Lakewood funds Natural Grocers
During the February 13 City Council meeting, item 8, approving $472,000 for a public benefit agreement, was pulled from the consent agenda for public discussion. Although any item can be pulled for more discussion, the tool is rarely used because items on the consent agenda are routine and assumed to have support.
The agreement in question was giving the Natural Grocers food store chain a total of $472,000 to be used for expanding their corporate headquarter building on Alameda, adding a new building in that existing parking lot, and adding 25 new employees with high-paying jobs. Natural Grocers will also receive up to $140,000 in sales tax rebates.
Discussion involved whether it was the job of government to pick winners and losers. This point was underscored by a Council Member who called attention a neighboring business, Green Mountain Sports, which is going out of business.
Sidenote: Green Mountain Sports owner is retiring but a current employee would take over if it was financially possible.
A motion was made for partial funding for Natural Grocers but did not pass.
Discussion revealed that the money would come from a Lakewood economic development fund, not the general fund. The economic development fund is a result of the City of Lakewood Accommodation Tax (3%) on accommodations within the city. Estimates are that funding the Natural Grocers expansion would result in increased sales tax and high-paying jobs for Lakewood.
Several Council Members spoke in favor of economic development in general.
The economic development fund currently has approximately $9.5M in it, but unfortunately, City Council did not get that information until just before the council meeting.
The question arose as to who else had this opportunity; there were no other contenders. Other business can apply for grants, available through the Economic Development Program. This public benefit agreement was a unique opportunity, solely for Natural Grocers, similar to that made for Walmart.
Natural Grocers seems to be following the same model as Walmart, using government subsidies to fund their expansion. A cursory search reveals Natural Grocers have recently reached similar agreements in Green Valley Ranch, Loveland, Canon City, and Shawnee, KS.
The motion passed 10-1 and will proceed to second reading. Councilor Janssen voted no, citing her belief the measure violated the Colorado Constitution, Article XI, sections 1 and 2.