Signs and Lies

I remember the first time I saw the sign on Baseline Rd and Aspen Ridge Dr in Lafayette that said "No access to Super Wal-Mart". I was compelled to drive down the road and see what sort of cul-de-sac was created to stop this back way from being used. Turns out there IS access to Wal-Mart.

For reasons having to do with traffic congestion, this little white lie by the city is meant to help direct traffic to the main entrance to WalMart on Hwy 287. I can't recall seeing a city sign before that was so blatantly wrong, and wrong intentionally.

This is a bad precedent. The City instead should put up a sign saying "Want traffic lights here? Vote yes on 2A." Trying to be cute with false statements just annoys intelligent citizens.

Trouble In WalMart Land

WalMart's gentleman's agreement in Longmont to build a Sam's Club along with a new SuperCenter is reported in the Times Call to be off the table, making city planners a bit anxious and threatening hardball.

The Sam's Club part of the deal struck in March is said to have been the sweetener that made the deal fly. Now WalMart corporate refuses to commit to the Sam's Club component, leaving Longmont in the position of refusing to fund public improvements as punishment. Too bad the city's agreement with them wasn't all or nothing. Meaning, too bad they don't have veto power over the SuperCenter given the apparent flipping off WalMart corporate is sending in lieu of the Sam's Club.

What's A Little Traffic Among Friends?

Knowing the bargains are right around the corner, and that the sales tax is funding our small town quality of life, only those non-residents passing through Lafayette to points east and west should care about the impending traffic snarls on and Baseline Rd. WalMart's impending opening in August has raised the concerns about traffic impacts - but its unlikely to hold up their opening.

According to the Camera, WalMart has to have made certain road improvements; in this case the focus is on a turn lane and lights on Aspen Ridge on the north side of Baseline Rd, which will act as the back entrance to the SuperCenter and a likely alternative for delivery trucks.

Councilor Frank Phillips is quoted talking about considering options for withholding the certificate of occupancy until the road improvements are finished. But City Administrator Gary Klaphake says it is not Council's call.

The leeway WalMart is seeking is a loophole (see #2 below) in the development agreement that says:
"The City will not issue certificates of occupancy for the building improvements to be placed upon the Property unless (1) the Public Improvements as required for each lot or the particular phase upon which building improvements have been constructed are substantially completed, except for minor punch list items, and placed in service, or (2) the progress, in the sole opinion of the City, on the Public Improvements required for the Property or building is satisfactory to the City, and the Owner is proceeding therewith in good faith and in accordance with an acceptable time schedule, as approved by the City, and all terms of this Agreement have been otherwise faithfully complied with by the Owner in all material respects."

Oh well. Given the length of time to get lights just across Hwy 287 in front of the Library/King Soopers, people will be used to that by now. Where else do we need lights? Let's get that on the list.

More Traffic Makes The News?

The Lafayette News highlights the impending traffic headache for residents living across Hwy 287 from the imminent Super WalMart.

From the comments quoted, Council looks like they somehow dropped the ball. However I believe the state bases additional lights on the highway on traffic counts, which won't increase until post-WalMart. So the folks in the neighborhood east of WalMart are screwed. Turning south onto Hwy 287 from Caria will be a headache for years. But cheap Advil will always be right across the street.

WalMart Keeps Rollin' - Broomfield's Next

The Broomfield Enterprise describes "an unusually well-attended Land Use Review Commission hearing" last Monday regarding a 196,000-square-foot WalMart Supercenter to be built northeast of 120th Avenue and Sheridan Boulevard. Broomfield's looking a a nearly $5million sales tax break to lure WalMart in. Sigh.

WalMart's Energy Efficiency?

Two points about the WalMart discussion have been interesting - one is how much WalMart plays into future revenue projections and therefore what the city believes could be leveraged with bonds on the ballot this fall; second is the notion of energy efficient design at the new Super WalMart.

I had written about my sympathy for the Lafayette City Council in February 2005 regarding their December 2004 damned if you do, damned if you don't predicament with WalMart. Councilor Kerry Bensman helped me with a bit of history to WalMart back then - he has alluded to the bigger picture in a recent comment below.

So how does WalMart's tax breaks on sales square with long-term revenue projections for the city budget? My call for not shopping there on ethical grounds I expect will not truly keep the hordes from swarming, it is just my voice in the wilderness. But, if WalMart doesn't bring in more revenue than they did at their South Boulder Road locale, they don't actually get any kick-back. And I'm intrigued at any kind of energy efficiency aspect - such stipulations would likely have been a deal breaker. Lafayette residents haven't clamored for that as a priority like Boulder residents (yet). Here's what WalMart says they're doing without being asked.

WalMart Flaw #11,562

"We found that managers and assistant managers went into employees payroll data bases, and they deleted time that had been entered by employees." Long said that he found written policies from Wal-Mart's corporate offices telling managers across the country to practice payroll manipulation.

As part of my simmering reminders to people not to shop at WalMart (so Lafayette won't hit the threshold of negotiated kick-backs) here's a new article on the company's latest involvement with the law from the Denver Business Journal.

Wal-Mart Struggles

As Lafayette's sales tax income relies in part on Wal-Mart, here is another in my occasional series of rants against the company that stands to keep millions in excess sales taxes at its new Super location on Hwy 287, pending certain sales benchmarks.

The giant commercial titan is showing more cracks in its amour; that is in its business model with a focus on low prices period. With $345 billion in sales in 2006, wages have stagnated while costs of energy, housing and transportation have risen. Competitors such as Target, Kohl's, CVS, etc. are growing. Businessweek Magazine reports this week on Wal-Mart's Mid Life Crisis as their lead story.

Wal-Mart's flashy entrance into organics has busted, as its customers simply shop price alone and a slight premium is not part of their purchasing motivation.

News recently about Wal-Mart spying on shareholders, suppliers, vendors, critics, even its own Board. We're seeing a shift in this juggernaut that will be fascinating (like a car wreck) to watch.

Bring on the Target and Lowe's to Lafayette; Wal-Mart will not remain the same monster they've been.

Yet Another Wal-Mart

Longmont has approved their third Wal-Mart development, this one at the southeast corner of Hwy 119 and County Line Road. “It’s exactly what we envisioned when we decided we needed regional commercial at this corner,” Longmont Mayor Julia Pirnack is quoted as saying in the Daily Times-Call. I'm not sure if the context of her comment literally meant Wal-Mart over any other commercial development, but the blanket endorsement of their proposal is disappointing. More about this in the Daily Camera too.

I've written about my issues with Wal-Mart along with other folks' comments on this blog, plus a Yellow Scene article about why I don't shop there. I'm not a front-line advocate against them, just a person who has not shopped at their stores for years based on their operational philosophies. They always cause an interesting discussion, and their impacts on communities' budgets make them impossible to ignore. Do you shop at Wal-Mart? Do you take into account various social/economic/labor/environmental philosophies when choosing a vendor of things or services to buy?

A Refresher Course on the Lafayette Walmart EDA

Just doing my homework here. I am sure there is some logical explanation for some of misinformation presented in an earlier thread, but I thought readers should have the facts.

The original offer of an EDA to Wal-mart was approved unanimously by the Council in December of 2004 (http://www.cityoflafayette.com/News.asp?NewsID=173). Something apparently changed between then and October 4, 2005 when the final vote occurred.

Here is an accurate description about how the EDA works (taken from the City Website):

Wal-Mart will incur the total expense up front for the above items. The City will contribute the $2,335,832 towards the land cost over time from the increase in sales tax revenues generated by the new store. Only the sales tax revenues above what the existing store already generates (projected to be $1,150,000 for 2004) will be rebated to Wal-Mart to pay for the incentives. At conservative estimates, the new Lafayette Wal-Mart is expected to produce $1,800,000 in sales tax revenues each year, meaning that there will be a 3.6 year payback period, after which these additional revenues will be available to the General Fund. It is important to note that the portion of the sales tax that is dedicated for the purchase and maintenance of Open Space are exempt from these rebates, so those funds will see an immediate benefit from the new store’s revenues.

The final numbers in October were: The base was set at $1,110,689 and the rebate amount was set at $2,238,332.

To explain this in simple terms -- if Wal-Mart submits $1,000,000 in revenue to the city, the city keeps it all. If Wal-Mart submits $2,110,689, the city keeps $1,110,689 and Wal-Mart is reimbursed $1,000,000. And so on. The City will not rebate a cent to Wal-Mart until it has collected the base amount. When the rebate amount is reached, all additional revenue goes to the General Fund of the City. At the time the EDA was passed, it was expected to take 42 months to complete the rebate.

WalMart Worries

My put-down of WalMart brought in some of the most interesting comments to date, and the behind-the-scenes emails to me were even more, um, let's say "thought-provoking". To stoke the fires again (go back and read the range of opinions on this blog here), I found this report interesting in the Associated Press:

"Wal-Mart has struggled in recent months on a mix of problems, including the
fact that its lower-income customers were hurt by soaring gas prices. But
the company's lackluster sales have persisted even as the cost of gas eased,
an indication that there are other factors that are dragging down Wal-Mart's
results." The full Associated Press article is here.

Is there a small crack in the giant's fortress? Some market forces may be at work here that they haven't had to address before...

More of Your Favorite Things: Another Super WalMart in Longmont

Longmont will begin working to widen the intersection of CO Hwy 119 and County Line Rd (Also known as Weld Co Rd 1) in anticipation of a development application for a new WalMart/Sam's Club. Read more in the Daily Times-Call story by Trevor Hughes.

WalMart does not deserve anyone's business, as I've railed against the corporate giant's business practices before when Lafayette approved the Super WalMart about to start construction on Hwy 287. Read my rationale in an article I wrote for the Yellow Scene.

Their low prices come with a larger national and global price; once you understand the variables involved in their smiley-faced price reductions, you can't in good conscience shop there. Ulimately, it costs money to be principled.

In the Wake of Walmart

Lafayette's Urban Renewal Authority has settled for a ho-hum vision for a large parcel at the south entrance to the city's downtown thoroughfare. After Walmart leaves this fall for its new Super spot on Hwy 287 most of the commercial space at the northwest corner of South Public and South Boulder Roads will sit vacant. The Lafayette City Council, in its role as LURA, went for a minimized redevelopment plan that misses a huge opportunity. Read more about the decision in the Daily Camera.

It was predictable that the Council that deferred to the mounting opposition to the Waneka property annexation would also prefer a scaled back plan for this site. The previously ambitious mix of residential, commercial and park space have been reduced to include only 130 residential units, not enough to attract the kind of important commercial development that could provide a solid long-term boost to the city's sales and use tax revenue. Redeveloping this parcel only half-way misses the point of quality in-fill redevelopment.

Read more on the Lafayette city website and check out details at the open house on the Redevelopment Project at the Lafayette Public Library, Oct 12 from 6:00 PM to 8:00 PM.