Big Boxes
The discussion about whether to support/build a massive Wal*mart Super Center tends to be oversimplified, and grouped into several topic areas:
1. Jobs
2. Tax Revenues
3. Small Business Killer
4. Excessive Traffic
5. Shopping Options
While we believe that all of the above topics are important, we think the discussion has barely scratched the surface…..a deep dive into these issue areas is sorely needed.
While elected officials will presumably hide behind the “job” curtain, most are simply salivating at potential tax revenues. Historically, these supercenters have given a boost to struggling general funds, monies that are used to increase our quality of life. But when you balance what we get, for being a host city for a new wal*mart supercenter, you can’t help but wonder if we’re really getting a good deal or just getting hosed.
Below is our financial analysis of what the proposed Wal*mart project can do for our community, and how it stacks up to possible alternatives for the site on Sperry and Ward.
Patterson’s 4 options:
- No Project/No Development Alternative: The project site would remain in its existing condition and no development would occur
- No Project/Existing Entitlements Alternative: The remaining 2006 entitlements for the Patterson Plaza Project would be developed on the project site, which consist of 149,200 square feet of retail uses (excluding the existing CVS/Pharmacy and Taco Bell).
- Reduced Density Alternative: A 133,500-square-foot Walmart store would be developed on the project site. No outlots would be developed.
- Mixed-Use Center Alternative: A 175,000-square-foot, mixed-use center featuring 100,000 square feet of retail uses, 25,000 square feet of office uses, and 50 apartments would be developed on the project site. No Walmart store would be developed under this alternative.
PROPOSED PROJECT
As proposed, the Wal*mart “Patterson Plaza Project” would generate approximately $72.5 million in annual sales. However, the city of Patterson would get back less than 1% of these sales, the result, a measly $687,559 annually under full build-out. The cumulative effect of a super-center realized by the small/local business community would probably be best characterized as terminal. Local businesses keep money circulated in Patterson, monies to Wal*mart will only fatten the pockets of WMT and the Walton Family.
Obviously leaving the land as is would not bring any surplus to the Patterson budget, so we’ll move on to the other three options with fiscal significance.
EXISTING ENTITLEMENTS ALTERNATIVE
The Existing Entitlements alternative would generate approximately $50.1 Million in annual sales. However, it also lacks any potential to produce a real fiscal surge. This alternative would fill Patterson’s coffers with $470,940 in general fund surplus. This alternative would bring us 4 restaurants, 4 retail shops (6,400 to 15,000 sq/ft), a bank, and possibly a smaller Target.
REDUCED DENSITY ALTERNATIVE
This alternative simply reduces the footprint of the Wal*mart from 158,000 sq/ft to 133,500 sq/ft. Annual sales would total $56,500,000, contributing around $531,000 in surplus to the general fund.
MIXED USE DENSITY ALTERNATIVE
Finally, as stated above, the mixed use density easily offers the most contrasting option to the proposed project. This alternative would generate only $28,400,000 in annual sales. A general fund surplus of $266,960. While it’s a little skimpy on the financials, it would decrease the amount of daily trips by 4,282 when compared to proposed project.
We have been told by our elected officials that we need this Wal*mart, but is it really the answer to our economic problems or is it simply being jammed down our throats to keep the city from flat-lining? Regardless of which project is ultimately selected, it appears that appetite for short term gains may very well spell the end to a future downtown core, anchored by small local businesses.
What say you?
Contribution Agreement
Throughout the Wal*Mart push, we will propose a “contribution agreement” to provide for real long-term, benefits to the residents of Patterson.
The framework for this contribution agreement will be guided by these three simple goals.
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Provide jobs that pay at least federal poverty level wages for a family of four ($10.58 an hour or $22,050 annually);
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Provide jobs that are majority full-time (40 hours per week); and
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Encourage a fixed targeted goal, addressing the proportion of jobs going to residents of Patterson.
Do not misconstrue this agreement to mean that we have given up on the Walmart fight, we just think the community should be prepared for many scenarios.
Other Resources
Colton said,
February 6, 2009 @ 12:12 PM
The ‘fight’ isn’t so much about winning, it’s about standing up for what one feels is right.
Sergio Cuellar said,
February 6, 2009 @ 1:06 PM
Its worth the fight! Patterson has too much history, too much pride to allow a community crusher like wal-mart from coming and killing this town! For those who have Comcast, i challenge all to watch a the documentary “Wal-mart: the high cost of low prices.” You can find it ON Demand! For those who dont have comcast, here is a link to the video: http://video.google.com/videoplay?docid=-3836296181471292925
If you think this will not happen to Patterson, you all are really fooling yourselves! True Community cares for all, not for the few!
En Lucha y adelante!
Big Red said,
February 6, 2009 @ 1:48 PM
Colton,
Your remarks belong on a shirt. Inspiring stuff. You and Segio must keep up the good work.
Big Red
ptownpow said,
February 6, 2009 @ 6:33 PM
ptownpow
POW! Patterson Opposes Wal-Mart! has its site up! Please go to:
http://www.pattersonopposeswalmart.wordpress.com for all the facts about wal-mart and a space to voice your concerns! As we move forward, we will be posting up important date for: Council meetings, Commission meetings, and Town Hall Gatherings!
DESPICABLE ONE said,
December 11, 2010 @ 11:47 AM
OH WALMART OH WALMART ITS FUNNY HOW ITS EVERYDAY LOW PRICES THE MONEY WE SPEND THEIR IS ON ITS WAY TO CHINA AS WE SPEAK…NOW WHY IS THERE SO MANY CHINESE MADE PRODUCTS ON THEIR SHELVES?…WELL THATS EASY CHINA IS GONNA BUY SHARE OF AMERICAS DEBT SO WHY NOT GIVE THEM THE OPPORTUNITY TOO MAKE MONEY OF THE MOST WEALTHY COMMERCIAL STORE IN AMERICA…..JUST HOW THE MEDIA HARDLY IMPLIES THAT THEIR ARE MANY OVERWEIGHT PEOPLE IN AMERICA BUT THE GOVERMENT BUILDS A MCDONALDS IN ALMOST EVERY TOWN…EVER WONDER WHY ITS A FRANCHISE….WELL GOOD OL MR.WALLY COMES FROM A GROUP OF WEALTHY BRITISH/AMERICAN FAMILIES ALSO KNOWN AS THE 13 FAMILIES…GOOGLE IT TOO SEE WHAT IM TALKING BOUT
The Patterson Irritator said,
December 11, 2010 @ 6:58 PM
Despicable One,
Thanks for dropping by, the next best move to send Wal*mart a message about their policies and practices would be to help with the formation or an organized union for workers. Otherwise, the only real action one can take is not shop there. Personally, I understand that residents with limited income have little choices when it comes to food, shelter and transportation. In most cases, all those needs are usually determined by cost. However, for those of us who are fortunate enough to have a choice, we must continue stay away from the big boxes, shop local when you can, and grit your teeth when you have to make the 1:00 am trip to Wally World for something you just need at that very moment.
Good stuff, but if you can, lay off the caps, it can be difficult to read at times.
I’ve laid out one option to the Wal*mart approval, what say you?
DESPICABLE ONE said,
December 12, 2010 @ 2:35 PM
i strongly agree with that because honestly a Wal-mart wouldn’t really benefit the community it would benefit corporate america…one problem with local stores is the hours they remain open sam’s closes around 8 and the next option is savemart but all original people stay loyal to sams….we already seen alot of our childhood places gone…eventhough walmart generates jobs we need to remember thats these are the people that work with the immigratio department aka ice to catch illegals shopping at their stores…need i remind patterson that we are a big ag supplier for california we got illegals working our fields..the problem is so much bigger than jobs and buisness and when ever u say go im ready dear irriitator…