City Council Maintains Ban on Big Box Stores

The Elk Grove City Council Wednesday night rejected a proposal by the Planning Commission that would have allowed big box retail discount stores—banned from most areas of Elk Grove—to open shop under certain conditions.

“I appreciate the hard work they did in putting this together, but often times the road to hell is paved with good intentions,” Councilman Pat Hume said of the proposal. "I think this is killing a fly with a shot gun.”

Earlier this year, an attorney for residents living near pointed out that changes to the city’s zoning code that could allow the national chain retailer to build its controversial store with few restrictions.

Councilmembers put on large retail stores and asked staff and the Planning Commission to review the zoning code and close any loopholes.

“I value their service, but I thought we were pretty clear in the direction we gave,” Councilman Gary Davis said. “It seems like they did a wholesale rewrite in attempt to streamline it and make it easier, but it doesn’t seem like this is the direction we gave.”

Planning Commission Chairman George Murphey said the group tried to craft a set of user-friendly rules that would protect neighborhoods.

 “When we looked at what’s been done across the region, we were headed down the road as being the most restrictive,” Murphey said Tuesday. “With everything we’re trying to do to increase and entice business, becoming the most restrictive was not the proper direction to go.”

The Commission’s proposal called for retail categories based solely on store size.

“Originally, we were looking at product mix, whether there was a central check out, the percentage of floor space for particular products...It became rather confusing,” Murphey said. “Imagine a business trying to determine how it would fit under all these different scenarios. It wouldn’t be very welcoming to any business trying to get through the permit process.”

The existing zoning code prohibits stores larger than 150,000 square feet with more than 10 percent of its sales floor to non-taxable goods such as groceries. The only exception is in the Lent Ranch area, where .

Under the Planning Commisison’s proposal, stores 150,000 square feet or more in size would have been considered “jumbo” retailers, and would be permitted in land zoned for general commercial or shopping centers.

Jumbo retailers, however, would have required a conditional use permit, which allows city officials to place certain restrictions on the businesses such as hours of operation.

In addition, special studies analyzing the impacts on the community, economy and crime would have been required before jumbo stores are approved.

Large retailers, between 75,000 and 149,000 square feet, would have also required conditional use permits and special studies in land zoned for general or limited commercial as well as shopping centers.

“If there’s an appropriate spot with appropriate conditions and the studies bear out the fact that this is a viable business that won’t cause urban decay, then there’s a place for it,” Murphey said. “If your business doesn’t meet that criteria, or you don’t want to agree to conditions of approval, then that’s your choice.”

Hume said the so-called “big box ordinance” ban was targeted at supercenter discount stores, not necessarily any large retailer.

“Our zoning code has a very targeted rationale in what we were trying to implement,” Hume said. “It was laser-focused and addressed the issue of what is an appropriate site to locate certain types of stores.

“This new code would tighten restrictions unnecessarily in some cases, and loosen them in other cases.”

The special studies requirement for any store over 150,000 square feet would discourage chains such as RC Willey, Costco or Home Depot from opening stores in Elk Grove, Hume said.

In 2009, Walmart tried to build a 99,585-square-foot store on the southeast corner of Bruceville Road and Whitelock Parkway using entitlements previously approved for a larger Target.

Nearby residents, concerned about noise and the store’s hours of operation, sued the city and Walmart. Earlier this year, a Sacramento County Superior Court judge ruled in the residents’ favor, but Walmart appealed that decision.

The case remains in litigation, according to Walmart spokesperson Amelia Neufeld.

Councilmembers also extended the moratorium on large retail stores to June 23, 2012.

Planning staff will present the council with another proposal to tighten the loophole at its next meeting.