Steven Restivo, left, director of community affairs for Walmart, and Gyata Kimmons, senior manager of governmental affairs for Walmart, told the Defender that the Benton, Ark.-based retail giant wants to build more stores in the city of Chicago.
Residents in the business-starved and food- deserted Pullman community on the Far South Side may get a huge development along the Bishop Ford Expressway, complete with two big box retailers, a hotel, a school and new affordable homes, among other things, if all goes well in City Council next month.
But, there’s one caveat, according to the area’s Alderman Anthony Beale (9th): Walmart.
The Benton, Arkansas-based discount retail giant has struggled to get more stores in Chicago after opening the city’s first Walmart on the West Side in 2006. The proposed “big box” ordinance a year later halted its efforts.
The union-backed measure required all businesses with more than $1 billion in annual sales and stores with more than 90,000-square-feet to pay a minimum wage of at least $11 per hour, $13 per hour with benefits.
The council passed the ordinance. Mayor Richard M. Daley vetoed it.
But Beale and Walmart are looking for a different outcome this time around.
Beale, who said the development’s site, the former Ryerson Inc. steel plant, along with the adjacent land along the expressway is a “gold mine,” also courted other big retailers – including Costco, Dominick’s, Ikea, Jewel and Target – to anchor the development, but they all declined.
Walmart was the only large retailer to step up to the plate, he said.
“They all turned their backs on us. I didn’t want this fight, but Walmart was the only one willing to come.
This development does not take place if Walmart doesn’t anchor the site. This development hinges on Walmart,” Beale told the Defender about the proposed five-phase Pullman Park development. U.S. Bank’s non-profit community development group, Park National Initiatives, already put up $50 million to get the Pullman Park project off the ground.
The first phase of the project – expected to provide 780 construction jobs – is the building of Walmart and another big box, preferably a home improvement store. There may be a few smaller retailers added. The second phase will focus on 111th Street right off the expressway. Beale is aiming for a mid-sized hotel – one part of a chain – and a seniors facility.
Phase Three will entail a 170,000-square-foot community center with an emphasis on several sports and a school, which Beale said has been undetermined as to whether it would be a charter or traditional public school. The fourth phase would be the construction of 400 residential units, and the final phase will include retail along Doty Road.
A Walmart Supercenter would provide much needed jobs to his constituents and address the food desert issue that’s prevalent in several predominantly Black communities, the Far South Side alderman said.
Beale said he understands the union’s position, but needs for them to understand his argument and what his community is up against.
Pullman Park would keep residents from traveling outside the city to shop and provide many jobs for its residents, he said.
“The wages are comparable so what’s holding us back? Who can turn their backs on jobs in this economy?” asked Beale.
The national average hourly wage for Walmart employees is $11.30 per hour. The West Side store pays an average hourly wage of $11.77 for full-time workers, according to Steven Restivo, director of community affairs for the store’s northeast region.
“It’s no secret we want to build more stores here. On the South Side, there’s a true need for Walmart,” said Restivo.
Ald. Sandi Jackson (7th) concurred with Beale and Restivo.
“Poor communities that lack retail and industry are unable to employ its citizens and are unable to generate a tax base which also has a direct impact on public education and human services. Additionally, many urban areas are food deserts which also impact public health. During these tough economic times when so many of my constituents are out of work, I can only see value in any development that would provide employment opportunities to underserved communities,” said Jackson.
Unions, along with community organizations, such as Good Jobs Chicago, and other aldermen claim Walmart doesn’t pay a livable wage.
The Rev. Booker Vance of St. Stephens Lutheran Church, who is also the chair of Good Jobs Chicago, said the coalition isn’t “anti-Walmart,” they’ll welcome them with open arms in any Chicago community as long as they show responsibility to their employees.
“We’d love for them to come, but not without living wages, adequate health benefits and the right for the workers to organize, especially with the revenue base Walmart has. We want a legally binding agreement that it will happen,” said Vance.
Alds. Pat Dowell (3rd), Toni Preckwinkle (4th) and Ed Smith (28th) said Walmart’s past practices and alleged low wages continue to be a concern.
“I told him (Beale) I wouldn’t support it. The problem is not the transformation, it’s about the anchor tenant. My concerns abut Walmart still stand. It is a company which has numerous civil rights suits (gender and race based) against the store,” said Preckwinkle.
The Supreme Court recently ruled the retail giant will face a large class action suit in San Francisco alleging gender discrimination over pay for six female workers.
Dowell said she’ll continue to discuss the pros and cons of Walmart with her constituents, and will continue to “hold out for real community benefits for the African American community beyond the jobs they will provide.” When the matter is actually on the table, Smith said he’ll consider it. However, a “yes or not vote for a Walmart in Chatham may not mean the same vote for a Walmart in Pullman or any other community. There are different circumstances for each that will generate different support,” said the West Side alderman, adding his concerns about Walmart’s wages remain the same.
“They need to step up to the plate and pay these people to work. They bring in too many part-timers so they don’t have to pay the full-time wage. The biggest retailer in the world refuses to pay up. The amount of money the CEO of Walmart makes, and they have people work for peanuts, it’s ridiculous,” said Smith.
Ald. Freddrenna Lyle (6th) has been a staunch opponent of Walmart building more stores in Chicago and recently introduced a revised “big box” ordinance calling for big retailers who receive more than $250,000 in government subsidies, including Tax Increment Financing, to pay a living wage of at least $11.03 per hour. Eighteen aldermen, including Lyle, co-sponsored the ordinance, she said.
“The theory is if they’re receiving benefits from the city, the least they should do is pay those people that are employed in the city a living wage,” said Lyle, adding that neither Beale, Brookins nor Cochran was approached about signing the ordinance since all three are actively courting Walmart for their wards. Restivo said there shouldn’t be a gripe about Walmart’s wages.
“Unions want us to pay $11.03 per hour. We’re doing that already,” he said. Restivo declined to give the average hourly wage for part-time workers, those who work fewer than 34 hours per week.
He added that a half-billion dollars is leaving Chicago going to suburbs with a Walmart, and about 2,400 of Chicago residents are employed in Walmarts outside the city.
Walmart is eyeing several sites within the city it would like build on, including Chatham, Pullman, Englewood and in the 12th Ward, he said.
Ald. Howard Brookins (21st) has been in a six-year battle with the council to get a Walmart on 83rd Street and Stewart Avenue, but failed to get the backing from fellow aldermen. The site is now in jeopardy of foreclosure and the matter is currently held up in Ald. Edward Burke’s (14th) Finance committee. It’s at Burke’s discretion to put the matter back on the table, according to Brookins.
Beale said since his development doesn’t have to worry about TIF funds at the moment and it’s primarily a zoning issue at this stage, the development doesn’t have to go before Burke.
Repeated Defender calls to to Burke have not been answered.
Ald. Willie Cochran (20th) confirmed he’d like a Walmart in his ward in the 6200 block of South State Street, and supports Walmart’s interest in Chatham and Pullman.
“When it comes to good product and jobs, we’re looking to the best responder we can get. My intention is to get the 20th Ward what they need. If Walmart comes up first, we’ll do it,” said Cochran, adding the more Walmarts in the city could do nothing but “help reduce the unemployment rate, reduce travel costs and increase convenience and opportunities for the future.”
The proposed Pullman Park development is expected to go before a special zoning committee meeting May 7. The next step, Beale said, would be the City Council meeting on May 12.
Outside of the Walmart on the West Side, the stores nearest Chicago are in Bedford Park, Crestwood, Evergreen Park and Lansing.
Copyright 2010 Chicago Defender.
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