Aug. 10, 2005

Arroyo council says 'no' to chain stores
Despite opposition from some merchants, council unanimously turns down 'formula' shops in Village

By Cynthia Neff/The Tribune

Wearing white stickers reading "Support Free Enterprise," a half-dozen Arroyo Grande business owners urged local leaders to let competition -- even chain stores such as Starbucks -- into the Village.

But City Council members decided otherwise Tuesday night. They unanimously passed a set of rules restricting "formula businesses" from East Branch Street, Traffic Way to Crown Hill Street and Le Point Street to Poole Street.

The area includes 38 retail stores and 13 restaurants.

"We have a wonderful and unique marketing opportunity with the Village of Arroyo Grande," said Councilman Jim Dickens. "If we open the doors, in my mind, that will be hampered."

The council will have to give final approval of the ordinance at its next meeting before the new rules go into effect.

Formula businesses include retail stores and restaurants, including fast-food chains, required by contract to adopt standardized services, decor, uniforms, architecture or other features virtually identical to six or more establishments.

Such stores include Starbucks, Victoria's Secret, Borders and Jamba Juice.

More than 20 people spoke during Tuesday's meeting. About a dozen spoke against the idea, while about six people argued for it. A couple of people suggested changes to the proposal before they could support it.

Supporters of such an ordinance said the Village's unique character must be protected and chains should be limited to other parts of town.

Opponents -- including the city's Chamber of Commerce -- said the proposed rules would prohibit free enterprise.

"Competition is good; it builds incentive," said property owner and former county Supervisor Howard Mankins. "It gets you off your tail end. I feel like it's premature to have an ordinance of this nature."

Greg Steinberger, owner of Doc Burnstein's Ice Cream Lab, said, "Is this ordinance going to stop a tattoo parlor from opening in the Village, which isn't something we want? No it wouldn't.

"What really motivated this is kind of a concern about a competitor coming in," he added, referring to the rumor that Starbucks was considering opening in the Village.

Starbucks representatives have said they have no plans to put another coffee shop in Arroyo Grande.

Cynthia Neff covers South County for The Tribune. She can be reached at 781-7935 or at cneff@thetribunenews.com.

© 2005 San Luis Obispo Tribune and wire service sources. All Rights Reserved.

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