Eminent Domain Used to Block Wal-Mart

The small San Francisco suburb of Hercules, CA used an unusual tactic to block the building of a Wal-Mart store this week.

With residents up in arms, stating that Wal-Mart was using scare tactics to force its way into the community, the Hercules City Council voted to use eminent domain to seize the 17 acres where Wal-Mart was to build.

Opponents of the new Wal-Mart stated that the store could drive local retailers out of business, create traffic jams and destroy the small-town feel of the city. Initially planned as a 142,000 square foot store, the Wal-Mart plan was scaled down to include outdoor seating areas, some small shops and a pedestrian mall. Still, the Hercules residents rejected this newer proposal. And of course Wal-Mart representatives are threatening to start legal action to make the small town pay dearly for using eminent domain to block their project.

Eminent domain is generally used by cities to build roads and redevelop areas within the city limits. The U.S. Supreme Court recently ruled that the use of eminent domain to seize land is allowable if the new construction raises the tax base and benefits the entire community.

Wal-Mart is fighting battles throughout the country, with cities using tactics such as imposing limits on the size of retail buildings and raising the minimum wage to levels above what Wal-Mart is willing to pay. Not so in Santa Clarita, where Wal-Marts seem to be popping up everywhere!