DOLLAR stores could soon be banned entirely from a US city under a new law.
Lawmakers are weighing whether to extend the ban to two years.
The city of Desert Hot Springs, California, temporarily banned the construction of new dollar stores in the hope that they can attract more upscale retailers to the community.
Desert Hot Springs, which sits on the outskirts of the Coachella Valley just 20 minutes away from Palm Springs, is hoping to draw more tourists to their eponymous hot springs.
“We know we have some medium-sized commercial stores that have become available, and the last thing we wanted was another dollar store to pop up right now,” said Scott Matas told the Palm Springs Desert Sun.
“There are quite a few dollar stores within our community. It meets a certain criteria, but it doesn’t meet all.”
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Matas believes that the city’s population of 32,000 is well-served by the five existing dollar stores.
He added that he and other councilmembers frequently hear complaints from residents that they have to drive to Palm Springs to shop at major retailers like Target.
“We’re really looking at trying to find the businesses that are going to allow the working class individuals that work here to be able to find what they need,” Matas said.
“A lot of it comes down to clothing and food and restaurant opportunities.”
Earlier this month, the city passed an ordinance banning the opening of new dollar stores for 45 days.
The ordinance defines dollar stores as “extremely low discount stores, which stores are corporate or independently owned, which include but are not limited to 98 cent stores, Dollar King, Dollar Tree, and the like.”
The city is considering extending the ban for two years to study the issue and come up with a plan to entice retailers.
City staff are planning to attend a retail conference in Las Vegas this month to lure in shopping brands.
“Families are looking here on a constant basis to buy homes because they’re affordable,” Matas said.
“But our biggest challenge is retail.”
