Two cities torn over Wal-Mart plan

It's the tale of two cities -- and one retail giant.

Wal-Mart, the world's largest retail chain, wants to build a 183,000-square-foot Supercenter next to Spring Hill Mall in West Dundee.

Officials there anticipate a sales tax windfall of more than $1 million, but village officials in neighboring East Dundee are bracing for a gaping hole in their receipts.

The proposed Supercenter at Huntley Road and Elm Avenue would be built less than two miles from an existing Wal-Mart in East Dundee, likely forcing that location's closing.

East Dundee Village President Dan O'Leary said his village could potentially lose about 15 percent of its service-related funds if Wal-Mart shutters its store on Route 25 near Route 72.

The store opened about 20 years ago.

"I am guessing we could see a $600,000 cut from our $4 million operating budget," O'Leary said. "That could mean a reduction in services like police and public works, and then we just run out of places to cut back."

Wal-Mart spokesman Roderick Scott said a final decision has not been made regarding the East Dundee store.

"We are in an evaluation stage as far as what we are doing with the store," Scott said.

Still, East Dundee has taken steps in anticipation of its closure.

Last year, O'Leary said the village trimmed 6 percent from its budget and another 10 percent from the current fiscal year budget.

East Dundee Trustee Rob Gorman, a member of the village's economic development committee, said Wal-Mart's vacillation is frustrating.

"If we could get a final decision from Wal-Mart, we could take advantage of other opportunities in the area," Gorman said. "Some companies say they want to be with Wal-Mart, others say they don't want to be anywhere near Wal-Mart."

Though Wal-Mart is often criticized for stomping out existing businesses, retail experts and management from Spring Hill Mall say the West Dundee location would supplement the area.

Amy Prew, property manager for General Growth Properties, which owns Spring Hill Mall and the 17-acre parcel they will lease to Wal-Mart, said the addition would be a positive for the mall.

"This is certainly a partnership between the mall and Wal-Mart," Prew said. "Obviously we would not develop another property if we thought it would hinder the mall in any way. We see it as an opportunity to enhance what the mall can bring to the customers."

Furthermore, George Rosenbaum, a retail analyst for Leo J. Shapiro & Associates in Chicago, said Wal-Mart shoppers already frequent stores such as Sears, J.C. Penney and Carson Pirie Scott -- all anchors at Spring Hill Mall.

"Probably 80 percent of their customers do shopping at Wal-Mart," Rosenbaum said. "Now you are going to have a much more powerful reason for coming to this area."

Rosenbaum said these days, consumers want convenient shopping locations that require fewer trips.

"The opportunity to do shopping at one site will, I think, be a very positive thing for the mall," said Rosenbaum, who predicted the addition of Wal-Mart would reinvigorate the Route 31 and Route 72 corridor.

The Arkansas-based company will submit a site plan to the West Dundee planning and zoning commission Monday night.