This could provide a huge benefit to those people. But I guess we can just ignore the positive benefit to those people. Instead let's kill the development in the interest of "saving" the bottom 1% at the expense of other people in the neighborhood, many of whom are the working poor. This Trader Joe's deal could have make them fairly rich. If they own a $40K home that's now worth $150K, they just made $110K. They could refinance their home, cash out the equity and use that money to start a business, pay debt or buy more property. With one deal, they wouldn't be poor anymore. These "community groups" rather than trying to keep people victims ought to be out there teaching about real estate, investing and starting businesses, but alas, they only teach about how oppressed they are.
You're suggesting that if someone is poor in a neighborhood, we should ensure that everyone else gets fucked just to look after them? You are aware of something called Section 8, I presume? Do you know anything about how it works? Apparently not. If we followed your logic, then there would be no such thing as neighborhood revitalization, because a revitalized neighborhood necessarily results in higher property values. Interestingly, neighborhood revitalization has a positive effect on schools, especially in reducing de facto segregation. But of course, we can't have the schools improving because then the poor kids wouldn't have any more excuses and the poverty pimp business would dry up within a generation.
An empty lot benefits nobody.
It sounds like what everyone's dancing around is the concern that a TJs in that community would start the process of gentrification that would raise the cost of living and make it untenable for the current residents to continue living there.
Assuming that gentrification is a real problem (I have zero experience, so it's hard for me to judge): have you heard of any solutions to the issue besides rent control or "keeping out" the middle class?