GILROY
– Two of America’s hugest retailers, covering a few dozen acres
of “Garlic Town” commercial space in the southeast section of the
city, could be vying for Gilroy shopping dollars as early as next
year.
GILROY – Two of America’s hugest retailers, covering a few dozen acres of “Garlic Town” commercial space in the southeast section of the city, could be vying for Gilroy shopping dollars as early as next year.

With a March 1 Costco grand opening approaching, San Francisco-based developers have submitted a plan to move a supersized version of Wal-Mart into the ever-budding retail complex off Pacheco Pass, on Camino Arroyo and Renz Lane.

Despite city enthusiasm over the shopping center project that could one day generate $400 million in sales tax – with 1 percent of those funds funneling directly into city coffers – local union leaders are stepping into the frey by opposing Wal-Mart’s plans.

“Adding a grocery store doesn’t even increase the sales tax the community will enjoy,” said Local 428 spokesman Ron Lind. “It just takes the tax that stores like PW and Nob Hill would have generated and shifts it over to Wal-Mart.”

On March 6, United Food and Commercial Workers Local 428 will picket the existing Wal-Mart at 7900 Arroyo Circle with a coalition of laborers, environmental activists and community leaders that could number in the hundreds, the union says. The picketers will protest Wal-Mart’s decision to eventually close its existing facility in order to open up, as early as next year, a supersized version of the store that will not use union labor.

At 220,000-square-feet, the Wal-Mart Supercenter would be nearly 100,000 square feet larger than the existing store and would include a grocery store.

“If you allow this, you’re replacing one big-box store with another bigger-box store that will destroy middle-class jobs with benefits,” Lind said. “We’re talking about the most-sued company in America that even encourages its employees to seek county health-care coverage – which means you and I pay their bills.”

Wal-Mart representatives did not return phone calls seeking comment. The company historically defends its impact on a community, saying their stores offer consumers low-price choices. Company officials have also said they offer competitive wages, retirement benefits, profit-sharing plans and health insurance.

Wal-Mart and the developer, San Francisco-based Newman Development Group, have submitted a second set of plans for the nearly 20-acre parcel at the northeast corner of Camino Arroyo near Renz Lane. The new store would neighbor Costco, the warehouse-style supermarket which opens March 1, and Lowe’s, a home improvement store currently under construction.

The Wal-Mart Supercenter would include a tire and lube center, optometry office, photo lab, pharmacy and a full-scale grocery store with bakery and deli departments. Wal-Mart shouldn’t have market problems even during these economically rough times, says Bill Lindsteadt, the executive director of the Gilroy Economic Development Corporation.

When the Pacheco Pass Highway shopping center is built out, according to Lindsteadt, it will include – in addition to Wal-Mart, Costco and Lowe’s – a Super Target, Kohl’s department store, Pier 1, Ross clothing store, Dress Barn, Bed, Bath & Beyond, Michael’s craft store, and Barnes & Noble Booksellers.

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A staff member wrote, edited or posted this article, which may include information provided by one or more third parties.

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