Walmart Supercenter At 111 Yale St.

[TGM]

Reprint from Hotair

http://hotair.com/archives/2013/07/09/sigh-d-c-council-poised-to-chase-off-900-jobs-because-they-dont-like-wal-mart-so-there/

Sigh: D.C. Council poised to chase off 900 jobs because they don’t like Wal-Mart, so there

POSTED AT 10:01 PM ON JULY 9, 2013 BY MARY KATHARINE HAM

A couple lessons, here. First, businesses are not obligated to open in your city or your neighborhood, particularly when you incentivize them to locate elsewhere. Washington, D.C. is particularly susceptible to losing potential jobs (particularly in entry-level and working class retail positions, as opposed to lobbyist slots) to nearby jurisdictions because it doesn’t take much to simply cross the bridge to friendlier climes in, say, Virginia.

Second, as Sonny Bunch reminds us of a lesson from Econ 101, hiking the minimum wage kills jobs.

Here’s the haps. In Washington, Wal-Mart, the city council, the grocery store unions, and a thousand Wal-Mart hating community groups have been engaged in a delicate, dumb dance for years over whether the giant retailer should be allowed within the hallowed precincts of the District of Columbia. Other big box stores are allowed— Best Buy, Target, and Home Depot for example—but the mother of all box stores has been picketed and pushed and generally trashed throughout its attempts to set down some retail roots. The parties seemed to be coming to an agreement on three stores inside the District, predicted to bring 900 full and part-time jobs and some fresh grocery options to those so-called “food deserts” you hear about.

But the agreement might fall apart over a “living wage” bill, which requires a segment of retailers that sounds suspiciously like “retailers that are Wal-Mart” to pay far and above D.C.’s $8.25 minimum wage:

Representatives from Wal-Mart say the company will no longer build its planned stores at Skyland Town Center and Capitol Gateway, retail sites in Ward 7. “They’re not bluffing me,” Councilmember Yvette Alexander (D-Ward 7) says, having just left a meeting with the world’s largest retailer. “We worked for many years to get this commitment. I really didn’t think it would get to this point.”

The Large Retailer Accountability Act requires companies that take in at least $1 billion in revenue annually to pay their employees at least $12.50 an hour, well above the District’s minimum wage of $8.25. The bill also only applies to stores that are at least 75,000 square feet, thus exempting companies like Apple and Starbucks.

Isn’t the carve-out for liberal-approved billion-dollar retailers precious? Wal-Mart’s announcement is enough to make some reconsider and see the big picture:

In addition to the two Ward 7 stores, Alexander’s chief of staff, Ed Fisher, also says Wal-Mart’s move imperils a store planned for New York Avenue and Bladensburg Road NE. Councilmember Kenyan McDuffie (D-Ward 5), who represents that area, was one of eight “yes” votes on the bill’s first reading.

“That was without knowing Wal-Mart was going to pull out,” says Jeannette Mobley, McDuffie’s chief of staff. Mobley says her boss is “going to give this some thought” before tomorrow’s Council session.

Fisher says each planned Walmart was going to have at least 300 full- and part-time employees, as well as enhance food shopping options in Ward 7, where there are only four full-service supermarkets. “We’re going to have fewer options for groceries and commercial retail,” Fisher says. “At least 900 people won’t have an opportuntiy whether it’s full-time or part-time. Whether it’s a student in high school or a senior or a job someone can use as a stepping stone.”

As Bunch puts it: “So instead of decreasing the unemployment rate in blighted Washington, D.C., neighborhoods, there will be no jobs. Good job, guys! You really nailed this whole ‘governance’ thing.”

The argument from the left is a petulant cry of, “Hey, the Waltons are real rich and they can’t afford to pay $12.50 an hour?!” Again, they’re not obligated to bring their stores to your city when you’re actively trying to make it harder for them to do business there, especially when they have other options nearby. In the same way, gun accessory manufacturers are not obligated to stay in your state when you’re banning their products. In the same way, smart, talented people are not obligated to be doctors when the cost of becoming a doctor and maintaining malpractice insurance isn’t worth the financial rewards of being a doctor. Incentives matter, and free people respond to them.

Oh, and if the D.C. Council does end up blocking Wal-Mart in the city, it’ll be great fun to watch them all later endorse former Wal-Mart board of directors member Hillary Clinton.

(For the record, though I’m defending Wal-Mart here, I’m not always down with the ways the company colludes with government to get into certain communities, via eminent domain, for instance.)

- end

Edited July 10, 2013 by TGM

[RedScare]

Not only that, but Walmart's presence in s3mh's idyllic Skyland Town Center is only occurring due to overt threat's to block permits for the 4 Walmart's that the company actually wishes to build.

 

 

“They’re interested in developing four stores,” the mayor said in an interview Tuesday. “All of us said, ‘What about a fifth store?’ They hemmed and hawed, and it ultimately came down to — you have a choice. You can do five stores or you can do no stores.”

Wal-Mart does not require major zoning changes or subsidies to open any of its first four stores, but two are on publicly owned land, giving the city a measure of control. Gray indicated he would be willing to go so far as to nix the company’s requests for building permits on privately owned sites, even for neighborhoods where residents favored Wal-Mart’s opening.

“We had five council members and the mayor and the deputy mayor sitting in the room at the meeting....so it was a pretty compelling argument. They have to get building permits, don’t they?” he said.

 

 

http://dcist.com/2011/05/gray_to_walmart_build_five_stores_o.php

 

Recall that s3mh railed against Mayor Parker for pushing through a 380 agreement that supposedly nobody wanted. Well, compare that with DC's threat to deny otherwise valid permits to Walmart if they do not build a store where the mayor wants them to. I am not at all surprised that s3mh trumpets this as "good governance".

[Leonard]

 “We’re going to have fewer options for groceries and commercial retail,” Fisher says. “At least 900 people won’t have an opportuntiy whether it’s full-time or part-time. Whether it’s a student in high school or a senior or a job someone can use as a stepping stone.”

 

Even this Fisher doesn't view these jobs as real jobs for people who are actually supporting themselves and their families.  Walmart jobs are suited for people who live with their parents or are collecting social security. 

 

i've read that a single Walmart costs taxbayers about $900K in welfare benefits because the jobs are so low paying. 

 

And I don't get what this has to do with s3mh or our 380 here, except to ask the question again - why did Parker give Ainbinder $6M?

[RedScare]

Of course you don't get it. I expect nothing more of you.

[Leonard]

I guess I missed s3mh trumpeting this as good governance. 

[RedScare]

I guess I missed s3mh trumpeting this as good governance. 

 

This is not surprising. s3mh contradicts himself every few pages. Sometimes he does so in the same post. But, scroll back about 4 to 5 pages, and you'll see him bragging about how great the city government in Washington DC is for putting a Walmart in their crappy poor neighborhoods.

[TGM]

“......Whether it’s a student in high school or a senior or a job someone can use as a stepping stone.”

Even this Fisher doesn't view these jobs as real jobs for people who are actually supporting themselves and their families. Walmart jobs are suited for people who live with their parents or are collecting social security.

The jobs are real, the expectations of the anti-Walmart loons are not.

You act as if they are not told what their hourly rate will be prior to accepting the job offer.

How does one know how much they need to live, apply for a job that does not meet the requirement, then complain that they do not get paid enough?

[RedScare]

Leonard, why should Walmart pay $12.50 an hour, but Apple should only pay $8.25 (or even less in Houston)? Is it because you like Apple, but not Walmart? For that matter, why should Walmart pay $12.50 but not Target?

[Leonard]

Gosh TGM, maybe because you have to take the jobs that are available.  I don't know.  I don't know why any one would complain about anything, given your logic.  That's the way it is, so just shut up.  Your City government is making dirty deals with developers, what did you expect?  You knew politicians were dirty when you moved here.  Keep your head down and shut up.  People are going to make statements you disagree with on idiotic forums, there is nothing you can do about it so quit complaining. 

I have very little interest in what DC is doing.  Why don't you move there? 

[Leonard]

So who is for giving Costco money to build something they would build anyway too?  You might guess I'm against it. 

[RedScare]

I have very little interest in what DC is doing.  Why don't you move there? 

 

I think you intended this for the person who brought DC into the debate. Let's ask him. s3mh, Leonard would like to know why you don't move to DC. Why don't you?

[Leonard]

I don't really know much about the DC thing, but if the elected leaders think it's a good idea, I'm sure it is.  HAHAHAHAHAHAHA!!!!!!

[TGM]

Gosh TGM, maybe because you have to take the jobs that are available. I don't know. I don't know why any one would complain about anything, given your logic. That's the way it is, so just shut up. Your City government is making dirty deals with developers, what did you expect? You knew politicians were dirty when you moved here. Keep your head down and shut up. People are going to make statements you disagree with on idiotic forums, there is nothing you can do about it so quit complaining.

I have very little interest in what DC is doing. Why don't you move there?

Your "you have to take the jobs that are available" statement pretty much sums up your belief that we are all just subjects, or serfs to some greater force out there, with no choice, control, or ultimately accountability for our actions, decisions, and destiny. If you don't like what they are paying don't waste any time filling out the job application.

I almost moved to DC back in 2000, but chose not to after several location scouting trips. While the DC area is a beautiful part of the county I did not like what I would have to pay to live in the equivalent of Midtown, Houston. Houston was the best value, and the most logical choice for my career path. It was an extremely tough choice to make because they offered a move-to bonus equal to my salary, and paid 2 points on a mortgage. I stayed in Houston and they went BK 2 years later. Oh and it was also hard to find a good Walmart in the area.

[Leonard]

Just because someone doesn't have the ambition or opportunities you have doesn't mean they should be walked on.

 

The strong should protect the weak, not build on their backs.  I'm sure, given the choice, anyone would choose the pay and benefits you get with your job over the pay and benefits of a Walmart associate.  I kind of doubt that most Walmart associates would qualify for a job that pays points on a mortgage.  

 

 

[barracuda]

Reprint from Hotair

http://hotair.com/archives/2013/07/09/sigh-d-c-council-poised-to-chase-off-900-jobs-because-they-dont-like-wal-mart-so-there/

Sigh: D.C. Council poised to chase off 900 jobs because they don’t like Wal-Mart, so there

POSTED AT 10:01 PM ON JULY 9, 2013 BY MARY KATHARINE HAM

A couple lessons, here. First, businesses are not obligated to open in your city or your neighborhood, particularly when you incentivize them to locate elsewhere. Washington, D.C. is particularly susceptible to losing potential jobs (particularly in entry-level and working class retail positions, as opposed to lobbyist slots) to nearby jurisdictions because it doesn’t take much to simply cross the bridge to friendlier climes in, say, Virginia.

Second, as Sonny Bunch reminds us of a lesson from Econ 101, hiking the minimum wage kills jobs.

...

 

On the surface, it doesn't look like they are singling out Walmart, but then there is a grandfather period for existing big-box stores whereas the Walmarts would be new.  

 

Living wages for larger employers is an interesting idea, particularly if it helps shift the burden for social safety nets from taxpayers back to corporations like Walmart that have plenty of profit to share with their employees. I'm certainly not a fan of subsidizing the tax system so corporations can eke out more profits while putting their employees on food stamps. On the other hand, this kind of law puts the enforcing municipality at a disadvantage to neighbors with no living wage policy.

Edited July 10, 2013 by barracuda

[samagon]

Just because someone doesn't have the ambition or opportunities you have doesn't mean they should be walked on.  

 

Replace ambition with ability and I'm with you.

 

Someone who has ability and opportunity, but lacks ambition deserves to be stepped on.

 

Lack of opportunity, or lack of ability, there's little a person can do to give themselves better opportunities, or ability. So yeah, give them a leg up.

 

Lack of ambition? Sorry, go feel bad for your situation some place else.

[s3mh]

Here is probably the last large tract available inside the loop with a similar trade area, but pretty iffy traffic access:  http://www.theleadernews.com/?p=10795.  If HISD decides to sell to St. Thomas (math question: is potential number of students taken out of HISD as a result of St. Thomas expansion times $7,000 greater than the 7.5 mil difference in lease payments and $450k in additional tax revenues?), then the loss of the Yale St property to strip malls hits really hard. 

[samagon]

Are you looking for Walmart to expand inside the loop? I agree the Yale location is successful, but I don't know that they want to expand too much and eat into their other locations.

[Leonard]

What data do you have that the Yale street location is successful?  Have you seen that the sales tax numbers meet or exceed the projections?  Please share this data with us!

[august948]

What data do you have that the Yale street location is successful? Have you seen that the sales tax numbers meet or exceed the projections? Please share this data with us!

You're grasping at straws. Walmart isn't going to fail at this location. Walmart rarely fails at any location due to the amount of research they do before-hand. They didn't get where they are by being stupid. The only time I've seen a Walmart close is if they build another bigger, newer one nearby. Try visiting this one and you'll see people shopping there all the time.

[august948]

Are you looking for Walmart to expand inside the loop? I agree the Yale location is successful, but I don't know that they want to expand too much and eat into their other locations.

On the west side of town we've got four Walmarts within 2 to 3 miles of each other in a slightly less dense area of town so there's plenty of room for expansion inside the loop, even relatively nearby.

[august948]

If HISD decides to sell to St. Thomas (math question: is potential number of students taken out of HISD as a result of St. Thomas expansion times $7,000 greater than the 7.5 mil difference in lease payments and $450k in additional tax revenues?), then the loss of the Yale St property to strip malls hits really hard.

Are you saying that you think HISD is going to lose a significant number of students to St. Thomas? I know you're salivating because the developer's rep is quoted as saying they "could" build mixed-use there, but what if they decide to build a Sam's Club instead?

[Leonard]

I'm looking forward to seeing the sales taxes for the 14 months the Yale Street Bridge is closed.  I bet whoever at Walmart did that research doesn't have that job anymore. 

[august948]

I'm looking forward to seeing the sales taxes for the 14 months the Yale Street Bridge is closed. I bet whoever at Walmart did that research doesn't have that job anymore.

You're grasping at straws again. There are plenty of alternate routes. People coming in from the north will take Heights Blvd and those coming from the south won't be affected at all. People will keep coming because it offers low prices and one-stop shopping.

I'd bet that Walmart already figured that closure in. Since it will be there for a long, long time a road closure is just a temporary inconvenience. I'd also bet that whoever at Walmart did that research is now researching other locations inside the loop. Never bet against Walmart.

Edited July 10, 2013 by august948

[Leonard]

hahahaha!  yeah, Yale street traffic does nothing for this Walmart. 

[s3mh]

You're grasping at straws again. There are plenty of alternate routes. People coming in from the north will take Heights Blvd and those coming from the south won't be affected at all. People will keep coming because it offers low prices and one-stop shopping.

I'd bet that Walmart already figured that closure in. Since it will be there for a long, long time a road closure is just a temporary inconvenience. I'd also bet that whoever at Walmart did that research is now researching other locations inside the loop. Never bet against Walmart.

 

When was the last time you shopped at Woolworth's?  Everything you have been saying about Walmart, people used to say about Woolworth. 

[s3mh]

Are you saying that you think HISD is going to lose a significant number of students to St. Thomas? I know you're salivating because the developer's rep is quoted as saying they "could" build mixed-use there, but what if they decide to build a Sam's Club instead?

 

If St. Thomas expanded to K-12, HISD will lose some students.  How many?  Who knows.  But, HISD claims that students cost @$7,000 a year.  So, if St. Thomas takes away 100 students, HISD arguably saves $700,000 a year.  100 students is not a bad guess assuming that a k-8 program would probably be at least as large as the high school (700-800 students).  Or even if they stayed with just high school and added 400-500 students, 100 pulled from HISD is not an unreasonable guess.  I suspect HISD will just take the bigger money and the tax revenues.  But, you have to wonder whether they are trying to factor in the cost savings of an expanded St. Thomas.

 

Anything other than a large multifamily development on that tract is a tough fit.  Very poor traffic access.  Mixed use would probably have minimal retail and be more concentrated on office and residential, especially considering that Regent Square will have a lot of retail just across the bayou.  If they built a Sam's club it would be a waste of space and a very bad sign for Houston's real estate market.

[august948]

hahahaha! yeah, Yale street traffic does nothing for this Walmart.

hahahaha! People will find their way to Walmart. There's plenty of access. It's not going to close because the Yale bridge is being replaced. Keep dreaming.

[Leonard]

I didn't say it would close, I said I'm interested in seeing the sales tax revenues from that time period.  Yeah, plenty of access without Yale street. 

[august948]

When was the last time you shopped at Woolworth's? Everything you have been saying about Walmart, people used to say about Woolworth.

Woolworth's? Seriously? Walmart ate their lunch. Walmart even took Woolworth's spot on the Dow. When Walmart starts to go into decline, we'll talk. If and when it does, guess what? It won't be replaced by a handful of boutiques at a mixed-use development. It'll be replaced by another, bigger box store.