without such a land seizure, but not without subsidies.
So what's the matter with this? Simple. Retail isn't economic development.
Economic development is about creating wealth. Retail is about disposing of wealth.
That doesn't make retail unimportant. We want to buy nice things with the wealth we create.
And retail does provide jobs, but only as many jobs as wealth created elsewhere will support.
Cabela's and the politicians they have snowed argue that the Buda store will attract hordes of tourists, and that creates jobs.
I don't know how many people will travel farther than, say, 100 miles for a fancy outdoors store, but consider this:
The state is also subsidizing a new Cabela's in Fort Worth. Nobody from north of Fort Worth will drive past it to get to Buda.
There's a big, extravagant Bass Pro Shop in Katy (built with tax subsidies), so nobody east of Houston needs go to Buda.
And Bass Pro Shop is planning a megastore in San Antonio, just 70 miles south of Buda.
Interestingly, developers several years ago approached San Antonio officials seeking tax breaks, saying they needed them to attract a Bass Pro Shop. They were told the city policy was to not give tax breaks to retail stores.
Their reasoning was simple. They had just seen a close-in suburban town give big breaks to Target, which opened a new super store — and closed down two older stores within San Antonio city limits. The new store didn't create jobs. It simply moved them.
Bass Pro apparently decided it could make money in San Antonio without tax money.
One of those speaking against subsidies for Bass Pro was, not surprisingly, Katy-based Academy Sporting Goods. Its owner, Arthur Gochman, understands that a new sporting goods store, no matter how fancy, doesn't create new buyers. It takes them from other sporting goods stores.
"I don't mind competing," he said. "I just want a level field."
The politicians, with their subsidies, aren't taking his property from him. Just some of his customers.
"Economic development" in Texas, it seems, is subsidizing Nebraska and Missouri companies at the expense of Texas companies.
You can write to Rick Casey at P.O. Box 4260, Houston, TX 77210, or e-mail him at rick.casey@chron.com.
Tuesday, May 16, 2006
Cabela’s commitment questioned
Letter to the Editor
Star News
November 9, 2005
Cabela’s commitment questioned
I was recently involved in a local fund-raising event in which Cabela’s was asked for a donation. We were turned down so I made a few phone calls and was assured by their corporate offices a donation would be sent in time for our event. It never showed up which was discouraging, but then they did have every right not to donate.
After my experience with them, I am just wondering how vested Cabela’s really is in our community, especially after reading in the Star News about the tax breaks they are receiving and their desire to sell off some of the land they currently own. They seem to be getting a pretty good deal, so what is the community getting in return?
Not taxes, that’s for sure. We currently have numerous businesses in the community that I see throughout the year being thanked in the local newspaper for their various donations that are not receiving the tax breaks Cabela’s negotiated to get. Granted, maybe Cabela’s is just more smart about the deals they make before they come into a community, but I would hope that a major company such as themselves are supporting at least in some way the community in which they now have a store in.
Thank you to all the businesses in our community who do support local events and are showing a vested interest in our area. I’m sure not every business can help every event, but it is encouraging to see that they do help out when they can.
- Jodi Fero, Otsego
Thursday, May 04, 2006
HOOKSETT, NH, TO VOTE ON CORPORATE WELFARE FOR CABELAS MAY 9TH
Monday, May 01, 2006
SAY NO TO OUTDOORS RETAIL SUBSIDIES HELPS WAKE UP NEBRASKA
Lincoln Journal-Star
04-23-2006
Cabela's supporters, detractors speak out
DICK PIERSOL LINCOLN JOURNAL STAR (Copyright 2006) LINCOLN; NE; USA
Cabela's, the outdoor outfitter from Sidney, is getting all kinds of attention for the publicly paid incentive deals it's been cutting, or trying to cut, with local and state governments.
All kinds. Some of the attention is admiring, even covetous, and some of it is pretty rough.
Somebody who calls himself Matt Larson (he could not be reached to talk about it)has been displaying news articles from a variety of media outlets at the Web site sayno2outdoorsretailsubsidies.blogspot.com.
The site describes itself as: "a public forum to (1) oppose taxpayer subsidies for development in the outdoors retail industry, (2) expose the abuse of corporate welfare by Bass Pro and Cabela's, and (3) encourage state and local governments to resist extortionate demands for retailer handouts."
The posts criticize or describe opposition to the financial rewards cities and states are offering Cabela's for installing "destination" stores, the kind with lots of mounted wildlife dioramas, aquariums and what seems like acres of gear. Cabela's rival Bass Pro Shops gets some of the harsh words, too, but most of the criticism is directed toward Cabela's deals.
To a request for comment on the blog site, Cabela's responded: "We believe that when communities partner with us, and offer (tax increment financing) or other financing to help bring a Cabela's to their community, they are making a wise investment in their future," said James Powell, retail spokesman for Cabela's. "Communities have benefited greatly from the millions in new tax revenues, massively- increased visitor traffic and hundreds of new jobs we bring with our stores that wouldn't exist otherwise. Virtually every one of our stores has proven an economic boon for the community and has spurred additional economic development around our store."
So far as we can tell from watching the police blotters, Cabela's hasn't made any "extortionate demands."
It doesn't have to. There seem to be at least as many people trying to give Cabela's a place to camp as there are trying to prevent Cabela's being subsidized.
For example, read opinions like that published April 16 in the Olympia, Wash., Olympian newspaper. Its editorializer practically demanded $9.9 million of that state's $49.5 million in grant funds for next year to be devoted to a development that would include a Cabela's for Lacey, Wash.
As the Olympian opined:"For an upfront investment of $9.9 million, the state can create hundreds of jobs, entice millions of tourists and recoup its investment in sales tax revenue many times over in the first year of Cabela's operation.
"That's a grand slam." The traffic that will be heading through Lacey to the next Olympic Winter Games in Vancouver has Olympia residents in a lather to collect their share of shekels.
The editorial acknowledged some opposition comes from those against growth, period.
"Other detractors might say the government has no business subsidizing private development.
"They're wrong," the Olympian said. "It's the role of government to put the infrastructure in place to accommodate growth. That's precisely the plan here."
A search of news archives also turned up this recent gem from the Manchester, N.H., Union Leader, which is neither. The dateline is legit, honest:
"HOOKSETT - Despite criticism the proposed tax district for outdoor sports retailer Cabela's is too large and may attract commercial projects in residential and conservation areas, councilors opted to keep it as is for the May vote.
"The town is pursuing the 354-acre district at town meeting to entice Cabela's into building a magnet store on Route 3A near the Interstate 93 Exit 11 tollbooth. The tax increment financing district's $18 million for water, sewer and road repairs in addition to a litany of other infrastructure improvements will be decided May 9."
To the point, Cabela's is being cussed and discussed all over the nation, more than ever, all the time.
Even internationally. Reporting on an outdoor political caucus starting up in Canada, the Edmonton Sun mentioned a counterpart in the United States, the Congressional Sportsmen's Caucus, co-chaired by U.S. Sen. Ben Nelson, D-Neb., who described the caucus to the Sun as a "network of political leaders and allies of the outdoors that can quickly take action when hunting, fishing or conservation are threatened."
The Sun reports the caucus and its causes have the financial backing of a lobby organization called the Congressional Sportsmen's Foundation, including Cabela's, Bass Pro Shops and Wal-Mart.
We may have no towns named Hooksett, but there has been some maneuvering in Nebraska to create a class of shopping and entertainment districts in which state sales tax money could be diverted from the state treasury to the development of sites for companies such as Cabela's, which now has a deal to build its third Nebraska store in La Vista. Cabela's has no direct subsidies from the state or local governments in that case, Powell said,
A bill to create a special kind of tourism entertainment district died this year when the Legislature adjourned, sine die.
Elsewhere, there is, in Mr. Larson's opinion, too much of governments offering Cabela's, or its rival, Bass Pro, tax abatements and other goodies in exchange for what anxious officeholders and promoters hope will be a lucrative tourist attraction.
In fact, Cabela's plan for retail expansion over the past couple of years, described in its federal securities filings, was based in part on the assumption those governments will make attractive offers.
Despite the death of a bill this month to allow incentives for Cabela's in Kentucky, the Bowling Green Daily News reported that businessman David Garvin said he's optimistic lawmakers can still offer incentives for tourism destinations to locate in that state before next year's state General Assembly.
Garvin is the founder of Camping World, a 40-year-old chain that describes itself as the world's biggest supplier of recreational vehicle accessories and camping equipment. According to the Daily News, he has been negotiating for months to bring a Cabela's megastore to his proposed 965-acre complex in Franklin, Ky., known simply as "Garvin's."
"Although he said he's not well-versed in legislative strategy, Garvin thinks lawmakers can make Kentucky attractive to the company," the newspaper reported.
Something between the lines here suggests Garvin may know what he's talking about.
"Our political leaders will find out something to do," Garvin was quoted saying. "If we wait till next year, Cabela's could possibly be long gone before then."
Sure enough, on Thursday last week, the Franklin Favorite online edition reported people talking up a special session of the assembly to create ways to attract Cabela's.
Reach Richard Piersol at 473-7241 or at dpiersol@journalstar.com.
04-23-2006
Cabela's supporters, detractors speak out
DICK PIERSOL LINCOLN JOURNAL STAR (Copyright 2006) LINCOLN; NE; USA
Cabela's, the outdoor outfitter from Sidney, is getting all kinds of attention for the publicly paid incentive deals it's been cutting, or trying to cut, with local and state governments.
All kinds. Some of the attention is admiring, even covetous, and some of it is pretty rough.
Somebody who calls himself Matt Larson (he could not be reached to talk about it)has been displaying news articles from a variety of media outlets at the Web site sayno2outdoorsretailsubsidies.blogspot.com.
The site describes itself as: "a public forum to (1) oppose taxpayer subsidies for development in the outdoors retail industry, (2) expose the abuse of corporate welfare by Bass Pro and Cabela's, and (3) encourage state and local governments to resist extortionate demands for retailer handouts."
The posts criticize or describe opposition to the financial rewards cities and states are offering Cabela's for installing "destination" stores, the kind with lots of mounted wildlife dioramas, aquariums and what seems like acres of gear. Cabela's rival Bass Pro Shops gets some of the harsh words, too, but most of the criticism is directed toward Cabela's deals.
To a request for comment on the blog site, Cabela's responded: "We believe that when communities partner with us, and offer (tax increment financing) or other financing to help bring a Cabela's to their community, they are making a wise investment in their future," said James Powell, retail spokesman for Cabela's. "Communities have benefited greatly from the millions in new tax revenues, massively- increased visitor traffic and hundreds of new jobs we bring with our stores that wouldn't exist otherwise. Virtually every one of our stores has proven an economic boon for the community and has spurred additional economic development around our store."
So far as we can tell from watching the police blotters, Cabela's hasn't made any "extortionate demands."
It doesn't have to. There seem to be at least as many people trying to give Cabela's a place to camp as there are trying to prevent Cabela's being subsidized.
For example, read opinions like that published April 16 in the Olympia, Wash., Olympian newspaper. Its editorializer practically demanded $9.9 million of that state's $49.5 million in grant funds for next year to be devoted to a development that would include a Cabela's for Lacey, Wash.
As the Olympian opined:"For an upfront investment of $9.9 million, the state can create hundreds of jobs, entice millions of tourists and recoup its investment in sales tax revenue many times over in the first year of Cabela's operation.
"That's a grand slam." The traffic that will be heading through Lacey to the next Olympic Winter Games in Vancouver has Olympia residents in a lather to collect their share of shekels.
The editorial acknowledged some opposition comes from those against growth, period.
"Other detractors might say the government has no business subsidizing private development.
"They're wrong," the Olympian said. "It's the role of government to put the infrastructure in place to accommodate growth. That's precisely the plan here."
A search of news archives also turned up this recent gem from the Manchester, N.H., Union Leader, which is neither. The dateline is legit, honest:
"HOOKSETT - Despite criticism the proposed tax district for outdoor sports retailer Cabela's is too large and may attract commercial projects in residential and conservation areas, councilors opted to keep it as is for the May vote.
"The town is pursuing the 354-acre district at town meeting to entice Cabela's into building a magnet store on Route 3A near the Interstate 93 Exit 11 tollbooth. The tax increment financing district's $18 million for water, sewer and road repairs in addition to a litany of other infrastructure improvements will be decided May 9."
To the point, Cabela's is being cussed and discussed all over the nation, more than ever, all the time.
Even internationally. Reporting on an outdoor political caucus starting up in Canada, the Edmonton Sun mentioned a counterpart in the United States, the Congressional Sportsmen's Caucus, co-chaired by U.S. Sen. Ben Nelson, D-Neb., who described the caucus to the Sun as a "network of political leaders and allies of the outdoors that can quickly take action when hunting, fishing or conservation are threatened."
The Sun reports the caucus and its causes have the financial backing of a lobby organization called the Congressional Sportsmen's Foundation, including Cabela's, Bass Pro Shops and Wal-Mart.
We may have no towns named Hooksett, but there has been some maneuvering in Nebraska to create a class of shopping and entertainment districts in which state sales tax money could be diverted from the state treasury to the development of sites for companies such as Cabela's, which now has a deal to build its third Nebraska store in La Vista. Cabela's has no direct subsidies from the state or local governments in that case, Powell said,
A bill to create a special kind of tourism entertainment district died this year when the Legislature adjourned, sine die.
Elsewhere, there is, in Mr. Larson's opinion, too much of governments offering Cabela's, or its rival, Bass Pro, tax abatements and other goodies in exchange for what anxious officeholders and promoters hope will be a lucrative tourist attraction.
In fact, Cabela's plan for retail expansion over the past couple of years, described in its federal securities filings, was based in part on the assumption those governments will make attractive offers.
Despite the death of a bill this month to allow incentives for Cabela's in Kentucky, the Bowling Green Daily News reported that businessman David Garvin said he's optimistic lawmakers can still offer incentives for tourism destinations to locate in that state before next year's state General Assembly.
Garvin is the founder of Camping World, a 40-year-old chain that describes itself as the world's biggest supplier of recreational vehicle accessories and camping equipment. According to the Daily News, he has been negotiating for months to bring a Cabela's megastore to his proposed 965-acre complex in Franklin, Ky., known simply as "Garvin's."
"Although he said he's not well-versed in legislative strategy, Garvin thinks lawmakers can make Kentucky attractive to the company," the newspaper reported.
Something between the lines here suggests Garvin may know what he's talking about.
"Our political leaders will find out something to do," Garvin was quoted saying. "If we wait till next year, Cabela's could possibly be long gone before then."
Sure enough, on Thursday last week, the Franklin Favorite online edition reported people talking up a special session of the assembly to create ways to attract Cabela's.
Reach Richard Piersol at 473-7241 or at dpiersol@journalstar.com.
