L.A. Business Journal Highlights Malibu's Ordinance to Limit Chains

The Los Angeles Business Journal reported this week that Malibu's proposed formula retail ordinance could face legal challenges because the city does not have an established business or historic district.

Restrictions on chain stores have become more common since a California Appeals Court upheld a similar ordinance in Coronado in 2003, the publication reported. Other cities, including Solvang and Carmel-by-the-Sea, used arguments that their ordinances putting restrictions on formula retail preserved historic character.

Proponents of the restrictions say it will help preserve Malibu's character in existing and planned development in the Civic Center.

The ordinance seeks to limit chain stores with more than six locations in Southern California. Overall, chain stores would only be allowed to make up 50 percent of a shopping center within the Malibu Civic Center. 

Developers opposing the proposed regulations include St. Louis Rams owner Stan Kroenke's Kroenke Group and Steve Soboroff, according to the L.A. Business Journal.

The proposed ordinance will go before the Malibu Planning Commission and City Council in the coming months.

Read more at the www.labusinessjournal.com.

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