EDA Seeks To Save Chicken Wing Bar
Owners of Buffalo Wild Wings in Central Park are considering closing, so the Economic Development Authority today came out of closed session with an approval of a $25,000 grant for the business.
If Buffalo Wild Wings in Central Park is going to remain open, there will be a $25,000 grant waiting for the owners if they want it.
Economic Development and Tourism Director Karen Hedelt said today that the EDA came out of closed session to approve the grant this morning. To get the grant, the business will have to renew its lease for five more years, continue the franchise agreement with the chain and invest $350,000 in capital to the building at Central Park. Hedelt said the franchise also is requiring BWW to renovate its building.
Hedelt said in a phone interview that she is confident Buffalo Wild Wings (BWW) will stay in Central Park. She said city officials already informed the business owners about the news.
"They are very pleased with the news and this gives them a little impetus to move ahead with the plans and they are negotationing the details of their lease now with Rappaport," she said. Rappaport Cos. owns the building that BWW leases. "It is difficult to obtain financing right now and I am sure this is just a little bit of encoruagement for them."
How much revenue BWW generates for the city is not public information, but Hedelt said EDA members were privy to those details in closed session.
"They generate a healthy bit of revenue for the city annually," she said. The EDA knows it is a successful business, but those numbers cannot come from us. The EDA is offering assistance to the business to encourage them to make the decision to re-invest in their city business. We want to retain a viable business in the city and avoid creating a vacancy when modest assistance can help the succeeding business make a decision to stay."
In other EDA action:
- Hedelt said the EDA also created a subcommittee to further review its Tourism and Technlogy Zones and its incentives program. The EDA was expected to discuss this program more at the meeting but two members were absent and Hedelt said the entire group should be present to have the discussion about such a critical program.
- Happy Clam will get the $32,000 in tax incentives over five years that City Council approved in December.
Dan Telvock
5:20 pm on Monday, February 13, 2012
Does anyone else have any thoughts or concerns about the incentives program? The EDA created a group to further evaluate the program and some of the suggested changes so now is a good time to speak up. What do you think about letting the city manager approve incentive deals up to $100,000 without having any public dialogue? Or what about reducing the criteria so that more small businesses can qualify for the incentives? Do you have concerns that the city hasn't denied one incentive application to date? Is too much money being given away or is the return on investment worth all of this? The EDA says the return on these investments is worth every penny, and if the tax revenue generations figures are accurate (we don't know because it is not public information) then the numbers do show that the city generates decent revenue from these businesses even when giving some back. Concern that the jobs created aren't good jobs? Bartenders, waitresses and cooks are what restaurants hire and the majority of incentives go to restaurants right now. Come on, readers...tell me what you're thinking.
John Morris
10:55 pm on Tuesday, February 14, 2012
A closed-door session to give away our tax dollars (to a for-profit busness) based on financial details they won't disclose... does it get any more disgusting than that? How corrupt (or incompetent) can a city this small get?
I hear Cox needs a little help... the city has only let them triple their rates over the last ten years. Maybe we should toss Cox $100,000. After all, the schools around here certainly don't need it.
Morons.
Dan Telvock
10:59 pm on Tuesday, February 14, 2012
Cox? ugh. don't get me started. I just wish my HD channels worked properly and that my TV did not start flashing fuzz every day, forcing me to unplug everything and restart the box. Do I have alternatives to Cox?
John Morris
11:11 pm on Tuesday, February 14, 2012
And Googling the headlines from the Buffalo Wild Wings earnings report last week...
Buffalo Wild Wings Soars On Earnings, Sales And Outlook
Buffalo Wild Wings Enjoys Fifth Straight Quarter of Double-Digit Growth
Buffalo Wild Wings earnings jump 33% despite rising costs
Poor, poor B Dubs... looks like they really need public assistance.
Absolutely disgusting.
Dan Telvock
11:13 pm on Tuesday, February 14, 2012
John, for clarity's sake, that's the franchise and not the actual Buffalo Wild Wings in Central Park. But it is factual that if that business is struggling, we are not privy to those details. We have to trust the EDA board members.
John Morris
11:27 pm on Tuesday, February 14, 2012
Granted... but if corporate is doing that well, I'm certain the franchisees (as a whole) aren't stinking up the joint.
But more to my point, I don't recall our government being formed for the purpose of bailing out failing businesses (at taxpayer expense). This is exactly what is wrong with government today. We need to provide for a common defense, we need infrastructure... we don't need to prop up businesses that can't survive on their own! (Especially sports bars... give me a break. Could our money be spent any more recklessly?)
Dan Telvock
10:55 am on Saturday, February 18, 2012
John, no taxpayer funding was used for this grant. The grant is from EDA bond proceeds and it's not the same as most of the other incentives. I think that's an important point to clarify. In the future, I will do a better job of clarifying this because it is important and I don't expect residents to know the difference unless the media tells them. Sorry for the confusion.
John Morris
10:07 am on Sunday, February 19, 2012
It was my understanding that the EDA makes its money by issuing tax-exempt bonds on behalf of select businesses (i.e., the government picks winners and losers) and then charging those businesses a small fee for the cheaper loans. Otherwise, the interest on the loans would generate tax revenue (and lessen the burden on the individual taxpayer.) As an example, an $80 million loan at 4% (if not for the EDA) would generate $3.2 million of taxable interest annually. At a Romney-esque tax rate of 15%, this would result in tax revenues of $480,000 every year. This is a great deal for the government-selected company, but hardly a good deal for the individual taxpayer. It is simply another way to funnel money to businesses while the individual taxpayer foots the bill. GE would be so proud.