GILROY
– Just days after it was launched with a rally at City Hall, a
referendum attempt aimed at a shopping center with a controversial
new Super Wal-Mart store is apparently no more.
The Committee for Responsible Development is shelving an attempt
to let voters decide the fate of a multi-million dollar economic
incentive agreement between the city and a major east-side shopping
center that could feature a relocated and expanded Wal-Mart.
Incentive opponents decide to concentrate on voter registration ahead of this November’s City Council elections.
GILROY – Just days after it was launched with a rally at City Hall, a referendum attempt aimed at a shopping center with a controversial new Super Wal-Mart store is apparently no more.
The Committee for Responsible Development is shelving an attempt to let voters decide the fate of a multi-million dollar economic incentive agreement between the city and a major east-side shopping center that could feature a relocated and expanded Wal-Mart.
Instead, the coalition of labor unions, business owners and civic leaders is focusing its efforts on the November mayoral and City Council elections, a committee spokesman said.
“We took a close look at our resources and we decided that we need to focus clearly on voter registration and voter turnout in November,” said committee member Miguel “Mike” Correa in a prepared statement.
The statement comes 10 days into the 30-day period members have to collect the 1,600 signatures they need to place the Newman Development Group’s $5.4 million development agreement on the ballot. Committee members had said they anticipated starting collecting signatures last week, but City Clerk Rhonda Pellin said Thursday that no one ever came to her office to pick up the paperwork necessary to begin the referendum attempt.
If approved, the referendum would have forced the City Council to either repeal the agreement outright or place it on the ballot in November or an earlier special election. Although it’s unclear what loss or delay of the incentives would do to the center, supporters of the incentive deal like Mayor Tom Springer and Newman’s George Akel raised the possibility that it could scuttle the project.
City officials said that would cause the loss of up to $1.6 million a year in sales tax revenues that leaders are already counting to pay for city services.
“If it’s true (that the referendum attempt is over), I’m going to surmise it’s because they found they had very little support in this community to work against this development,” Springer said Friday. “This development is going to provide the revenue we need to continue to support our police, fire and paramedic services rather than having to ask for increased property taxes.
“I believe the community supports that and doesn’t support efforts to work against it.”
The Newman center, located at the junction of U.S. 101 and state Highway 152, will include a mix of chain stores such as Party City, Linens n’ Things and restaurants such as Chili’s. Wal-Mart may also move its current store to the new center and expand it to include a grocery store – a move that’s drawn the ire of United Food and Commercial Workers Local 428, which represents grocery workers at several other local stores.
Wal-Mart does not use union labor, a fact company officials said results from employee choice – but unions say results from intimidation tactics. Union officials argued the new Wal-Mart would have negative impacts both on quality of life, existing stores and area wages and benefits in general, and subsequently targeted the development agreement meant to help lure the overall shopping center.
The agreement – the largest in the city’s history – allows Newman to use up to $5.4 million in sales tax the new center’s stores are expected to generate to cover certain fees the city would charge for the project’s impacts to roads, sewers and other infrastructure.
Regency Corp’s regional shopping center across Highway 152 received a similar deal worth roughly $5 million last year. Both deals drew criticism and dissenting votes from Councilmen Peter Arellano and Charles Morales because they don’t contain guarantees that the project will generate enough sales tax revenue to cover the credited impact fees.
But deal supporters like Springer and city Economic Development Director Bill Lindsteadt say there’s little risk. And they said the incentive agreements are the cost of doing business for the city, which does not have a redevelopment agency that many other cities – such as Morgan Hill – use to lure new commercial or industrial development by building supporting infrastructure.
Springer and Lindsteadt said that Wal-Mart would not receive “one dime” of city money or incentive credits because it’s an existing business that’s relocating in town, and Newman’s credit would be reduced as well. But union officials said there are still doubts the incentive deal has nothing to do with Wal-Mart. Wal-Mart attorneys have spoken during approval hearings for the incentives and the developer and store have used the same economic research firm, they said.
Instead of the referendum, committee members said they will now concentrate on a voter registration effort and get-out-the-vote campaign leading to this November’s Council elections.
The drive is expected to launch later this month at supermarkets and other public places and will be steered by the Latino Democratic Forum under the leadership of state Assemblyman Manny Diaz (D-San Jose).
“The fact is that a very small minority of the eligible voters of Gilroy are making decisions for everyone else,” Correa said.
Springer said the registration drive isn’t surprising considering Mike Correa’s son is current Gilroy Planning Commissioner Paul Correa, who ran for a Council seat in the last City Council election.
“I think it’s now clear from this statement that this whole effort has been a ruse to serve as a platform for Paul Correa’s upcoming Council bid,” Springer said. “(It’s) not because of their own desires, but because of Paul and his father’s desires to try to have a position on the Council.”
Mike Correa could not immediately be reached for comment Friday. Paul Correa noted he hasn’t announced a Council bid yet and said his father’s efforts aren’t a springboard for a potential run.
“My dad’s doing that because that’s what he believes in,” Paul Correa said of the committee’s work. “He’s a retired grocery clerk of 30 years … that’s why he was helping on the whole campaign against the potential Wal-Mart – that’s my dad’s labor union. He’s a strong advocate of doing what’s best for the community and of making sure the interests of the community are out in the public rather than a small minority making decisions at Council right now.”
