Council President Nelson-sponsored bill bans anti-competitive covenants and declares public health emergency due to increased store closures
Today the City Council unanimously approved emergency land use legislation that prohibits the use of restricted covenants on grocery stores and pharmacies which bar grocery stores from having competing chains opening in the location of one that has closed. The legislation also declares a public health emergency due to the recent number of store closures. The ordinance, sponsored by Council President Sara Nelson (Position 9), is in direct response to several store closures including Whole Foods Market on Capitol Hill and Fred Meyer in Lake City, recognizing that neighborhood grocery stores and pharmacies provide essential goods and services for community members throughout Seattle.
“We have a duty to prevent the spread of food deserts throughout our city. We do this first by creating the conditions in which our existing grocery stores can thrive — i.e. reducing the retail theft that hurts their already thin margins,” said Council President Nelson. “This legislation adds another powerful tool by prohibiting the ability of grocery stores from imposing a restrictive covenant on the property being vacated from being used by a competing grocery store operator. This will make it easier for families accustomed to shopping in their neighborhoods to put food on their tables and will also reduce greenhouse gas emissions required to travel long distances by car to meet their needs.”
“Access to food is a human right and should not be limited due to barriers put in place by grocery store owners through restrictive covenants,” said Councilmember Debora Juarez (District 5). “We applaud Mayor Harrell and Council President Nelson for putting forth legislation to address food and pharmacy access, and to support sufficient distribution of grocery stores. We will continue to work with state representatives and Kroger to find the best solution for our communities to access food and pharmacy resources in their neighborhoods.”
“I am proud of our city for taking action to protect food access,” said Councilmember Joy Hollingsworth (District 3). “With several grocers closing across the city, and District 3 closures in First and Capitol Hill, we’re seeing clear signs that more Seattleites will experience food insecurity. This is a first step towards creating a better environment for our grocery stores and ensuring food access citywide. I want to thank our Council President and Mayor once again for this legislation.”
Background
Grocery store owners sometimes impose restrictive covenants or similar negative use restrictions limiting a property’s future use as a grocery store after they close a store and sell the property. This, combined with other industry trends, has led to many communities nationwide becoming “food deserts” — leaving neighbors without convenient access to fresh, affordable, nutritious, culturally-relevant food and essential medicine.
At least two covenants restricting a property’s future use as a grocery store have been recorded on properties in Seattle. These covenants limited the square footage of any future grocery store in that location for as long as 50 years.
What the legislation does
CB 121094 establishes an interim ordinance for one year that prohibits any negative use restrictions that limit a property’s use as a grocery store or pharmacy. The bill also approves a work plan to adopt permanent legislation.
What’s next
The legislation will go to the Mayor’s office for signature. The public will have an opportunity to offer feedback on the issue at a public hearing on Dec. 2 in Council Chambers.
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