Taking Requests: Range Retail Rumors

How about commenting on all of the rumors in Hibbing. Every time you turn around there is another rumor about Target, Sam’s Club, Best Buy, Scheel’s etc. etc. The list goes on and on. Being a “Man in the Know” Maybe you could shed a little light on these rumors.

A good question. Here’s one thing I do know. When the end times come, the only life on the Iron Range will be soft, green lichens clinging to the sides of the mine dumps feeding off the pure carbon dioxide of the air and the dim light of a dull, red, motionless sun that hangs low in the horizon. There will be no wind or sound. The air will be cold but the ground strangely warm to the touch. And one day, one lichen will say to another lichen, “I hear we might get a Target.” “Yeah,” the other lichen will say. “I heard that, too.”

I’ve heard all these retail rumors and have seen the posts on Range gossip sites like this one. I don’t have any inside information other than what I’ve heard from various economic development types over the years. Range cities, Iron Range Resources and others will receive inquiries from all kinds of companies (Yes, including Target, Kohl’s and you name it). Information is provided to these companies about zoning, traffic, population, incentive programs and the like. Then companies work in secret until the moment they begin the construction process, which usually comes in the form of a request to the zoning commission or the signing of a lease. In advance, property is usually purchased or held by some kind of real estate company until the final decisions are made. There are many lots in Hibbing currently held by third party companies while these big retail outfits decide if they’ll build there or not. That’s what fuels all the rumors, coupled with the fact that many companies go so far as to send officials to town to investigate (eg: “OMG, a guy from Kohl’s totally stayed at the Super 8 last night!”)

I’ve heard recently that some retail stores looking at the Hibbing area are very close to making a decision (I’ve heard Target, I’ve suspected Sam’s Club because of some market research that was being conducted at the Hibbing Wal-Mart about a year ago). But the really good information isn’t held in any city hall; it’s held in the board rooms of these private companies. And if things move slowly I’m betting that the current economic fears seen across the country are only making them move slower. Word is that Lowes, which built a home improvement store in Hibbing last year, is under performing. That might just be the economy as I’ve heard from Range contractors who aren’t getting nearly as many bid requests for next summer as they have in years past. That’s based on anecdotes, not evidence, but it’s a working theory.

Speaking of the global economic crisis, I’ll visit the issue of the delay in the Minnesota Steel project near Nashwauk in my next “Fill a Request” post tomorrow. Don’t worry, folks. These glum subjects don’t have to depress us. Everything will be OK so long as Busch Light remains affordable.