Hercules takes on retail goliath

SAN FRANCISO (AP) Wal-Mart Stores Inc. is known for its hardball tactics, but the little city of Hercules has come up with some muscle of its own in a bid to keep out the big-box retailer.

The City Council in the affluent Bay Area suburb is considering whether to use the power of eminent domain to seize the 17 acres where Wal-Mart intends to build a shopping complex. It’s a novel approach to a fight that has taken place in communities across the United States.

“We want something good to take that place,” said Jeffra Cook, a Hercules resident since 1988. “There aren’t a lot of good stories about Wal-Mart.”

Opponents in this bedroom community of 24,000 worry that Wal-Mart will drive local retailers out of business, tie up traffic and wreck its small-town flavor.

Wal-Mart spokesman Kevin Loscotoff accused Hercules of “playing politics” and said that turning down a Wal-Mart would deprive the city of much-needed revenue. He said some residents want a Wal-Mart in their community.

“We’ve attempted to meet with the city and haven’t been given return phone calls or e-mails,” Mr. Loscotoff said. “In a case like this, you’d certainly hope to have some sort of dialogue.”

Wal-Mart’s initial proposal for a 142,000-square-foot store near Hercules’ San Pablo Bay waterfront were rejected by the City Council. So the company submitted a scaled-down plan that included a pedestrian plaza, two outdoor eating areas and other small shops, including a pharmacy.

Hercules said no again, and opponents began raising the possibility of eminent domain, a legal tactic in which government agencies can take land from its owners for the public good. Cities sometimes use eminent domain to build roads or redevelop properties, but the owners must be paid fair-market value for their land.

The U.S. Supreme Court ruled last year that such seizures are allowable if the construction raises the tax base and benefits the entire community.

Some residents and city officials say the land, which is open space, would be better suited for upscale stores that attract affluent shoppers and give the suburb a classy touch.

City Council member Charleen Raines said she cannot remember any issue receiving so much attention in the community.

“There’s no question there has been a huge amount of public interest in this,” she said.

Mr. Loscotoff said Wal-Mart remains committed to opening a store in Hercules.

Story Continues →