Many Areas of Concern Regarding WalMarts Community Impact

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Wal-Marts in St. Petersburg Threats and
Opportunities
Presentation to the St. Petersburg Council of
Neighborhood Associations 7/20/05
Visit www.warnwalmart.org or Call 1-888-774-WARN
Wal-Mart Alliance for Reform Now Gandy Concerned
Citizens Sierra Club, Suncoast Chapter ACORN West
Central Florida Labor Council FCAN
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This Could Happen to You

• BEFORE

B E F O R E
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This Could Happen to You
AFTER
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This Could Happen to You This IS Happening to You

• 1) Wal-Mart proposed a 208,000 square foot
  SuperCenter on North Gandy Boulevard.2) City
  staff tried to find a way to block the project,
  but could not find a basis for doing so. 3) The
  Economic Development Commission rejected
  Wal-Marts proposal. 4) Wal-Mart appealed the
  EDCs decision to the City Council.The public
  hearing is scheduled for August.5) The City
  Council could let the EDCs decision stand,
  overturn it (with six votes) or send it back to
  the EDC for further 6) If the City Council
  rejects Wal-Mart, it may appeal in court or
  submit a reworked proposal to the City. (go
  back to 1?)

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This Could Happen to You (Repeatedly)

• Stated Goal
• Wal-Marts every 5 miles in areas with sufficient
  population
• Updated Goal
• Wal-Marts as frequently as every 2 miles in some
  densely populated markets.
• Source Lee Scott, President and CEO, Wal-Mart
  (speaking to shareholders)

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Wal-Mart Expected to Increase Florida
SuperCenters by 300 Between 2000 and 2010
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Even 5 Years Ago, Wal-Marts Presence in
Pinellas Was Limited
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Wal-Marts Recent Focus SuperCenters 3
Relatively New Sites in Pinellas
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Even with Recent Expansion, Wal-Marts Pinellas
Coverage Has Gaps
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2 Pending Sites Aim to Close Wal-Marts Coverage
Gap
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Wal-Mart May Need Up To 7 New Pinellas
SuperCenters to Saturate the Market
- Additional market analysis needed. NOTE If
Wal-Mart cannot add a SuperCenter, it may add a
Neighborhood Market instead.
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Wal-Marts Unrelenting Push to Convert to
SuperCenters May Up To 11 Planned New Sites in
Pinellas
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St. Petersburg Area Already Faces
Over-Concentration of Large Retailers
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Many Areas of Concern Regarding Wal-Marts
Community Impact

• Concerns About Aesthetics/ Sense of Place
• Concerns About the Environment
• Concerns About Quality of Life (Blight, Crime,
  Traffic, etc.)
• Concerns About Taxpayer Subsidies
• Concerns About Jobs Created and Wages/Benefits
• Concerns About the Closing of Local Businesses
  Now
• Concerns About Wal-Mart Leaving Abandoned Boxes
  Later
• Concerns About Wal-Marts Discriminatory
  Practices (in the U.S. and Abroad)
• and more...

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When This...
Is Replaced By This...
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We Could Lose This
And This...
And Maybe Even This...
Re Gandy Blvd. Site
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And Instead Get This
And This...
And Maybe This...
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Add to This Wal-Marts Social and Economic
Impacts

• CRIME - One city found that
• Police calls generated by a Wal-Mart store
  could require the equivalent of more than 2
  full-time police officers.
• Police were called to Wal-Mart to address more
  than 30 different types of incidents, including
  several types of violent crimes. Avondale
  Estates (Atlanta suburb)
• JOBS - Another found that a new Wal-Mart store
  would result in
• A net LOSS of 65 jobs for the region.
• A net LOSS of 1.2 million annually in worker
  income, but only 200K in increased property and
  sales taxes.
• Chicago

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And the Elephant in the Room

• TAXPAYER SUBSIDY
• OF WAL-MART
• a company with
• 285 Billion in total revenue
• 10 Billion in profits
• 13 Billion budgeted for capital expenses
• in 2004-05

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Taxpayers Fund Health Care Coverage for Wal-Mart
Workers and Their Families

• Number of Wal-Mart-related Medicaid/KidCare
  enrollees per Super Center 98
• Average 2005 taxpayer Medicaid/KidCare subsidy
  per Super Center 157,000
• Total Medicaid/KidCare subsidy paid by Florida
  taxpayers in 2005 24 million
• Average number of Florida Wal-Mart stores added
  per year 17.3
• Total Florida Medicaid/KidCare subsidy paid over
  5 years 154 million
• - Estimates based on available data from the
  State of Florida and Wal-Mart, using very
  conservative assumptions.

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Wal-Mart Relies on Taxpayers to Provide Worker
Coverage More Heavily Than Other Large Florida
Employers
Publix has more employees than Wal-Mart, but
relies on Medicaid and KidCare less.
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Wal-Marts Own Coverage Option Is No Option for
Most Workers Their Families

• Full-time Wal-Mart employees are not eligible for
  coverage for 6 months. Part-time employees are
  not eligible for 2 years.
• Most Wal-Mart employees cannot afford the high
  premiums.
• (21 of gross income for family coverage for a
  typical worker)
• In addition to premiums, employees also face very
  expensive deductibles and coinsurance
  requirements.
• (A full-time worker earning less than 9.08/hr.
  could spend more than his or her yearly take-home
  pay on these costs alone.)
• Even insured Wal-Mart workers and families lack
  adequate coverage.
• (Example Preventive or wellness care is not
  covered, except in very limited cases).

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AND There Are Other Pieces to the Wal-Mart
Subsidy Puzzle

• Other forms of public assistance needed by
  low-wage workers (Food Stamps, Earned Income Tax
  Credit, School Lunch, etc.)
• Infrastructure assistance (roads, development
  impact, etc.)
• Direct assistance (low cost land, tax breaks, tax
  credits, job training funds, etc.)

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Wages and Benefits of Jobs Created Through
Wal-Marts Development is a Relevant Concern for
the City

• The Land Use Plan shall direct and manage the
  type, distribution, density and intensity of
  developmentin order toattain the highest
  level of economic well-being possible for the
  City and its citizens.
• - Land Use Goal, City of St.
  Petersburg Comprehensive Plan

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Do Wal-Marts Wages Promote Economic Well-Being
of Its Workers?
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Two Strategies for Responding to Wal-Mart (both
may be necessary)

• Reactive Piecemeal Site by Site
• VS
• Proactive Systematic Citywide Ordinance
• (as a first step)

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Proposed St. Pete Big Box Ordinance

• All large scale (75,000 square feet) retail
  stores are a special exception use
• Additional economic, environmental and traffic
  analyses must be conducted
• (at retailers expense)
• Additional plans for addressing neighborhood,
  environmental and economic impacts
• must be submitted and approved

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The Initiative Process in St. Petersburg

• Ensure that the approach and the specific
  provisions address the concerns of alliance
  members
• Complete legal review
• Launch initiative process need 15,000 /-
  signatures of St. Pete voters
• City Council considers ordinance
• If City Council declines to approve the
  ordinance, it is placed on the ballot

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Next Steps

• Contact Your City Council member
• Schedule This Presentation for an
  Upcoming Meeting of Your Association
• Attend Town Hall Meeting on Aug. 11
• Attend City Council hearing on Aug. 23