A proposal that would create hurdles for building Wal-Mart superstores
and
other "big-box" retail stores in Los Angeles was approved
Tuesday by the City
Council, paving the way for a vote Wednesday that is expected
to turn the
guidelines into law.
The proposed ordinance would restrict construction of the stores
in and
around areas earmarked for redevelopment, creating "protected"
regions that
would encompass approximately 60 percent of the city. To obtain
a permit to
build in these areas, all stores over 100,000 square feet that
include full
grocery departments would have to hire a consultant to examine
not only issues
such as potential traffic increases but also the store's economic
effect on the
surrounding community.
The law would affect Wal-Mart, K-Mart and Target superstores,
but not regular
Wal-Marts and membership clubs such as Costco and Sam's Club.
Protected regions include the vast majority of the Harbor Area,
along with
southern and downtown Los Angeles. Westchester, Playa del Rey,
Venice, Eagle
Rock, portions of West Los Angeles and large swaths of the San
Fernando Valley -
neighborhoods that haven't been designated to receive government
economic
assistance - are among the areas where a superstore could be built
without a
consultant's additional report.
A Wal-Mart currently under construction at 190th Street and
Normandie Avenue
in Harbor-Gateway falls within a protected area, but would only
be subject to
the new ordinance if it expanded to become a superstore. Currently,
there are no
superstores within the Los Angeles city limits.
Mayor James Hahn joined council members Eric Garcetti and Ed
Reyes on Tuesday
morning to voice his support for the proposed law.
"Sometimes superstores pay lower wages than existing companies,
and lower
benefits, which creates added burdens on the taxpayers who have
to pick up food
stamps or health-care costs for workers," Hahn said. "We
don't want to ban any
stores ... (but) if a superstore is coming into a neighborhood,
they're going to
have to answer a series of questions indicating whether or not,
net, is it going
to be a benefit to the community?"
Among other things, the required economic analysis would examine
the number
of jobs to be created and the level of wages a new store would
pay, and compare
it to existing jobs and wages likely to be pushed out due to competition.
Because superstores sell groceries, Garcetti argued, shoppers
are more likely to
use them as their sole daily shopping center, draining customers
from local
strip malls with nail salons, movie-rental stores and pizza shops.
If city officials determined that the negative impacts outweighed
the
benefits, the chain's application for a building permit would
be denied.
Even so, Wal-Mart spokesman Peter Kanelos, who did not attend
the meeting,
gave the proposed ordinance his guarded support.
"We do not support any attempt to limit competition,"
Kanelos said, but
added, "We view the union's failure to persuade the city
to ban Wal-Mart
(outright) as a victory for consumers."
The council spent over an hour discussing the proposal, which
was strongly
supported by labor representatives attending the meeting. The
council voted 13-1
in favor of the proposal, with Councilman Bernard Parks opposed
and Councilman
Greig Smith, who owns stock in Wal-Mart, recusing himself.
Parks argued that his district received a huge financial boost
when a
Wal-Mart opened in the Baldwin Hills Crenshaw Shopping Plaza.
The low-cost chain
store opened in a struggling section of the mall that had been
vacant for five
years, when no other retailer was willing to occupy it, Parks
said.
"Five hundred people have jobs there," he said. "Not
one of them has a ball
and chain on their leg, and they show up for work every day."
Los Angeles joins other local cities in seeking to restrain
supercenter
construction. Inglewood voters recently rejected a ballot measure
that would
have allowed Wal-Mart to build a superstore without following
the city's
permitting process.
But Parks warned that the proposed law would prompt Wal-Mart
to open
superstores in communities immediately outside Los Angeles, depriving
the region
's largest city of tens of millions of dollars in annual sales
tax. Wal-mart has
already submitted a proposal to open a supercenter in Rosemead,
in the San
Gabriel Valley.