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The case for a Carrboro Costco

Posted on February 11, 2010 by Staff

Ellie Kinnaird

There has been discussion recently about whether a Costco located in Carrboro would have a detrimental effect on our community. I believe, to the contrary, that a Costco would answer a serious Carrboro (and Orange County) problem while upholding our core values. How can that be when all big-box stores are seen as evil and destructive to a community?

Here is the argument for a Costco in Carrboro.

Homeowner taxes in Carrboro are so high, they are driving our low-income people out, especially our black community. Without expanding the commercial tax base, our taxes will continue to go higher, driving more lower- and moderate-income people from Carrboro. The proportion of property tax paid by residents as compared to businesses is out of balance, with single family carrying 71.43 percent of the burden, multi-family 14.68 percent, and only 9.23 percent from business sources. If we do not address this with a larger commercial tax base, we will become a more and more elite community. That violates a core value of Carrboro and Orange County for a diverse population.

There is a fear that a Costco will drive out our small businesses. But much of our business base is comprised of very small specialty stores. While we are fortunate to have a range of unique small businesses, they are unable to generate a significant proportion of our sales tax. But most importantly, Costco is not in competition with its high-quality, specialty items.

We talk a great deal about paying a living wage, not just a minimum wage. Most small businesses, even though they are dedicated to their employees, cannot pay a high wage. Costco, on the other hand, pays $18 an hour and more, for a living wage.

Further, most small businesses, though they wish they could, cannot offer health insurance to their employees. Costco provides health insurance for all part-time and full-time employees. Our community believes that no one should be uninsured. Costco fits into our value system for health care for all workers.

Costco is committed to social justice and the environment, which we in Carrboro value.

While we have a low unemployment rate, there are many, especially at the lower wage scale, who are unemployed. A Costco would provide many jobs to that population. Again, a core value of our community.

Thousands of people in Orange County drive to the Costco in Durham, thereby polluting the air and causing environmental damage. Some years ago, New Hope Commons was proposed to go on the Chapel Hill side of Interstate 40. It was rejected, and the sales and property taxes went to Durham. The pollution and tax burden on homeowners and renters stayed here.

Finally, we are urged to buy local, but the fact is that thousands drive to Costco every day for those items not available here. I do all the shopping that I can in Carrboro – Weaver Street Market, Harris Teeter, Fitch Lumber, the PTA Thrift Shop and all the fine small stores, coffee shops and restaurants. The loan to Weaver Street Market that enabled it to start up and flourish was approved at my first meeting as mayor. As mayor, I worked hard to build up the business community to its present vitality and revived the merchants association; I was instrumental in saving The ArtsCenter; along with other great supporters, started our library; and I obtained the funds for the Farmers’ Market facility. I love Carrboro and want it to continue as a robust and attractive place, but I don’t want it to become an elitist enclave without a diverse population.

Enhancing our tax base with a Costco would be a start to relieve the homeowner’s tax burden and to promote our values as a whole community welcoming all walks of life.

Ellie Kinnaird represents Orange and Person counties in the North Carolina Senate and is the former mayor of Carrboro.

6 thoughts on “The case for a Carrboro Costco”

  1. Vicki Boyer says:
    February 12, 2010 at 7:41 pm

    Senator Kinnaird is right on in her appraisal of the benefits a Costco store would bring to our community. Carrboro needs jobs and increased tax revenues. And we need them badly. In addition, Costco offers us the opportunity to buy items not otherwise available locally. There should be no reason to turn away such a valuable opportunity for our town.

  2. Patti Caldwell says:
    February 13, 2010 at 2:22 pm

    Seriously, there is discussion about a Costco in Carrboro? I’d like to believe that’s true. If anyone thinks there is something un-Carrboro about allowing a large employer / retailer / volume discounter to be part of our community they need to think again. Why? What she said….

  3. Charlie Buckner says:
    February 14, 2010 at 5:59 am

    Thank you for writing this, Ms. Kinnaird. Where in Carrboro are the most likely places for a Costco? Do you know if the Costco folks have any interest in building a store here?

  4. Chris van Hasselt says:
    February 14, 2010 at 7:16 pm

    I’ve wanted to join Costco, but I don’t want to drive to Durham; too far to drive! Is this seriously being considered?

  5. BrianR says:
    February 15, 2010 at 1:33 pm

    Senator Kinnaird,

    Can you provide research that shows residential taxes would be reduced or remain the same if the commercial tax base is increased? As a member of the local business community I’ve asked this question of several local elected officials. One commissioner pointed me to a study that says additional commercial taxes to the County would NOT significantly decrease residential taxes.

    I share your concern that many people are priced out of our Towns. Plus I agree that a diverse group of businesses of all sizes helps our community. But until I see more data to back up the assertion that commercial taxes will lower our residential taxes I will remain skeptical.

    Open minded and respectfully,

    -Brian Russell

  6. Jasper Rains says:
    February 16, 2010 at 11:30 am

    I don’t think a Costco will result in immediately lower residential property taxes, but it will most definitely raise revenues for the town. Ultimately, this will pay benefits for the community either in terms of lowered (or not raised) taxes, and/or increased (or not decreased) services.

    I live outside of town and work inside of town. I spend virtually no money in Carrboro except for groceries and gas because a) the stuff I need isn’t for sale in Carrboro, and b) the stores aren’t generally competitive with retailers outside town. If there was a Costco in Carrboro, I would spend several thousand dollars a year in Carrboro that I currently spend elsewhere. If you assume I’m not unique, there’s a lot of revenue to be captured by the town if there is a suitable retailer. And the fact that Costco is a politically palatable company is a big bonus.

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