Walmart Cancels Plans For Merced Distribution Center

FRESNO, CA (KMJ)  -Walmart ends plans for 1.2 million square foot distribution center in Merced, saying the nature of retail has changed the project was announced 12 years ago.

Walmart has announced a change in its business plans and will not be building a warehouse and distribution center in Merced, company officials told the City.

The news comes almost exactly four years after the state Supreme Court ruled in favor of the company in a lawsuit alleging that the project did not have a valid environmental impact report.

“We are extremely disappointed by the news,” said City Manager Steve Carrigan. “This project could have been a big economic shot-in-the-arm for our residents. Certainly, the Great Recession and the drawn-out lawsuit didn’t help the project.

“Now the City has to move forward. We have other big projects in the works. UC Merced’s 2020 Project is a $1.3 billion investment in the community, with hundreds of jobs. We have major Downtown projects going on. We have housing developments popping up in our City like daffodils. We really would have liked the Walmart project, we are going to move on and look for other opportunities.”

Click below to listen to the story by KMJ’s Liz Kern: