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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