In every region of the country, chain store developers have successfully played neighboring communities against one another to gain approval for their stores and to exact the biggest tax breaks and public subsidies. But nowhere have city officials been as desperate for sales tax revenue—and thus big box stores, shopping malls, and auto dealerships—than in California, where the competition for retail development has been especially costly and destructive.

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San Francisco Board of Supervisor’s President Tom Ammiano has proposed a citywide ordinance that would require retail development projects larger than 50,000 square feet, with the exception of supermarkets, to undergo an impact review and obtain a conditional use permit before building.

The ordinance notes that large retail stores could impact traffic, reduce the diversity of the city’s economic base by eliminating smaller businesses, and preclude higher value industrial development on the few sizable parcels of urban real estate available. For these reasons, according to the ordinance, large retail stores warrant added scrutiny. 

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Citizens for Responsible Growth, a grassroots group in Agoura Hills, California, has collected enough signatures to put a measure before the voters that would limit retail stores to 60,000 square feet. The vote will be held March 5.

The city council vehemently opposes the ordinance, contending that it will reduce future sales tax revenue and invite legal challenges. Dozens of communities have enacted size caps, which have consistently been upheld by the courts as a valid use of local land use authority.

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