Formula retail - Davis Action Group

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For consideration this evening,
DAVIS SQUARE TODAY
 FORMULA RETAIL REGULATION
 FREE MARKET TOOLS

Keep in mind…our goals
 Educate
and Empower
 Protect and enhance the
culture and character of Davis
Sq.
 Create proactive collaboration
between residents, city and
developers
Davis Square Today
Existing Business Categories by Percent
1%
1% 2%
Education
Theater
2% 2%
2%
Vacant
Religious
20%
3%
Automotive
4%
Government/Public Facitilities
5%
Retail – Used
General Services
Grocery
6%
13%
Retail
Residential
6%
Banks/ATMs
Personal Care/Salons
6%
12%
7%
8%
Health/Medical/Fitness
Restaurants/Bars
Cafes/Takeout
Office
Davis Square Today
Economic Development

SomerVision
“Support a business-friendly environment to attract
and retain a diverse mix of businesses that can
start here, grow here and stay here.”

Existing Zoning: CBD bordered by
Residential A, B, C, and Neighborhood
Business

Somerville by Design Code
Davis Square Today - Zoning Districts
CBD Allows:

By-Right
 < 10,000 sq. ft. Health Club, movie
theater
 < 5,000 sq. ft. Office, salon, dry cleaning,
banks (no drive-through), printing/copy,
convenience store, grocery/food, hardware
store, restaurants (not fast food).

Special Permit
 5,000 – 9,999 sq. ft. = SP or SPD
 >10,000 sq. ft. = SPSR
 2-6 month process
Davis Square Today
Existing Independent Supports
DARBI
 Somerville Local First
 Small Business Loans
 Somerville4Business – Capital Fund
Programs

What is a Formula Business?

A store or other business that requires
standardized:

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services
methods of operation
décor
uniforms
architecture
other features
Essentially, a business that is virtually
identical to the same business in another
geographic location
Formula Business Regulation

A zoning ordinance or regulation that does
any one or more of the following:


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Outright Ban
Defines maximum percentage of like businesses
Defines maximum number of like businesses
Limits only formula restaurants
Limits only retail stores
Limits only banks, business services,
pharmacies
 Requires conditional use application
 Requires conditional use application above X
square footage
A Look at Formula Retail in San
Francisco, CA
“To protect San Francisco’s vibrant small
business sector and create a supportive
environment for new small business
innovations”
 An establishment that shares common
features, such as a standardized array of
merchandise, trademark, architecture, and
décor, with at least 11 other establishments
in the United States. The term “retail use”
includes both stores and restaurants.
 Does not include professional or medical
services, salons or gyms

A Look at Formula Retail in San
Francisco, CA
Application
 Planning Board Review and
Consideration:

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number of other formula businesses
other similar goods and services available
Compatibility with character
Retail vacancy rates
Services available in other areas of the city
Neighborhood Notification and Public
Input
SF Formula Retail Zones
Bristol RI - Successful
Ban of formula retail in spaces > 2,500
sf or > 65 feet of street frontage in
historic downtown center
 Smaller stores may apply for conditional
use, prove they won’t detract from
historic character and may be restricted
from using corporate logos

Newburyport - Defeated
Civic non-profit submitted 4 page
proposal to City Council for Formula
Retail Ordinance
 Multiple news articles appeared against
FRO (2007)
 No ordinance on the books today

Davis Square Today
22 Percent Formula Retail
Tedeschi Food Shops
CVS/Pharmacy
Boston Sports Club
Flatread Company /
Sacco
Bright Horizons
Subway
Wing Works
Dominos
Citizens Bank
Goodwill Store
Buffalo Exchange
Anna's Taqueria
McDonalds
Dunkin Donuts
Family Dollar
Eastern Bank
Bank of America ATM
Starbucks
Plan P Express Center
Pinkberry
Delaria Salon
Chipotle Grill
H&R Block
Rite Aid
Rockland Trust
Sovereign Bank ATM
Sovereign Bank
Rockland Trust (vacant)
Bank of America
UPS Store
Middlesex Federal ATM
Middlesex Federal
Savings
Citizens Bank
KinderCare
Au Bon Pain
Remax Heritage Green
Harvard Vanguard Entry
Harvard Vanguard Optical
Harvard Vanguard Dental
Comcast
Orange Leaf
Davis Square Today
17 Percent Formula Retail
Tedeschi Food Shops
CVS/Pharmacy
Boston Sports Club
Bright Horizons
Subway
Wing Works
Dominos
Citizens Bank
McDonalds
Dunkin Donuts
Family Dollar
Eastern Bank
Bank of America ATM
Starbucks
Au Bon Pain
Remax Heritage Green
Pinkberry
Chipotle Grill
H&R Block
Rite Aid
Rockland Trust
Sovereign Bank ATM
Sovereign Bank
Rockland Trust (vacant)
Bank of America
UPS Store
Middlesex Federal ATM
Middlesex Federal
Savings
Citizens Bank
KinderCare
Comcast
Orange Leaf
Free Market
Business Improvement District
Marketing for the entire square, supports
large and small businesses
 Revitalization and management
programs
 Maintenance and beautification
 Self-assessed, fee by benefit and/or city
run

Free Market
Require Economic Impact Review
Traffic
 Square Character
 Jobs
 City services
 Tax Revenue
 Iwerks Outcome Tracker

Free Market
Small Business Supports
Tax incentives for businesses with less
than 20 employees
 Tax credit for property owners that lease
to small business
 Mandate living wage and other worker
protections

Applications to Davis Square
Some considerations:
 Does a business district need anchor
businesses to draw traffic for smaller
independents?
 How have other communities fared
using tools like these?
 What other methods are out there?
 What best serves the needs of an
individual community?
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