Merced Mysteries & Minutiae: Wal-Mart distribution center still in limbo

More than 10 years ago, the world’s largest retailer approached the city of Merced about a development project that would potentially create 1,200 jobs.

Wal-Mart: the all-in-one big box store that speckles America’s suburbs and major highways wanted to build a distribution center in Merced, on the northwest corner of Gerard Avenue and Tower Road, that would operate 24/7 and see 450 truck trips every day.

The Merced City Council approved the project in 2009, hoping the 230-acre site would spur employment as the county struggled with the jobless rate as a result of the recession and housing bubble.

But the Merced Alliance for Responsible Growth wasn’t satisfied with the environmental impact report for the project and took Wal-Mart to court in 2009. A Merced Superior Court judge and 5th District Court of Appeal in Fresno disagreed with the group, which appealed to the California Supreme Court. The high court declined to hear the case in March 2013, essentially clearing the way for Wal-Mart to build.

At the end of 2013, a senior director with Wal-Mart published an opinion piece in the Merced Sun-Star saying that the costly lawsuit wasted nearly five years challenging the project and created “significant delays that prevented construction.”

“A difficult economy in California and an improved Wal-Mart logistics system diminished the immediate need for a Merced distribution center,” the piece read. “These factors have led to the very difficult decision to delay the project’s construction.”

Three years later, the piece of land on Gerard Avenue and Tower Road is occupied by almond orchards and row crops.

Q: What is the status of the Wal-Mart distribution center in Merced?

A: Currently, there are no plans to begin building or development on the distribution center.

Frank Quintero, Merced’s economic development director, said the city typically meets with Wal-Mart in April or May.

“That’s when we have our big powwow with them,” he said.

Wal-Mart has not said it plans on building anytime soon, Quintero said. Wal-Mart does own the land, and can start building as soon as the company submits plans and pulls building permits.

Quintero said that though the recession played a factor in Wal-Mart’s decision to delay plans, the company has expressed it’s not abandoning the city.

“Those are delays, not denial,” Quintero said. “They made a commitment to Merced. They continue to emphasize they’re keeping the property. They’re not planning to sell the property.”

Quintero noted businesses such as Amazon are creating competition for Wal-Mart, which is updating its business model and business plan.

In January, Wal-Mart announced it would close 269 stores globally, including more than 150 in the U.S. The company does plan to open 50 to 60 Supercenters and 85 to 95 Neighborhood Markets in this fiscal year.

“We always communicate that the community is very eager for the project to move forward,” Quintero said.

Wal-Mart did not respond to requests for comments.

This story was originally published March 20, 2016 at 4:45 PM with the headline "Merced Mysteries & Minutiae: Wal-Mart distribution center still in limbo."