# Scheel: Cabela's deal isn't fair



## Bob Kellam (Apr 8, 2004)

Scheel: Cabela's deal isn't fair

By Dan Daly and Scott Aust, Journal staff

RAPID CITY -- The day after the Rapid City Council voted to give outdoor outfitter Cabela's $2 million and the 30-acre Black Hills Visitor Information Center site to bring a store to town, the operators of the center sounded a conciliatory note.

However, Steve D. Scheel, chief executive officer of Cabela's rival Scheels All Sports, was not so conciliatory.

And Mayor Jim Shaw, in comments during the Monday night council meeting, launched what seemed to be a preemptive strike against critics of the deal.

The Black Hills, Badlands & Lakes Association operates the visitor center and houses its offices inside the building. The group pays no rent but, it does cover the building's expenses.

The Cabela's agreement would set aside 5,000 square feet of space inside the 80,000-square-foot store for a visitor center. BHB&L would probably operate it -- but Shaw said Monday night another group could step in.

Regardless, the tourism agency will have to find a new home for its office. Before Monday night's vote, BHB&L went on record opposing the deal. But Tuesday, association chairman Brian Boyer said the agreement is workable.

"We're looking forward to working with the city of Rapid City," Boyer said. "They've been good landlords for us, and they've run a nice facility. This is such a good opportunity for Rapid City, so we all have to work together and move forward."

He noted that the deal includes free rent, free utilities and $500,000 for finish work on the center interior. Boyer also hopes to put up more signs on the interstate to increase traffic to the center, even among tourists who don't plan to shop at Cabela's.

At the council meeting, Shaw said that the current visitor center has not served the tourism industry. "It's been a dismal failure," Shaw declared.

Shaw said a center inside Cabela's is bound to do a better job. The current stand-alone center saw about 60,000 tourists last year, a small fraction of the estimated 5 million tourists who visited the Black Hills, he said.

There have been projections that as many as 1 million people a year will likely visit the Rapid City store. Cabela's stores are billed as "destination retailers," tourist attractions in their own right.

It's unclear what the breakdown between local shoppers and out-of-town visitors would be. Meanwhile, Cabela's is building more stores in the region, and it's also unclear whether the Cabela's name will continue to be a tourist draw.

Last week, the Billings, Mont., city council approved a rezoning request from Foursquare Properties, Cabela's land-development partner, to build a Cabela's-anchored shopping center in Billings.

That means the Rapid City Cabela's will be 230 miles from the Sidney, Neb., store, 374 miles from the Billings store, and 277 miles from the Mitchell store.

Scheel, whose Fargo, N.D., company plans to build a 100,000-square-foot sporting-goods store across Interstate 90 from Cabela's, complained that Rapid City is giving Cabela's an unfair financial advantage.

"We've been in Rapid City for so many years. We're building a bigger building, and we're going to employ more people than Cabela's. We've always been a good community citizen in Rapid City. ... It's almost like a slap in the face that they would give this (deal) to our No. 1 competitor," he said.

The developers of Rushmore Crossing have been approved for tax increment financing worth $20 million, including interest, over the life of the TIF. The money will be used to cover street construction and other development costs. Scheel insisted that Scheels All Sports, one tenant in the sprawling development, is not receiving any direct subsidy from the city.

Shaw, however, disagreed. And he also said Scheels is welcome to propose its own deal.

"Scheels has never approached us. I will mention that Scheels as part of Rushmore Crossing is the beneficiary of a $20 million TIF that the city council has already approved," Shaw said. "To say Scheels is not benefiting from tax money is ludicrous. Nevertheless, if they'd like to propose something similar to Cabela's, bring them on."

Since details of the agreement first emerged in March, Shaw has argued that the 30-acre visitor-center site would better serve Rapid City as a tax-generating commercial development than a city-owned mostly vacant lot. Cabela's will generate as much as $3.7 million a year in sales tax receipts, according to one estimate.

Contact Dan Daly at 394-8421 or [email protected]


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## WingedShooter7 (Oct 28, 2005)

scheels should of built a bigger store many years ago the store currently in the Rushmore Mall is very small with little hunting selection. Cabelas...and scheels will both do good. Cabelas is Hunting/FIshing/Camping mostly. Scheels as it does have a large selection of hunting stuff when the bigger store will come i think they will do good because they have all that stuff (in a smaller selection) plus Biking,Golf,and alot of other outdoor/sport gear.

Just my 2 cents


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## tb (Jul 26, 2002)

Personally, I hate corporate welfare. So, I'm totally against giveaways to any company. But, as far as Steve Scheels is concerned, I mean, cry me a river.

How many local sporting goods companies has he put out of business? I can name 4 or 5 in Bismarck-Mandan alone. Big dog eats the little dog. So, quit yer b$tchin'. What goes around comes around.


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## Old Hunter (Mar 8, 2002)

The contributions that Scheels stores make to the communities of the midwest is simply amazing. I live in a small town in central ND and they donate to a function in our community. Living in Fargo for many years I had they opportunity to see many of the things that Scheels stores did to inrich the lives of the general public. Young and old,rich or poor, hunters or bird watchers, tens of thousands of people have enjoyed the contributions these people have made to many great causes. There is no doubt that the amount reaches into the millions. I have no idea what Cabelas does for the people in the areas where their stores are located but I cant imagine that it compares to what Scheels contributes. There are several of their stores in SD maybe those folks should take a look at what has been done for them.


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## WingedShooter7 (Oct 28, 2005)

After cabelas moved into Mitchell the town has seemed to boom.

You bring in a Big Dog...other dogs will follow. :wink:


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## fargojohnson (Oct 17, 2005)

I dislike scheels. Like you said cry me a river. Build your builing and shut up.


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## The Norseman (Jan 8, 2005)

All is talk right now, like always. We have a new Mayor Mr. Hanks.
I'm sure this situation will come up to a vote. After all this is the 
people's land.

As for Scheels, they sit there with the same guns, same fishing stuff, 
same everything week after week, really boring. Hey, but the clothing
does change.

As for the Information Center, every time I go past it there's only about
5 vehicles there anyway (get rid of it).

Cabela's will prevail any way and be good competation.


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## Horsager (Aug 31, 2006)

TB, Name the 4 or 5 stores Scheels has put out of business in Bismarck. I lived there until I was 21 and I get back there every couple weeks for work.

Marv's? The sporting goods side was the only money maker under that roof (the small engine repair turned a bit of profit too), the hardware side drug that store down, I heard that from Bruce more than once.

TON? Nice enough guys but their idea wasn't nearly well enough capitalized, that was evident after they'd been open just a few months.

Gerell's? They seem to do fine in Grand Forks with Hockey stuff, they only carry guns at the Devils Lake store, and that inventory has seemed to dwindle over the years, but I only stop a couple times each year.

I worked at Scheels in Grand Forks when the Cabela's was opening in EGF. I heard all the "They're going to put you out of business" talk, and the "you're going to have to lower you're prices" talk. None of this was true and both stores benefitted from the increased traffic.

This whole bashing the retailer (take your pick which one) is most generally caused by the person doing the bashing. I spent 10 years in retail and I can say to the folks that "hate" or "dislike" one store or the other, most likely, the feeling is mutual and they're glad you stay out.


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## MossyMO (Feb 12, 2004)

I have not been in an outdoors sporting goods store I have not liked. I have been treated decently and equally by each and every one of them. Quite honestly, if I dig into my memory, I know I can come up with at least one good customer service story for each of them that I have made purchases from. These stores will not stay in business without us and do not think each of these stores management teams do not know this.

I do feel in the last 4 years Scheels have stepped up to and beyond the plate when it comes to customer service and their prices have become much more competitive.

Also, in each and every store you have to watch for the sales and clearance priced items. Or maybe that is just me, I hate going to the mall with he wife to shop, but I sure love shopping outdoor sporting goods stores !!!


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## always_outdoors (Dec 17, 2002)

Wasn't it Steve Scheels who went behind the resident hunters backs and sent a letter to all of our legislators stating how he couldn't care less about resident hunters and only cared about non-resident hunters? He provided some very "fuzzy" math on how ND sportsmen don't support his store, but how NR's did.

Not trying to start an NR bash here, but I believe he has spat in the ND hunters face a few times now. And now he complains that someone is spitting in his face?

Sounds to me like he is whining again.


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## g/o (Jul 13, 2004)

Live, Again you haven't got a clue what your talking about. Steve Scheel is about as fine and generous man that you will ever meet. Yes he like many others in this state doesn't want to see restrictions on N/R hunters. If you had any concept of business you would understand why he is complaining. Grow Up!!!!!!!!!!!!!!!!


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## nodakoutdoors.com (Feb 27, 2002)

live2hunt said:


> Wasn't it Steve Scheels who went behind the resident hunters backs and sent a letter to all of our legislators stating how he couldn't care less about resident hunters and only cared about non-resident hunters? He provided some very "fuzzy" math on how ND sportsmen don't support his store, but how NR's did.
> 
> Not trying to start an NR bash here, but I believe he has spat in the ND hunters face a few times now. And now he complains that someone is spitting in his face?
> 
> Sounds to me like he is whining again.


It's a good point and a lot of people won't forget it anytime soon. Nobody likes to be told their money isn't good and that their concerns and opinions don't matter.

http://www.nodakoutdoors.com/forums/vie ... php?t=1353


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## 280IM (Mar 28, 2005)

g/o said:


> Live, Again you haven't got a clue what your talking about. Steve Scheel is about as fine and generous man that you will ever meet. Yes he like many others in this state doesn't want to see restrictions on N/R hunters. If you had any concept of business you would understand why he is complaining. Grow Up!!!!!!!!!!!!!!!!


That is 100% the truth, Steve Scheel has stores in Omaha and Lincoln and does a lot for the coummunities he does bussiness in. I like both Scheels and Cabelas both US companys. Live you could find something wrong with a free sandwitch.


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## 280IM (Mar 28, 2005)

> Nobody likes to be told their money isn't good and that their concerns and opinions don't matter.
> 
> That almost sounds like a NR hunter!


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## Horsager (Aug 31, 2006)

live2hunt said:


> Wasn't it Steve Scheels who went behind the resident hunters backs and sent a letter to all of our legislators stating how he couldn't care less about resident hunters and only cared about non-resident hunters?  He provided some very "fuzzy" math on how ND sportsmen don't support his store, but how NR's did.
> 
> Not trying to start an NR bash here, but I believe he has spat in the ND hunters face a few times now. And now he complains that someone is spitting in his face?
> 
> Sounds to me like he is whining again.


It wasn't Steve Scheel, it was someone else and didn't go exactly as you stated above. It was basically a rant about ND going to the 10 day's for upland hunting from a border town resident. It also mentioned how ND residents are quick to point out that MN has not done a good job providing habitat, yet this person had seen many sloughs being burned off in ND on a particular weekend. That is assuming you're referring to the discussion that was on Tony Dean's website 3-4 years ago.

Based on the amount of donations given locally and to small town organizations from the surrounding area, I think Scheels considers resident hunters, fishermen, softball players, golfers, hockey players, etc quite important.

Tax incentives/abatements and favorable lease deals do work to bring in new businesses. But, what about well established businesses who've been *paying taxes *and *providing jobs *in a community for decades? It certainly puts the established businessman at a distinct disadvantage. The new business with the tax or rent advantage can afford to operate at a lower margin and still show a profit, and it's just "tough crap" for the folks who've provided jobs and benefitted the community for 30+ years. It's certainly understandable why a business owner would be upset at a city giving subsidies to a competitor.


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## always_outdoors (Dec 17, 2002)

g/o stated:



> Yes he like many others in this state doesn't want to see restrictions on N/R hunters.


umm. many others? I think you are the one once again the one who doesn't have a clue. "many others" must include others like yourself and a few ND tourism people. I would say the majority do not agree with you and you know it.

280: Going to keep up with the insults? I see you are still upset about being wrong on so many levels on this site and me calling you on it. Maybe you could keep stalking me on PM's like you have done before.

Steve Scheels wrote the letter. It was done behind our backs to legislators. Of course he wasn't concerned at all about the conservation of our resources nor was he concerned about preserving ND hunting. He was concerned about his pocketbook. Much like our g/o's of ND. They don't care about wildlife nor the future of ND hunting.


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## Horsager (Aug 31, 2006)

That's a different episode than I was thinking of, I missed the one you're referring to completely.


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## 280IM (Mar 28, 2005)

Live prove me wrong post a copy of the letter prove the man wrote. I would be glad to read it. I know the man has do a lot of good I want to see the letter.


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## always_outdoors (Dec 17, 2002)

280: If you posted to me, I can't see your message. I used the "ignore" button about a month ago on you. It is like I have banned you. Dang, I like this feature.

:beer:


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## taddy1340 (Dec 10, 2004)

280IM said:


> Live prove me wrong post a copy of the letter prove the man wrote. I would be glad to read it. I know the man has do a lot of good I want to see the letter.


Scroll up a couple posts and you'll see Chris put a link to the letter.

That's the first time I've seen the letter. I heard one message through it all...me...me...me...money...money...more money for me. He lost any chance of respect by endorsing g/o's. Further, his statement about increased license costs and $35k SUVs is assinine. I've worked at Cabelas in EGF and yes we got some good business from hunters on their way to and back from ND. However, many were just "normal" guys like you and I that saved up 2 weeks of vacation, packed their p/u tight full, drove 14 hrs straight. My point is Steve looked right past these guys and into the deep pockets of the fat, lazy arses that come in on their leer jets and pay some guy to scout, call, decoy, p/u, clean and pack their birds.

Come on Steve? And now you're crying about a disadvantage to Cabelas?


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## g/o (Jul 13, 2004)

> It's a good point and a lot of people won't forget it anytime soon. Nobody likes to be told their money isn't good and that their concerns and opinions don't matter.


I don't recall Steve Scheel ever saying your money isn't any good. Your concerns and opinions matter, but are yours the only ones that do?



> Steve Scheels wrote the letter. It was done behind our backs to legislators. Of course he wasn't concerned at all about the conservation of our resources nor was he concerned about preserving ND hunting. He was concerned about his pocketbook. Much like our g/o's of ND. They don't care about wildlife nor the future of ND hunting.


This was not done behind your backs, is Steve Scheel suppose to ask you before he writes a letter? I don't think so. Live your all mouth what have you done to preserve the hunting or wildlife in ND. I do more in a day than you do in a lifetime. Yet you have the balls to accuse outfitters and people like Steve Scheel of not caring and only thinking about are pocketbooks.


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## Bob Kellam (Apr 8, 2004)

I have sat in Steve Scheels office and visited with him face to face on several occasions. I can tell you from personal experience that you will not find many business executives that listen so intently to your comments and proposals. Scheels has come through for our Delta Waterfowl chapter with support and assistance as they do with many, many other local clubs.

I make a considerable amount of purchases from Scheels and from Cabelas and Sportsmans WH. Business is business and any advantage gained is going to be contested no matter what the business's scope of services are.

I think all of the major sporting goods retailers are well aware of where their market share is, and it should not surprise anyone that a fair sized portiion of income is generated by entities other than in state freelance hunters.

Steve Scheel drafted a letter to the legislature in ND and sent it off, he has considerable influence and they tend to listen. Having been involved with the legislative process in ND for a number of sessions I can tell you first hand that many independent sportsmen do not step up to the plate and contact our legislators like we should when issues arise. Maybe we need to be as passionate about our interests as Steve is about his business.

Off my soap box.

Bob


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## tb (Jul 26, 2002)

I think you guys are missing the point.

After Sioux Sporting Goods, Let's Play it Again Sports, Capital City Hardware and Marv's Hardware (that's just in Bismarck-Mandan alone, I'm sure there's lots of additional road-kill in other Scheels' All Sports towns) close their doors while Scheels is building its self-agrandizing palace in that same town, its pretty darn hypocritical for Mr. Scheels to whine when competition moves in. And pretty hilarious too. And I believe you all, he probably is a pretty decent guy. But first and foremost he's a capitalist. And don't ever forget it.


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## g/o (Jul 13, 2004)

> I think you guys are missing the point.


No we are not you are!!!!!!



> RAPID CITY -- The day after the Rapid City Council voted to give outdoor outfitter Cabela's $2 million and the 30-acre Black Hills Visitor Information Center site to bring a store to town, the operators of the center sounded a conciliatory note.
> 
> However, Steve D. Scheel, chief executive officer of Cabela's rival Scheels All Sports, was not so conciliatory.


You see tb Scheel is building a 100,000 square foot building as is not getting one dime. I know if I was him I would call foul also.

Thanks Bob, Steve is a wonderful person to work with and most generous.


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## djleye (Nov 14, 2002)

> Live you could find something wrong with a free sandwitch


And you could turn a watermelon seed spitting contest into a res/nr debate. :eyeroll:

Bob hit the nail on the head!!!


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## Horsager (Aug 31, 2006)

tb said:


> I think you guys are missing the point.
> 
> After Sioux Sporting Goods, Let's Play it Again Sports, Capital City Hardware and Marv's Hardware (that's just in Bismarck-Mandan alone, I'm sure there's lots of additional road-kill in other Scheels' All Sports towns) close their doors while Scheels is building its self-agrandizing palace in that same town, its pretty darn hypocritical for Mr. Scheels to whine when competition moves in. And pretty hilarious too. And I believe you all, he probably is a pretty decent guy. But first and foremost he's a capitalist. And don't ever forget it.


Sioux's Sporting goods was in a cruddy location and wasn't price competitive, at least not on their hunting stuff.

I stated earlier, the sporting goods side of Marv's was the only part making money. Menard's, Lowes, and Home Depot are as much or more to blame than Scheels.

Play it again sports, I never set foot in there.

If Capitol City Hardware is the hardware store across from the Mall, that place is on it's 3rd or 4th name. I applied for a job there when I was in high school and it was a True Value store. They did have sporting goods but it wasn't their focus.

All this and yet Gun City remains. They sell guns, reloading, ammo, gun accessories. The lowest margin items in any "Sporting Goods Store" and yet they seem to have done just fine.

TB, can you explain this?


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## tb (Jul 26, 2002)

I guess it must be because I buy my guns at Gun City, what else could it be?


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## nodakoutdoors.com (Feb 27, 2002)

I don't think anyone is denying Steve is a nice guy and does things for the community. I think this thread has gotten kind of twisted from the Rapid City situation to the legislative process 4 years ago.



Bob Kellam said:


> Having been involved with the legislative process in ND for a number of sessions I can tell you first hand that many independent sportsmen do not step up to the plate and contact our legislators like we should when issues arise. Maybe we need to be as passionate about our interests as Steve is about his business.


That's about the most true post possible. If more outdoorsmen took some time every other winter to take part in the legislative process, we wouldn't have many of the issues we have today concerning the future of hunting.

No soapbox Bob, it's the truth.


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## always_outdoors (Dec 17, 2002)

g/o quote:



> Live your all mouth what have you done to preserve the hunting or wildlife in ND. I do more in a day than you do in a lifetime.


I have a degree in range science with an emphasis in wildlife habitat management. Minor in soils and wildlife biology.

Now do you want me to talk about the amount of acres I help convert into no-till acres while I was a county extension agent?

How about all the grazing systems I helped create? In fact not only did I improve wildlife habitat, I helped a rancher go from 200 head of cows to 400 head because he managed his grass more efficiently.

We can also talk about the 5 years I was with the USFWS, US Forest Service, and the NRSC office.

Then there is the personal side. I have 950 acres right now that I am developing on my own. I have added 17 acres of trees and am now working on some native grassland establishment. My biggest issue is not to take away too much land from the guy renting it. I want to support ND agriculture and turning 950 acres into a wildlife sanctuary isn't supporting ND farmers, so I need to do things the right way. BTW only 10 acres of this 950 is posted.

You also questioned me about preserving hunting in ND. This is where you are dead wrong...as always. I have taken countless kids out hunting. Like my father did with me. I teach youth shotgun classes and have volunteered countless hours to teaching kids proper shooting techniques.

Don't believe me, just open your June ND Outdoors Magazine. There is an article about my shotgun team. In fact, they have me quoted in there several times about the importance of hunting in ND.

Face the facts. You are so wrong about ND hunting and about me that you can't see the forest from the trees. You are in way over your head on this one.

Besides. What I do to preserve hunting in ND benefits everyone both residents and non residents alike AND helps our youth. What you do to preserve hunting in ND benefits only YOU.

Sorry to hi-jack everyone, but g/o had a personal attack and I felt it necessary to defend myself. Especially about preserving ND hunting.


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## g/o (Jul 13, 2004)

Live, yep I'm wrong your the man


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## Jiffy (Apr 22, 2005)

Pretty sure g/o just got fricken "worked!" :lol:

live2hunt....... :beer:


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## MossyMO (Feb 12, 2004)

Jiffy
or was he illegally baited !!!


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