Midway Home Depot Dismantles Concept of Quality of Life

Date: 5 Jun 2001 | posted in: Retail | 0 Facebooktwittergoogle_plusredditpinterestmail

Home Depot wants to build one of its giant stores with a multiacre parking lot on the corner of Lexington Parkway and University Avenue. The St. Paul City Council has authorized city officials to negotiate a financing package with the Atlanta-based corporation that could include as much as $5 million in tax increment financing (TIF), a form of public subsidy. Once a formal plan is submitted, the City Council will vote on whether to approve the development. Supporterscontend Home Depot will generate new jobs and tax revenue. But numerous studies have found that these giant chain retailers destroy about as many jobs and as much tax revenue as they create. This is because retail spending in a given market is a relatively fixed pie. Adding a massive amount of new retail in one location — in this case an estimated $40 million in annual sales — will invariably cause revenue to decline at established local businesses.Many of these businesses will be forced to downsize or close. The resulting job and tax losses will substantially offset the gains created by Home Depot. … Read More