PORTLAND (AP) – Cabela’s Inc. may scuttle plans for a retail store that’s supposed to anchor a major development in Scarborough unless it’s granted a waiver from being required to charge sales tax on catalog purchases from Maine.
Cabela’s, which contends its retail business is separate from the catalog business, has asked for an advisory ruling from Maine Revenue Services.
Nebraska-based Cabela’s has been granted exceptions in the other states where it has stores. But there’s opposition in Maine, home to L.L. Bean.
“It is not about competition; bring the competition on,” said Rich Donaldson, spokesman for L.L. Bean, which sells outdoor gear through catalogs and retail stores. “It is about playing by the same rules.”
The 125,000-square-foot Cabela’s would anchor a $75 million project featuring office buildings, a 200-room hotel, restaurants and a bank.
Scarborough officials have opened their arms to Cabela’s while seeking to jumpstart development at the location near Exit 42 of the Maine Turnpike.
Cabela’s is apparently prepared to withdraw its plans for Scarborough if the state does not agree with its tax proposition.
“It is a dealbreaker for Cabela’s,” said Gene Beaudoin of New England Expedition LLC, which put together the proposal.
Both sides have hired prominent Maine lobbyists and political consultants.
Ted O’Meara, campaign manager for U.S. Sen. Olympia Snowe, R-Maine, is working for the developer that’s seeking to bring Cabela’s to Scarborough. Dennis Bailey, who orchestrated anti-casino efforts in Maine, has spoken in opposition to the development.
Cabela’s representatives were in Augusta last week, according to Beaudoin and Jack Cashman, commissioner of the state Department of Economic and Community Development.
“I am in favor of Cabela’s coming in, but not preferential treatment,” Cashman said. “The question is: Would they be providing treatment to Cabela’s that they have refused to others.”
Comments are no longer available on this story