I stated in a letter to the
editor months ago that traffic was my number three reason for not wanting
the big box stores and that increased crime was my number one reason.
I will tell you today that my number two reason was the negative impact
on the small business sector.
I will give you the case study
of Hearne, Texas. Wal-Mart came to Hearne with a great deal of civility
and a basket full of promises. There was great excitement radiating from
Chamber of Commerce and various elected officials. However, the thrills
were short lived.
Wal-Mart began utilizing predatory
pricing. According to a Hearne Wal-Mart employee, Ms. Edna Vinton, the
manager of each department was required to do "comp pricing"
(going to the competition's store and finding prices on comparable merchandise).
Wal-Mart would mark the comparable merchandise below the small business
retailer's price. In turn, the small retailer would lower its price. Next,
Wal-Mart would make a drastic reduction in the prices and force the small
retailer out of business. The multi-billion-dollar Wal-Mart was financially
able to forego short-term profits until the small retailers went under.
Hearne lost a great number of its "Main Street" small businesses.
To make matters worse, Wal-Mart
later abandoned Hearne for another site 20 miles away and the city's tax
base fell to the floor and vacant retail space was overly abundant.
I have read enough case studies
to know that the fight I waged against the current administration's effort
to allow big box retail in Peachtree City was a valid attempt to protect
certain parts of our small business sector.
Let's face the fact that even
without the big box competition, it is tough operating a small business.
First, Georgia is ranked 23rd in the nation in small business survival,
according to Chief Economist Raymond J. Keating. In addition, it is difficult
finding employees in Peachtree City without paying above-average wages
because of the small labor pool. According to the Georgia Dept. of Labor,
the unemployment rate in Fayette County, as of May 2001, was a meager
1.7 percent.
A recent survey conducted by
the National Federation of Independent Business (NFIB) found that small
business owners ranked availability of labor as their second highest concern
behind taxes.
Taxes are an issue in Peachtree
City. Peachtree City is only one of two municipalities in the metro area
using occupational taxes. The current administration has consistently
placed an unfair tax burden on our small business owners by capping the
maximum tax paid by larger entities. Thus, the small business with 10
to 20 employees is "taxed out" for every employee while the
larger entities only pay up to the capped threshold and are discounted
for the remainder of their employees.
The U.S. Commerce Department
reported in July that our economic growth has hit an 8-year low and consumers
are beginning to hold back on spending. The NFIB survey revealed that
poor sales was the third greatest concern of small business owners across
the country.
As if our small business sector
did not already have enough pressures mounting upon them, we allowed multi-billion-dollar,
predatory-pricing wolves to come to town. I fought hard to prevent this
from happening and we missed it by one council vote. By the way, where
was Mr. Wellman?
Have you noticed that outside
of the Wal-Mart in Newnan looks like a dreadful flea market? Have you
noticed that the Home Depots in our area pile tons of merchandise out
in the parking lots and front curbs for sale? They never seem to bring
up the fact at the Planning Commission meetings that they plan on using
around 20,000 square feet outside the store to sell merchandise. This
type of merchandise pollution would detract from the character and charm
of our community.
I initiated the changes in
our ordinances, passed by the City Council, to ban this type of unsightly
mess from happening in Peachtree City. Where was Mr. Wellman?
I initiated the movement for
a big-box ordinance in Peachtree City after reading many books, conducting
web searches and speaking with national experts. The ordinance passed
but was blemished by some political wrangling by Mayor Lenox. Where was
Mr. Wellman?
I have been persistently imploring
the Peachtree City Development Authority to get back on track and resume
looking out for business interests in Peachtree City and not managing
recreational venues. Finally, we are seeing new blood on the Authority
and the focus is beginning to change. Again, where has Mr. Wellman been?
To my small-business-owner
friends, the Fayette County Development Authority is sponsoring a seminar
entitled "Competing in the New Economy" on Sept. 26. The course
deals with competing against big-box retailers. To reserve a spot call
Kelly with the Development Authority at 770-461-5253.
Mr. Wellman is broadly pronouncing
that he will hold an "economic summit" and a "roundtable"
after the election. This sounds like President Bush heading to the World
Trade Organization conference. Can we expect the same mediocre results?
I will stand on my past record
of defending small business interests. Further, I will work to level the
playing field on taxes. In addition, I will ask the City Council to initiate
a program asking that all city departments set goals to award a percentage
of the total value of all contracts or purchases to locally based small
businesses.
I will very proudly lend myself
as mayor to promote, on site or off, small businesses in our community.
I will work with the city and county development authorities on assisting
our small businesses and attracting state and federal funds to that end.
The best environment for entrepreneurship
consists of low taxes, limited government, helpful regulation and government
protection from increases in crime. You the voters can decide in November
on whether you want a summit and a roundtable or if you want someone who
is willing to get involved and work on solutions.
Steve Brown
Peachtree City
[Brown is an announced candidate
for mayor of Peachtree City. The Citizen welcomes letters from candidates
for all local offices and from citizens commenting on the candidates and
issues raised. We will print the letters from candidates and a representative
sampling of others subject to standard editing practices for length and
conformity to libel laws, until the week before the election.]






Easy button Return it to long suffering taxpayers including those who have paid huge tabs to educate other people's kids…