By Michael Copley, Staff writer
mcopley@powhatantoday.com

What would be the effect of a so-called “big box” store (Wal-Mart, Target, Lowes) opening a location along Powhatan’s Route 60 corridor?

Though no business of that size has filed formal plans with the county, Powhatan Planning Director Brandon Stidham confirmed that in September 2008, a developer submitted a pre scoping traffic impact study consistent with a “big box” development. 

But big box stores are just a component of a larger development trend troubling to some national researchers. They see the advance of chain retailers like Sheetz and the Wawa slated to be built in Flat Rock, as just as pernicious a neighbor as the mega retailers some localities have fought to exclude.

Opponents claim the introduction of mega-retailers hurts the communities they enter, spoiling local business assets and undercutting the economy.

Stacy Mitchell, a Senior Researcher with the New Rules Project, an arm of the Institute for Local Self-Reliance, indicated mega-retailers are the source of a myriad of problems running just below the surface of many communities, including: a shrinking middle class, rising pollution, diminished civic engagement, soaring gas consumption, rising poverty rates, and failing family farms.

She said communities composed of small, locally owned businesses are healthier and more prosperous than those dominated by large chains. 

A Study by the Public Policy Institute of California found opening a Wal-Mart “reduces county-level retail employment by 150 jobs.” According to the study, Wal-Mart employs an average of 360 people. As local businesses are forced to close or downsize, 1.4 jobs are lost for every one job that Wal-Mart creates, reducing the county-wide retail payroll by $1.2 million. 

But proponents of mega-retail development shout for free enterprise and the benefits of competition for consumers And they say the retail operation, whichever it is, will generate tax revenue for the county.

District Three Supervisor Robert Cosby wasn’t willing to talk about economic development in absolutes. “I can’t speak for anyone but myself, but I think you need to give any economic opportunity due consideration.”

But Mitchell takes exception to the way some color the effects of these corporate giants.

Mitchell said, “People forget to look at tax losses,” that result from the displacement of local businesses. “And there are the public service costs and ongoing maintenance expenses that go along with chain stores.”

Mitchell said the most significant strains on public funds come from utilities concerns and the need to provide the facilities with adequate police patrols.

“Hidden costs become the difference,” said Mitchell. “It takes a couple of years for the effects [of a chain store] to shake out, it may be a while for public services costs to make an impact — like an increase in taxes.”

But Mitchell said there’s a spiral effect when community businesses shut down and their neighbors are stuck next to vacant properties, dragged into the middle of a local retail constriction.

That’s certainly the worst case scenario, but District Five Supervisor Carson Tucker echoed Cosby, and outlined county plans aimed at encountering large scale development with a proactive deliberateness.

“We welcome all businesses as we try and get a diverse economic base,” said Tucker. “But development must be meaningful and we cannot allow economic development to obliterate the ambiance we cherish.”

He acknowledged the dangers associated with mega-retailers but said the county is taking steps to ensure well planned, positive growth; “Walking, he said, “on a knife’s edge.”

Sherry Swinson, Directory of Economic Development, is helping to organize the Institute for Service- a series of business seminars designed to help existing county businesses retain market position in the event chain stores do arrive.

By focusing on hospitality, training, and customer service, Swinson said she hopes to help set a standard for the county that will benefit local businesses in the future.

“This is a way for local businesses to have a leg up,” said Swinson. “Customer service and customer loyalty go a long way.”

“It’s the need for us to help protect existing businesses,” said Tucker.

Tucker also talked about a strategic plan for economic development, to help the county think seriously about “what kinds of businesses we want to come here; again, without destroying the ambiance of the area.”

He said to create jobs, reduce the tax burden on homeowners and farmers, and provide residents access to products within the county,” it is necessary to consider the possibility [of large scale development] an opportunity.