Item No.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: OFFICE OF THE CITY MANAGER
BY: IRMA HUITRON, DIRECTOR OF COMMUNITY DEVELOPMENT
DATE: JULY 8, 2025
SUBJECT: CONSIDERATION OF AN UNCODIFIED URGENCY ORDINANCE
EXTENDING A MORATORIUM ON SINGLE PRICE
OVERSTOCK/DISCOUNT STORES WITHIN CITY LIMITS FOR AN
ADDITIONAL TEN (10) MONTHS AND FIFTEEN (15) DAYS
EXECUTIVE SUMMARY
The City Council will consider an extension of a moratorium on single price overstock/discount stores (SPODS) for an additional 10-months and 15 days, until May 27, 2026, to allow staff to further study the issues in accordance with Government Code Section 65858 (Attachment A). The current Interim Urgency Moratorium No. 25-1528 is set to expire on July 12, 2025.
In accordance with Government Code Section 65858(a), the City may extend the moratorium for an additional ten (10) months and fifteen (15) days following public notice and public hearing. Pursuant to Government Code Section 65858(d), a written report describing the measures taken to alleviate the conditions that led up to the adoption of the moratorium is required, and said report must be published at least ten (10) days prior to the moratorium’s expiration or extension. On June 24, 2025, the City Council issued and filed the requisite report (Attachment B).
RECOMMENDATION
That the City Council:
Adopt Ordinance No. 25-1529, an Uncodified Urgency Ordinance, extending a moratorium on the approval, commencement, establishment, relocation, or expansion of single price overstock/discount stores within city limits for an additional ten (10) months and fifteen (15) days pursuant to Government Code Section 65858.
BACKGROUND
Pursuant to State law, Government Code Section 65858, a city may enact an interim zoning ordinance on an urgency basis (“Urgency Ordinance”) for the protection of public safety, health, and welfare by prohibiting any use(s) that a city is intending to study within
EXTEND MORATORIUM ON SINGLE PRICE OVERSTOCK/DISCOUNT STORES JULY 8, 2025
PAGE 2
a reasonable period of time. On May 28, 2025, the City Council adopted Urgency Ordinance No. 25-1528 establishing a 45-day moratorium on the approval, commencement, establishment, relocation, or expansion of single price/overstock discount stores (SPODS) within City limits (Attachments C and D). The interim moratorium will expire on July 12, 2025, unless extended by the City Council.
In accordance with Government Code Section 65858(a), the City may extend the Moratorium for an additional ten (10) months and fifteen (15) days following public notice and public hearing. Pursuant to Government Code Section 65858(d), a written report describing the measures taken to alleviate the conditions that led up to the adoption of the Moratorium is required and said report must be published at least ten (10) days prior to the Moratorium’s expiration or extension. On June 24, 2025, the City Council issued and filed the requisite report.
SPODS may have a profound impact on the public health, safety, general welfare, and quality of life of surrounding communities. The Downey Municipal Code does not specifically identify SPODS as permitted by right or as a conditional use, so there are currently no specific regulations to curb threats to the public health, safety, or welfare posed by SPODS. There is concern that the proliferation of SPODS without further regulation could have adverse impacts on the City.
ANALYSIS
Staff has been studying the issues associated with SPODS to determine how they should be defined, how they should be permitted, and which locations are most appropriate to mitigate any potential adverse impacts on the City. Additionally, staff has been researching development standards and best practices from other jurisdictions to determine if they would be appropriate in Downey. Staff needs additional time to continue this research and to draft a proposed text amendment to the Zoning Code to adequately address the issues related to SPODS as outlined in the 10-day report (Attachment B).
ENVIRONMENTAL ANALYSIS
Staff has reviewed the proposed urgency ordinance for compliance with the California Environmental Quality Act (CEQA). Upon completion of this review, it has been determined that this Ordinance is not subject to the California Environmental Quality Act pursuant to Section 15061(b)(3) of the CEQA Guidelines because it will not have a significant effect on the environment, as the Ordinance will temporarily preclude the approval, commencement, establishment, relocation, or expansion of certain land uses City-wide.
PUBLIC NOTICE
EXTEND MORATORIUM ON SINGLE PRICE OVERSTOCK/DISCOUNT STORES JULY 8, 2025
PAGE 3
On June 26, 2025, a notice of the public hearing was advertised in the Downey Patriot as required by California State Law under Government Code Section 36931-36937 and DMC Section 512.
PUBLIC COMMENTS
As of the date of the publication of this report, staff has not received any correspondence regarding this application.
CITY COUNCIL PRIORITIES
Economic Vibrancy
Quality of Life, Safety & Infrastructure
FISCAL IMPACT
There are no fiscal impacts identified with this action.
ATTACHMENTS
Attachment A: Ordinance No. 25-1529
Attachment B: June 24, 2025 10-Day Report
Attachment C: Interim Urgency Ordinance No. 25-1528
Attachment D: May 28, 2025 City Council Staff Report
Attachment B
Attachment B
Attachment B
ORDINANCE NO. 25-1528
AN INTERIM URGENCY ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF DOWNEY PURSUANT TO GOVERNMENT CODE SECTION
65858 ESTABLISHING A 45-DAY MORATORIUM ON THE APPROVAL,
COMMENCEMENT, ESTABLISHMENT, RELOCATION, OR EXPANSION
OF SINGLE PRICE OVERSTOCK/DISCOUNT STORES WITHIN CITY
LIMITS
WHEREAS, the City of Downey has the police power pursuant to Section 7 of Article XI of the California Constitution to make and enforce ordinances to regulate the use of land within its jurisdictional borders; and
WHEREAS, Government Code Section 65858 expressly authorizes the City Council, in order to protect the public safety, health, and welfare, to adopt an interim urgency ordinance prohibiting uses that may be in conflict with a contemplated general plan, specific plan, or zoning proposal that the legislative body, planning commission, or the planning department is considering or studying or intends to study within a reasonable time, provided that the urgency measure shall require a four -fifths vote of the legislative body for adoption, and shall be of no further force and effect forty-five (45) days from its date of adoption, unless duly extended in accordance with applicable law; and WHEREAS, this type of interim urgency ordinance may be adopted without following the notice and hearing procedures otherwise required prior to the adoption of a zoning ordinance; and
WHEREAS, a single price overstock/discount store (or stores as appropriate) SPODS") is generally defined as a retail store that sells individual items generally obtained through outlet, close-out, discontinued, liquidation, or overstock, primarily at a single discount price or in the low and very low price ranges (e.g., $10.00 or less); and WHEREAS, SPODS generally dedicate less than fifteen percent (15%) of shelf space to fresh or frozen foods and produce and sell at retail an assortment of physical goods, products, or merchandise directly to consumers, including food or beverage for off -premises consumption, personal grooming and health products, household goods, and other consumer products; and
WHEREAS, the Downey Municipal Code does not specifically identify SPODS as permitted by right or as a conditional use, so there are currently no specific regulations to curb threats to the public health, safety, or welfare posed by SPODS; and WHEREAS, there is a concern that the proliferation of SPODS, without further regulation, may have adverse impacts on the City. SPODS can have profound effect on the health and quality of life of the surrounding neighborhoods: they typically offer for sale lower quality items that cost more per ounce over time; they contribute to local residents' fear of safety by being a source of trash, loitering, graffiti, and theft in their vicinities due to lack of security; and they discourage residents from engaging in their communities; and WHEREAS, SPODS inhibit the upgrading of commercial areas in the City; and Attachment C
ORDINANCE NO. 25-1528
PAGE 2
WHEREAS, there are currently eight (8) SPODS in the City, and the City's lack of regulations governing SPODS could result in an oversaturation of such uses in the City; and
WHEREAS, absent clear regulation, the proliferation of SPODS in the City poses a current and immediate threat to the public health, safety, and welfare because such development will prompt an irrevocable downward shift in the economic and aesthetic value of commercial areas and thus impair the economic development and other goals of the City; and
WHEREAS, the approval, commencement, establishment, relocation, or expansion of additional SPODS would result in this threat to public health, safety, and welfare; and
WHEREAS, the City intends to study the issues associated with SPODS to determine how they should be defined, how they should be permitted, which locations are most appropriate to mitigate any potential adverse impacts on the City, and review development standards and best practices from other jurisdictions to determine if they would be appropriate in Downey; and
WHEREAS, after undertaking this study, the City intends to enact regulations specific to SPODS, but in the interim, the City Council finds it necessary to establish a moratorium on the development of new SPODS or the expansion of existing SPODS under the circumstances above in order to prevent a conflict with the contemplated new policies or regulations.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DOWNEY
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. The City Council finds that all of the foregoing recitals are true and correct and are hereby incorporated and adopted as findings of the City Council as if fully set forth herein.
SECTION 2. The City Council finds and determines that this Ordinance is not subject to the California Environmental Quality Act pursuant to Section 15061(b)(3) of the CEQA Guidelines because it will not have a significant effect on the environment, as the Ordinance will temporarily preclude the approval, commencement, establishment, relocation, or expansion of certain land uses City-wide.
SECTION 3. California Government Code Section 65858 expressly authorizes the City Council, in order to protect the public safety, health, and welfare, to adopt an interim urgency ordinance prohibiting uses that may be in conflict with a contemplated general plan, specific plan, or zoning proposal that the legislative body, planning commission, or the planning department is considering or studying or intends to study within a reasonable time, provided that the urgency measure shall require a four -fifths vote of the legislative body for adoption.
Attachment C
ORDINANCE NO. 25-1528
PAGE 3
SECTION 4. The City Council, in accordance with Government Code Section 65858, hereby adopts this interim urgency ordinance establishing a 45-day moratorium on the approval, commencement, establishment, modification, relocation, or expansion of Single Price Overstock/Discount Stores (SPODS) City-wide while City staff researches appropriate regulations. During this period, no permit shall be issued for the development of any SPODS within the City. The foregoing shall explicitly prohibit the issuance of any zoning, land use, discretionary permit, building permit, environmental approval, business license, or any other entitlement involving businesses defined as SPODS.
SECTION 5. This Ordinance shall take effect immediately and have no further force and effect forty-five (45) days from the date of its adoption; unless, however, after public hearing, the City Council, by four -fifths (4/5) vote, extends this Ordinance for an initial period of ten months and fifteen days and subsequently, after public hearing, the City Council, by four -fifths (4/5) vote, extends this Ordinance for one year.
SECTION 6. If any section, subsection, paragraph, sentence, clause or phrase of this Ordinance or any part thereof is declared by a court of competent jurisdiction to be unconstitutional or otherwise invalid, such decision shall not affect the validity of the remaining portions of this Ordinance or any part thereof. The City Council declares that it would have adopted this Ordinance, and each section, subsection, sentence, clause, phrase or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional.
SECTION 7. This Ordinance is introduced, passed, and adopted at one and the same meeting and is thereafter immediately effective. Based upon the findings adopted in Section 1 of this Ordinance, there is a current and immediate threat to the public health, safety, and welfare, and this Ordinance is therefore necessary to protect the public health, safety, and welfare.
SECTION 8. The City Clerk shall certify to the adoption of this Ordinance and cause the same to be published in the manner prescribed by law.
APPROVED AND ADOPTED this 28t" day of May, 2025.
HECTOR SOSA, Mayor
ATTEST:
Y11
MARk ALICIA DUARTE, C
City Clerk
Attachment C
ORDINANCE NO. 25-1528
PAGE 4
APPROVED AS TO FORM:
qa4lu Lxl lt'-A
JOfiN M. FUNK
City Attorney
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES) ss:
CITY OF DOWNEY )
I HEREBY CERTIFY that the foregoing Interim Urgency Ordinance No. 25-1528, was adopted at a Special meeting of the City Council of the City of Downey held on the 28th day of May, 2025, and by the following vote, to wit:
AYES: Council Members:
NOES: Council Members:
ABSENT: Council Members:
ABSTAIN: Council Members:
Frometa, Ortiz, Pemberton, Sosa
None.
Trujillo
None.
I FURTHER CERTIFY that the full Interim Urgency Ordinance No. 25-1528, was published in the Downey Patriot, a newspaper of general circulation in the City of Downey, on May 29, 2025 (after adoption, including the vote thereon). It was also posted in the regular posting places in the City of Downey on the same dates.
A. 4ALaALICIA DUAR ,M
City Clerk
Attachment C
Item No.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: OFFICE OF THE CITY MANAGER
BY: IRMA HUITRON, DIRECTOR OF COMMUNITY DEVELOPMENT
DATE: MAY 28, 2025
SUBJECT: CONSIDERATION OF AN INTERIM URGENCY ORDINANCE
ESTABLISHING A 45-DAY MORATORIUM ON SINGLE PRICE
OVERSTOCK/DISCOUNT STORES WITHIN CITY LIMITS
EXECUTIVE SUMMARY
The City Council will consider adopting an Interim Urgency Ordinance to establish a 45- day moratorium on single-price overstock/ discount stores within City limits. If approved, the Ordinance will become effective immediately and will be effective for a period of 45 days. The proposed Urgency Ordinance protects public safety, health, and welfare while the City studies the impact of such uses and consistency with the adopted General Plan, Specific Plans, and the Zoning Ordinance.
RECOMMENDATION
That the City Council:
Adopt Interim Urgency Ordinance No. 25-1528, pursuant to Government Code Section 65858 establishing a 45-day moratorium on the approval, commencement, establishment, relocation, or expansion of single price overstock/discount stores within City limits.
BACKGROUND
Pursuant to State law, Government Code Section 65858, a city may enact an interim zoning ordinance on an urgency basis (“Urgency Ordinance”) for the protection of public safety, health, and welfare by prohibiting any use(s) that a city is intending to study within a reasonable period of time. An Urgency Ordinance takes effect immediately upon adoption and no public hearing notice is required. If approved, the Urgency Ordinance will be effective for a period of 45 days from the date of adoption. The City may extend the Urgency Ordinance for a period of 10 months and 15 days with public notice and a public hearing. A written report is required pursuant to Government Code Section 65858(d) describing the measures taken to alleviate the conditions that led up to the adoption of the Urgency Ordinance, and said report must be published either before the Urgency Ordinance’s expiration or extension.
APPROVED BY
CITY MANAGER
Attachment D
MORATORIUM ON SINGLE PRICE OVERSTOCK/DISCOUNT STORES
MAY 28, 2025
PAGE 2
The Downey Municipal Code defines “Retail sales, new” and “Retail sales, used” but does not provide definitions for specific retail types. Under the current code, a single price overstock/discount store selling new merchandise is included under the broader “Retail sales, new” category and is considered a permitted use in the C-1, C-2, C-3, C-M and M- U zones. Single Price overstock/discount stores often negatively impact an area’s economic vibrancy because such uses offer minimal or no improvements to the existing structures they occupy, and they attract other bargain retailer uses and discourage higher quality retail and commercial uses from locating nearby.
ANAL YSIS
For the purpose of this ordinance, a “single price overstock/discount store” (SPODS) is defined as a retail store that sells individual items generally obtained through outlet, close- out, discontinued, liquidation, or overstock, primarily at a single discount price or in the low- and very low- price ranges (e.g., $10.00, or less). A SPODS generally dedicates less than fifteen percent (15%) of shelf space to fresh or frozen foods and produce and sells an assortment of physical goods, products or merchandise directly to the consumer, including food or beverage for off-premises consumption, personal grooming and health products, household goods, and other consumer products.
SPODS may have a profound impact on the public health, safety, general welfare, and quality of life of surrounding communities. They often negatively impact an area’s economic vibrancy because such uses offer minimal or no improvements to the existing structures they occupy, and they attract other bargain retailer uses and discourage higher quality retail and commercial uses from locating nearby.
SPODS typically have lower quality items, items that cost much more per ounce over time, and limited access to fresh foods. Furthermore, SPODS contribute to local resident fear of safety by being a source of trash, loitering, graffiti, and theft in and around them due to their lack of security. The Downey Municipal Code does not specifically identify SPODS as permitted by right or as a conditional use, so there are currently no specific regulations to curb threats to the public health, safety, or welfare posed by SPODS.
There is concern that the proliferation of SPODS without further regulation could have adverse impacts on the City. Should SPODS continue to be unregulated, such developments would constitute a current and immediate threat to the public health, safety, and welfare in that such a development will start an irrevocable downward shift in the economic and aesthetic value of commercial areas and thus impair the economic development and other goals of the City. Currently, there are approximately 26 discount- type retail stores in the City, and approximately eight (8) of those locations’ operations appear to align with the definition of SPODS.
Attachment D
MORATORIUM ON SINGLE PRICE OVERSTOCK/DISCOUNT STORES
MAY 28, 2025
PAGE 3
Table 1
Single Price Overstock Discount Stores (SPODS) in Downey No. Business Name Address
1 Daiso 8970 Apollo Way
2 Dollar Tree 10227 Lakewood Blvd
3 Dollar Tree 8330 Firestone Blvd
4 Dollar Tree 11916 Paramount Blvd
5 Five Below 9090 Apollo Way
6 Mart One Inc 9913 Paramount Ave
7 Melo 8022 Florence Avenue
8 One Stop Bargain 7920 Florence Ave
Source: City of Downey, Community Development Department, May 19, 2025 Staff intends to study the issues associated with SPODS to determine how they should be defined, how they should be permitted, and which locations are most appropriate to mitigate any potential adverse impacts on the City. Additionally, staff will review development standards and best practices from other jurisdictions to determine if they would be appropriate in Downey.
Staff believes that continued approval of entitlements, building permits, or other approvals for new SPODS or the expansion of existing SPODS without further regulations or studies poses a current and immediate threat to public health, safety, and general welfare.
Further regulations are needed for the purpose of protecting neighborhoods from negative secondary effects created by the concentration or clustering of such uses. The regulations will help to avoid and reduce over-concentration of SPODS and maintain the health and safety of residents within the City’s neighborhoods.
As previously noted, per Government Code Section 65858, a municipality may adopt an interim ordinance prohibiting any uses that may be in conflict with a contemplated general plan, specific plan, or zoning proposal that the legislative body, planning commission or the planning department is considering or studying or intends to study within a reasonable time, for the immediate preservation of the general health, safety, or welfare, provided the ordinance contains a declaration of the facts constituting the urgency.
The urgency ordinance requires approval by a 4/5th vote by the City Council; upon approval, it will go into effect immediately. If adopted, the moratorium will be valid for 45 days, which can be extended through a public hearing for an additional ten months and 15 days (one year maximum). Pursuant to Government Code 65858, staff will return to the City Council within 45 days to report the progress made on implementing the new regulations. This progress report and any requested extension to the moratorium will be conducted through a duly noticed public hearing. Ultimately, any proposed change in the Municipal Code will require public hearings before the Planning Commission and the City Council.
Attachment D
MORATORIUM ON SINGLE PRICE OVERSTOCK/DISCOUNT STORES
MAY 28, 2025
PAGE 4
ENVIRONMENTAL ANALYSIS
Staff has reviewed the proposed urgency ordinance for compliance with the California Environmental Quality Act (CEQA). Upon completion of this review, it has been determined that this Ordinance is not subject to the California Environmental Quality Act pursuant to Section 15061(b)(3) of the CEQA Guidelines because it will not have a significant effect on the environment, as the Ordinance will temporarily preclude the approval, commencement, establishment, relocation, or expansion of certain land uses City-wide.
CITY COUNCIL PRIORITIES
Economic Vibrancy
Quality of Life, Safety & Infrastructure
FISCAL IMPACT
There are no fiscal impacts identified with this action.
ATT ACHMENTS
Attachment A: Urgency Ordinance 25-1528
Attachment D