[Spam] Re: [Vision2020] Shopping Center Plans Filed forPullman-Moscow Highway Site

Jeff Harkins jeffh at moscow.com
Mon Jan 9 12:34:40 PST 2006


Hi Phil,

I appreciate the intensity and emotion of your 
position.  I'll leave the issue of tariffs and 
duties on import goods to the US government - but 
I do recognize that there are many reasons why such strategies are in place.

But I can't let your post "nobody can compete with Walmart" stand unchallenged.

Walmart faces significant competition - Target, 
Fred Meyer, Shopko, Costco, Sears, Circuit City, 
Home Depot, Lowe's, Safeway, Albertson's, Winn 
Dixie, Office Depot, Staples to name a few.

And any retail entrepreneur can find a way to 
compete with Walmart - they just need to find a 
product or commodity line that can be exploited 
in a local market, make the appropriate 
investment, carefully select the specific 
products and develop the appropriate marketing 
plan.  Happens all the time - not easy, but it 
works.  Competition is a tough game - but it is 
an effective way of getting scarce resources to their "highest valued" uses.

As to the ability of our existing businesses to 
compete - the moves by Tri-State, Moscow Building 
Supply, Spence Hardware and JJ Building Supply to 
affiliate with national hardware distribution 
systems (e.g., Ace, Best, True Value) are an 
example of how such business can avail themselves 
of low cost, large quantity discounts.

I guess you would have to discuss the "two stores 
model"  with Walmart corporate strategists to 
know why they think two stores is the best way 
for them to proceed.  But it does seem rather 
clear that they have identified two markets.  And 
there are significant differences in the two 
markets (Moscow vs Pullman).  Pullman does appear 
to have awakened to the realities of the need for 
growth and economic development to support their 
infrastructure and planned infrastructure.

Anyway, thanks for the post.

At 10:22 AM 1/9/2006, you wrote:
>Jeff - Do you know why the US Government puts 
>tariffs on products and farm goods? It is so the 
>average person can compete. Right now today, 
>nobody, I mean nobody can compete with Walmart. 
>They buy things cheaper and sell things cheaper 
>to the public at a cheaper price than any 
>business in Moscow and Pullman can even buy the 
>product for, from a vendor. So, by your 
>statement below, you confirm my statement that 
>downtown Moscow and Pullman will have their 
>heads handed to them. Especially with their 
>strategy of two stores. That is to kill us off faster.
>
>Phil
>
>
>
>-------Original Message-------
>
>From: <mailto:jeffh at moscow.com>Jeff Harkins
>Date: 01/08/06 22:01:46
>To: <mailto:vision2020 at moscow.com>vision2020 at moscow.com
>Subject: [Spam] Re: [Vision2020] Shopping Center 
>Plans Filed forPullman-Moscow Highway Site
>
>Mark,
>
>No, it is not a fault or flaw at all - I presume 
>that some of the current "WalMart" traffic, 
>potential Lowe's traffic, and other new 
>businesses potential traffic (located in 
>corridor) will shop in Moscow.  But given the 
>success of the existing Walmart, I am pretty 
>confident that, given a 5% comparative advantage 
>on groceries not taxed in WA, a substantial 
>number of shoppers will wander across the 
>border.  I suspect Walmart knows that as well, as does Lowe's, et al.
>
>Rational shoppers will be guided by value and 
>price.  Loyalty is an expensive 
>commodity.  Nothing wrong with it, but it is 
>expensive.  Those that want to shop at "local 
>businesses" should do so.  Those that don't want 
>to pay higher prices, should not be denied that op.
>
>Rational shoppers know that their most important 
>vote is voting with their dollars.  Successful businesses know that as well.
>
>At 09:56 AM 1/8/2006, you wrote:
>Jeff,
>
>I imagine if we try hard enough we'll eventually 
>find something else we can agree on as well. A 
>fault in your argument re losing sales if 
>Walmart or any other business closes is the 
>assumption that the foregone sales simply 
>disappear instead of being found in increased sales at another local business.
>
>Mark
>
>At 9:46 AM -0800 1/8/06, Jeff Harkins wrote:
>Mark,
>
>Granted - it is a slippery slope - but the 
>impact back to local taxpayers is immediate - 
>the loss in sales tax distribution for the 
>County doesn't result in reduced budgeted 
>expenditures for the County - it results in an 
>immediate increase in the property tax burden 
>for Latah and Moscow property owners.
>
>Add to that - if the Moscow WalMart (or any 
>other business) closes and is replaced by 
>businesses located in Whitman County (or 
>Pullman) our tax base is reduced and the 
>remaining property owners pick up that loss.
>
>Bottom line - any loss of tax revenue in Latah 
>County will be shifted to another tax revenue source - usually property tax.
>
>Should we lobby for a local option sales tax - 
>absolutely - and that is something you and I 
>appear to be in absolute agreement on!
>
>Hard to believe huh!
>
>
>  At 08:56 AM 1/8/2006, you wrote:
>Jeff,
>
>Using the latest numbers available (FY2004), 
>Moscow's general fund (which does not include 
>water, sewer, solid waste income streams) 
>received a whopping 3.9% of its income from 
>sales tax distribution. Sure, pennies are 
>pennies and they all add up but to hold out 
>increasing sales tax revenues as a panacea for 
>local government financial woes is not an 
>argument I would like to stand behind. Until the 
>Legislature gives voters a local option sales 
>tax as a revenue source, the sales tax is a 
>state income source with a bone thrown to local government.
>
>Mark
>
>At 12:26 AM -0800 1/8/06, Jeff Harkins wrote:
>Mark,
>
>The tax code in Idaho is complicated and so it 
>is not surprising that many are confused about how the dollars get allocated.
>
>Please refer 
>to 
>http://www3.state.id.us/cgi-bin/newidst?sctid=630360038.K 
>where the allocation of the state sales tax is described.
>
>At a minimum, counties and cities receive about 
>14% of sales tax collected.  Distribution to 
>specific counties and cities is usually based on 
>the proportion of state population and/or 
>proportion of assessed value.  While the 
>distribution formula should probably be based on 
>sales generated, the use of population and 
>assessed value probably tracks retail sales pretty closely.
>
>Here is an excerpt from the State Tax Commission 
>on the revenue sharing program:
>
>Tax Revenue Sharing
>In fiscal year (FY) 2004, 11.50 percent of 
>Idaho’s sales tax revenue was distributed to local
>governments based on the state’s temporary 6 
>percent sales tax rate. About 3.24 percent of Idaho’s
>total sales tax revenue was distributed directly 
>to cities. Half of this amount was distributed according
>to population, and the other half was based on 
>the market value of property within each city.
>Another 3.24 percent of the sales tax revenue 
>was distributed directly to the counties. Each county
>received a guaranteed annual amount of $30,000. 
>The rest was distributed according to population.
>In addition, 4.13 percent of the sales tax was 
>distributed to counties, eligible cities, and nonschool
>taxing districts according to a complex formula 
>based on amounts received in 1999, current
>population (for cities and counties), and 
>current property taxes (for other eligible nonschool taxing
>districts). For more information on the formulas 
>used for the distribution, contact the Idaho State Tax
>Commission.
>Also, eligible taxing districts received $13.4 
>million annually in quarterly distributions from state
>sales tax revenues to replace property tax on 
>agricultural equipment that was exempted from property
>tax by legislation in 2001. And, small amounts 
>of lottery withholding and estate tax were distributed
>to eligible counties.
>Distributions were made after the end of each 
>quarter, so the FY 2003 fourth quarter portion of these
>totals was distributed in July 2004.
>
>So - bottom line Mark - if the pie is smaller, we get less pie!
>
>
>At 05:53 PM 1/7/2006, you wrote:
>The day that sales tax revenues stay where they 
>were collected you might have an argument. But they don't.
>
>Mark Solomon
>
>At 1:26 PM -0800 1/7/06, Jeff Harkins wrote:
>And the sales tax revenue lost????
>
>At 12:56 PM 1/7/2006, you wrote:
>Do we have ESP, or what, Tom??? *laughing*
>
>Wal-Mart should go out there on the highway if they
>insist on being here. A Wal-Mart Superstore in Idaho
>is not fair to those who work there. Drive a few more
>miles to Washington, For discussion sake, let's say
>$2.00 more an hour minium wage. So.... $16.00 more
>dollars a day. That $80.00 more a week per FTE?
>$320.00 more a month, for a 40 hour employee, not bad.
>Not bad at all.
>
>Idaho residents working in Washington still pay Idaho
>state taxes.
>
>One store, in the middle of both cities, is better
>than 2, ten miles apart.
>
>The current site for a Super-store is not acceptable
>to me.
>
>Janesta Carcich
>
>--- Tom Hansen <thansen at moscow.com> wrote:
>  >From today's (January 7, 2006) Moscow-Pullman Daily
>  News -
>----------------------------------------------------------------------------
>  -----------------------------------------------
>
>
>
>  Shopping Center Plans filed for Pullman-Moscow
>  Highway Site
>
>
>
>  Application includes a Lowe's home improvement store
>
>  Staff report
>
>
>
>  Tow months of rumors an speculation about the
>  possible development of a
>  shopping center on the Pullman-Moscow Highway are
>  confirmed with the
>  application from a Boise developer to build one on
>  the site.
>
>
>
>  Whitman County Engineer Mark Storey said Hawkins
>  Companies submitted an
>  application for a conditional-use permit and filed
>  an environmental
>  checklist required under Washington's State
>  Environmental Policy Act.  The
>  application was filed Wednesday.
>
>
>
>  Speculation started in late October when a sign
>  appeared on the site near
>  the Idaho border announcing plans for development of
>  a shopping center.  The
>  sign disappeared two weeks later.
>
>
>
>  The company's website displays plans for a complex
>  just west of the Idaho
>  state line.  The design includes three large retail
>  stores, one of which has
>  been earmarked for a 135,000 square-foot Lowe's home
>  improvement center.
>  The plans also include space for eight smaller
>  retails stores ranging from
>  20,000 to 30,000 square feet and eight smaller "pad"
>  areas.
>
>
>
>  Lowe's declined to comment on a possible store in
>  the Pullman-Moscow area,
>  although a company representative did say the home
>  improvement chain plans
>  to expand throughout the United states in 2006.
>
>
>
>  Storey is reviewing the application and said it will
>  take between two and
>  two-and-a-half months for the application to move to
>  a public hearing before
>  the Board of Adjustment.
>
>
>
>  Representatives of Hawkins Companies have not
>  responded to requests for
>  interviews.
>----------------------------------------------------------------------------
>  -----------------------------------------------
>
>
>
>  Anybody taking odds on how this will affect
>  WalMart's application for a
>  super center?
>
>
>
>  Take care, Moscow.
>
>
>
>  Tom Hansen
>
>  Moscow, Idaho
>
>
>
>  ***********************************
>  Work like you don't need the money.
>  Love like you've never been hurt.
>  Dance like nobody's watching.
>
>  - Author Unknown
>  ***********************************
>
>
>
>  >
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