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Gilroy
March 29, 2024

Wal-Mart fight brewing

GILROY
– Wal-Mart representatives descended upon city officials and the
media this week to make a case for putting the retail giant’s first
supersized version of its stores in Northern California.
Over the past two days, a Wal-Mart spokeswoman and the public
affairs specialist she hired met with city planning staff, city
Planning Commission members and the media.
GILROY – Wal-Mart representatives descended upon city officials and the media this week to make a case for putting the retail giant’s first supersized version of its stores in Northern California.

Over the past two days, a Wal-Mart spokeswoman and the public affairs specialist she hired met with city planning staff, city Planning Commission members and the media. The Wal-Mart reps say their lobbying tour is nothing more than preparation for two upcoming and critical public hearings in Gilroy – a Planning Commission meeting Feb. 5 and a City Council meeting Feb. 17.

But their efforts are ongoing amid drawn-out and contentious grocery worker strikes in Southern California that many say will make their way up here, once labor contracts expire in September.

Grocery chains have publicly stated they need to cut costs to brace against the impact of eight proposed Wal-Mart Supercenters in Northern California which will sell groceries at discount prices. Laborers say they’re not ready to make concessions on salaries or benefits.

If City Council approves the Wal-Mart Supercenter planned for the Pacheco Pass Center at U.S. 101 and Highway 152, it will be the first of its kind in Northern California. Only one Supercenter – a store outside Palm Springs ready to open in March – will be built in California before Gilroy’s. The Gilroy Supercenter, if approved, is projected to open the first quarter of 2005.

“It’s been amazingly quiet so far, given the amount of attention this project has received,” Wal-Mart spokeswoman Amy Hill said regarding the objections to the company’s plan to build the 220,000-square-foot store.

A Davis-based attorney, William D. Kopper, filed an eight-page environmental critique of the Wal-Mart Supercenter with Gilroy City Hall early this week. The document, written on behalf of three Gilroy citizens and a group called Citizens for Responsible Development, pokes holes in the city’s environmental review. It claims the negative impacts to traffic and the local economy have not been addressed adequately.

Kopper is calling for an economic impact study to be done within a revised environmental review. He quotes economic impact studies which claim Supercenters could result in $2.8 billion in lost wages and benefits for grocery industry employees.

Kopper also wants the city to limit Wal-Mart Supercenter to 155,000 square feet, a “reduced size” version spelled out in the environmental review. The city’s environmental review stated the smaller version would not significantly reduce the Supercenter’s impact. The existing site, located on Arroyo Circle near the Gilroy Premium Outlets, is 125,600 square feet.

“I see nothing substantive in the comments, at least nothing that will derail the project. This project is environmentally sound,” city planner Melissa Durkin said. “In my opinion as a planner, Council’s decision to approve or deny the project shouldn’t revolve around the environment. Their decision will have to be based on policy issues.”

Hill, the Wal-Mart spokeswoman, described Kopper as a seasoned union lawyer who represents labor worker interests when unions want to oppose a Wal-Mart project.

It’s unclear how far unions will take this fight if Gilroy’s retail-friendly City Council approves the project. Hill acknowledged the environmental criticisms against its Supercenter project may be just the calm before the storm.

“I haven’t heard anything about a lawsuit by the unions, but it wouldn’t surprise me,” Hill said.

Labor unions have long tried to make inroads with Wal-Mart workers, but to no avail.

The labor unions say it’s because Wal-Mart employees are threatened they will lose their jobs or the promise of promotion if they wave the union flag. Wal-Mart says it’s because their workers are happy and not all of them plan to hold lifelong careers with the company.

“Of our 1.1 million workers, all but 100,000 are eligible for union membership,” Hill said. “We’re not holding anyone back.”

The Gilroy residents Kopper represents – Carmen Soto, Lenny Ortega and Steve Jones – could not be reached for comment. Kopper did not immediately return phone calls before press time.

The city received comments regarding the environmental review of Wal-Mart from 10 individuals and agencies. Most raise concerns over the negative traffic and air quality impacts addressed in the report. Others call for more economic impacts to be studied.

Comments were sent by former City Councilwoman Connie Rogers, Planning Commission member Norm Thompson, the Santa Clara Valley Water District, the Santa Clara Valley Transportation Authority, Caltrans, the county Roads and Airport Department, a San Franciso-based law firm Steefel, Levitt and Weiss, and residents Robert Miller and Mary Yates.

Durkin described the comments as “minor” environmental issues.

The Planning Commission meeting is Feb. 5 at 6 p.m. in the Council chambers at City Hall.

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