New England Public Radio

New Wal-Mart Eyed For Old General Electric Site In Pittsfield

A developer wants to build a new Wal-Mart on part of the dormant General Electric property in Pittsfield.

The $30 million project would create 350 construction jobs and add up to a hundred more retail positions in the city. The land for the project is part of the William Stanley Business Park and is overseen by the Pittsfield Economic Development Authority.

Its head, Cory Thurston, says it’s been hard to market the land given the remnants of the old GE plant on the property.

“To have a developer and have an opportunity to change that and put it back to effective reuse, put it back on the tax rolls, add jobs to the community, is really what our job’s all about,” Thurston says. “It just happens to be in the retail category that’s going to make it work.”

Whether to allow retail development at the site was issue during the 2015 mayoral campaign. Incumbent Dan Bianchi long-opposed a big box store at the business park. He lost the election.

For the project to go forward now, it needs a zoning change and environmental approval.

Massachusetts Pension Board Votes Against Re-Election of Top Walmart Executives

The Massachusetts state pension board has announced it will vote against the re-election of seven Walmart executives to the company’s board. The pension board cited the executives’ proximity to an alleged bribery scandal in Walmart’s Mexican subsidiary. 

The vote is in response to a scandal that broke in April in which Mexican government officials were allegedly bribed by Walmart executives to obtain building permits for new stores around the country. The Massachusetts pension board has voting power in Walmart board elections because it owns approximately $60 million worth of shares in Walmart.

Massachusetts treasurer and chairman of the pension board Steve Grossman, says he joins other US public pension funds, including funds in California, New York City, and Connecticut, in opposition to the re-election of the Walmart board members. He says it’s important for public pension funds to use their leverage as shareholders to influence the direction of large corporations.

“We think it’s important that public pension funds stand up and say, ‘look, we own corporate America, you don’t own us, and when you behave in ways that are antithetical to our values, we’re going to speak up,’ and we’re not going to hesitate to do that.”

The board members opposed by the pension fund include CEO Michael Duke, former CEO Lee Scott, Jr., and board chairman Robson Walton. Grossman says he does not think their removal will hurt the pension fund’s investments in the long run.

“We’re trying to enhance shareholder value, and we’re trying to motivate companies to behave in an appropriate way, and as I said, business ethics matter enormously to us, and they matter to the people of Massachusetts.”
 
All Walmart shareholders will vote on the re-election of directors in their annual meeting this Friday. A Walmart spokesperson said in a statement that all directors who do not receive a majority vote for reelection will resign.

Wal-Mart’s Tax Status Change Hurts Mass. Municipalities

A recent change in Wal-Mart's corporate status in Massachusetts has resulted in a big tax hit to host communities. Within the past year, Wal-Mart, which operates more than two dozen stores in the Bay state changed the way it is authorized to do business in the state – moving from a limited liability company, to full corporate status — a perfectly legal move, according to the state's department of revenue. Under the state tax code, LLC's must pay what's called the personal property tax to municipalities — but corporations do not.

"Things like the freezers they might have in their grocery section, some of the inventory that qualifies, some of their heating system is considered personal property."

Pittsfield mayor Daniel Bianchi says that Wal-mart keeps millions of dollars of that kind of property at its local store – and its removal from the tax rolls means a $180,000 hit to the city's revenue stream.

"When you think of it this way it represents three police officers. Actually a little more than three police officers."

Other towns contacted tell similar stories. In North Adams, Wal-Mart's changed status means the city will have to make up a $140,000  revenue loss — adding significantly to a tax hike there this year. In Northampton, it's a $65,000 dollar problem — equivalent to at least one policeman's salary, the mayor there says.

Wal-Mart officials did not respond to requests for comment. Mayors are beginning to talk about seeking a change in the tax code from the Legislature. Geoff Beckwith, executive director of the Massachusetts municipal association says it's on his agenda.

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"I'm sure the tax lawyers for Wal-Mart will get a pretty bonus for coming up with this scheme to change the tax status."

Under the new corporate status. Wal-Mart will have to pay a state excise tax, but that may be little comfort to municipal officials. Beckwith says he expects to hear from many more cities and towns about the issue at the association's annual meeting next week.

Wal-Mart Officials Not Daunted by New Setback

Wal-Mart is still planning to hold its open house tonight at the American Legion in Hadley, Massachusetts. The idea, say Wal-Mart officials, is to connect residents with the engineers and architects involved in the development of the Wal-Mart Supercenter proposed for Hampshire Mall. The event’s still on despite the fact that corporation has received another set back in its plans. WFCR’s Tina Antolini has more.