Sunday, May 27, 2007Pay off big-box developersNew River ForumOn Tuesday, the Blacksburg Town Council will vote on Ordinance 1450, which would allow developers to build stores over 80,000 square feet when, and only when, they apply for and receive a special-use permit. The council's vote in favor of Ordinance 1450 would communicate to the developers possibly planning to build a Wal-Mart Supercenter next to Margaret Beeks Elementary School that residents deserve a say regarding the appropriate placement and design of big-box retail establishments. Opponents of the ordinance claim the proposed South Main development will bring much-needed revenue to the town. Yet contrary to common lore -- and public statements made by town staff -- multiple studies demonstrate that big-box retail stores drain rather than boost revenue. In fact, it would cost approximately $82,302 or more per year to host a Supercenter on the rugby field. Research conducted in Ohio between 1997 and 2003 found that in seven of eight communities studied, retail development required more in public services, such as road maintenance and police enforcement, than it generated in tax revenue. On average, retail buildings produced a net annual loss of 44 cents per square foot. Fairmount's site plan lists Building H at 187,050 square feet, for a total $82,302. A 2002 study of Barnstable, Mass., found that big-box retail generates a net annual deficit of 46.8 cents per square foot. By this study's estimation, it would cost $87,539 per year to host a Supercenter. In 1994, the state of Vermont found that for every dollar in tax benefit created by a Wal-Mart store, there would be $2.50 in tax losses and public costs. A second common misperception is that Blacksburg loses sales tax revenue to nearby municipalities. In reality, sales tax revenue goes to the state, which then returns a portion of that revenue to the county in which the sale occurred. Of those funds, the county keeps half and distributes the other half to localities based upon the number of children in that locality. In other words, even if Blacksburg hosts a Wal-Mart, Christiansburg will receive a greater share of the store's sales tax revenue because more children live there. Meal taxes, business licensing fees, and real estate taxes generated by the development would come directly to the town. As the above studies show, however, revenue from these sources do not offset the losses incurred by hosting a big-box store. So big-box retail will cost more in public resources than it will contribute. Maybe that's OK. For many of us, our quality of life is at least as important as the bottom line. I value access to certain goods and services and the ability to walk rather than rely on fossil fuels to travel to a store. Here's where Ordinance 1450 comes in. It would permit public scrutiny of all big-box retail development, and would allow us to welcome those big-box stores that we freely choose to subsidize. Subsidizing a Supercenter next to the Beeks' playground is inappropriate because of the store's unusually high rates of crime and traffic congestion -- 10,000 cars per weekday, with their attendant exhaust fumes. Here I find it necessary to clarify that residents of southwest Blacksburg -- unlike some of those involved -- believe that Beeks should remain exactly where it is in the heart of our neighborhood. If it costs $82,302 or more per year to host a Wal-Mart, I would like to ask the town council to spend that money differently. I'd prefer that the council offer the developers tax incentives amounting to one-half of a Wal-Mart's cost to us ($41,651 per year) on the condition that the developers build their original concept plan, which did not include a big-box store. I'd prefer to see the council spend three years' worth of hosting a Wal-Mart ($246,906) in litigation to prevent Wal-Mart from locating next to Beeks. I'd prefer the council pay Jeanne Stosser and Georgia Ann Snyder-Falkinham of Llamas Inc., five years' worth of hosting a Wal-Mart ($411,510) to purchase the property next to Beeks for a public park and memorial to the victims of the April 16 Virginia Tech shootings. Any of these scenarios would put us way ahead in the long run, both financially and in terms of our quality of life. We ought to reserve the right to decide when the price of big-box retail development is worth paying -- and when it is not. Please e-mail towncouncil@blacksburg.gov and attend the public hearing and council vote Tuesday at 7:30 p.m in the Municipal Building. Ask our representatives to vote yes on the Ordinance 1450 and to exercise responsible oversight regarding when, where and how big-box retail develops in Blacksburg. Emily Satterwhite is a resident of Southgate Drive in the Miller-Southside neighborhood of Blacksburg. |
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