Congressman Bernie Sanders has called Wal-Mart the largest welfare beneficiary in America. Not only is its workforce heavily subsidized by the U.S. taxpayer, for benefits like food stamps, Medicaid, and the earned income tax credit, but Wal-Mart and its developers frequently seek site development subsidies to reduce the cost of opening new stores. Local officials often provide millions in tax incentives to these large retailers—despite the fact that Wal-Mart can pay its own way for site infrastructure.
A proposed 150,000 s.f. Wal-Mart in West Louisville, Kentucky is this week’s welfare bonus for the Wal-Mart corporation.
According to WDRB, city officials have agreed to pay $1.8 million to the developer, plus $500,000 in a city grant directly to Wal-Mart. The $1.8 million will allow the developer to buy six lots abutting the store’s main 17 acre parcel–and if the cost of the acquisition is less than $1.8 million, the developer gets to pocket the difference. That’s a pretty generous offer, considering the assessed value of the six parcels is only $268,000.
West Louisville already has two Wal-Marts in Owensboro, Kentucky, one of them a superstore, within 12 miles.
The developer bought the main site eight years ago for $1. It was once a Philip Morris manufacturing plant which the developers demolished. A spokesman for the developer told WDRB that the $1.8 million was payment towards the’holistic development,” suggesting that the owners could use the money for anything they want. If for any reason the Wal-Mart is not built, the developers have to give the money back.
One city official was quoted by WDRB as explaining, “If they spend less than that ($1.8 million), then that’s just money for them because they have spent a lot of money there over the years clearing the land, etc.” Such costs used to be a normal expenses of doing business, but now developers have their hand out for public welfare.
The developer has a contract to sell the property to Wal-Mart, but neither the developer nor Wal-Mart would reveal the content of that agreement.
On March 24th, Louisville Mayor Greg Fischer announced the Wal-Mart deal, and claimed it would bring in “hundreds of new jobs and much-needed new retail to West Louisville.
Bringing hundreds of new jobs and much-needed new retail to West Louisville, Mayor Greg Fischer announced today that Walmart will build a Supercenter at 18th and Broadway. “Just as important,” the Mayor said, ” this project sends a signal that West Louisville is indeed open for business.” At $2.8 million, this was an expensive signal to send. “From the first moments after I announced I was running for Mayor until as late as yesterday, people have stopped me to stress the need for new business, new jobs and new retail for Western Louisville. My team is proud that we can deliver.”
The city gave the developer $1.1 million last year, but the remaining $700,000 has not been granted. Wal-Mart’s Separate $500,000 will be apportioned out $100,000 over 5 years, as long as Wal-Mart creates at least 225 ‘new’ jobs. The city will not be counting the jobs lost as other businesses in West Louisville close.
Readers are urged to email Mayor Gary Fischer at http://www.louisvilleky.gov/Mayor/contactusmayor.htm with the following message:
“Dear Mayor Fischer,
You have called the $2.3 million welfare deal with Wal-Mart and its developer “an excellent return on investment” by the city. But was any tax investment really necessary?.Do you believe that the landowners and Wal-Mart were financially unable to swing this deal on their own, and needed propping up by local taxpayers?
If the largest retail corporation in the world needs a subsidy, what do you say to your small business community, especially the stores that will close when a superstore opens? Have you attempted to calculate the loss of jobs that will occur within two years of this grand opening?
West Louisville will be fortunate to see any net new job growth. You still have over $700,000 not yet given to the developers.Why don’t you keep that money and invest it in your police and fire departments, to help pay for the added public safety costs your community will face? Or put it in your schools. Tell the Walton billionaires to pay their own way for their stores, and not seek public welfare.”
On March 24th, Louisville Mayor Greg Fischer announced the Wal-Mart deal, and claimed it would bring in “hundreds of new jobs and much-needed new retail to West Louisville.
Bringing hundreds of new jobs and much-needed new retail to West Louisville, Mayor Greg Fischer announced today that Wal-Nart will build a Supercenter at 18th and Broadway. “Just as important,” the Mayor said, ” this project sends a signal that West Louisville is indeed open for business.” At $2.8 million, this was an expensive signal to send.
“From the first moments after I announced I was running for Mayor until as late as yesterday, people have stopped me to stress the need for new business, new jobs and new retail for Western Louisville. My team is proud that we can deliver.”
The city gave the developer $1.1 million last year, but the remaining $700,000 has not been granted. Wal-Mart’s separate $500,000 will be apportioned out $100,000 over 5 years, as long as Wal-Mart creates at least 225 ‘new’ jobs. The city will not be counting the jobs lost as other businesses in West Louisville close.
Readers are urged to email Mayor Gary Fischer at http://www.louisvilleky.gov/Mayor/contactusmayor.htm with the following message:
“Dear Mayor Fischer,
You have called the $2.3 million welfare deal with Wal-Mart and its developer “an excellent return on investment” by the city. But was any tax investment really necessary? Do you believe that the landowners and Wal-Mart were financially unable to swing this deal on their own, and needed propping up by local taxpayers?
If the largest retail corporation in the world needs a subsidy, what do you say to your small business community, especially the stores that will close when a superstore opens?
Have you attempted to calculate the loss of jobs that will occur within two years of this grand opening? West Louisville will be fortunate to see any net new job growth.
You still have over $700,000 not yet given to the developers.Why don’t you keep that money and invest it in your police and fire departments, to help pay for the added public safety costs your community will face? Or put it in your schools. Tell the Walton billionaires to pay their own way for their stores, and not seek public welfare.”
Congressman Bernie Sanders has called Wal-Mart the largest welfare beneficiary in America. Not only is its workforce heavily subsidized by the U.S. taxpayer, for benefits like food stamps, Medicaid, and the earned income tax credit, but Wal-Mart and its developers frequently seek site development subsidies to reduce the cost of opening new stores. Local officials often provide millions in tax incentives to these large retailers—despite the fact that Wal-Mart can pay its own way for site infrastructure.
