How much incentive do box stores need anyway?

Frontiersman editorial board

On its face it seems like a simple discussion about traffic management and public safety. Government's primary function is to protect citizens, and making traffic safer is certainly a part of that responsibility. So why is there a debate over whether Wasilla should pay upwards of $350,000 to install a needed traffic light? Because some things are not what they seem.

The traffic light in question is already scheduled to be installed at the intersection of Hermon Road and the Parks Highway -- where the new Lowe's store is scheduled to open in December. Lowe's already agreed to pay the cost of the light, because traffic associated with the retailer will compound congestion.

Lowe's was apparently stunned to learn the project would cost nearly $700,000, and has asked the city to split the cost. Home Depot is also negotiating to split the cost of a traffic light with Wasilla.

To Mayor Dianne Keller it seems like the right thing to do, and she entered it as an item to be approved at last Monday's city council meeting.

Some council members raised questions about the cost, and about why the city should bear any of the burden. It might set a bad precedent, they argued, putting Wasilla in the business of paying for road construction as an economic incentive for retail businesses.

Keller agreed that it was a precedent, but she feels it's a good precedent, sending the message to other businesses that Wasilla is a good place to build -- a place willing to bear a company's responsibility. It comes down to community priorities.

There is not enough room here to argue the merits and faults of national retail outlets. The simple question here is, exactly how much incentive do these businesses require? Why are they moving here to begin with?

They're moving here because there are enough people, and enough growth, to support them. They're moving here in groups because they don't want to leave the market to be dominated by a competitor. A Home Depot in the Valley takes customers from a Lowe's in Anchorage.

Large retailers don't make many mistakes. Home Depot and Lowe's are here because there are enough retail dollars here to share, and still make a profit.

Manufacturing companies sometimes require economic incentive to enter a community. Retailers, to a large extent, follow a different formula. Population and growth are the first two factors in the equation. Competition is the third.

Lowe's will not be the last national retailer to move to the Valley. Chain restaurants will move to the Valley. Box stores and warehouse stores will move here. National book and music stores will move here. Local government could throw up barriers, and they'd still move here. They will because it is economically feasible to do it, and they'll come in groups because none of them will surrender a growing market without a fight.

Lowe's and Home Depot will bring low prices and convenience to our community. The stores will also contribute to our growing traffic woes, and make life difficult for smaller, locally owned businesses. For the bargains and convenience the companies will realize profits. It's fair to ask them to share the burden of dealing with the challenges, and Lowe's already agreed to do it.

Growth that is beneficial to the public should be encouraged by government, but mayors and city-council members are not elected by box stores and chain restaurants.

The first priority of government is to protect the public interest, and covering construction costs for multi-billion-dollar corporations with taxpayers' money is not in the public interest.

Let Lowe's and Home Depot pay for the traffic lights that will ease entrance to their businesses. There are other intersections that need attention, too. Let's spend our tax dollars there.