Developer Worries
Because of my working relationship, I had first-hand knowledge of the development plans community-wide, including the proposed Walmart. I had also had discussions with my then-client and they had mentioned how frustrated they were about the possible Walmart deal. The Hercules Waterfront District was supposed to become a place for higher-end stores. With a ferry terminal in the works (a short 40-minute boat ride from San Francisco), the vision for the development along the waterfront was for Hercules to become a destination in the bay area. The possibility of a Walmart was making it very difficult for my former clients to lure in higher-end retailers. As a result, the developer is stuck in neutral. Would they have to change their entire approved plan for a transit village, centered on a new Amtrak station and ferry terminal, because of the unexpected arrival of a blue-box Walmart?
64,000 Square Feet, No More
The issue is quite simple really, at least from the city's point-of-view. The approved development agreement in 2003 called for a retail store no larger than 64,000 square feet. A year later, Walmart purchased the property and submitted plans for a 142,000-square-foot superstore. The city rightfully rejected the proposed development despite the efforts made by Walmart brass. Walmart went back to the drawing board (or their closet in Arkansas) and blindly chose another one of their staple plan layouts. Walmart presented their second coming: a 99,000-square-foot retail store. The new plan is considerably smaller than the first plan, but it still remains fifty percent larger than the agreed-upon development agreement size.
If the powers behind Walmart force these new plans on the city, despite the reality that it does not mesh with the community agreement, the city has no choice but to evaluate the necessity of eminent domain and purchasing the property. In short conclusion on this matter, if the city goes by the book, the new plan should not stand since it simply does not comply with the development agreement which has long-been agreed upon.
On a further note, hypothetically, what if Walmart instead would have originally proposed a 250,000-square-foot mega-superstore, and after that plan was (rightfully) rejected, brought back to the table a plan for a 142,000-square-foot retail store? Should the city and its residents just accept the latest offering from Walmart because Walmart had to make the effort to present a second plan? No. Walmart needs to develop a plan that complies with the community's development agreement before the city considers approving the Walmart.
City Deserves Some Pie
The plans for the Hercules Waterfront District called for a large number of single-family homes and townhouses, as well as a good amount of mixed-use "live-work" units. The development plans did not include a substantial amount of pure retail. The city does not keep any of the revenue generated from home construction and property taxes. The revenue the city needs is generated by local sales taxes, and the lack of retail in the Hercules Waterfront District limited the potential for the city to grab a piece of the pie.
And the city does deserve a piece. Or two even. The city, and its residents, need to improve local infrastructure, increase funding for police and fire, as well as take advantage of the city's location on the San Pablo Bay by creating and preserving open spaces and community parks. And a Walmart would certainly offer a lot of pie.
However, does the city want a piece of apple pie? Or, maybe pecan pie? Or, maybe the city wants peach pie or cherry pie? And wouldn't the city rather have these different slices of pie that were cooked right here at home in Hercules. If the plans for a Walmart are improved, the city would get a piece of pie, but it would always be the same stale piece of pie shipped in from Arkansas.
Mixed Feelings
I had to let the reporter know that I was a Walmart shareholder. "I actually own stock in Walmart, believe it or not," I informed him. "However, I want was it best for the community, and the current plan for the Walmart is not."
I had since moved on from the engineering firm that is the geotechnical consultant for the majority of the Hercules Waterfront District. The reporter asked me if it was difficult to work on the project with the plans for a Walmart. "Yes," I replied. "It was interesting working on a development next door to my house, and when I saw the plans for the Walmart adjacent to the property I was working on, it was hard for me to give all my energy when I thought that, in the end, the Walmart would hurt the community that I lived in." I was fortunate that my company had not landed the Walmart contract, however, we had sent Walmart a proposal for services, and I long been crossing my fingers that the city rejects the retail giant's plans.
The reporter informed me that the report was to run in Monday's Chronicles. (Photographs were taken.) Stay tuned...
