[Vision2020] The Wal-Mart Effect on Moscow

Sun Feb 12 09:37:35 PST 2006

Joe,

 Believe it or not, most students and their parents do  make a determination on where to go to college based on the  affordability of the college and town. Having a large discount retail  store and a large discount grocery store available to them does impact  affordability. If you don't believe college students depend on discount  retail, go to the Wal-Mart and ShopKo parking lot and count the number  of student cars. Go down to Lewiston and count the student cars there.  Go to the Super Wal-Mart near BSU and look for the student cars. You  will find plenty near any publicly funded university or college.

  Wal-Mart wants to expand because it is responding to student and other  consumer demands for increased availability of goods and services. That  is the way supply and demand works. Wal-Mart would not want to be  expanding if consumers did not want it. 

 For every 50  students the UI fails to retain or does not attract to UI, Moscow loses  about $1 million in federal and state dollars per year. $1 million that  will not be going to local businesses and establishments in Moscow but  some other town like Boise that can meet or better meet student needs  and demands. 

 Regarding the other issue of affordable  housing, the reason housing is unaffordable is because of heavy  property taxes and housing units with overinflated market values.  Moscow has a slew of vacant affordable housing units because students  do not qualify for them because you cannot be a single college student  and be in most subsidized housing in Moscow. Second, the subsidized  housing units in Moscow are still higher than unsubsidized housing  units in most other cities in Idaho including Boise.  If you are a  non-college student, why rent a subsidized apartment in Moscow for $450  when you can buy a house in Potlatch or Deary for $475 a month? If  people want to make housing affordable in Moscow they need to reduce  the property tax rate, that is the only way aside from building more  housing units then we need. Moscow has no control over the property tax  values.

  Take Care,

  Donovan J Arnold

joekc at adelphia.net wrote:It  is just incorrect to think that ANY student makes a decision about  where to go to school based on whether or not there is a Super Wal-Mart  in the town, as opposed to just a regular, old Wal-Mart.

And if  you think that your argument is correct, Donovan, why not work with Bob  Stout and other council members to do something about affordable  housing in Moscow? That would make a real difference.

--
Joe Campbell

---- Donovan Arnold  wrote: 

=============
        The Wal-Mart Effect on Moscow 
  Many of Wal-Martâ€™s detractors erroneous like to make the claim that  Moscowâ€™s quality of life and economy is based upon the small number  of locally owned and operated retail establishments. But any rational  person understands that Moscowâ€™s economy and job market is primarily  based upon the University of Idaho. The survival of local businesses  depends upon the wealth passed on from the University of Idaho. 

  The wealth of the University is dependent upon federal and state  dollars allocated to it based on student enrollment. Enrollment is  based on two factors, the number of students that stay at UI, or  retention rate, and the number of new students. The retention rate,  according to Michael Griffle, the Director of University Residents at  UI, has dropped from 90% to below 77%. The primary reason is because of  the lack of affordability of living in Moscow. In addition, according  to a recent report put out by UI President Tim White, the new students  being obtained by the University are increasingly minority,  non-traditional, and first generation students, or students with  generally less means and wealth. 

 A lower student  enrollment will reduce the amount of money and resources to Moscow from  the federal and state government. This in turn will reduce the amount  of money that will be spent on local businesses. It will also reduce  the number of jobs at the University and in turn the local private  business sector of the community. 

 While many can  successfully argue that tuition and fees at UI remains among the  lowest, they would be fighting a losing battle to claim that Moscow is  an inexpensive to live. Rent in Moscow is one the highest in the state.  Gas and utilities are also very prohibitive. When other costs are added  in, such as few public transportation options, increases on food, video  rentals, and a $5.15 an minimum wage, Moscow becomes truly prohibitive  and inhospitable for many poor college students. 

  Wal-Mart provides at least some relief from the unaffordable Moscow.  College students need the $99 futon, the $40 microwave, the $35 DVD  player, and the $5 lamp. They depend upon it. They do not care if the  thing breaks within two years; they only need it till May. They do not  have the money to buy the $250 bed, the $100 microwave or the nice DVD  player, nor do they have the resources and time to haul it all home in  nine months and back again in two and 1/2 months. 

  Moscow businesses are not in competition with a Wal-Mart just at 185  Warbonnet Drive. They are also in competition with a Super Wal-Mart  near BSU, a Super Wal-Mart near ISU, and a Super Wal-Mart near every  community college and university that caters to lower and middle income  students. Ignoring this fact does not make it untrue. The best survival  for local businesses is to allow Wal-Mart to meet the basic needs of  college students so enrollment stays up while they provide services and  goods Wal-Mart does not provide. Not providing goods and services to  students that fits the student budget in the hopes that it will force  them to pay a higher amount of money at a local shop is a poor long  term strategy and is obviously failing as UI students opt to finish  their education in a more affordable town. 

 Local  citizens concerned about local businesses need to turn their energy  towards retention and recruitment for UI and reducing the costs of  living for college students as well as buying locally when they can  afford it. $1000 a month for rent and $5 for a pound a beef in a town  that pays $5.55 an hour will kill your local economy more quickly then  any Super Wal-Mart. Killing competition inside Moscowâ€™s boarders  kills Moscowâ€™s competitiveness outside its boarders. UI and Moscow  need a Super Wal-Mart to remain competitive with other universities and  colleges. 

  -Donovan J Arnold

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