First, I have no axe
to grind about Menards. They have been an Indy 500 sponsor during the “stock
block” Buick engine cars, and I am a car guy, so, I like Menards.
Let’s try to wade into this without getting too wet.
Paducah needs jobs to grow--I get that. But we need to grow sustainable wage jobs,
and if I am going to spend city dollars, then I choose to bring higher wage
jobs. We simply do not have the luxury
of an unlimited amount of incentive dollars to spread around.
There is a lot of discussion about T.I.F. (tax increment
financing) being used to get a Menards.
Here is what I think is the key to using T.I.F. from my study on the
Kentucky League of Cities website. “But
for” is the key in my mind. Meaning that
the project would not exist “but for” this type of financing. T.I.F. must meet one of several thresholds,
all based around redeveloping an economically deprived area. Hence the “but for.” I cannot make a case for the mall area as being
an economically deprived area. I just
can’t.
Just so you know, when Lowes, Walmart, and Home Depot came
to the mall area they built the access roads leading to their stores as part of
their commitment to Paducah, not the other way around.
Then there is the “moral hazard” of incentivizing one retail
chain over others. Sort of like picking
winners and losers. I can’t justify this. And let’s be deadly honest. Will the addition of these new stores bring in
additional business or will business simply be taken from the existing businesses? My guess is there will be some additional business,
but they will be much redistribution of the business already here. But again, we will have given a competitive
advantage to one group over others.
My business sense is that if a national retail chain wants
to have a presence in the tri-state area, then they will build stores in Cape,
Marion-Carbondale, and Paducah. My bet
is that they will come here, to Paducah, incentive or not. My business sense also is that some business
people want to extract every nickel out of the deal to fatten their balance
sheet. I just don’t want it to be our
nickel.
Well, those are my thoughts on this deal. I’m doing the best I can for all of us.
It's this type of thoughtfulness that gives me such great hope that our city will thrive where so many other places have dwindled.
ReplyDeleteThese businesses choose us because of the demographics that support their proposed investment in our community. If they honorably expect that they will succeed in our community then they will invest in our community...
We don't have to woo them... We are already where they want to be!
Paducah needs exports, not another retail chain extracting local money. This is not to say we should be against the creation of a Menards, but as the commissioner has said, tax money is better spent elsewhere.
ReplyDeleteI appreciate your hard work!
ReplyDeleteI agree with you completely. I do not want to see our tax dollars spent on another retail outlet.
ReplyDeleteI trust the Mayor and Commissioners to do the very best for all of us. Keep up the great work
ReplyDeleteSo wasting taxpayer money on the pile of rocks in the river or a dying downtown is a better return on investment, than building a new retail development?
ReplyDeleteso mr rhodes what is the city going to do. another three million to comeplete the rockpile. then ten illion to redo the old big e parking lot. money the city doesnt have. you all have had this grant since 2007. in that time owensboro has built a new riverfront and two hotels and a convention center. paducah has got nothing done. i know its hopeless far u as ur the only one on commisiion with any economic sense. the deck is stacked against you with the mayor and her two buddies carol gault, sandra wilson and also mr. abraham. i think the hotel will be a boondoggle. it is located five blocks from downtown in a commercial area with no decent sidewalks or lighting. the hotel will over look a vacant lot far years. also the convention center is the only one in area without a kitchen. madisonville, hopkinsville and owensboro have one.
ReplyDeletei thought it foolish far the city to spend 295000 far al lot on 6th street . thats like four blocks from the convention center. why didnt they build it in one corner of the convention center. that way a short walk and save 295000. it isnt used far anything else anyway
ReplyDeleteI commend you on voting no. Your only one with any sense.the city picks and chooses who they help.I'm sure Sandra Wilson behind this since I imagine the co is a,member of the chamber of commerce
ReplyDelete