Council Update: Walmart Borrowing Put Off With Procedural Maneuver

Approval of the city’s planned borrowing of $1.5 million to fund cleanup and other costs related to the Walmart development will have to wait.

On Tuesday, Aldermen Craig Maass and Frank Van Dusen III endorsed a motion to “hold over” the agenda item calling for the introduction of a resolution authorizing the issuance and sale of $1.5 million of bonds.

This is a little-used procedural play that requires, with a simple motion and second, an end to all debate about an issue and forces the item in question to be considered at the top of the next council meeting. Our next meeting — a special meeting called to approve some public works contracts – is April 4, although it’s unclear if this measure will be heard then, or if it will wait until our meeting on April 17.

I’ll keep you posted.

I am disappointed in this procedural move — which is truly the “nuclear option” when it comes to local legislating, an option I’ve seen used just once before in my tenure as an alderman — because I support the borrowing, just as I support the Walmart plan. And I’m concerned that putting off the issuance of the promissory notes could cost the city additional money in interest and time spent by our financing firm working on the new timeline.

Of course, I’d like to know what you think. Post your comments below.

One additional note: The other items relating to city borrowing on Tuesday’s agenda all passed. I’ve posted about these in the past. Learn more here and here.

22 Comments

Filed under City Council, South Milwaukee Walmart

22 responses to “Council Update: Walmart Borrowing Put Off With Procedural Maneuver

  1. Randall Gosh's avatar Randall Gosh

    What is wrong with these two? The majority of the people in SM want this Walmart. They’re acting like spoiled little kids because they couldn’t get their way. Reminds me of some other agitators we’ve had to deal with in this state.

  2. SM Guy's avatar SM Guy

    What are the start dates for the terms in SM? Is this a ploy to buy time in case the anti-business write-in candidate for mayor elected and then use him to stop Walmart?

    • Terms are two years, and the aldermen are sworn in at the first council meeting following the election (April 17). Not sure about mayor. I’ll check. Still, from what I know about Mike Moeller, he’s not anti-business. He’s the president of Remy Battery in Milwaukee, and I think he’s pro-Walmart.

      • SM Guy's avatar SM Guy

        I hadn’t read your other post when I commented here. I don’t know too much about Mr. Moeller or even that he was running. He was not the write-in I had in mind. There is another person who is blanketing the northeast corner of the city with signs…primarily on properties of those known to be anti-Walmart and he was part of those vocal about it. (He still has a sign in his window, even though most people took theirs down). His home borders business districts in both cities and had previously complained about the lights of another business on an adjacent (across the alley) property, a property that was always zoned business.

        From what you said in your initial post, and taking a guess that the mayor follows the same procedure as the aldermen, it looks like there is a chance that the new one “could” be involved.

        Which brings us to the next question. Since it doesn’t look like other aldermen are in jeopardy and the two from the first ward are already at odds with the city, what sort of damage could a new mayor do? I guess that really comes down to the definition of mayoral powers?

      • To close this loop, I checked with the city clerk, and elected officials are typically sworn in within a week to 10 days of the election after the results are certified. This is likely to happen before the April 17 council meeting.

  3. I would like to go on record as FOR the Walmart and state that I have been FOR the Walmart during my first campaign for 1st District Alderman. I would like to take a moment to outline several reasons why I am FOR the Walmart.

    First I would like to point out that the School District of South Milwaukee has a student population in which 40% of the students in the District qualify for free or reduced lunch. This does not mean that the entire 40% takes advantage of this program but it does give a leading indicator of the parent population’s annual income. As we all know and have heard many times over, Walmart is notorious for employing “part time” workers. Part time employment is not bad nor is it good; it is employment for individuals that are looking for part time work. Many students and parents in the community could benefit from picking up a part time job that would fit into their parenting or school schedule to help support their families or earn some additional money to continue their education beyond high school. For this large segment of the population in South Milwaukee Walmart becomes a real opportunity to advance themselves. Clearly we should not deny these parents or students this opportunity.

    Next, with the right civic leadership in place, Walmart can become an excellent corporate citizen in South Milwaukee. Not only do they have programs for their employees to earn opportunities to continue their education they are also very proactive in promoting from within not to mention the “community feel good” activities like donating to the local sports teams. I recommend reviewing their corporate web site at http://www.walmartstores.com for many other programs they have on becoming a good corporate citizen. Also as part of becoming a good corporate citizen they will be paying taxes. Yes, the City may be kicking in some money to prep the building site but this money will be recouped through property taxes assessed to Walmart over a 5 year period. Plus, it takes vacant, polluted industrial land in South Milwaukee and cleans it up and turns it into a tax revenue land helping to increase the tax base. To me this is a win-win and very similar to the recent activity that West Milwaukee has done along the Miller Parkway corridor over the past 10 years. The Miller Parkway corridor has a Menards, Pick-n-Save, Target, numerous strip malls supporting small businesses and franchises and is continuing its growth with an AutoZone regional distribution center, a Fresh Market Foods, and they are finally adding a Super Walmart to their mix. This redevelopment has been an economic boom for West Milwaukee and for the businesses that had grown up with the community and yes, it has also help attract industrial and manufacturing businesses to the area. My question on this point is why the civic leaders in South Milwaukee have not approached leaders in West Milwaukee to get ideas on how West Milwaukee achieved their success? South Milwaukee and West Milwaukee are both smaller, land locked communities. Let’s not reinvent the wheel, let’s move forward by using the wheel.

    The final point I would like to address is competition. I have been successfully competing against Walmart with my business for over 20 years. Before that my father and grandfather had to compete against Sears. In business in the United States of America there is always going to be competition. Those that create, innovate, attract talent and build new, more efficient business models will compete and succeed. Those that do not will fail. Today Walmart is the largest retailer in the Country and the World. It was not so long ago that Sears held this title but today Sears is on the verge of bankruptcy. It is neither good nor bad that Walmart is succeeding nor is it good or bad that Sears is failing it is just how businesses grow and die. Walmart is a USA based company expanding into rapidly expanding economies like China and India and I would much rather see a USA based company expanding into China and India’s economies than a similar Chinese or Indian company expand into our Country and community.

    Business, like government, can be complex and without the right leadership can lead to success or failure. I look forward to your support in the coming election.

  4. Rick's avatar Rick

    When can we officially circulate recall papers for Van Dusen and Maass???

    • No need. Write in Mike Moeller for 1st District Alderperson on Tuesday, April 3. And while you are at it, don’t forget to write in Mike Moeller for Mayor too.

      • SM Guy's avatar SM Guy

        I’m strongly considering doing that for alderman, in an attempt to get one of those clowns gone. I’m leaning toward a no on the mayor, though. Sorry! I’m afraid of splitting the vote and the “other” guy sneaking in.

  5. Forward!'s avatar Forward!

    I completely support Maass and VanDusen here! I want to know where this city’s money is going and I don’t want to haphazardly throw it at some big-business’s interest. In addition, I think this is a step in the right direction of re-informing and re-invigorating the SM’s poltical life. As a consituent, I don’t want the city goverment making multi-million-dollar legislation without any say or information handed to citizens. Maybe this is a step closer to seeing something akin to a SouthMilwaukeeNow again.
    @SM guy, that write-in you’re talking about is named Todd Lorino. And my vote is for him! He seems forward thinking in wanting to preserve Grant Park and he is NOT anti-business. In fact, one of his main goals is to reinvigorate Milwaukee Ave. I would love to see that area become reminicent of the small shops in Cedarburg!

    • Forward! – Maass and VanDusen clearly knew where the City’s money is going. This has been spelled out for weeks, even months. And if you want to know where the City’s money is going then pick up a budget and spend some time reviewing it – clearly it is in the public domain. If anything, both Maass and VanDusen have cost the City, and taxpayer, additional monies related to increasing interest rates on the bonds the City has applied for and has been granted thus causing the City to take a step Backward. In addition, their move on Tuesday evening cut off any further discussion on the topic. If you wanted more public input on this decision their action completely eliminated that opportunity. Their decision does not speak for the majority of the City nor does it speak for the 1st District. If both Maass and VanDusen would spend more time walking the streets and talking to residents they would know that the decision that they had made on Tuesday evening was a mistake.

      If there is a vocal group that is not going to allow a particular type of business to establish within a community then maybe there ought to be a vocal group that insists that any home owner that owns a house that is currently painted white should be required to paint their house purple. Either way you will end up with a community with no businesses and full of purple houses.

      Milwaukee Ave.being compared to the shops in Cedarburg is a whole other debate that, without other larger destination businesses like Walmart, will never happen. This has been talked about for years and it will NEVER happen unless you have the right anchor business, like Walmart, in a community. The fact that Walmart even considered South Milwaukee should give the community hope that the Community can potentially attract additional small independent businesses. The fact that I have lived in this community since 1999 I can safely say that there are more empty store fronts on Milwaukee Ave. than when I first moved here. This is only one component that can potentially help a renaissance of Milwaukee Ave. With the right leadership a renaissance of Milwaukee Ave. is possible but under current conditions it will continue to remain exactly how it stands.

      • love my SM's avatar love my SM

        Mike, right on. The thing I continue to think as I drive by the empty Kmart in Cudahy, if there was a larger store nearby less people would drive out to Howell for all of their tolietries and little items. The reason why people go out to Howell is that there are several businesses all in one concentrated area.They might stop at the local coffee shop or other eateries nearby instead of spending all of their money in Oak Creek.

        I for one am not a big WalMart shopper, but I see the value in bringing a business in the area that will employ our local residents, including seniors and teen in addition to bringing tax revenue into this city.

        I have lived here for 40 of my 41 years, we are never going to be a Cedarburg. Why should we try, we should be rather proud of the identity we have. Drive around on a Saturday, we have banks, beauty and barber shops, a great library, coffee shops, restaurants,taverns, a busy martial arts studio, and a new art studio. The only thing we could really use is a music store like the old days.

        I am pretty proud to live here. Bring on WalMart.

    • Rick's avatar Rick

      We have heard about reinvigorate Milwaukee Avenue since the 60’s… It has not happened and will not happen. SM will never become a “Cedarburg”. AND don’t forget that Cedarburg residents do not like what is happening there, such as traffic….Dream On!!!

      Van Dusen and Maass need to go. They are only special interest alderman.

      • Forward!'s avatar Forward!

        @Rick Your lack of confidence in this city is disturbing. And I don’t think listening to and reacting phone calls and emails from constituents would be considered representing a ‘special interest’.

        @ Moeller Okay, here is an idea, if we really want to see what the majority and the minority of the city wants, we should take a vote. People (myself included) have been assuming what the majority is.
        The average Joe is not going to pick up the city budget and review after an 8 hour work day. There’s a reason this sort of action is allowed to take place; it’s a lot of money and people want to think about it.
        Also, there were some leaps of logic there…how does this correlate to dictating what colors people can paint their homes? Spell out your argument.
        I don’t know how much you shop, but Wal-Mart doesn’t usually make an anchor store. People don’t shop there and then think “oh, now I’d really like to patronize some boutiques.” They go there, do their shopping and go home.
        Not that anyone has mentioned this yet, but it also seems likely that it would drive out Pick N Save and Walgreens. I have heard some people blithely say that driving those stores out doesn’t matter because it’s in Cudahy. That’s asinine. It employees South Milwaukee-ians and likewise, the Wal-Mart would employ Cudahy-ians.

  6. It is not a lack of faith, confidence or love in the area. I have seen this over and over in the area’s residents. As a matter of fact, this is what drew my wife and I to the area to raise our childeren. What is lacking in the area is leadership, a comprehensive plan and a focus to achieve this plan. The reason why there is so much back and forth on the topic of Walmart is simply due to the frustrations of the residents with the lack of direction and lack of a plan, so when something big happens, like a Walmart moving into the area people will place their frustrations on this big hapening.

    Consider this for a moment, what are people really frustrated about in this community? Is it safety? I know I am very concerned about safety right now. Milwaukee County gave permenant layoff to 2 Sheriff Deputies that were dedicated to patrolling Grant Park. In addition, the City recently accepted the retirement of 1 police officer and the resignation of 2 additional police officers. So, currently our community has 5 fewer police officers in the area. Now, let’s put this into an emotional argument like “Walmart brings additional crime to the area.” Walmart does not bring crime to an area, opportunity brings crime to an area. The opportunity is that criminals know that there is fewer police in the area and therefore they have more opportunity to commit and get away with crime. What people should be asking here isn’t “Does Walmart bring more crime to an area?” but rather “How is the City going to deter crime when the community is currently short 5 police officers and what are the City’s PLANS to accomidate possible crime through growth of the City by the addition of Walmart?” The side that is against Walmart, in whatever community it is moving into, uses emotional arguments and attemps to apply logic to an emotional argument in order to win over the majority and create momentum to a illogical minority position. This can be and is being applied in the Walmart coming to South Milwaukee. I’ve heard them all… more crime, more traffic, more runnoff, more noise, more lights, etc. All of them can be very emotionally charged and whip people up which brings me to white houses vs. purple houses and I would like to thank Forward! for asking about this statement so that I could expand on it.

    For the past 4 years I have been working on trying to get through a book called THE BLACK SWAN The Impact of the Highly Improbable by Nassim Nicholas Taleb. It is a very good read but really streatches your thought processes and causes me to have to reread sections several times. The basic premise, and I’m parafrasing from the book here, is that humans are hardwired to learn specifics when they should be focused on generalities. We concentrate on things we already know and time and time again fail to take into consideration what we don’t know. We are, therefore, unable to truly estimate opportunities, too vunerable to the impulse to simplify, narrate, and categorize, and not open enough to rewarding those that can imagine the “impossible.” In short, we make large decisions on over simplified, emotional thoughts and feelings.

    Now, let’s remove having vs. not having a Walmart from the above arguments and replace it with white houses vs. purple houses. For example, I could tell you that more criminals live in white houses and therefore to control crime in our area we should require all home owners to paint their houses purple as a way to reduce crime in our area. Clearly we know that this is foolish because the most popular color used on houses is white and that just painting them purple will not reduce crime. But, create some statictics showing how many criminals live in whte houses and how few criminals live in purple houses then circulate this amoung the population. Then show pictures of a bunch of crimes being committed in white houses, show criminal’s mug shots in conjunction with the white house in which they live and next thing you know you will have a movement to require homeowners with white houses being forced to paint their houses purple.

    Forward! belive me when I tell you this, Walmart would not put a store in this community if their research didn’t tell them that putting a Walmart in this community would not be profitable. It does not matter how much you or I shop there, it matters if there are enough people in the immediate area shop there to make the store profitable. If their research did not tell them this they would not be putting a store in this community. We, as consumers, vote with our dollars. So, Walmart has made a very calculated and thought out decision that tells them that there is minimual risk of failure and that there will be a large enough group of people in the area that will vote with their dollars and make the store profitable.

    What our elected officials should be doing is making business contacts, working on, and implementing a plan that will attract more businesses to the area which will help to diversify the type of shopping and type of business in South Milwaukee giving all increased opportunity. By our local government having the leadership in place that can do this will reduce the overall economic risk of all its citizens. The current leadership cannot do this.

    On the point of Wallgreens and Pick-n-Save going out of business, I can garantee that neither of them will close their doors in South Milwaukee or Cudhay. As a matter of fact, their same store sales will likely increase due to the increased shopping convenience and awareness brought to the area by Walmart. Both of them are very sofisticated businesses and know what they need to do in order to compete with a Walmart in a market where they have a store. Existing small business, if they are willing to adapt and change in order to compete (and this doesn’t mean that they have to necessarly lower their prices or be less profitable), will see their sales increase dramatically. Those that don’t will close down and will be replaced by other small businesses that know how to thrive in the same area of a Walmart. This is what is meant by an anchor. The only other business that I would see would be at risk would be Kmart/Sears Outlet but this would have less to do with Walmart coming to the area and more to do with Kmart/Sears nationally being financially unsound. Area leadership should be recgonizing this and should be proactive in working on attracting other box stores showing that if Walmart recognizes the pent up demand in the area that other box stores are overlooking this pent up demand and should be locating a store here.

    Our current local government is far to reactive and not being proactive by having a mission, vision and having specific goals and objectives to implement this mission and vision. The local citizens need to be a a major part of this process so that the local government can carry out what the citizens see for the community. This is the underlying source for much of the heated debate on the single issue of Walmart and I do not see the current civic leadership in solving problem and why I am running for Mayor and for 1st District Alderperson.

  7. Shift Enter's avatar Shift Enter

    Although I see some of your points, you didn’t really need to write a novel to explain them. Please be concise so that you logic is easier to follow.

    But I stand by Maass and Van Dusen’s decision. It would be a shame if delay ended up costing us more money, but I think it’s even more of a shame that it’s costing us so much money to begin with. If Walmart’s research says this is such a good idea, oughtn’t they to foot the bill? Why are we giving money to a multi-billion dollar business to set up shop in our city?

    As for the majority being for Walmart, I agree with Forward! that a vote should have been taken. I don’t personally live very close at all to the potential site, but have not been for the Walmart to begin with. Who knows who the majority is unless they ask?

    • Shift – I will work on keeping my comments more condensed but it is difficult showing logic without explaining them or giving examples. Read something that is longer than a blog sometime.

      Great that you stand by Maass and Van Dusen. I know, and represent many in the 1st District that don’t support their decision. As a matter of fact, if they were truly out in the community listening to residents they would realize that there is a very large group in the 1st District FOR the Walmart.

      Next, for the love of GOD, and to be more direct – the City is NOT giving Walmart money. This ignorance completely dumfounds me. To be brief and to avoid writing “a novel” I would refer you to my comments posted at: https://southmilwaukeeblog.com/2012/03/30/direct-legislation-push-seeks-referendum-on-capital-projects-costing-1m/#comments

      In short, the City get’s it money back.

      • Shift Enter's avatar Shift Enter

        Thank you for that. ^_^ I’ve read many things longer than this blog, but I find it difficult when the subject isn’t of interest to me. This isn’t a jab at all; what I’m saying is that although I find politics important, I don’t find them interesting. I hope you won’t peck at this flaw in my character.

        I have read your other postings, and will direct my comments on said postings to their appropriate locations. >.>

  8. sm ok's avatar sm ok

    Erik,
    I know you take a poll on the different issues. Do you happen to have one on the building of the Wal-mart? if so, what was the result from the poll? I also read you had taken a walk in your own district and there was a 2-1 for Walmart being built. I also know Mr. Moeller spoke to many residences regarding the Walmart issue in the first district during his first campaing for Alderman. I would be curious to know what the results of him going door to door in the first district compares to other districts or what results Van Duesen and Maass received by going door to door.

    sm ok

    • SM OK: I have taken polls on the Walmart issue at various points, using this blog and going door to door. All asked a variation of the questions, “Do you support construction of the Walmart?” or “Did the council do the right thing in approving the Walmart?” Answers varied by time — and certainly became more negative as opposition became more organized.

      In October of 2011, when the store was first proposed, respondents were overwhelmingly in favor: 143-64. In August of 2012, it was 27-19 in favor. By October of 2012, it was 60-23 “no.” In December of 2012, it was 64-37 “no.” So, taken as a whole, results were inconclusive — not to mention the fact that the polls themselves are far from scientific.

      I put more stock in the poll (again, non-scientific) I personally took in the weekend before a key vote. I reference those results here: https://southmilwaukeeblog.com/2011/11/01/walmart-gets-final-approval-from-council-%E2%80%A6-and-why-i-voted-yes-amid-the-shouting/

      And I continue to believe that, in the Fourth District, there is more support than opposition for the Walmart.

  9. Pingback: Direct Legislation Push Seeks Referendum On Capital Projects Costing $1M+ | South Milwaukee Blog

  10. Hello.

    I’ve taken the liberty of downloading and combining the factsheets located here:
    http://makingchangeatwalmart.org/factsheet/

    Here is the document for your reading enjoyment:

    Click to access all_making_change.pdf

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