Walmart Distribution Center In Baytown

[BayouCityGirl]

anyone have any or what it is exactly?

[houstonsemipro]

Yes. I've heard about this. The new Wal-Mart Distr Center will be 4 million sq.ft. the largest Distr Center in the nation now, located in Baytown, Tx.

They will ship their goods at the Port of Houston to the center, (talking about money for the port).

I will try to get on at this center.

[RedScare]

Story in yesterday's Chronicle

http://www.chron.com/cs/CDA/ssistory.mpl/front/3211156

[H-Town Man]

That's a pretty good article - notice what it says about how Houston has superceded LA/Long Beach as the best port to bring retail goods into the country. Wal-Mart and Home Depot have their major distribution centers here, and now it says Lowe's and Target are in talks. Apparently this will attract a lot of other companies because they will all be jumping to get on the same ships that bring Wal-Mart goods. Houston may never be a center of cultural importance in America, but when it comes to physical importance, and making this country run, we are high and getting higher.

Side note: Does it worry you a little that the reason why the port is so important to Wal-Mart and why all these other companies are interested is that all of this stuff is coming from China? Think about it - fifty years ago, it didn't matter what port the nation's leading retailer was using, because the nation's leading retailer (I don't know who - Sears perhaps?) WASN'T IMPORTING ANYTHING. It was all made right here in the good ol' U.S. of A. Now it is as if the whole country is being fed through a tube, and the thing at the other tube is none other than China, our friendly totalitarian neighbor across the Pacific.

[BayouCityGirl]

Wasn't it also that we ALMOST had Burger Kings headquarters here but it slipped through our fingers?

when I typed this question I was overtired...excuse me for that. I was bidding on Ebay and trying to wait for the bid to be over before someone stole it. (OT)

[LTAWACS]

That's a pretty good article - notice what it says about how Houston has superceded LA/Long Beach as the best port to bring retail goods into the country.  Wal-Mart and Home Depot have their major distribution centers here, and now it says Lowe's and Target are in talks.  Apparently this will attract a lot of other companies because they will all be jumping to get on the same ships that bring Wal-Mart goods.  Houston may never be a center of cultural importance in America, but when it comes to physical importance, and making this country run, we are high and getting higher.

Side note:  Does it worry you a little that the reason why the port is so important to Wal-Mart and why all these other companies are interested is that all of this stuff is coming from China?  Think about it - fifty years ago, it didn't matter what port the nation's leading retailer was using, because the nation's leading retailer (I don't know who - Sears perhaps?) WASN'T IMPORTING ANYTHING.  It was all made right here in the good ol' U.S. of A.  Now it is as if the whole country is being fed through a tube, and the thing at the other tube is none other than China, our friendly totalitarian neighbor across the Pacific.

<{POST_SNAPBACK}>

Yes, I agree. And they have nukes for cryin' out loud!

[Subdude]

The Wal-Mart project could be a big boost for the regional economy as a logistics hub. It is a great way to leverage the port and the expanded air freight capabilities at IAH.

[The Great Hizzy!]

^^^ Moreover, diversification of the Port's overall function is a good thing. The Port is large, very busy, but a good percentage of the port's commerce is centered around petroleum related items. Dealing in the distribution of wholesale and household items on a larger scale makes the port more viable long term.

[kjb434]

Having these distribution centers is a great thing for our local economy. You have to realize that these companies are willing to pay extra to have a ship from China to pay to go through the Panama canal and come to Houston. There's that added cost yet, they still chose us.

Houston's port is also going to be location for increased trade with Central Americal through CAFTA (Central America Free Trade Agreement). The concept was around for years (from both polictal parties) and Clinton began the negotiating talks. Bush is wrapping it up and Congress is finishing off thier role in ratifying the treaty. This will allow increase goods shipments to come into the US. At the same time, the countries exporting will have acces to US goods at lower rates. It's a win-win.

Wal-Marts Distribution facility is a pretty awesome site. And for you environmental crazies, they are providing more detention and remediation to the surrounding land than it required. Essential the place will be surrounded by a massive lake that'll allow local fish, wildlife and plantlife survive. I read the drainage studies since I worked on the Master Drainage Plan for the Cedar Crossing Industrial Park that Wal-Mart has built in. Home Depot provided similar remediation. The most amazing thing is that they weren't required to do any of it because they are in Chambers County.

[Subdude]

You have to realize that these companies are willing to pay extra to have a ship from China to pay to go through the Panama canal and come to Houston. There's that added cost yet, they still chose us.

The rationale was that the primary port, LA/Long Beach, was experiencing labor difficulties and capacity restraints not only at the port facilities, but with the roads and railroads that serviced the port. As a result, there were times when ships were stuck in the water without being able to unload, most notably before last year's Christmas season. Despite the extra cost in both time and money of shipping through the congested Panama Canal, they still figured it was worth it because it was easier to develop the necessary infrastructure here. The case for Houston was also helped because of our central location: shipment costs to the rest of the country are less from here than LA.

[kjb434]

Very much true. Also, Panama is completely rebuiling the canal portions and locks through the isthmus to allow larger ships. It will also make the trip through Panama much safer for ships.

When this is finished, cargo ships will be able to get through the isthmus quicker and easier.

LA is having lots of trouble with is union. Good thing the Port of Houston has a free market labor setup.

[HeightsGuy]

As soon as we're all finished high-fiving eachother, I think it's important to step back and look at what we are getting out of this deal. Most of the time, whenever a company comes calling with a couple of thousand jobs in tow, it's all win-win. This, on the other hand, comes with a much steeper price tag.

Namely, how do you think this stuff gets from the warehouse to the point of sale?

(hint - get used to that little smiley-face, you'll be seeing it on a ridiculous number of 18-wheelers soon to be clogging up your favorite freeway)

[westender]

As soon as we're all finished high-fiving eachother, I think it's important to step back and look at what we are getting out of this deal. Most of the time, whenever a company comes calling with a couple of thousand jobs in tow, it's all win-win. This, on the other hand, comes with a much steeper price tag.

Namely, how do you think this stuff gets from the warehouse to the point of sale?

(hint - get used to that little smiley-face, you'll be seeing it on a ridiculous number of 18-wheelers soon to be clogging up your favorite freeway)

<{POST_SNAPBACK}>

Not if it's called the Grand parkway.

[DJ2025]

Not if it's called the Grand parkway.

<{POST_SNAPBACK}>

So THAT's why they put a rush on that segment

[BayouCityGirl]

Does that mean Mr.Smiley will be slashing prices too!!!! C'mon local distr. needs some goodies for the local area!!! Get some good ole' fashioned cheapies at Walmart!!!

Or does that mean we will see more Super Walmarts popping up as well? and when there's a Super Walmart there is a Super Target!! (just kidding) its not as bad as the CVS vs. Walgreens thing y'know?

I just wonder why there is no Super Target near me!! (I live near the Beltway/Westheimer! c'mon get rid of dumpy Target...its uglfiying the neighborhood! We don't need a Ross, make a Super Target out of the Ross Dept store. Tear the other strip center stuff too (except Petco...I like it there :-D)

oh and Randalls can go too. If I want a high priced grocery store I'll take the Super Target. It smells good in there (especially the aroma of the Starbucks coffee as you walk in)

sorry for going offtopic

[HeightsGuy]

No, I don't think the Grand Parkway has anything to do with this. Since the stuff is coming out of Baytown, a majority of traffic will either go East or West down I-10, or up 59 or 45 north after coming around the east belt.

Another area that will see higher volume is the RR's. For you who like to complain about all that whistle noise in the middle of the night, get ready for much more. Assuming that a lot of freight will still go through Long Beach to Western regions of the US, hopefully most rail cargo will head east and north out of Baytown and not much will pass through the city.

[H-Town Man]

No, I don't think the Grand Parkway has anything to do with this. Since the stuff is coming out of Baytown, a majority of traffic will either go East or West down I-10, or up 59 or 45 north after coming around the east belt.

Another area that will see higher volume is the RR's. For you who like to complain about all that whistle noise in the middle of the night, get ready for much more. Assuming that a lot of freight will still go through Long Beach to Western regions of the US, hopefully most rail cargo will head east and north out of Baytown and not much will pass through the city.

<{POST_SNAPBACK}>

According to the article, the area around where this center and the Home Depot center are at will be served by the East section of the Grand Parkway. From there, I imagine the bulk of the traffic will head up to 59 around Cleveland, then up the future I-69 corridor to the midwest and northeast.

So to put it all into perspective... these goods are going to go to Houston. And then they're going to go to Arkansas and Memphis and Indianapolis! And, and then they're going to go to Cleveland... and to Pittsburg... and then they're going all the way to the White House! YEEEEAAAAAAARRRRRRGGGHHHH!

[HeightsGuy]

H-Town, that part of the Grand Parkway, I believe, is just a small segment from 146 to I10 East, and I didn't know it was even completed yet. The Grand Parkway from I10 East to 59 North and 45 has not even been cooked up yet and exists only as a map.

[kjb434]

Yes, but the GP segment under construction will divert the truck traffic away from Baytown's downtown and residential streets. The GP is just a couple 100 feet from the Distribution center.

Also, the section from I-10 to the Eastex US-59 is on the move. It will be built just a couple of years from now.

Look, any economic progress will increas truck and train traffic in town. The east half of the GP project is primarily for the increased traffic from the port.

[energyman2005]

Just came from hearing Charles Iupe speak about the port and the new Wal-mart center. An interesting fact he mentioned was the fact that the Long Beach, CA port currently processes about 14 million containers per year. Houston's number is only approximately 1.3 million per year. He projected a 2.5x increase in containers over the next few years once Bayport is complete.

[2112]

As soon as we're all finished high-fiving eachother, I think it's important to step back and look at what we are getting out of this deal. Most of the time, whenever a company comes calling with a couple of thousand jobs in tow, it's all win-win. This, on the other hand, comes with a much steeper price tag.

Namely, how do you think this stuff gets from the warehouse to the point of sale?

(hint - get used to that little smiley-face, you'll be seeing it on a ridiculous number of 18-wheelers soon to be clogging up your favorite freeway)

<{POST_SNAPBACK}>

Anyone here familiar with that Saturday Night Live skit "Debbie Downer"?

Mua Mua Mua Muaaaaaaaaa.......

[HeightsGuy]

Yes, I'm being Debbie Downer on this one, but I just don't see how this is such a great thing for the city and the economy. 1200 warehouse jobs and a bunch of extra truckers driving through, with Walmart no doubt getting a huge tax break.

I'm sure the convenience stores along the Grand Parkway are salivating at the news.

[RedScare]

http://www.co.chambers.tx.us/demographics.html

One project increases Chambers County's employment by 10%? 1200 warehouse jobs in a county where per capita income is $23,000? One project produces twice the number of jobs as the entire county's number of unemployed?

Yeah, you're pretty much a downer. I'm curious what kind of project would lift your spirits. Maybe it would help everyone, including Chambers Co., port and other officials put this into some perspective.

[Subdude]

The job base will grow if others like Lowes and Target move primary distribution centers here. Also, there will be secondary job creation in the port and other businesses, yes, including convenience stores. But that isn't a bad thing - it's how you grow the economy. Distribution, logistics, and transportation isn't a glamorous industry, but it is stable and creates jobs. Look at the impact that airports have had in Dallas and Atlanta. Businesses like this are leveraging the port in the same way by diversifying from petrochemicals. I think that this could also help utilize the new air freight capacity at IAH.

[HeightsGuy]

Redscare, maybe I'd be a little happier if this wasn't such blatant corporate welfare.

Walmart built this thing. Once built, the Texas Permanent School Fund is buying it from Walmart for 80 million dollars. Walmart will then turn around and lease it from the Permanent School Fund. Because Walmart will not "own" the property, they don;t pay any taxes to Chambers County and Goose Creek ISD, and, even though the land is now worth 80 or so million, the Permanent School Fund is exempt from paying taxes to Chambers County. The only taxes Walmart has to pay now will be for are taxes on inventory, which go to the state.

[RedScare]

OK, neighbor, I'm with you on that point.

[tigereye]

QUESTION?

If the Port of Houston sees all this new distribution center business in Baytown happeneing that will benefit our region's economy, why are they even entertaining Dallas' idea of creating an inland port distribution outpost in Dallas?

[Subdude]

Redscare, maybe I'd be a little happier if this wasn't such blatant corporate welfare.

Walmart built this thing. Once built, the Texas Permanent School Fund is buying it from Walmart for 80 million dollars. Walmart will then turn around and lease it from the Permanent School Fund. Because Walmart will not "own" the property, they don;t pay any taxes to Chambers County and Goose Creek ISD, and, even though the land is now worth 80 or so million, the Permanent School Fund is exempt from paying taxes to Chambers County. The only taxes Walmart has to pay now will be for are taxes on inventory, which go to the state.

It's unfortunate if that is the case. One of the country's largest corporations shouldn't need to be gaming the tax system that way. How much revenue is Baytown forgoing by having the property taken off the tax rolls? Also, Walmart will probably also be able to deduct the cost of the lease for income taxes.

[Talbot]

QUESTION?

If the Port of Houston sees all this new distribution center business in Baytown happeneing that will benefit our region's economy, why are they even entertaining Dallas' idea of creating an inland port distribution outpost in Dallas?

<{POST_SNAPBACK}>

They think that our port is going to be backed up like the port of Los Angeles, but personally I think its a bad idea, especially if they plan on adding onto our port.

[kjb434]

Remember that Wal-Mart will still lease this facility from the School District. That revenue will pay off the building and will serve as tax revenue stream to the school. The property tax route is not a definite as the lease revenue.

This has been done many of times with different business because the income to the localities is much higher and Wal-Mart doesn't own the facility.

Also, I don't think Wal-Mart will leave it anytime soon as they already have phase two plans underway.

[HeightsGuy]

KJB, Wallmart will not be leasing this from the school district, the landlord is the Texas Permanent School Fund. The money goes back into the fund. Baytown and Goose Creek ISD will get nothing specifically from this deal. Where they will get their money is from related activity such as other companies who will no doubt build their own distribution centers nearby now that Walmart has arrived. Walmart gets the golden egg for starting the ball rolling, but the next players won't get the same deal.

Now, as it comes to the question someone (sarcastically;) asked me about development I would like to see instead of this, how's this one for a start:

Washington Mutual selects San Antonio for 4,200-employee center

[MidtownCoog]

I used to teach classes in the MCI building in San Antonio.

Old Bernie Ebbers and his deal with the devil paid for that.

Beautiful facility! Just watch out for the Scorpions in your backpack!

[RedScare]

Come on, I wasn't that sarcastic....was I?

4,200 jobs is nothing to sneeze at. Nice coup for SA. I'm sure they especially enjoyed winning out over Dallas. Personally, I'd like to see both WAMU and WalMart, as well as maybe a Toyota Truck plant or two, coming to Houston..

BTW, I hate WAMU. They ruined a fine friendly bank, Bank United.

[H-Town Man]

Apparently Wash Mutual was deciding between SA and DFW. Why not Houston?

As long as we have the bad air and the billboards, we can expect to keep losing out on corporate relocations that don't involve energy companies.

[kjb434]

As long as we have the bad air and the billboards, we can expect to keep losing out on corporate relocations that don't involve energy companies.

How does that influence anything with relocating. Most often it goes to the city that gives the most incentives such as tax breaks. Also, visiting all three cities, I don't notice much difference in pollution and billboards.

We have been winning more than losing as for as relocations go.

Also, a call center doesn't need the best location in the world, so finding a city that has cheap land on the outskirts in the burbs is enough. It is also why many smaller cities have call centers too. It's cheaper to build facilities. It's especially the reason call centers or relocating to India (some are better than others).

[MidtownCoog]

We don't want to get in the business of competing for call centers.

[LTAWACS]

We don't want to get in the business of competing for call centers.

<{POST_SNAPBACK}>

It wont be a call center. It's the back office for the company. My gf works for wamu in the phoenix tower. They take up something like 4-7 floors (she told me but I forgot). That is their current HQ for small business banking. She told me they were considering locating that new center somewhere in Houston.

[MidtownCoog]

Agree with Red they stink.

They held the mortgage on my townhome.

Worse customer service ever.

[LTAWACS]

Agree with Red they stink.

They held the mortgage on my townhome. 

Worse customer service ever.

<{POST_SNAPBACK}>

If you pay on time there will be no problems.

[MidtownCoog]

LOL! If it were only that complicated.

More like getting your year end tax statements from them on time.

[LTAWACS]

LOL!  If it were only that complicated.

More like getting your year end tax statements from them on time.

<{POST_SNAPBACK}>

Ah yes. They can move very slowly. Business has been picking up for them and they were very shorthanded for the longest. Im on the verge of getting hired there myself.

[Subdude]

LOL!  If it were only that complicated.

More like getting your year end tax statements from them on time.

Jeez, tell me about it. But overall they're better than Chase.

[RedScare]

If you pay on time there will be no problems.

<{POST_SNAPBACK}>

Actually, my gripe with them had nothing to do with loans. It was my small business acoounts and the hideous fees, unhelpful managers, and constant mistakes on my account (and slow to correct), that ran me off.

The final straw came when someone created a fictcious check with a xeroxed signature that was not even that good a reproduction, and they took 2 months to credit me back the funds. They said it looked like a good signature, though it was an almost comical reproduction.

[LTAWACS]

Actually, my gripe with them had nothing to do with loans.  It was my small business acoounts and the hideous fees, unhelpful managers, and constant mistakes on my account (and slow to correct), that ran me off.

The final straw came when someone created a fictcious check with a xeroxed signature that was not even that good a reproduction, and they took 2 months to credit me back the funds.  They said it looked like a good signature, though it was an almost comical reproduction.

<{POST_SNAPBACK}>

You sound like a high maintenance customer. What is the name of your small business? How did you allow checks to be stolen from you?

[RedScare]

Not really. At the time, I had a law office with several employees. We ran a lot of checks through the accounts. My bank officer from Bank United used to waive some of the fees, since we kept a decent amount of money in their bank...common practice...Amegy Bank does that for me now. In return, I sent business their way.

My officer quit because WAMU forced her to stop waiving fees for evryone, including good customers. Then, since I did not have an officer that knew me, they refused to transfer money between accounts without me coming in personally. In other words, all of the nice things they used to do for me, they stopped doing, so I went somewhere where they still do.

The check was not stolen. A doctor's office received a check from our firm, and someone copied the check and created a new check on their computer and xeroxed the signature onto it. I never lost a check. Interestingly, the doctor's check was never cashed. It apparently was stolen from his office.

This is way off topic, so this is my last post on the subject of WAMU's service.

[LTAWACS]

Not really.  At the time, I had a law office with several employees.  We ran a lot of checks through the accounts.  My bank officer from Bank United used to waive some of the fees, since we kept a decent amount of money in their bank...common practice...Amegy Bank does that for me now.  In return, I sent business their way.

My officer quit because WAMU forced her to stop waiving fees for evryone, including good customers.  Then, since I did not have an officer that knew me, they refused to transfer money between accounts without me coming in personally.  In other words, all of the nice things they used to do for me, they stopped doing, so I went somewhere where they still do.

The check was not stolen.  A doctor's office received a check from our firm, and someone copied the check and created a new check on their computer and xeroxed the signature onto it.  I never lost a check.  Interestingly, the doctor's check was never cashed.  It apparently was stolen from his office.

This is way off topic, so this is my last post on the subject of WAMU's service.

<{POST_SNAPBACK}>

Not good. At any rate. I wonder where in the Houston market they could have established their new operations center.

[MidtownCoog]

I wonder where in the Houston market they could have established their new operations center.

Hard to say, but I know for a fact they got a sweet deal on the MCI facility.

I wish I could find a picture of it. It's really nice.

[H-Town Man]

How does that influence anything with relocating.  Most often it goes to the city that gives the most incentives such as tax breaks.  Also, visiting all three cities, I don't notice much difference in pollution and billboards.

We have been winning more than losing as for as relocations go.

Also, a call center doesn't need the best location in the world, so finding a city that has cheap land on the outskirts in the burbs is enough.  It is also why many smaller cities have call centers too.  It's cheaper to build facilities.  It's especially the reason call centers or relocating to India (some are better than others).

<{POST_SNAPBACK}>

It influences relocating because when big companies relocate they are often looking for high quality of life for their employees. As misleading as it may be, the ozone ranking is one of the first places they look to see quality of life. Park acreage per capita is another. And yes, Houston's billboards, which far outnumber those in San Antonio or Dallas, have given us a bad reputation in the corporate world.

When Toyota was considering where to build its truck plant, they eliminated Houston on account of its bad air quality among other things. That's not a corporate relocation, but it gives you an idea of how these folks think. Houston right now has a bad mark for its quality of life. Why do you think that the city's Quality of Life commission, which was formed a few years ago, is made up of business leaders, and is connected with the Greater Houston Partnership? Yes, tax incentives have a huge impact, but so does quality of life.

[MidtownCoog]

Toytoa not chosing Houston due to pollution is more urban legend than fact.

And with Harris county getting serious about new (non-grandfathered) plant emmisions, why would they come here?

The Toytoa plant will pollute. It's not like they are putting together Legos.

[LTAWACS]

Why do you think that the city's Quality of Life commission, which was formed a few years ago, is made up of business leaders, and is connected with the Greater Houston Partnership?

<{POST_SNAPBACK}>

So when are these cretins of corruption getting to work? Why have they not done anything for us?

And who is on these associations?