spectr17
05-21-2006, 09:16 PM
Reno government officials still want Cabela's in Verdi
SUSAN VOYLES
RENO GAZETTE-JOURNAL
Despite plans by Cabela's to open several stores in California, Reno's mayor and city council told a company executive Wednesday they still want the giant sports outfitting store to come to Verdi.
Kevin Rhodes, Cabela's real estate director based in Sidney, Neb., answered the council's worries over rumors of a store in Vallejo, creating competition for the store coming to Boomtown in west Reno.
"Someday, we will open a store in California. I will tell you that," Rhodes said. "Someday, we will have multiple stores to cover the north, central California and southern California. With 35 million, it's a huge, huge market."
"But we have to be very, very careful. We are not going to cannibalize an existing store."
The store at Boomtown would be the company's first on the West Coast.
"I knew you were going to go to California," Mayor Bob Cashell said. "We want you in Reno. We just want everything on the table."
Cabela's plans to break ground in September on a 225,000-square-foot store beside Boomtown and open it in fall 2007.
The store expects to generate at least $50 million a year in sales and employ 144 workers, according to a study by a firm the city hired, Meridian Business Advisors of Reno.
The report said the store would have an economic impact of $261 million in drawing Californians to come to Reno for overnight visits.
The study is required for Cabela's to receive state approval for Sales Tax Anticipated Revenue (STAR) bonds.
Under state law enacted in 2003, Cabela's could keep three-quarters of the sales taxes it generates to pay for construction costs if it can show a preponderance of its sales would come from out-of-state visitors. Cabela's also would benefit in having most of its property taxes put into a Reno redevelopment district created last year to help build up the area.
The study says Cabela's passes the preponderance test. The study found $34 million, or 68 percent, of its sales should come from California.
The study also said Cabela's could take away several million dollars of business from five existing sporting goods stores in Reno. But study author Candace Evart said that is almost a guess because there's no formula.
Council members repeatedly asked why proposed stores such as Scheels at the Sparks Marina and Bass Prop Shops next to the proposed Station Casino in south Reno weren't in the study.
Evart said the proposed stores weren't included in the analysis because the issue was the impact on existing stores. The potential stores in California weren't evaluated either.
Cashell said Cabela's is putting up the money to build the store and would be repaid later with the sales tax proceeds.
"If it goes belly up, it's not going to be us," he said.
The Meridian report said Cabela's would generate $69 million in sales taxes over 20 years, $14.3 million of that for the redevelopment district.
According to the study, Cabela's would have a positive impact on the schools and the city even if it benefits from most of the taxes generated the first 20 years.
Over the first 22 years, Reno would gain a surplus of $953,000 after police, fire and other services are counted. With the new employees expected to bring 89 school-age children, the school district could gain $4.5 million over that time period.
Washoe County costs were not analyzed.
SUSAN VOYLES
RENO GAZETTE-JOURNAL
Despite plans by Cabela's to open several stores in California, Reno's mayor and city council told a company executive Wednesday they still want the giant sports outfitting store to come to Verdi.
Kevin Rhodes, Cabela's real estate director based in Sidney, Neb., answered the council's worries over rumors of a store in Vallejo, creating competition for the store coming to Boomtown in west Reno.
"Someday, we will open a store in California. I will tell you that," Rhodes said. "Someday, we will have multiple stores to cover the north, central California and southern California. With 35 million, it's a huge, huge market."
"But we have to be very, very careful. We are not going to cannibalize an existing store."
The store at Boomtown would be the company's first on the West Coast.
"I knew you were going to go to California," Mayor Bob Cashell said. "We want you in Reno. We just want everything on the table."
Cabela's plans to break ground in September on a 225,000-square-foot store beside Boomtown and open it in fall 2007.
The store expects to generate at least $50 million a year in sales and employ 144 workers, according to a study by a firm the city hired, Meridian Business Advisors of Reno.
The report said the store would have an economic impact of $261 million in drawing Californians to come to Reno for overnight visits.
The study is required for Cabela's to receive state approval for Sales Tax Anticipated Revenue (STAR) bonds.
Under state law enacted in 2003, Cabela's could keep three-quarters of the sales taxes it generates to pay for construction costs if it can show a preponderance of its sales would come from out-of-state visitors. Cabela's also would benefit in having most of its property taxes put into a Reno redevelopment district created last year to help build up the area.
The study says Cabela's passes the preponderance test. The study found $34 million, or 68 percent, of its sales should come from California.
The study also said Cabela's could take away several million dollars of business from five existing sporting goods stores in Reno. But study author Candace Evart said that is almost a guess because there's no formula.
Council members repeatedly asked why proposed stores such as Scheels at the Sparks Marina and Bass Prop Shops next to the proposed Station Casino in south Reno weren't in the study.
Evart said the proposed stores weren't included in the analysis because the issue was the impact on existing stores. The potential stores in California weren't evaluated either.
Cashell said Cabela's is putting up the money to build the store and would be repaid later with the sales tax proceeds.
"If it goes belly up, it's not going to be us," he said.
The Meridian report said Cabela's would generate $69 million in sales taxes over 20 years, $14.3 million of that for the redevelopment district.
According to the study, Cabela's would have a positive impact on the schools and the city even if it benefits from most of the taxes generated the first 20 years.
Over the first 22 years, Reno would gain a surplus of $953,000 after police, fire and other services are counted. With the new employees expected to bring 89 school-age children, the school district could gain $4.5 million over that time period.
Washoe County costs were not analyzed.