Council Members Introduce Anti-Big Box Legislation

PHILADELPHIA-Three City Council members introduced legislation, replete with references to "predatory superstores," that would prohibit construction of retail units larger than 180,000 sf and of stores larger than 90,000 sf that devote more than 10% of their interior space to selling such non-taxable items as food, cosmetics, toiletries and over-the-counter drugs.

Among the reasons for the legislation, as spelled out in the bill, is that stores in excess of 90,000 sf, "require a significantly higher commitment of police, fire, and public safety resources in comparison to smaller neighborhood stores." It also says such stores have a negative and anti-competitive impact on others operating in the same market, and foster potential traffic congestion and pollution. The bill would require stores larger than 90,000 sf to generate significant municipal revenue to offset "the added costs and burdens of their existence on local government."

One local retail broker, on condition of anonymity, tells GlobeSt.com the bill was promoted "by the grocers' union and is aimed squarely at Wal-Mart. It's anti-big box legislation that attempts to prohibit a big Wal-Mart, the kind that sells groceries along with everything else, from coming to Philadelphia."

Calling the proposed legislation "regressive in a city that hopes to be progressive," Steven Gartner, president of locally based Metro Commercial Real Estate, tells GlobeSt.com the bill is "absurd. Wal-Mart anchors many good centers that accommodate more than a Wal-Mart, and good centers get built because stores want to be around them."

Gartner acknowledges that supercenters have plusses and minuses. "On the plus side they bring affordable, first-class, name brand goods to neighborhoods that need competitive prices," he says. "Why should somebody in a blue collar neighborhood have to pay $4.99 for shaving cream when he can get it at Wal-Mart for $1.99? On the downside, they do clearly often put smaller, neighborhood stores out of business. But, market forces should decide what stores get developed, not government," Gartner adds.

Asked to predict whether or not the bill will pass, he says, "I can't. Wal-Mart is a lightening rod and big topic now. But the bill would also prohibit Target, wholesale clubs and a lot of others."