Retail Tenant Tax Incentives
On Wednesday the Wall Street Journal had an article (http://on.wsj.com/ksOW3K) about the impact defunct malls and shopping centers have had on their local communities and how communities have tried to remedy the situation. During the economic expansion in the earlier part of the century many retailers expanded vastly as Americans spent heavily on consumer goods. The results of economic expansion and growth of consumerism were malls, shopping centers and an over abundance of places for Americans to spend their dollars. Apparently the growth was unsustainable; however many communities relied heavily on the tax revenues from the retail. Many retailers have closed down due to declining sales during the Great Recession, and their closure has left dark many storefronts across America. Many communities are trying to cope with the shuttered retail by attracting new retail tenants with tax incentives in hopes generating future revenue and to remain vibrant and attractive. Although the reduction in retail may have visibly been attributed to the economic crisis, there are also other forces which have led to its downfall which has primarily been the growth of the internet. Shopping centers do have the advantage of providing tax revenue without burdening school systems and community resources from population growth, but communities have to find alternative avenues for growth and cannot rely on shopping centers for tax revenue.