R.I. Treasurer Exposes Jacobs Trading Racket
BENTONVILLE, Arkansas: Rhode Island’s state treasurer has asked U.S. regulators to investigate whether Wal-Mart Stores Inc. violated securities laws by not disclosing that the son of the retailer’s chief executive works for a company that does business with Wal-Mart.
Wal-Mart said there is no conflict of interest and no requirement under the law for a disclosure. Mona Williams, Wal-Mart’s vice president of corporate communications, said the question is a “non-issue.”
In a letter made public Thursday, Rhode Island General Treasurer Frank T. Caprio asked the U.S. Securities and Exchange Commission to investigate Wal-Mart. Rhode Island’s state employee pension fund has substantial holdings in Wal-Mart shares through index funds that group large corporations, he said.
Caprio said Eric S. Scott, son of Wal-Mart Chief Executive Lee Scott, works for Jacobs Trading Co., which buys unsold furniture from big retailers like Wal-Mart and resells it to smaller discount stores. Caprio said Eric Scott “staffs” the Jacobs Trading office in Arkansas, where Wal-Mart is based.
Caprio argued that SEC rules require publicly traded companies to tell investors if an immediate family member of an executive has a “material interest” in another business’s dealings with that company.
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Posted by Jason Korta on Friday, May 25 | 16 comments | Permalink
Johnson City, NY. Manufacturing Jobs Gone, Wal-Mart Arrives
The shoe industry is long gone from Johnson City, New York. Now, instead of manufacturing jobs, residents can buy shoes made in China at their local Wal-Mart, on the site where the old shoe factory once stood. Johnson City is buzzing this week in reaction to a developer’s announcement of a proposed Wal-Mart superstore. Newman Development Group, which is based in nearby Vestal, New York, wants to build a 130.720 s.f. Wal-Mart supercenter on the site of the former Endicott Johnson Ranger Paracord site in the village. Newman Development has been trying to redevelop this property as a retail center for 14 years, the company claims. The Gannett newspaper chain opened a 96,000-s.f. printing plant near this site last year—another project of Newman Development. The businesses most likely to feel the impact would be the village’s Wegmans and Price Chopper grocery stores. A spokesman for Wegman’s told the Press & Sun Bulletin, “Initially there’s a significant impact. Over time, people do return and shop with us, but there will always be some impact.” The newspaper interviewed several local businesses in the area, who suggested that Wal-Mart would not hurt their operations. These are usually the same businesses that are gone within 5 years after a Wal-Mart opens. The Johnson market area already has a larger Wal-Mart supercenter in Vestal, which is only a five minute drive from Johnson. Newman Development’s plan must go through the New York State Environmental Quality Review Act (SEQRA). The store would be open all night.
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Posted by Al Norman on Monday, May 14 | 0 comments | Permalink
Bangor, ME. “Anti-Wal-Mart” Bill Gains Support
Big box retailers like Wal-Mart, Target, Lowe’s and Home Depot don’t want local officials to understand the real economic impact of their huge proposals on the local economy. Most communities have nothing in their zoning code to require an economic cost/benefit analysis, despite the fact that some states—like Vermont—have been examining the economic consequences of zoning decisions as part of the land use process itself. When economic studies are required at all, they are done by consultants hired by the developer, and, not surprisingly, always show that the big box store will enhance the local economy, not impair it. But too many local officials in too many towns have seen the devastation with their own eyes. This week in Maine, state officials are considering legislation that would require developers of stores greater than 75,000 s.f. to pay $40,000 up front for an independent study on the economic and environmental effects of their project on the local area. “I’ve heard from Maine Street in Bath, from Topsham and Brunswick - people not even in my district,” said Sen. Paula Benoit, R-Sagadahoc County, who owns a small business owner, told the Maine State House News. “They’re begging me to take action.” Rep. Chris Barstow, D-Gorham, the main sponsor of the bill, said his proposal will help the community to understand the implications of their land use decisions. The economic impact study would be conducted by independent reviewers. And reviewed by the state’s Planning Office. The studies would look at net impacts on property taxes, municipal budgets, local retail jobs and wages. These studies could be used by the local planning boards or permit granting authorities to determine if the project had an “undue adverse impact” on the local economy, which would be the criteria for denying a project. The bill would require all cities and towns in Maine to conduct such studies—but the developers would foot the bill. Not surprisingly, the legislation has run into opposition from real estate brokers, developers and business groups, including the Portland Regional Chamber of Commerce, the Maine State Chamber and Maine Merchants Association. These groups tried to convince lawmakers to make the bill a local option, so each community would have to vote to adopt it. “The truth is, you’d rather not have it at all,” said Sen. Elizabeth Schneider, D-Penobscot County. “I don’t understand the complete pushback from your organizations. This is not ant-business. I think it is pro-business,” because it helps people understand what effect big retailers will have on their community. Schneider said the former mayor in Bangor sent her a letter in support of the bill, because he has seen “the long-time stores that have closed in our region.” The bill was amended during discussion to have the state develop a list of qualified entities to conduct such studies, and a stipulation that the studies would be done in three months, not six, as originally proposed.
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Posted by Al Norman on Thursday, May 10 | 0 comments | Permalink
Maine Considers Big Box Bill
Anti-Wal-Mart bill strikes a chord in Augusta [Maine Current]
A bill that would deny big-box developers the right to build if studies show their stores would hurt the local economy won the support of a majority of the State and Local Government Committee Monday.
Dubbed the anti-Wal-Mart bill, the proposal hit a chord with both Democrats and Republicans, who say their downtown businesses have been hurt by mega-retailers.
“I’ve heard from Maine Street in Bath, from Topsham and Brunswick - people not even in my district,” said Sen. Paula Benoit, R-Sagadahoc County, who serves on the State and Local Government Committee and is also a small business owner. “They’re begging me to take action.”
Rep. Chris Barstow, D-Gorham, House chairman of the State and Local Government Committee and the main sponsor of the bill, said the proposal supports business and community.
The bill, written on behalf of the national Institute for Local Self-Reliance, would require developers of stores greater than 75,000 square feet to pay $40,000 up front for an independent study on the economic and environmental effects of their project on the local area.
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Posted by Alex Goldschmidt on Wednesday, May 09 | 17 comments | Permalink
New York, NY. State Teachers Urge CREF To Strengthen Oversight Of Wal-Mart
On February 19, 2006, Sprawl-Busters noted that TIAA CREF, the teacher’s pension fund, is the 15th. largest institutional investor in Wal-Mart, holding 20.5 million shares, worth $945.2 million. The TIAA CREF Trust Company owns another 126,680 shares, worth another $5.8 million. Last week, the New York State Union of Teachers (NYSUT) sent a warning shot across the bow of TIAA-CREF. On April 27th, the NYSUT passed a resolution titled “Urging TIAA-CREF to Continue Developing Shareholder Activism In Support Of Labor Rights In the United States and Abroad.” The resolution was originally submitted by the Professional Staff Congress at the City University of New York (CUNY). Excerpts from the Resolution are as follows:
“Whereas, NYSUT has been historically committed to the defense of human, civil and labor rights as well as the promotion of social justice both at home and abroad; and Whereas, NYSUT members in higher education generally have the option of selecting TIAA-CREF as their retirement plan, and the decision, made within the first month of full-time employment, is irrevocable; and Whereas, NYSUT has continuously demonstrated its opposition to low-wage, non-unionized labor; and Whereas, NYSUT has consistently informed its members and the public at-large regarding the unfair labor practices of many corporations currently included in TIAA-CREF’s stock portfolio (e.g. Wal-Mart, Coca-Cola, Nike and others) and whose Third World suppliers routinely ignore workers’ rights to organize and collectively bargain; and Whereas, a significant number of NYSUT’s members in higher education have their pensions invested in TIAA-CREF; and…Whereas, TIAA-CREF prides itself on being sensitive to the concerns which investors express about socially responsible investment policies; and claims to endorse and engage in corporate accountability; and Whereas, TIAA-CREF’s Social Choice Account…does not exclude corporations that insufficiently promote labor rights both at home and abroad; therefore be it Resolved, that NYSUT recognizes that its members who participate in TIAA-CREF should be offered the option of socially conscious investments that include options that screen for companies’ labor policies as well as other social criteria; and Resolved, that NYSUT on behalf of its membership encourages TIAA-CREF’s directors and trustees to substantially strengthen their corporate oversight of companies in which it invests; and be it further, Resolved, that NYSUT encourages TIAA-CREF’s new office of Social and Community Investing to refine its Social Choice Account so that it contains an explicit, clearly monitored and widely publicized labor rights screen that rules out the inclusion of companies, both in the United States and abroad, that conduct anti-union intimidation campaigns, refuse to bargain collectively, do not pay a living wage and don’t offer minimal health and retirement benefits; and be it further Resolved, that NYSUT encourage TIAA-CREF’s office of Social and Community Investing to offer new options that include companies with strong records in workers’ rights, community development and environmental issues; and be it further Resolved, that NYSUT communicate its interest in a socially conscious investment policy that includes labor screening to the TIAA-CREF President and Chief Executive Officer, the Vice-President and Chief Investment Officer, the Head of Corporate Governance, the Director and Managing Director of Social and Community Investing and the Board of Trustees and ask for a response within three months of this NYSUT convention.”
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Posted by Al Norman on Monday, May 07 | 0 comments | Permalink
Massachusetts Rejects Study for Amherst SuperCenter
State rejects Wal-Mart’s environmental impact report [Amherst (Mass.) Bulletin]
The state has rejected a draft environmental impact report related to the proposed 212,000-square-foot Wal-Mart Supercenter at Hampshire Mall. The ruling could delay the project a year, an opponent says.
The applicant, Pyramid Mall of Hadley LLC, must now submit a supplemental draft environmental impact report, according to the state Department of Energy and Environmental Affairs.
The department has determined the draft does not comply with the Massachusetts Environment Policy Act.
An official with Wal-Mart, the world’s largest corporation with projected 2007 revenues of $351 billion, said the setback will not impede plans for a Supercenter.
Spokesman Christopher N. Buchanan said any speculation as to how the rejection will alter the company’s timetable is premature, and said Wal-Mart remains committed to expanding its Hadley store.
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Posted by Alex Goldschmidt on Monday, May 07 | 0 comments | Permalink
Freetown, MA. Rare Turtles, Fly Ash Part of Wal-Mart Plan
Wal-Mart is so desperate for large parcels of land in Massachusetts, that it is willing to locate on top of a former coal ash landfill, with rare turtle habitat, and millions of dollars of needed traffic improvements. Developer K.R. Rezendes has proposed a Fly Ash Landfill Redevelopment on 81.38 acres in Freetown, Massachusetts that has local residents up in arms. On April 13, 2007, the Secretary of the Environmental Affairs told the developer, “I am requiring… additional information pertaining to traffic, wetlands, rare species, and mitigation. The project site is the location of the former K.R. Rezendes, Inc. coal fly ash landfill, which operated until 2002, when it ceased accepting and disposing of coal ash. 80% of the landfill has been capped, and the remaining 20% uncapped landfill will be filled over as part of the “Payne’s Crossing” project. This huge retail project will create 40 acres of impervious surface area. It also contains nearly 10 acres of bordering vegetated wetlands, and nesting habitat for the Diamondback Terrapin, a state protected threatened species. The project’s stormwater plan may result in direct impacts to nesting habitat of the turtle, and result in a “take” of state listed rare species. The project will convey 13.1 million gallons per year of sewage through the town’s sewer system. In Phase I the fly ash landfill will be closed, plus construction of a 170,000 s.f. home improvement store, a 217,000 s.f. Wal-Mart supercenter, and 1,600 parking spaces. In phase II, 95,700 sf of retail space to be located in five separate retail buildings, plus another 380 parking spaces. More than 482,000 s.f. of stores will be built in total. This will generate more than 25,100 car trips on a Saturday. The parking lot has 483 more spaces than required in Freetown’s zoning code. MassHighway has indicated that Payne’s Crossing’s traffic will have significant impacts on operations along the Route 79 and Route 24. The project’s traffic mitigation plans “are inadequate to accommodate the potential traffic impacts (and) will result in the development of vehicle queues that will extend beyond available queue storage and will potentially block traffic attempting to enter the Route 24 northbound and southbound ramps,” Mass Highway said.
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Posted by Al Norman on Monday, May 07 | 0 comments | Permalink
Bath, NY. Residents Gear Up To Fight Off Wal-Mart Supercenter
Sprawl-Busters received the following short report from citizens in Bath, New York who want to keep Wal-Mart out of their community: “One week ago Wal-Mart announced to the Town of Bath that it planned to build 150,000 s.f. Super Center. They submitted an environmental assessment form (EAF) and a site plan. They have not filed for a building permit. The store is proposed to be located along State Route 54, a two lane road, in the Town of Bath. The EAF states there will be an additional 880 cars per hour passing along this section of road once the store is operating. That’s over 21,000 cars in the 24 hours that Wal-Mart will be open every day.”
This store would be three times the size of a football field. “We are excited to have the opportunity to bring a Supercenter to Bath,” a “senior public affairs manager” for Wal-Mart told the Star-Gazette newspaper. “Currently, residents have to travel nearly 20 miles to shop at a Supercenter.” Wal-Mart claims that the proposed store will create 350 jobs, most of them full-time, and will generate a “significant amount” of local tax revenue for the town of Bath. “We know that Bath residents shop at existing (Wal-Mart) stores even though they are significantly farther away. We know from our research that it will be a pretty big draw and a pretty successful Supercenter.” The retailer said approval could take eight months to a year. The town’s Supervisor in Bath told the newspaper it was “satisfying” that Wal-Mart has enough confidence in the town to undertake a project there. “It is my hope that the Wal-Mart development will make Bath a shopping destination and will serve not only the Bath community but also draw shoppers from outside the immediate area,” the Supervisor said. A member of the town board already indicated his support for the project even before the site plan has even been reviewed. “I know that some people immediately have some negative thoughts,” Board member Robert Lattimer said. “But I have seen Wal-Mart developments be very positive things for small communities.”
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Posted by Al Norman on Monday, April 30 | 0 comments | Permalink
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