Ordinances and zoning against dollar stores

With evidence that dollar stores provide poor quality food options and limited jobs, some communities have used certain tools to restrict their presence:

While some local governments continue to lure dollar stores to town with tax subsidies and incentives, others are doing the opposite. A dollar store NIMBY movement has been gaining traction.

In Chester, Vermont, for example, residents argued in 2012 that allowing dollar stores to come to town “will be the beginning of the end for what might best be described as Chester’s Vermontiness,” per the New York Times—a statement that itself perhaps signals the class and race associations dollar stores have come to embody. In Buhler, Kansas, the mayor saw what happened to surrounding grocery stores in neighboring Haven and rejected the dollar store chain, also citing a threat to the town’s character.

“It was about retaining the soul of the community,” he told The Guardian. “It was about, what kind of town do we want?”

More recent efforts have used zoning tweaks to limit dollar stores, whose small footprint usually lets them breeze past restrictions big-box stores cannot. In Mendocino County, California, dollar store foes passed legislation restricting chain store development writ large. And in April, the Tulsa City Council passed an ordinance that requires dollars stores to be built at least one mile away from each other in North Tulsa. It also tacks on incentives for healthy grocers and supermarkets providing healthy food to locate in that area. “I don’t think it’s an accident they proliferate in low socio-economic and African American communities,” Vanessa Hall-Harper, a city councillor who grew up in North Tulsa and shepherded the ordinance, told ILSR. Since then, Mesquite, Texas, has followed suit with a similar move.

Communities have fairly broad powers to encourage or limit the presence of certain kinds of development. If they do not desire the building or the opening of a dollar store, then they can limit or eliminate the possibilities for a dollar store in that community.

Of course, the dollar stores can respond with their own tactics. Here are a few I could imagine (drawing from similar cases involving other businesses):

  1. Building just outside the jurisdiction of the municipality.
  2. Working with a neighboring community who is willing to have them.
  3. Mounting a public campaign against the community to tout the advantages of their business.

While the third option might be more of a nuclear option, the first two mean that another municipality could benefit from sales tax and property tax revenues, the limited number of jobs, and easier access for nearby residents.

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