Power Center and Big Box Retail Policy

Purpose & Background

  • Adopted by City Council February 6, 1996
  • Purpose of the Power Center and Big Box Retail Policy:

    • To provide criteria and guidelines for evaluating proposed power center and other big box retail project requests for which one or more planning entitlements is required.
  • Issues Driving the Policy Formation:

    • Current power center requests: Five or so sites have been identified by developers as possible locations for power centers in the northern and central area of the City.
    • Economic impacts on existing retail uses: Large discount stores are increasing dramatically in number and will capture an increasing share of the retail market.
    • Retailing is highly competitive: With each new retail format, a paradigm shift must occur and existing business owners who wish to stay in business must change their businesses to respond to the new format.
    • Redistribution of retail dollars: A redistribution of buying power results from the influx of large retail stores.
    • Retail buying power is redistributed, not generated: Factors influencing the redistribution of retail dollars include:

      1. the regional commercial center share of the retail market has grown dramatically while the community/ neighborhood commercial share has shrunk
      2. population has grown and moved outward from the urban core
      3. real income has decreased since 1990
    • Mixture of Land Uses: Power centers can hinder planning efforts to mix land uses at a smaller urban scale rather than a sprawling suburban scale.
    • Building a Sense of Place:Particularly when located on the fringe of an urban area, power centers can undermine efforts to retain or build a community or town center, a sense of place.
    • Building a Strong Sense of Community: Residents believe that power center operators do not exhibit a strong attachment to the community in which the centers are located.

Goals and Policy Highlights

  • The goals of the policy are to:

    • Provide a balanced, conscious approach to locating power centers and free-standing "big box" retail development in the City so as to optimize the benefits and minimize the negative impacts of these retailers on the City, its existing and planned retail uses, and its residents;
    • Examine ways for power centers and other big box retail formats to co-exist positively in the retail market of the City and the region; and
    • Recognize and optimize the effective qualities of each retail format - regional discount retailers in a mall or stand-alone stores, regional malls, community shopping centers, neighborhood centers, and convenience retail.
  • According to developed policy, in summary, the ideal site for a power center or big box retail store:

    • is in the Downtown or within a revitalization or redevelopment area;
    • acts as a regional draw to a targeted area rather than a drain;
    • is adjacent to compatible land uses;
    • is designated for regional commercial;
    • is zoned commercial;
    • is visible from the freeway;
    • has enough capacity on roadways to serve proposed retail use;
    • has right-in access, if located near a freeway interchange;
    • is served by public transit;
    • is designed to enhance the use of public transit by employees, shoppers, and other nearby transit riders;
    • is easy to get around on foot or a bicycle;
    • is easy to get through on foot or on a bicycle;
    • has minimal traffic impacts on surrounding neighborhoods (including traffic congestion, air quality, noise, access to transit); and
    • has aesthetically pleasing building and landscape design.
  • With regard to land use planning, the City of Sacramento should:

    • Coordinate planning the location and amount of regional commercial land within the metropolitan area with the County of Sacramento and other local jurisdictions.
    • Consider developing with the County and other jurisdictions a revenue sharing program for the sales tax generation within the metropolitan area to create a setting where good planning can be accomplished without placing undue consideration on the jurisdictional location of a retail center.
    • Designate an appropriate amount of regional commercial land to serve city at build-out
    • Shift zoning from Community/ Neighborhood to Regional Commercial where appropriate
    • Appropriate a land use designation and zone for a Power Center or Big Box Retail Store
    • Consistent with Land Use Designation and Zoning: Preferably locate a power center or big box retail development in an area that is currently designated and zoned for regional commercial uses, consistent with the appropriate land use designations and zones described in the paragraph above
    • Allow the location of power center or big box retail development where the retail use is compatible with adjacent uses. The chart below identifies compatibility guidelines for locating a power center or big box retail store near other land uses.
    • Designate each retail center at an appropriate size based on the scale of the center (i.e., regional, community, or neighborhood)
    • Foster a mixture of land uses within a power center, including possibly office and other retail uses.
    • Foster a mix of retail types rather than duplicating tenants in order to increase the viability of existing commercial land.
    • Review the qualifications of the principal players in the power center proposal as an indicator of possible success of the proposed power center
    • Project a specific economic impact analysis where economic impacts of the project on existing and planned retail businesses, including the Downtown are reviewed and analyzed by the Economic Development Department during the project review of a proposed power center or big box retail development request