Faith Moldan

Voters went to the polls starting last week to decide on city ordinance 22-05 and resolution 61-05, both of which pertain to Lowe’s. If passed, the ordinance would establish a fund to further city goals of financially investing in projects which attract large retail enterprises. These enterprises may further accomplish the city’s economic development goals. These goals include improving the physical and economic environments of Brookings and including new construction and revitalization. Requests for funding will go through City Manager Alan Lanning, and the city council. The resolution, on the other hand, would allow the city to take control of the old K-Mart and Big “O” Tire property, and handle any transactions and changes to it. Under the resolution, the city has the right to sell the property to industrial development corporations for economic development purposes and transfer the properties to the Brookings Economic Development Corporation so they can transfer it to Lowe’s Home Centers, Inc. The city’s spending for the property cannot exceed $2,500,000. Lowe’s will get the property for $618,000 or less. The city will also pay for any demolition, preparation and development of the property up to $250,000, with Lowe’s paying any additional costs.This interaction between Lowe’s and the city first occurred when Lanning sent letters to retailers describing Brookings and the benefits of locating their business in town. Lowe’s responded and did their own research, but found that the area did not meet the numbers they were looking for. After Lowe’s asked for incentive packages, the city developed and proposed a plan.Lowe’s, which has been in business for more than 59 years, ranked 43 on the FORTUNE 500 list in 2005 and operates more than 1,125 stores in 49 states, according to its Web site. In 2004, Lowe’s, based in Mooresville, N.C., recorded sales of $36.5 billion. It is the second-largest home improvement retailer in the world. Political Science Club Vice President Derek Meyers questioned whether or not, “such a large corporation really needs assistance from the city to get off the ground.”Citizens Against Retail Subsidies (CARS) is just one side of the story, which began in June. According to Gary Aguiar, a political science professor, the Brookings City Council knew about the issue months before it was publicly released. Once it was brought public, the issue was decided upon by the council quickly – within a month’s time.One point that CARS makes against the subsidization is the high cost of the property. According to their Web site, the average price per square foot for the four most recent sales of large commercial buildings in town was $3.08. The old K-Mart and Big “O” Tires properties have a combined square footage of 497,019. That number multiplied by the average cost per square foot equals out to $1,530,818, much less than the $3.1 million the city is paying.”This is money we can’t borrow for anything else,” Aguiar said. “There’s no obligations or requirements for Lowe’s.”Councilman Mike Bartley prefers to call the $3.1 million price tag an investment.”It’s the type of store that the money will be able to be paid back in six or seven years,” he said. “The money (sales tax revenue) from it will be used for projects such as the Boys & Girls Club, city department needs, Brookings Humane Society Building, and new 911 equipment.”Patrick Query, a member of the political science club, agrees with Bartley. At the club’s Sept. 15 meeting, he said, “I see the economic benefits outweighing the cost. There will be more money coming into and staying in Brookings.”CARS is concerned about the lack of guarantee from Lowe’s that they will be in Brookings in five years. They question why the development on the east side of Brookings is being subsidized when it has enough traffic and options, while the downtown and west side need more support. They feel that those who need the most support are the “local merchants”. According to the CARS Web site, “These ‘local merchants’ are our friends and neighbors, the vital lifeblood of the community; they are tax-paying citizens who have created that precious tax revenue. They are our future, not some faceless mega-corporation who will take its profits out of the community.”Not all of the “local merchants” are opposed to Lowe’s coming to Brookings, according to Bartley, who has spoken with some local business owners who welcome the idea of the new business because it will bring more shoppers to town.”It’s an issue of growth, not fairness,” Bartley said. “Consumers today want choices.”With Lowe’s in town, Bartley said he feels that Brookings will become a destination just as Sioux Falls is for many area people. Alex Brown, a member of the political science club, questioned the value of Lowe’s to college students.”College students aren’t going to buy lumber. They want entertainment and clothing. That’s what they’re not getting here,” he said.Lowe’s opening in Brookings will bring employment opportunities for students, as many as 40 part-time positions and some management positions.Bartley and other supporters think other businesses will want to open shop in Brookings as well. Bartley said other prospective businesses have been in contact with the city, and developers are looking into the area as well. If by the end of the vote, Sept. 27, the issue is voted down Bartley said that the city will be done with Lowe’s. The corporation won’t come to Brookings, but rather shift to the next town on their list.

#1.885024:2710810102.jpg:lowes01.jpg:If the Lowe´s subsidization is passed, this is a look at what could be. The former K-Mart and Big “O” Tires buildings would be converted into a new Lowe´s store on the east end of 6th Street.:Amber Armstrong/Ty Carlson