Is San Francisco Doing Enough to Keep Out Chain Stores?

A city law enacted in 2006 was intended to protect San Francisco's independent stores from the spread of chain - or 'formula' - stores. Stacy Mitchell explains the gaps in the current law and the efforts of one city Supervisor to tighten it.
September 15, 2012, 11am PDT | Jonathan Nettler | @nettsj
Share Tweet LinkedIn Email Comments

While "No other large American city has done as much to check the spread of chain stores as San Francisco," enduring fears that an influx of chain stores will "erode the city's distinctive character" and "weaken its economy" have some concerned leaders, like Supervisor Eric Mar, who chairs the city's Land Use and Development Committee, looking into ways to tighten the city's formula business policy.

So what about the law isn't working? "While the law has deterred some formula businesses from applying and blocked permits for others," writes Mitchell, "dozens have either won approval in neighborhood business districts or opened in areas of the city not included in the policy. Target, for example, has been granted a permit to open a store in one neighborhood business district and has another in the works in a zone not covered by the policy."

According to Mitchell, Mar plans to introduce legislation in the coming months to address some of the perceived loopholes. "He envisions adding new criteria for large formula businesses that would take into account their large market areas and include a comprehensive economic impact review. He also wants to expand the law to cover more of the city's commercial districts."

"Mar has already helped fix one part of the policy that has long vexed some neighborhoods: branches of big banks are not counted as formula businesses. In June, the Board of Supervisors passed Mar's measure to bring banks under the policy, much to the relief of people living in areas where Chase and Bank of America have opened dozens of branches, leaving less space for other types of stores."

Thanks to smitchell

Full Story:
Published on Thursday, August 30, 2012 in Institute for Local Self-Reliance
Share Tweet LinkedIn Email