Officials propose new tactics in restrictions on superstores.

Two L.A. city councilmembers are softening their position on a proposed ordinance that would place severe restrictions on Wal-Mart Stores Inc. and other big box grocery retailers in developing so-called supercenters within the city of Los Angeles.

The amended proposal, introduced by City Councilmen Eric Garcetti and Ed Reyes, would allow the stores in Los Angeles if they receive a conditional use permit from the city's planning division--and, in some cases, from the Community Redevelopment Agency. Decisions could be appealed before the City Council.

Under the new provisions, Wal-Mart and other big box retailers would have to demonstrate the economic benefits of opening in various neighborhoods.

The move allows for more local control from communities targeted for a store--a strategy anti-Wal-Mart activists believe would make it harder for the retailer to overturn through lawsuits or voter referendums.

The tactical shift comes a month after Inglewood residents soundly rejected an initiative that would have allowed Wal-Mart to bypass the entire permitting process.

"Essentially we're seeking to give communities a voice over developments that happen in their neighborhoods," said Garcetti. "The Inglewood case showed loud and clear the perils of ignoring a collaborative approach."

Both the old and new proposals target retail stores of at least 100,000 square feet with more than 10 percent of their floor space dedicated to groceries. Wal-Mart is of particular concern to some politicians, business leaders find living wage advocates because of the company's business practices and its plans to open 40 supercenters across the state within four years. Each one will total 200,000 to 220,000 square feet, with a third of the space dedicated to groceries.

The original proposal would have prohibited big box grocery operations from opening within a mile radius of areas that have received Economic Assistance Zone money from the city. The measure essentially would have banned the large grocery stores from most of L.A.

Wal-Mart officials, who said they have not seen the new proposal, vowed to use all legal means, including a referendum or legal challenge, to fight any restrictions the city attempts to impose.

"We've said all along this is an attempt to limit competition and protect the market share of the multi-billion-dollar grocery chains by those with a very narrow political agenda," said Wal-Mart spokesman Peter Kanelos, referring to city officials and union activists.

Wal-Mart currently has a lawsuit pending against the city of Turlock, which passed a restrictive ordinance against supercenters.

The Los Angeles Planning Commission is expected to review the new language and make its recommendation next month to the City Council, which will likely vote on the measure in July.

Part of the effect of loosening the proposed restrictions will be to create more unity within the council. Councilman Bernard Parks, who led the opposition against the first proposal, said the new one is more to his liking.

He maintains that Wal-Mart goes into lower-income communities that have difficulty attracting other large retailers--citing the retailer's move into a Baldwin Hills Shopping Center in early 2003 that took over space vacant since Macy's made its exodus five years earlier.

"The entire shopping center has been revitalized because that anchor store came in," said Parks. "The high-end retailers and the newer retailers normally don't go into the poorer communities."

Nevertheless, Wal-Mart would face challenges garnering community support for any conditional use permit. The store's low wages, which make it hard for many employees to pay for health benefits, have become a lightning rod.

"Overall, the Wal-Mart superstores can have a really negative impact on a community," said Roxana Tynan, director of accountable development for the Los Angeles Alliance for a New Economy. "They can economically displace local businesses."

In a May 5 letter City Attorney Rocky Delgadillo, Garcetti and Reyes cited a Community Development Department-commissioned report that concluded 1 1/2 to two jobs are lost for every job Wal-Mart creates. The letter also referenced an Orange County Business Council study that estimates supercenters would create more than a $2 billion loss to the regional economy.

Garcetti says he would welcome Wal-Mart if the company would pay better wages and help reduce economic blight.

"If they are confident that with the low wages they pay that there's going to be no negative economic impact, they should sail through the process," said Garcetti. "But it's our strong suspicion that what works in rural Arkansas probably has to change in Los Angeles."