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Milpitas Walmart Expansion OKd In City Council About-Face

MILPITAS (KCBS) –Walmart has been given the green light for a major expansion in Milpitas, where the decision represents a reversal for the city council.

KCBS' Chris Filippi Reports:

Walmart wants to expand by more than 18,000 square feet in Milpitas, adding grocery and liquor sales. The company also wants that location to stay open 24 hours.

The city council turned down the project last year, which prompted Walmart to circulate a voter initiative. The company got the number of valid signatures needed to send the issue to voters, but instead of getting to that step, the Milpitas City Council voted to move the project forward.

"The Walmart will bring 85 new jobs and additional tax revenue to the community," said Angela Stoner, Walmart spokeswoman. "The expansion will also provide additional services to the community."

However, critics argue that the expansion will harm local small businesses.

"There's going to be a lot of job loss," said Tony Alexander with the United Food and Commercial Worker's Union. "I mean, you have workers who have been working at Nob Hill, SaveMart, and other stores that might be losing their jobs."

A special election for the Walmart project would have cost Milpitas an estimated $436,000.

(© 2011 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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