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Bedford Bulletin - Bow Times - Goffstown News - Hooksett Banner - The NH Mirror - Salem Observer
Updated: 06/22/06
HOOKSETT

Working it out
E-mails point to trouble for Cabela’s with council

By Nicholas Brown
Staff Writer

At least one Hooksett town councilor and one councilor-elect have considered willfully obstructing outdoor retailer Cabela’s from moving into town, according to a series of e-mails provided to The Hooksett Banner.

Authors of those e-mails have since said some of their messages were written in haste and out of frustration after last month’s controversial vote on an $18 million tax zone, and also said they now plan to move forward in negotiations with the Nebraska-based retailer.

On May 9, 61 percent of voters approved a warrant article authorizing the town council to bond $18 million for public infrastructure and improvements directly related to a private site off Interstate 93’s Exit 11.

The tax increment financing, or TIF, plan would use tax revenue from within the 150-acre tax zone to pay off the 20-year bond.

Cabela’s plans to build a 130,000-square-foot retail story on 50 acres there, and proponents of the $18 million plan have said the company’s “destination retail” operation could spur a slew of nearby commercial developments.

On May 26, Pat Rueppel, a former town councilor who again won a seat during last month’s voting day, wrote in an e-mail, “I hope we can stall this because if road blocks are put in Cabela’s way, they will bolt.

“Manchester, Concord and Tilton want them,” the message continued.

An e-mail from Town Councilor Jason Hyde asks, “Short of a court order, this thing cannot be stopped, and so what do we do?

“Frankly I’m so frustrated that I’m tempted to play the obstructionist role, but then I think of my capitalist convictions and I think I should really just try to remove any roadblocks that our wonderful government might put in their way,” the message continues. “I’m of two minds and I haven’t decided what to do yet.”

When interviewed, Rueppel and Hyde each said they still have concerns about the TIF plan, but in no way plan to use their positions on the nine-member council to thwart it all together.

“There is no way I plan on sabotaging this,” said Rueppel.

Rueppel said she’s been doing research since last month’s vote, and said she’s intent only on making sure the TIF plan doesn’t put Hooksett residents at financial risk.

“This cannot cost the taxpayers,” she said.

Cabela’s, which regularly looks to communities for tax breaks when starting a project, has signaled an intention to purchase the $18 million bond, and company spokesmen have said taxpayers only serve to benefit financially from the new developments.

Leading up to the vote, opponents of the plan described the TIF arrangement as a subsidy, and many have questioned when, if ever, taxpayers will see spoils after fronting so hefty a price tag. Hyde said his e-mail was out of frustration after the vote, but said said he’s now “ready to do what I can do to get the best deal possible.”

Hyde said he’s primarily concerned that tax revenue from within the TIF district won’t generate enough money to cover bond payments.

Cabela’s representatives have said the company would offer to cover the shortfall in such an event, but have also said they would hope to collect tax revenue generated in later years to recoup the expense.

“By the town’s own estimates, it’s a minimum of five years before we see dime one,” said Hyde. “I just want to do what I can to get the best deal possible.”

Another e-mail in the string comes from David Ewald of Ewald Consulting, a Minnesota-based firm. Ewald said he’s been retained by the developer of Gander Mountain retail stores, which often compete with Cabela’s.

Ewald said his message was sent to two Hooksett residents, neither of whom are councilors or councilors-elect. Yet he also said he was put in touch with the residents through a councilor-elect.

In the message, dated May 25, Ewald wrote, “I still think it’s possible to stop this deal or at least make it better for the people of Hooksett. It seems to me the most important thing that has to happen is that the necessary deals CAN’T take place before the new council is seated on July 1. You have a better chance with the new group.”

Later in the message, Ewald writes, “it is not too late to get the town activated. Why not keep pushing to get more people worried, mad, upset, etc. and get them to attend town council meetings, call councilors, etc.”

Ewald said his firm has been working around the country since September to spread a message that local and state governments giving huge tax breaks to private developers is unfair.

“Cabela’s is very good at shaking down sums of money,” Ewald said in a phone interview. “They do that by going into these small towns.”

Town Council Chairman Mike DiBitetto, who has been outspoken in favor of the potential partnership with Cabela’s, said he’s discouraged by what he perceives in the recent string of e-mails as an organized effort to thwart the TIF plan.

“It very much sounds to me like a conspiracy of sorts,” said DiBitetto. “There’s clearly an organized effort now.”

DiBitetto said the e-mail correspondents are “fully entitled to their opinion, but there does come a point when they’re crossing the line.”

Town Councilor Paul Loiselle said he’s confident negotiations with Cabela’s will move forward, even though the council will have three new members beginning July 1.

“I think the councilors, as a whole, have the best interests of the town in mind,” he said. “That will prevail.”

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