Mall owners: Retail subsidies create uneven playing field

FLORENCE -- The owners of Regency Square Mall say if the city is willing to subsidize a Bass Pro Shops development, their company wants to compete for that money, too.

John Gibson, CEO for Hull Storey Retail Group, offered what he called a "modest proposal" to city officials Monday.

"We are delighted to now learn that millions and millions of dollars are available for real estate developers in Florence. This really changes everything," Gibson said in a letter to city officials titled "A Modest Proposal: $45 Million for Regency Square Mall Expansion." (Click here to view the entire document.)

The city is considering up to $20 million in incentives to attract a Bass Pro Shops to Veteran's Park. City officials have said an outlet mall concept is being considered to accompany Bass Pro, which could lower the amount of the city's payout.

The Veterans Park attraction is part of the Retirement Systems of Alabama tourism project that produced a luxury hotel and two Robert Trent Jones golf courses.

"Our plans now include expanding all of our existing anchor stores, adding an exciting new anchor, adding a second level to the mall with the specialty shops that would otherwise never come to the market, and a 1,500-car parking deck," Gibson stated in his letter.

The title and the text of the letter are a play on Irishman Jonathan Swift's satirical 1728 essay, "A Modest Proposal." In it, Swift suggested the Irish feed their poor children to the land-owning rich to solve overpopulation and poverty problems.

Modern usage of the term "modest proposal" is commonly used to make such an outlandish argument for something that it sparks debate against it.

Gibson said in an interview Monday that the point of the letter is to alert elected officials to the kinds of difficult questions retail incentives raise.

Gibson met with Mayor Bobby Irons on Monday.

"I hope that he recognizes what we are trying to do here is contribute to the discussion about the role of retail incentives," Gibson said.

Gibson said an outlet mall would compete directly with retailers in Regency Square Mall and hurt the mall property.

He's willing to compete, if it's an even playing field, he said.

"Is it the role of the government to decide where people are going to shop?" Gibson asked. "If we have to compete for government funding, we're prepared to compete."

Gibson concedes the mall has no immediate plans for the ambitious expansions outlined in his letter.

"Given enough tax support, we could do anything," he added.

"Guess what -- Bass Pro will come to Florence if you pay for it. Can we get a Bloomingdale's or a Macy's? Yes, we can. All these tenants can be bought," he said.

Irons said he's grateful for Hull Storey's investment in the community and that the city remains pro-business.

"But at this time, we have not established a city policy on retail incentives," Irons said.

"We'll continue to research and analyze our current development project to determine if incentives are feasible and if the citizens are interested in pursuing retail incentives."

After reading the letter, Councilman Scott Carrier expressed strong opposition to the Bass Pro development.

"If government is going to do incentives, it should be economic development and industrial recruitment, not retail," Carrier said. "This letter is indicative of some of the problems you face if you go down this road."

Councilman Sam Pendleton said he supports incentives for Bass Pro.

"Every time we give an incentive, it's going to come to local people to say what about me," Pendleton said. "Even if it's tongue-in-cheek, (retail incentives) are an idea that is going to come to the Shoals."

Hull Storey has invested about $10 million in renovations at Regency Square Mall since buying the property in late 2002. Those renovations include building a 12-screen movie cinema adjacent to the mall.

Gibson said those are retail renovations the city got for free, while Decatur is considering paying an almost $5 million taxpayer incentive for renovations to its mall.

Gibson said government subsidies for retail creates an uneven playing field. "I want my day on the field. I'm not afraid of losing. I just want to play."

Todd Twilley can be reached at 740-5728 or todd.twilley@timesdaily.com.