Fairfax passes ‘formula retail’ moratorium

Fairfax is temporarily banning new “formula retail” stores.

By a 4-1 vote, the Town Council passed an urgency ordinance on Wednesday imposing an immediate 45-day moratorium on issuing permits for chain stores and franchises.

The action was triggered by a Planning Commission hearing on Feb. 19, when staff proposed to update the zoning to exclude large chains but allow 13 “formula” businesses in four commercial corridors. The proposal drew stiff opposition.

“No one at that hearing supported the proposal that they were looking at,” Vice Mayor Frank Egger said. “So this is in response.”

“State law allows … a town or county to adopt a moratorium ordinance if it’s in some kind of a process dealing with zoning issues and they’re not quite sure where they’re going with it,” he said.

“I don’t see a reason to panic. I don’t see a big stampede of change coming to Fairfax,” Councilmember Mike Ghiringhelli said. “I’m going to vote no.”

Jeffrey Beiswenger, the planning director, said the moratorium is needed because the town code has exploitable loopholes.

“Why are we doing this now? We are just concerned,” he said. “We’ve noticed some areas of improvement with our current formula business ordinance. And we do not want to be caught with applications while we’re working on updates.”

Town Attorney Janet Coleson said staff could return to the council in early April and seek the first of two yearlong extensions while the Planning Commission and the Town Council update the zoning code.

“What the ordinance does is it prohibits entitlements,” Beiswenger said, referring to permitted uses under the former code. “And also importantly it defines what a formula business is, because the definition that’s currently in our town code is not very clear.”

The urgency ordinance defines a formula business as “a type of retail business, also including food service, that has eight or more locations in operation located anywhere in the world.” Further, it says such businesses meet at least two common criteria from a list that includes uniform merchandise, menus, color schemes, signs, facades, trademarks and apparel.

At the Planning Commission meeting on Feb. 19, a staff presentation said the town code allows formula businesses with a handful of permits and allow drive-through restaurants.

In its place, staff proposed defining a formula business as having “six locations worldwide”; replacing conditional use permits — issued after Planning Commission review — with administrative approvals or denials; and exempting seven business types. The exemptions would be supermarkets and grocery stores; drug stores; financial services; real estate offices; movie theaters; mail and delivery services; and medical offices.

Four commercial zones, mostly downtown and along the roads leading there, would be allowed to have a total of 13 formula businesses. School Street, where a large apartment complex is planned, could have one formula business.

During the public comment period of the Town Council meeting, several people who attended the Feb. 19 Planning Commission hearing were concerned the moratorium would allow the staff proposal to move ahead.

“Nobody knows anything about this,” said Deborah London, co-owner of the Coffee Roastery. “You want to protect the town against formula business by inviting 13 formula businesses into town.”

“This is about the moratorium, OK?” said Councilmember Barbara Coler. “We’re not talking about what was discussed at the Planning Commission.”

“Thank you for bringing this up having something in place to protect the town and the businesses,” said Minna Kim, director of the Fairfax Chamber of Commerce. “There needs to be more discussion. I don’t know if there’s opportunity for a workshop. I don’t know how many days we get for this. But it’s going to change our town significantly if we can’t figure out what the parameters are.”