Where does all the money go?
In many cities across the Valley, governments have offered tax breaks and other incentives worth millions of dollars to developers who want to locate their business in sunny Arizona.
Supporters say the incentives are necessary to build a strong sales-tax base while opponents say the incentives end up sending sales tax dollars out of state and away from Arizona communities.
In 2003, Kimber Lanning started Arizona Chain Reaction, a network of local businesses that promote business independence and community development.
"Chain stores are bleeding our state dry," Lanning said in a telephone interview. "An Arizona company is going to spend money on other Arizona firms and it pays, even with packaging."
Lanning, who owns and operates two Stinkweeds Record Exchange stores in the Valley, says money is reinvested in the community when people shop locally.
According to Arizona Chain Reaction, for every $100 spent in locally owned business, $45 is reinvested in the state economy, compared with $13 from a chain store.
Mesa recently committed $35.7 million for the Bass Pro Shop at Riverview at Dobson, while Glendale is giving $16.7 million to house Cabela's, another large outdoor goods store.
Lanning said she is flabbergasted that this money is not given to local community businesses.
Cindy Dach, co-founder of Arizona Chain Reaction and owner of Changing Hands Bookstore in Tempe, says their goal is not to keep out chain stores, but to limit the millions of dollars in incentives.
"Arizona Chain Reaction in not anti-chain," Dach said in a telephone interview, adding, "all we are asking for is equality."
Aside from the economic impacts, Dach said it is important for Phoenix to develop its own personality through local businesses owned by local residents.
Dach said it isn't The Gap or an Applebee's that makes a great city.
"You can do that anywhere," she said, adding, "We want to live in a city that is unique, but more important than that, we need to be in touch with all that is here."
Dach, a former New Yorker, said Phoenix is expansive and that many people may not know where to shop.
Unlike in large East Coast cities, there are few generational businesses because many of the residents here are transplants or here temporarily, she said.
When asked about price variance between a local business and a chain business, she said it is about investing in the place in which you live and that, "maybe they are saving a dollar on a roll of paper towels, but what are they doing for their community?"
Today, Arizona Chain Reaction has more than 700 members.
Cities with similar organizations include Boulder, Colo., Santa Fe, N.M., and Austin, Texas.
Located in Chandler, Video Paradise has been open in the Valley since 1990. Owner Christina Metrialer said she values the support of the group.
"I like that they work on behalf of independence, they are building a united front for independent businesses to help to compete in this gurgling competitive world," Metrialer said.
In June, the Phoenix City Council approved a policy that would virtually end all sales-tax breaks, rebates and waivers for companies that want to build on the edges of Phoenix.
Lanning said the group plans to concentrate its time on fundraising and focus more attention on getting involved in the Arizona legislative process.
More information, such as a directory of member businesses can be found at the Arizona Chain Reaction Web site, http://azcr.org.
Reach the reporter at ian.schwartz@asu.edu.
