Business Booming in Union Gap
YAKIMA -- Business is good in Union Gap. In fact, it's so good, some Yakima business owners are picking up and changing zip codes. We told you Monday that more downtown Yakima businesses were closing their doors. Turns out, some may just be heading to Union Gap. KIMA wanted to know why the grass is greener on the other side?
Hollywood Video closed its doors for good back in May. But these days in Union Gap you'll see less of that and more new construction. And that's helping Union Gap get past the budget struggles it had in 2009, when it ended the year in the red.
Mayor Jim Lemon said, "The new business coming in and replacing some that have gone out of business at the mall, I believe that's going to help us still meet our projections. I don't believe we'll fall short this year."
And it's not just the mall that's leasing out space.
"We've seen some business licenses come through that are regular, day-to-day businesses that have shifted from the city of Yakima down to Union Gap," said David Spurloch.
Yakima's Mayor gets it. His city just can't offer the speed or incentives Union Gap can to attract new business.
Micah Cawley said, "We regulate Title 12 development standards, which is curbside, sidewalk, a lot of the infrastructure needed for a safe business."
So what does Union Gap offer? The mayor says the city gets its permits out faster, offers more cooperation with contractors, and cheaper permit fees. All very attractive to business owners trying to make ends meet during a recession.
But even with the Valley Mall nearly at full capacity, city officials do worry that other changes could still affect their sales tax revenue this year. For example, WinCo hasn't even gotten back to the city on when, or if, they plan to build anytime soon. And Lowe's, which currently sits in Union Gap city limits, is now looking to build on a field near Costco. But if you look, the field is actually Yakima city limits. The sign to Union Gap starts at the corner, which means Union Gap would lose Lowe's sales tax revenue.
And last year, that was more than a quarter of a million dollars. A cut like that could really hurt this small city that relies heavily on sales tax revenue to keep its budget in the black. But for now, Union Gap is celebrating the new business. And more than ready to entice other to reconsider their current addresses.
60% of Union Gap's general fund budget comes from sales tax. And there is no reserve, there never has been. But that's something the mayor is hoping to encourage city council to change, so if an anchor store like Lowe's does decide to move, the city will be better prepared to weather the financial storm.
Hollywood Video closed its doors for good back in May. But these days in Union Gap you'll see less of that and more new construction. And that's helping Union Gap get past the budget struggles it had in 2009, when it ended the year in the red.
Mayor Jim Lemon said, "The new business coming in and replacing some that have gone out of business at the mall, I believe that's going to help us still meet our projections. I don't believe we'll fall short this year."
And it's not just the mall that's leasing out space.
"We've seen some business licenses come through that are regular, day-to-day businesses that have shifted from the city of Yakima down to Union Gap," said David Spurloch.
Yakima's Mayor gets it. His city just can't offer the speed or incentives Union Gap can to attract new business.
Micah Cawley said, "We regulate Title 12 development standards, which is curbside, sidewalk, a lot of the infrastructure needed for a safe business."
So what does Union Gap offer? The mayor says the city gets its permits out faster, offers more cooperation with contractors, and cheaper permit fees. All very attractive to business owners trying to make ends meet during a recession.
But even with the Valley Mall nearly at full capacity, city officials do worry that other changes could still affect their sales tax revenue this year. For example, WinCo hasn't even gotten back to the city on when, or if, they plan to build anytime soon. And Lowe's, which currently sits in Union Gap city limits, is now looking to build on a field near Costco. But if you look, the field is actually Yakima city limits. The sign to Union Gap starts at the corner, which means Union Gap would lose Lowe's sales tax revenue.
And last year, that was more than a quarter of a million dollars. A cut like that could really hurt this small city that relies heavily on sales tax revenue to keep its budget in the black. But for now, Union Gap is celebrating the new business. And more than ready to entice other to reconsider their current addresses.
60% of Union Gap's general fund budget comes from sales tax. And there is no reserve, there never has been. But that's something the mayor is hoping to encourage city council to change, so if an anchor store like Lowe's does decide to move, the city will be better prepared to weather the financial storm.
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