Cabela's Reassures City on Store Plans

By: AP
By: AP

An executive with outdoor retailer Cabela's has reassured Reno officials of its commitment to build a store in northern Nevada.
The Nebraska-based sports outfitting giant plans to break ground
in September on a 225,000 square-foot store in Verdi just west of
Reno along Interstate 80.
It's the company's first store on the West Coast.
During a meeting Wednesday, Mayor Bob Cashell and city council
members expressed concerns over rumors that Cabela's planned
another store in Vallejo, Calif., which would create competition
for the Reno store.
But Cabela's real estate director Kevin Rhodes said while stores
in California are on the drawing board, the company would not
jeopardize an existing store.
"Someday, we will open a store in California. I will tell you
that," Rhodes said. "Someday, we will have multiple stores to
cover the north, central California and southern California. With
35 million, it's a huge, huge market.
"But we have to be very, very careful. We are not going to
cannibalize an existing store."
The Verdi store expects to generate at least $50 million a year
in sales and employ 144 workers, according to a study conducted for
the city by Meridian Business Advisors of Reno.
The report said the store would have an economic impact of $261
million in drawing Californians for overnight visits.
The study is required for Cabela's to receive state approval for
Sales Tax Anticipated Revenue bonds.
Under state law enacted in 2003, Cabela's could keep
three-quarters of the sales taxes it generates to pay for
construction costs if it can show a preponderance of its sales
would come from out-of-state visitors.
Cabela's also would benefit in having most of its property taxes
put into a Reno redevelopment district created last year to help
build up the area.
The study says Cabela's passes the preponderance test. The study
found $34 million, or 68 percent, of its sales should come from
California.
Cashell said Cabela's is putting up the money to build the store
and would be repaid later with the sales tax proceeds.

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