The new policy is an interim measure meant to prevent supercenter development while a permanent retail development policy is crafted for the city's 2010-2035 General Plan update. A similar policy approved earlier this year required that only retail use permit applications in industrial zones go before the Council for final approval. A proposal for a permanent ordinance is expected in late January.

The new policy was made in response to a November report by consultant Keyser Marston Associates analyzing the potential economic effects of a new big box retailer operation with a grocer component upon current grocers in Santa Clara. The evaluation forecast an oversaturation of grocery service for the City and predicted potential adverse effect on existing vulnerable grocers within the city.

The policy requires that all big-box retail applications be referred to the City Council for consideration prior to the issuance of building permits. "The council, in its consideration of the matter, may take into account whether the proposal will substantially adversely affect, among other things, the "economic effects on the public convenience and welfare of the residential and business community."

In passing the new policy, Council members determined that while staff did not anticipate any new applications prior to the end of January it did not want someone coming in and submitting a proposal that could slip through under the old rules. It's better to raise the bar on expectations now, they decided, especially since it likely is a big retail that could come into a community and take advantage of lax rules in the down economy.