CD Comm - Wal Mart at 14th StH&CD
Housing and Community Development Department
1805 Central Avenue
Dubuque, Iowa 52001-3656
(563) 5894239 office
(363) 5894244 fax
November 27, 2002
Long-Range Planning Commission
Attn: Dave Rusk, Chair
c/o City Hall
50W. 13th St.
Dubuque, lA 52001
Zoning Commission
Atto: Eugene Bird, Chair
c/o City Hall
50 W. 13th St.
Dubuque, IA 52001
Dear Commissioners:
I write on behalf of the Community Development Commission. What follows is our
unanimous request.
We have read with interest the media reports regarding a development proposal by Wal-
Mart for the industrial property now owned by Smithfield Foods on 16th Street. We have
also reviewed information that has been forwarded to us by the Planning Department.
As you are aware, among other duties the Community Development Commission is
responsible for: 1) identifying community development needs, particularly the needs of
persons of low and moderate income; 2) advising the City Council in policy decisions
regarding program development and implementation; 3) monitoring and evaluating
program activities to advise whether identified community development objectives have
been met; and 4) undertaking public information efforts to provide for a greater
understanding of the City's community development efforts.
Through a process of public input, we advise the City Council on spending priorities for
the City's Community Development Block Grant Program, to assist low and moderate
income people in lifting themselves out of poverty and to prevent poverty by addressing
conditions of slum and blight.
We believe that several important questions need to be asked about the WabMart
proposal. These questions center on the theme of whether or not Wal-Mart's plans, if
realized, will help or hinder the City of Dubuque in achieving our Consolidated Plan for
Housing and Community Development, adopted by the City Council on May 1,2000.
We ask for your assistance, and the assistance of City staff, in addressing these questions:
1. An objective of the Consolidated Plan is to develop and maintain neighborhood
businesses. Retention of businesses serving neighborhoods is a high priority The ISU
researcher estimated that a 50,000-square-foot Wal-Mart could be expected to take $5
million a year in sales from existing local businesses, especially groceries, hardware
stores, drugstores, bookstores, hobby and toy stores, and apparel shops. Many stores
like this currently exist in neighborhoods around the proposed redevelopment. What
is the expected impact on neighborhood businesses if a Wal-Mart is located in
this area?
2. An objective of the Consolidated Plan is to develop new jobs that have living wages.
Specifically, the Plan calls for 50 percent of new jobs created to pay more than $9.00
per hour. It calls for 25 pement of new jobs created to be above $12.00. What
benefits, wages and hours of work will be provided to workers at the proposed
Wal-Mart? What benefits, wages and hours are currently being provided by
olher businesses in the area that may be put "at-risk" by the proposed Wal-
Mart?
3. Goals of the Consolidated Plan include providing permanent housing opportunities
and creating more affordable housing options. Commercial land creation and
speculation often poses a threat to low and moderate-income housing. What will be
the impact of this development, and likely surrounding developments, on the
quality and availability of affordable housing?
4. The Community Development Commission has identified industrial development as
the key driver of economic advancement. The property specified for commercial m-
development by Wal-Mart is currently zoned industrial. Until now, the property's
best and highest use in the city's long range plan has been identified as industrial, in
particular because the property is accessible by rail. (Not too long ago, the City
attempted to condemn a Century family Farm because we needed more industrial land
accessible by rail.) What rationale justifies this property's best use being changed
from industrial to commercial?
5. An objective of the Consolidated Plan is to link existing human resources with skilled
jobs, with the outcome of decreasing poverty throughout current low-income census
tracts (many of which surround the proposed redevelopment). Federal, state and
municipal government have promoted the concept of "enterprise zones" in or near
low-income areas as a primary strategic tool to promote this outcome. In fact, an
enterprise zone has been established in this area. How will the location of Wal-Mart
in this industrial area create high-skill, high-wage jobs for residents in these
census tracts and enhance the area's potential as an enterprise zone?
6. An objective of the Consolidated Plan is to enhance the assets of Dubuque, including
enhanced retail opportunities. What is the capacity of the Dubuque market for
additional discount merchandising? If this capacity is being exceeded, what will
be the net impact to employment levels, payroll, sales and property tax receipts
if other discount retailers go out of business? (For example, research by an Iowa
State economist indicates that a typical Wal-Mart takes more than three-fourth of its
sales from existing stores in town.) Also, what will be the impact of this
development, and likely surrounding developments, on efforts to "enhance
retail" along newly-opened Main Street?
The Community Development Commission takes the view that a broad "community
and economic impact" analysis needs to be conducted before the Wal-Mart proposal
is acted upon. All of the development's potential results should be weighed before it is
approved. We believe one focus of this analysis shouM be whether the development will
help or hinder the City of Dubuque in achieving its Consolidated Plan for Housing and
Community Development. The Community Development Commission offers to
collaborate with you in investigating the matters we have brought to your attention.
We thank you for your time, consideration and response.
Sincerely,
Walter Pregler
Chair, Comrnunity Development Commission
c: Michael Van Milligen, Laura Carstens, Bill Banm, Housing Commission