Businesses have a right to expect city government to apply its rules fairly and rationally. Hy-Vee Inc. didn’t get that treatment from three members of the Lincoln City Council last week.
The request before the council was to expand the liquor license of the Hy-Vee store at 70th Street and Pioneers Boulevard.
Three council members voted no for a reason that had nothing to do with the request.
Northeast council member Doug Emery is peeved because Hy-Vee won’t allow a competitor to move into its University Place location at 48th Street and Leighton Avenue when it closes the store this spring. He convinced council members John Spatz and Jonathan Cook to join him in voting against the liquor license expansion.
That’s wrong. The city council should not wield its authority arbitrarily, using its power to punish a business when an elected official doesn’t like an unrelated business decision made by the company.
Hy-Vee is a respected and quality participant in the local economy, providing jobs, services and products that are valued by employees and customers.
When the city was having difficulty finding businesses to redevelop property near 48th and O streets, Hy-Vee was one of the few willing to take the risk.
Gee, do you suppose Hy-Vee counted on some of the customers formerly served by the 48th and Leighton store to take their business to the new store to be located at 50th and O streets? Much of the University Place neighborhood is within the trade area of the new store, which is about 1.6 miles from 48th and Leighton.
The move to block a competitor from swooping into its old location is nothing more than a savvy tactic in a highly competitive business that operates on razor-thin margins.
Some neighborhood disgruntlement is understandable. Who wouldn’t prefer a nice, friendly grocery within walking distance? But University Place wasn’t getting picked on. Hy-Vee has used the same tactic at other locations by continuing to pay the lease after it vacated a site in order to keep competitors at bay. It’s just good business.
Some unhappy University Place residents have threatened to take their business elsewhere. That’s their right.
But when sympathetic city council members decide to use their authority to compel a business to comply with wishes that are beyond the requirements of law and regulation, they crossed the line. Elected council members have no right to dictate decisions that are clearly in the business sphere.
Fortunately, Emery and his cohorts were unsuccessful last week. They should forget about trying such a stunt in the future.
Posted in Editorial on Tuesday, January 15, 2008 6:00 pm Updated: 2:11 pm.
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