From Deseret News archives:

Friend or foe? Wal-Mart alters Utah landscape

Convenience and low prices often win over staunchest foes

Published: Sunday, March 27, 2005 12:28 a.m. MST
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Eighty-one percent of respondents in the Deseret Morning News/KSL-TV poll said generating new jobs is an important consideration for public officials when deciding whether to allow a big-box retailer in the community.

Another 80 percent cited tax revenues as an important factor in whether to welcome big-boxes.

Clinton, a city of 20,000 at the northern edge of Davis County, has thrived since Wal-Mart moved in last year, said city planner Lynn Vinzant. Instead of businesses shutting their doors, the retailer has brought in more shops hoping to ride the Supercenter's coattails.

The story is the same in Sandy, where a Wal-Mart on State Street became a seed for retail growth. Nick Duerksen, planning and zoning spokesman for Sandy, said the store even boosted revenues at nearby South Towne Mall.

But the drive for sales-tax dollars often pits Wal-Mart foes against city leaders. In Sandy, residents opposed to a proposed Supercenter say city officials sold out for retail revenue.

Sandy Councilman Scott Cowdell is quick to admit his vote to allow the Wal-Mart project was based on sales-tax dollars. An economic study commissioned by the city earlier this year revealed the development could bring more than $10 million in sales-tax revenues over the next 15 years.

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"My reasoning has always been — and people hate me to say this — but we need the tax revenue that it generates into our city," Cowdell said.

Mike Jerman, vice president of the Utah Taxpayers Association, said Wal-Mart and city officials shouldn't be held entirely responsible in the race for sales-tax revenues. Rather, the tax system itself is to blame, he said.

In Utah, half of sales-tax revenues go to the city where the sale was made and the other half goes to a general pot distributed by population. The point-of-sale portion, Jerman said, encourages cities to recruit big-box retailers.

"It's kind of a Cold War mentality. Basically what you have is cities competing against each other for sales-tax dollars," Jerman said.

But in Sandy, the Save Our Communities group has placed blame for the contested Wal-Mart squarely on the City Council. Cowdell and three other council members are under fire from residents who say leaders will pay for their decision in next year's election.

Working with Wal-Mart

In Draper, many residents expressed similar outrage when the City Council approved a Wal-Mart Neighborhood Market two years ago. Residents like Melanie Zitting feared the grocery store would drive out local retailers and create noise and light problems.

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