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Dispatches

Stacy Mitchell, Institute for Local Self-Reliance


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Stacy Mitchell is a researcher with the New Rules Project of the Institute for Local Self-Reliance, a nonprofit organization that provides research, analysis, and innovative policy solutions for building healthy communities and strong, sustainable local economies. She is author of The Home Town Advantage.
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Tuesday, 03 Oct 2000
MINNEAPOLIS, Minn.
Much as it seems to do every year, fall has suddenly descended. It always feels as though it happens overnight. I wake up one morning, and the leaves have changed, the sky is overcast, and the wind is blowing from the north.

It used to be that we could count on having snow on the ground by Nov. 1. This is no longer the case. The winters here, as everywhere, have turned warmer. It's strange to say, but I miss those dangerously cold, extended deep freezes that could last for days on end. They were exhilarating and part of what made Minnesota a unique place to live.

It's nice to be home for an extended stretch. I don't travel that much for work, but the last 10 days have been particularly hectic. In addition to Toledo, I took trips to Brunswick, Maine, and Atlanta, Ga.

I went to Maine to speak at a public forum on superstores organized by the city of Brunswick. There were eight speakers over two nights -- some for, some against.

Boulder
Local businesses take on the big chains.
Wal-Mart and other big chain retailers are now moving aggressively into Maine. They've targeted several mid-coast communities. Organized opposition has emerged in several of these towns and is beginning to make some headway. In Belfast, for instance, residents successfully urged the city to adopt a moratorium on all new retail development, allowing more time to study the impact of these big stores.

But Wal-Mart has also found support among some residents. Maine is one of the last frontiers for these corporate chains. It's difficult to make a case against them when people haven't really seen what they do to communities. I wished I had brought along pictures from the Midwest of places where these big stores were built years ago.

It can be tempting for people to think that it's possible to let Wal-Mart in and still retain downtown businesses. Often they are enticed by the developer's promises of new jobs and tax revenue. But these gains are invariably offset by losses as the new store forces existing businesses to scale back operations or close down entirely.

Then there are the hidden costs of sprawl and auto dependency, the loss of indirect economic benefits as chains siphon revenues and profits out of the community, and the immeasurable decline of a cohesive community center built around a strong downtown retail economy.

I went to Atlanta to do a workshop with independent bookstore owners on local land use policies that can limit chain store development and support small, local retail. It was part of an annual conference held by the Southeast Booksellers Association. The best part I thought was the discussion afterwards.

One of the things that came up over and over again were the various ways in which public policy undermines local businesses and encourages economic concentration. Many, if not most, cities and towns provide tax breaks and subsidies for corporate retail development. At the federal level, independent booksellers are especially concerned about the policy exempting Internet retailers from collecting state and local sales tax. This essentially gives distant companies, who contribute nothing to the community, a 6 percent to 8 percent price advantage over local stores.

clone ad
My favorite BIBA ad.
Most people believe the decline of independent businesses is simply the free market at work. But in many ways the playing field is tilted.

My workshop was held in conjunction with a presentation by Jeff Milchen, director of the Boulder Independent Business Alliance (BIBA), a two-year-old coalition of about 200 locally owned businesses. Its mission is to educate residents about the importance of supporting local stores. It does this through window decals and other material displayed at member stores, a guide to Boulder's independent businesses, and advertisements in the local newspaper. My favorite ad is one that says, "You're not a clone. Why shop at one?"

ILSR has worked with BIBA to help implement a set of local policies known as the Community Vitality Act. It would require the city to support local stores in several ways and would restrict new chain store development. They hope to have a city council vote on the measure in the next few months.

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