Wal-Mart Uses Local Funds to Build in Chesapeake, VA.

Wal-Mart drains money out of local communities in a number of ways: the company shuts down locally-owned businesses, asks for tax breaks, and has thousands of employees on state-sponsored health plans. This story from the Virginian-Pilot illustrates another way that Wal-Mart uses public funds for its private business. Chesapeake, Virginia, will be picking up the $4.3 million tab to build the road Wal-Mart needs to reach its new store. Patricia Willis, the only Chesapeake council member who disagreed with this decision, was voted down. To quote the story, “she felt uncomfortable with the city putting tax revenue toward something that should be the developer’s responsibility.”

Chesapeake to pay for roadwork tied to proposed Wal-Mart [The Virginian-Pilot]

The City Council voted 5-1 this week to pay up to $4.3 million in tax revenues for road improvements that will aid traffic in an Edinburgh development that also includes a proposed Wal-Mart and Cracker Barrel.

Even though parts of the project would cut through a private project called Edinburgh West, City Manager William Harrell said the road improvements were important to the city’s effort to address growth and traffic increases in southern Chesapeake.

“In my view, this is a proactive way of addressing what will be a major transportation hub,” Harrell said.

The only council member who voted against paying for the improvements Tuesday, Patricia Willis, said she felt uncomfortable with the city putting tax revenue toward something that should be the developer’s responsibility.

“I really don’t feel like this is one that is appropriate,” Willis said.

The deal was approved as part of a new city policy that allows Chesapeake to pay for transportation improvements that could benefit the city’s economic or traffic goals.

As part of the deal, the developers of the Edinburgh West subdivision will pay about $6.5 million for road improvements that include work to Edwin Drive, which cuts through the development that could house the Wal-Mart and Cracker Barrel, said Michael A. Culpepper of Commercial Real Estate Services, a principal part of the joint venture group developing Edinburgh West.

The city will pay the purchase price of up to $4.3 million over time using tax revenues generated by the development, according to a memo from City Attorney Ronald Hallman.

Culpepper said the city initially asked the project’s developers to make road improvements that would have gone “above and beyond” what the development needed. Edwin Drive, which could connect drivers to the Wal-Mart, will be three or four lanes, he said.

“We wouldn’t have constructed a road of that size were it not for the city’s desire to accommodate future development,” Culpepper said.

Hallman called the deal a “public-private partnership” in which both the developer and city benefit.

Councilwoman Rebecca Adams said the vote was a decision for the future.

“The long-range plans for this area will bring more traffic here,” she said before supporting the deal. “I think we are on the track tonight.”

Posted by Alex Goldschmidt on Thursday, February 14, 2008

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COMMENTS

“Hallman called the deal a “public-private partnership” in which both the developer and city benefit. Hmm...wonder who will be considered responsible should there be future litigation regarding this cooperative agreement or invovling the actual road,itself. What about the future businesses who decide to build elsewhere-would they not be detrimentally prejudiced if THEY aren’t afforded a road for THEIR customers at taxpayer expense? An illustration of corporate profit at public expense is the $1.6 Billion infrastructure up in NW Arkansas,referred to on the thread,"Want to help the poor,Don’t build WalMarts”.

ddrb in
Friday, February 15 at 11:28 AM

Here is the original article ,entitled” Highway Robbery”,from The Iconoclast website:

We knew it was coming. Last night, the Northwest Arkansas Council of Corporations and Wealthy Business Executives moved their first pawn in the game to get “authority” to exercise eminent domain and to raise your taxes for their latest project to increase their income at public expense. Judge Gary Black and the Benton County Quorum Court rolled over for their masters with hardly a fight and voted to join the Regional “Mobility” Authority. The vote was 9-2.

Green thinking and pump prices have convinced the public to reduce gasoline consumption and pay less in gas taxes, and road taxes on the trucking industry are ridiculously low. “Traditional ways of generating money aren’t working anymore,” said Jonathan Barnett, the state Highway Commissioner from Siloam Springs, so the Good Suit Club wants local taxpayers to build some roads for them. Thirty-five white men packed the room. Jeff Hammonds from Wal-Mart and its 7,000 truck fleet said they needed to address infrastructure to keep businesses strong. J.B. Hunt trucking executives were there to demand passage, as was Scott Van Laningham from XNA. Ed Clifford of the Bentonville/Bella Vista Chamber of Commerce told them that residents need to pony up $1.6 billion in new taxes to fund this scheme. No one spoke against it.

It is all about getting local residents to build high dollar bypasses for Bella Vista and Springdale, which the unelected Northwest Arkansas Council of Corporations and Wealthy Business Executives have decided for us that these are their top priority. Not a dime for light rail or public transportation that would reduce congestion, save energy, support sustainability, and improve transportation for the elderly, the disabled, and the moderate income employees.

Governor Beebe is considering calling a special legislative session to raise the severance tax on natural gas and dedicate the entire $50-$100 million annual revenue to highways. If every last penny of that went to the Northwest Arkansas Council of Corporations and Wealthy Business Executives’ Regional Mobility Authority, it would still be $600 million to $1.1 billion shy of what they are demanding from local residents. And just for fun, let’s start a pool on how many of the Republican state legislators from Northwest Arkansas will be voting to increase the severance tax on the extractions by big energy companies.

Mike Malone said the business group will be asking the Washington County Quorum Court to approve its taxing authority and eminent domain power next week, and don’t expect the Fayetteville Chamber of Cowbirds or Jeff Koenig’s FEDC to oppose this plan to tax you like they killed the city’s proposed road impact fees on developers. Our Quorum Court might consider finding funds to expand public transit and improve the bridges on our county roads before they start raising our taxes to build a Bella Vista Truck Bypass for Wal-Mart, Tyson, and J.B. Hunt.

(Posted by Jonah at Friday, January 25, 2008 )

ddrb in
Friday, February 15 at 11:36 AM

ddrb,

Are you a N.W. Arkansas taxpayer?  Well, I am!!  Do you know anything more about what you are talking about, other than what you read in Jonah Tebbets (Anti-Business) website?  You have NO clue as to what you speak, so, it’s best if you keep your mouth shut until you get a clue!!  There is MORE to this story than you elude to!!  Roads and infrastructure belong to the PUBLIC and are built for the use and safety of the public and these proposed roads are GOOD for the community and have little to do with increasing Wal-Mart, J.B. Hunt or Tyson’s profits, and everything to do with easing traffic conjestion!!

It’s people like you, that are the reason our National infrastructure is falling apart and bridges are collapsing in Minnesota, blaming the problems on, that Business is not building more roads with their own money!!  Public roads, are owned by the Public, are used by the Public and should be paid for by the Public!!  Just because YOU think that Business should PAY for everything, does not make it sensable to do so and 9 out of 11 members of the Regional Authority and Quorum Court disagree with your opinion, remember, “No one spoke against it.”, why not?  Just because people don’t agree, does not mean they “rolled over”, maybe they just see things that YOU and Jonah DON’T!!

RDS in
Friday, February 15 at 12:30 PM

RDS: And a welcome back to you,RDS.It would appear that the devasting tornado has not rendered you harmed . I would suppose you are very grateful,or should be.No,as you well know I am not a NW Arkansas taxpayer, but the pattern and practice of corporate America feathering their corporate nests by plucking the public nest eggs clean(and using public taxes and eminent domain to do it,too),should be a wake up call to MANY communities! WalMart and its corporate cohorts in Arkansas, have been the Kings of corporate welfare for many years now.If you want to put your chicken neck on the block and be a sacrificial , volunteer victim to corporate cronyism,be my guest,it’s your neck getting chopped, and your feathers being plucked,not mine.But, the rest of the henhouse needs to know just how the fox operates.

ddrb in
Friday, February 15 at 12:58 PM

BTW: I had no idea that I was responsible for the national infrastructure falling apart. Who knew?

ddrb in
Friday, February 15 at 01:00 PM

He’s B-a-a-ack!

For those of you “worried” about RDS… he’s back.  And he’s spreading his usual manure on this blog.

“have little to do with increasing Wal-Mart, J.B. Hunt or Tyson’s profits.” ~RDS

The RDS BS du jour:  Getting the taxpaying citizens to pay for the infrastructure that is so important to the business of Wal-Mart and J.B. Hunt has “little to do” with their profits.

Have you been inside any regional Wal-Mart distribution centers lately?  My sources tell me that sometimes it’s hard to tell if you are inside a Wal-Mart facility or a J.B. Hunt facility because there are sometimes just as many J.B. Hunt trailers as Wal-Mart trailers.  Considering these two behemoths are both from your neck of the woods RDS, don’t try to convince the rest of us that Wal-Mart and J.B. Hunt haven’t been “sleeping together” for years!

ScrewedbyWal-Mart in Anytown, America
Friday, February 15 at 01:16 PM

Trucks (18-wheelers) pound grooves in highways in a very short time. They should be taxed more heavily than vehicles.

Ken V in Texas
Friday, February 15 at 02:40 PM

Ken;

They DO, through permits and mandatory fuel purchases.  Just look for those little state tax stickers on the sides of the truck cabs.

Charles in
Friday, February 15 at 06:36 PM

RDS:Evidently there are other theories as to how public tax monies could be used to grow the NW Arkansas area communities services.  Here’s a little follow up to the $1.6 Billion Tax and Eminent Domain” Highway Robbery” article, mentioned in an earlier comment above:  Steve Rust Gets It Right
Steve Rust, President of the Fayetteville Economic Development Council, yesterday attended a discussion on ecological economics and sustainable solutions organized by Sarah Lewis of the Springline Consulting Group. There were lots of smart people there and some with money, but none said anything wiser than Rust.

Rust argued that the thing that will help our area grow smart is to have a plan on the books regarding a mass transit system. “That will influence how we grow,” he said. “To me that is a huge priority to get that done. We’ll grow a lot smarter than if we just let it go and 10 to 20 years from now say, ‘Gee, I wish we had mass transit.’”

The need for a sensible and sustainable mass transit system, including light rail, is not a new article of faith with Rust. For several years, he has worked closely with the late John Lewis, Ron Goforth of Beta-Rubicon, John Bradberry of Greenway LLC, and Steve Luoni of the UA Community Design Center to advocate smart growth and regional light rail. He has testified for the need before the Fayetteville Council of Neighborhoods and the Arkansas Joint Legislative Committee on Public Transportation, and he has met with former Transportation Secretary Rodney Slater, Congressman John Boozman, and Senator Blanche Lincoln to seek funding.

Public input meetings have demonstrated overwhelming citizen support for commuter rail service over the construction of the proposed Western Beltway. Despite the dedicated efforts of Rust and others, however, the Chamber of Cowbirds, the Northwest Arkansas Council of Corporations and Wealthy Business Executives, and their captive and unaccountable Regional Mobility Authority ignore mass transit and demand more multi-lane highways to accommodate the trucks of Wal-Mart, Tyson, and J.B. Hunt. Money talks.

The University of Arkansas rejected Luoni’s request that their lobbyists seek funding for a feasibility study of a light rail system, and Congresman John Boozman ignored Rust’s request for federal funds. Mayor Dan Coody has spent over $300,000 in city funds for a Washington lobbyist to seek pork funding for bigger roads demanded by the Cowbirds and the business interests for mall access, but Fayetteville has not requested a nickel for advancing a mass transit system to serve the people.
(The Iconoclast,February 9,2008)

ddrb in
Friday, February 15 at 11:25 PM

ddrb,

Is the Iconoclast, your only source of information on all things N.W. Arkansas?

We have a mass transit system in Fayetteville, but if it were not for college students, it would be out of service in a week!!

Tell us all, when how much traffic does that Wal-Mart store next to your house draw in a day?  Other than the fact that you don’t like the store being where it is, would you still argue that having a Wal-Mart store in your community is not what people want?

If you knew the track record of the the Fayetteville Economic Development Council, you would know how many “Off the Wall” ideas they have come up with!!  One example is how they wanted all the buildings on a stretch of south Fayetteville to be a theme of similar constructed design and rejected the building design of “Blockbuster Video”, from it’s basic store design and could not have that “Tag” sign, kind of like telling McDonalds that they could not build a store with “Golden Arches”!!

All I can say, is that you concentrate on things in your own city and leave the goings on in N.W. Arkansas up to the citizens of N.W. Arkansas!! 

And, the next time they improve the road in front of your house, just hope the city doesn’t send you a bill for your share of the improvement to the infrastructure, like you want them to do to Wal-Mart, J.B. Hunt and Tysons, just because they will be using it, along with thousands of other citizens!!

RDS in
Saturday, February 16 at 12:14 AM

ddrb,

P.S. - Maybe the fact that so many ‘smart’ people disagree with Mr. Rust, may be telling you something!!

RDS in
Saturday, February 16 at 12:22 AM

RDS: It is beyond belief that you will defend eminent domain and taxation to the tune of $1.6 Billion dollars upon the private citizenry. It is equally incredulous that you think no one else should be allowed opinions or discourse about N.W.Arkansas,especially when discussing a thread about the public tax costs to another community,namely Chesapeake,Virginia-involving corporate tax breaks, infrastructure and WalMart. Do you actually believe you are in any position whatsoever to dictate to anyone what they may or may not have a opinion on?

ddrb in
Saturday, February 16 at 01:02 AM

ddrb,

No, You can have any opinion you choose, that is your right!!  But, to post as facts, the articles from the Iconoclast as the Bible of truth, is NOT your opinion, it’s Jonah’s!!  The problem you have, is you believe there should be different RULES for different entities, the typical STANDARD of Liberals!!  You believe that if they build a road and YOU use it, it should be taxpayer funded, but, if a business also uses the road, they need to be charged separately!!  You also don’t see the difference, of using eminent domain to build a Public road and using it for Private purposes, these roads will be Public roads, NOT Private roads, for use by Wal-Mart, J.B. Hunt and Tyson trucks ONLY!!  Part of that money is to create a bypass around Bella Vista to complete an ongoing Interstate 540 project, connecting Interstate 40 with Interstate 44.

As for the light rail system proposed by Mr. Rust, this area is not big enough to support such a system, yet!!

RDS in
Saturday, February 16 at 12:47 PM

RDS: Reread the intros to my commentaries,RDS.I clearly stated there were other opinions and theories regarding public tax expenditures.Had I wished to misrepresent otherwise,I would not have include that as a preface.And no, I don’t read just the Iconoclast,but the Northwest Arkansan News and the Arkansas Democrat Gazette,too.However,there is a disclaimer about reprints,so I’ve not included commentary thereof. And I can see that the devastating tornados have not humbled nor made you more gracious or grateful ,but more ungracious and more hateful ,if possible,than ever before. Once again,you have chosen to make an issue about you-guess what ? It isn’t . Its about corporate welfare at taxpayer expense,no matter where the location is.

ddrb in
Saturday, February 16 at 04:41 PM

ddrb,

When it comes to tax money, there are ALWAYS other opinions and theories as what to spend the money on, that’s a given!!  But, just because YOU and others don’t agree with the outcome of a vote, doesn’t mean that the people “rolled over” of were “bought off”, maybe, just maybe, they came to the conclusion that this was the BEST path to follow!!  I believe if these roads were being built in Timbucktoo, you wouldn’t be saying a thing against them, even if J.B. Hunt, Wal-Mart and Tyson trucks were driving on them!!

“And I can see that the devastating tornados have not humbled nor made you more gracious or grateful ,but more ungracious and more hateful ,if possible,than ever before.”

How am I being ungracious and more hateful, I just tried to make a point, which seemed to elude you?  After the fires in California, SDV didn’t sound humbled, gracious or grateful either and all you people did, was to fawn over the fact that he and his property were safe!!  What did I get?  “Where’s RDS, hope he didn’t get hurt, I wish him no harm, but, I don’t miss his posts”!!

RDS in
Sunday, February 17 at 01:44 AM

RDS:That is not what I said after the tornadoes,RDS. And not to blow my own horn,but I was the first to post that I hoped you and yours had been spared from the devastation-and I NEVER mentioned anything about not missing your posts. Ken V posted the same sentiment of concern as I,if I ‘m not mistaken. I guess no good sentiment goes unpunished where you’re concerned,RDS,rather like dealing with Mattew Van tress.

ddrb in
Sunday, February 17 at 09:11 AM

BTW: RDS, it is ironic,however,that no expressions of sympathetic concern,or even curiosity for your welfare ,were ever expressed from your “ favorite blog buddies”...certainly not that I ever recall seeing.

ddrb in
Sunday, February 17 at 08:46 PM

ddrb,

Maybe that is because they know more about Springdale than you do and that the tornadoes didn’t hit here!!

RDS in
Sunday, February 17 at 11:18 PM

RDS: Well,if that’s the case,why didn’t they have the courtesy to enlighten the rest of us here ?

ddrb in
Monday, February 18 at 12:15 AM

Any community would be well advised to avail themselves of the resource information about corporate subsides by going to the GOOd Jobs First website. There are several studies and reports on the over $1 Billion of corporate welfare to WalMart,(WalMart Subsidy Watch) ,as well as a state by state breakdown.. This site is an excellent information resource for understanding the various tax reduction programs and incentives used by corporate America,( many times to the community’s ultimate detriment).It is extensive and valuable on many levels,IMHO. Here is an example:"THE IDEAL DEAL”
NEW HANDBOOK GIVES LOCAL GOVERNMENT OFFICIALS
SMART TOOLS FOR BETTER DEALS

Chicago and Washington—Local governments can write more effective contracts to improve the odds that companies receiving economic development incentives keep their promises to create good jobs and other community benefits - or pay taxpayers back.

That’s the message from “The Ideal Deal: How Local Governments Can Get More for Their Economic Development Dollar,” a new handbook released today by Good Jobs First and the Center for Urban Economic Development (CUED) at the University of Illinois at Chicago.

The handbook is co-authored by Dr. Rachel Weber, Associate Professor in the Urban Planning and Policy Program at the University of Illinois at Chicago and attorney David A. Santacroce, Clinical Professor with the University of Michigan Clinical Law Program. Weber has extensive experience surveying localities and writing about best incentive-deal practices; Santacroce has litigated and written about legal remedies for failed incentive deals.

“We are pleased to share best practices we have culled from local development officials,” said Weber. “Everyone benefits when deals are clearly defined - taxpayers, communities and employers alike.”

“No one likes to spend too much on a deal, and no one wants to sue if a deal doesn’t pan out,” said Santacroce. “Deliberate procedures and thorough contracts minimize the odds that problems will develop.”

The report takes local economic development practitioners step-by-step through the different elements of contracts that treat public incentive packages as a quid pro quo for public benefits. Each section discusses a different element of the ideal deal: valuation of public costs and benefits, performance standards, disclosure and oversight, and enforcement.  The report is freely available at www.goodjobsfirst.org/pdf/idealdeal.

ddrb in
Monday, February 18 at 10:46 AM

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