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HomeMy WebLinkAboutItem 4.13 Muni Code Superstores CITY CLERK File # Drn[ZJ[Q]-~[g AGENDA STATEMENT CITY COUNCIL MEETING DATE: May 20, 2008 SUBJECT: Ordinance Adding Chapter 8.42 (Superstores) to the Dublin Municipal Code Report Prepared by Marnie R. Nuccio, Senior Planner, Jamie L. Rojo, Assistant Planner, and Stephen Muzio, Associate Attorney ATTACHMENTS: 1) Ordinance adding Chapter 8.42, relating to Superstores, to the Dublin Municipal Code. 2) City Council Agenda Statement dated May 6, 2008, without attachments. RECOMMENDATION: r--.t~~.. . Waive reading and. ADOPT the Ordinance appro:ing th~ ~dding ~/. Chapter 8.42, relatmg to Superstores, to the Dublm MUlllclpal Code. BACKGROUND: On April 8, 2008, Staff presented a report to the Planning Commission for consideration of a Superstore Ordinance. The Planning Commission, by a vote of 3-1-1, recommended that the City Council adopt the Ordinance adding Chapter 8.42, relating to Superstores to the Dublin Municipal Code. The Commission also recommended that the City Council take into consideration the potential fiscal impact on the City of adopting the ordinance. On May 6, 2008, Staff presented a report to the City Council recommending that the City Council waive the reading and introduce the Ordinance adding Chapter 8.42, relating to Superstores to the Dublin Municipal Code (see Attachment 2). The City Council held a public hearing regarding the proposed ordinance. Following the hearing, the City Council, by a vote of 4-1-0, waived the reading and introduced the Ordinance adding Chapter 8.42, relating to Superstores, to the Dublin Municipal Code. ANAL YSIS: The term Superstore typically refers to retail establishments which sell general retail merchandise along with non-taxable grocery sales including fresh produce, meat and bakery items similar to a grocery store. ------------------------------------------------------------------------------------------------------------- COPY TO: File Page 1 of2 ITEM NO. !J- · / 3 G..IPA#1200SIPA OS-009 Superstore OrdinancelCC Mtg 05.20. OS Second ReadinglCCSR 05.20. OS. doc /) A typical large scale general merchandise retailer is between 125,000 and 145,000 square feet in size and devotes approximately 6-12% of retail merchandise to non-taxable grocery items. A typical Superstore is approximately 175,000 square feet in size and devotes 15-30% of retail merchandise to non-taxable grocery items. The Superstore Ordinance (see Attachment 1) would amend the existing Dublin Zoning Ordinance by adding a new Chapter for the prohibition of large scale retail establishments that sell a combination of taxable merchandise and groceries and other non-taxable merchandise. The Ordinance defines a Superstore as a store that exceeds 170,000 square feet in size with at least 10% or more of sales devoted to non-taxable merchandise. The Ordinance would exclude large membership stores from the prohibition. A number of local jurisdictions throughout the State of California have enacted ordinances to either prohibit superstores or require special impact studies; some of these jurisdictions include the Cities of Turlock, San Luis Obispo, Galt, Elk Grove, Oakland, Livermore, and Martinez, as well as Contra Costa County. These jurisdictions have enacted such ordinances because of various concerns about the potential of superstores to generate negative environmental and economic impacts such as: traffic and air quality impacts as consumers make longer trips than they otherwise would to purchase groceries, and shifting revenue from, and reducing the number of, neighborhood grocery stores, resulting in urban decay. Some jurisdictions have also relied on studies showing that superstores have a greater traffic impact than discount club stores. ENVIRONMENT AL REVIEW: Pursuant to Section 15061(b)(3) of the California Environmental Quality Act (CEQA) guidelines, this project is exempt from the provisions of that Act based on the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, then that activity is not subject to CEQA. The prohibition of the construction of superstores will not have a physical effect on the environment and is, therefore, exempt from the provisions of CEQA. CONCLUSION: The proposed Ordinance would regulate the prohibition of a Superstore that sells a combination of taxable merchandise and groceries and other non-taxable merchandise. The Ordinance defines a Superstore as a store that exceeds 170,000 square feet in size with at least 10% or more of sales devoted to non-taxable merchandise. The Ordinance would exclude large membership stores from the prohibition. RECOMMENDATION: Staff recommends that the City Council: 1) Waive the reading and ADOPT the Ordinance adding Chapter 8.42, relating to Superstores, to the Dublin Municipal Code. Page 2 of2 I oj ~ ORDINANCE NO. XX -08 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DUBLIN ADOPTING CHAPTER 8.42 OF THE DUBLIN MUNICIPAL CODE RELATING TO SUPERSTORES Section 1. Chapter 8.42 is hereby added to the Dublin Municipal Code to read as follows: CHAPTER 8.42 SUPERSTORES 8.42.010 Purpose. The purpose of this Chapter IS to prohibit the establishment of Superstores, as defined herein, within the City. 8.42.020 Definition. Superstore means a store that exceeds one hundred seventy thousand (170,000) square feet of Gross Floor Area and devotes at least ten (10) percent of the total sales floor area to the sale of non-taxable merchandise. "Sales floor area" means only interior building space devoted to the sale of merchandise and does not include restrooms, office space, storage space, automobile service areas or open-air garden sales space. "Non-taxable merchandise" means products, commodities or items, the sale of which is not subject to California State sales tax. The definition of Superstore does not include a discount club store where shoppers pay a membership fee in order to take advantage of discounted prices on a wide variety of items such as food, clothing, tires, and appliances and many items are sold in large quantities or bulk. 8.42.030 Superstores prohibited. Superstores, as defined in Section 8.42.020, are prohibited in all zoning districts. Section 2. The City Council hereby finds that, pursuant to Section 15061(b)(3) of the California Environmental Quality Act (CEQA) guidelines, this project is exempt from the provisions of that Act based on the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, then that activity is not subject to CEQA. The prohibition of superstores will not have a physical effect on the environment and is, therefore, exempt from the provisions of CEQA. Section 3. Severability. The provisions of this Ordinance are severable and if any provision, clause, sentence, word or part thereof is held illegal, invalid, unconstitutional, or inapplicable to any person or circumstances, such illegality, invalidity, unconstitutionality, or inapplicability shall not affect or impair any of the remaining provisions, clauses, sentences, sections, words or parts thereof of the Ordinance or their applicability to other persons or circumstances. Section 4. Effective Date. This Ordinance shall take effect and be enforced thirty Page 1 of2 :I-.+eyn# 4' 13 IS}":KIJ cR ATTACHMENT 1 c?<Djb (30) days following its adoption. Section 5. Posting. The City Clerk of the City of Dublin shall cause this Ordinance to be posted in at least three (3) public places in the City of Dublin in accordance with Section 36933 of the Government Code of the State of California. PASSED, APPROVED AND ADOPTED this 20th day of May, 2008. AYES: NOES: ABSENT: ABSTAIN: Janet Lockhart, Mayor ATTEST: Carolyn Parkinson, Interim City Clerk Page 2 of2 30g C CITY C't'ERK' File # D~[gJ[Q]-[2J[Ql AGENDA STATEMENT CITY COUNCIL MEETING DATE: May 6,2008 SUBJECT: PUBLIC HEARING: Ordinance Adding Chapter 8.42 (Superstores) to the Dublin Municipal Code Report Prepared by Mamie R. Nuccio, Senior Planner, Jamie L. Rojo, Assistant Planner, and Stephen Muzio, Associate Attorney ATTACHMENTS: 1) Ordinance adding. Chapter 8.42, relating to Superstores, to the Dublin Municipal Code. 2) Planning Commission Agenda Statement with attachments dated April 8, 2008. 3) Planning Commission Meeting Minutes dated April 8, 2008. RECOMMENDA~TION: ~;~ 3) 4) 5) Receive Staff presentation; .open the public hearing; Receive public testimony; Close the public hearing and deliberate; and Waive the reading and INTRODUCE the Ordinance adding Chapter 8.42, relating to Superstores, to the Dublin Municipal Code. BACKGROUND: At the May 1, 2007, City Council meeting, Councilmember Sbranti requested that the City Council consider a ban on Superstores in excess of 90,000 square feet with over 5% non-taxable grocery items. The Livermore City Council adopted a similar ban on March 26, 2007. On August 21, 2007, Staff returned to the City Council with an informational report for consideration of a Superstore Ordinance (see Attachment 2). The City Council directed Staff to look at sites in the City that have the potential to accommodate Superstore development and come back with a report before deciding whether to proceed with an Ordinance (See minutes of meeting in Attachment 2). On December 4, 2007, Staff returned to the City Council with an informational report on the City's exposure to potential Superstore developmep.t in the City (see Attachment 2). Staff identified four (4) ------------------------------------------------------------------------------------------------------------- COpy TO: File Attachment 2 Page 1 of 4 I G:\PA#\2008\PA 08-009 Superstore OrdinancelCC Mtg 05.06.08 1st R.eadingICCSR 05. 06. 08. doc o 40]&; sites in the City that have the potential to accommodate Superstore development (see Table 1 and Figure 1 below) and described the entitlements needed to develop the four identified properties (see Attachment 2). Robert Chen Table 1. Potential Su erstore Develo ment Sites Entitlements Needed · Site Develo ment Review and Develo ment A eement · Planned Development Zoning including a Stage 1 and 2 Development Plan · Site Develo ment Review and Develo ment A eement · Planned Development Zoning including a Stage 2 Development Plan · Site Develo ment Review and Develo ment A eement · Amended Planned Development Zoning including a Stage I and 2 Development Plan · Site Develo ment Review and Develo ment A eement Pro e Lin Property - Area C Dublin Land Company Emerald Place/Blake Hunt Ventures Emerald Place ~Hunt 28 aaes Un Property AreaC 34 aaes · ~Genenol~l.Bn'lU_ _ Dc.mpp"k$RFTA Lj~crOulllin.Sp/UI"oflnlJuonce Q _ SlJporsllm ~l.oClIlions _ Streets DClly al DutIln Based on the December 4, 2007 information report, the City Council directed Staff to proceed with the preparation of a Superstore Ordinance for consideration at a future City Council meeting at which time further discussion about square footage limitations would be discussed (see Attachment 2). On .March 18, 2008, Staff returned to the City Council with a draft Ordinance (see Attachment 2). The City Council directed Staff to proceed with the adoption of the Superstore Ordinance as identified in the March 18, 2008 Staff Report. On April 8, 2008, Staff presented a report to the Planning Commission for consideration of a Superstore Ordinance (see Attachments 2 and 3). The Planning Commission, by a vote of3-1-1, recommended that the City Council adopt the Ordinance adding Chapter 8.42, relating to Superstores to the Dublin PaQ'e 2 of 4 ~g;fb Municipal Code. The Commission also recommended that the City Council take into consideration the potential fiscal impact on the City of adopting the ordinance. ANALYSIS: The term Superstore typically refers to retail establishments which sell general retail merchandise along with non-taxable grocery sales including fresh produce, meat and bakery items similar to a grocery store. A Superstore is distinguishable from other large scale retailers, otherwise known as "big-box" retailers, by the volume of non-taxable grocery sales. A typical large scale general merchandise retailer is between 125,000 and 145,000 square feet in size and devotes approximately 6-12% of retail merchandise to non-taxable grocery items. A typical Superstore is approximately 175,000 square feet in size and devotes 15-30% of retail . merchandise to non-taxable grocery items. The Superstore Ordinance (see Attachment 1) would amend the existing Dublin Zoning Ordinance by adding a new Chapter for the prohibition of large scale retail establishments that sell a combination of taxable merchandise and groceries and other non-taxable merchandise. The Ordinance defines a Superstore as a store that exceeds 170,000 square feet in size with at least 10% or more of sales devoted to non-taxable merchandise. The Ordinance would exclude large membership stores from the prohibition. A number of local jurisdictions throughout the State of California have enacted ordinances to either prohibit superstores or require special impact studies; some of these jurisdictions include the Cities of Turlock, San Luis Obispo, Galt, Elk Grove, Oakland, Livermore, and M~ez, as well as Contra Costa County. These jurisdictions have enacted such ordinances because of various concerns about the potential of superstores to generate negative environmental and economic impacts such as: traffic and air quality impacts as consumers make longer trips than they otherwise would to purchase groceries, and shifting revenue' from, and reducing the number of, neighborhood grocery stores, resulting in urban decay. Some jurisdictions have also relied on studies showing that superstores have a greater traffic impact than discount club stores. ENVIRONMENTAL REVIEW: Pursuant to Section 15061(b)(3) of the California Environmental Quality Act (CEQA) guidelines, this project is exempt from the provisions of that Act based on the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there .is no possibility that the activity in question may have a significant effect on the environment, then that activity is not subject to CEQA. The prohibition of the construction of superstores will not have a physical effect on the environment and is, therefore, exempt from the provisions of CEQA. CONCLUSION: The proposed Ordinance would regulate the prohibition of a Superstore that sells a combination oftaxable merchandise and groceries and other non-taxable merchandise. The Ordinance defines a Superstore as a store that exceeds 170,000 square feet in size with at least 10% or more of sales devoted to non-taxable merchandise. The Ordinance would exclude large membership stores from the prohibition. PaQ:e 3 of 4 616 RECOMMENDATION: Staff recommends that the City Council: 1) Receive Staff presentation; 2) Open the public hearing; 3) Receive public testimony; 4) Close the public hearing and deliberate; and 5) Waive.the readipg and INTRODUCE the Ordinance adding Chapter 8.42, relating to Superstores, to the Dublin Municipal Code.