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.

Comments:
reminds me of the infamous elephant ear debacle of 1997.
 
We got a Bass Pro here in Oklahoma City a few years ago. Local economy should be taking off any day now.
 
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