Retail Development Restrictions: Is it Good for Business?

Retail Development Restrictions: Is it Good for Business?

More and more retailers are working to comply with local government land development codes as they relate to architectural design standards.  Some retailers have found a middle ground to meet the expectations of local governments.  Things such as façade makeovers and store model modifications help to ensure the wellbeing of both the retailer and the community.  The growth of new stores and obsolescence of old stores are a natural process for development and evolution in retailing.  Consumers and retailers evolve to compliment the ever changing market.” target=”_blank”>¹ However, some local governments apply restrictive measures  in an attempt to help balance economic health with the aesthetic character of their community.” target=”_blank”>²

The Tarpon Springs City Commission recently adopted a Big Box Regulation Ordinance for the stated purpose of promoting a “balanced mix of local, regional, and national-based businesses”.  The Commission also contends that the ordinance will help to “ensure that new development is in scale and consistent with the surrounding neighborhood while also preserving the unique and historic character of the City”.” target=”_blank”>²

The Vero Beach City Council is considering adoption of an ordinance to amend the definition of “Restricted Sales and Services”, limiting retail and personal service stores to 4,000 square feet of floor area.  A public hearing is scheduled for January 5, 2010.” target=”_blank”>³

Do you feel local governments should have the right to define what retailers in their community look like?  Do you feel that the presence of retail is necessary to a community’s economic well being? Is it mutually beneficial for both local governments and businesses that have specific brand design standards to find middle ground when it comes to planning and development?
The following are examples tracked by OrdinanceWatch™.  Sign up for pending local government action advisories at http://www.ordinancewatch.com/.

• Vero Beach, FL to Hold First Reading of Ordinance Regarding Restricted Retail Sales and Services

• Tarpon Springs, FL Adopts Big Box Regulation Ordinance

<sup>1. Restrictive retail policy can go wrong … BIS Shrapnel, 06 July 1999. Web. 22 Dec. 2009. ” target=”_blank”><http://www.afsd.com.au/article/bis/bispropa.htm>.
2. Agenda. City of Tarpon Springs, 15 Dec. 2009. Web. 23 Dec. 2009. ” target=”_blank”><http://ctsfl.us/MayorCommissioner/Agenda/Agenda.html>.
3. 2009 Agendas and Minutes. City of Vero Beach. Web. 23 Dec. 2009. ” target=”_blank”><http://video.covb.org/publicaccess/>.</sup>

Local Governments React to the Fallout of the Housing Crash

Local Governments React to the Fallout of the Housing Crash

Just four years ago, the real estate market in Florida was flourishing.  Flipping houses was seen as an easy way to make money.  However, an investigation by the Miami Herald uncovered that “government oversight of the housing market was so negligent that over than 10,000 convicted criminals were employed in the mortgage industry”.¹ These types of practices helped contribute to the current worldwide recession.  Because of real estate values declining, a new phenomenon known as Strategic Default is on the rise.  This is when a homeowner owes more than the house is worth and is able to afford the mortgage payment but chooses to walk away, forcing the lender to foreclose.² Strategic Defaults have become a recent trend for Florida homeowners that are managing “underwater” mortgages.  In the last quarter of 2008, this trend represented 28 percent of the defaults in Miami-Dade and Broward Counties.²

The recent increase in foreclosures has led Local Governments to tighten standards for property maintenance code.  Hallandale Beach in Broward County recently adopted an ordinance amending the Property Maintenance and Occupancy Code to mandate cleanliness of property.³

Cocoa Beach in Brevard County is considering adoption of an ordinance to add a registration mandate for properties in foreclosure, hoping to reduce public nuisance due to vacancy.⁴ Titusville, also in Brevard County, is currently considering adoption of a similar ordinance.⁵ More examples are listed below.

Some analysts say real estate market values could continue to fall as much as 30% over the next 3 years.¹ Are Local Governments making the right decision to spend more money on the aesthetic appearance of their neighborhoods?  Do you think these maintenance mandates will help your neighborhood appreciate or will they add fuel to the foreclosure fire?  Is strategic default an ethical way to deal with Real Estate woes?  Please share your thoughts by leaving a comment.

The following are some examples of recent property maintenance issues in Florida tracked by OrdinanceWatch™.  Sign up for pending local government email advisories at http://www.ordinancewatch.com/.

• Hallandale Beach, FL Adopts Ordinance Regarding Minimum Property Maintenance and Occupancy Code

• Hillsborough County, FL to Hold Public Hearing of Ordinance Regarding Property Maintenance Standards

• Cocoa Beach, FL to Continue Public Hearing of Ordinance Regarding Registration and Maintenance of Properties in Foreclosure

• Titusville, FL to Hold Public Hearing of Foreclosed Property Registry Ordinance

• Winter Haven, FL Adopts Ordinance Affecting Abandoned Real Property

^{1. Florida’s Foreclosure Disaster. (n.d.). The New Yorker. Retrieved October 27, 2009, from
http://www.newyorker.com/reporting/2009/02/09/090209fa_fact_packer}

^{2. Hatcher, M. (2009, October 24). Homeowners Walking Away from Underwater Mortgages. In     The Miami  Herald. Retrieved October 27, 2009, from http://www.miamiherald.com/business/real-estate/ v-fullstory/story/1298873.html}

^{3. City Commission Meetings. (2009, November 4). City of Hallandale Beach. Retrieved November 3, 2009, from http://www.hallandalebeach.org/index.aspx?nid=226}

^{4. Agendas & Minutes. (2009, October 27). The City of Cocoa Beach. Retrieved November 3, 2009, from http://www.cityofcocoabeach.com/FlashHomePages/government_home.html}

^{5. City Council: Archive of Minutes – 2009. (2009, October 27). The City of Titusville. Retrieved November 3, 2009, from http://www.titusville.com/Agendas.asp?SectionID=-1&CCBID=8}

Local Spending to Stimulate Your Local Economy

Local Spending to Stimulate Your Local Economy

For years, local business organizations have been promoting the “spend local” concept to help ensure local businesses thrive in their communities.  The local spending initiative, www.BackyardEconomics.com, began promoting this concept in conjunction with several state-wide association partners.¹ Their goal was to increase consumer awareness of how their spending decisions impact jobs and the state’s budget. Some thought this was an isolationist concept and ran counter to economic theories of the open market. However, local governments are also seeking ways to bolster local economies by creating Local Vendor Preference Ordinances for projects that benefit the residents of their City or County.

Broward County, FL adopted an ordinance in June 2009, updating the County Code with the Business Enterprise Act of 2009, helping to establish criteria for contract and procurement goals for the County Commission.²

The City Commission in Pembroke Pines, FL is following the Broward Commission’s lead in local business promotion.  The Pembroke Commission is scheduled to hold a second and final reading on 8/4/09 to consider adoption of a Procurement Procedures Ordinance.³

The Kissimmee, FL City Commission has also just adopted an ordinance affecting the City’s procurement processes.  The ordinance “provides that if the local vendor is the next lowest responsible bidder when compared to the non local vendor lowest bid, then the Osceola County vendor has three days to match that lowest price.”⁴

Do local spending campaigns like these support economic models? Are there Local Vendor Preference regulations in your area?   If not, do you feel there should be?  What is your outlook on spending locally to survive and hopefully defeat the current recession?  The following are some Local Vendor Preference examples from OrdinanceWatch™:

• Palm Beach County, FL to Hold Public Hearing of Local Vendor Preference Ordinance
• Broward County, FL Adopts Ordinance Regarding Procurement     and Contracting Opportunities for County Business Enterprises
• Kissimmee, FL Adopts Ordinance Regarding Local Vendor     Preference Procedure
• Parkland, FL to Hold First Reading of Ordinance Regarding     Procurement Procedures
• Pembroke Pines, FL to Hold First Reading of Ordinance Regarding     Procurement Procedures and Promoting Business with the City

<sup>1. “Backyard Economics.” 1. http://www.backyardeconomics.com/. Summer 2009. Web. July 2009. <1. http://www.backyardeconomics.com/>.
2. “Broward County Commission, Florida.” Http://www.broward.org/commission/welcome.htm. June 2009. Web. July 2009. <http://www.broward.org/commission/welcome.htm>.
3. “Pembroke Pines, FL, City Commission.” Http://www.ppines.com/. June 2009. Web. July 2009. <http://www.ppines.com/>.
4.   “Kissimmee, FL, City Commission.” Http://www.kissimmee.org/ch_gov_commission.aspx?id=73. June 2009. Web. July 2009. <http://www.kissimmee.org/ch_gov_commission.aspx?id=73>.</sup>