Muriel Bowser

Walmart Agrees to Pay DC $1.3M for Nixed Store in Southeast

Walmart settled with the city after canceling plans to open at store at Skyland Town Center

Walmart has agreed to pay Washington, D.C. $1.3 million over canceling plans to open a store in Southeast D.C.

The retailer pulled out of an agreement to open a store in the Skyland Town Center shopping center, angering local politicians.

“When Walmart terminated its lease at Skyland, an underserved part of our community was deprived of jobs and retail options it had been promised,” said Attorney General Karl Racine said in a statement. “District residents expect corporations and developers to honor their commitments.”

When he was mayor, now-Councilmember Vincent Gray struck a deal with Walmart: The retailer would open a store in Skyland as a condition for building stores in other parts of D.C.

Two Walmart stores opened in Northwest and one opened in Northeast, but the company dropped plans for the store at Skyland, a development surrounded by neighborhoods that the federal government considers food deserts.

Mayor Muriel Bowser and other local politicians decried the decision when it was announced in January 2016, News4 reported.

News4’s Mark Segraves reports on the fury from DC leaders over Wal-Mart’s announcement to close dozens of stores, in addition to backing out of plans to build two additional stores in the district.

Attorney General Karl Racine promised his office would examine future deals and financial incentives offered by the city more closely. The District offered the Walmart developers $40 million in tax incentives, according to the settlement. D.C. also offered Safeway $3.6 million over four years to get out of a previous agreement that worried Walmart. Those payments weren’t scheduled to begin until next year.

“While Walmart’s decision to withdraw from its commitment to the District was extremely disappointing, this settlement represents the District and Walmart’s good faith judgment that it was preferable to resolve this matter without a protracted and costly lawsuit,” Racine said.

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