|
City Panels Back Proposed Limits
on Superstores
City News Service - August 4, 2004
By Erin Park
Two council committees backed a proposal today to restrict the ability
of Wal-Mart and other retailers to build superstores by requiring
them to prove that surrounding communities would be unharmed. The
proposed ordinance would apply to retailers larger than 100,000
square feet that devote more than 10 percent sales floor area to
non-taxable goods in economic assistance zones. Warehouse clubs,
such as Costco or Sam's Club, would be exempt. Many believe the
giant discount stores lead to reduced employment and wages, as well
as the shuttering of small businesses. Earlier this year, Wal-Mart
suffered a defeat when voters in Inglewood rejected a measure that
would have allowed the company to skip some steps in the planning
process.
Roxana Tynan of the Los Angeles Alliance for a New Economy urged
the panels to endorse the measure. "It's a very reasonable
and balanced approach," she said. "It allows communities,
on a case-by-case basis, to review the project being proposed and
to make a finding about whether it's going to be good for their
neighborhoods, or not be good for their neighborhoods."
Councilmen Eric Garcetti and Ed Reyes had originally proposed banning
such developments from being built altogether in certain areas.
In May, they modified their plan to require companies to do cost/benefit
analyses of the proposed stores' impact on neighborhoods. "This
is one of those examples of where we're focused on the land use
impact, but we're also looking at the social, economic and financial
policies that impact the wealth of the city," Reyes said. "This
ordinance attempts to find the balance between these very complex
issues."
Dozens of supporters of the measure testified during the public
comment period, including Deputy Mayor Renata Simril, who handles
economic development and housing issues. "Mayor Hahn believes
(it is) a sound measure of public policy to identify and root out
any unintended, negative consequences of big box developments,"
she said.
Peter Kanelos, a Wal-Mart representative, disagreed. "Wal-Mart
believes this ordinance is redundant," Kanelos said. "As
a matter of policy and courtesy, Wal-Mart meets with its neighbors,
customers and community stakeholders when it opens a store."
Kanelos cited figures that show the company, over the past two years,
has created more than 1,600 jobs in Los Angeles and generated more
than $5.8 million in sales, utility, real estate and business license
taxes. "Wal-Mart opposes the passage of this ordinance because
it's anti- competition and anti-consumer and does not benefit the
residents of Los Angeles," he said.
Ken Jacobs, co-author of a study released by the University of California
this week, said superstores cost taxpayers almost $100 million a
year in public assistance to its workers. Wal-Mart doesn't keep
its promise to bring jobs to communities, Jacobs said. "When
Wal-Mart comes in, businesses go out of business," Jacobs said.
"The number of jobs doesn't change much." The proposed
ordinance could go before the full council as early as Tuesday.
|
 |
