So why are politicians so willing to subsidize Cabela's or Bass Pro Shops? (Independence: sales)

[Versatile]

Opinions. I am still forming mine.


Why Have So Many Cities and Towns Given Away So Much Money to Bass Pro Shops and Cabela's? - Jobs & Economy - The Atlantic Cities

Art Rolnick, former chief economist for the Minneapolis Federal Reserve Bank, compares small-town efforts to attract these retailers to that of major cities building stadiums and arenas for professional sports teams. Often it is done as a matter of civic pride or for bragging rights rather than as a matter of sound economic policy, he says.

In fact, Ball State economist Hicks studied the economic impact of seven Cabela's stores that opened between 1998 and 2003 and found that despite millions of dollars in economic development incentives given to the retailer, there had been no net gain in jobs detected in the communities one year after the stores opened.

"It’s not like folks suddenly have more money to spend on hip waders once a Cabela's opens up. What generally happens is that instead of buying those hip waders from an independent business, they go to big box store," says Leroy of Good Jobs First.

Both Cabela's and Bass Pro have become extraordinarily adept at getting taxpayers to pay not only for the bricks and mortar of their stores but some esoteric related attractions:

An 18-acre lake – with a waterfall – was paid for with part of the $70.6 million in taxpayer subsidies provided for a Bass pro development in Independence, Missouri.
An indoors cypress swamp will be created in Memphis as part of the $215 million taxpayers are contributing toward the renovation of the Pyramid Arena into a Bass Pro Shop. This includes money the city plans to spend to provide supporting infrastructure for the building.
A boardwalk, a town square and street improvements were part of the $150 million in tax dollars used for a development in Branson, Missouri, where a Bass Pro is the anchor tenant.
Stuffed animals have been purchased with millions of dollars in public funds to adorn numerous Cabela’s stores in communities ranging from Lehi, Utah, to Buda, Texas, to Hamburg, Pennsylvania.

These development deals are not without risks to the communities that enter into them. Bass Pro defaulted on its bonds for its development in Olathe, Kansas. In Independence, Missouri, the city even guaranteed the bonds and Bass Pro defaulted anyway, leaving the city to shell out $3.5 million to cover a payment last year on the project.

[Cali BassMan]

I guess they are looking at all the sales taxes those places will bring to thier economy, along with a possible boom to local restraunts...just a guess though..

[North Beach Person]

For the same reasons localities will grant exemptions/tax credits/highway improvements, etc. to Wal-Mart, Home Depot, Lowe's, Safeway, Wegman's, Whole Foods and so on.

[cyrano]

Because corporate welfare is as old as government itself.

[Arrby]

It is blackmail, pure and simple. A given market area will not suddenly start seeing increases in sales taxes - as was pointed out, the flannel shirt bought at Cabela's is a flannel shirt that is not bought at Harry's Men's Wear. However, a given city may well be affected, or fear they will be. So Independence, Mo. acts, not to gain sales taxes as much as not to lose them if Bass Pro goes to Blue Springs instead. Olathe wants the taxes that otherwise might go to Overland Park. There is no direct gain to the area market, but there is (or at least a reduced loss) to the political subdivision.

Of course, it is worse than you think. The tax breaks and incentives paid to the big box stores are largely paid by an increased burden on property taxes. So not only does Harry's Men's Wear lose sales to Cabela's, the owner now pays higher property taxes as well. Or does so until he goes broke but, hey, that is only four employees and what is that compared to the 200 hired by the big boy? Of course Mike's fly shop closed as well. And Marvin's Outdoor Supplier. And two boat dealerships. And a gun shop. And the shopping center they were in has only the Social Security Office as a tenant, the rest is vacant; and now the property values of that neighborhood have plumeted. So property tax collections are down. But none of this happens at once, and remember the Grand Opening of the new Bass Pro? It was on the news; the entire City Council was there!

How do we stop this? We don't. Those who came before us foresaw just these kind of problems and put provisions guaranteeing "Equal Treatment Under The Law" into our US Constitution, and many state ones. They believed (silly them!) that meant people would live under the same laws which would apply equally. So one person could not get a bunch of landscaping and special tax breaks unless everyone did. Today we are more sophisticated. We understand "nuance". So we realize that "Equal Treatment Under The Law" does not mean, you know, like equal.

Johnny Morris of Bass Pro and the Cabela's and Lowe's and their kind must think we are absolute idiots. They are correct in their analysis.

[STLCityMike]

Originally Posted by Arrby

It is blackmail, pure and simple. A given market area will not suddenly start seeing increases in sales taxes - as was pointed out, the flannel shirt bought at Cabela's is a flannel shirt that is not bought at Harry's Men's Wear. However, a given city may well be affected, or fear they will be. So Independence, Mo. acts, not to gain sales taxes as much as not to lose them if Bass Pro goes to Blue Springs instead. Olathe wants the taxes that otherwise might go to Overland Park. There is no direct gain to the area market, but there is (or at least a reduced loss) to the political subdivision.

Of course, it is worse than you think. The tax breaks and incentives paid to the big box stores are largely paid by an increased burden on property taxes. So not only does Harry's Men's Wear lose sales to Cabela's, the owner now pays higher property taxes as well. Or does so until he goes broke but, hey, that is only four employees and what is that compared to the 200 hired by the big boy? Of course Mike's fly shop closed as well. And Marvin's Outdoor Supplier. And two boat dealerships. And a gun shop. And the shopping center they were in has only the Social Security Office as a tenant, the rest is vacant; and now the property values of that neighborhood have plumeted. So property tax collections are down. But none of this happens at once, and remember the Grand Opening of the new Bass Pro? It was on the news; the entire City Council was there!

How do we stop this? We don't. Those who came before us foresaw just these kind of problems and put provisions guaranteeing "Equal Treatment Under The Law" into our US Constitution, and many state ones. They believed (silly them!) that meant people would live under the same laws which would apply equally. So one person could not get a bunch of landscaping and special tax breaks unless everyone did. Today we are more sophisticated. We understand "nuance". So we realize that "Equal Treatment Under The Law" does not mean, you know, like equal.

Johnny Morris of Bass Pro and the Cabela's and Lowe's and their kind must think we are absolute idiots. They are correct in their analysis.

A very well spoked post. Politics has never really been an interest of mine, but as I get older, I realize things more and more that I don't like - the use of our taxes or the way in which goverment elects to fund itself ... what I haven't learned is what I can do about it