iPhone app iPad app Android phone app Android tablet app More

Featuring fresh takes and real-time analysis from HuffPost's signature lineup of contributors
Al Norman

Al Norman

GET UPDATES FROM Al Norman
 

Wal-Mart Buys San Diego

Posted: 02/ 4/11 07:43 AM ET

It's clear now who is running San Diego.

Wal-Mart needed only 8 weeks and maybe thirty thousand dollars to scare the daylights out of the City Council in San Diego. One local official in San Diego, California called it a "dark day for democracy."

In December of 2010, the City Council voted to override a veto by the Mayor of a zoning ordinance that requires certain big box stores over 90,000 square feet to study their impact on the local economy, on wages, and on traffic. It was a watered down ordinance at best -- but there was one "citizen" who didn't appreciate the City Council vote. Wal-Mart began portraying the ordinance as an outright ban on superstores, and the corporation hired professional signature collectors to put the issue on the San Diego ballot. Wal-Mart knew that San Diego could not financially afford to hold a referendum, so all the folks in Bentonville had to do was throw a head fake. It worked.

Cash-strapped San Diego would have to swallow hard to come up with the $3.4 million cost of a referendum. Wal-Mart put the City Council neatly in a box. The City Council voted 7-1 to rescind the ordinance -- not because they had a change of heart -- but because fighting Wal-Mart was not worth millions of dollars to the Council.

For several years, anti-big box residents have been trying to keep huge stores out of San Diego. In November of 2006, the City Council took an initial vote to ban retail stores of more than 90,000 square feet that use 10% of their interior space to sell groceries or other merchandise that is not subject to sales tax. This ordinance was modeled on similar ordinances in California -- most notably Turlock -- where Wal-Mart failed repeatedly to challenge the law in the courts.

Predictably, Wal-Mart threatened a voter referendum on the big box ban in San Diego. The Mayor of San Diego, Jerry Sanders, told reporters at the time that he would veto the new cap if it went through its required second vote. In early June, 2007, the Council took its final vote to pass the new ordinance. Mayor Sanders vetoed it, and Wal-Mart threatened that it would hire people to gather signatures to put the measure on the ballot in the form of a referendum.

Wal-Mart's threat was enough. One Councilor switched her vote for the ban, to against the ban. The San Diego Union-Tribune called this change of heart a "surprise twist." The vote on the override was a 4-4 tie, so the Mayor's veto killed the big box ordinance. The head of the San Diego Neighborhood Market Association, which represents 2,000 small businesses in the city, said her group was disappointed by the Council's decision to reverse their vote.

But City Councilors did not give up. They came back with a diluted ordinance that simply required large stores to conduct impact studies before being permitted. They said they wanted to "put something in place that also protects small businesses by doing an economic impact report and allowing the communities to have a greater oversight of that process."

Repeating history, Mayor Jerry Sanders vetoed the milder economic impact legislation at the end of November, 2010. "I do not believe it is the City's role to determine where consumers may shop or to provide a competitive advantage to certain retail businesses," Sanders said in his veto message.

Councilor Todd Gloria, who was the lead sponsor of the economic impact ordinance, needed to round up five votes for the measure. This time around, the City Council voted to override Mayor Sanders, and the new ordinance was on the books. But well before the override vote, Wal-Mart began its menacing behavior. The retailer took out full page ads in the Union-Tribune saying the City Council was just carrying water for the unions, and urging San Diego voters to "be a voice for choice."

By mid-December Wal-Mart had launched what the newspaper called "a furious campaign" to gather at least 31,000 signatures to overturn the ordinance. The Arkansas-based corporation hired private firms to gather signatures for them as shoppers left other Wal-Mart stores in the area. Their professional gatherers amassed 54,000 signatures in no time.

Because there were no elections slated in 2011, the city would have to hold a special election, and taxpayers would pick up as much as $3.4 million for Wal-Mart's vote. Wal-Mart's opponents called on the company to pay for the referendum -- since it was the company which stood to gain hundreds of millions in new sales if the big box law was overturned. But the chances of having Wal-Mart foot the bill were as dim as finding Sam Walton selling moon pies in aisle 12.

This week, the City Council once again caved to Wal-Mart. The vote to repeal their November ordinance was 7-1. City Council President Tony Young pointed out all the better uses the city could find for $3 million. "It's been a really tough fight," he told the Associated Press, "but we also have to keep in mind that we do have a fiduciary responsibility to the city of San Diego."

After the vote, Wal-Mart was puffed up like someone who had just won a big pot at Texas Hold'em -- with nothing in the hole. "Thanks to this vote," a company spokesperson said, "we will be able to provide the people of San Diego with improved access to affordable and fresh food, particularly for those living in underserved neighborhoods."

The lone holdout was City Councilor Marti Emerald, who told her constituents, "My vote is not for sale." And Councilor Todd Gloria, who had championed the watered-down ordinance, could only mutter: "Let's be clear, this is a dark day for democracy."

Wal-Mart has fought similar ordinances across the country, arguing that local officials have no right to limit the "freedom to shop," as if this was enshrined in the Bill of Rights somewhere. The company's attempts to challenge such laws in the courts have all failed, so buying elections is the next best option--and less costly. With corporate free speech a bottomless well, fighting Wal-Mart is like going up against a candidate with a massive campaign war chest. Wal-Mart's attitude is that they are too big to fail.

For now, San Diego has been bought and sold by a large corporation. But the day after the vote, a State Senator from San Diego, Juan Vargas, vowed to submit legislation in Sacramento that would accomplish the same goal as the short-lived San Diego law.

"What I did not like," the Senator told the Union-Tribune, "was that one company and one company alone had the power to scare the City Council into changing its mind and that is what happened. That's not right. That's not the way government should work. One company should not have the power to do that."

When Wal-Mart learned of Vargas' initiative, the company told the media that state lawmakers should focus on solving "the state budget woes" instead of "trying to thwart the will of the people." But Wal-Mart should keep its corporate money out of politics, and go back to selling cheap underwear. Cities and towns have the right to limit the scale of large projects, as a way to mitigate adverse impacts on local businesses, traffic, and property values. It's a fundamental local control power.

To "Citizen" Wal-Mart, everything is for sale -- including public policy. If the company doesn't like your local laws, it will lay out some cash to change them. The large retailer's intrusion into local, state and national politics has indeed brought 'dark days' to our democracy.

Al Norman is the founder of Sprawl-Busters, and author of "The Case Against Wal-Mart," and "Slam-Dunking Wal-Mart." His website, http://www.sprawl-busters.com, can also be found on Facebook.

 
 
 
 
 
  • Comments
  • 37
  • Pending Comments
  • 0
  • View FAQ
Comments are closed for this entry
View All
Favorites
Recency  | 
Popularity
Page: 1 2  Next ›  Last »  (2 total)
06:11 PM on 02/10/2011
Here in Medford Oregon Walmart has done the same thing. We have four huge Walmarts in the area but they need one more huge mega-store. Even though the people here don't want it they have forced us to spend millions in legal fees to shove it down our throats. Here where we have 15% unemployment and are on the verge of losing Harry and David's the largest private employer in the area.
02:56 AM on 02/10/2011
Wal-Mart is having to down-size their stores due to economic conditions. Why are they imposing themselves on San Diego? Wanton profit is no longer an excuse for bankrupting a decades old local economy.
HUFFPOST COMMUNITY MODERATOR
JScott
John Galt's last name is McGuffin-Smithee
10:22 AM on 02/09/2011
So apparently it's not enough for Wal Mart to have 4 stores in San Diego already huh?
Not to mention there are several already scattered thru out San Diego county.
Sorry they aren't depriving shoppers and 'libertarian free market capitalists' of anything.
05:09 PM on 02/07/2011
I'm not sure why San Diego's City Council would want to prevent their citizens from shopping at a Walmart if they want to. If the customers don't come or the store can't find employees then it will fail anyway. I do agree that it should be in an area zoned for large retail or industrial....not in a residential area.
HUFFPOST SUPER USER
Ballsin
05:46 PM on 02/08/2011
The fact is Wal Marts close small businesses down. Whether its :" free market", etc...
04:58 PM on 02/07/2011
Wal-Mart's PAC also kicked a few tens of thousands to charities supported by Gloria and Young, the two council members who changed their votes.

http://lastblogonearth.com/2011/02/04/walmart-pac-donated-to-vote-flippers-favored-charities/
photo
HUFFPOST SUPER USER
DaveNYC
04:22 PM on 02/07/2011
Oh my god -- now the Southern California landscape of highways, stripmalls, and cookie-cutter housing developments will be blighted by big box-shaped stores.
This user has chosen to opt out of the Badges program
photo
04:17 PM on 02/07/2011
Corporations, media, and government are all in bed together. I wonder if voting even helps anymore when politicians are getting "paid" under the table. On PBS Fronline they have an episode titled, "Is Walmart Good For America." I was infuriated by the end. Cheap prices, but at the cost of job losses for millions of Americans. Walmart also takes life insurance policies out on their employees. Your wife works for Walmart and dies? Walmart gets money for that.
photo
HUFFPOST SUPER USER
mountainweb
Conservative Commonsense
03:58 PM on 02/07/2011
Wait, has the city council ever been "not for hire"?
photo
HUFFPOST SUPER USER
mountainweb
Conservative Commonsense
03:55 PM on 02/07/2011
Bottom line, they knew that the voters would vote FOR Walmart, new JOBS and CHEAP food and Clothing. In these hard economic times, hard to beat......
photo
mlaiuppa
Pres. Sarcasm Society. Like we need your approval.
02:01 AM on 02/07/2011
And why should WalMart be any different from the developers who have owned the city Council for decades?

Citizens United sold America to corporations. They are used to getting their own way. If they can't buy it, they'll take it. If the City Council had fought this, that $3.4 million would have come from libraries, parks, police and fire to pay for it.

Walmart doesn't care about community, Walmart doesn't care about people. Walmart is not our friend. Walmart only cares about Walmart and profit. I won't shop there. But cheap people looking to save a buck will buy Walmart's cheap Chinese garbage. Americans want something for nothing, they want a deal, they aren't willing to pay a fair price for goods and services. That is why their jobs got outsourced.
photo
HUFFPOST SUPER USER
Joe Moore
English Teacher in Japan
05:03 PM on 02/06/2011
We are going to end up like the movie WALL-E. Anyone remember that cute little movie? Well...the underlying message of that movie was that our indulgence in big box consumption and letting a corporation like Wallmart call the shots in our local and soon national governments will lead to ruin.

I hope that the state does take action and slow down the expansion of the Wallmart Empire.
This user has chosen to opt out of the Badges program
photo
Elizabeth Schwartz
Barack 2012, Hilary 2016!
03:11 PM on 02/06/2011
Too bad the SD City councilmembers weren't required to watch "Walmart: The High Cost of Cheap Living" before casting their votes. Walmart still has the honor of being the worst polluter and violator of human rights on the planet.
HUFFPOST SUPER USER
Wonder Woman2
Whats a micro-bio?
12:04 PM on 02/06/2011
Excuse me - it so is a cities job to look at the impact businesses would have on their citizens.
photo
LuLou Murder
Don't blame God, it's not Her fault.
01:01 PM on 02/09/2011
In an enlightened society, yes. In ours, not so much.
photo
HUFFPOST SUPER USER
AmeriGus
Wore On Terror
10:34 AM on 02/06/2011
Walmart is currently airing radio ads in NYC designed to convince us low income neighborhoods need Walmart to provide healthy foods. Their propaganda campaign of a few weeks ago claimed we needed a Walmart for the jobs it creates.

I've never heard such Orwellian horseshit as this. We all know Walmart has the cheapest, unhealthiest crap food anywhere and the lowest paying jobs possible which destroy small businesses for miles in every direction.

Walmarts owners are the wealthiest people in history, people. They are all about PROFIT and sucking jobs and revenue out of every community they disgrace with their presence. Please find a petition now to send them back to Arkansas and support small business, the life blood of America.
HUFFPOST SUPER USER
cartoonkirk
08:04 PM on 02/05/2011
another Mercado in San Diego? yet this one is a taxbase killer.