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View Full Version : Economic Impact Review Bill passes CA Legislature!



Barry
09-16-2011, 04:02 PM
A bill requiring an Economic Impact Review be conducted before approving new Big Box stores has passed the California Legislature! :thumbsup:

Barry
(Thanks to Linda Kelly for passing this on)


https://newrules.org/sites/newrules.org/files/images/sitename_bridgeonly-gold.jpg


https://www.newrules.org/retail/rules/economic-impact-review/economic-impact-review-california%20%20%20%20

Economic Impact Review - California

On September 2, 2011, the California Legislature passed the following bill, which requires cities and counties to have an economic impact analysis prepared before deciding whether to approve an application to develop a large superstore.

Governor Jerry Brown has until October 9, 2011, to sign or veto the bill.

The legislation defines a superstore as a retail store of at least 90,000 square feet that devotes 10 percent or more of its space to groceries. It will affect Walmart and Target, both of which operate large stores that include groceries.

Under the law, the city or county considering the superstore application must hire a qualified consultant to conduct an economic impact study. The cost of the study is paid by a fee levied on the applicant.

The study must assess a range of impacts enumerated in the law, including:
the extent to which the proposed superstore retailer will capture a share of retail sales in the market area.
how the construction and operation of the proposed superstore will affect the supply and demand for retail space in the market area.
how the construction and operation of the proposed superstore will affect employment in the market area, including an analysis of whether the proposed superstore will result in a net increase or decrease in employment in the market area.
the effect on wages and benefits of employees of other retail businesses, and community income levels in the market area.
the costs of public services and public facilities resulting from the construction and operation of the proposed superstore retailer and the incidence of those costs.
the effect that the construction and operation of the proposed superstore retailer will have on retail operations, including grocery or retail shopping centers, in the same market area.
the effect that the construction and operation of the proposed superstore will have on average total vehicle miles traveled by retail customers in the same market area.
the potential for long-term vacancy of the property on which the superstore is proposed in the event that the business vacates the premises

The "market area" is defined as an area around the store large enough to support its operation, but which may not extend further than 25 miles from the store.  After the study is complete, the city or county must invite public comment on the study and the application at one of its meetings.

History

In 2010, San Diego enacted a ordinance requiring an economic impact review of superstores. The measure was repealed in early 2011, after Walmart threatened to organize a referendum campaign to overturn the law.

The repeal prompted San Diego Senator Juan Vargas to introduce the statewide bill. Vargas has said that the legislation does not violate local control; cities are still free to approve superstore applications, regardless of the study's findings. "They will know what they are doing is wrong but at least they will have the facts," he said. "Before they were acting in the dark."

San Diego Assemblyman Ben Hueso, who presented the bill in the house, said that it provides decision-makers "with facts, not hearsay." Walmart and other large retailers often claim their stores will increase employment, but studies indicate these stores often cause more job losses than gains.

By making the requirement apply statewide, the new law ensures that cities that would like to consider economic impacts are not placed at a disadvantage. The preamble to the bill notes: "Currently, local governments that desire to perform due diligence for their constituents by performing an economic analysis are placed at a disadvantage because a neighboring city or county may not perform an economic analysis. This a situation may result in the shifting of sales tax and destruction of the business community in a city or county that simply wants to study the impacts of the development project before making a final approval."

More here:
https://www.newrules.org/retail/rules/economic-impact-review/economic-impact-review-california