Wal-Mart Stores paid the city $2.1 million this week, further
paving the way for Northern California’s first Wal-Mart Supercenter
to make its debut in Gilroy.
Wal-Mart Stores paid the city $2.1 million this week, further paving the way for Northern California’s first Wal-Mart Supercenter to make its debut in Gilroy.
The check covers all of Wal-Mart’s building, development and impact fees, said Community Development Director John Greenhut. It is the single largest permit issued by the city’s building division that Greenhut and his staff are aware of, he said.
Wal-Mart is receiving no economic help from the city because it moved from one location in Gilroy to another location in Gilroy, thus disqualifying it from receiving city-issued economic incentives.
Construction of the new, 220,000-square-foot store has not yet begun. Wal-Mart spokesman Eric Berger said no specific date for construction has been set, but the company hopes it will happen soon. Building the entire Supercenter will take about 10 months, he said.
Bill Lindsteadt, executive director of Gilroy’s Economic Development Corp. said construction is “full-speed ahead” once it begins, and he’s eager to see the new store open. Lindsteadt estimated the Supercenter will bring about $600,000 in annual sales tax to the city, which is about $120,000 more per year than the current 67,200-square-foot Wal-Mart.
The new store is planned to go in at Pacheco Pass Center, a shopping complex on Camino Arroyo near the intersection of highways 101 and 152, and it will include a full supermarket in addition to the current Wal-Mart’s assortment of goods.
The Supercenter will employee 500 people, 250 of which will come from the current Wal-Mart, Lindsteadt said.
“People complain the jobs are low-paying, but every job is important,” he said. “It’s however people want to apply themselves.”
Lindsteadt also praised the company’s pattern of promoting from within and providing health benefits for its full-time employees, which make up 85 percent of the store’s workforce, he said.
Additionally, the new Wal-Mart will help the community at large, as it will give low-income families a place to buy food, clothing and other goods at an affordable price, he said.
After sifting through an abundance of economic, environmental and ethical arguments, the city council approved the Supercenter with a 5-2 vote in March.
But anti-Wal-Mart activists said the council overlooked environmental studies that showed the store will generate enough traffic to add to the area’s already unhealthy air quality levels.
Opponents also claimed the council made its decision without full knowledge of the store’s economic impact. Three economic studies had been conducted: One was 12 years old and did not take the Supercenter into account, another favorable study was paid for by Wal-Mart, and a third, less favorable study, was paid for by union interests.
In May, union workers disgruntled over the store’s arrival filed a lawsuit against the city, Wal-Mart Stores and the Newman Development Group, which is the company developing the retail complex that will include the Supercenter.
Acting City Attorney Andy Faber said the litigation is ongoing, and a trial date of Nov. 12 has been set by the Santa Clara County Superior Court.
Katie Niekerk is a staff writer. Reach her at 408-847-7097 or
kn******@gi************.com
.
