By Maxine Shapiro, KERA 90.1 business commentator
Dallas, TX – It's always rewarding when I see citizens challenge the building of a national-retail chain in their community. Activists in Austin won a recent battle at the risk of continuing to polarize a city that's more divided then ever on its future. I'm Maxine Shapiro with KERA Marketplace Midday.
It's at 6th and Lamar, in the heart of downtown Austin. The developers had gotten some nice incentives for the project to the tune of $2.2 million. Permit and review fees were cut under a new city program. The highly nationally successful Whole Foods corporate headquarters will have 80,000 square-feet. Borders Books and Music was also to be an occupant. And that's where the line was drawn. See, a couple of local, long-standing and well-loved merchants are just across the street - BookPeople bookstore and Waterloo Records.
An economic development study was conducted partly funded by the two stores and the results were clear. BookPeople and Waterloo would lose more than $11 million. The study also proved that the city would lose revenue. Local merchants spend much more on local labor to run the store and sell the merchandise than national retailers. And local merchants keep their profits in the local economy.
After months of rallies and letters, Borders pulled out of the project last week. And the business community is up in arms over the success of the activist group. The Austin Business Journal quotes developers as being "frightened" over the power of this group. Next to "liberal," the worst title you could have in the business community is "environmentalist." And the Journal reported that three members of the group were just that. Heaven forbid.
So can the local Austin community come together? By the way, it's been looking over the last couple of years - it's going to take quite a bridge to do it. I hope they find the patience they need. For KERA Marketplace Midday, I'm Maxine Shapiro.
Marketplace Midday Reports air on KERA 90.1 Monday - Friday at 1:04 p.m.
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