to big box - or – not to big box ?. we’re being encouraged to allow large-format chain stores to...
TRANSCRIPT
To Big Box- or –
Not to Big Box?
We’re being encouraged to allow large-format chain stores to make up for declines in sales tax revenues
attributed to streamlined sales tax (SST).
Change from Avg 05-07 to 09
2009 SST Loss or Gain
Other losses/gains (including economy)
SST % of loss
Bellevue (443,721) 5,080 (448,801) Bothell (95,898) 21,141 (117,039) Kirkland (384,630) (13,483) (371,147) 3.5%Lynnwood (391,718) (35,363) (356,355) 9.0%Redmond 36,053 16,211 19,842 Woodinvillle (239,210) (64,926) (174,284) 27.1%
Taxable Retail Sales ($ 000)
Source: Washington Dep’t of Revenue
With a local sales tax of 1.5%, thistranslates to about $1M per yearrevenue decline attributable to SST.
Woodinville’s SST loss in context
Woodinville’s 2008 budget: $21M
2009 revenue decline attributable to SST: $1M
Do we want to sacrifice Woodinville’s character for a 5% budget impact?
What’s the worst-case scenario?We’ve believed there are two defenses against a
Wal-Mart – type store in Woodinville
• Defense #1: Land prices and retail leasing rates in Woodinville are too high for Wal-Mart.
• Defense #2: Woodinville’s redevelopable parcels aren’t big enough for Wal-Mart.
Wal-Mart #2280, Mountain View, CA
Wal-Mart purchased theirMountain View location …
Purchased during dot-com bubble, when Silicon Valley land prices were near their peak.
… at land prices 2x to 3.5x Woodinville’s
Raw land prices
Woodinville CBD $25 to $43/sq. ft.
Mountain View –El Camino Real
$75 to $87/sq. ft.
Conclusion:Woodinville’s real estate prices arenot too high.
But aren’t we’re still protected byWal-Mart’s size requirements? Nope.
10.32 acres
Conclusion:Woodinville’sparcels are nottoo small.
Impacts of large-format chain stores on cities
• Increased traffic congestion• Costs to city greater than revenues to city• Fewer jobs at lower wages: increased poverty• Revenue flight• Oceans of blacktop and reduced walkability• Environmental (storm water) impacts …• Vacancies• Impact on local small businesses
“Big empty box”Bellevue Kmart – one of 284 Kmarts nationwide that closed in 2002
Even the best alternatives don’t generate sales tax revenues
Who gets hurt: Big box as “category killer”
Tools in use nationwide• Store size limits (Bozeman MT, Santa Fe NM, Taos NM,
Ashland OR)
• Economic, community, environmental impact review (Cape Cod MA)
• Restrictions on number, size, or location of “formula” stores (“formula” store has standardized merchandise, features, and/or methods of operation) (Arcata CA, Cannon Beach OR, Port Townsend, WA)
• Review and approval by elected officials or appointed citizen commissions needed for all “formula” stores (San Francisco CA)
Closing question:
Does it improve quality of life in Woodinville to welcome more formula stores of all brands, and to allocate additional downtown acreage to the largest-format chain stores:• Wal-Mart• Target• Fred Meyer• Home Depot• Lowe’s
If not, let’s pass codes so we end up with what we do want.