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CCMinutes - 04/12/04 Mtg
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CCMinutes - 04/12/04 Mtg
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City Council Minutes
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Meeting
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1/1/2004
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appeared that Wal-Mart had low prices was that it paid wages so low that most employees could not afford <br />to purchase health insurance from the company. He cited a statistic from Atlanta Constitution that <br />indicated that 10,000 of the 160,000 children receiving state-subsidized health insurance were children with <br />a parent who worked at Wal-Mart. He quoted another statistic from a Harvard Business School study <br />which found that Wal-Mart spent $1,300 less annually on employee health care than other retailers and <br />wholesalers. He stressed that when such employers fail to pay adequate wages and provide inadequate <br />benefits they were a hidden cost to taxpayers and communities. He said low-wage workers were more <br />likely to draw on food stamps, housing subsidies, and other social services. Mr. Bussel added that the <br />entry of such an especially tight-fisted employer into the community compelled competitors to whittle at <br />their own employee costs, which translated into lost jobs and smaller paychecks. He averred this <br />unaccountable corporate power was having a serious effect on the dignity of labor, the quality of <br />community and civic life, and the power of communities to decide what constituted the public good. He <br />noted that Wal-Mart liked to wrap itself in "American values" while failing to recognize that one American <br />value was fair treatment of and equitable compensation for labor. <br /> <br />Jill Schwab, 90 East 40th Avenue, expressed concern regarding the proposed expansion of the Wal-Mart <br />located on West 11th Avenue into a "super center." She believed the expansion could have far-reaching <br />negative impacts on the community if it was not stopped. She said predatory pricing was a common <br />practice of Wal-Mart. She noted that a Wal-Mart in Conway, Arkansas sold 30 percent of its pharmaceu- <br />tical line below actual cost and drove local pharmacies out of business. She felt further expansion of the <br />local Wal-Mart could potentially lead to the demise of small local groceries. <br /> <br />Ms. Schwab stressed the importance of looking at what sorts of jobs the expansion would create. She <br />stated that Wal-Mart was well-known for hiring part-time employees to avoid paying benefits. She added <br />that Wal-Mart managers were instructed to let people leave if business was slow. She felt the expansion <br />could cause grocery stores with union-represented workers to reduce contracts. She pointed out that Wal- <br />Mart often closed one or more of its smaller stores in an area upon opening a "super store" and 400 such <br />stores currently stood empty nationwide. She urged the City Council to immediately pass a moratorium on <br />commercial development over 15,000 square feet in order to allow time to consider the impacts of such <br />"super stores" and to avert "this damage to the community." She submitted her testimony and recommen- <br />dations in writing. <br /> <br />Kathy Ging, 2878 Harris Street, submitted her testimony in writing. She stated that a group of investors <br />planned to make a proposal to purchase the building by the WOW Hall. She suggested the community had <br />consternation about the process, criteria, and timeline for the request for proposals (RFPs) that the City <br />postulated regarding possible sale of the parcels next to and the lot located behind the WOW Hall. She <br />related the original four community groups interested in the purchase were no longer involved, but the new <br />investors had conceptual support from the Farmers Market, which might be interested in renting space if it <br />was bought. <br /> <br />Ms. Ging said Eugene had purchased the parcels ostensibly to landbank them for low-income housing while <br />maintaining options. She related that one City staff person had recommended to the Housing Policy Board <br />(HPB) that cooperation with an integrated community group and collaboration between private business <br />and government would be the sort of creative partnership needed to redevelop downtown. <br /> <br />Ms. Ging opined that the process was being stacked to accommodate outside developers who could pay <br />now and plan later as the timeline for the RFP had been planned to end in July. She recommended bumping <br />the deadline back to October. She asserted that the City should issue an initial RFP for development <br />proposals for sale and use for the building and lot in question. She felt that, should those proposals not be <br />successful, the City could then issue an RFP for housing proposals. She thought housing was incompatible <br />with the neighborhood. She predicted police activity would greatly increase as the decibel level sometimes <br /> <br /> <br />
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