Update: City Council Supports Law to Ban Major Retail Chains in Chinatown

The Los Angeles City Council voted unanimously Friday to draft a law that could effectively ban major retail chains from opening in Chinatown.

It would not block a controversial Walmart grocery store in an existing building permitted late Thursday.

The 13-0 vote directed the Planning Department and the City Attorney's Office to draft a temporary ordinance to block so-called formula retail stores--stores with standardized facades, decor, signage or trademark.

The ordinance was modified just before the vote to apply only to businesses larger than 20,000 square feet.

The motion, introduced by local Councilman Ed Reyes, had been viewed as a moved to stop Wal-Mart from opening a 33,000 square-foot scaled-down "neighborhood market" in a building with senior citizen apartments on the northwest corner of Cesar Chavez and Grand avenues.

The building is located about five miles from Highland Park, and would be by far the closest Walmart location to the neighborhood. 

But the Department of Building and Safety had issued its final tenant improvement permit on 4:30 p.m. Thursday, shielding the store from ordinance.

Councilmember Reyes, who represents Chinatown, said it was "my intent to protect the character of Chinatown."

The Chinatown Business Improvement District (CBID) and some residents had supported the ordinance, saying Chinatown already has four family-owned grocery chains.

update:

In a press-release distributed on Thursday, march 22, George Yu, Executive Director of the Chinatown Business Improvement Distict, said he supported Wal-Mart's move into the neighborhood.

“The Chinatown Community is overwhelmingly supportive of the Walmart Neighborhood market that will be opening at Grand Plaza. Based on discussions we’ve had with residents, business owners and stakeholders, we feel having Wal-Mart here would impact Chinatown in a positive way,” said Yu said

Previously

Opponents of the ordinance, including the L.A. Chamber of Commerce, say it will discourage businesses that want to move to the city.

Groups on both side of the issue held rallies Thursday and Friday before the vote.

Once it is drafted, the ordinance will need the approval of the Planning Commission and the full City Council.

According to the Los Angeles Times, Reyes' motion, which also was signed by Council member Eric Garcetti, bypassed  the committee that usually vets such ordinances, preventing it from receiving a public hearing.

Related Coverage:

L.A. Council Proposal Could Keep Wal-Mart Out of Chinatown (L.A. Times)

Wal-Mart Permitted to Build in L.A.'s Chinatown (Sacramento Bee)