(November 2003) As part of the Center on Policy Initiatives' efforts to promote sound economic development and land use policy in San Diego, this study looks at the impact of a large subsidized development on the local community and the region.

In this report we examine the impact on the community and the region of the College Grove Redevelopment Project - which includes a Wal-Mart and Sam's Club. This project received $13.4 million in the form of public assistance, including $9.5 million for Wal-Mart. We look beyond fiscal impacts and incorporate an analysis of the impacts on employment, housing, neighborhood services and the environment.

In each chapter of this report, we raise a number of questions about the project's impact and if it was the best for the community. Overall, a number of significant impacts stand out:

• The city spent nearly $14 million in assistance, Wal-Mart receiving nearly $10 million.

• There is a net fiscal return from the project annually, but this is significantly offset by other costs.

• The majority of the jobs pay below a self-sufficiency wage and just above half of the employees have employer provided health care.

• The project design is bad for smart growth planning and contributes to sprawl due to increased traffic.

• There are significant impacts on small business.

• The project does contribute to affordable housing indirectly through the set-aside of affordable housing funds administered by the Redevelopment Agency, however, the project also eliminated lands for potential housing in the local community.

Contact Natalie Nava at 619-584-5744 x 24 or natalie@onlinecpi.org for more information or to order hard copies of Subsidizing Wal-Mart.