Agenda Item 9
November 1,2011
Public Hearing
MEMORANDUM
TO:
FROM:
County Council
t~
Michael Faden, Senior Legislative Attorney
Public Hearing:
Bill 33-11, Urban Renewal and Community Development­
Community Benefits Agreements Large Retail Stores
SUBJECT:
Bill 33-11, Urban Renewal and Community Development - Community Benefits
Agreements Large Retail Stores, sponsored by Council President Ervin and Councilmembers
Navarro, Rice, and Riemer, was introduced on October 11, 2011. A Planning, Housing and
Economic Development Committee worksession is tentatively scheduled for November 7 at 9:30
a.m.
Bill 33-11 would require each large retail store located in the County to enter into a
community benefits agreement with 3 or more recognized civic organizations or demonstrate to
the County Executive or the Executive's designee that it has made a good faith effort to negotiate
such an agreement.
This packet contains:
Bill 33-11
Legislative Request Report
Memo from Council President Ervin
Circle
#
1
5
6
F:\LAW'\BlLLS\1133 Community Benefits Agreements\Public Hearing Memo.Doc
 PDF to HTML - Convert PDF files to HTML files
Bill No.
33-11
Concerning: Urban
Renewal
and
Community
Development
Community Benefits Agreements ­
Large Retail Stores
Revised:
-"-'~-!-!..
_ _ _
Draft No.
Introduced:
October 11, 2011
Expires:
April 11, 2013
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: -=-..:.No=n.:.::e=--_ _ _ _ __
Ch. _ _. Laws of Mont. Co. _ _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council President Ervin and Councilmembers Navarro, Rice, and Riemer
AN
ACT to:
(1)
(2)
(3)
(4)
(5)
require certain retail businesses to enter into, or negotiate in good faith with certain
organizations for, community benefits agreements;
prohibit the operators of certain retail stores from opening the stores to the public
under certain circumstances;
direct certain departments of County government to furnish assistance to certain
organizations regarding community benefits agreements;
prohibit County financial assistance to certain businesses under certain
circumstances; and
generally provide for the formation and enforcement of community benefits
agreements.
By adding
Montgomery County Code
Chapter 56. Urban Renewal and Community Development
Article VIII, Community Benefits Agreements
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
* * *
Heading or defined term.
Added to existing law by original bill.
Deletedjrom existing law by original bill.
Added by amendment.
Deletedjrom existing law or the bill by amendment.
Existing law unqffected by bill.
The County Council for Montgomery County, lvfaryland approves the following Act:
 PDF to HTML - Convert PDF files to HTML files
BILL
NO.33-11
1
2
Sec. 1.
Chapter 56 is amended by adding Article VIII, Community
Benefits Agreements:
Article VIII, Community Benefits Agreements.
56-35
Definitions.
3
4
5
6
7
As used in this Article:
Community benefits agreement
means
~
document that binds
f!
~
to take
one or more actions for the mutual benefit of the parties regarding any of the
following subjects:
8
9
10
ill
hiring practices and training programs for County residents,
including potential preferences or incentives to hire residents
within
~
certain distance of the store;
11
12
13
(1)
design, operating hours, deliveries, security, traffic mitigation,
environmental impacts, use of open spaces, noise and lighting;
and other operating effects;
14
15
16
17
ill
ill
ill
assistance to community organizations and programs;
affordable and workforce housing; and
any other issue that is relevant to the operation of
~
large retail
store or the community near that store.
18
19
Large retail store
means any single site of
~
business that:
20
21
22
23
ill
derives more than 50% of its revenue from the sale of goods
directly to the public; and
(1)
is the primary occupant of
~
building with
~
footprint of at least
75,000 square feet.
Recognized civic organization
means an organization, including an
24
25
unincorporated association, that:
26
27
ill
is composed of residents of and businesses located within
.2.
miles
of
~
large retail store, or other organizations that represent those
-W-f:\IaW\billS\1133 community benefits agreements\bill 4 10-6-11.doc
 PDF to HTML - Convert PDF files to HTML files
BILL NO.33-11
28
residents or businesses; and
29
30
31
32
33
34
35
ill
56-36
is not controlled or funded
l2L
or otherwise affiliated with, the
operator or owner of any large retail store.
Requirement.
!ill
The operator of each large retail store that is located in the County must,
before the store is open to the public, either:
ill
enter into
~
community benefits agreement with
1
or more
recognized civic organizations; or
36
37
ill
demonstrate to the County Executive, or the head of
~
County
Department designated.Qy the Executive, that it has made
~
good
faith effort to negotiate
~
38
39
community benefits agreement with at
least
1
recognized civic organizations.
(hl
40
41
42
If the Executive or the Executive's designee finds that the operator has
not made
~
good faith effort to negotiate
~
community benefits
agreement, the Executive or the Executive's designee must:
43
44
45
46
47
ill
so notify the County Council and the Directors of the
Departments of Housing and Community Affairs and Economic
Development; and
ill
order the operator of the store to delay opening the store to the
public until the operator has met either requirement of subsection
48
49
50
i&
W
The Directors of the Departments of Economic Development and
Housing and Community Affairs must provide, on request, advice or
support to any recognized civic organization that will facilitate the
negotiation and implementation of
~
community benefits agreement.
51
52
53
@
Each community benefits agreement must be treated .Qy all parties as
~
54
binding contract, for which consideration has been rendered, that is
@f:\laWlbiIlS\1133 community benefits agreementslbill4 10-6-11.doc
 PDF to HTML - Convert PDF files to HTML files
BILL
NO.33-11
55
56
57
58
59
~
enforceable in any court with jurisdiction. Each agreement is binding
on any successor in interest of any party. Each agreement is g public
document which is disclosable under the state Public Information Act.
Each community benefits agreement must have an initial term of at least
~
years, and must be renewable for an additional
~
years.
60
61
ill
Each community benefits agreement must require the operator of the
large retail store to report annually to all other parties and to the
Directors of Economic Development and Housing and Community
Affairs on the implementation of the agreement.
62
63
64
65
56-37.
Financial Assistance.
If the operator of g large retail store has not entered into g community benefits
66
67
68
agreement with
J
or more recognized civic organizations; the Department of
Economic Development and any other Department of County government must not:
{ill
offer the operator any financial assistance from the Economic
Development Fund or any other applicable program; or
69
70
71
.au
continue any financial assistance from the Fund or other program to that
operator, or any other entity involved in the operation of the store,
unless the County is contractually obligated to continue that assistance.
72
73
74
75
Section. 2.
Effective date.
This Act takes effect 91 days after it becomes law,
and applies to any large retail store, as defined in County Code Section 56-35, added
by Section 1 of this Act, which first opens to the public on or after that date.
Approved:
76
77
Valerie Ervin, President, County Council
Date
&f:\laW\billS\1133 community benefits agreements\bill4 1C-6-ii.doc
 PDF to HTML - Convert PDF files to HTML files
LEGISLATIVE REQUEST REPORT
Bill 33-11
Urban Renewal and Community Development
Community Benefits Agreements
Large Retail Stores
DESCRIPTION:
Require the operator of a large retail store to make a good faith effort
to enter into a community benefits agreement with 3 or more
recognized civic organizations.
Large stores generally have large community impacts, some of which
may be negative, on residents and businesses in the surrounding area.
To require the operators of new large retail stores to make a good
faith effort to negotiate community benefits agreements that will
lessen negative impacts, and promote positive impacts, on the
surrounding community.
Department of Economic Development, Department of Housing and
Community Affairs
To be requested.
To be requested.
To be requested.
To be researched.
Michael Faden, Senior Legislative Attorney, 240-777-7905
To be researched.
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
Not applicable.
F:\LAW\BILLS\I133 Urban Renewal And Community Devel\Legislative Request Report.Doc
 PDF to HTML - Convert PDF files to HTML files
MONTGOMERY COUNTY COUNCIL
ROCKVILLE, MARYLAND
OFFICE OF THE COUNCIL PRESIDENT
Memorandum
To:
Councilmembers
Council President Valerie Ervin
V0
September 30, 2011
Community Benefits Legislation
From:
Date:
Subject:
I am requesting your cosponsorship of the attached bill that would require
community benefits agreements for retailers locating in Montgomery County that have
indoor retail space of 75,000 square feet or larger. This bill would also codify'
community benefits coalitions, which are broad-based community groups' made up of
individuals and entities that reflect the interests of the neighboring communities where
"big box" retail stores are seeking to locate.
As you may know, a community benefits agreement is a legally binding contact
between a community benefits coalition and a developer or a specific retail store that
establishes the benefits that the community will receive from the development. Benefits
can include provisions covering living wages, local hiring and training programs,
affordable housing, environmental remediation, funds for community programs, open
space designations, operating hours, security, deliveries, traffic mitigation and other
items.
Community benefit agreements ensure that deVelopment is equitable and benefits
the community, which eventually contributes to stronger local economies, livable
neighborhoods and an increase in public participation in the planning process. Once an
agreement is reached, community benefits coalitions often agree to support a project
through public hearing attendance and testimony and releasing any administrative claims
regarding a project.
Stella Fl.
\VeiTler C(lcll1<.:ii
(HIke
Ino
www.rnontgornerycountyrnd.goy
 PDF to HTML - Convert PDF files to HTML files
Michael Siegel from Public and Environmental Finance Associates in Washington, DC
recently completed an evaluation of "big box" retailers in Montgomery and Prince
George's County. He identifies 35 "big box" retail stores currently located in the County.
Siegel details how "big box" retailers, such as Walmart, attempt to be the
preeminent retailers in specific areas, and how this impacts surrounding businesses and
communities. "While this strategy may be directed primarily at other large competitors,
any retailer in the area, large or small, offering similar goods can be forced away from
offering similar merchandise, to downsize or close, and/or shift their focus." In
discussing the impact on mid-sized and local small businesses, Siegel notes, "Such stores
have little ability to compete against far larger companies with the resources and ability
to saturate a particular market area or distribution center territory."
Community benefit agreements are not a new concept. The first community
benefits agreements were negotiated in California in the early 2000s. Successful models
have been developed in Seattle, Pittsburgh and San Francisco. Closer to home, a similar
bill to the one I am proposing is currently before the Council of the District of Columbia.
In addition, I have explored the option of including community benefit
agreements in the zoning ordinance as part of the CR Zone discussion and zoning
, ordinance rewrite. Legal staff has informed me that these types of agreements must be
done through legislation and not through the zoning ordinance.
The goal of this bill is to create a broadly inclusive and focused process that
involves key stakeholder groups, creates quality jobs and generates community benefits
in areas where "big box" retailers are looking to locate. Please note, that requiring
community benefits agreements would not prevent any company from locating in the
County but would instead ensure that such "big box" operations are compatible with the
needs of the surrounding neighborhoods.
I hope you will cosponsor this important piece of legislation. I welcome your
suggestions on the attached draft bill, which is scheduled to be introduced on October 11.
Attachments:
Draft Bill
Selected Issues Affecting the Potential Impact of "Big Box" Retail Stores on Montgomery and
Prince George's County, Maryland, Michael Siegel, Public and Environmental Finance
Associates, Washington DC.
c:
Mike Faden, Council Senior Legislative Attorney
Jeff Zyontz, Council Legislative Attorney