CONTACTS: Buzz Davis, 608-239-5354 (C), dbuzzdavis@aol.com Stoughton, Alder Michael Engelberberg, 608-444-5990 (C) smwmikee@yahoo.com Stoughton Alder Tim Swadley, 608-235-0824 swadley@starkhomes.com
Tuesday, Jan. 28th, at 7 PM in the Stoughton City Council Chambers the Council will be asked to review and approve an agreement with the developer of a SuperCenter on the city’s west side. The agreement will include a subsidy of over $5.1 million to the developer which will then likely enable the developer to give WalMart a lower price on the farmland.
The city has conducted no professional and independent economic and tax revenue impact study on the impact of a SuperCenter and adjacent businesses upon the present Downtown and other retail businesses in Stoughton, Oregon, McFarland, Evansville and Edgerton. These are the communities that the SuperCenter will draw customers from. Thus they are the communities which will lose substantial retail sales. Average SuperCenter grosses $1.42 million per week or $74 million per year.
Stoughton Alder Mike Engelberger said, “There are other smarter ways for us to utilize our tax resources such as subsidizing redevelopment and infill development in our Downtown. We can also continue developing industrial and business parks that may bring good paying jobs to our community. The Kettle West developer, the major tenant and the other commercial tenants have not been dealing straight up with our citizens. The major tenant Wal-Mart just came forward 13 days ago. In my opinion the damage was already done by not being upfront with us on who we were dealing with until they “got what they wanted.” We still do not know who the other tenants are. That is no way to deal with our citizens in secrecy and behind closed doors.
Second, I am not interested in subsidizing a corporation worth 450 billion dollars. Wal-Mart does this all over the world. In this case they are coming to our small town of 12,600 residents and demanding that we pony up about 5 million dollars or they will go elsewhere. That is extortion in my book and probably one of the reasons that they are worth 450 billion dollars. Our citizens should not be used as pawns in a game to increase their corporate profits.
Third, I am not interested in subsidizing corporations who bring mainly minimum wage jobs and the safety problems associated to our community along with the low income problems that always follow. In addition Stoughtonites already spoke several years ago about not wanting Wal-Mart on a larger scale. So what do they do? They try to get it done under the table in secrecy. I am not faulting any city official or staff for this. These are tactics used by Wal-Mart and it is just another reason to deny them taxpayer funding. These are just a few of the reasons I oppose subsidies to this development.”
Alder and local business owner Tim Swadley explained, “There is little evidence to suggest the daily needs are NOT currently being met by area businesses. I have argued that without knowing who the tenants will be, we won’t know if the needs will be met. The Mayor advocates that this development will keep us from driving elsewhere to do our shopping. There is no proof.
Hundreds of business owners in the 5 city area impacted by the proposed WalMart SuperCenter work hard to serve their communities as retailers. Many have mortgaged homes and drained life savings to finance and operate their small business.
This proposal puts current businesses on an unlevel playing field. I question the wisdom of the City borrowing over $6 million from a bond issue then giving over $5.1 million of that taxpayer money to subsidize a developer and three retailers – to the detriment of another large group of 400 or more retailers in the Stoughton, Oregon, Evansville, Edgerton, Cambridge and McFarland area.”
Community activist, former alder and planning commission member, Buzz Davis explained there is an online electronic petition that merchants and business owners can sign protesting the city’s actions at: http://www.ipetitions.com/petition/merchants-oppose-5-million-subsidy
“We will also create an online petition for citizens to speak out against this massive example of corporate welfare. This will cost each Stoughton family about $1,000 in property taxes.
Davis said, “A group of us have tried to slow down or stop this city steam roller to give away $5.1 million in tax dollars to a couple of developers and WalMart. This development is being built on farmland and wetlands. The developer has a business plan where the numbers don’t work. Both the developer and the city say the project will NOT work without a massive taxpayer subsidy. If that is so, the project should not be done.
We have a number of Stoughton developers who built large subdivisions. City ordinances require the developers to pay all the costs of the streets, walks, curbs, gutter, water, sewer, storm water management, electricity and street lights. Their projects have worked.
Now we have a guy blast into town and who says, Have I got a deal for you! He has an unworkable business plan. He wants us to give him $5.1 million in tax dollars to make his project work. We’re not dumb and we can’t afford it. If the developer goes belly up, taxpayers are left holding the bag for paying off 20 to 27 years of city bonds. We can’t fix the roads we have today. Our schools are nearly broke.
The mayor says our citizens want to make this corporate welfare gift to the developer and WalMart. But NO public hearings have been conducted. We think she is wrong.
We are calling upon citizens to come to a press conference at 6:15 PM Tuesday night Jan. 28 in the fire station at 381 E. Main and then attend the 7 PM council meeting at 321 S. 4th St. and speak their piece for 3 minutes during the open comment period.
We demand:
o The agreement between the city and developer be TABLED,
o That an impartial and professional IMPACT STUDY on the SuperCenter’s economic and property tax revenues and city services impacts,
o That PUBLIC HEARINGS on the impact study conclusions be conducted and
o That all work on the development project be PUT ON HOLD until citizens, businessperson and city officials know what is going on and have their input into the decision making.”
