Posted November 1, 2006
Mira Jang, Presstelegram.com
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Chamber backs retailer's effort to give L.B. voters a chance to repeal council ban on superstores.
LONG BEACH - Wal-Mart has formed a group, whose members include the Long Beach Area Chamber of Commerce, to fund a campaign to repeal a city ordinance banning large stores that sell groceries.
A group called Long Beach Consumers for Choice, which was created by Wal-Mart, has mailed petition letters to 60,000 registered Long Beach voters and hired workers to collect signatures in an effort to place a referendum on an upcoming ballot, said Roderick Scott, Wal-Mart's public affairs manager.
"This is about consumers making the decision on where to shop," he said.
On Sept. 19, the City Council approved a measure that prohibits retailers such as Wal-Mart and Target from offering items like fruits and vegetables. Opponents say such superstores would force smaller grocery stores to shut down.
In the wake of the council decision, Wal-Mart created Long Beach Consumers for Choice with the goal of putting the measure up for a vote.
To qualify for the ballot, the group must submit, by Monday, about 20,000 signatures from registered Long Beach voters. As of Wednesday, it had collected more than 20,000 signatures and taken a poll, which found that most residents support a Wal-Mart Supercenter, Scott said.
Financed by Wal-Mart, Consumers for Choice's members include the local Chamber of Commerce, the Regional Hispanic Chamber of Long Beach, and the Associated Builders and Contractors of Southern California, Scott said.
Scott declined to disclose how much money Wal-Mart has spent on the effort, but the group filed with the city and the state a form required of all organizations that receive or spend more than $1,000.
Once the City Clerk's office verifies the signatures, the City Council could, by majority vote, repeal the ordinance or place the measure on an upcoming ballot.
That ballot could come as early as April if Councilwoman Laura Richardson wins her Nov. 7 bid for a state Assembly seat. A special election would be held to fill the potential vacancy.
If the council decides not to repeal the ordinance, it must place the referendum on a potential April ballot at a cost of up to $950,000 to the city.
Long Beach chamber officials Randy Gordon, president and CEO, and Brandon Kline, vice president of public policy and government affairs, wrote the petition letter, which called the new law "misguided" and a matter of "playing politics and limiting consumer choice."
Kline said it is the chamber's job to "protect businesses" and that the city left the chamber no choice but to petition for a referendum. Wal-Mart is a member of the Long Beach chamber.
"Our job is to protect businesses," Kline said. "The council's decision did seem hasty to me. I wasn't aware that it was coming up for a vote."
At the Sept. 19 council meeting where the ban was imposed, no one spoke during the public comment portion.
Although Scott wouldn't say if Wal-Mart had hoped to build a Supercenter in Long Beach, he said the company is always looking to serve low-income groups that benefit from low prices on a variety of products.
"The one-stop shopping experience is something that the consumers like," he said. "Customers vote with their feet."
Councilwoman Bonnie Lowenthal, one of the sponsors of the ordinance, said such stores hurt the economy.
"Wal-Mart would like to maintain a grip on commerce on cities across the U.S. and the world, but it really hurts those who are new business start-ups and existing small businesses," she said.
A 2003 study prepared for the city of Los Angeles by Rodino Associates found that superstores lower wages and benefits by as much as $8 an hour and drive out grocery stores.
Gordon said the issue comes down to politics.
"Labor is supportive of the City Council, and Wal-Mart is not union. Labor and Wal-Mart have never been friends," Gordon said.
There are Wal-Mart Supercenters in 21 California cities, including Rosemead, Santa Clarita and Stockton, Scott said.
There are two Wal-Marts in Long Beach, but neither offers groceries.