City Council hears numbers on Wal-Mart

Eron Ben-Yehuda

A report detailing Wal-Mart’s financial impact on the community, unveiled

at Monday’s City Council meeting, didn’t change anybody’s position on the

controversial project.

The council requested the report as a precursor to a March election in

which voters will decide whether to rezone the property on Talbert Avenue

at Beach Boulevard, where Wal-Mart plans to build a 150,000-square-foot

retail complex. If a majority of voters accept rezoning the 13-acre site

from commercial back to residential, then Wal-Mart will probably not be

able to build on the old Crest View school campus.

In a comparison of fiscal benefits, the report shows that revenue from

Wal-Mart would completely trounces income from homes that would likely

stand in its place. But the retailer’s opponents looked with a jaundiced

eye at the glowing revenue estimates prepared by city staff, who

recommended the project’s approval.

“Don’t be fooled by this type of report,” resident Marvin Josephson said.

“This is similar to asking an employee to write their own performance

review.”

According to staff, the store would generate about $400,000 per year in

tax revenue, as opposed to $20,000 annually if homes were built.

Wal-Mart would pay the landowner, the Ocean View School District, about

$400,000 per year on a 65-year lease, the report states. Over the life of

the lease, the district expects to collect about $40 million, whereas

selling the property for residential development would bring in only

about $7 million, the report concludes.

The difference increases even more if the property is zoned commercial,

because the district would qualify for $27 million in state funding, the

report shows.

The money Wal-Mart would bring could help fund projects that benefit the

entire city, such as a senior center or a sports field, said City

Councilman Ralph Bauer, a strong supporter of the project.

But the biggest winners will be young students, he said.

“I’m going to help 10,000 kids in the Ocean View school [district],” he

said. “How can people be against that?”

Voters will decide where they stand at the March 7 election. Since the

council has already approved the project, Wal-Mart’s developer, Arnel

Retail Group, has the right to request city permits, which would then

cause the project to be “vested,” exempting it from a rezoning vote. But

Arnel agreed Monday to hold back on requesting permits until after the

city vote.

Arnel did not agree, however, to dismiss its lawsuit challenging the

validity of the petition drive that gathered enough signatures for the

ballot initiative. The developer simply promised not to move forward with

its suit until after the election, the agreement dated Monday states.

But City Councilwoman Shirley Dettloff said the stage is set for a fair

election.

“Supporters and opponents [of the project] will have a very level playing

field,” she said.