I don’t see it as a back up plan. You present the deal and whomever closes first wins. Multiple negotiations exist in projects this big. And, everyone always has an out. It’s business.

N,

Exactly. I get tired of people suggesting that business who come to Harlem are doing us a favor. They are not giving away anything.

It’s a mutually beneficial relationship.

April

In your own blog on 3/3/2008 you mention this deal. And at that point it was still a deal between Home-depot and Target.

I disagree. They did not come just because of the incentive.They realized the value of the location just as many have recently realized the value in Harlem from a location point of view.

In regards to building in a more lucrative market, in NYC where space is a premium, income demographics are the least of most retailer’s concerns. For the amount of space need for Costco to come to NYC, there are very few other places in Manhattan that could accommodate its needs.

The project should be win/win for everyone.

Also, I’m sure Costco checked their membership records and saw how many people from Harlem and other NYC neighborhoods cross the bridge daily to go to Costco in NJ.

They are not a new company to many people in Harlem.

Finally, no one is forcing them to take the tax/grant incentives. They can give them back and continue to do business as they wish.

Costco was GIVEN the $55 million tax break as an incentive to build in Harlem. If they were not given that tax break they would have built the store in a more lucrative market. The powers-that-be put that deal together as part of rezoning Harlem. Costco’s business model is out of place in the EAST HARLEM location.

And if you recall, they were going to put a TARGET in that location, but the deal fell through. Costco was a SECOND choice. The original plan was to put a HOME DEPOT and a TARGET but TARGET pulled out and developers had to scramble to find a second “anchor” store to complete the deal.

So back to my original statement…if I was Costco I would not take food stamps, it doesn’t fit into my model. If you ask me to come into YOUR neighborhood to save your deal then you loose bargaining power on how we structure the deal.

But again,this is just my opinion. (But the facts of the deal are true facts…Google it)

I’m all for free enterprise and believe that private companies should operate their businesses however they want, but once you take public dollars you have to be accountable to the public.

If Costco doesn’t want to take food stamps they should cancel the $55 million deal that they made and continue to do business as they wish.

Generally, I think it’s funny that Costo reps think food stamp shoppers don’t buy in bulk. Clearly they have never been in a supermarket at the first of the month where you can find folks with not one, but two carts filled to the brim with food items. Besides, I think food stamp shoppers will be a small portion of their clientele. Most people will be in there spending cash. I’m tired of businesses acting like poor people’s money ain’t green.