Superstores Ordinances

Inglewood Vote Gives City Greater Oversight On Wal-Mart and Other Superstores: Two years after Inglewood voters shot down a plan by Wal-Mart to build a supercenter in town, the city has added a new layer of scrutiny that will make it even more difficult for big-box developments to gain approval in the future. Supporters of the ordinance said the measure isn't anti-business but will help residents have a greater say in what is built in town, said Elliott Petty of the Coalition for a Better Inglewood. More Inglewood Condiciona Proyectos de Supertiendas La Opinión - July 13, 2006 Inglewood Resists Wal-Mart Los Angeles Business Journal - July 12, 2006 Frequently Asked Questions About Inglewood Superstore Ordinance City of Los Angeles Superstore Ordinance

Numerous studies, including one by the City of Los Angeles, have documented the extensive economic impacts of superstores (generally defined as “Big Boxes” over 100,000 square feet with more than 10% of the sales area dedicated to non-taxable goods).

Under general zoning law, neither city officials nor community members have the ability to evaluate the impacts of a proposed superstore before a development permit is issued. As a result, there is generally no meaningful public debate or control over the building of superstores in most communities. Superstore Ordinances have become a reasonable compromise, neither creating an outright ban on superstores nor allowing unrestricted building of such stores without city and community review and oversight.

Superstore ordinances, like that passed in the City of Los Angeles in 2004, require developers to submit a cost/benefit analysis of the proposed store, which allows for a review of the impacts of a particular superstore on a particular neighborhood or the city as a whole. The review considers impacts on locally owned businesses, on traffic, job quality, demand for public services such as health care or food stamps, and on the housing market. In addition, these ordinances typically require public hearings which give residents the opportunity to comment on the proposal. Since superstores such as Wal-Mart typically lower wages and increase the need for public services, and push smaller businesses out of the community, the ordinances serve as a firewall against that type of development.

Following passage of the Los Angeles law, communities around the state and country, including the city of Inglewood, have adopted similar policies.

Inglewood “Superstore” Ordinance

In July 2006, Inglewood became the third jurisdiction in the nation to adopt a “superstores” policy requiring public review and City Council approval prior to development of any stores that sells groceries and is larger than 100 thousand square feet. Uniquely for this type of policy, the language allows for City Council discretionary intervention even if the store is smaller than 100 thousand square feet and prohibits circumvention of the policy by locating two smaller stores side by side. These policies are an important tool in curtailing the well-documented economic, social, environmental, and neighborhood impacts of Wal-Mart and similar outlets.