City Council Formula Retail Debate Continues Monday

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Malibu Country Mart landlord Michael Koss addresses the City Council as members of Preserve Malibu and other supporters of a chain store ordinance look on. 

After shelving a decision three weeks ago amid fierce community debate, the Malibu City Council on Monday will consider a modified draft ordinance that would limit the number of chain stores in the Civic Center. The council will also vote on whether to pursue the drafting of a “specific plan” or design guidelines for the Civic Center.

Formula Retail consideration:

The latest draft of the proposed formula retail law lessens initial restrictions by eliminating a permit process for chain stores wishing to open in the Civic Center. It also increases the size limit on formula retail businesses from 2,500 to 3,500 square feet and modifies the definition of “formula retail” from having 10 or more U.S. stores to having 10 or more international stores.

The original draft called for chain stores with 10 or more franchises to obtain a conditional use permit (CUP) from the City of Malibu in order to lease a commercial space in one of the Civic Center shopping centers in central Malibu. 

If passed, the ordinance would have a likely “sunset date” for the law to expire sometime in 2014 as a means to fend off local ballot affords, according to officials. 

On Sept. 23, Councilwoman Laura Rosenthal said she would rather the council enact the ordinance before any grassroots groups initiate a ballot referendum, which she said would leave little flexibility for the city. 

“Once [a ballot referendum] passes, we’ll never be able to change it,” she said.

The chain store debate has carved a deep divide between locals and shopping center developers. The idea of a formula retail ordinance has come about as many in Malibu have become displeased with the disappearance of locally owned “mom and pop” businesses and an influx of high-end clothing stores and other national retailers. Center owners argue against any regulations from the city and believe the law could discourage new business and turn their centers into ghost towns. 

The local group Preserve Malibu has vowed to put the law to a local vote if the council fails to impose tough regulations they believe will help preserve the unique character of Malibu.

Specific Plan/Design Guidelines consideration:

“A specific plan must specify…the land uses, public and private facilities needed to support the land uses, phasing of development…and a program of implementation measures,” according to a staff report.

Preparing the Civic Center Specific Plan could cost the city upwards of $500,000, according to a staff report, and require hiring a consultant to prepare a thorough environmental impact report (EIR). 

If the council opts for design guidelines, an EIR would not be required, according to the staff report. Design guidelines could “create design criteria that [is] more prescriptive in nature” and “allow the Planning Commission to determine whether a project was consistent with the design standards.”

The council could choose to pursue both, neither or just one of the options.

For full staff reports, visit here.

The City Council meets at 6:30 p.m. on Monday at Malibu City Hall. 

Check back with The Malibu Times for results from the meeting.