Wal-Mart shouldn't get tax breaks!

The Village of Tinley Park needs to withdraw their proposed property tax abatements and sales tax sharing program for the development of a Wal-Mart at Harlem Ave. & 191st St.

The Village’s economic analysis of the proposed Wal-Mart is incorrect for the following reasons:

Economic substitution – We assume the population is in the area will remain constant. Our residents are expected to have the same future needs for goods that are currently provided by different retailers such as Jewel, Meijer, and Target.  Sales at the proposed Wal-Mart will be substitutions from these retailers – NOT additional revenue. 

Lower Total Sales Tax Revenue – Wal-Mart is also known for lower prices; therefore customers will be spending less total money when buying the same things that they currently buy at the other retailers, which will result in LESS total sales tax revenue being generated after the proposed TEN YEAR sales tax sharing period.

Putting Existing Retailers Out Of Business – The following businesses also located on Harlem Ave. within a short distance will be put out of business if a Wal-Mart were to be added on Harlem Ave.:

·         Target at 191st & Harlem

·         Jewel at 171st & Harlem

·         Meijer at 159th & Harlem. 

Abandoned Buildings – In addition to the above listed businesses that will go out of business, there is the old Sam’s Club building on Harlem & 161st that will become abandoned. What is the city’s plan for all of these abandoned buildings? This corridor along Harlem Ave. between 159th St. and 191st St. is doomed to become a run-down ghost town with the exception of the new Wal-Mart location that is located on the south end of Tinley Park. The center of the village is what is going to end up falling into ruin.

No New Jobs –The existing retailers will be out of business. Therefore their current employees will lose their jobs. Some of these employees will find jobs at the new Wal-Mart, while others will remain unemployed.  The people who do find jobs at Wal-Mart will find themselves earning less money for the same hours that they work.

Invalid Bargaining Metrics – The reasons Wal-Mart has asked for assistance are bargaining points on the sale price of the land to be developed – NOT on the future property tax bill.  A retailers’ property tax bill is based on their earning potential. This has nothing to do with the current condition of the land or the costs of development.

No Property Tax Savings for Residences – Since the proposed development will be in Will County, the majority of Tinley Park residents – who live in Cook County – will not receive a discount on their property bills even after the proposed 2 ½ - 5 year abatement. 

Property Tax Increases for Residents – Since the retailers listed above that are currently located within Cook County will go out of business, they will no longer be contributing to the property tax base. Therefore property taxes can be expected to go up for the majority of Tinley Park residents who live in Cook County.

Increased Cost of Police – The two closest Wal-Mart locations to Tinley Park are in Oak Forest on 159th St. and in Country Club Hills on 167th St. These locations receive 900 and 1500 police calls annually. That’s an average of three police calls per day.  

Increased Cost of Road Maintenance – The Country Club Hills Wal-Mart sees traffic of 10,000 cars per day.  Since the proposed Wal-Mart is located close to Harlem Ave. and I-80 we can expect an increase to the costs of maintaining the roads in this area.

A Proposed Alternative: Address the Actual Issue at Hand

Fix the Floodplain – Since the Village’s engineers estimate that any development on this property will require approximately 33 acres of ponds to manage the site’s storm water; The Village should invest in these improvements to the site that will allow ANY builder to move into the site without needing bargain on their tax bill to address the floodplain issue.

Cost of Improvements – The estimated cost to make these improvements should be far less than the proposed $5.4 million financial assistance package that Wal-Mart is asking for.