Extra scrutiny for big-box stores vetoed
Bill aimed at Walmart grew out of battle with San Diego
By Christopher Cadelago and Michael Gardner
San Diego Union Tribune
12:13 a.m., Oct. 10, 2011
Gov. Jerry Brown has vetoed legislation that would have required big-box superstores to submit a comprehensive economic analysis report when applying for a permit.
The legislation was aimed squarely at Walmart and grew out of the retail giant’s battle with the city of San Diego.
Senate Bill 469 would have required supercenters to address more than a dozen possible economic side-effects, such as the loss of jobs if competitors close, increased demand for public services by low-wage employees and potentially lower property values if storefronts are emptied.
"While I recognize that the merits of large-scale projects need to be carefully considered," Brown said in his veto message early Monday, "plenty of laws are already on the books that enable, and in some cases require, cities and counties to carefully assess whether these projects are in a community's best interest.
"This bill would add yet another layer of review to an already cumbersome process."
The measure, carried by Sen Juan Vargas, D-San Diego, drew intense interest from city and county officials, most of whom argued that the requirements unjustifiably intruded into local control over planning decisions.
Vargas had countered that local governments would be free to approve the permit, regardless of what the analysis revealed.
He said the bill would not prevent local governments from issuing permits regardless of what the analysis revealed.
“The bill says the locals get to make the decision,” Vargas said in an earlier interview. “However, they will make an informed decision.”
The measure also played out against the backdrop of prolonged union battles locally and statewide. Walmart’s push to add grocery items directly competes with many unionized supermarkets.
The United Food and Commercial Workers, in a letter of support, noted that local governments must be armed with broad, long-range cost implications.
“It is vitally important that public policy decisions be informed by data as to the various effects of a superstore on the local economy as a whole,” the letter stated.
“We are disappointed but not surprised that we couldn’t defeat the millions spent by Walmart against this bill,” said Lorena Gonzalez, secretary-treasurer of the San Diego and Imperial Counties Labor Council. “We will continue to do more to work with small businesses and local decision makers to find a solution that protects local economies from supercenters.”
Critics of the legislation countered with a series of news conferences across the state to urge Brown to veto the measure. Californians Against SB 469, which was formed to oppose the measure, applauded Brown's decision.
Bill Dombrowski, president and chief executive of the California Retailers Association, said in a statement that the veto preserved local authority to decide what businesses they want in their communities and empowers them to bring in more jobs, economic activity and revenue.
"We believe that this veto sends a clear message that California is open for business and that Gov. Brown will not support legislation intent on hampering our state’s economic recovery," Dombrowski said.
Senate Bill 469 would have covered superstores of more than 90,000 square feet that dedicate 10 percent of that space to nontaxable items, mostly food. Walmart and some newer Target stores were the most likely to be affected.
Membership stores, such as Costco, were exempt. Vargas said that’s because they pay a “livable” wage and their employees are less likely in need of government services, such as subsidized health care.
Vargas said he introduced the bill to arm communities with a complete set of facts when approached for a permit.
“What is Walmart afraid of? Vargas said during the recent interview. "Walmart is afraid of the light of day."
Walmart and its supporters counter that the stores provide badly needed jobs at a time when work is scarce as well as a low-cost place for the price conscious to find goods and services. They produced a study that shows a new Walmart that includes grocery items spurs business growth and more tax revenues.
The measure was introduced statewide after the San Diego City Council rescinded its ordinance that would have required superstores to undergo an extensive economic impact analysis as part of the permit process.
Walmart had collected 54,000 signatures to force a special election. But the council repealed the ordinance after learning that the election could cost taxpayers more than $3 million.
The legislation was aimed squarely at Walmart and grew out of the retail giant’s battle with the city of San Diego.
Senate Bill 469 would have required supercenters to address more than a dozen possible economic side-effects, such as the loss of jobs if competitors close, increased demand for public services by low-wage employees and potentially lower property values if storefronts are emptied.
"While I recognize that the merits of large-scale projects need to be carefully considered," Brown said in his veto message early Monday, "plenty of laws are already on the books that enable, and in some cases require, cities and counties to carefully assess whether these projects are in a community's best interest.
"This bill would add yet another layer of review to an already cumbersome process."
The measure, carried by Sen Juan Vargas, D-San Diego, drew intense interest from city and county officials, most of whom argued that the requirements unjustifiably intruded into local control over planning decisions.
Vargas had countered that local governments would be free to approve the permit, regardless of what the analysis revealed.
He said the bill would not prevent local governments from issuing permits regardless of what the analysis revealed.
“The bill says the locals get to make the decision,” Vargas said in an earlier interview. “However, they will make an informed decision.”
The measure also played out against the backdrop of prolonged union battles locally and statewide. Walmart’s push to add grocery items directly competes with many unionized supermarkets.
The United Food and Commercial Workers, in a letter of support, noted that local governments must be armed with broad, long-range cost implications.
“It is vitally important that public policy decisions be informed by data as to the various effects of a superstore on the local economy as a whole,” the letter stated.
“We are disappointed but not surprised that we couldn’t defeat the millions spent by Walmart against this bill,” said Lorena Gonzalez, secretary-treasurer of the San Diego and Imperial Counties Labor Council. “We will continue to do more to work with small businesses and local decision makers to find a solution that protects local economies from supercenters.”
Critics of the legislation countered with a series of news conferences across the state to urge Brown to veto the measure. Californians Against SB 469, which was formed to oppose the measure, applauded Brown's decision.
Bill Dombrowski, president and chief executive of the California Retailers Association, said in a statement that the veto preserved local authority to decide what businesses they want in their communities and empowers them to bring in more jobs, economic activity and revenue.
"We believe that this veto sends a clear message that California is open for business and that Gov. Brown will not support legislation intent on hampering our state’s economic recovery," Dombrowski said.
Senate Bill 469 would have covered superstores of more than 90,000 square feet that dedicate 10 percent of that space to nontaxable items, mostly food. Walmart and some newer Target stores were the most likely to be affected.
Membership stores, such as Costco, were exempt. Vargas said that’s because they pay a “livable” wage and their employees are less likely in need of government services, such as subsidized health care.
Vargas said he introduced the bill to arm communities with a complete set of facts when approached for a permit.
“What is Walmart afraid of? Vargas said during the recent interview. "Walmart is afraid of the light of day."
Walmart and its supporters counter that the stores provide badly needed jobs at a time when work is scarce as well as a low-cost place for the price conscious to find goods and services. They produced a study that shows a new Walmart that includes grocery items spurs business growth and more tax revenues.
The measure was introduced statewide after the San Diego City Council rescinded its ordinance that would have required superstores to undergo an extensive economic impact analysis as part of the permit process.
Walmart had collected 54,000 signatures to force a special election. But the council repealed the ordinance after learning that the election could cost taxpayers more than $3 million.
No comments:
Post a Comment