Los Angeles Superstores Ordinance

Landmark Superstores Law Approved By City Council The Los Angeles City Council has approved the landmark law that provides communities with greater control over the building of supercenters by Wal-Mart and other retailers. Passage of the ordinance makes L.A. the first city in the country to consider a supercenter's broad economic impacts before approval is granted. The ordinance is expected to become a model for other cities around the nation concerned about the proliferation of superstores. In the picture above: Before the vote, community leaders and residents were joined at a press conference by Mayor James Hahn and City Councilmembers Eric Garcetti and Ed Reyes, co-sponsors of the ordinance. Articles About L.A.'s Superstores Ordinance L.A. City Council Considers Putting Lid on Big-Box Retailers Washington Post - 8/15/04 Thinking Outside the Big Box LA Weekly - 8/13/04 A New Twist in the Wal-Mart Wars The Christian Science Monitor -8/12/04 L.A. Council Votes to Restrict Superstores Los Angeles Times - 8/11/04

What does the L.A. Superstores Ordinance Do?

Developers of proposed superstores in the city of Los Angeles currently have to obtain a conditional use permit if the project is over 100,000 square feet with more than 10% of floor sales area dedicated to non-taxable goods.

Under the new measure, companies are also required to pay for independent studies examining whether their proposed superstore would bring more economic harm than benefits to residents.

The City will then make a finding of whether or not the superstore creates an adverse economic impact on a community before granting the conditional use permit.

Why Does the City Need a Superstores Ordinance?

Numerous studies, including one by the City of Los Angeles, have documented the extensive economic impacts of superstores. Under the new law, city officials and community members have the ability to evaluate the impacts of a proposed superstore before a permit is issued. As a result, there can be meaningful public debate and control over the building of superstores in Los Angeles.

Who Would Be Covered By the Ordinance?

The ordinance applies to superstores located in any economic revitalization area of the City, including a mile-radius buffer zone.

What Is the Process?

1. The applicant hires a consultant from the City's pre-approved list to analyze its economic impacts - both positive and negative. The report looks at factors such as potential business displacement, housing or open space displacement, impact on city revenues, creation of blight, job creation or loss, and access to low-cost goods.

2. Once the report is completed and submitted to the Planning Commission, staff from either the Community Redevelopment Agency or the Community Development Department will review it and make a recommendation to Planning regarding the project's economic impact.

3. A public hearing will be held by the Planning Commission, followed by a Commission vote to either grant or deny the conditional use permit. Decisions could be appealed to the full Council.

What Are the Benefits of This Approach?

Community Voice: This law provides more opportunities for community residents to have a voice in proposed superstores and considers the full impact, both positive and negative, of these developments on residents.

Local Control: This ordinance allows for a case-by-case review of the impacts of a particular superstore on a particular neighborhood.

Planning Tool: The cost/benefit analysis will provide important planning information to ensure responsible development and prevent blight.

Protection of City Investments: The City will be able to ensure that major developments do not inadvertently undermine the significant investments in economic development that have been made to date.

Reasonable Approach: This law is a reasonable compromise, neither creating an outright ban on superstores nor allowing unrestricted building of such stores.