HomeMy WebLinkAboutCOM 0634.002 2006-2008 TESTIMONY FOR SEPT. 5~ PLANNING COMMITTEE MTG
BILL 156 - "SUPERSTORES"
Testimony Wednesday, September 5, 2007, Michael Reimer, Kailua Kona, GeoMikeS@att.net
Aloha Councilman Pilago and Committee members:
There aze several issues in Bill 165 that would benefit from clazification to provide what I
believe would better frame what the Council is trying to achieve.
I had previously prepared a perspective paper for the Council on Big Box stores on the Big
Island and the general summary is that there is no economic reason to ban them. However, there
are numerous social and infrastructure issues that need to be addressed and therefore caning
control is a feasible means to be used. Restriction via zoning has been upheld in court cases on
the mainland, including a recent California Supreme Court decision.
I believe changes in Bill 165 can be addressed with minor wording changes, deletions and .
additions. But I want to emphasize that these changes, although minor, are critical and essential
for the County to achieve its goal of creating a viable zoning classification for Superstores. .
I have prepared a short annotated addendum to this testimony with my comments and will give
provide in the interest of time, just a few examples and a brief summary.
As previously stated, the definition of superstore should be clarified. There aze many such
definitions available from numerous governmental councils that have dealt with similar Big Box
issues. First, it is rather clear that grocery commodities aze being singled out as a factor of
concern. I do not believe that is necessary and its inclusion would unnecessarily limit the power
of changes to Chapter 25. When listing 3 issues, 90,000 square feet, 20,000 dedicated to
groceries, and 25,000 SKU, the spun of the Bill could be easily defeated by having one less than
the definitions provides. Thus the use of the word "or" should be put in place rather than the
word "and." Let the Bill address all Big Box stores. In other words, grocery as a commodity
could be doleted. Long Beach California definition and clarification neazly 300 words!
The definition should reflect the spirit of what the administration is trying to achieve. It should
not allow loopholes such as many merchandisers under one roof by splitting commodities into
categories and promoting them as categories. For example, are the 70 stores at the Queens Shops
technically a superstore? There is only one landlord.
And as the last issue here, I note that parking requirement as one spot for every 400 squaze feet
of store space. That is inadequate. Fora 90,000 square foot store that would be 225 spaces.
About a third to a half would be taken up by employees. I would recommend parking for
customers be determined separately from employee parking, handicap parking and delivery or
merchandise pickup parking. A quick survey to determine an actual number could be done at
Home Depot, which falls far short of filling their parking space and Tazget that come close to
filling theirs. I would guess that azound one space, with the exclusions, for every 300 square feet
of store would be closer to a proper number.
Mahalo for the opportunity to address you today.
Comm. No. b 3 .2-
Ref. TaPraecteal G
1 Ref. Date SEP 5 2001
ANNOTATERD SUGGESTIONS FOR BILL 165:
September 5, 2007
Prepazed by Michael Reimer, Kailua-Kona, GeoMikeS@att.net
Superstores, additionally known as big box stores, megastores, supercenters, or hypermazkets
among other names, require a precise definition for the purposes of zoning classification.
Without that, there would be many loopholes created that would make the inning classification
rather useless.
The City Council of Long Beach California uses 300 words for their definition of superstore and
even that could be improved and clarified. This definition is attached as an example of a struggle
they had to suit their requirements. There are certain differences such as some merchandise in
California is tax exempt, such as medicines. Services (labor) are also not taxed.
Bill 165 presents what I consider a start for zoning classification for superstores. I offer with a
list some suggestions and thoughts for its improvement.
STORE REQUII2EMENTS FOR ZONING CLASSIFICATION
To retain the greatest flexibility, no particular item of merchandising should be singled out. For
example, groceries should not be a part of the superstore definition. It should only dwell on size
of the store, number of items offered for sale, and an indication that the items cross categorical
boundaries. Typically, superstores aze defined from 50,000 to 200,000 squaze feet. In this case,
groceries, in what seems to be of prime concern to the Council, would still be controlled if sold
in amulti-product superstore and, in fact, a large grocery store would also fall under the
superstore definition. Thus, if a large grocery wanted to open in Hawaii, such as Albertsons or
A&P, it would most likely fall under the zoning review of superstore definition.
If it is large grocery stores that are to be targeted with this rezoning then make it specific to
grocery stores. If it is all superstores that sell some groceries, then the definition is easier to not
focus on part of the retail commodities.
For example, there aze stores that specialize in home entertainment items. Circuit City, Fry's,
Sound Track are examples. Furniture stores are additional examples of stores that have large
square footage requirements. Bookstores such as Barnes and Nobel and Borders are further
examples. These stores are known as category killers.
The definition of superstore can include those that aze clubs requiting membership, This should
be included in the definitions of superstore.
The definition should clarify whether malls or markets come under the definition of superstore.
For example, the new Queens shops have 70 merchants and as there is only one lessor, could be
technically classified as superstore. Generally, it should be even though the individual shops are
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independently operated. This clarification is needed to prevent a superstore from developing
"departments" for different merchandise.
Item exemption can be made such as for phazmaceutical and typical drug store products for
health. Hygiene items such as soap, toothpaste and makeup do not have to be excluded.
If a large store closes and the property is sold and another store occupies that space, it should be
subject to this inning review. In other words, grandfathering is not appurtenant to the building,
only to the nature of the merchandise sold.
Open lots used for storage and warehousing should be specified. Typically these are home
improvement (lumber) and automobile dealerships. The lot may or may not be located adjacent
to the major store outlet Markets that aze not full time, such as a farmers market should receive
an exemption.
Council should consider requirements, such as in Maryland, where at least a certain percentage
of payrolls must be distributed as health caze costs to all qualified employees.
PARKING:
Pazking spaces for retail or wholesale customers should be at the rate of 1 space per 300 square
feet of retail space. Parking for warehousing can be determined separately based on whether or
not the operation calls for customer pickup at the warehouse, but should include space for
delivery vehicles and or storage for trailers or corrtainers.
Handicapped parking should be determined from ADA codes and guidelines.
Warehouse not accessible to retail customers should have parking spaces determined by the
number of employees working in that space.
Parking spaces for employees shall be at one space for each employee per the maximum
expected during any working shift. For example, assuming a three shift day, if the day shift
employee more people than any other shift, the number of employee parking spaces should be
determined from the number of day shift employees. If the establishment demonstrates that it
actively promotes alternate employee options such as carpooling, corporate vans or prepaid
public transportation tickets or coupons, a variance on the amount of employee parking can be
sought.
Designated or assigned parking for police and fire personnel is recommended.
Pazking for automobile service work should be determined separately based on how many
vehicles are backlogged for work.
Warehousing is not normally included in this definition unless a major portion of the operation
does not involve merchandise under a 4-square foot footprint, on stocked shelves (such as
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grocery stores) but uses a system where a customer request is entered into a tracking device and
merchandise is pulled form the warehouse. Merchandise with a footprint greater than 4 square
feet is not included in this exception for pulling stock from a warehouse.
LONG BEACH DEFINITION OF SUPERSTORE
For example, the city of Long Beach, CA defines superstore as:
"Superstore" means a major development retail project that sells from the premises good and
merchandise, primarily for personal or household use, and whose total Sales Floor Area exceeds
100,000 square feet and which devote more than 10 percent of sales floor area to the sale of Non-
Taxable merchandise(1) This definition excludes wholesale clubs or other establishments selling
primarily bulk merchandise and charging membership dues or otherwise restricting merchandise
sales to customers paying a periodic assessment fee.(2) This definition also excludes the sale or
rernal of motor vehicles except for parts and accessories, and the sale of materials used in
construction of buildings or other structures, except for paint, fixtures and hazdwaze. The above
definition shall apply to the cumulative sum of related or successive permits which are part of a
lazger groject, such as piecemeal additions to a building, or multiple buildings on a lot as
determined by the Director of Planning and Building.
For the purpose of this definition, "Sales Floor Area" means interior building space devoted to
the sale of merchandise, but excludes restrooms, office space, storage space, automobile service
floor azea of a single business establishment, the aggregate squaze footage of all adjacent stores
that share common check stands, management of the business operation of such adjacent stores,
warehouses, or distribution facilities shall be considered a single business establishment.
For the purpose of this definition, "Non taxable Merchandise" means products commodities or
items not subject to California state sales tax.(3) The definition ofnon-taxable merchandise shall
not include without limitation, Sales Floor Area devoted to any of the following categories:
services, including the services of a chiropractor, optometrist, optician, physician, surgeon,
podiatrist, dentist, spa, gym, nail salon, and travel accommodation services; theaters and other
entertainment uses; and food product sold through vending machines.(4)
(1) Here non-taxable merchandise for California includes groceries. That is not the case in
Hawaii.
(2) Here the definition seems to exclude stores such as Costco because they sell in bulls and
charge a membership fee. I would not recommend such an exclusion for the Big Island.
(3) This is a major difference between California that has some items exempt from tax and
Hawaii that includes tax on services and everything else.
(4) These are interesting allowances and should be considered by the council as to whether or
not they should be exempt from space determination and product courrting,
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