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Zoning Ordinance Amendment No. 2006-03 July 24, 2006 Page 2 Superstore retail is not conducive to a pedestrian environment due to typical bulk-type purchases, as well as the size of the building with the resulting size of the parking lot to accommodate the use. However, there are areas within the city that are well-suited to Superstore retail such as those areas located along arterial roads. There are several such businesses presently operating within the City's boundaries in commercial zones, and although the SAMC differentiates between various types of retail sectors (e.g., community commercial versus arterial commercial), it does not specifically address Superstore retail uses. Additionally, staff reviewed for context the "Shils Report" (1997) by Edward B. Shils, Ph.D., and "Impact of Big Box Grocers on Southern California" (1999) by the Orange County Business Council. These reports discuss the economic impacts associated with Superstores. The proposed ordinance defines Superstore retail as any retail use that utilizes 120,000 square feet or more of gross floor area (Exhibit 1), and uses more than 10 percent of sales floor area for non-taxable merchandise. "Sales floor area" is defined as interior space only devoted to the sales of merchandise and does not include restrooms, office space, storage space, automobile or personal service area, open-air retail or garden area, or restaurant area. Superstore retail shall be defined in SAMC Chapter 41. Parking requirements of 5:1000 for typical retail uses would also be applicable to Superstore retailers. To address the compatibility of Superstore retail with other nearby uses, it is proposed that it be conditionally permitted in C1, C2, C4 and C5 zones. Superstore retailers would not be a permitted use in the Central Business, Commercial-Museum District, Commercial South Main, Central Business-Artist Village or Residential Commercial zones where the unique retailer and pedestrian environment are essential to the purpose of the zone. This would allow the City to assess any potential impacts on a case-by-case basis. Additionally, the application will include an economic impact analysis report to examine the potential impacts on existing businesses in a three- mile buffer area. Any such report shall be completed by a pre-approved list of consultants selected by the City and funded by the applicant. Superstore retailers already in possession of a valid Certificate of Occupancy will not be subject to this new ordinance, if adopted. In concert with the City's economic development goals established by the City's Economic Development Element of the General Plan to maintain and enhance diversity of the local economic base, and Goals 1, 2 and 5 of the Land Use Element, it is recommended that the Planning Commission recommend that the City Council approve Zoning Ordinance Amendment 2006-03 (Exhibits 2 and 3) . 758-5