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Wal-Mart’s arrival in Squamish one step closer

Council approves expanded food retail space, calls for ‘best Wal-Mart in Canada’ to be built

Wal-Mart attained a Squamish text by-law amendment at a public hearing on Sept. 14 that brings the retail giants arrival in Squamish one step closer to reality.

The bylaw amendment allows Wal-Mart to build 6,410+ square feet of food retail space in an 80,000 square foot building. The previous zoning only allowed for 1,000 square feet of food retail space.

During last week’s public hearing, council heard from many citizens who were not only strongly opposed to the expanded food retail space, but very concerned as well about social and work related issues and whether Wal-Mart is right for Squamish at all. At the end of much heated discussion, Squamish Council voted 6 to 1 to allow an expanded food retail space.

It was not an easy decision, as Mayor Ian Sutherland stated: "It was very difficult. The community has strong feelings on both sides of the issue. Council had to weigh the perceived benefits for our community, against the concerns that have been raised. We also have to make sure to focus on the issue we are dealing with, which is land use."

The process began in the fall of 2002 when First Professional Management Inc. (First Pro), acting on behalf of Wal-Mart, reached a preliminary agreement with the District to locate an 80,000 square foot store in the Squamish Business Park. Last week’s amendment paves the way for planning and design dialogue with the Squamish Planning Department.

The 2002 First Pro deal called for a store with a 12,000 square feet of food retail space, expandable to 18,000 square feet after five years. Both of these limits are well beyond the 1,000 square feet of food retail specified in the zoning of the 7.5 acre Business Park lot. During the November 2002 municipal election many of the current councillors supported Wal-Mart but not the amount of food retail requested. A compromise was reached: 6,410 sq. ft. for perishable and non-perishable food items, excluding poultry, fresh meat, fish and produce. They may also have an additional space for the sale of retail confections.

In making his decision to vote for the bylaw amendment Councilor Jeff Dawson felt that, "The motivating factor for me personally to grant the small addition of food space was to allow the Wal-Mart to actually be a Wal-Mart. Wal-Mart sells food in its stores. And the Squamish Wal-Mart should compare with other Wal-Marts. The consumers deserve that as much as anyone and I have every confidence Squamish businesses will rise to the challenge and maintain the vast majority of their market share as far as food sales are concerned."

Dawson also sees other benefits.

"Investors much prefer to work in, and more importantly, invest in a market that is open, transparent and most of all growing or expanding. This step forward sends a clear message that the local economy is growing.

"In the Business Park the Wal-Mart decision will positively impact development as it's akin to putting up a ‘full speed ahead’ sign. The longer a project goes from speculated start up to actual start up, the more unsure investors are. But conversely when investors see things happening they tend to act in a manner that accelerates their plans."

In increasing the food retail limit to 6,410+ square feet, the Wal-Mart food retail area will be equivalent to up to one-third of one of the existing grocery supermarkets in Squamish and one-quarter of another's.

When asked about the impact of this size of food retail space in Wal-Mart, a local grocer commented, "it's going to hurt." He said Wal-Mart, with its large buying power, could sell items at below his cost for that same item. He further observed that the Squamish grocery business is currently a very competitive situation with the three supermarkets in town. He summed it up by saying, "Squamish has a lot of food."

This was one of the factors behind Sonja Lebans’s lone dissenting vote.

"I am not a protectionist. I am for free enterprise," Lebans said.

"However, I feel that at 15,000 people we are not ready for another grocery store. That's why I voted against the motion. They could come back later and apply for the additional space."

Levans is confident of Wal-Mart's interest in Squamish.

"I felt this project would not go away," even if the expanded food retail space had been turned down.

Kevin Groh, Wal-Mart's manager of corporate communications, said Wal-Mart researches each area where it intends to expand. Their Squamish research indicated the need for a mid-sized Wal-Mart store.

"The extra square footage was critical in the context of our modern store design," Groh said.

"We negotiated because the site restrictions wouldn't accommodate the kind of food space common to general merchandise stores across Canada. We believe in Squamish. We have had a great number of calls, especially after last Tuesday's (Sept. 14th) decision, offering support. They are welcoming the variety of products and services Wal-Mart offers."

The overall size of the Squamish Wal-Mart will be 80,000 sq. ft. Wal-Mart store designs start at 55,000 sq. ft.

When asked about an opening date, Groh was guarded. He acknowledged that the project is facing "some significant steps" in design and planning and that these take time.

"We don't want to rush the project to the detriment of this work," he said. Generally speaking, Wal-Mart stores open six months after construction commences. They are anticipating a 2005 opening.

These comments may reflect the motion Mayor Sutherland made following acceptance of the expanded food retail space. The motion, which received unanimous council support, requires "…the applicant to work with staff in preparing a Development Permit for the ‘Best Wal-Mart in Canada’, which will be a comprehensive product that includes superior building form and character, environmental standards, and landscaping, and that the development should take into account Squamish's unique context and location in all design considerations."