The big RDA question

When considering redevelopment projects such as the one that brought a Costco and other businesses to West Bountiful, the question isn't whether the city did anything illegal. Under state law, city officials most likely were within their rights to declare a bunch of existing businesses "blighted," even if they were legitimate, moneymaking ventures.

Nor should anyone question whether West Bountiful residents want stores such as Costco. Judging by activity at the new store, shoppers are happy.

But there is a legitimate question all Utahns, and lawmakers in particular, should be asking. Is it morally right to use taxpayer funds to yank a prime location from a hardworking business owner and hand it to another?

West Bountiful is only one example of several in the state. But as at least one of the displaced business owners there is considering a lawsuit, it makes for a good illustration. City officials have told this newspaper they worked hard to help the businesses relocate, yet two of the approximately 30 that once occupied the Costco site went out of business. Others may be following close behind. Still others say they remain profitable, but they report that sales are down so much they have had to lay off some of their workers.

Clearly, these businesses weren't hurting anyone at their former location. They had customers and employees. They were acting as responsible members of the community. Their offense was that they existed as a hodgepodge, without the benefit of coordinated planning. That and, of course, they didn't bring in the kind of sales tax revenue a Costco can provide.

Redevelopment projects may have some benefit if they attract new nonretail jobs from out of state, or if they revitalize a truly blighted ghetto or high-crime region. As a point of disclosure, this newspaper is a partner in a new printing press facility in West Valley City that is benefiting from RDA money.

But retailers generally need little incentive to build in a place where customers exist. Generally speaking, they don't add new money to a community, they simply help distribute what already is there.

In many ways, this is a systemic problem. Utah cities get to keep half the sales taxes generated within their border, which gives them an incentive to lure retailers, often from a neighboring city. Lawmakers need to think about that, too, when they begin meeting next month.