02. Consider Adopting Uncodified Urg Ord No. 26-1541, Extending Moratorium on SPOD Stores for Additional One Yr

Item No. 2.

TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:OFFICE OF THE CITY MANAGER
BY:IRMA HUITRON, DIRECTOR OF COMMUNITY DEVELOPMENT
DATE:MAY 12, 2026
SUBJECT:

PUBLIC HEARING TO CONSIDER ADOPTION OF AN UNCODIFIED URGENCY ORDINANCE NO. 26-1541, EXTENDING A MORATORIUM ON SINGLE PRICE OVERSTOCK/DISCOUNT STORES FOR AN ADDITIONAL ONE (1) YEAR

EXECUTIVE SUMMARY

The City Council will consider extending an existing moratorium on single-price overstock/ discount stores within the City limits. If adopted, the uncodified Urgency Ordinance (Attachment A) will take effect immediately and remain in effect for 1 year, ending on May 7, 2027. 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 Uncodified Urgency Ordinance No. 26-1541, extending a Moratorium on the approval, commencement, establishment, relocation, or expansion of Single Price Overstock/Discount Stores within City limits for an additional one (1) year.

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. On May 28, 2025, pursuant to Government Section 65858, in an effort to protect the public health, safety, and welfare, the City Council adopted an Interim 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 (Attachment B). On June 24, 2025, the City Council issued and filed the requisite report to extend the moratorium.

On July 8, 2025, the City Council adopted Ordinance No. 2025-1529, extending the moratorium which is set to expire on May 27, 2026, unless extended by the City Council (Attachment C).

In accordance with Government Code Section 65858(d), after the initial extension of the ten (10) months and fifteen (15) days, the City Council may adopt a subsequent extension of up to one year following public notice and public hearing. Not more than two extensions may be adopted. 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 April 28, 2026, the City Council issued and filed the requisite report (Attachment D).

ANALYSIS
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 may have adverse impacts on the City.

Staff continues to study the issues associated with SPODS to identify recommendations for how they should be defined, permitted, as well as analysis of appropriate locations and zoning to mitigate any potential adverse impacts on the City. Additionally, staff is continuing to research 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, summarize recommendations, and to draft a proposed text amendment to the Zoning Code to adequately address the issues related to SPODS. Upon extension, the moratorium shall expire on May 27, 2027.

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.

Attachments
Attachment A: Ordinance No. 26-1541
Attachment B: Ordinance No. 25-1528
Attachment C: Ordinance No. 25-1529
Atachment D: April 28, 2026 City Council SPODS Report

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 B

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 B

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 B

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 B

ORDINANCE NO. 25-1529

AN UNCODIFIED URGENCY ORDINANCE OF THE CITY COUNCIL OF THE

CITY OF DOWNEY 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
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, on May 28, 2025, in accordance with Government Section 65858, the City Council adopted Interim 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 ("Moratorium"); and WHEREAS, the Moratorium will expire on July 12, 2025 unless extended; and WHEREAS, Government Code Section 65858 authorizes the City Council, after notice pursuant to Government Code Section 65090 and a public hearing, to adopt an ordinance extending the Moratorium for 10 months and 15 days, upon approval by a fourth -fifths vote, and upon making the same findings required for the adoption of the initial 45-day Moratorium; and WHEREAS, Government Code Section 65858(d) requires the City Council, at least ten days prior to the expiration of the Moratorium or any extension thereof, to issue a written report describing the measures taken to alleviate the condition which led to the adoption of the Moratorium; and
WHEREAS, on June 24, 2025, City staff prepared, and the City Council issued and filed the requisite report describing the City's measures to alleviate conditions that led to the adoption of the Moratorium; and
WHEREAS, in unanimously adopting the Moratorium on May 28, 2025, the City Council made the following findings, all of which remain true, applicable, and necessary to support an extension of the Moratorium:

A single price overstock/discount store (or stores as appropriate) 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 Attachment C

ORDINANCE NO. 25-1529
PAGE 2
very low price ranges (e.g., $10.00 or less).

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.

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 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.

SPODS inhibit the upgrading of commercial areas in the City.

There are currently approximately 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.

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.

The approval, commencement, establishment, relocation, or expansion of additional SPODS would result in this threat to public health, safety, and welfare.

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 and 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.

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.

WHEREAS, since the adoption of the Moratorium, City staff has begun to study and research the issues associated with SPODS as described above and requires additional time to complete these efforts; and
WHEREAS, it is therefore necessary to extend the Moratorium for an additional 10 months and 15 days, as permitted by Government Code Section 65858 upon notice pursuant to Government Code Section 65090 and a public hearing, a fourth -fifths vote of the City Council, and the making of the same findings required for the adoption of the initial 45-day Moratorium; and Attachment C

ORDINANCE NO. 25-1529
PAGE 3
WHEREAS, the City Council held a noticed public hearing on July 8, 2025, at which it considered all oral and written testimony and all other evidence submitted by members of the public and City staff, and adopted this Uncodified Urgency Ordinance extending the Moratorium for an additional 10 months and 15 days, expiring May 27, 2026, in accordance with applicable law.

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. Government Code Section 65858 authorizes the City Council, after notice pursuant to Government Code Section 65090 and a public hearing, to adopt an ordinance extending the Moratorium for 10 months and 15 days, upon approval by a fourth -fifths vote, and upon making the same findings required for the adoption of the initial 45-day Moratorium.

SECTION 4. In accordance with Government Code Section 65858(d), on June 24, 2025, the City Council issued a written report describing the measures being taken to alleviate the conditions that led to the adoption of the Moratorium and this extension thereof, attached hereto as Exhibit A and incorporated herein by reference.

SECTION 5. The City Council, based on the above findings and in accordance with Government Code Section 65858, hereby adopts this Uncodified Urgency Ordinance Extending the Moratorium on the approval, commencement, establishment, relocation, or expansion of Single Price Overstock/Discount Stores within City Limits for an additional 10 Months and 15 Days commencing July 12, 2025.

SECTION 6. This Ordinance shall take effect immediately and have no further force and effect after a period of 10 months and 15 days commencing July 12, 2025; unless, however, after public hearing, the City Council, by four -fifths vote; extends the Moratorium for a period of one additional year as permitted by law.

SECTION 7. 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 8. 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.

Attachment C

SECTION 9. The City Clerk shall certify to the adoption of this Ordinance and cause the same to be published in the manner prescribed by law.
17 HECTOR SOSA, Mayor
MARI'A ALICIA -DUARTff,(5MC
City Clerk
2hz
JOHO. FUNK
City Attorney

STATE OF CALIFORNIA
COUNTY OF LOS ANGELES) ss:

CITY OF DOWNEY
I HEREBY CERTIFY that the foregoing Uncodified Urgency Ordinance No. 25-1529, was adopted at a Regular meeting of the City Council of the City of Downey held on the 8th day of July, 2025, and by the following vote, to wit:

AYES: Council Members: Frometa, Ortiz, Trujillo, Pemberton, Sosa NOES: Council Members: None.

ABSENT: Council Members: None.

ABSTAIN: Council Members: None.

I FURTHER CERTIFY that a summary of the foregoing Ordinance No. 25-1529, was published in the Downey Patriot, a newspaper of general circulation in the City of Downey, on July 10, 2025 (after adoption, including the vote thereon). It was also posted in the regular posting places in the City of Downey on the same date
IA ALICIA DljARTE, CIVIC
City Clerk
Attachment C

EXHIBIT A
Attachment C

APPROVED BY

CITY MANAGER
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: OFFICE OF THE CITY MANAGER
BY: IRMA HUITRON, DIRECTOR OF COMMUNITY DEVELOPMENT
DATE: JUNE 24, 2025
SUBJECT: TEN-DAY REPORT ON INTERIM URGENCY ORDINANCE NO. 25-1528 WHICH ESTABLISHED A 45-DAY MORATORIUM ON SINGLE PRICE
OVERSTOCK/DISCOUNT STORES ("SPODS") WITHIN CITY LIMITS

EXECUTIVE SUMMARY
The City Council will receive and file this 10-day report on Interim Urgency Ordinance No. 25-1528, adopted on May 28, 2025, which established a 45-day moratorium on the approval, commencement, establishment, relocation, or expansion of Single Price Overstock/Discount Stores (SPODS) within City limits. Pursuant to Government Code Section 65858(d), at least 10 days prior to the expiration of the 45-day moratorium, the City is to issue a written report describing the measures taken to alleviate the conditions which led to the adoption of the moratorium.

RECOMMENDATION
That the City Council:

Receive and file the informational 10-day report required under Government Code Section 65858(d), describing the measures taken to alleviate the conditions which led to the adoption of the moratorium.

BACKGROUND
On May 28, 2025, pursuant to Government Section 65858, in an effort to protect the public health, safety, and welfare, the City Council adopted Interim 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 the City limits.

In the adopted moratorium, a "single price overstock/discount store" (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). 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, Attachment C

10-DAY REPORT ON INTERIM URGENCY ORDINANCE NO.25-1528
JUNE 24, 2025
PAGE 2
including food or beverage for off -premises consumption, personal grooming and health products, household goods, and other consumer products.

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.

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.

There is concern that the proliferation of SPODS without further regulation could have adverse impacts on the City and 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.

The interim moratorium will expire on July 12, 2025, unless extended by the City Council.

In accordance with Government Code Section 65858(d), at least 10 days prior to the expiration of the 45-day moratorium, the City is to issue a written report describing the measures taken to alleviate the conditions which led to the adoption of the moratorium.

ANALYSIS
Staff is continuing 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 has taken the following measures to alleviate the conditions that led to the adoption of the Interim Urgency Ordinance.

1. Staff has assembled a team with land use and zoning expertise to analyze existing conditions and develop appropriate regulations for the potential regulation of SPODS in various zoning districts throughout the City.

Attachment C

10-DAY REPORT ON INTERIM URGENCY ORDINANCE NO. 25-1528
JUNE 24, 2025
PAGE 3

2. The topics that will be studied by the City team are being identified and include, but are not limited to, zoning code amendments that will define SPODS as a sub - retail land use category, land use definitions, development, and operational standards.

3. The team has commenced the process of reviewing Title 9 (Land Use) of the Downey Municipal Code to identify sections that will need to be amended to address concerns from Ordinance No. 25-1528.

4. The team has also begun reviewing other City plans or documents that may need to be amended or referenced to implement the contemplated zoning code amendments.

5. This team will produce a report to the Planning Commission summarizing the results of their evaluation and presenting recommendations for the Commission's consideration.

Staff recommends that the City Council receive and file this 10-day report. This staff report shall constitute the City Council's 10-day report as required under Government Code Section 65858(d), describing the measures taken to alleviate the conditions which led to the adoption of the moratorium. At the July 8, 2025 City Council meeting, a public hearing be held to consider an extension of Urgency Ordinance No. 25-1528 for an additional 10- months and 15 days, commencing July 12, 2025, to allow staff to further study the issues in accordance with Government Code Section 65858.

CITY COUNCIL PRIORITIES
Economic Vibrancy
Quality of Life, Safety, & Infrastructure

FISCAL IMPACT
There are no fiscal impacts identified with this action.

ATTACHMENTS
Attachment A: Interim Urgency Ordinance No. 25-1528
Attachment C

ORDINANCE NO. 26-1528

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 OVERSTOCKIDISCOUNT 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 AAttachment C

ORDINANCE NO.25-1628
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.

Attachment A
Attachment C

SECTIONS. 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 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 28th day of May, 2025.

ATTEST:

A - I A
l LL = -
HECTOR SOSA, Mayor
Attachment A
Attachment C

ORDINANCE NO. 25-1528
PAGE 4
APPROVED AS TO FORM:

J N M. FUNK
City Attorney

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES) ss:

CITY OF DOWNEY }
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 28tn day of May, 2025, and by the following vote, to wit:

AYES: Council Members: Frometa, Ortiz, Pemberton, Sosa
NOES: Council Members: None.

ABSENT: Council Members: Trujillo
ABSTAIN: Council Members: None.

MANIAALICIA DUAR , MC
City Clerk
Attachment A
Attachment C

Item No. 12.

TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:OFFICE OF THE CITY MANAGER
BY:IRMA HUITRON, DIRECTOR OF COMMUNITY DEVELOPMENT
DATE:APRIL 28, 2026
SUBJECT:
10-DAY REPORT ON INTERIM URGENCY ORDINANCE NO. 25-1529 EXTENDING A MORATORIUM ON SINGLE PRICE OVERSTOCK/DISCOUNT STORES (“SPODS”)

WITHIN CITY LIMITS

EXECUTIVE SUMMARY

The City Council will receive and file this 10-day report on Interim Urgency Ordinance No. 25-1529, adopted on July 8, 2025, which extended a moratorium on the approval, commencement, establishment, relocation, or expansion of Single Price Overstock/Discount Stores within City limits. The interim moratorium will expire on May 27, 2026, unless extended by the City Council. This report is required by State law within 10 days of the extension of an interim urgency ordinance and provides an update on the actions staff has taken to address the conditions that led to the moratorium.

RECOMMENDATION
That the City Council:

BACKGROUND
On May 28, 2025, pursuant to Government Section 65858, in an effort to protect the public health, safety, and welfare, the City Council adopted an Interim 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 (Attachment A). On June 24, 2025, the City Council issued and filed the requisite report to extend the moratorium (Attachment B). On July 8, 2025, the City Council adopted Ordinance No. 2025- 1529, extending the moratorium which is set to expire on May 27, 2026, unless extended by the City Council (Attachment C).

In the adopted moratorium, a “single price overstock/discount sore” (SPODS) is generally defined as a retail store that sells individual items generally obtained through outlet, closeout, 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.

Attachment D

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 permit, so there are currently no specific regulations to curb threats to the public health, safety, or welfare posed by SPODS.

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 use and discourage higher quality retail and commercial uses from locating nearby.

There is concern that the proliferation of SPODS without further regulation could have an adverse impact on the City and 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 development and aesthetic value of commercial areas and thus impair the economic development and other goals of the City. At the time of the moratorium adoption there were approximately 26 discount type retail stores in the City, and approximately eight (8) of those locations’ operations appeared to align with the definition of SPODS. This condition has remained largely unchanged due to the moratorium currently in place.

There is concern that the proliferation of SPODS without further regulation could have adverse impacts on the City.

ANALYSIS
Staff is continuing to evaluate the issues associated with SPODS to determine how they should be defined, how they should be permitted, and where they would be most appropriately located to minimize potential adverse impacts on the City. In parallel, Code Enforcement Division staff has identified the following operational areas that will be addressed through a future amendment of the City’s Municipal Code:

1. Site cleanliness and litter control

2. Loitering and on-site conduct

3. Security measures

4. Store operations and management accountability

5. Delivery and loading practices

6. Parking lot and exterior maintenance

7. Signage and storefront standards

8. Hours of operation

9. Prohibited outdoor activities

10. Compliance monitoring and strict accountability measures These performance standards are intended to establish clear operational expectations and ensure accountability in order to prevent conditions that may negatively affect surrounding properties and the public realm.

It is anticipated that City staff will prepare a report to the Planning Commission summarizing the results of their evaluation and presenting recommendations for the Commission’s consideration.

Staff recommends that the City Council receive and file this 10-day report. This staff report shall constitute the City Council’s 10-day report as required under Government Code Section 65858(d), describing the measures taken to alleviate the conditions which led to the adoption of the moratorium. At the May 12, 2026 City Council meeting, a public hearing will be held to consider an extension of Urgency Ordinance No. 25-1528 for an additional one year, commencing May 26, 2026, to allow staff to further study the issues in accordance with Government Code Section 65858.

Attachment D

CITY COUNCIL PRIORITIES
Economic Vibrancy
Quality of Life, Safety & Infrastructure

FISCAL IMPACT
There are no fiscal impacts identified with this action.

Attachments
Attachment A: Interim Urgency Ordinance No. 25.1528 May 28, 2025.pdf Attachment B June 24, 2025 10Day Report.pdf
Attachment C: Interim Urgency Ordinance No. 2025.1529 July 8, 2025.pdf Attachment D

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

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.

Attachment D

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 D

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:

AYES: Council Members:

NOES: Council Members:

ABSENT: Council Members:

ABSTAIN: Council Members:

Frometa, Ortiz, Pemberton, Sosa
None.

Trujillo
None.

A. 4ALaALICIA DUAR ,M
City Clerk
Attachment D

Attachment D

ORDINANCE NO. 25-1529

AN UNCODIFIED URGENCY ORDINANCE OF THE CITY COUNCIL OF THE

CITY OF DOWNEY EXTENDING A MORATORIUM ON THE APPROVAL,

COMMENCEMENT, ESTABLISHMENT, RELOCATION, OR EXPANSION OF

ORDINANCE NO. 25-1529
PAGE 2
very low price ranges (e.g., $10.00 or less).

SPODS inhibit the upgrading of commercial areas in the City.

There are currently approximately 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.

The approval, commencement, establishment, relocation, or expansion of additional SPODS would result in this threat to public health, safety, and welfare.

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.

Attachment D

STATE OF CALIFORNIA
COUNTY OF LOS ANGELES) ss:

AYES: Council Members: Frometa, Ortiz, Trujillo, Pemberton, Sosa NOES: Council Members: None.

ABSENT: Council Members: None.

ABSTAIN: Council Members: None.

EXHIBIT A
Attachment D

APPROVED BY

RECOMMENDATION
That the City Council:

The interim moratorium will expire on July 12, 2025, unless extended by the City Council.

Staff has taken the following measures to alleviate the conditions that led to the adoption of the Interim Urgency Ordinance.

Attachment D

10-DAY REPORT ON INTERIM URGENCY ORDINANCE NO. 25-1528
JUNE 24, 2025
PAGE 3

3. The team has commenced the process of reviewing Title 9 (Land Use) of the Downey Municipal Code to identify sections that will need to be amended to address concerns from Ordinance No. 25-1528.

4. The team has also begun reviewing other City plans or documents that may need to be amended or referenced to implement the contemplated zoning code amendments.

5. This team will produce a report to the Planning Commission summarizing the results of their evaluation and presenting recommendations for the Commission's consideration.

CITY COUNCIL PRIORITIES
Economic Vibrancy
Quality of Life, Safety, & Infrastructure

FISCAL IMPACT
There are no fiscal impacts identified with this action.

ATTACHMENTS
Attachment A: Interim Urgency Ordinance No. 25-1528
Attachment D

ORDINANCE NO. 26-1528

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

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.

Attachment A
Attachment D

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 28th day of May, 2025.

ATTEST:

A - I A
l LL = -
HECTOR SOSA, Mayor
Attachment A
Attachment D

ORDINANCE NO. 25-1528
PAGE 4
APPROVED AS TO FORM:

J N M. FUNK
City Attorney

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES) ss:

AYES: Council Members: Frometa, Ortiz, Pemberton, Sosa
NOES: Council Members: None.

ABSENT: Council Members: Trujillo
ABSTAIN: Council Members: None.

MANIAALICIA DUAR , MC
City Clerk
Attachment A
Attachment D

Downey City CouncilMay 12, 2026

Downey City Council
May 12, 2026