(ABOVE: Milwaukee Journal Sentinel photo by Jeffrey Phelps)
What a deal.
Cabela's - notorious for extorting local governments (and taxpayers) where they build stores - will be getting $4 million from Washington County for the favor of building their store there. The county will be taking out a loan at 5.5% to pay the subsidy; it will be in hock until 2023.
Now, understand: This is not $4 million worth of road improvements for around the store location, or $4 million worth of infrastructure enhancements surrounding the Cabela's building, or a deal for property tax abatements that total $4 million.
This is a straight cash payment of the county to a business of four million dollars.
I'm not kidding. And it gets better.
"Well," Mr. Pro-Big Box might say, "a store like Cabela's generates sales tax that the county can use to lower property taxes of its citizens, make county-wide infrastructure improvements, etc."
Wrong. The county has a plan: the tax dollars generated by Cabela's go right back to pay the loan on the extortion fee that the county agreed to. That's right; Cabela's does not contribute sales tax to the county until approximately 2023. Every penny of sales tax generated by Cabela's goes right back into their coffers.
Compounding the punishment inflicted on the county; they eat 5.5% interest on a loan - - almost another million dollars - - because Cabela's wants payment of $4 million immediately.
So, in return the county gets... "temporary
ownership of 18,085 square feet" of the store? For what, exactly? And does the county swallow the property tax on that square footage (if they were due to get any in the first place)?
What a deal.
Cabela's works their magic all over the country. Texas, for example, as reported by Jim Hightower in The Austin Chronicle:
For its part, Cabela's is unabashed about its dependence on corporate
socialism, even declaring in its annual report that grabbing public
money is key to its business plan. But while it thrives on government
giveaways, the retail chain has added a new twist to the game by
demurely declaring that, as a private, for-profit company, its privacy
rights would be violated if details about its public subsidy were
revealed to the public. Thus, Cabela's has sued our state attorney
general, claiming that it would suffer "substantial competitive harm"
if the terms of its deal with the governor were publicly disclosed.
So, class, let's review: A private corporation is funded by the
state to give it a leg up on its local competitors, but it declares
that it must be exempt form the state's public disclosure law in order
to protect its competitive advantage. Are we clear now on the new
definition of "free enterprise"?
It bears repeating that Gander Mountain, which has a store here in Franklin, is actively anti-subsidy. Heck, I'll even link to a conservative website to illustrate the point.
Google "Cabela's" and "extortion," by the way, and you get 1,180 hits. And pray they don't come around here, where the current administration has never met a big box that it doesn't smother with wet, sloppy kisses.
From the Milwaukee Journal Sentinel:
Cabela's payment decided
County to temporarily 'own' part of store
West Bend - Washington
County this spring will fulfill its September 2005 pledge to pay $4
million to Cabela's for building a store in Richfield, county attorney
Kim Nass said.
In return for its subsidy payment, the county will gain temporary
ownership of 18,085 square feet - encompassing the four major wildlife
and fish displays - inside the 165,000-square-foot outdoor gear store,
Nass said.
Documents officially describe the space as a "condominium" unit. The
four displays include the towering conservation mountain with a stream
at the center of the main retail floor, a walk-through freshwater fish
aquarium, North Woods animal museum and an African diorama.
The county received a $4 million loan from the State Trust Fund in
August 2007 to finance the subsidy, but the payment to Cabela's has
been delayed as terms of the agreement continued to be negotiated, Nass
said. A 5.5% interest rate will boost total payments to no more than
$5.97 million.
The loan will be repaid no later than 2023 with county sales tax
dollars generated by retail purchases at Cabela's, finance director
Susan Haag said.
The first loan payment is due in March 2009. Washington County's
ownership of the area inside the store will lapse when the loan is
repaid, in 2023 or earlier.
Since the store opened in September 2006, the county has set aside
the full $370,488 in taxes generated by Cabela's merchandise sales for
the first loan payment, Haag said.
In 2007, the Cabela's store collected $234,262 in sales taxes for
the county, or nearly 2.6% of all county sales tax collections last
year.
Bruce Springsteen: Still speaking truth to power
Milwaukee Journal Sentinel photo by Jim BovinBruce Springsteen didn't play BORN IN THE USA last night at his Milwaukee show.
At least not the "old version." No one in the Bush administration will mistake his devastating update, GYPSY BIKER, for a campaign jingle ala Reagan and BORN.
More on a transcendent show later ...
GYPSY BIKER
The speculators made their money
On the blood you shed
Your Mama's pulled the sheets up off your bed
The profiteers on Jane Street
Sold your shoes and clothes
Ain't nobody talking 'cause everybody knows
We pulled your cycle out of the garage
And polished up the chrome
Our Gypsy biker's comin' home
Sister Mary sits with your colors
Brother John is drunk and gone
This whole town's been rousted
Which side are you on
The favored march up over the hill
In some fools parade
Shoutin' victory for the righteous
But there ain't much here but graves
Ain't nobody talkin'
We're just waitin' on the phone
Our Gypsy biker is comin' home
We rode her into the foothills
Bobby brought the gasoline
We stood 'round her in a circle
As she lit up the ravine
The spring high desert wind
Rushed down on us all the way back home
To the dead it don't matter much
'Bout who's wrong or right
You asked me that question I didn't get it right
You slipped into your darkness
Now all that remains
Is my love for you brother
Lying still and unchanged
To them that threw you away
You ain't nothin' but gone
Our Gypsy biker is comin' home
Now I'm out countin' white lines
Countin' white lines and getting stoned
My Gypsy biker is coming home.
Copyright © 2007 Bruce Springsteen (ASCAP)
Milwaukee Journal-Sentinel review.
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