2008 Woodie Awards
Voters cast ballots on Lowe's subsidy
Faith Moldan
Issue date: 9/20/05 Section: Front Page News
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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.