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
sergiocuellar said,
January 26, 2009 @ 5:06 PM
I really find it hard to see how bringing in Wal Mart will spark more stores to come in..there wont be a market for other stores. Wally World will sell everything we need at the cheapest price right? so why would we need say a best buy, a boarders, a pier one, a target, a music store, etc..it will monopolize our dollars into one store! Who Wins? Wal-Mart, and China, and the shipping docs, and we then have 400 non-benefited jobs, non-unionized, and because they will be the only show in town, those employees will be dumping their Hard Earned $ back into the store, or as RanZ calls it the community! If its lower food prices we want, lets bring in some more food stores, and go for the other specialty stores to and create a true competitive local economy..not another Wal-Mart Town, California!
sergiocuellar said,
January 26, 2009 @ 5:10 PM
P.S.- Fred don’t delete RanZSome’s comment, for his attempt to intimidate and threaten folk to go to the next city meeting! I have a feeling there will be a ton of folks there and he should get tired after the first 5 or 6 people he wants to call $toopid!
Exclamation! said,
January 26, 2009 @ 10:25 PM
I want someone to explain in detail what businesses will be hurt by WalMart? Patterson Pharmacy? Please…..how many pharmacies do we have in town right now and they are just fine! CVS, SaveMart, Patterson Pharmacy, future Walgreens! Walmart will put none of these out of business!!
So explain what other business will go out???
RanZSome said,
January 27, 2009 @ 7:48 AM
In response to SergioCullar, I am not threatening or trying to intimidate people in this forum. I am just tired of so many people against this Walmart store. The economy is facing so many issues due to economic crisis and with this new store will provide tax money towards the city of patterson and jobs for both old and young adults with health benefits!! It may not be much, but its a start!! Especially for those folks who lost there jobs or had there hours cut do the economic downfall which most american hard working people face each and everyday. Im sure those families that has lost there jobs or going to lose there jobs would learn to appreciate this new opportunity which may come pending the outcome of the city’s decision in bringing in this new BIG BOX store.
Its funny that many people in this forum who are against the building of the new Walmart talk about:
1. “…..Low prices has a higher cost in the long run.” <>
2. “…Well it looks like we have some work to do..the darkside has attacked! Walmart has been defeated before! Lets not loose this battle!” <>
3. “..i WILL NOT SUPPORT a WAL-MART of any sorts to be built in Patterson for the mere fact that too many local businesses and long time family owned business stand to loose all..” <>
4. “..I would love to stand up against Walmart to protect the small businesses in town” <>
These are just some of the things in this forum that “irks” the heck outta me!! CANT WE JUST ALL GET ALONG!? Im sure there will be a way that it will balance itself out. Why not have the best of both worlds, or a balance. I honestly believe there is room to have both the “home-town” feel and “City” feel as well. Im sure your kids would agree!!
NOW GO AHEAD AND SEND YOUR CRITICSM ACCORDINGLY!!
Editor’s note: “RanZsome” is blogging from “MirrorPlus Technologies“. MirrorPlus Technologies is a wholly owned subsidiary of American Reprographics Company (ARC), and functions as its software development arm. MirrorPlus renders reprographics software solutions through PlanWell, a product designed and developed as the largest online documentation management and distribution exchange for the U.S. construction industry.
RanZSome said,
January 27, 2009 @ 8:06 AM
Editor’s note: “RanZsome” is blogging from “MirrorPlus Technologies“. MirrorPlus Technologies, located in Fremont California, is a wholly owned subsidiary of American Reprographics Company (ARC), and functions as its software development arm. MirrorPlus renders reprographics software solutions through PlanWell, a product designed and developed as the largest online documentation management and distribution exchange for the U.S. construction industry.
big red said,
January 27, 2009 @ 8:34 AM
This whole walmart debate is not a black and white issue. I personally choose not to shop there, but many of my family members frequently seek lower priced goods from the walmart in turlock. Super Walmarts bring on a ton of traffic, maybe 35% of the jobs will go to people who actually live in patterson, and these are the lowest paying jobs to bring in.
Most people like to frame this issue as old patterson vs. new patterson; but I say we all have live with whatever happens, so lets help our local officials make an educated, well informed decision.
Big Red
sergiocuellar said,
January 27, 2009 @ 8:54 AM
true big true!
jrealini said,
January 27, 2009 @ 9:09 AM
One last Pro-Walmart point – what is the average income/wage for a job in Patterson and the surronding area (west of the river and south of Tracy)? This is not the amount made by the governement employees or business owners, but the amount made by Joe at Longs, Blockbuster, Dollartree, Patterson Fronzen Foods, Kohls, ect…
What benefits do these employees recieve? If they recieve medical is it just for the employee, or do they receive a reduced cost for the family?
Are their jobs a stable 40 hours, part-time or seasonal?
What percent of these jobs have real upward mobility?
Until there is an option LOCALLY that provides a stable living wage with basic benefits, the arguement regarding how Walmart treats it’s employees is between jobs and no jobs.
If you wish to continue the arguement regarding stores closing, please list those that are locally owned that will be affected.
The Patterson Irritator said,
January 27, 2009 @ 9:35 AM
Okay, we’re not economist here, but I think this is reasonable list of future business closings/severe reduction in sales. If we left a business off the list, please add a comment, and we’ll update this list. It appears that automotive, hardware and grocers take the biggest hit. It’s really a subjective opinion as to whether the future of these stores/services are worth putting a walmart in Patterson. Like Big Red posted earlier, not black or white.
Disclaimer: Due to the current state of the economy, some of these businesses may already be closed.
Bennett Hardware & Feed Store – Full line of hardware, paint, electrical and plumbing supplies, pet and livestock feed
305 S. 2nd St.
892-6321
Big O Tires – Tires, wheels, brakes, front end repair, wheel alignment
515 S. 2nd St.
892-8901
Blue Floral Company – Floral arrangements, balloon bouquets, specialty gifts
30 S. Del Puerto Ave.
892-2583
bluesdude64@hotmail.com
Center Minute Lube and Automotive
235 S. 2nd St.
892-7676
Chin, Freida O.D. Inc. – Optometrist
420 W. Las Palmas Ave.
892-2161
jimfreda@gvni.com
En-Vision Optometrist & Optical Boutique
1108 Ward Ave., Building B, Suite 7
895-4900
envision_bj@yahoo.com
Florence Godron – Pet clothing and accessories, handmade coats, shirts and dresses, hair bows and bandanas
892-6789
Goldenfatcat@aol.com
Guerreros Tire & Auto Repair – Tires and automotive repair
208 S. El Circulo
892-9497
NAPA-Greer Auto Parts – Automotive parts, tools and supplies plus complete machine shop service
53 S. 3rd St.
892-3501
Patterson Auto Care – One-stop automotive repair facility
401 N. 1st St.
892-8473
jkwells@inreach.com
Patterson Rental & Auto Parts – Equipment rentals, landscape materials, concrete and auto parts
16537 Highway 33
892-5115
Sam’s Food City – Retail grocery store
125 El Circulo Ave.
892-8014
SaveMart Supermarket – Grocery store, featuring a bakery, deli, meat, floral and video departments
1035 Sperry Ave.
892-5000
Sherwin Williams Paint Company
1065 Sperry Ave., Ste. B
892-5700
Lesley Powell
Systech – Printers repair and service. Sale of printers and supplies.
36 N 3rd St.
892-8659
systech@gvni.com
Tiger Furniture – Furniture and bedding retailer
40 S. Del Puerto Ave.
892-9009
tigerfurniture@hotmail.com
Valadez Jewelers – Jewelry sales and repair
10 Plaza
892-8502
Workbench True Value Hardware – Plumbing, electrical, home improvement, and garden supplies
1040 W Las Palmas, Ste. A
895-4011
Yancey Lumber & Hardware – Lumber and supplies for all of your home improvement needs
100 “E” St.
892-8010
Change font/text color said,
January 27, 2009 @ 12:32 PM
Can you please change the text color to black from gray…it’s hard to read.
sergiocuellar said,
January 27, 2009 @ 2:36 PM
So the argument has been going on here about the 450 new jobs that Super Wal-Mart will create here in patterson. This data comes from a case study presented on the Patterson Times website: “By lowering consumer prices, Wal-Mart costs about 50 retail jobs among competitors for every 100 jobs Wal-Mart creates”
So for the 450 jobs that Wal-Mart will create in Patterson, on average 200 jobs will be lost by those working for Wal-Mart’s Competitors! (see list of those who will be competing against Wal-Mart i provided in an earlier post)
It can be looked at a couple of ways: 1) the 200 jobs lost to Wal-Mart will be picked up by wal-mart, leaving the other 250 jobs to be fought for by the senior population, the youth population, and those adults who just need a job, or 2)Wal-Mart will displace 200 workers in the wake of their monopolization of the Patterson Economy!
either way, this data speaks to the impact Wal-Mart will have on Patterson! Is it still worth the lower prices of everything, or can we create a competitive economy by going after smaller more sustainable options?
The Patterson Irritator said,
January 27, 2009 @ 2:39 PM
Change Font,
Arsenio is a contributor to this site, while your suggestion is likely meant to take another jab at Arsenio, we will consider it. However, maybe Dr. Chin can help you with your inability to see the color grey. Keep the insightful comments coming.
Exclamation! said,
January 27, 2009 @ 2:59 PM
Well I agree with him! The color grey is no good!
The Patterson Irritator said,
January 27, 2009 @ 3:13 PM
We’re working on it, we’re kind of tied to this template, maybe the admin from the times can help?
Sergio, we think that’s a great way of looking at the job loss, it should definitely resonate with folks when trying to determine if Walmart is actually a worth it all.
Don’t forget to add businesses, we know we’re missing a bunch.
sergiocuellar said,
January 29, 2009 @ 7:35 AM
Wal-Mart on Women and Minority relations:
Wal-Mart faces the largest workplace bias suit in American history — and that’s just one of its issues:
Wal-Mart faces the nation’s largest workplace gender-bias lawsuit. In June 2004, U.S. District Court Judge Martin Jenkins granted cla*s-action status to 1.6 million current and former female Wal-Mart employees who charge the company with paying women less and offering them fewer opportunities for promotion. The cla*s is comprised of all current and former female employees employed between December 26, 1998, and the present. [Dukes v. Wal-Mart Stores, Inc., No. C01-02252 MJJ (U.S. District Court for the Northern District of California).]
* Earning Less, Holding Fewer Senior Positions. In 2003, Dr. Richard Drogin, professor emeritus at California State University-Hayward, conducted a study on wages for female employees at Wal-Mart and found that:
o female hourly workers earn up to 37 cents less per hour than their male counterparts;
o female full-time employees working at least 45 weeks earn on average nearly $5,000 less than male employees in yearly salary;
o women make up 72 percent of Wal-Mart’s total workforce, but only 33 percent of its managers;
o and women make up 92 percent of Wal-Mart’s cashiers, but only 14 percent of Wal-Mart store managers.
[Wal-Mart Cla*s, Plaintiff's Expert Dr. Richard Drogin's Statistical Report; New York Times, 12/30/04.]
* Ignoring Warnings to Improve Conditions for Women.
According to a report by Bloomberg, “Wal-Mart Stores Inc. took no action on internal warnings seven years ago that it was falling short in promoting women, documents in a federal sex-discrimination lawsuit show. The world’s largest retailer didn’t carry out the 1998 recommendations of a diversity task force and disbanded the panel, according to company memos, reports and depositions filed in the case. Two years later, Wal-Mart had a reduced percentage of female managers.” [Bloomberg News, 7/15/05.]
Problems With the Minority Community
From courts of law to the court of public opinion, Wal-Mart’s facing tough evidence on relations with minority communties:
* NAACP calls on Wal-Mart to become a more socially responsible company. The full text of the NAACP Resolution #14: “Oppose Wal-mart and Other Retailers Unfair Labor Practices Resolved: That the NAACP will challenge Wal-Mart and other retailers to overcome any of their practices that are inconsistent with the highest standards of Labor and Civil Rights, to ensure equal opportunity and equal pay for Women, people of color and other minorities, and work with local communities to effectively address Wal-Mart’s and other retailers negative impact on issues like the environment and local businesses, and establish a ‘Buy American’ program that annually increases the percentage of ‘Made in America’ goods purchased by Wal-Mart and Other retailers to help protect American Jobs.” [2008 NAACP Convention]
*Wal-Mart faces cla*s action lawsuit over truck driver discrimination. Nationally, 15% of truck drivers are African-American, yet at Wal-Mart African-Americans comprise only 4-6% of its fleet, which employs 10,000 truck drivers. In May of 2007, a district court judge ruled that Wal-Mart’s hiring policies created a common group of potential plaintiffs (African -American truckers who were not hired or deterred from applying for Wal-Mart positions), thus approving the creation of a cla*s action suit. Wal-Mart’s latest attempts to avoid accountability include pushing the trial date back yet another year and denying plaintiffs’ access to the results of a company-wide demographic survey of hiring practices. [Nelson v. Wal-Mart Stores Inc., E.D. Ark., Nos. 2:04-CV-00171; walmartdrivercla*s.com]
* For Customers, Racial Profiling. Customers have sued Wal-Mart Stores, saying they were racially profiled while shopping at its stores. The lawsuit says at least 9 customers were followed, searched, humiliated, and in some cases, detained by employees. [Boston Globe, 7/13/05]
Read More at Walmartwatch.com
Again is this the kind of employer or company we want in Patterson? WE DESERVE BETTER!!
sergiocuellar said,
January 29, 2009 @ 2:11 PM
Wal-Mart Won’t Appeal Case Against Turlock
TURLOCK, Calif. (AP) ―
Wal-Mart dropped its legal challenge to a city ordinance that blocked the retailer from building a proposed 225,000-square-foot Supercenter store.
Wal-Mart said Monday it would not appeal a federal judge’s ruling that rejected the retailer’s lawsuit. Two years ago, the City Council passed the ordinance barring big-box stores over 100,000 square feet that devote at least 5 percent of their space to groceries.
In July, a U.S. District Court judge in Fresno said that Turlock’s zoning law did not infringe on the company’s constitutional rights. The state Supreme Court refused to hear the case.
“The fact is, it has been reviewed by a number of courts and we haven’t prevailed,” Wal-Mart spokesman John Simley said Monday. “We didn’t agree with the decisions, but we felt there was nothing to be gained by an appeal.”
Wal-Mart started talking with Turlock officials in 2002 about building the Supercenter. The City Council passed the zoning ordinance after lobbying from union leaders and grocery store representatives.
Lawyers said that if the 9th U.S. Circuit Court of Appeals agreed to hear the case on appeal, a ruling would set a precedent that could affect Wal-Mart’s presence in nine western states.
Other San Joaquin Valley cities, such as Ripon and Patterson, have passed measures to block construction of behemoth stores.
Curt Andre, mayor of the city 85 miles southeast of San Francisco, said he was elated the battle was over and said the case should serve as a warning to other big businesses.
“Small cities are terrorized into rolling over and selling their soul,” he said. “It shouldn’t be about who has the most money or lawyers.”
Tom said,
January 30, 2009 @ 9:25 AM
From what I can tell and hear from the good folks in Patterson, the majority wants the WalMart but that the minority will fight hard from having it come in. However, the fact remains, that the majority is about 4 to 1.
Sergio Cuellar said,
January 30, 2009 @ 3:43 PM
Coming Soon..
to a city near you..Patterson First! (or whatever our name should be) the official stop the Super Wal-Mart group in Patterson! We will be holding a meeting soon, so stay tuned to this blog and other patterson blog sites for the date time and location of the meeting! Remember when you think Patterson First, we all Win!
big red said,
January 30, 2009 @ 4:41 PM
Cast
Apollo Creed – Local Businesses
Drago – Walmart
Rocky – Patterson First
Tom said,
February 6, 2009 @ 9:56 AM
Just because you fight hard, does not mean that you are giong to win. I think that a Walmart is a for sure in Patterson. Most people want it. Your analogy to Rocky is very cute, but in the end, enjoy the Walmart.