FOR IMMEDIATE RELEASE: Tuesday, August 14, 2007
Stockton City Council Approves Superstore Ordinance
(Stockton, CA) - The Stockton City Council voted 6-1 this evening to overturn a Planning Commission decision and approve development code changes that will prohibit discount superstores in excess of 100,000 square feet, where at least ten percent of the floor area is dedicated to the sale of non-taxable goods (groceries). The development code changes do not apply to membership stores. A super majority vote of the Council, at least five of the seven members, was required to overturn the decision previously made by the Planning Commission.
Earlier this year, the Council referred the issue to the Legislation/Environmental Committee, a subcommittee of the Council. The Committee recommended to the full Council that the Planning Commission consider a code amendment. On May 10, 2007, the Planning Commission voted to deny the proposed development code changes.
The Protect Weston Ranch Coalition, a group of citizens organized to address issues in the Weston Ranch neighborhood, filed an appeal to the Planning Commission decision, asking that the City Council consider the proposed changes and limit superstores within the City of Stockton.
The City-initiated development code amendment is intended to protect existing and future neighborhood-serving shopping centers by preventing significant change in land use, employment, and traffic patterns throughout the City. A study conducted by Dr. Philip G. King, Ph.D., on behalf of the City, entitled, “Economic Analysis of A Proposed Ordinance to Limit Grocery Sales at Superstores in Stockton, California,” found that discount superstores have negative impacts on neighborhoods in communities where they are located, threatening the vitality of small-scale, neighborhood shopping districts. The study concluded that neighborhood-based grocery stores and commercial establishments cannot compete with prices offered by discount superstores, sales shift from neighborhood stores to discount superstores, resulting in vacant buildings and blight as impacted businesses are forced out. As neighborhood stores close, consumers travel further and more often to purchase goods and services, resulting in increased traffic congestion and associated air pollution, creating stress on the infrastructure from vehicle trips.
Dr. King’s report examined the impact of superstores at specific locations, determining which existing smaller stores could potentially close, and concluded that the loss of these anchors would jeopardize surrounding businesses.
Ordinance Support
Public comment from those supporting an ordinance to limit discount superstores, expressed a need to protect the health, safety, and welfare of Stockton. Speakers stated that superstores have adverse impacts on the economic vitality of the community; multiple locations of the same store or store type will not provide consumers with choice and diversity of options; and other projects at the same locations will also provide jobs and sales tax.
Jay Allen, Stone Bros., who is currently developing a high-end retail center in north Stockton, expressed that he was very uncomfortable speaking out against development. His research and experience is that Stockton has a reputation among high-end retailers as a discount market. Stone Bros. research shows that retail leakage in Stockton is occurring at the upper end of the economic spectrum, concluding that retail expands only as income expands, and, when retail vacancy occurs, it is replaced with a lesser use.
Ordinance Opposition
Senior Manager of Public Affairs Wal-Mart Corporation, Aaron Rios, read his comments from the May 10, 2007 Planning Commission meeting. He stated that the City has authority and should make decisions about superstores on a case-by-case basis. Mr. Rios disputed Dr. King’s study on several points, including predictions about store closures and urban decay. He stated that a Chico study indicates that concerns expressed here have not materialized in other communities and there are many benefits to supercenters, including: increased sales tax, business attraction of other chain stores, jobs with benefits, monetary contributions to community and non-profit organizations, employee volunteerism, and purchasing from local suppliers. He cautioned that an ordinance would harm the community by giving Stockton an anti-business reputation.
Residents of south Stockton stated that additional stores are needed in south Stockton neighborhoods, expressing concern that residents have fewer options and fewer resources to access stores in north Stockton.
Developers described a history of being encouraged by the City of Stockton to build new retail powercenters in Stockton and bring superstores to the community. Developers, property owners, and their representatives explained that their projects would be harmed by an ordinance, as they have invested significant resources in plans that currently include superstores. In addition, they shared that public opinion surveys within Stockton indicate that citizens want Wal-Mart stores in their neighborhoods.
Councilmember Nabors, who represents the south Stockton area, stated, “We should try to work it out with those businesses willing to bring stores to our community.” She expressed that many community grocery stores in south Stockton offer mostly beer and wine, which creates problems. “South Stockton is long overdue,” she continued, “so let’s work together to get something done.”
All of the Councilmembers described the proposed ordinance as a difficult decision.
“Why would south Stockton feel that they have to settle for a second-rate shopping center?” asked Councilmember Lee. “We need to raise the bar.”
Mayor Chavez complimented all of the speakers, indicating that they all made some ery valid points that influenced his decision. “I don’t attribute all of the illnesses of the world to superstores, and I cannot overlook the work that people were directed to do for the last 3 or 4 years”, he stated. “I never want Stockton to be known as a ‘big box’ community.”
Membership stores are excluded from the proposed development code changes, as it has been determined they do not have the same economic and environmental impact as discount superstores.
For additional information, please contact Mike Niblock, Director of Community Development, at (209) 937-8444.
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