Discussion about this post

User's avatar
Madeline Solomon's avatar

Is Windsor a city in decline, as indicated by having a grocery outlet? Is Sebastopol "better" because it has chain stores like Safeway, Lucky, Rotten Robbies, Starbucks, CVS, but no Grocery Outlet? What an odd concept :) The way I look at it is that Grocery Outlets are local franchises, that offer great shopping, good prices and help prevent food waste. Folks who travel to shop at Grocery Outlet in Windsor, Rohnert Park or Santa Rosa, might travel less far to shop at a Grocery Outlet in Sebastopol, this helping your City of Sebastopol tax base and perhaps reducing greenhouse gas emissions a little. It would be different if you didn't already have Safeway and Lucky and CVS and hotel etc chain businesses in town ... I say get real and support your broader community as well as your little City. Really sad when Sebastopol elites are supporting commercial vacancies and urban blight instead of bringing in local franchise competition to your chain Grocery stores and helping prevent food waste.

Kent Jenkins's avatar

Unless a Sebastopol store sources all its product from Sebastopol, only hires city residents, and is 100% city resident owned, some part of their non-tax revenue leaves the city. If such a store exists, it's probably artisan based and contributing modest taxes to the city. There just aren't enough of these kinds of businesses to fully support the diverse needs of our city.

The other end of the scale is a fully corporate owned chain store, selling globally sourced products, extracting a lot of its revenue to outside the city, the county, and often the state.

Everything else is a matter of degree between those options.

It's likely that a majority of Sebastopol city businesses aren't owned and managed by Sebastopol city residents. They come from all over West County and beyond. Ownership $ already leaves the city limits and is spread to a larger area. At what geographical point is that ownership too far for comfort?

Profit sharing has to do with what is left over, after paying expenses such inventory and wages. Really, what we are concerned about in this local debate is whether wages and ownership monies stay and get recycled into our local economy. Employee and Management income are expenses. They get paid to locals prior to there even being a profit.

Profit sharing (like the GO model) is a useful way to have outside-of-the-area-products sold in a way that keeps some of that profit in the local community. The alternative is that all profits leave the area in a fully corporate owned model, or we add an additional layer of local ownership which will be reflected in more expensive products. I can't speak to the specifics of the GO arrangement, but profit sharing is often accompanied by shared services, where local management benefits from bulk purchased centralized systems and administration.

Sebastopol has real needs that can only be addressed by a flourishing and diverse business community. On the surface, GO looks to fill an empty storefront, add to the tax base, hire local workers, and insure significant local ownership and control. From an economic view, it has a lot going for it. Does it fit our collective imagination of our local town character? That's a fair question. That's what this debate is really about.

4 more comments...

No posts

Ready for more?