Council Approves $240K Tax Break for Sam's Club

By a 6-2 vote Thursday, City Council approved  who is building a Sam's Club at 1725 34th St. 

Despite a vocal opposition to the tax break from local small business owners and organizations, council said a Sam's Club at that location would be good for St. Petersburg. 

Council member Jeff Danner said 34th Street has a bad reputation and that corridor is hard to develop because of that. Sam's Club, he said, could help surge development in that area.

"I'm encouraged Walmart is doing this," he said.

The city of St. Petersburg and City Council were legally required to approve Sam's Club proposal for the parcel to be designated as Brownfield site if it met all Brownfield standards, which City Attorney John Wolfe said it does.

Council members Karl Nurse and Steve Kornell were the two 'no' votes on the tax breaks. Nurse questioned quality of jobs that Sam's Club would create. 

The tax breaks on a Brownfield site is supposed to help the developer offset the costs associated with environmental remediation and clean up. 

For each job created at that location, Sam's Club could receive a $2,500 tax break. According to its proposal, the company said it would create 120 full-time equivalent jobs with an average wage of $20,000 a year. 

$2,000 of those tax breaks would come from the state, and $500 would have come from the city but because of the low salary level of jobs, St. Pete is opting out of the $500. That means Walmart and Sam's Club would receive up to a $240,000 tax break. 

Council member Wengay Newton, who voted for the tax break, said when the city has 8.9 percent unemployment with even higher unemployment numbers for minorities, it would be foolish not to give the tax break. 

He said he supports the project because, "nobody else is stepping forth with employment," Newton said. 

Members of the public who spoke up against the tax breaks said that argument does not hold up because the Sam's Club is already under construction. 

"Walmart doesn’t need our money, the building is already there," said Lenny Flank of Occupy St. Pete. "They have to hire the people to run the store. They are not going to not hire people. They are not going to let the contamination sit there in the middle of the store. (The tax break) doesn’t make any difference to Walmart." 

Flank said that while the $240,000 might not mean much to Walmart, it means a lot to a state with a budget shortfall and is cutting services regularly. He said that $240,000 worth of state money could hire several teachers, police officers or even keep a park from shutting down.

He said the city should not approve taxpayer money for the largest retailer in the world, but "give it to people in Florida who do need it."

Council member Bill Dudley said that type of mentality of punishing businesses that are successful is un-American.

"To penalize them because they have gobs of money," Dudley said, "that’s baloney."

Aaron Dietrich, who is an organizer for the People's Budget Review, said Walmart’s local attorney, Michael Goldstein, told the community that regardless of council's action Sam's Club would still be built.

If the decision has already been made, Dietrich asked what type of tax incentive this tax break really is. 

"I urge Sam’s Club to reconsider their request for tax incentives," Dietrich said. "The state needs this money a lot more than they do."

Jim Grinaker and local attorney and who was speaking on behalf of Keep St. Petersburg Local, said, "Walmart started construction already," he said. "You don’t need this. (The Brownfield) is going to be cleaned up regardless.

"Over the long-term (Sam's Club) will be a net job loss for the city," he said. "These are not good jobs."