SAN BERNARDINO – Senate Bill 469 is on Governor Jerry Brown’s desk awaiting his signature or veto. Local officials are concerned about what its passage means for their jurisdictions. The Small & Neighborhood Business Protection Act requires that before a big-box store where ten percent or more of the merchandise is non-taxable receives approval, an economic impact report be completed at the developer’s expense. The new requirement adds about two years to the approval process.
SB 469 will require a total of 13 new findings be made for each project including: An assessment of whether the superstore would require the demolition of housing or any other action or change that would result in a decrease or negative impact on the creation of extremely low, very low, low-, or moderate-income housing; an assessment of whether the superstore would result in the destruction or demolition of park or other green space, playgrounds, child care facilities, or community centers; an assessment of whether the superstore would result in any other adverse or positive economic impacts or blight.
The bill’s author, Senator Juan Vargas (D-San Diego), stated, “Good information is the core of good decision making. By sending SB 469 to the Governor, the California State Legislature has fought to ensure that local leaders have the facts about the impact of supercenters on their local economies, neighborhoods and communities. Research has shown that supercenters cause business districts to suffer, significantly decrease the net number of jobs, and often rely on taxpayer-funded government services, like Medicaid, to provide healthcare for their employees. That is wrong! Small businesses and local leaders deserve to have the facts!”
Not all members of the California Legislature agreed. Assemblyman Paul Cook (R-Yucca Valley) said, “This is a special-interest bill that picks winners and losers among big box stores. Proposed Wal-Mart stores would face a huge new hurdle, but a proposed Costco wouldn’t. That makes absolutely no sense. We need an even playing field and less bureaucracy so we can encourage businesses and jobs. This bill speaks to the left’s contempt over stores like Wal-Mart and has nothing to do with local control. Locals can already decide for themselves through the normal planning process.”
Cook’s opinion seems justified based on the provisions of the bill. Stores affected are those over 90,000 square feet and offering groceries. Membership stores such as Costco and Sam’s Club are exempt from the new requirements of this bill and Home Depots and similar stores are not included. Only two major retailers will feel the impact: Target and Wal-Mart. Both stores are fighting back and have the help of other big-box retailers. The California Retailers Association, which represents all segments of the retail industry, has launched a website, www.stopSB469.com, to assist big-box retailers in defeating the bill.
Local mayors have also joined the fight with letter writing campaigns, press conferences, and op-eds in local newspapers. The biggest concern expressed is the state taking local control away from cities and adding another layer of bureaucracy on top of an already burdensome and expensive approval process.
When asked what problems SB 469 will create for his city, Victorville Mayor Ryan McEachron stated, “Well I am obviously against it and feel the Governor should veto it. This does everything to take away local control, which flies in the face of the campaign promise Governor Brown stated during the campaign in his commercials about getting the power back down to the local level. This will only delay projects in the future and delay the recovery of the economy in California not to mention the thousands of jobs that will not be created as a result of this bill.”
Victorville City Councilwoman Angela Valles also expressed concerns but from another angle. “As a conservative, I support business, and anyone who claims to support business cannot support this bill. We have two Super Targets open for business in the Victor Valley and a number of proposed Wal-Mart Supercenters, so it's clear that our residents support all types of businesses, no matter what their size. Competition is one of the core strengths of a free market system — it makes business leaders more creative and efficient, and always provides better prices and experiences for the consumer.”
Hesperia Mayor pro tem and former county planning commissioner Russ Blewett had the harshest criticism of not only the bill, but of the California Legislature, for passing yet another piece of legislation that reduces local control. “It is an example of how out of touch the Legislature is. They have no business taking away local control. This is another reason why the voters of this state will make the legislature part time in the not too distant future and I will help that movement. The California Legislature is made up in many cases of the biggest bunch of self-serving, ineffective people that I have ever seen.”
Fontana Mayor Acquanetta Warren summed up the feelings of many councilpersons by stating simply, “Restore jobs in California now by not adding new layers of regulations on top of retailers that produce jobs."
The governor is expected to make a decision before the end of the month.
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