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Maroney Commons and Northern Beef Packers: Failures of Government Favor

Family Dollar plans to close about 5% of its 8,100 stores, leaving 370 empty concrete boxes littered across the country. Cheap plastic junk will continue to pour from so many other outlets that the economy will hardly notice. My only ache is that their closing will take that many more subsistence-level paychecks from people who need them.

Causing much greater ache is the failure of Maroney Commons in Howard. Dare I draw an analogy to Northern Beef Packers?

  1. Both projects depended on government funding to get going.
  2. Both projects were built on tenuous business plans (NBP assumed there was enough beef to process around Aberdeen that it could compete against the big meatpackers; Maroney Commons thought it could will into existence conference and tourist demand in the middle of Miner County).
  3. Both projects experienced noteworthy management churn (NBP experienced the SDRC Inc./EB-5 investor takeover during construction; Maroney went through a lot of staff during its operations).
  4. Both projects lasted about a year before capsizing.
  5. Both projects have sale prices of pennies on the dollar.

Chuck Clement reports what was circulating in public chatter: last week's attempted auction of Maroney Commons brought bids of $125,000 from a group of Madison investors and $175,000 from someone else. These bids are for a $6.5-million building. That higher bid is 2.7% of the construction cost. 24 hotel rooms, conference space, restaurant, fitness center, renewable energy systems... compare all those resources to what you'd get in a single-family house for that price.

But compare the utility you'd get from a single-family house almost anywhere in South Dakota to a big hotel in Howard. I want Howard and Miner County to grow and succeed just like every other community in the state... but when it comes to Maroney Commons, did our small-town boosterism cloud our vision to incontrovertible market fact?

I'm curious: looking at Northern Beef Packers and Maroney Commons, which do you think is more likely salvageable?

13 Comments

  1. Ashley Kenneth Allen 2014.04.11

    How much do you think the bids for the Thrift Store in Madison will be in one year? $25,000 ? I see a similar future. After all, Mr. Corbin said during the candidate forum that even if the thrift store goes under, at least we will have a new building on main street to sell. Maybe he knows something we don't.

  2. A couple days post election, I have people telling me that I did not "cheer enough" for Madison to be successful. As if we have to say "thank you" for every manufacturing job created before we can talk about retail development. The nice guys that had a platform of "everything is just great" platform won on Tuesday, so Madison must not be too concerned about the next boondoggle project, AKA the Thrift Store. If we really wanted changes in retail and entertainment, voters would have showed up. The people that voted on Tuesday wanted to continue the status quo and did not want to disrupt the current path. Thrift Stores are what we are good at, so let's build another one!

    In the "no investigative journalism or tough questions" Daily Leader our new Leaders were quoted saying:

    Corbin said that residents also wanted to discuss economic development. "I'm a fan of having stability to any economic development," he said. "I think Madison is on a growth path, and it seems to work for us. There are a lot of people working real hard to promote our town."

    According to Johnson, part of the challenge is to make certain that existing revenue is used efficiently.

    "I think that the current commission is doing that job well, and Madison continues to be vibrant economically," he said.

    Doesn't it feel good to live in Madison? Everything is so vibrant and everyone is working so hard to build more thrift stores!

    Sarcasm aside... the truth is, we have a boondoogle project going on in Madison. My hope is that the nice guy persona is just for the public and the two gentlemen elected on Tuesday will get to work, ask tough questions, and hold people accountable. Sure the price tag is not as big as Maroney or Northern Beef... but $700,000 is a lot of money.

  3. Maybe the we can put another Thrift Store in the Family Dollar building when that closes later this year in Madison.

  4. caheidelberger Post author | 2014.04.11

    Didn't cheer enough? What are we running for here, homecoming queen?

    Seriously, boosterism has its place. The first thing you need in any survival situation is a positive mental attitude. But cheering wasn't sufficient to make Maroney Commons or Northern Beef Packers work.

  5. Ashley Kenneth Allen 2014.04.11

    I am just not that good at putting makeup and pretty dresses on to make something look prettier than it really is..... No crowns for something that is flawed. We can dress a thrift store up in a new building and fancy marketing, but it is still a thrift store, not a Sacs Fifth Ave.

    I can at least stand proud that I say what I mean and mean what I say. I do not suck up to or shower praises on the power players in this town. I give credit when it is due, but I am not afraid to offer constructive criticism when it is needed. Many I talked to appreciated that philosophy.... Not enough showed up to the polls.

    But as you asked Mr. Corbin the other day, I think we should ask all of the commission. What will you do in the first 100 days? More of the same or a new path? From what I read in the paper, I think we can expect more of the same. How about another thrift store... Maybe one with a drive-thru window.

  6. Jennifer Wolff 2014.04.11

    But they are calling the thrift store Community Treasures, so that has to be true right?? Do you mean to suggest it will be full of the second-rate castoffs ppeople are unable to divest themselves of on RecyclePath? (Side note, I actually do enjoy shopping at thrift stores, but boy do I ever loathe empty marketing clichés.)

    Constructive criticism should be a welcome and encouraged part of every evaluation process. Of course I like hearing good things about myself when I've done well, but I also want to know what I can do to perform even better the next time. The ratio I've learned for giving effective feedback is three positives for every negative. Unfortunately, most people would rather plug their ears and sing "la la la" than acknowledge their shortcomings.

  7. Michael B 2014.04.11

    You forgot Solyndra where the White House ignored DOE warnings about financial doom.

  8. Wade Brandis 2014.04.11

    I wonder what effect the new Madison community thrift store will leave upon the Four Seasons Flea Market. While I was attending DSU, I made Four Seasons one of my shopping destinations downtown. I remember when the original Madison Community Thrift Store was being considered back in 2012, the owner of Four Seasons was against it with bright, clear protest signs in the windows. I saw a news report on TV and read another story on this blog. As for the recent developments, the owner hasn't publicly said anything.

    As for Family Dollar and other shops... certainly they have their share of cheap plastic junk, but often you can also find name brand products there for a good price compared to ShopKo or Sunshine Foods. Important if you are a college student on a budget, like I was.

    I have since moved back to my hometown of Winner, but I would imagine if either the Madison or Winner Family Dollar stores end up on the closure list, it could get replaced with a Dollar Tree, where everything is $1 and product quality is even more of a concern. Both towns already have a Dollar General, which is basically the same thing as Family Dollar.

  9. Charlie Johnson 2014.04.12

    With Maroney Commons(MC) ---It's time to think out of the box. With the amount of federal dollars already spent on the project, it's time for another level of government(state of South Dakota) to take charge. Within legislative District 8, if we can secure the purchase of the Madison Hospital to bring about some exciting changes, so can positive change come to MC. The state of SD should take ownership and provide a conference/training center for all or many existing state level/ higher education employees. I remember the days when SDEA convention meant several days off from school in the late fall when the teachers of SD met in person to discuss teacher business. The MC could provide a wonderful conference/retreat setting for small groups of teachers which could meet regularly to share information and experiences.

  10. mike from iowa 2014.04.12

    Haven't heard from General Kai-Shek/Walmart 99 Cent Walton Family Bargain Basement Chinese Stuff Thrift Store chain yet,have you? If there is a dollar out there on mainstreet 'murrica,the Walton's figure it is theirs.

  11. caheidelberger Post author | 2014.04.12

    Charlie, can MC compete with Cedar Shores and the Ramkota empire for conferences? Can it compete with Buffalo Ridge up in Gary?

    I want to find a good solution... but looking just at word choice, Maroney Commons was very much a product of thinking outside the box. Did we think too far outside the box in the inception of that project?

  12. Charlie Johnson 2014.04.12

    The state doesn't own Cedar Shores, Ramkota empires, or the facility in Gary. Total up spending by all state agencies on conference rental/motel expenses and I'm sure owning/running a facility like MC is far cheaper. State employees may not like venturing to Howard for several days at a time but !!!!!

  13. Nick Nemec 2014.04.12

    Cedar Shores, isn't that another example of State government "economic development" money through either loans or grants helping private business? Additionally how much gas tax money has been spent building the nice paved road with adjacent concrete bike path the 1-2 miles from the old Missouri River bridge to Cedar Shores?

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