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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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