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HomeMy WebLinkAboutCOM 0634.004 2006-2008 September 5, 2007 Marie Aguilar P.O. Box 1874 Kailua-Kona, Hawaii 96745 County of Hawaii Planning Commission Chairman Angel Pilago Dear Councilman Pilago, My name is Marie Aguilar, and I have spoken to this Planning Commission in support of the Ban on Superstores in Hawaii County. The new Communication 634 -Bill 165 which was initiated by Planning Director Chris Yuen has a new approach to begin allowing a zoning district for "Superstores". While the bill attempts to convince some that this bill will regulate where the "Superstores" will be built, it does not go far enough to make requirements of that type of "District". It is merely a hollow attempt to appease us that we will have a new zone which it can be built in the future or not at all. The Ban of Superstores would disallow the building of Superstores in the future. The Ban of Superstores which was introduced by Councilman Higa was intended to support small businesses throughout Hawaii Island. Bill 165 is intended to make the right choice for this community but it does not regulate or attempt to regulate all lands in Hawaii County. While we know the Hawaiian Home Lands traditionally have no zoning restrictions on building, there is nothing in place that we can site today, that will discourage the building of "Superstores"on Hawaiian Home Lands and DNLR lands. We are faced with a huge crisis of overbuilding commercial here in Kailua Kona, and it will smother small businesses until they are gone. Remember the real attraction to the Hawaiian Islands is that we are a tourist destination. To commercialize Kailua Kona and other parts of this island will only drive our main economic force somewhere else. There are thousands of tourist destinations to choose from and those small towns, quaint villages, even cities like San Francisco, Monterrey, Carmel, and Honolulu are not giving into "Superstores" 634.4- . ~ , Rif. Da~_ Let me go further, I am co-owner of business in Kailua Kona, and I serve as a volunteer on three business organizations. I have the experience to relate to you that businesses in Kailua Kona are suffering daily with the traffic crisis. The visitors from the Kohala coast are not willing to travel to Kailua Kona for shopping and dinning. Their numbers have been decreasing for over four years. I have personally heard that traffic from the airport to Kailua Village takes over an hour during the week-days. You could hire the most knowledgeable traffic specialist in the world and he or she will not be able to solve this huge problem. It will take years of excellent planning of roads, changing patterns of driving behavior and creating affordable housing. There is such a severe job shortage here that retired people in their 70's are being brought back to the part-time work force. The new recent development across from HPM will be a mega-shopping area and hopefully it will have an in and out access roads, and will it cause more traffic congestion,?, of course it will. There are very serious problems that the Planning Commission must address, please bring back the vote to the County Council for the Ban on Superstores. We are only an island of 175,000. and most "Superstores" would select a city of at least 450,000. Please do the math and support local businesses and keep the aloha. I am enclosing a "Big Box Economic Impact Studies" report which is 11 pages. It will confirm that we must address all of the concerns that are raised in this study. Please read and decide the impacts to our island. We can become a beautiful tourist destination without "Superstores". Thank you for your time. The island of Kauai successfully banned "Superstores" Aloha ' 1~ dnv Ma 'e Agui cc: County ouncil cc: Mayor Harry Kim Encl. Big Box Economic Impact Studies New Rules Project -Retail -The Hometown Advantage -Big Box and Wal-Mart Econom... Page 1 of 11 new rules : rofail The HOIYletOWl1.~C~1~ltage Reviving Locally Owned Business Bj e~Mail this page to a FrMndl Search BIG BOX ECONOMIC IMPACT STUDIES fNharsNew-by date Download a PDF version of Mb page Hometown Advantage Below are aummartea and Ilnks to key studes that examine the Impad of Wal-Mart and other large retail chains and, M some cases, the benefits of localy owned businesses. Fa ease of use, ..`;y . weYe organized these studies Into the following celegortea (though „j„ May do not afi M neatty into one category): ¦ Economic Impact of Logl Businesses vs. Chains "xX. Studes have found Mal IocagY owned stores generate Home Page much greater benefits for Me local economy Man natlonal Buy These Boobt a,ama. About New Rules • Rebfl EmpbymeM These studies examine whether the arrival of a superstore Rules Index increases or decreases Me number of rebg jobs in Me region. Artides 8 Reports Reports & Links ¦ Wages 3 Beneffls Big-Box Impad SWdiea Studies have found Mat big-0ox retailers, particularly Wel- Fedsheets 19 Mapa Support Our Work Mart, are depressing wages and benefits for retail Legislatlve Platform employees. News ArohNe Contad Us ¦ Exktlng BusMesses Tools & How-To These slutlles look at how Me arrival of a big-Iqx retailer Wal-Mart Studies displaces sales at exlstirp businesses, which must Men downsiza or dose. This results In job losses and declining tax revenue, which some of these studies quaniHy. ¦ Powrry Rates LOCAL POLICIES: Counties Mat have gabled WahMart stores have tared Community Impact Review worse in brats of family poverty rates, according b Mis Comprehensive Plans study. Development Morebda ¦ Soebl and Clvie Well-Being Formula Business Reabict7ons Sign Up! Get the This sbdy found Mat WaFMarl reduces a cemmunitya local Purdwsing preferences Hometown level of sodal ceptial, as measured by voter turnout arM Neighborhood-Serving Zones Advantage Me number of edive eommuMry orgenizathxn. ~ Preverltlng Vacant Boxes Bulletin! - ¦ City COSb Store Size Caps These studies compare the munldpal lax beneflb of big- boxdevelopment wfih the coat of providing these stores REGIONAL POlrl~l: wkh dly services, such as road maintenance, pofice antl Regional Impad Review fire-ifnding Mat titles do not ahvays come as ahead. Tax-Bane SharMg ¦ Stab Costs Because many of their employees do not cam enough to STATE POLICIES: make ends meet, states ere reportlrp high cents Big Box Tax assoctabd wiM providing heakhcere (MedlceW) arM enter Corporeb Income Tex Reform publk assisbnce to trig-0ox empbyees. Curbing Corporate Welfare ¦ Subsidies Economic Impad Review Thb study documents more Man S1 dabn In local antl Interact Sales Tax Felmess stale development subsidies Mel have flowed b Wal-Mart. Limiting Vertlcel Integration ¦ Consumers b Prka Local Purohasing Preferences Am chains better for censumere9 Pharmacy Equity Laws ¦ TrNSe Probctlng Franchisees How do vehicle miles traveled and 61ps Mdease as a result of big box developments? NATIONAL POLICIES: AntiWSt Pdce Discriminatlon 1. ECONOYSC IMPACT OF LOCAL BUSINESSES VS. CHAINS Intamel Sales Tex Falmess The fofiowing sudies have found Met locegy owned stores generate much greater benefit for Ma local economy Man RELATED POLICIES: national chekis Community-Oarned Sports Lhring Wage The Ssn Frenebw Rebll DNerelty Study - By CMc Economks, May 2007 http://www,newniles.org/retaiUeconimpact.html ~ 9/5/2007 , New Rules Project -Retail -The Hometown Advantage -Big Box and Wal-Mart Econom... Page 2 of 11 Thfs study finds that San Francisco remains a stronghold for localy owned Dusinesses, which generate ctzebb beneflb for the dty's economy. The study has three parts. The first cakuletes martcet shares for indeperWents and drains in several eelegorlea: bookatoroa, sporting goods stores, toy stores, and casual tlining restaurants. b aq four categories, Independent businesses capture more than AaM of sales within the dty d San Frendaco, a much larger share than they have natbnagy. The second part examines the economic impad of locally owned businesses versus chains. It finds that local businesses buy more goods end services bcely and employ more people locally per unit o/sales (because they have no headquarters staff elsewhere). Every St milibn spem at local bookstores, for example, creates 5321,000 in add'dionel economic adivrty in the area, including 5119,000 in wages paW to local employees. That same St milNon spent at chain bookstores generates onty 5188,000 in local ecmomb adhMy, indudirp 571,0(M in loral wages. The same was We In Ste other cetegodes. For every St mggon in sales, kMependeM toy slaw create 2.221oad jobs, wNb chains create just 1.31. The float part of the sWdY analyzes the impad of a modest shpt in certsumer sperWing. If resklents were to redlred Just 10 percem of 8rek spendkrg hom dlelns to local buskresses, that would generate 5192 migion in addgbnal economic activity b San Frondsce and almost 1,300 new jobs. The Andersonvilla Study of Retail Economics - By Civk Economies, October 2004 This compelling study, commissionetl by the Anderoonv8le Developmem Corporodon, flrlda that bCely owned businesses gerrorate 70 percent more local economb impad per square fod than chain stores. The atutly's authors, Dan Houston and Matt Cumegham of Civic Economcs, analyzed ten lacegy awned restauroMs, rotaq stores. and service providers In the Andersonvgb neighborhood on Chicago's north ante end compared them with ten na8onal rhakls cempeting in the same cetegories. They found that spending 5700 at one of the neiphborttood's Independent businesses creates 588'vr aUdiBonef local econanic adlwy, whit spervlfrtg Stgo at a chain produces onty 543 wont of local Impact They afro found that the local buskrewes generated sggh5y mac saba per aquaro /ool cemparod b the drains (5283 versus 5243). Because dtalns funnel moro of thb revenue out of the bcel economy. the aDrdY ca~uded that, for every sgwro foot o(spece oxupbd by a dreln, the bcW economle impad b 5105, compared to 5179 for every square foot oeaWbd by an IndeperoleM busMess. The Economic Impact of lotalty Owned Businesses vs. Chains: A Cps Study In Mldcoast M®Ine - by the Instqute for local SeB-Regence antl Friends of Mklcoast Makte, September 2003. Throe times as much money stays M ihs locel ec«romy when you buy goods and services from bcely owned Dusirlesaes instead of hrge chats stores, according to thn anaysis. which tracked the revenue and expendihues of eight localy owned Dusinesaea in MWceast Maine. The survey found that Ste businesses, wqh had comDbed sales of 55.7 rrdYan in 2002, spent 44.6 percent d ihak revenue wgldn the sunountlktg two tountlea. Another 6.7 percent was spent elsewhero th 8te wts of Mskre. The tow largest cemporlena d thk beat spendkg were: wages and berreflro paid b Beal empbyeea; goals and services purchased Tram other iocel buaheases: proMs that acmled to http://www,newrules.org/re;taiUeconimpact.html 9/5/2007 New Rules Project -Retail -The Hometown Advantage -Big Box and Wal-Mart Econom... Page 3 of 11 local owner; and taxes paid to local and state govemmenL Using a variety of sources, the analysis esamales that a natlonal big box retailer operetlng kt Midwest Maine relums jud 74.1 percent of ks revenue to the local economy, mostty in the form of payroll. The real haves the state, flowing moot-of-elate suppliers or bade to wrporete headquarters. Tha survey also found that the lord businesses wntribt7led more to charity Nan natlonal chains. Economic Impact Analysis: A Case Study - Dy Civic Ewnomics, December 2D02. This sWdy examines Ore local economic impel of two locally owned businesses In Austin, Texas- Walerloo Records and Bock People-and cemparea Nis with dre ewnomic relum the wmmunity would receive from a Borders ewks store. The study finds that spending 5700 et Borders credos S13 worN oT local ewnomle actlvfty, whoa spending 5100 at the local stores generates 545 in heal ewnomic adivity. The tllRerence b atlributetl to three fedora: a higher heel payroN d the trrtlependeM stores (because, unlike Borders, none of Nelr operatbns are carried out a an oul-of-lows headquartea o1NCe): the local stores purchased more goods and services kreaNy; and the krcal stores mtained a much larger share of thetr profits wflhM the heal ewnomy. 2 RETAIL EMPLOYMENT These studies examine wheNer the amNal of a superstore increases or decreases Ne number of retail Jobs N Ne region. The ETfecb of Wal-Mart on Local Labor Markets - - by David Newmark (University of Calitomia-Irvine), Jun1u Zhang (Clark Unversity), end Stephen Clwarella (Comdl lhtlversily), IZA Diswssion Paper No. 2545, Jan. 2007 This aWdy precenb Ne most sopMstinted anaysis to sate of WaFMarth impel on refaN empbymeM and wages. Anatyzkrg natlwtal dam, the study found Net Ne opening of a Wet-Mart store reduces wuntyaevel refeY empbymwtt by 750 jobs. Beeattae WsFMart afores empbY sn average of 380 workers, thb suggeaffi That for every new etaN Job created by Wal-Marl, 1.4 Jobs are lost as exlstlrtg businesses dowrtsize M dose. The study also found Nat the artival of a Wal-Mart slow redoes told wrxdy-wMe retaN payroN by an average of about 57.2 mplbn. Thb study trrrproves wbahntialy on previous studies by convtrkkigty acwtrntkrg for Ne endogenelly of the loeatlon and tlming of Wal-MarCs entry imo a partlcular local market That k, Wal-Msrt presumably tloea not locate stores rendomty. When exparMktg imo e partlwlar region. A may. fa example, opt to btrNd in towrro etgferbndng groaterJob growth. Unbss thM bcatlon sekctlon bias is awourtted for. one might wmpare job growth kt towns Nd gained Wal-Mart stores verses Nose that did rest and erroneously wndude Nd Wal-Mart cawed an experubn in empbyment The auNOrs of tlds strrdy have devised a persuasive meNod of aocountlng for thb hies. They also argue that the method devebped by Backer (sea neM Item Uelow) to aowtatl for Nis bias is flawed and therefore her wndusion Net WaMtart has a smap postlNe impel on etaN empi0ymera is nd reliable. Job Creation or DesWOdon7 Labor-Market Effects of Wal- Mart Expanabn - ey Enrdt Backer, UNverstly or Miasad, Review of Economies b S/atls8a, February 2006 ORen ailed and typlceNy mfarepresenbd by WaF http://wwnv.newrules.org/retaiUeconimpact.html ~ 9/5/2007 New Rules Project -Retail -The Hometown Advantage -Big Box and Wal-Mart Econom... Page 4 of 11 Mart supporters, this study examines Me impact d the arrival of a Wet-Mart store on etaN and whdesale employment. It looks al 1,749 counties that atlded a Wal-Mart between 1977 and 1998. It flrWa Mat WaLMarrs snivel boosts retail empbymeM by 100 jobs in Me first year~ar kss Man the 200-400 jobs the company says its ataea create, because Its snivel causes existlng retaikrs ro downsize antl ky-oft employees. Over the next four yeah, them is a loss of 40-811 edditlonel refetl Jobe es more eompetlng retailers downsize and dose. The study also finds that Wal-Mart's arrival leads to a dedine of approximately 20 local wtxrksale jobs in the first five yeah, and an additlatal 10 wholesek jobs over the kng run (six or more years afler Wal-Mart's arrival). (Wal-Merl handles its own distribution and does not rely on wholesalers). This works out to a net gain of just 10.30 retail antl whdesale Jobs, and Me study does not examine whether these Jobs are part-dme or whether they pay more a less Man Me )obs elirttinakd by 4Va1-Mart. The study also found that within flue years of WaF Mart's arrival, the countlea had kst an average of four smatl reteN businesses, one midsized store, and one large store. n dose not estlmate tledinas in revenue to relaikra Mat survhre. Beaker rooked at the effect of WaFMart on stag employment kr neighboring communitles, but round Mat the confidence intervals were too krge (tneadng the result showed wWe varladon) ro draw arty rxrndtrslon about WaFMarl's snpad (Her Initlal working paper, published in 2002, reported an average dedine of 30 retail jobs in sturoundrog communifles, but, after conectlng an ertor, she determkted the contidence Intervals were too large ro produce a predse result.) 3. WAGES i BENEFITS These studies examlre Me efted of big-box chains, particularly WahMart, on wages and benefit for rerott empoyees. What Do We Know About Wal-Mart9 - BY Ametk Berrrhard4 Anmd CfiWdha, and Slobhan McGreM, Brennen Centerror Jusflce, August 2005 Thb scrupulousy fad-checked and rootnoted repot ouunea what we know about Wal-Mart, in terms of its wages, health Insurance benefits, compliance wiM labor laws, antl cost ro states. Il detaNs average atattN9 wages for variouc)ob desanlatlons. H repoAS Mat Wal-Mart empkyeea cam 20 percent less Ihan retaN worker on avenge. n outlktes the ouFOf-podtel costs. mverega gmttrdrons, and ellglbgtty requkemeMa ror fife retailers health Maurence plan, and compiles kdonnatlm on what vadoue states are spending ro proNtle Medlnta to unMSUred w.l-Mart empkyees and gtek children. The report also summarizes Wd-Man's record of kbor law Yrolagona. Impact of Wal-Mart GrowM on Eemings Mroughout the Retell Sector In Urban end Runl Counties - By Arindnja Dtree, Barry Eldlro, and Bda !.ester, InsMUk of IMrrsbiel Rdetlorts Woddrrg Paper Series. 2005 This study analyzes the impact d Wal-Mares expansion during Me 1990s on the earnings of rated workers. (tt uses a similar technique ro aCCWnI for possible biases in WabMarrs store roeatlon dederons as the study described ro Me RETAIL EMPIOYMEt4T sectlon above, The Ellett of Wal-Mart on local Labor Madteb.~ Thk shrdy tared that, bt wuntles Mat an part of Meaopdttan Statbtlnl Areas (MBAs), every adtiabnal WaFMarl store reduces averege earnings h tllat curdy by between 0.5% end 0.3%t'w workers at genenf merchandise stores and http://www.newrules.org/retaiUeconimpact.html ~ 9/5/2007 New Rules Project -Retail -The Hometown Advantage -Big Box and Wal-Mar[ Econom... Page 5 of 11 between 0.8% and 0.9% for grocery store employees. This tlrop in average eamings, combined with a reduWOn In the overall number of Jobs hr these sedors ceusetl by WaFMert's arrival, produces a total bq in eamings for grocery end general merdumdiae workers of 1.3% for each Wal-Mart store that opens. MSAS are urbanized ceuntlq Mat acceunt for neatly 85% of the populatlon. Between 1988 end 2000, Me share of MSA eountbs Mat had at least one We4Mart Irkreasad from 33%to 79%. For non-MSA coun5es, the study bund that Wal-Mart's snivel reduced earnings for grocery workers, twt reised eamkgs for general merchandiq store employees. The aggregate egad on total eamings for all retaN workers in these non-MSA coun8es was zero. The study es8mates Mel, in 2000, Wei-Man's presence reduced total eamings of retell workers nadorrwide by 54.7 billion. Reviewing and Revbing Wal-Mart's Benefits Strategy -Memo to the Wal-Mart Bgrd of Diredors from Sugn Chambers, Wal- Mart's exeative vice president for benefib. Od. 2005 This hdemal memo leaked to VJaI-Mart Watch asseasq Wal-Mart's ameM heatlh care benefits and oMers atrategbs to DoM reduce Me axnparry's - heaNh Insurance coats and neutralize rxitldam of Ns empbyment practlces. The memo reports Mat only 46 percent of Me company's ampkryga are enrolled trt Il5 Msurence pion, canpared to an average of 88 percent fir nafional employers. Excessive out-of-pocket cosb, Indudhq expensive premiums and hph deductlblq, are to blame. 'Our coverage is expensiveforlow-incase famNies, and WeFMert has a signficaM peroxdage Of Assaietes and thek chlWren on pubNc assistance," Me memo noka. Employees enro0ed in Wet-Mart's Insurance plan sperM an average of 8 percent of tlretr income on hea8h care. rrgdy twke Me natlonal average. Aknost 40 percent spBnd more Man 18 percent otthek income. a cdppling cost for workers who cam lass Man SZO,D00 a year on average. The memo a160 feparta Met W8E•Mart has a larger share d its empbyeq end Metr ehiklren eraoNed b Medirakl compared to other companies. Mn ttdal, 48 percent oT Agodates' eh9dren are ekher an AAedlcekl a' are uninsured.' k notes. Thor memo ofiera strategiq for redudng WaFMarrs health care costs, indudirg inaeesing the perceriaga of Part-time employees and "design[ing] aN jobs to kroNrde sane phydcal adk4ty (e.g., aN ceshbrs do qme art paMerkg)." The latter recerrtrrterrdatlon aims to "dissuade unhealthy peopb from carrkrg b work al Wa4Mart." The Impact of Big Box Oroeers on Southern CaIHomla: Jobs, Wages, and Municipal Flnaneq -Prepared for the Orerge County BuWreas Courai by Dr. Medon Bgmet of the UMversigr of CaNfortYa at Irvine ant Dr. Randall Crane of the UniveraNy of CaNfomia at Los Angeles, 7999. The most useful parts of Mb study dql wNh Wal- Marra impad on wagq. Thor study cenduded Mat. as wal-Mart bates supxcenters In aoulhem Ca9forMa, Me company wiN absorb W to 20 percent of the region's grocery market and cut grocery workers' income by up to 51.4 billon annuaay. Unionized supermarket workers M souMem CalHomia make Ma equivabM of 518.25 an hour In wages end benetlts, accarding to the study, while Wal-Mart empkryeea cam just 59.63 pa has. As Wa4Marl expands M the regbn, N wIN replace hqh-wage Jobs wNh low-wage jobs. It wiN probably also force unlonbed supermarket workers to accept subsmrrtlel wage and berteM ant to keep Met employers eompetltlve. The mmbMed wasp are eaNmated in Ma range r# 5500 mNbrr to St.4 http://www.newtules.org/retaiUeconimpact.htlnl ~ 9/5/2007 New Rules Project -Retail -"The Hometown Advantage -Big Box and Wal-Mart Econom... Page 6 of 11 bieion. The study also compares health insurance benetib at unionized supermarkets and WaFMart, and examines the tax and revenue implica5ons of supercenler development. L EXISTING BUSINESSES These studies look at how the enNal of a big-box retailer tlisplaces sales at existlng busMassea, which must Men downsiZe or dose. resuldnp In job losses end dedining tax revenue. The Impact of'Big-Box' Building Materials Stores on Host Towns and Surrounding Counties in a Midwestern State - by Economics Prorassor KenneM E. Stone and Extension Program Spedalisl Georgeanna M. Artz, Iowa State University, 2001. This study examines several Iowa communities where big box bu0ding supply stores, such es Menards and Home Depot, have opened b the last decade. Sales of hardware end building supplies in Me host community and surrounding counfles are backed over several years to test what the auMors cog Me "zero-sum-game theory,' namey Mat the retafi salsa gains generated by big box stores are offset by sales losses at existlng, often bcatly owned, rethtl stores. Tha results conflrtn the theory, flndkg that sales of hardware and buiMktg supplies grow in Me' host tommtmitlea, but at the experrae of sales k smatler towns nearby. Moreover, albr a few years, marry of the host communites experienced a reversal of fortune: sales of hardware and brdldkg supplies declined sharpy, open dropping below Mek mitlal levels, as more big box siorea opened in the surtounding region end saturated the market What Happened When We4MaR Cams to Town9 A Report on Thee Iowa CommundMS wdh a Stafkdgl Anaysb oT Sewn Iowa Countlp - by Thomas Muller arM EllzebeM Humslone, Natbnai Trust for Hialork Preservatlon, 1996. This sWdy examined Me hoped of Wal-Mart ar severel Iowa cwrrmunitles. tt found Mat 84 percent of a1 sobs at Me new Wa~Mart stores nma at Me experue of existlrq businesses wtthin the same count'. Any is percent of sales came from outside Me eourrty-a fiMhq whirh refutes Me notlon Mat Wet-Mart can aG a3 a magnet drawktg asibmefa from a wide area and baneming other Duskteasea b toxm.'Atthotgh some suggest Mat the presence of Wa4Mert otrlsbe of, lkrt near to, the downtown ' area resufis in adtlitlonal aotlvity downtown, both setae data and ba11k date do not show thb gain,' the shxy conWrdos. "None of fire nine see studies was experiendnp a Idph enough bvel of populetlon and klcorrte growth to absorb the Wal-Mah afore wtlhotd losses b oMer busineaaea.' The attby doarments bases in downtown stores after WaF Marl opened. "General merchandise stores were moat afkded; the study notes. "Other types of stores Mal riosetl kdude: automotive stores, hardware stores, clop stores, apparel stores, an0 sporgng goods stares.' The supposed tax benefits of Wal-MeA dk not materlalisa ehher:'ABhough Me kxxl tax bass added about E2 milfion wtlh each WaMAart, Me dedhre in retefi stores fofiowing Me opeMng had a depressing effect on property values in dowmowns and on shopping stops, oflseWng gains from Me Wa4Mart property." Compedng wtth the Dbeount Masa Merehandisers - By a. Kenneth Slone, kxwa State University, 1995 The bask premise of this sWdy and othere by Ken stone Y Mat Me retatl "pb' b remtnrey fixed m size (k grows ony ktaemantaly as populatlon and ktcomes grow)- Consequently, when a tangent' http://www.newrules.org/retaiUeconimpact.html 9/5/2007 New Rules Project -Retail -The Hometown Advantage -Big Box and Wal-Mart Econom... Page 7 of 11 tike WaMAart opens a giant store, N inwdably apturea a substamial slice of Me rebN pie, leaving smaNer potions for existing businesaea, which ere Men forced to dowrrsize a dose. This study of Wal- Mart's impad on Iowa towns found Met Me average auparotore Cost other marchanb in Me host town about Sit mNNOn a year M sales (as of 1995), while stores M smeller towns nearby also suffered sutrehn6el revenue asses. These sates losses resulted In Me doaure of 7,328 lase businesses between 1983 and 1993, Mdudkrg 555 grocery atorea, 291 apparel stores, and 298 hardware stores. While towns that gained a Wal-Mart store Inidely expedenced a rise in overalt mbN sales, after tlra ftrsl two or Mree years, retaN sales began to dedkre. About one M four towns ending up wiM e lower bvel of rebil a Wvity Man Mey had prior to Wal-Mart's amval. Stone attributes Mia to Wal- MarYS strategy of saturetlng regions wiM mu0iple stores. 36 Alban, VamoM Shb Emlronmantal Board Act 260 Dsebbn, 1994 A catlbenef8 anatysk of a proposed Wal-Marl stare h St Albans, Vermont, found that Me store would cause dozens of exbtlng buslrressea to dose, leading to a net loss of 110,000 square feet of retail apace. The 214 jobs sealed by the new superMae would be o0set by the ba of 381 jabs et other Duakresses. The aaysb also found Mst ttre owreN lax losses expecbd hen Me Smelt business hNUres wouM be greater Man Me tax rewrwe genereted by Me new WaFMart. Moreover, Me dry would Inax a wrlety of crew coati to provkb roads. sewers, polbe, and ttre proledlon to servke the aprswgng new development The anayW wnduded Malta awry doNar in tax berreM seated by the superotoro, Mere would be 2.5 doltaro M tax losses and Wblic coats. 0. POVERTY RATES Counties Mat haw pairretl Wal-Mart stores haw fared worse In terms of hmNy poverty reran, accoNing to Mb aody. Wal-Mart and County-Wide Poverty - by Stephan Goeh and frame SwaminMan, Soda) Sdena Quarterly, June 2006 The prosena of a WaEMart atom hinders a community's ablNty tomow htoi8esout of poverty, acceding to this study. After controBrrg fa oMa hdors thst krftuerra poverty rates, the strWy found Mat U.S. wuntlea Msl had more Wet-Mart afaes M 11187I1atl a higher poverty reb M 1989 Man did countlas Mat sbrled the parted wlth fewer a no We4AAert stores. The shMy abo brartl that countes Mat added Wal-Marl stores between 1987 and 1998 experienced higher poverty cabs and greater usage of food stamps Man counties where Wal-Mart dW not build, all Wher Mings being equal. ANqugh Me study does not attempt to draw a mrrcbabn about why WaFMart expands Poverty. the sWdy's auMoro suggest savant possibb hdoro, indutling a ties of aotld apNal Mat ocam when baby owned buasreaaes dose arM the shill from canparelhrey beta PeYin9lobs at indeperxlenl rebNers to tower paying joW al Wal- Mcrt (an eedier, unpublished dreft an be downloaded for tree hero.) Marry university Iltxarbs also arty Soda) Sderroe Quarterty. 0. SOCW. AND CMC WELL-BEING Thb study foraM Mat Wet-Mart radices a eommunltys level of nodal apitd, a measured by ester wmout and the number of actlvs corrrnaaaty oryanlzetlorrs. http://www.newrules.org/retaiUeconimpact.html 9/5/2007 New Rules Project -Retail -The Hometown Advantage -Big Box and Wal-Mart Econom... Page 8 of 11 Wal-Mart and 3oclal Capital - by Stephan J. Goetz and And Rupasingha, American Journal of AgdalWrel Economics, Dec. 2006. The presence of a Wal-Mart store reduces a community's level of nutlet capital, Mis study found. The study examined communitles that had or gained Wal-Mart stores in the 1g90s and conbolled far other vadabbs known to aged nodal capital atodca in a community, such as educational etlainment.'BOM the initial number of (\Nal-Mart] stores and each store addetl per 10,000 persons during the tlewde reduced the overall social capital meawre; Gce~ and Rupesingha found. Commurdtles that gained a Wal-Mart had (ewer non-proM groups ant soda) capital-generetlng assodadons (such as churches, political organtzefiona, and business groups) per capita then those that dd not. WaMiarl's presence also depressed cMC paNdpetlon end b essodated with bwer voter axnoul b Me 2000 presidential ebdfon. Goetz and Rupeskpha hypothesize that the drop in aodal tepnal b owned to the disappearance of local businesses end Me decline of the downkw+n following Wa4Marra artival. 7. CITY Cf)8T8 - Theca studies canpere the munkipal tax bertefib of big-box development wtlh the cost of proNding Meae stores with dly services, such as road maintenance, pdice end flra--findMg that dtles do not ahvays come out ahead. In additlon tb ((face studies. see Wal-Mart's Impact on Pollee Coab Understanding Ne Fiscal Impacts of Land Use In Ohb - by Randall Gross, Development Economies, August 2004 Thb report reviews and summarhes the findkrgs of fiscal impad studies concluded in eight central Ohio commurdtles between 1997 and 2003. In seven of the eight communilbs, reten devebpmeM aea0ad a drain on munir9pal budgets (l.e., @ required more b publb services, such as toed m~nanee and poke, Man 6 generated b tax revenue). On average, reran buildings Produced a net annual bas of 50.44 per square fooL'The concept tlret growth b always good for a canmursty does not seem to rnrrebte with the findings from - V1rteUS fiscal analyses Conducted 6xouphaa Central Ohb,' the report Concludes. h Ceunons - dtlea trot to De taken in by Ma prombe of lsgh fax revenue tiom s new development without also conakfedrg the additional coats of Prevldln9 services. UrYike ratan, once and mdusidal development as well as some types of residential, produced a net tax benellL Flaeal Impact Analysis of Residentbl and NonrgMsnWl Land Use Prototypes - by Tbdder b Assodatss, July 2002. Big boz rated. shoDPb9 Canters. ant fast-food restaurants cost taxpeyere m Bemstabb, Maasadwaetls, more Man they produce b revenue, aaordkg to fhb anarysb. The sWdy compares Ere tsx revenue generated by dtlferant lords of residential and commercial development with tlra actual cost of prov(dkg pubnc services for each bntl use. The study fountl Mat Dig box retai generates a net annual deficit of 5468 per 1,OD0 square feel Shopping Cenlere likewise produce an annual drain of 5314 per 1,000 square feet By far Me most costly are feat-food restaurenb, which have a rtM annual Coat of 55.166 Per 1,000 square feet. In contrast, the swdy found that spadany ratan, a cabgary that btdudes sma6-scab Mein Street businesses, has a positlve ImPad on pubic revemte (I.s., n generates more tax reverxte (turn n ousts to service). Spsdany rebN produras a net http://www.newrules.org/retaiUeconimpact.html 9/5/2007 New Rules Project -Retail -The Hometown Advantage -Big Box and Wal-Mart Econom... Page 9 of 11 annual rehxn of 5328 per 1,000 square feet Other commercat lend uses that are revenue winners induda business parks, of8cea, and holds. The two mein factors behlrM the higher costs for big box stores, shopping centers. and fast-food ounete. compared to specially retail shops, are higher road malntsnance costs (due to a much greater number of ear trips per 1,000 square feet) and greater demand for public safety seMces. Understanding the Tax Base Consequences of Local Economic Development Programs - by ftKG Associates, 2D01 The sty a ConcoM, Now Hampshire provides en example of what can happen when a community allows massive commercal growth while failing to protect its existing economic assets. Over the last 12 years, Concord added 2.8 million square feet of new commercial and Mdusaial development Yet tax revenue has aduany dedktad by 19 percent To make up for bat revenue, the town now has one of the highest property fax rotes let Me state. This study try RKO Associates, an independent economk consuttlnp flan, found that there were several lessons for the dedkrkrg tax base. one was Mat new ratan deveopment prknarny big box stores. had harmed IocU businesses. Property vakres, and srdxrequerdy tax revenue. M the older shoppirg areas had declined sharpy. Another fader was first the new development had eroded the value of residerrfiel property, probeby due In part to increased treflfc and noise. The end resuR was Mat the cnll atluefly experienced a dedinMg tax base dasPtte ant d the new growth. Impseb a Dsvebpmsnt on DuPage County Property Taxes - Prepared by DuPape County Development Department for Me County Regbnal Planning Commission. Illkrois, October 1991. This study demonstrated Mat Me eosb of eneourogkg new commerdal development- extending higtavays and uaWis, expanding munfdpal eervtees eke pdice and fire protection, and proWdkg deveopment fatencag and incentlvea--exceeded the new propaAy and sake tax revenues Me new development generated. Tha study rxmcludad'... Mere i6 a significant statlsfical reletlonahlp between new development (boM resWantlel ant rwnresWentlaq and Inaeesea In . Personal propertytaxes." - a srarE cows Because many otatetr employees do nd eam enough to make ends meet, stets are reporMg hqh coats assodaled wah providing Irealtltrare (MetlkeW) end other public assistance to big- box empbyees. N additlon W the fonowing shWks, see Oood Joba FIrmYs web page detankg states that have tllsdosed how much May are sDendln9 on provMmg Iteeflh irquronca for empoyes of VVaF Mart, Home Depot, Target, and other big-box retailers. Hidden Cost of WeMASrt Jobs - by UC Berketeys Irutibda for Industrial Ralatlons, August 2004 Celifomia taxpayers era spending 588 million a year providing taanhcare arxl oMer Public asfstance to iha scotch 44,000 Wal-Mart employes, axoMing to Mis study. The average Wa4Mart worker requires 5730 Mtaxp~yer-funded healthcare and St,?22 M oMer forms Of aeciatance. such s food stamps and subsidized housing. Even compared to oMer refatters, VVeFMM imps an speda9y large burden on taxpayers. WaFMart waken cam 3f ptucera lean than the average for workers a Mrye ratan compartis and regWre 38 http:!/www,newrules.org/retail/econimpact.html 9/5/2007 New Rules Project -Retail -The Hometown Advantage -Big Box and Wal-Mart Econ... Page 10 of 11 percaM more k publk esNatance. The study estlmares that 0 competing supermarkets and other large retailers adopt Wal-Marta wage end beneM levels, a will cost Celifomia's taxpayers an adtlltional 5410 mifilon a year in pubOc assistance. Everyday Low Wages: The Hidden Prtce We All Pay for Wal- Mart - by the Democretlc Staff of Me House Commitlee on Edueatlon and the Workforce, Feb.2004 Although this study uses different methodology than Me one above, ft arrives at the same condusion: Wal-Marta low wages and meager benefits are cestlng texpeyere. The average Wal-Mart employee requires 52,100 per Year in DuWk assktance. induding Sectlon B housing vouUkare, reduced-cost lunches for dependant chiaren, health care progrems, and tax credits for Me workirp poor. a. SUBSIDIES Shopping for Subsidies: How Wal•Mart Uses Taxpayer Money to Finance Its Never-Ending Growth - by Good Jobs FYst. August 2004 Thfa study identifies 2M WaLMart stores and tllstriblAlal centers in 35 states that have received slate and local development atresales totefing just over S1 txlgar. The subsabs look many forms, Indudtng property fax rebates, free orreduced- priced IoM, arM funding of site preparation and or? site i~budure. Tax InaemeM flnandrg (TIC ranked es one of the most common mechanisms used by local governments to underwrite Wal-Mart's growth. The total value of pubtlc gNeaways to Wal- Mart b undoubtedy much higher than the 57 bilgon doamented by Ore report. OWaMing complete data on subsales b vMualy knposaibb. In most states, kcal governments and sts~ ageneba ere not regkdred to report subsaia, and Mere b no centralized record or database. Goad Jobs First relied pdmariy on the ongne archNes of local newspepare to assarrrble tlro gel of subsidy deals. Me Oelags of wMch were conflmted by Interviews wiM scat oifxiels. 10. CONSUMERS ti PRICES Wrestling with Wal-Mart: Tndeoth Betwwn Profits, Prices, and Wages - By Jared BernsteM, Josh Biverrs, and nrkrMapt Dube, Economk PoNCy Institute, June 16, 2008 Thb analysis refrrles the Mdings of a 2005 study by Global Insights (Gq that found that WahMaA saves U.S. rxmuanere 5263 bMon aruwaly, or 52,329 for the average trousehoa. The Economic Policy Instltule Condudet that the GI study 4 "fraught wiM probbms." h aenti/ks major internal Inconsislendes M GI's flgurea and finds that the firm's ste~tlcal enaysis Yags the most rudimentary sens6My checks." The autlwre state. "Once we addressed these weslmesses the statlatlcel and precfkal significerree of WaFMarts prtce efteeb effeakrey vanished." Time to Swhch Drugstoresi -Consumer Reports. October 2003. 'If you're among Me 47 percent of Americans who get medidne from drugstore glards such as CVS, EdkeM, and Rite Aa, here's a presalptbn: Try shopping somewhere else. The bast place to alert looarq b one of the 25,000 krdependeM pharmadea Mat ere makirq a comebedk Mrouphouf tll9 U.S.• opens Mb artlde, Whkh presents Me reaWb of a year-lorry survey of more http://www.newrules.org/retaiUeconimpact.html 9/5/2007 New Rules Project -Retail -The Hometown Advantage -Big Box and Wal-Mart Econ... Page 11 of 11 man 32,1X10 readers about mek dngslore expectances. The survey found ma4 DY "an eye- popping margin,' independem drugstores outranked all Omer phennedea- -inducting dngstore dtakra, supermarkets, mass merchandisers (e.g., VVaFMert), end iMemet companies-in terms of providing personal attentlon, oMering hearth services such as in-store screenings,111Nng prasctipgona gWdrly, suPPbin9 hard-to-Ilnd dogs, and obtaining oW-of-stock medieadons within 24 hours. Pdces el mdependenl phermades were lower men at chain phertnadea, but higher man at mass merchandisers and intemel companies. 11. Trellis Trip Genereton Chareetertstics of Free-Standing Discount Superstores - DY Georgians M. Vivian, ITE Journal, August 2008 This study found that supementars of 200,000 square feet or more generate an average of 42 percent more traffic than the rate acted in me Inslflute of Transportaaon Engineer Trip Generation manual. Treflk engineers, devebpere, and dly ofOdals uce the figures in tltis manual to estlmate fhe trafac impact of deveopmenl Prok~• Thb study, which rNies on ire111C eormb conducted at five supercentera m Oidatwma and Taxes, indicates that the manual signMcantly underestlmates the daflic generated by large supercen~rs (stores that combkro gervarel merchandise end a fua grocery departrnent) and that traffle analyses Dosed on fl are rmrellable indicataa of tlro actual traf8e impact of a wpercenter development. Copyright - instlNM for Loul Self-RelWnce The New Rules Project-hltp:/Avww.nawrutes.orgl http://www.newrules.org/retaiUeconimpact.html ~ 9/5/2007