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Another study: Wal-Mart expansion "devastating" to Chico
By Laura Urseny - Chico Enterprise Record
November 1, 2006
Opponents to Wal-Mart's two proposed projects in Chico have released an economist's study that forecasts a "devastating impact" on the local economy.

Heather Schlaff, coordinator of a citizens group that calls itself Chico Advocates for a Responsible Economy, said an independent study of the Chico situation was done by a California State University professor of economics.

The study stated if both Wal-Mart projects are allowed to go forward, several grocery stores, including Food Maxx, both Raley's and Albertson's would close, among other retail businesses.

"The Forest Avenue Supercenter expansion will close the Food Maxx store and the Raley's in southern Chico and place severe pressure on nearby nongrocery retailers, especially the struggling Chico Mall."

The 15-page study also indicated that if a supercenter is allowed to be built in north Chico, the Albertson's and Raley's at that end of town will close, as well as damaging their surrounding shopping centers.

"The resulting blight will far outweigh any small benefits," the executive summary of the study concludes.

The entire report was not available at press time, and the study's author was out sick Tuesday.

Schlaff said the city should be concerned about such repercussions involving taxes and jobs.

Schlaff and CARE do not oppose the existing Wal-Mart, just any expansions.

San Francisco State University associate professor of economics Philip G. King produced the study for Stockton attorney Brett Jolley, who has been involved in opposing Wal-Mart projects and has brought several Wal-Mart-related lawsuits.

According to his resume, King has done a number of Wal-Mart related studies in other communities, and has commented on EIRs in supercenter projects in California, including Chico.

In 2004, Jolley represented a retired union meat cutter from Chico who brought a lawsuit against the Wal-Mart regarding traffic and economic impacts of the proposed Forest Avenue expansion.

News of this latest study comes days after another Wal-Mart-related report was released by the Chico Economic Planning Corp.

Chamber and economic development personnel in 15 communities told CEPCO employees during telephone interviews that communities benefited from Wal-Mart supercenters in taxes, jobs and charity contributions.

Of the CEPCO report, Schlaff said the survey was conducted by people already disposed toward Wal-Mart, and it talked to people who would be in favor of Wal-Mart expansions by virtue of being involved in economic development.

She noted the communities surveyed did not have two supercenters as Chico would.

Schlaff said the CARE study, plus petitions signed by about 2,000 people, will be submitted to the city.

Wal-Mart has proposed expanding its existing 126,000-square-foot Forest Avenue store by adding more than 97,000 square feet to make it a supercenter with discount groceries.

It is also proposing to construct a new 242,000-square-foot supercenter with a grocery on the site of the former Sunset Hills golf course in north Chico.

A city-hired consultant is producing separate EIRs on both projects, but the north Chico store report is expected first.

Schlaff said the CARE group coalesced when Wal-Mart first began discussing expansion of its existing store in early 2004.

Schlaff began talking to people she saw at city meetings and formed CARE to keep the community informed through a Web site, e-mail messages and public testimony. Its Web site is www.chicocares.org.

"A supercenter has over 50 percent discount groceries. We have existing groceries that offer groceries at a discount," she said, naming off WinCo, Food Maxx and Costco.

She said Chico is already a regional retail hub and doesn't need help.

A Food Maxx executive in 2004 told the city Planning Commission he feared the Chico store would close if Wal-Mart was allowed to go forward.

Economic impact — or how the projects will affect Chico's economy — will be part of the city's EIR.

"However, you know who's paying for the EIRs. It's Wal-Mart," Schlaff said.

Regarding CARE, Schlaff described the organization as a grass roots one attracting people from throughout Chico and from every economic level.

The roughly 2,000 who signed CARE petitions over several Saturday's farmers' market in downtown Chico opposed both projects.

Schlaff said some of the signers said they shopped at Wal-Mart, but didn't want it to expand.

Schlaff said the group's goal is to examine growth coming to Chico, but make sure Chico's character are maintained and growth happens "in an intelligent manner, but preserve local business while providing a range of choice for consumers."

Schlaff said with the projected job loss shown by the study, "There's no net gain."

Having six supercenters so close to each other will also impact the economies of other communities, she said.

Anderson already has a supercenter, and another is already approved in Willows. Planned expansions to Red Bluff and Oroville will create supercenters there as well.

Schlaff said Stockton attorney Jolley helped CARE find the university economist, but said no outside people or union members encouraged or helped the local group.

Schlaff said she is awaiting Jolley's bill for the study.

Jolley has been characterized as being an attorney representing unions and union issues.