Denied Wal-Mart, developer sells site
CHATHAM | Alderman bemoans city's rejection of Supercenter, 600 jobs
A former Chatham industrial site that was supposed to house Chicago's second Wal-Mart -- and first Super-center that sells groceries -- has been put up for sale by a developer whose hands were tied by City Hall.
Two months ago, Planning and Development Commissioner Arnold Randall rejected Archon Development's request for administrative approval to build a 150,000-square-foot Wal-Mart at 83rd and Stewart.
Randall's decision left Archon with only three choices: Put the property up for sale; file a lawsuit on grounds that the city's decision discriminates against Wal-Mart or push for a City Council replay of the political donnybrook that gave birth to the vetoed big-box minimum wage ordinance.
On April 17, Wal-Mart and Archon met privately with Randall. They were told that Mayor Daley was determined to avoid another "bloody battle" with organized labor that might disrupt the long-term labor peace carefully crafted to bolster Chicago's bid for the 2016 Summer Olympic Games, sources said.
As a result, Archon chose the political path of least resistance -- by putting up a "For Sale" sign.
"We are actively pursuing sites in the suburban communities to serve our customer base" in Chicago, said Roderick Scott, Wal-Mart's regional vice president for community affairs.
Scott noted that Chicagoans spent $500 million last year in Wal-Mart stores that ring the city, $80 million of it from the 21st Ward, where the Supercenter would have been.
Archon officials could not be reached for comment.
Ald. Howard Brookins (21st), whose ward includes the Chatham Marketplace, bemoaned the "missed opportunity" for 600 permanent jobs, 1,500 construction jobs and sorely needed shopping choices.
"I don't think there's a rational basis to deny Wal-Mart from coming. The redevelopment plan contemplates another retailer at that location the same size as Wal-Mart. That says, 'We are not welcoming you, and we don't want your money,' " Brookins said, urging the developer to file a lawsuit.
The alderman tied Archon's reluctance to fight to the developer's parent company. "Goldman Sachs owns them. They're in the bonding business. They're afraid to step on any toes. They're afraid they may not get other financial business from the city. They've lost a tremendous amount of money on that site. I can't see any other reason why they would walk away without a fight," Brookins said.
