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Economic Development Corporation Board Members Toni Kunz, Rhonda Carrell, Cindy Harrington, Art Crawford, Laura Devenport, Tom McEachin and Andrea Cavanaugh delberate during the public hearing on Wednesday.
Photo by Jessica Goode
June 18, 2019
Public says no to funding Tractor Supply training incentive
By Jessica Goode
The Bandera Prophet
In an overwhelming outcry against granting financial incentives to the newly arrived Tractor Supply Company, local business owners and concerned citizens made their disapproval known to the EDC.
“I am completely and utterly against this entire grant business. Tractor Supply did $7.9 billion in sales, their net is $350 million. They do not need our money,” Lee Correll of O’Neals Florist said during a public forum held Wednesday.
Economic Development Corporation board members recommended in April giving Tractor Supply $37,500 - divided over three years - for job training and retention, on the proviso that Bandera County residents fill at least six primary positions at the store. Other mandatory conditions for the retailer to get the money, in $12,500 increments, include building a handicapped-accessible parking lot and generating at least $36,000 in sales tax each year.
“If they don’t meet their goals, they don’t get any money,” EDC Board President Art Crawford said.
Realtor Larry Wood said years ago he was a manager at the Weatherford Tractor Supply Co., and he is well-aware of their policies.
“Tractor Supply is notoriously cheap. They will squeeze every penny they possibly can,” Wood said, warning that executive positions would likely not be held for a Bandera resident. “This is a very enviable location for anyone to live. So I imagine anyone with seniority will choose this store.”
Wood further went on to say that EDC’s funding could be better spent on veteran business owners.
“This is a slap in the face,” Wood said. “My question is why does a billion dollar corporation need $36,000? At the end of the day, they don’t need this money. If you’ve got this money burning a hole in EDC’s pocket, we’ve got four or five other ranch and hardware stores that will lose business to this store.”
Crawford said the first proposal Tractor Supply representatives presented was a $200,000 incentive.
“I said I wouldn’t even take it to the board,” Crawford said, adding their next request of $50,000 was cut down to $37,500. “They have been investigating and researching Bandera for three years… The developer came to the city and said he was leasing to Tractor Supply for 25 years.”
“Tractor Supply has nationwide training. They’re budgeted well beyond this $37,500,” Realtor Rene Leith said.
Saying they should have been prepared, Dennis Fitzgerald offered his argument against funding the retail giant’s request.
“Why should the people of Bandera subsidize their training program?” Fitzgerald said. “When I first heard about this funding I was astonished. I still am. That money can be used to help the small Mom and Pops.”
Echoing his sentiment, Bandera Mayor Suzanne Schauman, speaking as a business owner, said the company knew what they were getting into when they chose Bandera.
“I respectively ask to use the money for those who need it,” Schauman said.
Stating she too was shocked when she heard the EDC voted for something like this, EDC Member Toni Kunz said she sees both sides.
“We have been asked many times by our citizens to give their children a reason to stay, [such as] a job with insurance and benefits. This incentivized them to invest in our youth,” Kunz said. “By being here, they are helping the City of Bandera. All we’re doing is giving them something back that we didn’t have in the first place, that they brought.”
“Tractor Supply is the Walmart of rural areas,” George Hamilton said. “Their consideration is stock holder value only, not the people of Bandera County.”
“Tractor Supply having mowers does not bring new tax dollars in because other stores already here provide the same supplies,” Wood said. “Everything in that store is something you can buy in other stores in this town. New tax value is already sitting in the county… It’s a slippery slope. You can give the money to the corporate people who care about their stock holders, or you can give it to the people who have been here for years and years.”
Russell Hevenor, of Hevenor Lumber and Hardware, said if the city gives Tractor Supply the money, it would create an unfair competitive environment.
“It may be the biggest corporate welfare project the city has ever done,” Hevenor said. “It’s wrong. I’m very much against this.”
Other business owners and residents who expressed their disapproval included Johnny Boyle, Jerry Russe, Bob Grimes, Robert Skinner and Vickie Jones Dewolf.
“This is how government is supposed to work,” EDC Board Member Tom McEachin said. “The city just borrowed $3 million for a water system. We’re also going to have to build a new wastewater facility. Where is the money going to come from? We can’t double and triple property tax to pay for this. Tractor Supply is a business that understands Bandera. They will generate a great deal of property and tax revenue. We’re not changing the culture of our city, but we are expanding our tax base.”
Taking issue with McEachin’s statement, Schauman said giving Tractor Supply $36,000 does not expand the city’s tax base.
“They’re going to do their training anyway,” Schauman said. “I don’t believe they need our money to train. We have no guarantees that it will help our city economically.”
Crawford said Bandera City Council has the final say. Representatives of Tractor Supply could not be reached for comment.
“The public has 60 days to get a petition together - whether it is for or against funding the Tractor Supply,” Crawford said.
“I am completely and utterly against this entire grant business. Tractor Supply did $7.9 billion in sales, their net is $350 million. They do not need our money,” Lee Correll of O’Neals Florist said during a public forum held Wednesday.
Economic Development Corporation board members recommended in April giving Tractor Supply $37,500 - divided over three years - for job training and retention, on the proviso that Bandera County residents fill at least six primary positions at the store. Other mandatory conditions for the retailer to get the money, in $12,500 increments, include building a handicapped-accessible parking lot and generating at least $36,000 in sales tax each year.
“If they don’t meet their goals, they don’t get any money,” EDC Board President Art Crawford said.
Realtor Larry Wood said years ago he was a manager at the Weatherford Tractor Supply Co., and he is well-aware of their policies.
“Tractor Supply is notoriously cheap. They will squeeze every penny they possibly can,” Wood said, warning that executive positions would likely not be held for a Bandera resident. “This is a very enviable location for anyone to live. So I imagine anyone with seniority will choose this store.”
Wood further went on to say that EDC’s funding could be better spent on veteran business owners.
“This is a slap in the face,” Wood said. “My question is why does a billion dollar corporation need $36,000? At the end of the day, they don’t need this money. If you’ve got this money burning a hole in EDC’s pocket, we’ve got four or five other ranch and hardware stores that will lose business to this store.”
Crawford said the first proposal Tractor Supply representatives presented was a $200,000 incentive.
“I said I wouldn’t even take it to the board,” Crawford said, adding their next request of $50,000 was cut down to $37,500. “They have been investigating and researching Bandera for three years… The developer came to the city and said he was leasing to Tractor Supply for 25 years.”
“Tractor Supply has nationwide training. They’re budgeted well beyond this $37,500,” Realtor Rene Leith said.
Saying they should have been prepared, Dennis Fitzgerald offered his argument against funding the retail giant’s request.
“Why should the people of Bandera subsidize their training program?” Fitzgerald said. “When I first heard about this funding I was astonished. I still am. That money can be used to help the small Mom and Pops.”
Echoing his sentiment, Bandera Mayor Suzanne Schauman, speaking as a business owner, said the company knew what they were getting into when they chose Bandera.
“I respectively ask to use the money for those who need it,” Schauman said.
Stating she too was shocked when she heard the EDC voted for something like this, EDC Member Toni Kunz said she sees both sides.
“We have been asked many times by our citizens to give their children a reason to stay, [such as] a job with insurance and benefits. This incentivized them to invest in our youth,” Kunz said. “By being here, they are helping the City of Bandera. All we’re doing is giving them something back that we didn’t have in the first place, that they brought.”
“Tractor Supply is the Walmart of rural areas,” George Hamilton said. “Their consideration is stock holder value only, not the people of Bandera County.”
“Tractor Supply having mowers does not bring new tax dollars in because other stores already here provide the same supplies,” Wood said. “Everything in that store is something you can buy in other stores in this town. New tax value is already sitting in the county… It’s a slippery slope. You can give the money to the corporate people who care about their stock holders, or you can give it to the people who have been here for years and years.”
Russell Hevenor, of Hevenor Lumber and Hardware, said if the city gives Tractor Supply the money, it would create an unfair competitive environment.
“It may be the biggest corporate welfare project the city has ever done,” Hevenor said. “It’s wrong. I’m very much against this.”
Other business owners and residents who expressed their disapproval included Johnny Boyle, Jerry Russe, Bob Grimes, Robert Skinner and Vickie Jones Dewolf.
“This is how government is supposed to work,” EDC Board Member Tom McEachin said. “The city just borrowed $3 million for a water system. We’re also going to have to build a new wastewater facility. Where is the money going to come from? We can’t double and triple property tax to pay for this. Tractor Supply is a business that understands Bandera. They will generate a great deal of property and tax revenue. We’re not changing the culture of our city, but we are expanding our tax base.”
Taking issue with McEachin’s statement, Schauman said giving Tractor Supply $36,000 does not expand the city’s tax base.
“They’re going to do their training anyway,” Schauman said. “I don’t believe they need our money to train. We have no guarantees that it will help our city economically.”
Crawford said Bandera City Council has the final say. Representatives of Tractor Supply could not be reached for comment.
“The public has 60 days to get a petition together - whether it is for or against funding the Tractor Supply,” Crawford said.