Mixed Use Development Vs. Wal-Marts and Malls

Image via Wikipedia

Many times I have mentioned how it has been shown that smaller businesses actually will produce more sales tax revenue per square foot than a big box store such as Wal-Mart.

Here is a posting from Citiwire.net comparing property tax revenue between a major mall and downtown mixed use development.

Mixed-Use Downtown Development Puts Standard Malls’ Tax Yield to Shame

Also you must remember that stores like Wal-Marts also are well known for fighting to get their property tax bills cut down to almost nothing. So not only does the sales tax revenue not cover their infrastructure and other associated costs, but they also don't generate enough property tax revenue to justify the tax incentives and other subsidies they receive.

Is the Streetcar the only hope for Downtown Bountiful?

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Recently I had the opportunity to take a walking tour of the downtown Bountiful area. As many of you know the Downtown Bountiful Business Association is opposing the proposal to bring the streetcar through the area. However, after looking at the current status of the downtown area, the association should be supporting this proposal as it may be the best hope of downtown bountiful surviving in the long term.

The first problem I see with downtown Bountiful is there is not much to attract people to the area. The only restaurant in the immediate area has closed so you have to walk to the extreme end of the downtown area to find a place to eat. In addition a shopping area needs a large variety of stores to keep the area vibrant. However, that is sourly lacking in the downtown Bountiful area.

Of course the city of Bountiful is not helping the downtown area. They used government money to put in a Costco obviously like many city councils lusting after the sales tax dollars. Sadly what city councils turn a blind eye to is that healthy small business bring in more sales tax dollars per square foot than a big box retailer.

While I am sure the city council sold the concept that Costco would bring in additional shoppers to the area, the truth is a Costco and stores like it do nothing for the immediate area businesses. A Costco is a destination store so that people go into the store, shop at it and then head home so they bring no money to the surrounding area.

So is the streetcar the magic that will save downtown Bountiful?

The answer to that question is no. However, what the streetcar does is bring new people into the area that would not otherwise travel to downtown Bountiful. It will create new business opportunities for those that take advantage of them.

To bring true success with the streetcar would probably take something that residents of the area would not be willing to do and that is to increase density and bring some infill development into the sea of parking lots that presently litters the area.

While downtown Bountiful has lasted longer than many downtown areas, its life its slowly being sucked away between their own city council and the Centerville city council slowly subsidizing their business away.

Salt Lake City Anti-Small Business?

Image via WikipediaA recent comment about the pedicabs got those wheels turning again. The question is, despite the existing of a couple of organizations to promote local business including Vest Pocket and Buy Local First Utah, is Salt Lake City anti-small business?

Lets take a look at the Smith's at 900 East and 2100 South in Sugarhouse. As regular readers of this blog know, I often hold this as example of giving into the blackmail of a big business and not sticking to plans and the neighborhood. The question is, if that had been a small grocery store would have Salt Lake City given in or would they have stood their ground? If they would have stood their ground that means that they would have discriminated against the smaller business.

We also have the example of Wal-Mart at 300 West and 1300 South which in is a community with a high percentage of non-car owners. The store is designed for people to drive in and out of and pedestrians (especially those coming from TRAX) have to risk their lives to reach the store as the driveways are high speed routes for drivers and pedestrians have to use them to reach the store.

Another example of this is the food carts that have populated the downtown area. It seems like some bigger businesses (for example the Taco Time at 8th south and State) don't like the competition from the smaller carts and have been pushing for regulations against them including ones that have recently passed.

Some even try to demonize they carts by giving names link with food created diseases. I find this kind of ironic considering I have never had a problem eating food from one of the these carts but have gotten sick after eating from major restaurant chains.

Now instead of trying to regulate these carts out of business, how about supporting the small entrepreneurs and encourage them so long as they pass health regulations? I noticed in Denver the food carts were nicely integrated into the 16th Street Transit Mall.

If anything Salt Lake City should be promoting small business more. It is ironic that cities such as Salt Lake, Sandy and others work so hard to attract big box retailers and other chain stores when it reality they end up cost more than they bring in. According to studies done the cost of police, fire and other city services cost more than what sales tax dollars come in. That doesn't even take into consideration all the hidden cost of big box retailers such as infrastructure cost such as the 80 million that now has to be spent in Springville since people don't notice those kind of things.

The ultimate irony is the fact that small business contribute more to the local economy, actually pay higher wages on average, create more sales tax dollars per square foot of space, do not increase cost of city services, are generally safer, and fit better into the fabric of the community.

Salt Lake City should working harder to help small businesses and build a comprehensive plan that includes transportation, planning and the promotion of small business.