CITY PANEL URGES L.A. TO BLOCK SUPERSTORES.

Byline: Rick Orlov Staff Writer

A Los Angeles city panel on Wednesday recommended the city move to block the construction of so-called superstores within any of the 39 economic impact zones.

These are areas, such as within the Sylmar and North Hollywood areas, that are under redevelopment or in empowerment zones where tax credits are made available to businesses.

``This is about preserving the middle class and middle class jobs,'' said Councilman Eric Garcetti, chairman of the Housing and Economic Development Committee that made the recommendation to the full City Council.

Garcetti said the panel is concerned with stores such as those operated by Wal-Mart that compete with groceries and other stores while paying below union wages.

``We see other stores, such as Costco, are able to sell items at low prices and also pay a good salary, with health benefits. If a private company refuses to provide health coverage, those costs are passed on to taxpayers.''

But Peter Kanelos of Wal-Mart said the measure was designed solely to prevent his company from opening a supercenter in Los Angeles. The company has announced plans to open 40 supercenters over the next five years in California.

``We think decisions such as this deprive consumers of a choice,'' Kanelos said. ``We do offer lower prices and force our competitors to reduce their prices as well, which serves consumers.''