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L.A. City Council Considers Putting
Lid on Big-Box Retailers
Washington Post - August 15, 2004
By Rene Sanchez
Los Angeles, the land of what seems like a million mini-malls, hardly
ever meets a retailer that it does not embrace. But it is thinking twice
about welcoming any more national big-box stores.
The City Council approved an ordinance last week that could block retailers
such as Wal-Mart from opening sprawling stores that sell discount goods
and groceries. The measure, which may take effect next month, requires
the companies to pay for independent studies examining whether their arrival
in Los Angeles would bring more economic harm than benefits to residents.
Some local officials say the retailers drive down wages where they open
and force neighborhood businesses struggling to compete with their rock-bottom
prices either to close or to cut payrolls.
Similar debates are emerging around the country. A few local governments
have enacted laws prohibiting the retailers from doing business in their
communities.
Wal-Mart officials scoffed at the council's vote and said the stores boost
local economies by providing hundreds of jobs. The company is planning
to open several dozen "supercenters" in California but none
yet in Los Angeles.
Initially some council members proposed banning Wal-Mart from opening
its largest stores, but they later scaled back the measure.
Labor leaders and community groups praised the council's step, saying
it would give neighborhoods new power to decide their economic fate.
"This is a great victory for Los Angeles residents," said Roxana
Tynan, a director of the Los Angeles Alliance for a New Economy.
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