Developing Big Boxes

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SESSION 1
Developing Big Boxes
ECC Board Member
Mike GardnerRegional VP of Real Estate Design
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Overview

• Walmart Realty
• Retail Development Process
• Lessons Learned
• Chicago An Example

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Walmart Realty

• FYE 1990
• 1,402 Walmart Discount Stores
• 123 Sams Clubs
• 1,525 Total Domestic US Units.
• 101 Million sq ft. for Retail Space
• 25.8 Billion in Sales
• FYE 2008
• 1,075 Walmart Discount Stores
• 2,256 Supercenters
• 579 Sams Clubs
• 112 Neighborhood Markets
• 4,022 Total Domestic US Units
• 616.7 Million sq ft. for Retail Space
• 345 Billion in Sales.

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Walmart Realty

• U.S. Development FY08
• 38.1 Million sq ft
• 26 Million sq ft net (4.8 growth)
• 192 Supercenters
• 13 Sams Clubs
• 20 Neighborhood Markets
• U.S. Development YTD FY09
• 23.8 Million sq ft
• 126 Supercenters
• 7 Sams Clubs
• 12 Neighborhood Markets

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Walmart Realty

• Who are we?
• Real Estate
• Design
• Architecture
• Legal
• Public Affairs
• Market Research

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Retail Development Process

• Due Diligence
• Survey/ Title Work
• Geotechnical Studies
• Environmental Site Assessment
• Traffic Impact report
• Utility Studies
• Environment Impact report
• Economic Impact reports
• Community Efforts

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Environmental Impact Reports -EIRs

• New York SEQR
• California CEQUA
• New Jersey CAFRA
• Florida Concurrency
• Vermont Act 250
• Maine MIGA

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Community Efforts

• Zoning
• Initial Check
• Look for trends and community concerns
• Assess compliance
• Develop By-Right Plan
• Examples
• Ephrata, PA Flood plain/Special use

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Community Efforts cont.

• Political Landscape
• Identify Approving Bodies
• Assess Voting Record
• Engage In Dialogue
• Examples
• Huntington Beach, CA Referendum
• Chicago, IL

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Community Efforts cont.

• Neighborhood Concerns
• Identify Associations
• Door to Door
• Neighborhood Meetings
• Listen to Concerns
• Design Solutions
• Examples
• Walls/ Trees/ Bushes/ Berms
• Livonia, MI
• Truck Traffic
• Security Cameras
• Site and Store tours.

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Community Efforts cont.

• Community Concerns
• Identify Community Leaders
• Engage in Dialogue
• Identify in Community Concerns/ Causes
• Create Solutions
• Examples
• Park Dedications
• Historic Building Preservation
• Ionia, MI
• Memphis, TN
• Tree Preservation

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Community Efforts

• Lessons Learned
• Develop a Local Presence
• Demand Competence Excellence
• Resist Urge to Cut Corners
• Let Others Speak for You
• Expect, Plan Budget for Litigation

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Chicago, Illinois
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Chicago, Illinois
Before Helene Curtis Plant
After
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Chicago, Illinois
Green Roof
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Chicago, Illinois
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Chicago, IL

• Involve Walmart Executives
• Lee Scott, CEO
• Tom Schoewe, CFO
• John Menzer, Vice Chairman
• Michael Lewis, Divisional President
• Todd Libbra, Regional General Manager
• Campaign For Support
• Alderman Mitts (37th Ward)
• Lobby Every Alderman
• Seek to Create Coalitions
• Black Caucus
• Hispanic Caucus

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Chicago, Illinois

• Create Jobs
• 443 jobs over 15,000 applied
• Over 70 from western Chicago communities
• Over 50 from 37th Ward
• 77 African American
• 18 Hispanic

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Chicago, Illinois

• Commit to the Community
• Walmart committed over 500,000 to local
  organizations, charities, and business
  organizations
• Building Local Businesses
• Support Local Chamber of Commerce with assistance
  to Small Businesses.
• Source product from Chicago based, minority-owned
  businesses
• Build using Chicago-based, female
  minority-owned contractor.

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Chicago, Illinois

• Margaret Garner
• CEO and President Broadway Consolidated
  Companies, Inc.
• First African American to head construction of a
  Walmart Store

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Corporate Relevance

• October 2005 Katrina
• Engage Non Governmental Organizations
• Listen to Criticism Suggestions
• Be Willing to Change

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Corporate Relevance

• Economic Opportunity
• Customer Savings
• Job Creation
• Environment
• Sustainability 360 products, practices, lives
  communities
• Health Care
• More Accessible, More Affordable Better
• Diversity
• Workforce Vendors
• Ethics
• Improve Pay and Practices in Factories

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Corporate Relevance

• Invite Others to Participate
• Set Goals
• Measure Progress