Lakewood, CO Wal-Mart deal proves costly to budget

[Democrats_win]

http://www.rockymountainnews.com/drmn/local/article/0,1299,DRMN_15_3675587,00.html

--snip
Revelation comes as city looks into cuts in services, sales-tax increase

LAKEWOOD - Voters likely will be asked to approve a sales tax increase to fix budget problems made worse by a deal the city used to lure a new Wal-Mart.

When the city took its case for urban renewal powers to citizens in 1997, voters were assured that tax- incentive subsidies would not eat into existing revenues.

Now that has happened, and voters likely will be asked to approve an increase in the city's 34-year-old 2 percent sales tax.

City Manager Mike Rock on Monday detailed $12.5 million in city services that might be cut over two years if there isn't a tax increase.

Documents obtained by the Rocky Mountain News show the city is losing what Rock conceded is "hundreds of thousands" a year through a deal brokered to persuade Wal-Mart to build a larger store in Lakewood.
----

IMHO, Lakewood was in good shape, they had two new shopping malls, Colorado Mills and Belmar, their older malls have been redeveloped and the old Wal-Mart was doing ok.

Then Wal-Mart wanted a location at one of the busiest intersections in Colorado. Now the citizens of Lakewood will pay for Wal-Mart's profits.

[napi21]

1. Then the voters should say NO!

I've hear this happening in many of the places where WM opens stores...expecially Super Stores. Not only do the abatements hurt the Gov't treasury, but the tax $$ dissapear from all the small stores WM puts out of business!

The local gov't and WM created the shortfall, so let THEM fix it together!!!

[Democrats_win]

3. I hear that. Lakewood has a lot of old repubs, they won't like this.

I look for the city council to answer for this also. The poorer people in Lakewood will suffer though.

[politicat]

4. It would be an interesting precedent if the city would sue walmart for

lost revenues. There might be a case....

[napi21]

5. I can't see a case for the City suing WM and winning.

These abatements are always negotiated, and agreed to, in writing. IT's not WM's fault the City negotiators gave away the the city's $$. Unless the City can prove WM lied or misrepresented a material matter during the negotiations, the City can't win.

[China_cat]

6. Maybe the city wouldn't win

but they could keep WM tied up and paying lawyers for a long time.

[napi21]

7. True, but it would also cost the city in legal fees.

I wouldn't worry too much about WM being inundated by legal costs. I worked for several co's that were much smaller than WM, and someone's always suing for something.

The better way to inflict harm is by destroying WM's reputation as a "good Co". The stories that are being publicized are true, and every time a town or city refuses to let them build another store, it hurts much worse than one small city filing suit with little or no hope of winning.

The stories are hurting! If they weren't, you wouldn't see WM spending so much $$ in TV ads and media quotes about how they're going to fight back!

[politicat]

2. And Lafayette, up in the North, is thinking of doing the same thing.

I am so disgusted with the Mayor up here, even though he's a Dem. He allowed Albertson's to build a new building, giving them a tax break to do so, so now we have a huge, empty supermarket building.

Now he's doing the same with Walmart. So we'll have two big empty buildings, and the satellite shops in the same complex are not doing well at all. And we'll have two big boxes that are getting a tax break, that they didn't have before, so revenues are down.

It's not like Walmart and Albertson's were going to close up shop and leave if they didn't get new buildings. Now we're stuck with these old elephants.

I could kick Chris Berry for this.

[Democrats_win]

8. I've heard that Wal-Mart got a "sweet" deal from Lafayette.

[politicat]

10. Pretty much, yeah.

They've had a hell of a time getting a foothold in Boulder County at all, just in Longmont and Lafayette.

I'm really, really, really glad we're not living there anymore. They're going to make such a mess out of the city....

I'm really disappointed that the County Commissioners (who also need to sign off on this) didn't complain more.

[Democrats_win]

9. Some companies refuse tax breaks because they want to support

the town and the schools where they, their employees and customers live. Wal-Mart is selfish.