Response to Paula

An earlier post generated this comment:

Paula said...
I have recently noticed that there was new construction on Eagle Drive next to Sonic. I was excited that there was the possibility of a new business or a restaurant. I was just informed that the community is to be getting another DOLLAR store. As there is already a dollar store not even a block away, I was a little surprised and more than disappointed. Can you please answer this question...when there are other needs in this community (grocery store, restaurants, etc) why and who planned the construction of another dollar store? I would appreciate a response. Thank you.

My response follows:

Hi Paula,

This is a good question and highlights some of the tension that exists with city planning, regulation, and land owner's rights, and the general interest of the population.

I have written earlier about market conditions in the City of Mont Belvieu. We are a quite unique community, experiencing a lot of growth and with great potential. However, the calculus that most businesses use to determine whether or not a particular location is quite complex. The community's desire to have any particular business is not a great factor in the overall success of the business, companies have learned. We may DESIRE all kinds of different things, but whether or not that makes business sense for a company, or whether or not they can justify the initial expense, is a matter of great concern for the company.

Many factors affect their decision, including proximity to other stores (Baytown's Garth Road, with all of the stores located there, is only 8 miles away), market saturation (there are a LOT of stores in Baytown), and - probably most important - local population. Most of the stores we would like to see, from restaurants to grocery to other things that would help our community, require a local population of about 30,000 people. We have about 4,000 in the City limits, while the area from which people could be reasonably expected to draw includes about 20,000... which is close, but not really close enough for most businesses. From conversations I've had with investors and developers, it appears that they are either waiting for Mont Belvieu to grow (in 5 or 10 years we will probably have the population in the area to support this kind of business) and/or they are looking for something that will be a regional draw - something that will bring people to the area from outside the normal shopping area, a destination store, where people would be willing to drive a long way to get there.

But ultimately, these decisions are marketing decisions. There are occasions when public/private partnerships are entered into in an effort to help bring new/desirable businesses to a community. This may be done for competitive reasons (we want them here rather than in a neighboring community) or for financial benefit (the business is a good fit, but lacks the means to get started in our community). We have not entered into any kind of agreement to support or discourage any kind of business. Thus, if any property owner on Eagle Drive wishes to build any kind of business (with a few exceptions - there are some things that are expressly prohibited on Eagle Drive) if they meet all of the applicable ordinances then the City must approve the application. A developer/owner of a particular parcel has a RIGHT to develop according to that developer's wishes, and the City really cannot do anything about it. Nor do we really want to - any/all business is good for the City: increasing tax revenue, providing jobs, offering product choice and competition. You may not like a DOLLAR store, but if they meet our ordinance we must allow it. Planning when done best provides for the greatest flexibility within limits, limits defined by the ordinance as a reflection of the City's overall goals and desires. Even the most restrictive/prescriptive communities of which I am aware must allow almost all business provided they meet the stipulations of that community's ordinance.

The choice of Family Dollar to locate in Mont Belvieu is a careful one. Family Dollars are located next to Dollar Generals all over the country and do very well. The owner of this store feels that he will do well, also, and fulfill a need in the community, or he would not even propose the investment. These kinds of stores seem to do well in communities like ours - small communities that are under-served in retail opportunities. I don't know how well Dollar General is doing, but it must be doing OK because they are still in business.

I hope that helps. I apologize for the length of the response, but I felt you deserved a complete explanation. If you would like to know more or have further questions, please stop by City Hall any time. Or you may call me at 281-576-2213 x 233. I would be happy to talk with you about this or any other aspect of planning in our community.