Wal-Mart wins battle, but not war

Adrienne Packer

Thursday, Dec. 2, 1999 | 11:18 a.m.

Wal-Mart representatives are pleased with a U.S. District judge's ruling Wednesday that allows them to move forward with two Supercenter stores, but they conceded that their battle with Clark County is hardly over.

Judge Philip Pro issued a temporary injunction that prevents a newly adopted county ordinance from affecting the construction of two Wal-Mart Supercenters awaiting final permits.

"We're excited to move forward with those two locations," said Daphne Davis, a Wal-Mart community affairs coordinator. "But there is still the issue of whether the ordinance is constitutional."

The ordinance that the Clark County Commission passed Oct. 6 bans stores that are larger than 110,000 square feet and devote more than 7.5 percent of floor space to groceries. Supercenters are typically 205,000 square feet with 65,000 square feet devoted to groceries.

The county commission's 3-2 vote approving the ordinance, which was introduced by Commissioner Erin Kenny, caused an uproar in the community. Kenny, who did not return phone calls, said the ordinance was meant to control traffic. Critics contended the ordinance was strictly a favor for unions who oppose Wal-Mart's stand against organized labor.

In February the county commission unanimously approved a zone change for Wal-Mart at its Nellis Boulevard and Craig Road site, and the company invested $6 million in the property.

Wal-Mart attorney Will Kemp said county building officials were prepared to issue Wal-Mart final permits on Oct. 14 for Supercenters on the Nellis site and a newer location along the Eastern Beltway.

Although the ordinance wasn't scheduled to go into effect Oct. 21, Clark County District Attorney Stewart Bell told building officials to withhold final permits on the two projects.

But Pro's ruling says the ordinance cannot affect the two sites.

"Employees and agents are hereby restrained from interfering with the regular process of building permit issuance regarding the proposed Wal-Mart Supercenters at the Craig/Nellis and Eastern Beltway locations...," Pro's ruling says.

Clark County Assistant District Attorney Michael Davidson did not return calls, but county public information office Doug Bradford said there are no plans to appeal Pro's decision.

"The decision was really win-win," Bradford said. "It helps Wal-Mart because they get their stores, and it helps us out because the ordinance is on the books."

Davis, however, said Pro's judgment answered only a portion of Wal-Mart's lawsuit against Clark County, which was filed Oct. 18. She said the court is also expected to rule on the constitutionality of the ordinance.

"We still strongly believe the action of the Clark County Commission is an unconstitutional restraint of trade," Davis said this morning.

Pro did not address the constitutionality, and Davis said that ruling is imperative to Wal-Mart, which intends to build several more Supercenters throughout the Las Vegas Valley.

Under the existing ordinance, new Costco or Sam's Club stores cannot be built. And Wal-Mart could only open additional Supercenters if it scaled down the store size considerably, which company officials have already indicated is not an option.

"We have set our sights on more stores in that area," Davis said. "It's a growing area. We'll continue to evaluate the growth of the market; it's an important market for our operation."

Residents not only complained the ordinance takes away their right to choose where they shop for groceries, but they accused commissioners of being influenced by the United Food and Commercial Workers Union.

The Supercenters will be the county's first major grocery stores that are not organized.

A group called "Citizens for Competition" has held numerous petition drives in an attempt to force the commission to reconsider the vote. If the board refuses to kill the ordinance, the measure will be placed on a ballot.