No chain stores wanted here

Two municipalities are showing how communities can restrict “formula retail” businesses that some contend undermine the character of established shopping districts. Last year San Francisco adopted Planning Code Section 703.3, a provision that determines whether a business falls into the “formula retail” category and thus can be kept out of certain neighborhood retail districts. Deputy City Attorney Sarah Ellen Owsowitz says residents felt the proliferation of chain retailers was threatening the uniqueness and appeal of some neighborhood business districts. The city’s Board of Supervisors imposed an outright ban on new formula businesses in portions of two areas: Hayes Valley, a reviving neighborhood where independent retailers appeared vulnerable, and North Beach, a historically Italian neighborhood popular with tourists. An owner who wants to do business in a protected district must “sign a statement that it is not a formula business, subject to perjury,” according to Owsowitz. A formula business is defined as one that has at least 11 locations (worldwide) and “maintains two or more of the following features: a standardized array of merchandise, a standardized façade, a standardized décor and color scheme, uniform apparel, standardized signage, a trademark or a servicemark.” Owsowitz notes that the ordinance applies to neighborhood commercial districts, not shopping areas with a larger market draw, such as downtown’s Union Square. Besides prohibiting new chain establishments in Hayes Valley and North Beach, the city gives other neighborhoods an opportunity to argue that a chain retailer should be kept out. In the Cole Valley and Haight neighborhood business districts, any new chain store must undergo a public hearing and a review by the Planning Commission. Other neighborhoods may obtain a public hearing and a review if residents request those procedures. Supporters of the limits on chain stores say the economic well-being of San Francisco requires that customers, including tourists, visit various parts of the city — something they are likely to do only where genuine differences exist between neighborhood commercial districts. The San Francisco Building Owners and Managers Association has been critical of the ordinance’s “conditional use” process, charging that it allows residents and competing businesses “the opportunity to extract concessions or additional ‘contributions’ for the privilege of setting up shop in their area.” Bristol approves its version Bristol, Rhode Island, a town of 22,000, studied the San Francisco ordinance and then adopted its own zoning amendment in May, 2004. Bristol defines “formula businesses” similarly to San Francisco except it considers a business a chain as soon as it has five units. The ordinance applies only in the downtown historic district — a small portion of the 10-square-mile town. “Historical authenticity requires uniqueness,” says Andrew M. Teitz, a Providence lawyer who serves as town solicitor. The ordinance regulates design and building size. “We can block a corporate color scheme,” he points out. “Any interior features visible from the exterior are included.” The municipality limits each new chain enterprise to a maximum of 2,500 square feet and a width of 65 feet. The width limit by itself “will keep out a lot of formula businesses,” Teitz says. The figures were arrived at by measuring the average storefront in Bristol. u