There has been a lot of interest in getting a Wal-Mart (Kroger, HEB, Texas Roadhouse, Home Depot, whatever) out here in our fair City. I get questioned a lot about it.
Here's the thing about economic development - especially, retail/restaurant development. The decisions that are made about where to locate a store have really very little to do with the efforts of the local municipality. Sure, they like things like roads, traffic lights, access to freeway, etc. But when you get right down to it, these things are market decisions made by people who are ALWAYS looking for places to expand. They're cautious, and they're careful, but they want to expand just as much as we want them to.
If what the municipality does seems to not make much of a difference, what ARE retail establishments interested in?
First, they are looking for population. The average big box is 150,000 square feet (!). That represents a huge investment for the company. But even more than that, they do not like to consider getting into a market only to have the store fail. It just looks bad for the company overall. The base number that I've heard is 30,000 people, or about 10,000 households. The Census numbers that just came out puts the population for the entire County at right around 35,000. This means that the entire County would have to live within striking distance of the proposed retail establishment. Studies also show that people will drive about 20 minutes to get to a store, unless it's a destination type store (a specialty store, for example). That encompasses about everything from Anahuac on the east to Garth Road on the west. Everyone knows what's on Garth Road, so that's a bit of a problem...
Next, they are looking for proximity to additional services of the same nature. This means not only competing stores, but even stores of the same kind - a Home Depot does not want to locate too close to another Home Depot, for example. I heard further that a place might not want to come out to an area because of saturation with one particular brand or another - Costco would not want to locate where there are many Wal-Marts/Sam's Clubs because the market already recognizes those brands, not Costco...
Retail establishments also look for where development is happening. Mont Belvieu and west Chambers County has experienced substantial growth in the past few decades, but the numbers, while impressive, are misleading. A population of 200 could double in one year to 400 with the addition of just 70 homes. That would seem like a lot, particularly compared with what the community's size was initially. But when a company is looking for 10,000 homes, the addition of 70 homes is not a big impact.
So what is the City doing to promote itself and appropriate growth? Don't we want the area to grow, also?
Yes, we do. We are doing a lot to help foster an appropriate environment for growth. Many of the City's infrastructure projects are at least indirectly aimed at getting people to take notice of the City. Particularly, the new water tower and associated water well, the sewer line improvements, and Eagle Drive expansion are all things that will impress future and potential prospects. The City has also recently authorized close to $2 million for a regional detention areas, which will allow better and more efficient use of land for development of all kinds. These things represent around $25 million in investment by the City in handling anticipated growth.
The new City Park, while not directly impacting businesses, per se, also demonstrates the City's interest in creating a positive community image. This attracts developments of all kinds, residential, commercial, and industrial. It also encourages people from around the area and region to come see what is going on out here.
The City Council also recently authorized a study of demographic trends in the City with a heavy emphasis on attracting new development to the City. This report will demonstrate which retail establishments are a good fit for our community and how to best contact these companies to promote our City. The results of this report should be out very soon.
Finally, we are seeking to create an atmosphere where all businesses, both those who've already invested so much in our community, as well as those who are seeking to locate here, can succeed. This can be done in many ways, including appropriate aesthetic regulation, zoning and subdivision ordinances, and other infrastructure improvements. As we work to create an environment where businesses can thrive within appropriate guidelines, the community will continue to develop and attract high-quality businesses that are here for the long term.
So, to answer my own question, I don't know when/if Wal-Mart (Kroger, HEB, whatever) will be coming to town. I'll be sure to let you know when I do!
