Wal-Mart Subsidies in Corona, CA
|Address||479 N McKinley St|
|Type of Facility||discount store|
|Value of Subsidies||$2 million|
NarrativeThe city agreed to pay $5.5 million (plus interest) over 20 years to lease the parking lot of a development that includes a Wal-Mart, a grocery store, and many smaller stores and restaurants. Of that amount, $2 million went to Wal-Mart and $3.5 million went to the developer. The lease payments are made through sales tax diversions: Wal-Mart keeps 50% of the sales tax the store generates and sends the rest to the city. Half of the sales tax generated by the entire shopping center also goes to Wal-Mart, and the other 50% is paid to the developer; the city will receive no sales tax revenue from the other stores until 2013 or until the full amount of the lease is paid.