Is Walmart a deal
with the devil for Novi?
May 12, 2010 by
Michael Salemi
There is no question that
Novi Town Center, a well-located and well-placed retail
development, has suffered from fleeing tenants and
vacancy that wasn’t right before our larger economic
issues. Part of its problem is the lack of anchor
stores, and once they go, the smaller stores are soon to
follow. Yet, while the interior is largely abandoned,
newly-built “pads” house new establishments like PeiWei,
PotBelly and Oberweis (Chapter 11 since last September,
by the way). That is a peculiar sight that defies logic:
building MORE space on properly largely abandoned.
I am certain that the
city will look at Walmart with dollar signs in their
eyes for tax reasons. I am sure the property owners (how
many owners since being built?) will consider it a coup
to land such an anchor. Maybe, just maybe, this is what
that property would need to “turn it around”.
But at what cost? The
Walmart effect is real, and should be studied very
carefully by the people of Novi and its government prior
to just handing them the keys to a vacant Mervyn’s
space. You could spend weeks studying (as many
academicians have done) the impact of Walmart. Just
Google “Impact on community of Walmart” or anything
similar, and sit back and read.
Highlighting facts from
other locales:
- Increased tax
revenue is often offset by reductions in taxes from
other establishments.
- Their buying power
causes locally owned and operated businesses to
fail.
- “Job Creation” is
largely illusory: low paying part time jobs.
- States and cities
often have to finance revitalization programs for
areas devastated by Walmart.
Look at the struggling
Sam’s Club. When located at Grand River and Haggerty, it
was thriving. By moving to Wixom Road south of Grand
River, they hoped to capitalize on the Island Lake
growth. That barely happened, and that Sam’s Club, while
open for business, is generally empty of customers,
certainly when compared to ANY of the local Costco
warehouses.
It should not be advanced
academic science to realize that Walmart will not make
the pie any bigger; it will just be divided up into
smaller pieces. There is a reason why so many businesses
have failed here in Novi —there isn’t enough business to
go around, plain and simple. Have you noticed how EVERY
commercial building in Novi has a For Lease sign on it?
Did anyone scratch their head about hundreds of
thousands of square feet of retail space at Fountain
Walk (the grandest of grand, misguided ideas in Novi )
demolished before it ever was occupied? Do I need to
mention “ Main Street ”? The vacancy rate is astounding
here. There just isn’t enough business in this
community, in this economy. Adding such a massive
retailer will most definitely have an effect, but once
you take everything into consideration, it probably
isn’t right for Novi .
Be careful what you wish
for.
Michael Salemi
Novi
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