The New Remington Wal-Mart/Lowes Development

WAL-MART COMING TO REMINGTON
Earlier this week, WV Urban Development (owned by Rick Walker and Lawrence Cager) had a meeting with hand-picked community representatives from Remington and Charles Village to announce changes to their initial plan to develop the Anderson Automotive property along the 25th St./Charles St.- Howard St. area.

Plans for the 11-acre parcel still call for a Lowes. However, developers just announced the addition of a 94,000 square foot Wal-Mart.

In terms of quality of project, this developer had a similar project in a Washington DC neighborhood similar to Remington, and here's how a 2002 DC CityPaper article describes it:

"A huge wall lumbers around the outside of the facility, greeting newcomers with a faceful of concrete and carving out a crude square of commerce from the surrounding community. The wall rises from a patch of dirt along Brentwood Road NE and slowly, one rectangular slab at a time, reaches several stories into the sky. The wall is gray with an underlying touch of purple. At times, it is capped by a shiny metal railing, at times by thick Jersey barriers."

HOW THIS CAN HAPPEN
In order for this development to proceed, developers need to secure a PUD (Planned Unit Development) from Baltimore City via the City Council's Land Use Committee and the Baltimore City Planning Commission since the area is not currently zoned for such a development. This also means that area infrastructure was not built or designed to handle what a development like this might mean.

(The term "Planned Unit Development" (PUD) refers to both a type of land development as well as the regulatory process by which such developments are authorized. It is a method of land regulation which promotes typically larger-scale projects with a unitary plan of development that may not otherwise be achievable under existing zoning or other applicable regulations. When a PUD has been authorized, it becomes an "overlay" district, meaning that the underlying zoning does not change. Rather, there are additional requirements for the district as specifically set forth in the PUD Development Plan and in its enabling ordinance.)

Northern Baltimore is one of the last places in the city serviced by a number of locally owned and independent businesses, including many hardware stores. That means the area not only doesn't need a development such as this, but for this development to succeed, it must take business away from current businesses.

So the Remington Wal-Mart development threatens businesses and jobs throughout all of Northern Baltimore.

According to a study by Ken Stone, a professor of economics at Iowa State University, in the late 90s:

- businesses in areas within a 20-mile radius Wal-Mart stores saw total retail sales decline by 25.4% after five years.

- businesses in area outside that 20-mile radius saw their retail sales declined by 17.6% after five years.

- $100 that you spend actually generates between $230 and $270 of local economic activity. Nearly all of this money, when spent at a Lowes or Wal-Mart, flows directly out of the local economy.

- Overall, businesses in most small communities lose between 16 - 46% of their sales after a Wal-Mart comes to town.

Ask any local business person if they can afford to stay open if they lose 16% of their sales let alone 46% of their sales.

The proposed Lowes threatens to put out of business 7-8 northern Baltimore hardware stores - many of whom have been serving neighborhoods for decades (like Falkenhan's). The addition of a Wal-Mart means this development has the potential to devastate the entire Northern Baltimore business community.

Despite what the developers and local politicians want you to think, this is not a done deal. Now is the time to begin letting your elected officials know that you simply do not want this PUD granted.

EACH WAL-MART COSTS TAXPAYERS

$36,000 a year for free and reduced lunches in schools

$42,000 a year for Section 8 housing assistance$125,000 a year for federal tax credits and deductions for low-income families$100,000 a year for the additional Title I expenses

$108,000 a year for additional federal healthcare costs of moving into the state children's health insurance programs

$9,750 a year for additional costs for low income energy assistance.

Annual total: $420,750 per Wal-Mart store

(Source: The Democratic Staff of the Committee on Education and the Workforce)

In general, the following subsidies are given to Wal-Mart (which are not offered local retailers) to open in communities:
- free or reduced price land
- infrastructure assistance
- tax increment financing
- property tax breaks
- state corporate income tax credits
- sales tax rebates
- enterprise zone and other zone status
- job training and worker recruitment funds
- tax-exempt bond financing
- general grants

Ask your city representatives what type of tax breaks are these box stores are getting to move into the neighborhood and when your local businesses struggling to compete against them can expect the same?

According to an Institute for Local Self-Reliance report:
- for every $100 spent in locally owned business, $44.60 goes to the respective town/surrounding area

- for every $100 spent in large retail chains, $14.10 stays in the respective town/surrounding area

- for every $100 you spent at a large retail chain, you cost your local
community $30.50

From: The Economic Impact Of Locally Owned Businesses Vs. Chains: A Case Study In Midcoast Maine
- Local businesses spend 44.6% of their revenue within the local economy (and 53.3% of their revenue with their home state).

- Typical corporate/box stores spend 14.1% of their revenue within the local economy.

- Local businesses support a variety of other local businesses (ancillary), whether they be accountants, food suppliers, printers, internet service providers, repair people, etc.

- Corporate retailers tend to use their own in-house/home-office/out-of-state staff and ancillary business partners.

- Local businesses in this study made a total of $24,000 in cash donations to charities in 1 year (or .4% of their total revenue). That's more than 2 times what Target gave to local charities in that area in 1 year, and more than 4 times what Wal-Mart gave.

- So, for every $100 you spend at a local business, $53.30 stays in state. For every $100 you spend at a corporate chain store, $85.90 goes out of state.

Some Wal-Mart Quick Facts:
- A Wal-Mart-funded community impact study in Greenfield, Massachusetts showed that corporate chains do not necessarily create a wealth of new jobs when they open in an area. In this study, because of projected losses at other businesses that would compete with Wal-Mart, there was only a net job gain of 8 positions. (Sarah Anderson, "Wal-Mart's War on Main Street")

- Wal-Mart costs the American taxpayers $1,557,616,500.00 every year as a result of their low pay and meager employee benefits. This comes in the form of Medicaid, food stamps, and public housing. It's called the Wal-Mart Tax.

- Wal-Mart has received $50 million in subsidies in Florida. 13% of the state's workforce employed by Wal-Mart are Medicaid-eligible.

- Nearly one-quarter of Wal-Mart's 37,000 workers in Tennessee rely on Medicaid.

- California taxpayers are spending $86 million a year providing healthcare and other public assistance to the state's 44,000 Wal-Mart employees.

- In Georgia, children of Wal-Mart employees made up over 10,000 of those on Georgia's health-care program for uninsured kids, the PeachCare for Kids program.

- The average Wal-Mart worker requires $730 in taxpayer-funded healthcare and $1,222 in other forms of assistance, such as food stamps and subsidized housing.

And the misinformation has already begun. A lawyer for the developer is already claiming that Wal-Mart will generate 200 jobs at all levels in a recent article in the Baltimore Messenger.

Due to Wal-Mart's employment practices, most of these jobs will be what you and I consider Part-Time (although Wal-Mart classifies them differently) so that they won't have to pay full-time benefits which in turn puts more economic strain back on the local community.

The developer is projecting 800 total permanent jobs when the project is finished. But how many of these are full-time jobs?

And when you consider the job displacement caused by Lowes, Wal-Mart, etc. causing local businesses to close up, it's more likely that there will be no gain in jobs at all.

WHAT YOU NEED TO DO:
If you are concerned about this development, simply contact the following folks with your concerns, asking them to simply not grant WV Urban Development a PUD for this project as it is not necessary in Northern Baltimore, and frankly, we can't afford what it will do to our community.
 
Please be polite. As far as I know, at this point, none of these politicians have taken a stance on this development and may not even be aware of the problems such a development could cause.

City Council Rep. Belinda Conaway: [email protected]

Kevin Cleary of The Mayor's Office: [email protected]

Mayor Stephanie Rawlings-Blake: [email protected]

City Council President Bernard Young: [email protected]

Also, be sure to CC any media you may know.
For example:
Larry Perl of the Baltimore Messenger: [email protected]
Robbie Whelan of The Daily Record: [email protected]
Andrea Appleton of the Baltimore CityPaper: [email protected]

Comments

[Brian]

There is NOT a Wal-Mart in DC. So whatever that quote is about it is misleading.

[Benn]

It's not misleading. That developer built a similar project in DC, regardless of who their tenants are. The quote speaks to the quality of developments this particular developer does.

That's pretty clear in the write up.

Thanks.

[BaltimoreGal]

I will do what i can immediately. I think a lot of people are only thinking about short-term convenience and not about long-term disaster. Every store in Hampden, Charles Village, etc. is threatened by this. We could lose all that makes us unique if we don't fight.

[NotaHampdenHipster]

Walmart is a welcome addition to this part of the city. It brings tax revenue, jobs and a convienent place to purchase basic necessities - all things the city desperately needs. Its a great vote of confidence for Baltimore that two major national retailers want to invest in our city.

If I were out of a job (like so many of our residents these days), I'd love the opportunity to work at either Walmart or Lowes.

[NotaWalMartWhore]

That comment is so messed up in so many ways...

So, I'm just gonna call "bullshit" on it.

Wal-Mart is NOT a welcome addition to this part of the city.

It doesn't bring tax revenue. In fact, it decreases tax revenue. And it creates strain on social programs and regional infrastructure that the taxpayer has to cover.

It doesn't create jobs. It kills better jobs already in existence.

And if you had even a fundamental understanding of how business works instead of using it to somehow validate your low self-esteem you'd realize that it's not about votes of confidence. It's about exploiting business opportunities. There's a reason this is happening in Remington and not Canton.

It's predatory.

And if you'd love the opportunity to work at a Wal-Mart, you're a fool. Unless you enjoy food stamps, no health coverage, having life insurance policies taken out on you by your employer and being told how to vote.

Your comments, "NotaHampdeHipster" (what the hell is that name even supposed to mean) are just completely asinine.

Or, perhaps, agenda laden.

Wal-Mart, like Lowes (and most big box retailers) is a predatory and destructive business whose presence will severely alter the face of North Baltimore - and not in a positive way.

[LukeAckerman]

There is someone circulating the blogs and news articles on this trying to frame anyone not thrilled with walmart as a neighbor as "anti-development" and "hipster". This looks like a hit job by corporate development PR goons. This kind of thing only happens on anonymous posts when a company has a big profit margin at stake. The profit margin has to come from somewhere. You put two and two together and guess where.

[Alexander D. Mitchell IV]

I will say here what I said in other blog comments:

Propose a viable alternative. Propose a development with private investment that would generate an equivalent number of jobs, income, and taxes (real estate, commercial, income, etc.).

Every other alternative development I have heard so far--swimming center, park, university campus, etc.--would also cost the city dearly in indirect subsidies, lost tax revenue, etc. And I don't exactly see anyone beating down the doors to bring dollars into the area.

You want stale bread, old milk, seedy saloons, take-outs with bullet-proof glass, and the like? Maintain the status quo and corner stores. The arabbers and sweatshops cranking out shirtwaists aren't coming back. Neither is the Sears Catalog or the general stores.

[smitty]

Commenters who keep pointing to the awesome tax revenues that WalMart will generate are missing an important point:

Here it is again: WalMart won't make the city money. It will COST the city money.

And NotAHampdenHipster sure sounds like someone who stands to gain from WalMart on 25th Street.

[Rusty Chompers]

Alexander - it's not our job to come up with viable proposals for the neighborhood, that is the job of the developers and urban planners. And so far, what they've proposed isn't acceptable to me or many of my neighbors.

Nice characterization of the area too. I guess you could point to The Dizz or Charm City Cakes or Book Row or the Ottobar or the Millers Ct. project or the whole Station North corridor or... well, you get the point. But interesting how you seem to think that the whole area is "seedy saloons" and "take-outs with bulletproof glass". That characterization is simply false - and can you cite studies that show a Wal-Mart would cause these places to be replaced with something you deem nicer? You can't.

Wal-Mart is a giant, parasitic, financial suck on the area.

So if developers want us to give them permission to use this land for something it's not zoned for (and for this to happen, that is what they need), they need to try again. It's really that simple. We don't need to come up with something better.

Your attempt to contextualize this as "it's this or nothing" is as mistaken as your belief that it's up to us to do the job of these developers.

But frankly, as a resident, I'd rather have nothing.

We can't afford Wal-Mart.

[Hankenstein]

another view could see this as an opportunity for local businesses to compete at a higher level. Even if the was a home depot or kmart on 25th street i would bet a lot of people would still go to a local hardware store like Faulkenhans because you don't have to walk 8 miles to find a hose washer and they are willing to lend you tools as long as you promise to return them. People don't go to one of the three comic book stores that are within one mile of each other in hampden because there is no Barnes and Noble nearby, they go because the business realize they have to offer a competitive reason to exist near each other and still manage to please the marketplace. To be clear, I don't support having a giant box store in my hood, but i would be worried if local businesses are so worried about having to be innovative and competitive in the marketplace, that they instead need to rely on protectionist government interaction that artificially alter the marketplace to accomodate one party's business model. At the end of the day, that's just monopoly rent behavior that ends up benefiting no one. I think there are enough unique and engaging enterprises here that have plenty of reasons to be competitive against giant distasteful national corporate megastores