REPORTS SHOWS WAL-MART COULD SQUASH DOWNTOWN BENNINGTON, VT

Report: New Wal-Mart could spell problems for downtown

The construction of a new Wal-Mart twice the size of the current one in town could spell disaster for some small, local retailers and their employees, according to an economic impact study done to secure a state environmental permit for the project.

112,000 square feet

Jonathan Levy, with BLS Bennington, LLC., won town permits in January 2006 to more than double the size of the Wal-Mart in the Monument Plaza on Northside Drive to 112,000 square feet.

The study, completed by Kavet, Rockler & Associates, was done on behalf of Levy and the Vermont Natural Resources Council, which is opposing construction of the new store. The VNRC represents Citizens for a Greater Bennington, which is opposed to the store at the local level.

According to the study, the first year of a new store could create a gain of up to 75 jobs. Construction costs would total about $16 million, and sales in the store are expected to more than double the current store and total about $48 million.

But the higher sales will take its toll on existing retailers.

“Most of the expanded store’s growth will come at the expense of existing stores in the served market area,” the report reads.

And although first-year employment gains will have a net growth of 75 positions, the study found that a larger Wal-Mart would have a negative long-term impact on employment in the area.

“In 2009, operation of the expanded store will generate a total of about 78 jobs, mostly in the retail trade sector. Total county employment impacts over the longer term, however, shrink to zero by 2013 and ultimately decline by about 35 jobs,” the report states.

The study found that 10 to 15 percent of the existing downtown businesses are likely to be “adversely affected” by the Wal-Mart expansion, mostly retail shops selling clothing, beauty and hair products, sporting goods, electronics, eye wear and home and hardware goods. Empty storefronts will also become harder to fill, it said.

But the retail center of town has moved from the downtown to the north end of town on Northside Drive over the past 40 years, the report stated. With the completion of the western leg of the Bennington bypass, and construction ongoing on the northern leg, that trend is likely to continue, according to the report.

“The downtown has adjusted by becoming much less dependent upon retailing in general, and shifted its retail focus to more affluent and tourism related markets or specialized local service to nearby residents and businesses,” the report reads.

As a result, the downtown will not be hit as hard as other existing retailers closer to the proposed store. Large retailers such as K-mart and JC Penny’s on Kocher Drive, and other retailers on Northside Drive will see a greater impact, according to the report.

Although the store could negatively affect locally-based retailers, the study found there to be no “economic, demographic or fiscal impacts” that would prevent the state from issuing an Act 250 state land use permit, according to the report.

John Shanahan, executive director of the Better Bennington Corp., a group of downtown businesses and merchants that works to promote the downtown, said the group has not taken a stance. The group will continue its work regardless of the outcome of Levy’s application.

“Our stand is we believe in shopping locally. It’s quality products and a lot of hand-made products, and it’s what sets Bennington apart,” Shanahan said. “We pay attention to what we can do, not what anyone else does. Our focus ... is to shop locally because we know the financial benefits of that.”

District 8 Environmental Commissioner Warren Foster rejected Levy’s Act 250 permit application in May because it contained outdated material. Levy has yet to resubmit the application with updated reports and information.

Levy has been working for several years to complete the project. His first proposal was not permitted because the town had a cap on stores of 75,000 square feet at the time. Residents, disappointed with the decision, signed petitions and forced a vote on the “big box” ban.

The petitioners prevailed and overturned the town bylaw. A newer bylaw, passed by the Select Board in April 2005, controls large retail stores but allows them if an economic impact study is done.