Letter to the Editor: "If city leaders insist that incentives must be offered, they should scale down the package to something that better reflects the true needs of our community"

"This is not a debate regarding whether or not Hy-Vee should or can come to town.  Hy-Vee is welcome to open a store here.  No one is stopping them.  The City Council vote is not to determine whether or not Hy-Vee can open a store here.  The question, and vote, is regarding the 'incentive package' to the developer. The incentive package is not mandatory practice.  We do not owe the developer money.  

This situation is part of a larger problem regarding so-called incentive packages that's affecting towns, cities and states everywhere.  I urge the community to read up on it.  'Good Jobs First' is a good place to start.  Companies notoriously abuse these incentives.  The company or developer essentially blackmails the city for incentives in exchange for the jobs and wealth they promise to bring to the community.  They manipulate us through intimidation by playing the jobs card and pretending they will walk away it they don't get a subsidy.  This is a pervasive and predatory practice which needs reform.

A true incentive motivates a person or business to do or provide something that is truly needed in the community, and that would not be done or provided otherwise.  Does that sound like this project?  Or are we really just throwing the developer an 'entitlement package' simply because they wish to line their own pockets, and they know we will oblige like obedient townspeople?

Governments should not be using tax dollars—or sacrificing them—to incentivize private sector activity when there is not a true community need or public purpose.  The Hy-Vee developer's incentive package is not a case of the free market failing to provide goods or services that our community needs.  If Decorah was a struggling town with little to no options for groceries, an incentive package would be warranted.  However, Decorah is no food desert.  In fact, we are incredibly lucky to have the amazing Oneota Community Food Co-op.  We also have Fareway and Wal-Mart.  We clearly have choices.  The City does not need to intervene in this case.  It is up to Hy-Vee to make the business decision of whether or not their store will be successful here in the short- and long-term.  If you support Hy-Vee coming to town, then it's Hy-Vee you should be contacting to show your support, not City Hall.

Hy-Vee has over 245 stores, many in places far less attractive than Decorah, with sales of $10 billion annually.  It is no surprise that Hy-Vee would be eager to come to town after the closing of Quillin's.  Does Hy-Vee really need or deserve such a big hand-out to come to our desirable corner of Iowa?  The 15-year tax abatement on a non-sliding scale and the $325,000 to be given to the developer in the name of 'economic development' seems a bit excessive.  If city leaders insist that incentives must be offered, they should scale down the package to something that better reflects the true needs of our community.

If you also agree that the proposed incentive package totaling $749,000 is excessive, I urge you to email or call your City Council representatives, the Mayor, and City Manager."