Chamber Comments on Proposed "Big Box" Ordinance

Comments to Elk Grove City Council
Proposed "Big Box" Ordinance
February 22, 2006 
Janet Toppenberg

The Chamber represents over 800 businesses in Elk Grove that provide over 20,000 jobs -- jobs that directly contribute to the standard of living in the City through wages to residents and taxes and fees to the City government.  Therefore, Chamber has a real interest in the discussion of government actions that impact business. 

The staff report (as Ms. Johns reported) and background presented for this agenda topic and the information presented to the council last year graphically illustrate that this is not a simple issue to address.  Even the definition of ‘big box’ is not the same in each jurisdiction, and a careful review of the research on the subject will show a variety of contradictory conclusions.  Therefore, we urge the council to move carefully on this issue.

With this in mind, we have a few thoughts to put on the table for consideration in any discussion of the regulation of ‘big box’ stores or any type of business. 

First, and foremost, is the question as to why – What are the concerns that would lead the Council to discuss regulating ‘big box stores’?   These should be carefully framed to direct any discussions.  Secondly, what impact would regulations have on the community, business in Elk Grove and our quality of life?  Thirdly, what is the appropriate vehicle to address the concerns? 

For instance, if the concern is appearance - The City has new design review standards that set forth rigorous standards for large commercial and retail projects, including those that would be considered ‘big box’ stores.  Is more regulation necessary and if so, why?

And if the concern is location, the City is in the process of creating its own zoning code that designates appropriate areas for specific types of development and requires rigorous review of large retail projects.  Both of these regulatory mechanisms are the result of a process that included public input.

One of the Chamber’s core values is the protection of the free market (enterprise) system.  We would want to carefully look at any proposed regulations to determine the impact they may have on this concept and a business’s ability to grow and create more jobs. 

To be valid, government regulations must be general in nature, so any action taken by a government agency will impact other businesses as well as the target business.  A discussion about rules that impact business should not be about one retailer or one site. 

As you go into your discussion this evening, we all need to keep in mind that regulations have the potential to result in unintended consequences such as the perception of an anti-business atmosphere, limitations on consumers’ choice, and unintended impacts on the local economy.  We look forward to working with the community and the City in developing any regulations that will impact local business and the local economy to ensure that they are fair and in the best interests of the whole community and result in a strong and vibrant local economy.

Thank you for your consideration of these comments.