Shopping center could hurt small businesses
February 17, 2006
One could hardly discuss the history of commercial development in the DeKalb and Sycamore area without considering the harm done to family-owned businesses.
This is shown through the drastic increase of national-chain retail shops along Sycamore Road and the harm it is causing to smaller shops in the downtown areas.
This trend is now likely to continue with the possible construction of the largest mall in Sycamore history.
The Sycamore City Council unanimously improved an annexation that, if approved, would lead to a mall comparable in size to CherryVale Mall in Cherry Valley.
Granted, there are some obvious benefits to the 750,000-square-foot shopping center, including the millions of dollars in sales tax revenue it is estimated to bring in for the city. This money ultimately would help relieve the property tax burden. As part of the agreement, the developer, First Rockford Group, will keep 50 percent of the sales tax revenue during the third through sixth years of operation. That amount drops to 40 percent for four years after the sixth year.
Also, the residential growth in the area shows the mall may be able to draw enough business to sustain itself. According to the U.S. Census Bureau, there was a 7.3 percent population growth in DeKalb County from 2000 to 2004. The mall could help keep county residents here, instead of sending them elsewhere to do their shopping.
These economic benefits come at a high price, however. Mom and pop shops that have given both cities that invaluable small town atmosphere die with every national retail chain welcomed into the area. Eventually, the problem arises where both cities cannot figure out whether they want to maintain the quintessential small town atmosphere or become more of a metropolitan Chicago-area suburb.
The Sycamore Council has exhibited some of this deviate behavior by allowing the mall, but also passing an ordinance on Nov. 21 geared toward slowing residential growth.
At one point, both cities will have to decide what exactly they want to be, and time is running out.