The Lower Garden District of New Orleans, a rare collection of neighborhoods, bistros, bars and boutiques, is a locale called home by many Loyola students and professors alike. But this area is on the verge of a controversial change that Loyola may have a hand in bringing about.The last resident of the St. Thomas housing development moved out in June 2001. Former residents of the area either moved to other public housing developments, took Section 8 vouchers or moved to other housing not subsidized by the Housing Authority of New Orleans.When Historical Reconstruction Incorporated was selected as developer in Oct. ’98, approximately 750 families lived on site. Sixty-three acres are now ready for redevelopment.The LGD is not just unique to New Orleans, but unique to the United States, which during the past two decades has undergone a wave of suburbia, an almost inescapable spreading of parking lot after parking lot divided by as many Taco Bells and Citgos as can be stuffed between. The white vinyl “NO Sprawl-Mart” signs dotting the balconies and glass front shops of the Irish Channel, the vaguely defined retail section of the LGD, proclaim their aversion for the nationwide harbinger of suburbia – Wal-Mart.Though the signs are beginning to tatter, opposition to the retail behemoth they challenge has only grown stronger after six months of resistance. Merchants and residents feel they’ve been offered a “take it or leave it” plan by the HRI, according to Barry Schlaile, president of the Historic Magazine Row Association.The 55-member organization encompasses merchants from Jackson Avenue to Interstate-10.”It’s just not appropriate for this neighborhood,” Schlaile said. “The size of that project, 200,000 square feet, in a neighborhood where the average retail establishment is going to be 5,000 square feet or less, is just totally out of scale.” The current plan is to place a 217,000-square-foot Super Wal-Mart on Tchoupitoulas Street. Drainage problems caused by the 900 car parking lot Wal-Mart is requesting, the widening of streets, and spillage of traffic are just a few of the other problems Schlaile is concerned about.Other merchants on Magazine, commonly those not associated with retail, do not share Schlaile’s sentiment. Clay Wallace, owner and operator of Mystic Café and son of Loyola’s vice president for Student Affairs, Jim Eiseman, doesn’t see eye to eye with a few of the shop owners he shares the neighborhood with.”I am totally for the new Wal-Mart,” Wallace said. “I don’t think it’s going to hurt the small businesses.”Have you been in the Funky Monkey (custom clothes shop across the street)?” Wallace asked. “They sell wigs and silk shirts. They don’t sell Mop-n-Glo. I don’t really anticipate them being hurt by the development.”Wallace’s customers consist mainly of local Garden District residents, many of whom are students. The restaurant does little advertising. Wallace said the traffic created by Wal-Mart would only benefit the area shops in addition to reducing crime.Sarah Moppin, political science junior and LGD resident, said she sees the Magazine street clientele as indifferent to the wares of Wal-Mart.”It’s ridiculous to think that someone wouldn’t spend their money in an antique shop because they could go to Wal-Mart and buy lawn furniture,” Moppin said.Moppin said she sees these shops catering mostly to tourists and residents with large amounts of disposable income.”People who shop at the specialty shops go there to specifically shop at those shops,” Moppin said. “I don’t think it would hurt the stores.” Other residents are taking the historical aspect of the area into perspective. “It think it would change the complexion of the area,” said Barbara Brainard, assistant professor of visual arts and LGD resident for the past 20 years. “A retail store of that size would have to change the traffic flow of that area.””Take, for example, the Rue De La Course coffee shop (locally owned coffee shop at the corner of Magazine and Race Streets),” Brainard said. “It’s sleepy down in that area. I don’t see how it would enhance the ambiance as you sit outside and drink your coffee.”

Economic Developer?Other owners and employees in the LGD might not see the economic sweep affecting their businesses, but according to Michael T. Saliba, associate professor of economics here at Loyola, they should probably keep a watchful eye if Wal-Mart is built.Saliba, familiar with the plans and actions preceding the development, said one study he found said that Wal-Mart will employ up to 500 people. Only 50 of those will be net increases, Saliba said. The other 450 will be jobs lost by other businesses.Saliba also said that the idea of Wal-Mart as an “economic developer” for the city is incorrect.”There’s something wrong with this picture,” he said. “This (plan) is said to be economic development. What economic development comes from putting a new retail store in town?Many businesses will lose a little bit of sales, because those sales will go to Wal-Mart. People aren’t going to buy that much more.”

Loyola in the mix The expanse of land along the river is ripe for other forms of business.One plot, acres down from the gray cinderblock Wal-Mart, has already been reserved for what HRI calls “a 312-unit facility that will offer housing to independent elderly, assisted living and nursing care.”The retirement community, a project from the minds at the Roemer Development agency based in Baton Rouge, picked up two local sponsors before presenting the plan – Tulane and Loyola University.”Loyola has always had a strong history of involvement with the city,” said the Rev. Bernard Knoth, S.J., university president. “Much of our work has been focused on founding … sustainable businesses, which in fact can take people who might have limited skills and get them into continued employment positions. I see Wal-Mart as an extension of that belief.”Would it be wise for Loyola to become involved in such a controversial political issue, though?One argument is that the area is supposed to be a mix of housing, but plans so far list the types of housing as middle-to-higher-income priced apartments and condominiums.

Unfair advantage?The major controversy surrounding the development, however, is that Wal-Mart will receive unfair economic advantages.HRI wants to divert city sales tax dollars to finance this project through Tax Increment Financing and Payment In Lieu Of Taxes programs.If passed, then for 20 years or more, 3 1/2 cents on every dollar spent at the Super Wal-Mart will not go to the city, but will instead go to HRI to pay off bonds issued to cover a gap in their financing.”I think taxes are much too high now, and they should be lowered significantly, but for everyone,” Saliba said. “This includes small businesses up and down Magazine that feel threatened, and big businesses like K-Mart and Sav-A-Center.”On average, Magazine Street merchants pay a 100 percent to 150 percent property tax. Wal-Mart is asking for a 70 percent property tax. “It is not fair to give a tax break to one firm that you don’t also make available to others because they’ve got to compete with one another, and Wal-Mart’s getting an unfair advantage,” Saliba said. “The anti-trust laws were created to prevent unfair advantages and here government is promoting unfair advantages.” Knoth did make it clear that it was an individual decision to go on record as a supporter of Wal-Mart.Knoth said he sees another entry-level employer to the city as advantageous to New Orleans and the retirement village beneficial to Loyola Alumni who might be looking to retire in New Orleans.”Our agreement is to send a letter to alumni, and let them know that this new center is going to be developed,” Knoth said. “What they’re looking for is basically address lists, which colleges and universities both have. It’s a one-time use of LU’s list at Roemer Development’s expense.”Roemer Development, which recently completed a similar project in Baton Rouge with the LSU Alumni Association, is headed by Charles Roemer and former Louisiana Gov. Budd
y Roemer.Despite the possible sponsoring of the undoubtedly well connected firm, Knoth claims that it is Loyola’s policy not to take stands on political matters.”As an institution that has a religious basis, I think we have to be careful about mixing business and politics,” Knoth said. “One reason is in the end, we have to deal with whoever is in whatever office, whether it’s a U.S. senator, a U.S. representative, city council or the mayor. We have to do business with them.”Knoth said HRI’s claim that Loyola’s sponsorship is definite is nuanced, and that the matter will be decided only after much discussion, and rightly so.

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