Category: Chicago

The truth about Wal-Mart’s contribution to the tax roll

July 15, 2010 / / 18 Comments

I recently wrote about how Wal-Mart plans to expand its reach in Chicago in a big way (30 new stores big). Politicians around the country consistently like to be heard saying how one way the store(s) will benefit the city is the additional tax revenue the city will see from property and sales tax contributions. Here are selected quotes from Chicagoans:

On Tuesday, [Chicago Mayor] Daley noted that a Wal-Mart expansion would pave the way for sales tax windfall for the cash-starved city budget.

In suburban Cook County, about 20 percent to 30 percent of all sales tax revenue comes from Wal-Marts, Daley said.

Chicago Sun-Times, June 15, 2010

“Everyone realizes we need the tax revenue,” [Alderman Anthony] Beale [9th Ward] said.

Chicago Sun-Times, May 5, 2010

Ald. Richard Mell, 33rd, a pro-union alderman, lamented Wal-Mart’s domination of the nation’s retail market and its tendency to sell foreign-made products, but voted for Pullman Park because of the need for jobs and additional tax revenue.

Chicago Tribune, June 30, 2010

Comparatively, Wal-Mart brings in little property tax revenue on a per acre basis, according to a study from Sarasota County (Florida) and Public Interest Projects and posted by Citiwire. I’ve summarized their findings:

  • Single-family home: $8,200 per acre
  • Wal-Mart and Sam’s Club: $150.00-$200.00 per acre
  • Southgate Mall: $22,000 per acre
  • High-rise mixed-use project in downtown Sarasota: $800,000

That last one’s the kicker! From the Citiwire article, “‘It takes a lot of WalMarts to equal the contribution of that one mixed-use building,’ [Peter] Katz noted.” Read the full story for more examples and for more discussion on how this specific breakdown of costs and benefits is only one way to look at fiscal and retail impact.

If the same tax revenues were true for Chicago or Cook County (and I can’t say it is or isn’t), then the city planners and aldermen should be seeking developers to build high-rise mixed-use projects. Right.

But the issue Chicago and other cities have is that Wal-Mart is one of the most willing developers – they will build where no one else will. They have capital that no one else has. They have the resources to sway the population. It’s more politically difficult to resist such a willing partner like Wal-Mart than it is to seek relationships with developers who have the resources to create more beneficial mixed-use projects in the neighborhoods Wal-Mart seems to prefer.

“Unavailable” bike parking because of Transformers filming

July 9, 2010 / / 0 Comments

I have more photos of Transformers 3 filming in Chicago.

You’ve probably seen “No Parking – Parade Route – Police Order” signs directed at motorists.

But check out this sign: It informs bicyclists that because of filming on this block, their bike could get in the way and would be removed. So everyone should be gone by 6 PM on Friday.

Michael Bay’s Transformers 3 started filming in Chicago two weeks ago. Additional filming will take place this weekend on part of LaSalle Street. The Chicago Film Office put up these signs (with CDOT’s cooperation) to alert bike riders that they should not leave their bikes here over the weekend. When robots run around, things get messy!

Wal-Mart moves in, in a big way

July 4, 2010 / / 0 Comments

Every Chicagoan should know by now that Wal-Mart, who currently only has a single store in the city limits, plans to open about thirty new stores (the City Council approved the construction of a Supercenter in the Pullman community area on the far south side*). Wal-Mart announced they want to open “dozens of new stores” in the next five years in various sizes ranging from 8,000 square feet (think Walgreens) to 20,000 square feet (think Apple Store Michigan Avenue) to the typical 200,000 square feet Supercenter.

This is big news for Chicagoans, and residents of New York City (there are no Wal-Marts in NYC). Not only will they be able to buy Coca-Cola for 20 cents a can, they won’t be able to shop at existing stores – because many of them will close. For now, the Chicago Tribune is keeping tabs on the developing story.

People in Chicago protest a new Wal-Mart. Disclaimer: This photo is from 2005, before the first Chicago Wal-Mart opened in 2006. However, in 2010, prior to the City Council vote, there were rallies protesting and showing support for new Wal-Mart stores. Photo by Andrey Smagin.

While they report on the recorded impacts of incoming Wal-Mart stores on new markets, I hope they answer the questions surrounding the confusion over the alleged negotiations between Wal-Mart executives and Chicago labor unions (representing construction and service employees). The unions say they got Wal-Mart to agree to a minimum wage of $8.75 while Wal-Mart says it’s just a matter of internal policy to adjust wages for the market.

Wal-Mart has funded a possibly influential campaign to get Chicagoans to support their new proposed new stores. Part of the campaign included ads on buses and putting signs and t-shirts on youths in the street, saying “Jobs or else.” If you want a Wal-Mart in Chicago, the company urges you to contact your alderman. Photo by Ira of Being Totally Sweet in Chicago.

So what are those impacts?

Wal-Mart can afford to be bold, and its impact is readily seen. Median sales decrease 40 percent at similar high-volume stores when a Wal-Mart enters the market, 17 percent at supermarkets and about 6 percent at drugstores, according to a study published in June 2009 by researchers at multiple universities and led by the Tuck School of Business at Dartmouth College in Hanover, N.H.

Drugstores like Deerfield-based [Illinois] Walgreens are the least impacted, according to the study, and are generally able to stay afloat by increasing their assortment size.

Supermarkets, the study found, can survive by doing their best to differentiate themselves from Wal-Mart, rather than attempting to compete.

Ideas about marketing and additional discussion of impacts is written on page two of the article. This light investigation from the Tribune comes after a recently released study from the University of Illinois at Chicago (my alma mater). Here’s the synopsis from that study about the sole Chicago Wal-Mart in the Austin (west side) neighborhood:

The study found that stores near Wal-Mart were more likely to go out of business, eliminating the equivalent of about 300 full-time jobs — about as many as Wal-Mart initially added to the area.

Read the full press release on the UIC News site or download the study (PDF).

*UPDATE: Where is the Pullman community area? It’s northwest of Lake Calumet and home to the former Pullman Palace Car Company’s factory and company town (see detailed street map of the Pullman community area). There are four commuter rail stations on the Metra Electric line within walking distance of the new shopping center. The development, called Pullman Park, will be located at 111th Street and the Bishop Ford Expressway (I-94). It includes shopping, a school, and housing, among other uses. The CTA #111/111th Street bus will run near Pullman Park.

Chicago cycling cliques

June 24, 2010 / / 0 Comments

As part of what seems to be New City’s week of articles about all things bike in Chicago, John Alex Colón, wants to take you back to high school. The high school lunchroom specifically.

Who exudes more “cool” in this photo?

In “Even cycling has its ‘Mean Girls’,” he equates bike riding attitudes in Chicago to those of cliques, seating preferences, and what you had on your tray.

Always more important than mid-day nourishment was the decision to align yourself with a certain slice of the stratified, trajectory-defining social construct of the lunchroom. Similarly, with whom you choose to cycle and where you choose to cycle matters more in Chicago than that Salisbury steak you’re riding.

I understand John’s point of view, and I think I’ve witnessed such stratification in action, but I believe the people who engage in the uncultivating behavior of arbitrarily classifying other bike riders are few and far between. Go to a Critical Mass ride in the summer and you’ll meet people who wouldn’t think once about judging others on their choice in helmet wearing, or style and function of their bicycle. You’ll meet people who showed up because they heard 2,000 other people will, too, and they get to ride a bike.

Ride because you wanna ride!

Whatever the truth about biking in-crowds may be (or its prevalence), John and I both agree about how to deal with it: “My advice is to enjoy your ride no matter how you practice it, because you are part of it. Regardless of what you eat or what you ride, cycling culture exists because of your pedal power.”

Randy Neufeld’s 10 ideas for bicycling in Chicago

June 22, 2010 / / 0 Comments

UPDATE: Download the presentation as a PowerPoint or PDF.

This past weekend, David Byrne visited Chicago to speak alongside Luann Hamilton, Jacky Grimshaw, and Randy Neufeld. Randy Neufeld served as the Executive Director of the Chicagoland Bicycle Federation, now the Active Transportation Alliance. He is now a board member of Active Trans and the director of the SRAM Cycling Fund.

At the “Cities, Bicycles and the Future of Getting Around: A Special Urban Sustainability Forum with David Byrne,” Randy gives Chicago 10 ideas to make bicycling great. What follows is my paraphrasing of the presentation.

“We need to make the streets more inviting to a broader spectrum.” 8 and 80. The criteria for urban cycling infrastructure should be whether it is suitable for 8 year olds and 80 year olds.

10 Ideas for Bicycling in Chicago from Steven Vance on Vimeo.

  1. Open Streets – “What if Bike The Drive were every weekend?”
  2. Slow Down – 30KPH (under 18 MPH) zone.
  3. Cycle Tracks – The basic bike lane has been widened, parked cars moved to the left, and a buffer has been painted.
  4. Bike Boulevards – Lightly traveleed streets without bike lanes to make it easier to take the side streets across town.
  5. Bike Parking – Chicago is the best with on-street bike racks. Need covered off-street bike parking. Bike parking starts at home. “There’s free public auto parking on the street in front of my house, why not free public bike parking on the street in front of my house?”
  6. New Public Space – Follow New York City’s example. Build a Parklet like in San Francisco.
  7. Wayfinding – Not impressed with Google Maps’ bicycling directions. Active Transportation Alliance Chicagoland Bike Map.
  8. Better Bikes – “In Chicago, one could live without a suspension fork, and fewer than 21 gears. For $370, you’re going to wish they included lights, fenders, a kickstand, and a rack to carry your beach bag. In civilized places, bikes come fully equipped.
  9. Public Bikes – “Maybe you don’t need your own bike.”
  10. Get Going! – Take action, get involved. Take something you’ve seen today and make it happen. Put fenders and a basket on your own bike, and go shopping! [I’m not sure if number 10 is an idea but really the conclusion to encourage people to further inspect ideas 1 through 9.]

Randy used, with my permission, several photos from my Flickr photostream. You can see those again now – perhaps you’ll want to use them in your presentation about bicycling and Chicago!