Although some Urbana residents have expressed concerns about the consequences of “big box” stores developing in the area, the city has promised these new developments will help its growth and budget.

The opening of stores like Meijer and Menards are expected to encourage residents to shop within the city limits, keeping tax dollars in Urbana.

John Gabel, an Urbana resident, said he thinks the concerns about development are unjustified because the area where Meijer and Menards are being built doesn’t have many local businesses.

“There aren’t really any competing businesses in that area,” Gabel said. “At least not local ones.”

Gabel said the development of big box stores could potentially help local or smaller businesses.

He compared it to the “anchor store” concept used in mall design, housing a big name store to attract people and benefit smaller stores by creating foot traffic.

Tom Carrino, economic development manager for the city, said Urbana traditionally has not had many large national retailers develop within the city.

But city developers are working toward maintaining a good balance of national retailers, as well as housing smaller, locally owned businesses, he said.

Carrino said most of the national retailers are concentrated around IL-130 while downtown Urbana is more conducive to smaller retailers, making the city a good market for both local and national businesses.

“Different areas of the city are attractive to different types of retailers,” he said.

With respect to concerned residents, Carrino said Urbana has programs to help small business owners improve their stores, including a redevelopment incentive program to help smaller businesses make improvements to their stores.

New developments of national retailers and small, locally-owned businesses are going to benefit each other, said Mary Dennis, business manager for the Urbana Business Association.

She said there are going to be positive, long-term effects for the businesses and the city.

Carrino said the developments will have a positive fiscal impact by bringing more tax dollars into the city.

However, the city also has a responsibility to provide more services, such as an increase in police officers, in order to accommodate that development.

As a resident of Urbana, Carrino said the new developments will allow him to shop more in the city, which will have a small effect on the city budget, since a portion of the retail taxes go to the city.

“I want to make that small impact,” Carrino said.