Reston Spring

Reston Spring
Reston Spring

Wednesday, September 4, 2013

Could chain stores be stopped in Reston's urbanizing areas?

Regrettably, I think the answer is almost certainly "no," but San Francisco--easily the quirkiest city in America--is setting an example that other cities, large and small, are following.  As this article by Henry Grabar in Salon points out, it has some serious local economic advantages.  Here are some excerpts from the article: 

You might not realize, walking the streets of Nob Hill, that you are experiencing an urban economy governed by the tightest big-city regulations on “formula retail” in the country. That’s because the San Francisco’s anti-chain net, while unique among large cities, is fairly permeable: three out of four chains that apply for permission to operate in one of the city’s protected zones are approved. Sure, San Francisco is quirky and diverse, true to its reputation, and bursting with independent bookstores, cafes, restaurants and boutiques. But the city isn’t an oasis: as in any other large U.S. city, there are dozens of Starbucks and Subway shops here too.
Supporters say the 75 percent approval rate does not do justice to the system’s efficacy. Seeking authorization forces chains to make concessions to neighborhood interests, and the deterrent effect — Qdoba might not even attempt to open across from a favorite local burrito joint — is impossible to quantify. Two recent high-profile cases – the rejection of Starbucks and Chipotle earlier this year – have fueled the sense that neighborhoods wield real power. In the case of Starbucks, 453 signatures were submitted in support; 4,200 signatures in opposition.
The impact of the law has grown over time. . . .
What separates San Francisco’s political achievement from griping in Greenwich Village or Venice Beach is the employment of economic data to prop up the power of the plebiscite. That data comes largely from one firm, Civic Economics, which is responsible for more than half of the studies listed in the appendix of the San Francisco Planning Commission memo [PDF] that addresses formula retail controls. . . .
The results were striking: for every $100 spent at a chain, approximately $13 remained in the local economy, largely through wages. For every $100 spent at the local outfit, $45 would recirculate locally, thanks to wages, corporate profits, locally oriented procurement, and potential future investment in the community, ranging from sponsorship of a Little League team to opening a second branch. The cost of a book or CD might be marginally higher, but the return for the city was nearly three times better at Waterloo Records and Book People. Borders didn’t move in.
Since then, Civic Economics has performed parallel analyses for other cities, including San Francisco, and obtained similar results. “The numbers were undeniable,” Houston said. “Nobody ever offers subsidies to the local bookstores — it’s crazy to think you’re giving subsidies to these non-local restaurants.” . . .
Click here for the rest of this intriguing urban development article.  If it can be done here (so many legal and historical precedents against this kind of thing), it might very well deeply enrich Reston's prospective urban areas as well as the community in which they operate.  

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