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Wednesday, November 30, 2005

An Enterprising Business Strategy

If you are interested in enterprise zones, this company seeks areas where it can get the best deal from local officials:

Sporting Goods and Its Own Business Model, by Kate Murphy, NY Times: Since it opened in June 2005, it's been hard to find a parking space at the Cabela's in this tiny town, halfway between Austin and San Antonio. A shuttle like those that ferry travelers between gates at airports zips around Cabela's stadium-size parking lot taking people from their cars to the outdoor equipment retailer's rough-hewn entrance. In their sensible shoes and fanny packs, looking like tourists instead of shoppers, many reach for their cameras to take pictures ... But there would be no bustle in Buda, which has a municipal budget of $4.5 million, if the town had not secured a $40 million bond to make the infrastructure improvements Cabela's demanded. As it has done in other communities, the company then bought the debt in exchange for a sales tax exemption. The state of Texas also awarded Cabela's a $600,000 enterprise grant and made $19.5 million in Interstate and overpass improvements. ... Locating in small towns like Buda and Lehi, where locals are more likely to offer such sweetheart deals, is part of Cabela's strategy. The company's senior vice president for retail operations, Mike Callahan, said, "They are more eager to work with us because we are a huge driver for economic growth," ...

    Posted by on Wednesday, November 30, 2005 at 12:07 AM in Economics, Taxes | Permalink  TrackBack (0)  Comments (0)

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