(Sept. 18, 2007) -- They're likely laughing at LB in Lakewood as that smaller city prepares to suck revenue out of CA's fifth largest city with a new Costco location...as Signal Hill has done for the past several years.
Lakewood and Signal Hill didn't do what LB City Hall does. They didn't cheapen themselves and shortchange their taxpayers by offering big corporate operators (not small family businesses) "sales tax rebates," paying favored businesses part of the sales tax money they should be paying taxpayers.
Lakewood City Hall spokesman Don Waldie told us his city didn't offer Costco any type of sales tax rebate, Redevelopment or other taxpayer incentive to come to town. Lakewood has never done that, Mr. Waldie added...and that latter point is significant. It tacitly collapses LB's original 1990s excuses for starting its embarrassing corporate welfare program in the first place (and big surprise, its continued through better times).
In June, LBReport.com editorialized against LB's latest example of its self-cheapening policy in a management-proposed, Council-approved sales tax rebate deal involving Marina Pacifica (seeking Best Buy as a tenant).
For the record, Lakewood has had a Best Buy location (Clark just north of Del Amo) for years without any sales tax rebate. Signal Hill just got a Best Buy location (2700 block Cherry Ave.) without selling its taxpayers short.
Meanwhile, some in LB claim they're strengthening the city by bleeding it. Like former East European apparatchiks they gaze at prosperity just across the border and blame everyone but themselves.
This morning's (Sept. 18) Press-Telegram editorializes that LB needs to "examine the potentially damaging messages it sends to retailers" when its City Council voted to oppose 100,000+ sq. ft big box outlets that sell groceries, and blames "[s]ome 3rd District residents [who] are fighting a planned Home Depot. And others have publicly criticized rent incentives given to Best Buy to locate in Marina Pacifica."
We take the PT's point about the LB City Council's big ordinance (approved by city management and LB's Planning Commission) likely not being a LB incentive for Costco...but flailing at opponents of the ELB Home Depot and taxpayers disgusted by giving up sales tax for Best Buy/Marina Pacifica makes no sense.
The Studebaker/Loynes Home Depot hasn't sought and has no plans to seek a sales tax rebate, said attorney Doug Otto when we asked him about this last year.
Lakewood didn't give up sales tax revenue to get a Best Buy location and neither did Signal Hill.
LB City Hall can't have it both ways: saddling taxpayers with "six figure club" management (seeking salaries comparable to other cities) while simultaneously shortchanging LB taxpayers on sales tax revenue that other cities insist on and collect.
And no, the sales tax kickback program isn't "business friendly." It's UN-friendly to smaller LB businesses denied the subsidy...and it's taxpayer-unfriendly citywide, shortchanging the city on safe and clean streets that attract businesses.
We urge the City Council to agendize repeal of LB's wrong-headed sales tax rebate program forthwith. With LB living "paycheck to paycheck" (words of Mayor Bob Foster), taxpayers deserve to see which Councilmembers think LB should receive a smaller share of sales tax revenue than Lakewood and Signal Hill.
