Council approves 45-day moratorium on new discount stores
The Downey City Council on Wednesday passed a 45-day moratorium on new single-price discount stores. (Photo by Vincent Medina)
DOWNEY — A 45-day interim urgency ordinance prohibiting any new single-price overstock discount stores (SPODS) in Downey was unanimously approved by city council during a special meeting Wednesday night.
The temporary moratorium bans the approval, establishment, relocation, or expansion of these stores, aiming to give city staff time to research and develop appropriate regulations for these businesses and their community impact, according to the meeting agenda.
The ordinance can be extended for an additional 10 months and 15 days after a public notice, hearing and a written report explaining the measures taken to alleviate the condition that led to the urgency legislation.
A report on the issue was presented by Laurel Reimer, a contract planner. She is also a principal at Sagecrest Planning and Environmental.
Reimer explained that, for the purposes of the ordinance, a SPODS is a retail store that sells individual items, the majority of which are obtained through an outlet, closeout, liquidation or overstock, and sold at a low price range, usually $10 or less. Most SPODS will dedicate less than 15% of its shelf space to fresh or frozen foods or produce.
“Single price overstock/discount stores often negatively impact an area’s economic vibrancy because these stores typically do not offer any improvements, or minimal improvements, to the spaces that they occupy,” said Reimer. “They frequently attract other bargain retail users, and they discourage higher quality retail and commercial uses from locating nearby.”
Reimer said that these businesses can contribute to resident fear and safety concerns by being a source of trash, graffiti and theft, as they frequently have poor security. She said that without further regulations, the stores may have a negative impact on the city and pose immediate threat to public health, welfare and potentially start an irrevocable downward shift in the economic and aesthetic value of Downey’s commercial areas.
There are 26 discount stores in the city, but only eight of them qualify under the ordinance definition of SPODS.
They are Daiso at 8970 Apollo Way, Dollar Tree at 10227 Lakewood Blvd., Dollar Tree at 8330 Firestone Blvd., Dollar Tree at 11916 Paramount Blvd., Five Below at 9090 Apollo Way, Mart One at Inc 9913 Paramount Ave., Melo at 8022 Florence Ave. and 8 One Stop Bargain at 7920 Florence Ave.
A fourth Dollar Tree location is preparing to open at the former Party City site in the Downey Landing.
Council member Horacio Ortiz asked why other stores in Downey would not qualify as a SPOD.
Reimer said that while the 18 stores not listed such as Ross, Burlington Coat Factory, and Nordstrom Rack, have discounted and liquidated items, those products are not sold at very low discounted prices of less than $10.
Staff requested the moratorium to give them time to research the issues with SPODS, how they are defined and where they should be located. They will also review how other cities determine the development standards and practices to regulate the businesses.
“Residents have also reported a lot of the loitering is around these discount stores,” said mayor pro tem Dorothy Pemberton. “I think namely, they don’t provide security. They don’t have somebody out there monitoring it or telling (loiterers) that they can’t stay and then it is a blight on the neighborhood.”
A motion was made to vote on the ordinance and it was passed unanimously with Councilman Mario Trujillo absent.
The 45-day period prohibiting new SPODS in Downey began immediately and will end on Saturday, July 12.