Walmart proposal appears to gain momentum, as neighbors say they don't want part of the land used for mixed-income housing
More than 250 people turned out this week to learn about two competing proposals to redevelop the long-vacant Gentilly Woods Shopping Center, one from retail giant Walmart, which wants to build a 116,000-square-foot store on the site, and the other from Michaels Development Co., which is proposing a combination of smaller-scale retail and 135 mixed-income apartments.
View full sizeThe Gentilly Woods Shopping Center was photographed in May. The Thursday night meeting was hosted by the New Orleans Redevelopment Authority, which bought the strip mall at Press Drive in 2009 for $4.2 million, with the aim of giving neighbors in Pontchartrain Park and Gentilly Woods influence over the area's commercial hub.
After Thor Equities, the original developer selected for the site in 2008, failed to make progress with its plans, NORA issued a second request for qualifications in March, drawing three proposals.
Walmart and Michaels met the criteria for consideration, but Thor, which attempted to win the deal a second time, fell short of meeting the agency's financial bar, according to Joyce Wilkerson, NORA's executive director.
Although Michaels' proposal includes the kind of small-scale retail that many neighbors want, several at the meeting said the mixed-income housing component is a deal killer.
"We don't need another mixed-income housing development -- we need services," said Keith Carter. "If Michaels was going to develop it as all retail, I'd have a different opinion. Why do we need more affordable housing? That's how they ruined New Orleans East."
If chosen, the company would also have to structure a financing package, which could combine public and private money with New Market and other tax credits, according to Milton Pratt, Michaels' senior vice president of development.
Walmart, on the other hand, has the cash on hand to redevelop the site immediately.
Michaels, based in New Jersey, has an extensive record in developing affordable housing throughout the country, including the former Desire housing project in New Orleans. Pratt told the crowd that small-scale entrepreneurs, like those formerly located in the Plaza or in the Gentilly Woods site, would be targeted as future retail tenants, and that his company would meet with neighbors to incorporate their desires into the development. He also emphasized his company's track record of working with disadvantaged businesses and employing local residents.
In contrast, Roger Thompson, who presented for Walmart, appeared to aim his pitch at debunking common beliefs about the superstore retailer.
"Some people say that Walmart brings crime into neighborhoods, but the fact is that our security people are very successful at apprehending criminals, so the crime statistics around our stores appear higher," he said.
Thompson also tackled issues of diversity, competitive wages and career advancement when he reported that Walmart is the "leading employer in the United States of women, African-Americans, Hispanics and people over 50," and that the average hourly wage is $12.85. According to Thompson, 70% of management started their Walmart careers as hourly employees.
When asked whether they had a favorable impression of the Walmart proposal, the vast majority of those in attendance raised their hands, representing an about-face on the part of many neighbors, who expressed opposition to Walmart redeveloping the site early on.
"If I was forced to pick one of those two proposals, I'd have to go with the Walmart because none of us want the apartments that Michaels was talking about," Carter said. "But they really didn't give us enough choices."
A mix of small retail and services is what residents want and need at the site, Stephanie Carter added.
"That's exactly what we had before Hurricane Katrina," she said. "Why can't we go back to that? It's the best thing for the neighborhood."
The decision about which of the two entities, if either, will win the job will be made by the NORA board of directors, chaired by former City Councilman Jim Singleton, after receiving a recommendation from the agency's development committee.
"I want to emphasize that the staff is going to go through the comment cards you submitted tonight, present their findings to the development committee, then the committee will make a recommendation to the board," Singleton said. "If we decide one of these proposals is sufficient to move forward, the board will make the decision."
In the meantime, residents are eager for work to begin.
"It's been years and I still have to go to Jefferson Parish to spend my tax dollars," Keith Carter said. "I want to spend them here, in Orleans Parish."
Sheila Hyde said she still has concerns about having a 24-hour Walmart immediately adjacent to a residential neighborhood.
"Those homes on Stephen Girard (Avenue) back up to that site and the Walmart will bring down their property values," Hyde said. "It's the wrong place for a big store like a Walmart; they should be looking at the old Schwegmann's site instead."