Pam Strickland's column today outlines all the reasons she feels the City of Knoxville should not provide an additional $1.5 million in funding for the University Commons Walmart/Publix shopping center at the old Fulton Bellows site.
I looked at some numbers when this came up, and it doesn't seem like all that bad of a deal. It puts a brownfield back on the tax rolls (eventually), and the ginormous TIF has already been approved. It could also generate millions in sales tax starting day one.
Walmart, according to their latest annual report, generates about $68.3 million in annual revenue per U.S. store on average. According to previous news reports, the proposed Walmart will be on a smaller scale, partly because it won't carry groceries, so it will likely be less than the average. But even at half or less of that, it's some serious sales tax. And that's not counting Publix, which racks up tens of millions in sales per store.
But, it seems like companies with billions in revenue ought to be able to cover the developer's $1.5 million financial planning mistake. And, as Pam Strickland noted, all these tens of millions in annual revenues aren't going to just materialize out of thin air. People in the Knoxville metro area aren't suddenly going to find more money to spend at big box retailers and grocery stores every time a new one pops up.
Then there's the problem of large national retailers operating on the assumption that local governments will cough up taxpayer funded corporate welfare to lure them in. The cure for that is for all state and local governments to declare a moratorium on incentives and start competing on economic and market strengths, public education and workforce readiness, quality of life, and other factors that benefit the community as well as the corporations. But until then, everybody has to compete on Corporate America's terms.
RELATED: The Mayor and Walmart
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If the request was $5 million, the easy answer would be no
But in my opinion the City of Knoxville has become a mark for business that can extract funds from the city, given its limited government role in the community (police, fire, some parks and roads)and its propensity to throw money around to try and look/act like a major southern city. They have already provided a $10 million TIF to keep the property taxes down as the project rolls up and now they are being asked to provide $1.5 million in improvements that most businesses/developers provide themselves where the roads/infrastructure will not be turned over to the city. By chiseling the request down to $1.5 million, the perception is that the City of Knoxville does't want to be the one to kill the project, when in reality the project and the development itself should stand on the capability and the financial strength of the developer and the involved tenants.
Such municipal charity for the national business community is always suspect and tends to operate unfairly against the local (usually smaller) business owner who has received no public assistance from the city and now must compete against publicly subsidized national retails. This is Wal-Mart and Publix, but downtown you've got UrbanOutfitters and those ecclectic shops and boutiques on Market Square Mall should not have to compete against a national retailer and their marketing/volume largess while they are being supported by the local government.
The proper role of governemnt is to get out of the way of business and industry such that they can get busy, put people to work, and engage themselves in commerce driving revenue and filling the tax coffers of the local community. The proper role of government is not to incentivize large national corporations who generate as much money in a day as the city of Knoxville will collect in a year's worth of property/sales taxes.
I'd vote no, but I'm not sure City Council has the stones to put these developers in their place and make them put their projects togather without repetitive public assistance.
Excellent and very well researched !
Thanks, Pam. I have not been a 'Walmart shopper' since I learned about their employment policies, how they discriminate against women, several years ago. At one time, here in TN, Walmart did not provide health insurance, forced women to be 'part-time' so they could only get insurance they could afford was by applying for TNCare...not sure that policy is still in effect. The quality of their goods and services is dismal, most of it made overseas.
If companies, such as a global entity like Walmart,has to be bribed to come to downtown, this should not be allowed, especially when they out-source millions of their 'good' jobs overseas.
City Support for University Commons
This is a very important matter worthy discussion is some detail.
The appropriate framing of the issue is whether to support the building of public infrastructure to support development of a brownfield in the core of the city. This development is urban in nature, with structured parking, that will provide groceries, shopping, and jobs in an area characterized as a food desert.
This is not about supporting Walmart or Publix as corporate entities. Both are tenants in the development. Both will pay top dollar to be there. No assistance is going to either. The city never sought any retailer, and no retailer has ever approached the city. Rather The City is working with the developers. The developers sought tenants for the structures and found a well-respected national grocery chain along with Walmart’s agreeing to employ an urban model a bit smaller in scale with no grocery component. The City’s interest is in revitalizing the tax base and creating economic opportunity for local businesses and residents.
The administration recommended the TIF and recommends this commitment of 1.5 million dollars for bridge and road work for the following reasons.
--On a pure pro financial forma basis, the site presently pays $7,000 yearly in city taxes.
--During the TIF period, the City will receive $120,000.
--Following the expiration of the TIF, the City will receive $500,000 yearly.
The sales tax will be very substantial, and even if a good portion would have been spent elsewhere in the City, we have every reason to believe that a significant portion would have otherwise been spent elsewhere.
There will be approximately 65 million dollars of investment into this site. The developers and their bankers are at risk for the success of the project. If it does not produce the tax revenue sufficient to retire the TIF loan and the private loans, the developers are obligated. To this point the city has no dollars in the project and is not at any risk if the project fails. The 1.5 million will be structured such that it is only paid at project completion.
The City has obligations for pensions, salary increases, increased medical costs, increased fuel costs, etc. Local governments cannot benefit at all from property reappraisal and thus from inflation. The only way the city can meet its growing obligations is with growth. Days of large scale annexation are over. This growth must be internal.
There are precious few sites within the City that have not been developed or do not present great challenges for development. We have very difficult sites such as University Commons, the old Baptist Hospital, the industrial corridor between I75 and Central, and the Magnolia Warehouse district and Standard Knitting Mills in particular. These sites are not at all likely to look any different than they look today without significant city participation. The infrastructure is old and often quite inadequate; most existing buildings are blighted, etc. These are about as far as they can be from the typical greenfield development site and cannot be treated under the same development paradigm.
There are common elements among these sites, but let’s concentrate on University Commons, the old Robertshaw plant. There is not road access to Neyland or appropriate road access to Cumberland. There is a brownfield area with real and significant environmental issues that the buyer of the property must assume. The only way out to the South is through the University. It is essential that UT be worked with closely to deal with real design, safety, and traffic concerns.
This land has been in play for years. Before the collapse of 2007-2008, numerous interested parties made inquiries about the site, usually for student housing. None could come close to making it work, and none would accept the environmental exposure. The University passed on the site as well.
We consider any request for public participation in a development along two dimensions – the “but for” questions and the question of public interest. This project easily meets both.
Relative to the “but for”-- There is no pro forma that anyone could ever produce that would place responsibility on the developer to build bridges and roads, do traffic studies, change the amenities along Joe Johnson, and accept environmental risk for a seriously environmentally challenged site and come close to breaking even, letting alone providing a potential return on investment. Simply put: without significant city participation, the area will stay like it is now for decades if not for perpetuity.
The public interest is clear-- This produces significant design and construction activity and will provide jobs in the city core and economic opportunities for folks in nearby areas such as Westview, Mechanicsville, and Lonsdale. It will produce significant tax revenue to support city services all over the city. It provides significant economic activity where it is needed and when it is needed. It takes a blighted area and restores it to productive use.
True, the traditional approach is for a developer to pay for public infrastructure improvements necessary to facilitate access to the development. This typically involves a turn lane or a traffic light along an existing road built at public expense. This is not such a site or such a situation. This is a very ambitious exercise with the majority of the expenses associated with totally new road construction, traffic management, improvements to public roads through the campus, and major bridge construction. Moreover only a carefully engineered capping of the brownfield will allow the site to be given the environmental clearance. Finally, with the Tennessee River and the nearby creek, wastewater containment is difficult and expensive. From an environmental standpoint this undertaking is not for the faint of heart.
The developers originally came to us with this proposal with a request – “Are you interested and will you work with us.” Well aware of the challenges for large scale development inside the city and at this site in particular, we concurred on both fronts. We agreed to the TIF but not to any money on the front end and urged them to close the gap through New Market Tax Credits. Through no fault of their own, the tax credit piece fell short and left a gap of 3 million dollars. We agreed to share that shortfall with them. Hence the administration has placed before Council this request for public road improvements and bridge construction.
The easiest thing to do in such situations is to turn away and refuse to support such projects. It is not in the public interest to do so for the reasons enumerated above. As we have shown in downtown, investment in infrastructure and direction of the otherwise unrealized tax increment can bring about development that greatly enhances the tax base and provides significant economic opportunities and secondary and tertiary economic spinoff benefits. For example the TIF at the Holston has increased its appraisal from about $900,000 to over $20 million dollars.
We must pursue this strategy in the underdeveloped, challenged, industrial, and commercial corridors if we are to find the wherewithal to prosper as a city and to provide economic opportunity to those who live here. This means participating to the degree necessary such that folks find it worthwhile to put themselves at risk in taking on ambitious, challenging projects in our most difficult areas.
Sure the developers stand to make a healthy return if all goes well, but they are not guaranteed this return and could easily lose millions under many worst case scenarios at the project level or at the level of macro economic forces. On the other hand, the return on investment for the city is great, and the risk to the city is very limited.
Mayor Rogero has clearly stated her priorities of environmental responsibility, aggressively confronting blight and abandonment, quality urban development in a manner that is respectful of neighborhoods, supporting the business community in providing economic opportunities, and growing the city’s top line revenue to avoid placing unnecessary tax burdens on our residents and businesses. And while top line revenue growth is important, it alone will never suffice. We have declined to support projects that do not meet these criteria. The University Commons project is consistent with these objectives and merits public investment.
Thanks.
n/t
n/t
--During the TIF period, the
--During the TIF period, the City will receive $120,000.
--Following the expiration of the TIF, the City will receive $500,000 yearly.
Is expected to receive?
The sales tax will be very substantial, and even if a good portion would have been spent elsewhere in the City, we have every reason to believe that a significant portion would have otherwise been spent elsewhere.
Huh? Elsewhere in the City? Elsewhere not in the City? If not in the City, where?
If it does not produce the tax revenue sufficient to retire the TIF loan and the private loans, the developers are obligated.
Hah! Ha, ha, ha, ha,...
The only way the city can meet its growing obligations is with growth.
Hmmmm....
Thanks for your patience - a bit more
I appreciate everyone's taking the time to read through this. A couple of items here merit further discussion. First, I would like to address Tamara's good suggestion in regard to finding a coalition smaller retailers. There are large bank loans that must be obtained and anyone seeking these loans must have bankable tenants signed for long term leases or purchase. Even in the very unlikely event that local businesses could afford the per square foot rents necessary to make this project's numbers work out, no bank would loan the tens of millions of dollars to a developer without confidence that the firms would be in a position to pay over the multiple period. We are talking about expensive structured parking in a complex capping of a brownfield and necessary approval of all regulatory agencies.
As to the expected vs. actual future tax return to the city, the issue Bizgirl raises is a key one. She is correct in pointing out that this is expected, or based on likely tax appraisals and 40% business assessments. These are made after discussions with tax assessors office and based on estimates based on the investment in the project, projected sales,etc. But what if they are incorrect?
TIFs are approved for up to a fixed number of years. During that time the new city property taxes realized by the project are divided as follows. Approximately a fourth comes immediately to the City. The remainder goes to retire a loan that the a bank has agreed to provide to the developer.
So what if the estimates turn out to be in error? If the project does not produce the taxes expected and the loan is not paid off during the time period the developer still owes that money to the bank. True, in such a case the city receives a bit less than anticipated but still receives significant multiples greater than $7,000 yearly presently received. The "produces less taxes than expected" scenario is still a "no-lose, just less win scenario" for the city if not for the developer and the bank.
On the other hand the taxes produced are in excess of what is expected the loan is retired early and the city begins receiving more than anticipated earlier than expected. That is a "win" scenario for the city. In any case the risk falls to the developer and not to the city.
Cities are municipal corporations granted some authority by the state to leverage future taxes for projects like this. Our judgement is that the public benefit in good urban design, construction activity and associated jobs, blight removal, brownfield remediation, jobs for people in the city core, and significant generated taxes to the city merit the city's use of available tools to participate in the project.
Clearly some folks here disagree and would not have the city participate. I would ask that people be aware of the unintended consequence of turning away from projects and driving developers to limit their efforts to the easier, more traditional greenfield sites along existing arteries far from the city center. The city needs continued investment, and as I wrote earlier, most large sites in the core of the city are significantly challenged by virtue of their earlier, usually industrial uses.
It is good that we can discuss the pros and cons of this situation in a positive manner. None of these decisions are arrived at easily but once arrived at we are committed to explaining our position. As I hope people can appreciate, there are a tremendous number of variables to take into account. Thanks for the opportunity to present our thinking and for the patience to bear with us through the long explanation. We appreciate this level of quality civic engagement.
Thanks, Bill..The sales tax
Thanks, Bill.
The sales tax will be very substantial, and even if a good portion would have been spent elsewhere in the City, we have every reason to believe that a significant portion would have otherwise been spent elsewhere.
Can you elaborate about the "otherwise been spent elsewhere?" By that do you mean in the county/Farragut, etc.? Is the city expecting a net increase in sales tax revenues? Jobs? What is the expected impact on county sales tax revenues? Is there a study with projections?
As I said in the original post, there's no doubt the development will generate major sales tax revenues that could more than pay back $1.5 million in the first year. A lot of folks just wonder about where that comes from and whether we are shifting it around from one development to another.
Sales taxes, etc.
Randy, I don't have the material with me but my best recollection is that the projected sales tax generated is $80,000,000 yearly. Of that 2.25% is local. That would be $1,800,000. The city pays 72 cents of every sales dollar to the schools. The remainder to the City is $504,000.
It is impossible to project exactly what amount of this is redistributed from other areas of the city but given the location off of Aloca Highway and near UT we believe that some very real portion of this is new sales taxes for the city, and to the degree that folks outside Knox County shop there, for the Knox County Schools. The property tax increases, on the other hand, clearly represent new revenue streams for the city.
The jobs created for design and construction are of course new jobs and very much needed given the present economic situation. some number of the jobs later created in the complex almost certainly will end up being replacement for other jobs elsewhere in the city. There is not doubt about that. But they are located in an area very much in need of these jobs.
We are always a bit wary of supporting retail development through incentives because of the redistribution factor. For that reason we have turned away a large number of requests for assistance. That is why all the other factors - brownfield and blight removal, property tax generated, must be taken into account as well as other very real but indirect benefits of visible investment in the city core, especially by a firm such as Publix.
This investment is a vote of confidence in what the City is doing with Downtown, Cumberland, Downtown North, Magnolia Warehouse and the South Waterfront. The investment potential in the Cumberland corridor and in the other areas is significant. Just as Regal brought about Mast which brought about lots of restaurants downtown and brought about Urban Outfitters and Tupelo Honey we have every reason to believe that this development will help create further investment in quality projects in the core.
As former Mayor Bill Purcell of Nashville said at a lecture at the Baker Center last week - "Cities are back." I might add that the climb back has not been that easy for any city. Government has a role to play and is provided tools to help accomplish fulfill this role. Mayor Rogero is committed to the City's using these tools wisely and strategically.
Thanks again for providing the forum in which to engage these issues.
Thanks again. Assume you
Thanks again. Assume you meant $8 million? That's a little more than I guesstimated, but it's a lot regardless.
i think he meant $80 million
i think he meant $80 million in projected sales. the local tax on that would be $1.8 million.
Oh, you are probably correct.
Oh, you are probably correct.
My back of the napkin calculation of possible annual sales was about $78.4 million based on Walmart and Publix estimated per-store averages. The Walmart is supposed to be a scaled back version, though, so that figure is likely pretty high. It will still be substantial, though.
Re: the Mayor and Wal-Mart (I
Re: the Mayor and Wal-Mart (I still use the old style spelling because I lived and worked in Arkansas for 21 years when that was the way they spelled it). I know what I experienced. I was working the booth. It would have been before 2008, but probably after 2005. I could probably narrow it down with a little bit more footwork because I, personally, have only been to Vestival twice. I didn't see the need to ask the mayor if she remembered it, because I witnessed it. She doesn't say it didn't happen, just that she doesn't remember it. A classic politician's nondenial denial. And I stand by what I saw.
And Flory, who is supposed to be and objective business news reporter and editor is right that I was sharply critical of Wal-Mart. Frankly, I don't think I was critical enough. I didn't specify how they have ruined small town America. Or how they are infamous for leaving empty stores when they build new, bigger stores down they road thus causing their own form of urban blight. I didn't get into how their orders can make or break even big companies, such as Rubbermaid. I left most of that to the LA Times Pulitzer-prize winning series.
I've wanted to write about this previously, but something else always seemed more important. When the developers came back for yet more money, that was the end of my rope. They shouldn't be asking for public money to put together a retail deal. Fine, federal incentives for the brownfields, but that's it. They live in this community. They should be contributing to it, not sucking it dry.
*
I wonder if possibly Pam's and Randy's objections might have been answered--and the City's goals met, too--had some third party connected these developers to a coalition of smaller local/regional retailers potentially interested in the site.
It's a shame the City has no such third party.
This burg could do with a Chamber of Commerce...
This burg could do with a
This burg could do with a Chamber of Commerce...
:)
Are these the developers Haslam provided guaranty for?
In my opinion, this is probably the same development group that needed former Mayor Haslam's multimillion dollar personal guaranty to get the NorthShore Town Centre site secured and get the Publix and Target rolling and now they don't want to incur the costs to build out the infrastructure to get cars and truck in and out of the Publix/WalMart site.
I am not persuaded by Dr. Lyon's often utilized language and municipal buzzwords regarding redevelopment of a brownfield site for two national retailers and extremely well healed local developers. If this were redevelopment for a local business or redevelopment for an employer which would provide meaningful jobs, benefits, pay packages, and potential careers for the citizens of the community, I would be much more persuaded. But to help those non breathing beheamoths who need the financial help the absolute least is completely irresponsible government and I hate to see the Rojero administration rolling over to more developers (we didn't think that would happen this time) caving in to national retailers (we expected the focus on local businesses, not national retailers)and publicly subsidizing the development for two national retailers notorious for non-union sentiment and employment practices and payment of absurdly low wages, without appreciable benefits or competitive compensation practices. We were of the opinion that Mayor Rojero was much more principled than to again fall into that "development" trap using public money to enrich private enterprises and national retailers.
Since most of these jobs will be filled with university students and potentially providing some insight into the national retail landscape for certain students, the request for infrastructure improvements should be directed to the University of Tennessee, but the City of Knoxville is so predisposed to throw the public's money around all in the name of "development", it's just way too easy to keep knocking on the 6th floor door. In my opinion, anything other than a brisk HELL NO from Mayor Rojero and Dr. Lyons is a precursor to continued irrelevancy and a spineless abstention of sound government principles all for the sake of further enriching the same old local developers and their national retailers.
These are national retailers who don't advertise in the Knoxville News Sentinel, but do place circulars in the newspapers at a pretty penny for the newspaper heads to deliver to their remaining subscribers. Don't think there will be any meaningful examination of this issue, particularly since the $10 million TIF was barely mentioned.
The more things change, the more they stay the same.
Normally I would ignore the
Normally I would ignore the obvious, but your arguments might have more credibility if you could at least spell the mayor's name correctly.
And it's not "probably" the same development group. It has been widely reported that it is.
One of Pam's best.
One of Pam's best.
I'm not sure what to think
Great discussion.
One aspect of the development that has thus far been left unsaid is its proximity to the greenway. That is not only a plus, but opens the door for a variety of greenway uses requiring a "refuel" spot.
If I understand correctly,
If I understand correctly, the greenway is on the other side of the creek from this development, and there will be no bridge between the two.
I THINK that was mostly for environmental reasons, although it does seem to lessen the pedestrian friendliness of the development.
Bill, can you address?
Greenway connectivity
Rachel, I am not sure what the status of this is or if it is finalized at this point. I will have to check on this on Monday.
Regardless opinion of the position,
Knoxville citizens are lucky to have representatives willing to explain said positions.
Communities should perform due diligence, but I can't help but wonder how a community like Scott County would view this conversation.
My main concern is how this
My main concern is how this development will work with the restructuring of Cumberland, and what the plans are to avoid massive congestion.
Knoxville has always seemed to have a problem with 4 lanes narrowing to 2 too soon, and a back up quickly and easily ensues.
Other than that, as a citizen I am in favor of this plan.
I think the idea that "local retailers" could do something with this site, is wishful thinking.
Common sense would tell us that local retailers don't really have the wherewithal to make this work.
As far as Strickland's opinions go, I don't think you can associate all the problems she lists with the growth of Walmart.
Walmart by itself "ruined" small town America?
Walmart alone leaves empty store when they build new ones? No other businesses do?
Please.
Don't let ideology override common sense and what is in the best interests of the community and city.
I was not originally for this development, but I think it is the best opportunity we've had in a long time to do something productive with it.
I know it's well
I know it's well researched.
So what?
So, all small business failures are due to Walmart?
Name a small business in Knoxville, no, I'll make it easy, name two in Knox County, that have the wherewithal to develop that area.
Without getting more financial help than these developers are asking for to bring Walmart and Publix here.
There are none.
There are plenty of mom and
There are plenty of mom and pops and out of work US factory workers who regularly go to WalMart to buy its Chinese goods.
Instead of protesting and picketing outside WalMart on Nov. 6th, many in our area will go vote for the guy who helped create the problem.
Know who you’re mad at.
It's not the site or the project that is flawed
It's the City of Knoxville's preference for extending its financial support to national corporations and well healed developers who need the financial support the least.
The city yearns for sales tax revenue, for what, to plow into another development enriching national retailers and the same old local developers.
The City of Knoxville's focus is fully misplaced on national retailers, not the local guys at all. Mayor Burchette recently embarked upon a "cash mob" promotion to focus on the small local businesses in Knoxville and Knox County. No effort to direct the county's support towards Urban Outfitters, Publix, nor Wal-Mart.
The city of Knoxville should direct its financial support and priority accordingly.
Nick Dela Volpe
Nick Della Volpe weighs in on the City Council forum:
University Commons Comes A'beggin''
FLATBACKIN FOR BROCCOLI
(with a reply from Nick Pavlis)
(Had to look up "flatbackin" in the slang dictionary. It's not very flattering.)
The issues
The issues involved in redeveloping this piece of property are so site specific I'm not sure there was going to be a solution that would make everyone happy. I would not look to the stores to be record performers for their companies, but rather steady performers. I'm not a big fan of Wal-Mart but sometimes, if all you have is a hammer, then everything is a nail. You do what you can with what you've got.
if the folks in South
if the folks in South Knoxville are having to drive so far for groceries, then why don't they get somebody to build a grocery store in South Knoxville instead of on campus? That store would be within, what, I'm bad with mileage estimates, five miles of four other grocery stores--Fresh Market, Earth Fare, Kroger, Food City on Kingston Pike. And that's not counting the markets on Sutherland. And then probably within five miles north to the Fellini Kroger and the co-op.
So where they need a grocery is South Knoxville, right? I confess, I've not been out Chapman recently, but there's a Kroger and a Food City, right? And a Wal-Mart?
Alcoa Highway is really not
Alcoa Highway is really not South Knoxville proper.
Chapman Highway has Kroger. Nothing else till you get way out to the junction with John Sevier. (Food City closed some time back).
But if you live out Alcoa Highway, neither the southknox Kroger nor the Walmart are at all close to you.
Is that closed Food City
Is that closed Food City store sitting empty?
And, as we remember from the
And, as we remember from the USDA Food Desert map, Alcoa Highway is not considered a food desert. Yes, the Chapman Hwy./Maryville Pike area of South Knoxville is considered a food desert, but I don't really think this proposed Publix is to be marketed for that section of town. Besides the fact that most people in that part of South Knoxville may still find it more convenient to travel to Kroger or further out to Food City/WalMart instead of fighting the traffic or back roads to get to Cumberland, except on special occasions.
We were talking about that
We were talking about that last night. The Publix will be about 2.5 miles from Fresh Market, 2.7 miles from Kroger/Earth Fare, and about 3 miles from Food City.
The proposed Publix will be approx. 2.7 miles from Martha Washington and Lakemoor Hills, whereas the next closest grocery store is Kroger on Chapman and it is just under 4 miles from these neighborhoods. I still wonder why that Food City closed. My guess is that most of the people in that area had already started shopping elsewhere.
OK, so where they need a
OK, so where they need a grocery is Alcoa Hwy and Chapman, not on campus. Pavlis is touting the need for a grocery store because the folks out where he lives have to drive, what did he say, nine miles, does this really help?
Alcoa Highway
There was a Food city on Alcoa across from Courtsouth that closed within the last year. So yes, the Alcoa Highway area is a "food desert" unless you consider the minimal offerings at CVS.
USDA
The USDA map was strange. It went by census racts so the Vestal food desert stretched almost to the Chapman Square Krogers. It was done before the Alcoa Hwy FC closed - also I think the focus was on low income neighborhoods.
I'm not sure why the Alcoa Hwy store closed. Maybe the surrounding neighborhoods shopped at more upscale stores - could it have been the opening of Earth Fare? Maybe because you can't see it easily from the road.
3 reasons
Well, it's hard to turn left to go north when leaving that shopping center, so that is a disincentive to go there, and the chain had recently opened the Mechanicsville store with gas pumps. Also, it was an old store with its lease up for renewal, I think they said.
I can't imagine how the CVS
I can't imagine how the CVS there stays in business. It always looks deserted.
walmart
Personally, I favor the project. I think it would take some deep pockets to take the risks - not "mom and pop".
walmart has provided a real boost to the small town in MS where I grew up. They have a distribution center in addition to a huge store with selections and prices that were never available before. Also, the employees, including managers, are mostly minorities who would not have been hired by the "mom and pop" stores of my youth.
My son was a WM store manager for a while and it was interesting to hear his perspective. They will hire almost anyone (give them a chance), but it is "survival of the fittest" after that. For part-timers, according to my son, the employee cost for health insurance was under $20 a month. His biggest frustration was trying to persuade them to "buy" the insurance! They said they couldn't afford it!
And in the small town in LA where I raised children, we'd go hang out at WM for the air conditioning! And it saved a 30 min drive out of town to shop elsewhere. Believe me, the selections were so much better than the few local stores that were available before WM opened.
That said, I almost never go to WM now - anxiety, claustrophobia. I don't shop much anyway and only go to the closest Target and my old Kroger store to see old friends on senior-discount Wednesdays :)
Upsides
Let me point out that the city invested a tremendous amount of money in Market Square and elsewhere downtown which encouraged and enabled numerous local businesses in advance of the latest round of incentives to larger retailers. I would also posit that almost none of those downtown merchants have anything to fear in terms of lost business to Walmart or Publix. Apples and oranges. The city has not overlooked local entrepreneurs.
Also, I think it's quite possible that students, afforded a convenient opportunity, will be spending dollars not necessarily otherwise spent in the area due to the proximity of the development, and doing so without the benefit of motor vehicles.
Finally, folks concerned about the interplay between this development and Cumberland Avenue plans should keep in mind that the adjacent train trestle has a finite opening that already forms a bottleneck that I cannot imagine being widened.
~m.
anti-sprawl
I think the City's perspective on this matter should be independent of who the tenants are and rooted in principles of land use and planning. There is plenty to justify this $1.5M from that perspective.
For starters, the legacy pollution from Fulton Bellows is now a public burden. The responsible parties are no longer available to be invoiced, so the cost defaults to government. Getting this site capped alleviates that public burden.
Brownfield reuse also lowers public costs by avoiding new infrastructure investments necessary for greenfield development and by keeping existing infrastructure functional. Maintenance costs on compact roads and utilities are lower than maintenance on sprawling infrastructure.
Finally, looking at the particulars of the site, a retail center there will help retain connectivity between campus and Sutherland/Sequoyah, both via the Third Creek greenway and surface roads. This is especially important given the demolition of so much university housing along Sutherland in recent years. That area needs nurturing so local, mom-n-pop stores like Holy Land, Dead End BBQ, Oriental Supermarket, Savelli's, River Sports and more can retain traffic.
Given all that, a $1.5M investment in roads and foot/bike paths seems a fair price.
Rikki's Post
Spot on, and better than I could have said it.
There are issues galore. My oldest son was on the team that did the surveying of all the tunnels on the Fulton Bellow's site. And there were lots of tunnels.
Reusing old industrial property for new uses is good urban planning.
Between a re-do of Cumberland that will be more pedestrian friendly, this development, the new student ball fields put in on Sutherland and the use they will generate of the Third Creek Greenway this entire area can get a lot more friendly to those on foot or bike, and offer lots of stuff as well.
Infrastructure
My only concern on that front is that the Third Creek Greenway may require an upgrade to accommodate the additional traffic (and I'm only half kidding).
~m.
Source of the thread
Going back to the original linked article, the problem appears to be the writer's issues with Walmart, the developers and who their "buddy" is.
If there are holes in Mr. Lyon's revenue/tax points or Rikki's environmental points, there may be cause for concern.
Seems if this were being done by different developers, with different friends and Target instead of Walmart, there would have been no need for the piece.
Yes, this thread is basically
Yes, this thread is basically 3 threads mixed up together:
1) Is a project of this scope suitable at the Fulton Bellows site and should the City invest in it?
2) Food deserts and grocery stores in south Knoxville
3) Walmart
I realize there is overlap, but it would probably be helpful to address each one separately.
Agreed
I think the first two have been pretty well established. Rogero ran promoting a ‘livable” downtown area, including walking and bike paths. Currently, those living on campus and in the Fort don’t have realistic walking and biking options for groceries and goods.
As for Walmart, people who do about an hour of research can come up with plenty of reasons why it’s bad for America.
As for commercial developers, they salivate over having an anchor tenant like Walmart.
We shouldn’t blame the developers for “people” not doing enough research. Too busy shopping I guess.
took less than a minute
"As for Walmart, people who do about an hour of research can come up with plenty of reasons why it’s bad for America."
(link...)
"WASHINGTON, D.C., May 12, 2010 – Walmart and the Walmart Foundation announced a $2 billion cash and in-kind commitment today, stepping up efforts to help end hunger in America. The new five-year initiative, “Fighting Hunger Together,” includes four key components:
Downloadable Resources
Meals by State
Meal Donation Map
Press Event B-roll (529mb)
Press Event Soundbites (346mb)
Eduardo Castro-Wright Remarks (67mb)"
Take another minute
The Rockefeller family has been very charitable to America.
Do you want to argue America's oil addiction is good for America?
I say thanks to Walmart for the charity and thanks for making the lowest common denominator the standard in products and shopping.
"Do you want to argue
"Do you want to argue America's oil addiction is good for America?"
Oil addiction, as you call it, or the availability and productive use of it?
Yes, I think the availabilty and use of it has been quite good for America.
But of course, since I've been transported to the hospital with life threatening conditions in a fossil fuel burning ambulance more than a few times, I guess I'm just greedy and selfish.
Not my words
Thanks for setting me straight, twas W what had me confused: (link...)
I'm glad both R's and D's have spent years subsidizing oil. The real price would probably send me to the hospital as well.
But I am open for your correction on Walmart beyond charity.
How has it improved American manufacturing for the working class and overall economy? How has it improved quality of products? How has it improved the progress of livable wages? How has it improved vender relations with retailers? How has it improved sexism and racisim in the workplace? How has improved the quality of the food we purchase?
As for their $2 billion, they should give it to their 1.4 million employees so they can afford their insurance.
.
.
hall monitor
"I realize there is overlap, but it would probably be helpful to address each one separately."
Why do you always tell grown adults how they should discuss a subject?
Why do you always tell grown
Why do you always tell grown adults how they should discuss a subject?
Are you a grown adult? You sound more like a bratty kid.
About the greenway
About the greenway connection: Bill Lyons tells me I was correct; there will be no bridge directly from the development to the greenway. Greenway users will need to go to Joe Johnson Drive, and enter the development from there.
Thanks to Bill for getting back to me.
Walton bridge
This is the part of the thread where the really smart Walmart PR person jumps in and announces that one of the Walton scions wishes to donate $250k to Knoxville to fund a small bridge across the creek, a foot/bike path to the shopping center, some racks and a commemorative plaque.
btw, I will shop at the Fulton Bellows Walmart as often as I shop at every other Walmart: never. Also, I'd like to remind fellow residents of the Alcoa Hwy food desert that the Mechanicsville Food City is pretty convenient and well stocked. I believe Food City closed both the Alcoa Hwy and Woodlawn/Chapman stores because the spaces were too small to accommodate the full grocer/butcher/baker approach the chain has moved toward.
Food City had moved into that
Food City had moved into that beautiful Bi-Lo location (opposite Kroger) which had plenty of room for everything. The SoKnox/Chapman area apparently couldn't support two large groceries, and Kroger won.
Cumberland?
Will the crosswalk at Cumberland and Tyson park go away? I may be getting lost in the development plans here.
I would expect it to not only
I would expect it to not only stay, but be improved. But I'm guessing.
It would appear
It would appear that unless pedestrian and bicycle traffic were deliberately discouraged their access will be reasonable. I can live with that.
OT, but...
Burning less fossil fuel is a path toward needing fewer hospitals.
What is the "productive use" of oil and who gets to decide that? (Besides the fossil fuel industry with major help from politicians to whom they've "spread the wealth around"?)
If you're going to go knee-jerk political, you're going to get called on it.
"Burning less fossil fuel is
"Burning less fossil fuel is a path toward needing fewer hospitals."
Knee jerk?
What about that unsourced claim/opinion above?
About the greenway
That seems unfortunate.
~m.
Hey, you can't think of
Hey, you can't think of everything. And you wouldn't want to put too much of a financial burden on Walmart et al. Reminds me of the botched termination of Hall of Fame Drive as it intersects Broadway. It was simply outside the scope of the project ...
I agree it's unfortunate, but
I agree it's unfortunate, but there WERE reasons for this. I don't remember what I was told because it was some months ago. Maybe Bill can explain.
Greenway and Pedestrian Connectivity
"I agree it's unfortunate, but there WERE reasons for this. I don't remember what I was told because it was some months ago. Maybe Bill can explain."
The plan from the beginning was for connectivity from the development south to the city greenway system via bike lane and sidewalks on the new bridge that will connect to Joe Johnson. There are currently bikeways and sidewalks on Joe Johnson that connect to the city greenway system.
On the North end the sidewalk on Cumberland will be improved. Therefore there will be improved pedestrian and bicycle connectivity from Tyson Park to University Commons and as well as from Fort Sanders.
Greenway connection
If there are going to be upgrades (even as simple as putting in a crosswalk button and some new paint at the crosswalk) the pedestrian access should be excellent. Many of the Robert-Shaw employees parked on the Tyson park side of Kingston Pike. They always seemed to manage to make it to work. In fact, with access at both ends of the project, it seems to me that the pedestrian and greenway plan has been well thought out and should work nicely.
It the event that something obvious turns up after the project is completed, one would suspect the fix would be low cost.
The real business advantage of a pedestrian bridge would seem to be access to Fulton Bottoms field as opposed to the greenway.
TN women file new
TN women file new class-action sex discrimination suit against Walmart
Maybe the $1.5 million
Maybe the $1.5 million request should be tied to a favorable resolution of this case. What other tools does the public have in fighting this kind of discrimination? The fact that there is a developer between the city and Walmart doesn't mitigate Walmart's predatory employment practices ...
Connectivity
Looking down on a map, I'm sure that connectivity route to the greenway system makes sense. But it doesn't really address the terrain. Coming and going from downtown on the greenway along the river, it inserts an unnecessary climb to get to the bridge and back down going both directions. Perhaps another more direct connection can be considered in the future. It would seem the more connectivity the better.
~m.
Connectivity
I'm not sure which bridge you are referring to. My experience on the north side of the river is that connectivity with campus, downtown,Sutherland/Homberg, Westtown/Downtown west and Cedar Bluff is pretty good through the downtown Cedar Bluff greenway system.
I tend to like this new development because it provides a reasonable option for a break at Tyson Park.
I do enjoy others ideas and tips on how to use the greenway. I really wish there was some sort of interactive map where we could outline both problems and solutions we've had with the greenway system (without, of course, giving up our favorite shortcuts and good buddy passages ;) ).
He's talking about the bridge
He's talking about the bridge on Joe Johnson Drive, along with the new one that will connect that to the development.
More OT, but too good to pass up
Speaking of health threats and hospitals, I can't remember the exact words nor can I find it on the internets, but I do recall Jesse Helms referring to his defense of the tobacco industry saying something like "We have the tobacco companies to thank for building our hospitals!"