BA Fails At Luring Retailers

[sgrizzle]

From: http://baledger.com/news/article_3b097e70-54d7-11e0-837f-001cc4c03286.html

The City Council unanimously approved Tuesday an agreement that would pay out economic incentives to Dick's Sporting Goods if the chain builds a Broken Arrow location, according to city staff notes.

The city would pay as much as $900,000 in "project-related development incentives" to the chain through money from the Broken Arrow Economic Development Authority, according to the agreement.

It the city would pay Dick's Sporting Goods 1.5 percent of the store's yearly sales - up to $90,000 - within 90 days of the store's opening anniversary. The city also would pay the store on each anniversary for 10 years but has capped the payments at $900,000, according to the agreement.

For the record, they are currently building one at Tulsa Hills and another one at 71st & Mingo with the City of Tulsa not giving up anything.

[ZYX]

But why would they build one in BA when there will be two in Tulsa? Sorry BA.

I'm huge fan of Dick's Sporting Goods coming to Tulsa, I love their stores and they frequently offer good prices. But, I think the market would be a bit oversaturated with three in the area.

[heironymouspasparagus]

BA's got Bass Pro Shops.  Why would they need that??

[sgrizzle]

BA's got Bass Pro Shops.  Why would they need that??

They want a sporting goods store people actually shop at.

[Teatownclown]

But why would they build one in BA when there will be two in Tulsa? Sorry BA.

I'm huge fan of Dick's Sporting Goods coming to Tulsa, I love their stores and they frequently offer good prices. But, I think the market would be a bit oversaturated with three in the area.

You don't understand the retail bankruptcy "game".....this board is stuffed and there will be fallout. It won't be Dick's, least not for 10 years. Go back to 1995 and look at who has come and gone. It's all a bankruptcy safety net game except for the few too big to fail that have gawd and their cuntry on their side.

edit: Grizz...the city did not give up anything this time around but they have in the past in order to facilitate development. Some lender/owner gave up 3 million to entice them into 71st and Mingo. I'm certain sacrifices were made in BA....

[heironymouspasparagus]

I guess you haven't actually been to the Bass Pro shops??

If it were my store, I would like to see more, but having stood in line many times, not sure I'm convinced they are hurting any.

[Hoss]

I guess you haven't actually been to the Bass Pro shops??

If it were my store, I would like to see more, but having stood in line many times, not sure I'm convinced they are hurting any.

My first time in about four years was this past weekend, as I needed to get supplies to maintain a new gun.

It feels a little like a fair, but without the loudass carnies.

[rdj]

Wasn't Tulsa Hills a TIF district?  If so, then yes Tulsa gave an incentive.

[Teatownclown]

Wasn't Tulsa Hills a TIF district?  If so, then yes Tulsa gave an incentive.

Yes. But it was indirect as opposed to tenant improvement dough the retailer pays back in rent IF they don't go tits up. BA will no doubt slip them money both under the table and as "incentive".

Don't think Bass is immune from future problems. There are several chains that have them in their cross hairs. It could be a real shoot out.

[heironymouspasparagus]

Bass Pro is definitely getting some competition, and that is a very good thing.  Can only help customers.  Have been to a couple Cabela's and they aren't bad.  Little one in Wichita, but stopped at one in Minnesota that was pretty big (can't remember town...maybe it was Iowa?)

[EricGarcia]

I personally feel BA didn't quite fail since they managed to get the first Dick's announcement in the state of Oklahoma.  Broken Arrow has had more success in the last few years getting retailers than in the past.  Supposedly, there are more retail projects in the works around the city. 

[sgrizzle]

I personally feel BA didn't quite fail since they managed to get the first Dick's announcement in the state of Oklahoma.  Broken Arrow has had more success in the last few years getting retailers than in the past.  Supposedly, there are more retail projects in the works around the city. 

Theoretically, they will all open around the same time. Not sure it is worth $900,000 for the pleasure of announcing a couple of weeks early.

[EricGarcia]

Theoretically, they will all open around the same time. Not sure it is worth $900,000 for the pleasure of announcing a couple of weeks early.

It is a performance incentive, meaning the max the city will pay back is $900,000 (over 10 years).  The city is paying 1.5% of the yearly sales, up to $90,000/year.  If sales exceed expectations, the city will not pay more than the $90,000/yr.  If sales are lower, the city will pay less than the $90,000.  Without Dick's in BA, the city would lose even more sales tax to Tulsa. With Dick's, the city will gain 1.5 cents/dollar spent more than they are now. It is a win-win and Tulsa still gets two stores, so Tulsa still wins in these tough economic times.   

[Teatownclown]

Where are all the two faced crying "socialism"? 

[AquaMan]

What a business plan. Screw potential profits, matching demographics, site location studies....take the best bribe and force the plan to fit. But, its for the greater good. It feels dirty doesn't it?