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Cabela's could add jobs in Walker but cost jobs elsewhere

  • Updated:12/8/2006 10:52:44 AM - Posted: 12/7/2006 11:47:03 PM
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Walker - Walker my benefit but, overall, some economists think the state will actually lose jobs if Cabala's is given tax breaks to locate in West Michigan.

"There will be people working at Cabela's, no question," says Ken Braun of the Mackinac Center For Public Policy. "But what about people at other sporting goods stores in other places in Michigan that arent getting the tax cut Cabela's is getting?"

Cabela's is asking the state for 15 million dollars worth of incentives to open a store in the proposed Orchard Park Center in Walker.

The store would need hundreds of employees.

"They would employ almost 200 full time and almost 100 part time," says Walker City Commissioner Al Parent.

But for Walker to gain jobs, other communities may lose employees.

Analysts at the conservative leaning Makcinac Center For Public Policy say they have studied other markets where Cabela's received economic incentives to locate stores.

They say there is no net increase in jobs in those counties.

Positions added because of Cabela's are offset by subtractions elsewhere.

"The 10 small businesses that have 10 employees each that had to close elsewhere in Michigan because they have to pay all of that tax burden," says Braun.

Cabela's hasn't said what they will do if they don't get the 15 million dollars worth of incentives and tax breaks.

"I don't know," says Parent. "They are asking for everything they can get. Hopefully there will be a compromise somewhere with the state. What better business could you have than Cabela's? Everyone is excited about it."

A review of company financial statements shows Cabela's depends on tax breaks to stay profitable.

So far the Michigan Economic Development Corporation says it is not offering Cabela's any incentives to locate in Walker.

Phil Dawson


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