CA city threatens Wal-Mart’s land

The City of Hercules, California, authorized its redevelopment agency in late May to use the power of eminent domain to seize 17 acres owned by Wal-Mart Stores Inc. rather than let the retail chain build a superstore on the site. The property lies close to one of the most popular new urbanist developments in the San Francisco Bay Area — the pedestrian-scale, 125-acre, Waterfront District originally planned by the Bixby Company, part of the 450-acre Central Hercules Plan designed for the city in 2000 by Dover, Kohl & Partners. The land acquired by Wal-Mart, a short distance up a slope from new houses, live-work units, parks, and other amenities overlooking San Pablo Bay, had been designated by the city as the location for a neighborhood shopping center, with input from people living nearby. Wal-Mart tried to override the city’s plan and win approval for a store of 142,000 square feet — inconsistent with the neighborhood shopping center concept, which called for one store of 64,000 square feet and other, smaller stores. When the 24,000-person city said no, Wal-Mart reduced the size of the proposed store to about 100,000 square feet in a format different from the usual big box. The company said the scaled-down store would have a pedestrian plaza and two outdoor eating areas, and would be accompanied by a few smaller shops, including a pharmacy. The City Council still said no, as did many residents — vehemently. In March the City Council authorized the city manager to buy Wal-Mart’s land. After the company refused to sell and kept pressing for a superstore on the site, the Council voted unanimously May 23 to authorize the use of eminent domain. “We’re trying to ward off urban blight,” said Steve Lawton, director of community development, noting that the Wal-Mart could harm development nearby. A city appraisal set the land’s value at about $15 million, but it would be up to a jury to decide “fair market value.” “Some residents were infuriated that Wal-Mart had warned that if the City Council voted for eminent domain, the move would cost the city millions,” The San Francisco Chronicle reported. A Wal-Mart spokesman said the company will evaluate the situation and decide what to do next. Although the Waterfront District has become popular with homebuyers (see March 2005 New Urban News), Wal-Mart’s proposal led one developer to postpone other retail construction in central Hercules. Oso Trabuco LLC, which owns land along the adjacent waterfront, said it has put plans for its property on hold until it knows whether Wal-Mart is coming. If Wal-Mart does build, Oso Trabuco would reduce the scope of its own project, the Chronicle reported. Meanwhile, Lawton said the city is on the verge of committing to financing $19 million of infrastructure improvements on the waterfront — including moving train tracks and building a ferry terminal. Plans call for the waterfront to offer both commuter rail and ferry services.