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Study: City could lose millions on Bass Pro

http://www.timesdaily.com/apps/pbcs.dll/article?AID=/20...rchID=73265064828712

By Todd Twilley
Staff Writer

Last Updated:October 12. 2005 12:44AM
Published: October 12. 2005 3:30AM


Photo caption: This is the Bass Pro Shop in Nashville at Opry Mills. A study suggests that Florence could lose more than $14 million by providing incentives needed to lure Bass Pro Shops to the Shoals. DANIEL GILES/File

A QUICK LOOK

# The issue: The city is examining whether incentives for a Bass Pro Shop would be a beneficial long-term investment.

# What's new: An impact study conducted by UNA professors reveals the city could lose more than $14 million over the next 15 years unless additional development accompanies the project.

# What's next: Mayor Bobby Irons said a new study needs to be conducted that will include potential benefits of other developments near Bass Pro.

(DEAD LINK)http://www.timesdaily.com/html/economic.htm" target="_blank">Click here to read the full economic impact analysis (DEAD LINK)


FLORENCE -- The city could lose more than $14 million by providing incentives needed to lure Bass Pro Shops to the Shoals, based on projections in an economic impact study (Click here to read the full economic impact analysis.). (DEAD LINK)

The study was conducted by three University of North Alabama professors who were asked to review the feasibility of Florence providing incentives of nearly $17.9 million to Bass Pro Shops.

The money would be used to build a 110,000 square-foot facility in Veterans Park. Bass Pro would occupy the building under a lease agreement with the city.

A Veterans Park attraction is part of an economic development project that includes two Robert Trent Jones Golf Trail courses, a four-star quality hotel, and a renovated Renaissance Tower and conference center.

The professors who conducted the feasibility study say factors such as additional retail growth around the Bass Pro facility in Florence or development of other large-scale outdoors stores in the region could affect their projections.

Bass Pro frequently seeks financial support from communities when deciding whether to do business there. Numerous communities have formed partnerships with the business and have reported positive results, in many cases.

The study conducted by the UNA professors implies that the project might not be as productive in the Shoals.

Bass Pro is an upscale outdoors retail store that sells an assortment of merchandise and often comes with a fishing facility, aquarium, waterfalls and other amenities. Bass Pro is considered a tourist attraction in many communities.

"It is unlikely … that sufficient revenue will be generated by the proposed lease arrangement and the increased net sales tax for the city of Florence to adequately service the debt from the incentive package," authors of the study wrote in their final presentation.

UNA professors Jim Couch, Keith Malone and Douglas Barrett conducted the study at the request of the Shoals Economic Development Authority and Florence Mayor Bobby Irons. The study cost $3,000.

SEDA released the study to the TimesDaily on Tuesday in answer to an Alabama public records request.

Irons said he doesn't believe the study covered the scope of the project. He said Bass Pro would not be a stand-alone project.

"We are looking at it from a retail center and retail development," Irons said of the changes in scope.

The study looked only at the chances of Florence recovering its investment from a cash-flow perspective.

If the city paid for Bass Pro's facility, it would have to borrow $17.9 million with an interest rate of 7 percent, according to the study.

After interest and costs associated with securing a bond, the incentive could top $20 million, the study projects.

The study considered the area from which customers could be drawn, the new sales tax revenue the city would receive from the business, and the impact of the 220 potential jobs created by the retailer.

The professors concluded that the potential customer base would be negatively impacted by Bass Pro stores already operating in Nashville and Memphis as well as a facility that is in the works near Birmingham.

They added that another negative involves the limited amount of disposal income available to potential customers in the region.

The study used published sales figures from a Bass Pro Shop that opened in Oklahoma City two years ago. The professors said they adjusted the figures from Oklahoma City to better reflect the market conditions in the Shoals.

The authors said there are several factors that could make the project more or less favorable, especially considering the study period encompasses 15-year projections.

The professors said that additional development spawned by Bass Pro opening in Florence could make the project more feasible economically. They said in an interview Tuesday, however, that the scope of that development would have to result in an additional $14 million in sales tax revenue during the 15-year period.

Irons said that the authors of the study are making a lot of assumptions by saying it would take additional development that creates an additional $14 million in sales tax in order to make the project feasible.

Irons said a private developer had entered the picture since the study was assembled and that the authors of the study didn't have a complete picture of what the developer is planning, if Bass Pro comes to Florence.

The professors said they completed the task they were asked to do by Irons and SEDA Executive Director Forrest Wright. They consider the report complete.

The UNA professors give the tourism marketing of Bass Pro a passing mention in the study, but said in an interview that the tourism impact would not be significant for the Shoals.

"It's the same thing as with the tower. People are not going to come here for a Bass Pro. They may go while they are here but will not come here and stay overnight to go to a Bass Pro," Barrett said.

Todd Twilley can be reached at 740-5728 or todd.twilley@timesdaily.com.
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Shoals: you know THE DOG barks right along with you on this and most other posts you write. After watching and hearing what I could: (while I am on that wonder why Comonopoly Channel 3 couldn't get their audio right for the first third of the meeting?) I KNOW one thing for sure. SOMEONE IS LYING! And I don't think it is the Shoals Enviromental Alliance or Scott Carrier. I wouldn't trust a word Bobby Irons or his cohorts on the council said if they had Bibles stacked up to the ceiling and the Right Reverend Billy Ray Simpson was pouring salvation oil on their heads! You know the truth is: I AM JUST PLAIN OLD TIRED! I have fought this city govt. for 10 years now and seen the do nothing; behind close doors politics go on with RSA while jobs are lost and people leave and really wish I could just sell my house and get the hell out of here. Not an option at the present; but I am just so frustrated right now that I need a break! Oh hell, who am I kidding? THE DOG WILL ALWAYS BARK AND USUALLY BITE! In 2 years I can start selling my new design for Vote Em All Out Except Scott signs!
Here's something EVERYONE can do!

The article, author, date, headline, and url are all here.

Make several copies of the article, headline, author, date and url and carry them with you as you go about your daily activities.

Hand them out to people, saying as you do, "I'd like to share something with you."

Smile, thank them, then walk away.

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