By Laura Altenhof
Copyright by the author

Of all the issues that communities face in dealing with retail development, those surrounding the placement of very large stores can be quite controversial. These "big boxes" — defined in the U.S. and Canada as stand-alone stores with 100,000 square feet or more — are generally built in areas with a market population of at least 250,000. However, many areas have never before dealt with this type of retail, and some policy direction is necessary to assure desirable overall community development.

What follows is a summary of the conclusions from my study of big boxes, called "Policy Options for Local Government Regarding Big Box Retailing." The study was done between March and August 1998 — to fulfill the requirements for a master's degree in urban and rural planning from Dalhousie University in Halifax, Nova Scotia. That degree was granted in October 1998.

To do the report, I studied nine communities in two Canadian provinces. They were: Barrie, Kitchener, London, Markham, and Brampton in Ontario, and Nanaimo, Richmond, Surrey, and Burnaby in British Columbia. My conclusions were reviewed by seven professional planners with backgrounds in local, regional, and provincial government, research, private consulting, and politics.

All of the communities I studied are still growing. For that reason, the results are relevant for growing communities, not those with stagnant or declining populations. Also, I did not study environmental or transportation issues, and they are not addressed here. Finally, the municipal and regional laws that apply in Canada may not coincide with those in the U.S. or elsewhere, which means that some of the options noted below may not be available outside Canada.

A. Land Use Regulations and Process

A1. Issues
Inconsistent adherence to land use and zoning regulations, resulting in big box retailers developing in industrial zones.
Unfair treatment among various commercial uses.
Retail vs. wholesale.

Possible Objectives
Want a "level playing field" to enhance competition for various commercial uses.
Don't want industrial land used for nonindustrial purposes. Want to keep appropriate uses in appropriate zones.

Policy Options
Explicitly define big box or retail warehousing, differentiating it from other warehouse uses in zoning bylaws and official plans.
State where the intended area for big box retail is, as well as where it is not.

Policy Rationale
Precise definitions and explanations eliminate ambiguity.

A2. Issue
Not prepared to deal with latest retail format.

Possible Objective
Be prepared for future.

Policy Options
Create and implement monitoring system.
Make policies flexible.

Policy Rationale
Monitoring situation will provide feedback about when policy changes are required.

A3. Issue
Not prepared to deal with latest retail format issues. The format cannot be appropriately described through the use of a single land use designation in the existing official plan.

Possible Objective
Need a solution before rewriting of official plan.

Policy Options
Create a new designation that borrows policies from existing designations. Not to be used on a site-by-site basis, and only where warranted.

Policy Rationale
A solution was required that would work within the framework of the existing official plan.

A4. Issue
Policy making is in process, and new proposals are being tabled.

Possible Objective
Need new policies before any new development can be approved.

Policy Options
Where allowed by law, institute moratoria on developments until appropriate policy changes have been made.

Policy Rationale
Having reasonable time will allow appropriate policy changes to be made.

B. Commercial Development

B1. Issue
Business activity removed from existing commercial centres, including downtowns.

Possible Objective
Wish to protect existing commercial structure, downtown, and/or historic area.

Policy Options
Establish a system of a commercial hierarchy.
Require market impact assessments for all new developments.
Designate areas and/or districts historic.
Limit new commercial development to downtown area.

Policy Rationale
Commercial hierarchy will provide structure and assure an appropriate level of service to selected areas within the community.
Market impact assessments will determine when market potential has peaked.
Areas designated as historic fall under protective legislation.
Can also serve tourism industry.
Limiting new commercial development to downtown helps to bring in consumer traffic.

B2. Issue
Smaller stores cannot compete with big box retailers.

Possible Objective
Want some degree of protection for existing commercial businesses.

Policy Options
Limit amount of floor area dedicated to a particular set of items, for example hardware and food.

Policy Rationale
Limiting floor area of a particular set of items limits range of products, and allows other merchants some room to compete with big box retailer.

B3. Issue
Pro-commercial development.

Possible Objectives
Want a flexible, progressive commercial environment that allows for diverse uses throughout the community.
Want to draw in and take advantage of regional market.

Policy Options
Simplify and clarify policies for users, that is, learn about the various types of retailers and their locational requirements, then state this in well defined, user-friendly policies that designate locations reflecting these needs.

Policy Rationale
Protectionist policies do not allow for diverse types of retail formats.
Diverse commercial environment serves consumer well.
Customer service attitude encourages business activity.

C. Infrastructure

C1. Issue
Sprawl created by big box commercial uses.

Possible Objectives
Avoid sprawling development or any development that might encourage it at sometime in the future.
Maximize use of public infrastructure.
Do not want to burden taxpayer with taxes as a result of new infrastructure required for new development.

Policy Options
Cluster big box or auto-oriented commercial uses.
Establish a big box designation.
Limit new commercial development to existing commercial designations. Require new development to pay for its own infrastructure.

Policy Rationale
Clustering makes maximum use of infrastructure.
Designation specific to big box uses may cluster the use. Budget conscious developers will use existing infrastructure.

C2. Issue
Costly infrastructure around big box uses.

Possible Objective
Do not waste money, existing infrastructure and development.

Policy Options
Direct these retail uses to existing or future planned commercial nodes.
Do not deviate from stated policy; regular adherence is the best enforcement.
Require new development to pay for its own infrastructure, as well as impact on existing infrastructure or required upgrades.

Policy Rationale
Using existing infrastructure saves money.

C3. Issue
Too much increased traffic.

Possible Objectives
Safe neighbourhoods, free from excessive traffic caused by big box retailers.
Use infrastructure efficiently.

Policy Options
Require traffic impact assessments.
Locate big box/auto-oriented retail along major thoroughfares in conjunction with a service road or internally linked driveways.
Direct new development away from local roads and neighbourhoods.
Require that extra infrastructure is paid for by big box retailer, or that tax revenues for future developments justify new infrastructure.
Require coordinated access points and pedestrian linkages.

Policy Rationale
Traffic assessments show and address problems before construction.
Locating big box uses in high traffic areas keeps them out of pedestrian-oriented areas.
Coordinating access points and sidewalks facilitates auto and pedestrian movement.

D. Site Design

D1. Issue
Uniform architectural design of big box store is unattractive.

Possible Objective
Wish to retain community character through architecture of new store.

Policy Options
Establish design guidelines for big box retailers.
Require participation of citizen group and/or design committee in development agreement.

Policy Rationale
Design guidelines provide defendable standard.
Citizen organizations and design committees can negotiate with the big box retailer to meet a happy compromise.

D2. Issue
Big box stores are too large.

Possible Objective
Do not want big box retailer in community.

Policy Options
Limit allowable floor area in single commercial developments to a maximum.

Policy Rationale
By limiting floor area of commercial developments, particular retail formats will be excluded from applying for development permits.

E1. Issue
Big box retailing ramifications cross municipal boundaries.

Possible Objectives
Do not want to lose the opportunity of additional municipal tax revenue or jobs, yet do not want "over-store" region.
Do not want big box store in community, yet want access to such a store.

Policy Options
Regional impact assessment and participation included in municipal commercial policies.
Regional commercial plan consistent with municipal plans.

Policy Rationale
Coordinated efforts maximize collective benefits and reduce collective losses.

January 1999