The Inglewood City Council gave initial approval Tuesday night on legislation that will allow greater public input over decisions to let Wal-Mart and other retailers build superstores in urban areas.

The ordinance, which passed 4-0 and will receive a final vote in about a month, makes Inglewood the third jurisdiction in the U.S. to enact this type of legislation, and could deal a setback to Wal-Mart Stores Inc.’s Southern California plans as the Bentonville, Ark.-based retailer pushes into urban markets around the country. The other two jurisdictions with similar legislation are the City of Los Angeles and Alameda County, just outside of San Francisco.

“The city of Inglewood is sending a message to large retailers like Wal-Mart that the communities want proof of the economic benefits these stores provide the local economies,” Danny Feingold, a spokesman for L.A. Alliance for a New Economy, said. “It’s no longer going to be accepted on blind faith. They have to prove they offer the community more than just low prices.”

A recent study by the City of Los Angeles outlined the economic impacts of superstores like the one Wal-Mart wants to build. Feingold highlighted Wal-Mart’s reputation of offering few employees healthcare benefits in addition to sub-par wages many employees receive as two of the crucial issues involved in these types of projects. Historically, neither city officials nor community members have had the ability to evaluate the probable impacts of a superstore before a permit is issued, he added.

The legislation would mandate that the applicant would hire a consultant from a list pre-approved by the city to analyze the economic impacts. Some of the factors explored would be potential business, housing or open space displacement, impact on city revenues, creation of blight, job creation or loss and access to low-cost goods. Once the report is completed and submitted to the city’s planning commission, city staff would review it and make a recommendation to the commission regarding the project’s economic impact. Then a public hearing would be held followed by a commission vote to either grant or deny the conditional use permit.

The initial approval of this legislation comes more than two years after Inglewood voters rejected a ballot measure sponsored by Wal-Mart that would have allowed the store to be built, without public input or environmental review, next to the Forum, on what is estimated to be the largest undeveloped plot in Los Angeles County. Despite the loss of its initiative, Wal-Mart purchased the land designated for the superstore. The price Wal-Mart paid for the parcel wasn’t available.

Wal-Mart officials weren’t immediately available for comment.