O 506 C.S.
ORDINANCE NO. 506 C.S.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO
GRANDE, AMENDING TITLE 9 OF THE ARROYO GRANDE
MUNICIPAL CODE BY ADDING THERETO SECTION 9-11.210
ENTITLED "LIMITATIONS ON RETAIL STORES IN EXCESS OF 90,000
SQUARE FEET"
WHEREAS, the City of Arroyo Grande has conducted an environmental review for
adoption of an ordinance establishing procedures to provide for the limitation of
development of retail stores in the City of Arroyo Grande, and has found that it can be
seen with certainty that there is no possibility that the proposed ordinance will have an
effect on the environment and therefore is exempt from the provisions of the California
Environmental Quality Act, Public Resources Code Section 21000, et seq.; and
WHEREAS, the City Council adopted the City of Arroyo Grande Development Code,
which became effective June 13, 1991, and indicated that modifications to the
Development Code may occur to refine the document; and
WHEREAS, the City of Arroyo Grande has a responsibility to assure adherence to the
General Plan in meeting the needs and desires of the residents and the community; and
WHEREAS, the Land Use Element of the General Plan of the City of Arroyo Grande -
adopted on May 22, 1990, identifies as an objective the maintenance of the existing
rural, small town character of the City, and to maintain existing land use patterns in
support thereof; and
WHEREAS, the Planning Commission of the City of Arroyo Grande considered this
proposed amendment to the Development Code at a duly noticed meeting on May 4,
1999 and recommends the City Council adopt the requested amendment; and
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WHEREAS, the City Council has properly considered and made findings which are
described in the ordinance in support of adoption of the ordinance; and
WHEREAS, the City Council has reviewed and considered the information in the staff
report, as well as public testimony presented at the hearing.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE
DOES ORDAIN AS FOLLOWS:
SECTION 1: Arroyo Grande Municipal Code, Title 9, Chapter 11, is hereby amended to
add the following:
ORDINANCE NO. 506 C.S.
PAGE 2
Section 9-11.210 Limitations on Retail Stores in Excess of 90,000 Square Feet
A. Purpose
To limit the development of large retail stores by restricting their ability to sell non-
taxable items to such an extent that they negatively impact the rural, small town
character of the City and change existing land use patterns.
B. Findings
1. The City of Arroyo Grande, through its General Plan, has identified
protection of its rural, small town character and existing land use patterns
as a primary goal.
2. Large retail stores that sell non-taxable items compete with existing retail
centers in a manner that may have potential adverse impacts on.the rural,
small town character of the City of Arroyo Grande.
3. Such large retail stores would also negatively impact existing smaller
stores and their workforces making the existing rural, small town shopping
centers less viable; thus degrading the continued existence of existing
retail stores and existing land use patterns.
4. The burdens on the public of large new stores can only be ameliorated by
ensuring that they provide sufficient sales tax revenue to the City.
C. Applicability
No new store may be constructed in excess of 90,000 square feet, nor an existing store
expanded, if the resulting total square footage will exceed 90,000 square feet, unless it
meets the standards for the sale of non~taxable merchandise set forth below.
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D. Limits on Non-Taxable Sales
1. If total square footage for sales is to exceed 250,000 square feet, no more
than one percent (1 %) of total square footage may be devoted to non-
taxable merchandise.
2. If total square footage for sales is to exceed 140,000 square feet, no more
than two percent (2%) of total square footage may be devoted to non-
taxable merchandise.
ORDINANCE NO. 506 C.S.
PAGE 3
3. If total square footage for sales is to exceed 90,000 square feet, no more
than three percent (3%) of total square footage may be devoted to non-
taxable merchandise.
For purposes of the above calculations, only enclosed sales area will be considered.
"Enclosed sales area" does not include restrooms, office space, breakrooms,
. backrooms, storage space, open-air garden sales space, etc. Conversions of such
space to enclosed retail sales space shall bring the project under the restrictions of the
above-described limits. The total square footage and percentage for non-taxable sales
shall include subleased and subcontracted departments.
E. Enforcement
1. The applicant, owner and tenant shall be jointly and severally liable to the
City and all other affected government agencies for all sales taxes lost as
a result of a violation. In addition, they shall be liable for liquidated
damages of $1,000 per day for each day a violation occurs, which reflects
the City's estimate of its likely damages in addition to lost taxes.
2. In addition to subparagraph 1, the City Attorney may seek injunctive relief
to stop the continued violation of this ordinance.
3. . The City may recover its full costs, including attorney. fees, in any action to
enforce the provisions of this ordinance.
4. Any taxpayer or resident of the City shall have standing to enforce the
provisions of this ordinance including recovery of all costs and reasonable
attorney fees.
SECTION 2: The City Council hereby directs the Director of Administrative Services to
file a "Notice of I;xemption" with the County Recorder.
SECTION 3: If any section, subsection, subdivision, paragraph, sentence, clause or
phrase of this Ordinance or any part thereof is for any reason held to be unlawful, such
decision shall not affect the validity of the remaining portion of this Ordinance or any
part thereof. The City Council hereby declares that it would have passed each section,
subsection, subdivision, paragraph, sentence, clause or phrase thereof, irrespective of
the fact that anyone or more section, subsection, subdivision, paragraph, sentence,
clause or phrases be declared unlawful.
SECTION 4: A summary of this Ordinance shall be published in a newspaper published
and circulated in the City of Arroyo Grande at least five (5) days prior to the City Council
meeting at which the proposed Ordinance is to be adopted. A certified copy of the full
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ORDINANCE NO. 506 C.S.
PAGE 4
text of the proposed Ordinance shall be posted in the office of the Director of
Administrative Services. Within fifteen (15) days after adoption of the Ordinance, the
summary with the names of those City Council members voting for and against the
Ordinance shall be published again, and the Director of Administrative Services shall
post a certified copy of the full text of such adopted Ordinance.
On motion of Council Member Ferrara, seconded by Council Member Dickens, and on
the following roll call vote, to-wit:
AYES: Council Members Ferrara, Dickens, Runels, and Mayor Lady
NOES: Council Member Tolley
ABSENT: None
the foregoing Ordinance was adopted this 13th day of July 13, 1999.
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ORDINANCE NO. 506 C.S.
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MICHAE~~~~
ATTEST:
! /?tutfit-
E, DIRECTOR OF ADMINISTRATIVE SERVICESI
DEPUTY CITY CLERK
APPROVED AS TO CONTENT:
~h1L. ~
ROBERT L. HUNT, CITY MANAGER
APPROVED AS TO FORM:
.
RNEY
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ORDINANCE 506 C.S.
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OFFICIAL CERTIFICATION
I, KELLY WETMORE, Director of Administrative Services of the City of Arroyo
Grande, County of San Luis Obispo, State of California, do hereby certify under
penalty of perjury, that the attached Ordinance No. 506 C.S. is a true, full, and
correct copy of said Ordinance passed and adopted at a regular meeting of the
City Council of the City of Arroyo Grande on the 13th day of July, 1999.
WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 14th
day of July, 1999.
/tUtYLR-.
, ADMINISTRATIVE SERVICES DIRECTOR
DEPUTY CITY CLERK
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