WI: plan to give Cabela's $4 million to build

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Monkeyleg

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I find it fascinating that cities and towns will try to keep a mom-and-pop gun store from opening, or try to shut it down through zoning appeals, but elected officials have no qualms about the chain stores.

Another example of the Bill of Rights being less important than tax revenue.

Anywho, here's the story from the Milwaukee Journal Sentinel:

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West Bend - Washington County would give Cabela's up to $4 million as an incentive to build a retail store at U.S. Highways 41 and 45 only if state agencies also contributed cash to lure the outdoor gear retailer to the county, under a revised resolution that the County Board is to consider Tuesday.

The board's Finance Committee on Wednesday agreed to forward the resolution authorizing officials to borrow up to $4 million that would help pay for museum-quality displays of North American and African wildlife at the store.

The committee, however, did not recommend approval of the resolution.

"I am not in the business of giving money away," committee Chairman James Esselmann of Trenton said in explaining his opposition to the project.

Supervisor Joan Russell of the City of Hartford questioned why a successful company would request $10 million from state and local governments.

"Why do they need this kind of seed money?" Russell asked.

Supervisor Donald Roskopf of Germantown said he would support the borrowing proposal, even though he had voted against a similar resolution last month.

"Large companies now require partnerships" with municipalities, Roskopf said. "We have to offer incentives or they won't come."

Cabela's has received incentives from other states where it has built stores.

Hoffman Estates, Ill., is offering the company up to $40 million in state and local incentives to locate there.

At a special meeting Tuesday night, the Germantown Village Board adopted a resolution in support of the Cabela's project.

The company wants to build a 165,000-square-foot store with an aquarium, gun library, animal displays and replica mountain on the border of the Towns of Richfield and Polk.

The Richfield and Polk town boards have adopted general resolutions of support.

"I strongly believe this project will be an economic benefit to the county, the state, the region," County Board Chairman Ken Miller of Germantown said at the meeting Wednesday.

"We would be remiss if we didn't get this project in Washington County."

Cabela's has estimated that up to 4 million people would visit its showroom each year.

The company expects to hire 300 employees in the first year.

In August, the board approved giving Cabela's $500,000 from the county's property tax reserve fund to pay for educational programs, such as hunter safety classes, at the facility. But the board fell three votes short of the three-fourths majority needed to approve the original $4 million borrowing resolution.

The Executive Committee last week agreed to forward the new borrowing resolution to the Finance Committee and the full board. The latest proposal requires the support of only a simple majority of supervisors at the meeting Tuesday, County Attorney Kim Nass said.

The reason for the change is that the revised resolution is contingent on state government's becoming a partner in the project, Nass said.

State law allows municipal boards, on a majority vote, to authorize borrowing for so-called regional projects if more than one municipality would benefit.

The state and the county would gain sales tax revenue from the store.

In addition, the value of the building, estimated to cost $70 million to build, would increase property tax collections for the county and towns.
 
Supervisor Joan Russell of the City of Hartford questioned why a successful company would request $10 million from state and local governments.

"Why do they need this kind of seed money?" Russell asked.

Looking at it from Cabela's perspective, if you can get $10 million to help fund construction just by asking, why not ask?
 
As much as I hate the fact that we have way too many laws...

I have to say that there ought to be a law against preferencial tax breaks. Perhaps in conjunction with the Fourteenth Amendment. It is simply unfair for a big corporation to have their taxes waived as an "incentive" to set up shop whereas mom and pop shops do not get tax breaks/construction subsidies.

Perhaps the small businesses in the area should sue for "uncompetitive business practices".

One final thing. It annoys me that the corporate big-wigs get so full of themselves for being "successful" when in reality they were simply handed a monopoly by the government. What is there to be proud of in that? Anyone can make a profit if it is handed to you.
 
I find it fascinating that cities and towns will try to keep a mom-and-pop gun store from opening, or try to shut it down through zoning appeals, but elected officials have no qualms about the chain stores.

Another example of the Bill of Rights being less important than tax revenue.
I don't see anything mentioning eminent domain, or other abuse of the Bill of Rights. Can you clarify your remark?
 
From the article: "In addition, the value of the building, estimated to cost $70 million to build, would increase property tax collections for the county and towns."

In Texas, the typical ad valorem property tax rate is around 2.4%. Cabela''s would thus pay some $168,000 per year for the next umpteen years. Add to that the sales tax take, which for local government runs roughly 1% of Cabela's total sales. You then have the ripple effect of the spending by Cabela's employees plus miscellaneous local-area spending by customers visiting from out of town.

Over a twenty-year period or so, the locals will make out pretty darned good, which is why they consider the up-front bribery.

Art
 
Flyboy, it isn't the issue of tax subsidies to attract new business that bothers me. It's the double standard.

There are only two gun stores in Milwaukee county, a county with a population of roughly one million.

Two stores. The rest were zoned out of existence.

I spend the majority of my time on the phone talking to gun shop owners all over the country, and I've talked to many who've been forced out of business by zoning commissions.

Yet it's these same zoning kings who offer millions of dollars in subsidies to attract the big chain stores.

Art, thanks for using the term "bribery." Because that's all it is.
 
Monkeyleg, pardon my cynicism, but I commonly offer, "Cherchez le moolah," and "Cui bono?" Follow the money, and who benefits?

The independent gunshop doesn't pay nearly as much in ad valorem taxes as the property of a big chain. That's true for mom'n'pop groceries as compared to such as Safeway or Wal-Mart.

Who benefits? At a minimum, the local governments'' coffers. In many instances, check the paper trail as to who's making money, locally, from either the sale of land or from the contracts of the construction. The mayor's cousin? Etc.

That's the dark side of mixing capitalism and government: Any system of any sort can be misused.

Art
 
Monkeyleg said:
I find it fascinating that cities and towns will try to keep a mom-and-pop gun store from opening, or try to shut it down through zoning appeals, but elected officials have no qualms about the chain stores.
.
could it be that mom & pop stores are GUN stores and cabelas is a "sports & recreation" store?
 
How many mom and pop gun shops has West Bend kept from opening? Washington County?

There is only 2 gun shops that I know of in washington county plus a gander mountain. One of the shops is actually in West Bend (well part of west bend called Barton) An intersting note is that the Cabela's will probably hurt Gander the most as it will be located less than 5 miles away.

Other guncentric stuff that resides in Washington County:
-Lee Precision (my neighbor's dad actually works there)
-Krieger Barrels
-JPFO
-Concealed Carry Magazine is published here

There are some non-stocking FFL holders in the county, I've done business with one of them in the past, I found out about him by word of mouth.

I'm kind of torn on the Cabela's issue. It will be built a few miles from my house, which is incredibly nice, I'll probably see my dad more often as he will undoubtedly make frequent pilgrimiges to the store, but I don't want to be the one paying for it and my property taxes are high enough already. Even the SuperWalmarts that everyone hates so much (we have one of those too) pay their own way.
 
In Texas, the typical ad valorem property tax rate is around 2.4%. Cabela''s would thus pay some $168,000 per year for the next umpteen years. Add to that the sales tax take, which for local government runs roughly 1% of Cabela's total sales. You then have the ripple effect of the spending by Cabela's employees plus miscellaneous local-area spending by customers visiting from out of town.

Art pegged this one, our local cabela's has hit the jackpot for county
sales taxes, local politicans are all smiles since cabela's opening. My
only complaint is that at this point it has not lowered property tax for Joe
citizen and if anything taxes have went up.
 
The Cabelas in Dundee is the single largest tourist attraction in the state. I don't have the exact numbers, but I am sure that we are talking about a huge amount of revenue, in terms of property taxes, sales taxes, and employee state income taxes.

I can't say that it is fair, or that I like it, but in MI we are all used to giving huge tax breaks to GM, Ford and Daimler-Chrysler.

could it be that mom & pop stores are GUN stores and cabelas is a "sports & recreation" store?

Possibly, but I am sure if you went into the county government and said that you wanted to build a huge gun store that would employee hundreds of people and bring in millions of dollars into the local economy they would forget any anti-gun feelings.
 
Art (and others): you're 100% correct. And I actually have no problem with local or state government offering tax incentives to businesses. Years back, Wisconsin was one of a handful of states involved in trying to woo Saturn into their locales. Kentucky won out, and there's a lot of Kentuckyan's (sp?) with good jobs now.

My problem lies with the attitude of local governments about gun shops. As I said, Milwaukee is down to just two. There were at least a dozen just a few years back. Once a gun store closes, there's almost zero chance that a zoning board will approve a new gun store in that location.

I guess this post is just my vaulting at windmills. Again.
 
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