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by Muzi.com News
2006-05-23
Wal-Mart Stores Inc. is known for its hardball
tactics, but the little city of Hercules has come up with some muscle of
its own in a bid to keep the big-box retailer out.
The City Council in the affluent Bay Area suburb will
hold a hearing Tuesday to consider using the power of eminent domain to
seize the 17 acres where Wal-Mart intends to build a shopping complex.
It's a novel approach to a fight that has taken place in communities
across America.
"We want something good to take that place," said
Jeffra Cook, a Hercules resident since 1988. "There aren't a lot of good
stories about Wal-Mart."
Cook and other opponents in this bedroom community of
24,000 worry that Wal-Mart will drive local retailers out of business,
tie up traffic and wreck its small-town flavor.
Wal-Mart spokesman Kevin Loscotoff accused Hercules of
"playing politics" and said turning down a Wal-Mart would deprive the
city of much needed revenue. He said some residents want a Wal-Mart in
their community.
"We've attempted to meet with the city and haven't
been given return phone calls or e-mails," Loscotoff said. "In a case
like this you'd certainly hope to have some sort of dialogue."
Wal-Mart's initial proposal for a 142,000-square foot
store near Hercules' San Pablo Bay waterfront were rejected by the City
Council. So the company submitted a scaled-down plan that included a
pedestrian plaza, two outdoor eating areas and other small shops,
including a pharmacy.
Hercules said no again, and opponents began raising
the possibility of eminent domain, a legal tactic where government
agencies can take land from its owners for the public good. Cities
sometimes use eminent domain to build roads or redevelop properties, but
the owners must be paid fair market value for their land.
The U.S. Supreme Court ruled last year that such
seizures are allowable if the construction raises the tax base and
benefits the entire community. Some residents and city officials say the
land, which is currently open space, would be better suited for upscale
stores that attract affluent shoppers and give the suburb a classy
touch.
Hundreds are expected to attend Tuesday's meeting.
City Councilor Charleen Raines said he can't remember any issue
receiving so much attention in the community.
"There's no question there has been a huge amount of
public interest in this," she said.
Loscotoff said Wal-Mart remains committed to opening a
store in Hercules.
Hercules is the latest California city to clash with
the Arkansas-based retail giant, which has ambitious plans to expand its
presence in California by 2008.
In 2004, voters in the Southern California city of
Inglewood overwhelmingly rejected the company's plans for a Wal-Mart in
their community. And Turlock, in rural Stanislaus County, enacted a
broad ban aimed at keeping out Wal-Mart and other big-box retailers out,
a law that was recently upheld by a federal appeals court.
Other cities across the country have kept Wal-Mart out
by imposing size caps for businesses and laws that set high minimum pay
rates.
But Wal-Mart has been at least as successful at
imposing its will on communities that are less than thrilled to host one
of its stores, said Nu Wexler, a spokesman for the activist group
Wal-Mart Watch.
In one instance, the company even raised the specter
of eminent domain to get a store built in Florida, he said.
"Wal-Mart does not hesitate to employ scorched earth
tactics to break into communities that don't welcome them," he said.
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