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Tuesday, September 12, 2006

Aldermen: Big-box veto will stand

Aldermen: Big-box veto will stand
BY FRAN SPIELMAN City Hall Reporter
Copyright by The Chicago Sun Times
September 12, 2006


A South Side alderman with an expansion promise from Wal-Mart and two of Mayor Daley's closest Hispanic supporters said Monday they will provide the crossover votes Daley needs to sustain his veto of an ordinance requiring "big-box" retailers to pay their employees at least $13 an hour in wages and benefits by 2010.

"I understand and share a desire to ensure that everyone who works in ... Chicago earns a decent wage. But, I do not believe that this ordinance, well-intentioned as it may be, would achieve that end," Daley said in his first-ever veto message.

"Rather, I believe it would drive jobs and businesses from our city, penalizing neighborhoods that need additional economic activity the most. In light of this, I believe it is my duty to veto this ordinance."

Wal-Mart for Englewood?

Ald. Shirley Coleman (16th) said she agreed to change sides to help Daley avoid an override after Wal-Mart promised to build an Englewood store at 62nd and Halsted, down the street from the soon-to-be-built Kennedy-King College.

"I haven't got a commitment in writing from them. But we want to keep the door of opportunity open. My concern is for 16th Ward constituents. They need work. They want the opportunity to have a job -- whether it be at $7.50 an hour or $10 an hour," said Coleman, arguing that residents urged her to change her vote by a 300-to-20 margin during a series of community meetings.

Ald. Danny Solis (25th) said he's agreed to join Coleman in crossing over -- but not in return for an appointment to the job of city clerk he has reportedly coveted

"I just think it's unfair for the city to lose revenue and jobs," Solis said.

A similar argument was made by Ald. George Cardenas (12th), who has also agreed to change sides.

By filing his long-awaited veto message 48 hours before Wednesday's City Council meeting, city attorneys believe Daley has met legal requirements for an override vote that day. Other attorneys have their doubts.

Ald. Joe Moore (49th), chief sponsor of the big-box ordinance, said the mayor's forces have "kindly" agreed to wait until after Moore returns from the funeral of six children who died in a Rogers Park fire. But Moore said he's been told by Corporation Counsel Mara Georges that Daley is determined to break precedent and force an override vote on the same day his veto message is delivered.

"It begs the question, what's the rush? I think he's afraid he can't hold the votes that long," Moore said.

Thirty-five aldermen voted for the big box ordinance. Thirty-four votes are needed to override a veto. That means Daley needs two aldermen to change sides, but only one on Wednesday, when big-box supporter Manny Flores (1st) will be away in China.

But Daley is apparently determined to present a show of force and avoid hanging just a few aldermen out to dry for unions to target. On Monday he was reportedly lobbying Aldermen Ray Suarez (31st), John Pope (10th), Ariel Reboyras (30th) and Pat O'Connor (40th).

Flanked by business leaders who consider him their champion, Daley will hold a news conference today to rally support for his veto at 119th and Marshfield, site of a Target store put on hold after the City Council's 35-to-14 vote.

New stores put on hold

"The Chicago borders are open for business. This is the kind of thing that will send a message -- not just locally, but nationally that Chicago is not an island unto itself," said Illinois Retail Merchants Association President David Vite.

Michael Lewis Sr., vice president of store operations for Wal-Mart's Midwest Division, said the mayor's veto "encourages desperately needed business investment and development" in Chicago. Wal-Mart, Target and Lowe's all had put expansion on hold, pending Daley's decision.

Target issued a statement calling the ordinance an "unfair mandate that discriminated against one category" of retailer.

Chicago Federation of Labor President Dennis Gannon said he's disappointed Daley's first veto in 17 years "comes at the price of 10,000" retail workers who "could have gotten a raise of $2 an hour that could have lifted them" from poverty.

"It just saddens me that the mayor of Chicago has decided to side with big business and major corporations, rather than the working men and women," he said.

Tom Balanoff, president of the Service Employees International Union's Illinois Council, predicted that Daley would pay a political price for taking a stand against "the little guy" if he chooses to seek re-election in February.

"I don't see how unions are going to be able to support the mayor, and I would hope that working people aren't going to vote for him," Balanoff said.

U.S. Rep. Jesse Jackson Jr., a possible mayoral challenger, is already seeking to capitalize on the veto -- by accusing Daley of standing "with President Bush and the Republican-led Congress" against "incrementally raising the minimum wage."

'Low wages or no wages'

"After 17 years of no jobs for the urban core of our city, Mayor Daley vetoed a livable wage ordinance. ... He has joined the corporations' exploitation of the most desperate by offering them either low wages or no wages, offering them a big-box or no box," Jackson said.

Mayoral press secretary Jacquelyn Heard said Jackson's support for the big-box ordinance was "completely understandable" because "much of the area he represents is in the suburbs, which stand to gain greatly" if the ordinance stands.

Daley had been working for years to attract small and medium-sized businesses as well as large anchors to the city's impoverished South and West sides, she said. "Now, after years of getting to a point where retailers want to come into these neighborhoods, we are not prepared to say, 'No thanks, go elsewhere.'"

fspielman@suntimes.com

Wal-Marts a hit in suburbs

Leaders in Chicago's suburbs say Wal-Mart and the sales and property tax revenues its stores generate have helped pay for vital projects and invigorate once-moribund shopping centers.

The chart shows the amounts of sales tax revenues and real estate tax revenues that Wal-Mart stores generate in selected, close-in suburbs.

Two shuttered Montgomery Ward department stores now house thriving big-box retailers as a result of Wal-Mart's entry into north suburban Niles and south suburban Lansing, officials said.

And west suburban Forest Park has leveraged its Wal-Mart store to improve its aging infrastructure.

The village has rebuilt and resurfaced streets and alleys and made water improvements.

Sandra Guy

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