Learning From Small Towns
Community Character, Vitality and Large Scale Retail

A collection of case studies provided for Homer, Alaska

Foreword Nancy Rottle

Our communities are shaped by interrelated physical, social and economic forces. In many towns across the nation citizens have actively worked to create towns where economic measures, natural beauty, and the design of the civic and retail environment are synergistic agents that coalesce to build communities of distinctive character, economic vitality and social cohesion. The dozen town case studies contained herein tell stories of citizen attempts to preserve and create “livable” communities through planning, zoning, urban design guidelines, activism and economic investment. With large retail as a potential player in the future development of Homer’s Town Square, the case studies focus on the successes and failures of
these communities in integrating, limiting, and modifying “big box” stores.

Homer is a unique community of natural beauty and citizen passion. In visiting Homer this spring, the seventeen graduate students in our Community Design studio were struck by the potential for both positive and negative directions that large-store retail could chart for the character and economy of the town. Given the charge to research the experiences, practices and outcomes of other communities across the nation, the students have enthusiastically mined other towns for lessons and strategies that are applicable to Homer. The process by which the case studies were selected included getting to know Homer and then sifting through the literature and personal experiences to find towns with similar characteristics. Several towns that have included large-store retail as an integral part of their development were considered, but were not included because they are located near rapidly growing population centers. Others were selected because they help to provide a broad range of lessons. The researchers reviewed articles, books, and websites and spoke with as many residents and planners as
possible, in order to tease out the stories and various perspectives of these relevant places.

We are grateful to the Homer Chamber of Commerce, the Kachemak Bay Land Trust, and the City of Homer for involving us in the reflections, discourse and visioning for Homer’s future. It has been a tremendous learning experience for us all. We hope that this document will contribute to the community’s decision-making framework as they deliberate and “set the tiller” for their town’s future.

Introduction

This collection of case studies offers examples of the ways in which towns and cities have dealt with large retail. Our intention was to present a variety of perspectives and outcomes. Some of the towns we studied have no “big box” retail within their city limits; of those towns that do have big box stores, some have struggled with large retail and others have integrated it gracefully. Among these case studies, we have also attempted to consider a broad range of towns, with populations ranging from 1,400 to 20,000 people. Because there is “no place like Homer,” it is not possible to directly compare what may happen if large retail comes to Homer to what has happened in a parallel town. However, many of the communities surveyed do have strong similarities to Homer, including towns that:

- have economies centered around tourism, fishing, art, and local businesses,
- are located at “the end of the road,”
- have experienced significant population growth in the past few decades,
- consider their natural surroundings to be vital community assets, and
- seek economic growth that does not infringe upon “quality of life.”

The following case studies describe methods used by town planning boards, city councils, citizens’ groups, and others, which have enabled communities to address some of the complicated issues that come along with large retail entering small towns. There are examples of detailed planning codes and guidelines, as well as stories of what has happened in towns without such guidelines. There are also examples of unique approaches that towns have used in the past, and tactics that they are currently implementing, to ensure that established community goals are met, and that the future is well planned. We hope that reading these pages will foster a greater understanding of the vast number of strategies available for town planning and the implications of these strategies for large retail within communities. Download the complete summary (500K)

Table of Significant Features of Case Studies (270K)
A summary of the important aspects of each example

Case study Summaries:
Ashland, OR
Bainbridge Island, WA
Bozeman, MO
Cannon Beach, OR
Fairview Village, OR
Gig Harbor, WA
Ketchikan, AK
Nelson, BC
Port Townsend, WA
Steamboat Springs, CO
Soldotna, AK
Taos, AZ

Case Study Extended Resources Table of Contents (74K)
These documents are included within the Extended Resource provided to the Chamber of Commerce with this document. They represent a great wealth of information collected from the case study towns. Due to their breadth of detail and length, they were not included as a part of the standard document, but are available by request from the Chamber of Commerce.

Ashland, OR

Faced with the threat of big box retail entering the city, Ashland passed an ordinance that limited square footage to 45,000 square feet in 1992. This ordinance has prevented large retail from building inside Ashland. However, a number of large retail stores have opened up seven miles away in the local community of Talent.

The square footage requirements have remained an issue for the city as questions continue to arise regarding which buildings fall under the jurisdiction of the code and whether the size limit is for the building footprint or for the gross square footage. Much can be learned from Ashland’s stance on large retail over the past twelve years.

The city of Ashland has continued to maintain its local character even as questions arise about specific aspects of the square footage limit. In addition to the limits, the city has a comprehensive set of design standards promoting elements deemed important by the local residents. The result is that the city of Ashland is often highlighted as top city to visit or live. While the rest of Oregon is being heavily hit by the current recession, Ashland is remaining healthy and prosperous. The reason Ashland is a successful city is because the square footage limits and the design standards work in tandem to maintain and promote Ashland’s charm. Download complete case study (4.5MB)

Bainbridge Island, WA

Faced with increasing population growth, Washington State’s Growth Management Act in 1990 required that Bainbridge Island plan for a 28% increase in population. In order to preserve open space and the Island’s small town character, Bainbridge Island developed an ambitious goal to accommodate 50% of the City’s projected growth in Winslow, the Island’s small urban center. The Winslow Master Plan promotes intensifying commercial use and increasing density in the urban center. The plan and municipal codes also have design standards geared to enhance the walkability and connectivity of commercial districts.

Bainbridge Island limits large-store retail to three commercial zones, and limits auto-oriented development to two of three of these zones. Bainbridge Island does not have an overall cap on retail square footage, however it does have size limits in certain overlay districts and zones. Size caps in overlay districts and zones are intended to keep new development in scale with existing development.

Bainbridge Island also limits the location and size of formula take-out food restaurants on the Island. Originally, a 1989 ordinance banned all formula take-out food restaurants within the City. Today, the municipal code has been modified so that formula take-out food restaurants are permitted in only one zone and may not exceed 4000 square feet, nor occupy more than 50% of any building. Download complete case study ( 2.9MB)

Bozeman, MO

In 2002, Bozeman, Montana enacted a temporary moratorium on stores over 75,000 square feet. The moratorium allowed City officials to develop guidelines for limiting retail size. The ordinance has been permanently adopted in the Municipal Code for construction beginning March 21, 2003 or later, to limit new construction or expansions to 75,000 square feet. Buildings between 40,000 and 75,000 square feet are subject to design guidelines. Stores as large as 100,000 square feet may eventually be allowed, but they would be charged economic impact fees. Economic impact fees are used to develop the downtown core and improve low-income housing. Currently, economic impact fees are assessed through negotiation with the City Manager. Law does not enforce fees at this time (Eppel 2003). New buildings and upgrades on existing buildings require a recommendation from a Design Review Board.

The downtown retail contains smaller shops, while larger-scale development is grouped on a street outside the downtown core. The community-like feel of the downtown core has been preserved and currently, smaller businesses are thriving (Eppel 2003). Andy Eppel, City of Bozeman’s Director of Planning and Zoning, feels that Bozeman is growing at a rate that can support the large-scale retailers that are located in the city. He states that large-scale and discount retail is the next step in commerce and supporting these businesses is in line with Bozeman’s role as a commerce hub for the area.

The story of Bozeman is relevant to Homer, AK in that it is a scenic town that draws both residents and visitors for its beauty and outdoor recreation. The town maintains a ‘community feel’ by supporting many small, family-owned businesses in the downtown area. Size restrictions on large-scale retail are relatively new to Bozeman, and full economic impact reports are not yet available. However, Bozeman is further along in the process of determining what their overall goals are and how they will maintain desirable aspects of town while continuing to grow in size. They aim to preserve their tourism trade, while simultaneously diversifying their economic base through the addition of new industry (high-tech). Bozeman is larger than Homer but faces many of the same issues of a smaller town wanting to support tourism while maintaining a high quality of life for its residents. Download complete case study (135K)

Cannon Beach, OR

There are no regulations limiting the size of large retail stores in Cannon Beach, Oregon. Instead, the constrictive geographic setting of this village, small lot size, design guidelines, zoning ordinance and design-review process have limited development. It is just a ten-minute drive to shop in Seaside, the historic service center for this area, and residents will also shop further afield in Astoria and Portland. Recently the town has lost stores that serve the basic needs of local residents, a trend that concerns both Cannon Beach and the town of Homer.

Cannon Beach can inform the growth of Homer, Alaska by: 1) its strong vision statement; 2) its design guidelines and rigorous review process; 3) its loss of small stores that serve local’s basic needs; 4) its preservation of character without confinement to a particular aesthetic.

Cannon Beach may not be a useful or appropriate model for Homer in these ways: 1) smaller size of Cannon Beach and earlier development mean greater limits on growth; 2) Cannon Beach’s zoning ordinances and design guidelines may be more restrictive regarding changes to private property and aesthetic considerations than Homer’s citizens would permit; 3) tourist/small-business/retirement economy may make preservation of character more important to Cannon Beach residents, on a whole, than to Homer residents. Download complete case study (580K)

Fairview Village, OR

Fairview Village is a highly acclaimed new town center under construction by a private developer within Portland Oregon's Urban Growth Boundary. Although the city of Fairview already existed, the town center was relatively undeveloped when construction began on Fairview Village. The plan was formed according to New Urbanist principles: the return to early twentieth century small town design, a focus on a strong sense of community, and pedestrian access to shopping, jobs, schools, and civic activities. Fairview Village broke ground in March of 1997 on 90 acres of farmland in the rapidly developing suburbs of Portland. A response to the acres of twisting single-family subdivisions being developed in the area, Fairview Village utilizes a mix of housing types and pedestrian-oriented commercial development. Streets run on a north-south grid and tie into the original street orientation, while the town center is located within walking distance of the older, existing town center. Although commercial development has been slower than expected, the center of town now boasts a city hall, library branch, post office, park, elementary school, and a central core of mixed-use rowhouses inhabited by a coffee shop, travel agency, art gallery, gift shops, salon, sandwich shop, and a few small offices. Efforts at attracting "anchor stores" such as a mid-sized local grocery have been unsuccessful so far, but the developers did succeed in bringing in a 133,000 sq ft Target store to within a few blocks of the town center. Although the community has raised concerns about increased traffic, the loss of wetlands, and the incongruity of such a large auto-oriented store in a small, pedestrian-oriented town, the developers and the small businesses see the Target as an economic necessity and draw to main street rather than a threat. Download complete case study (530K)

Gig Harbor, WA

The City of Gig Harbor chose a combination of innovative strategies for planning and controlling encroaching development on their historic small town. This includes strict zoning regulation and design standards which are imposed on residential as well as commercial development.

Specifically, in 1996, after keeping Wal-Mart and Fred Meyer out of the retail core, Gig Harbor made a commitment to preserving the character of their historic waterfront community by creating strict guidelines for large retail development. Gig Harbor set aside one 500-acre parcel of land 2 miles outside of the downtown area for large retail development. This is the only area of town where large retail is allowed, albeit with detailed and incredibly specific design guidelines. All other commercial development within the city limits is capped at 35,000 square feet. Additionally, the large retailers have been required to provide mitigation and community amenities in exchange for the opportunity to come into Gig Harbor. These include building roads, traffic circles, adhering to guidelines for preservation of open space, storm water management, and the construction of nearby parks.

The benefits of this strategy come in many forms depending upon the perspective. The City of Gig Harbor has benefited by keeping residents’ shopping within the city limits. This has equated to augmentation in the tax base, which is visible in the number and magnitude of new civic projects that have been recently implemented. Additionally, since the development, called Gig Harbor North, has been carefully designed and regulated, the visual impact upon the residential and tourist centers of town has been minimal or nonexistent. With the exception of one small business, most retailers in the retail core and town center areas agreed that their businesses have not seen a significant decline in sales since Gig Harbor North was completed in 2000. The sacrifice for the town has been in designating a prime parcel of land for large retail development, but it can be argued that this strategy of “controlling the inevitable” is a successful story for the city, retailers, and property owners in the area.

Gig Harbor’s strategies for the regulation of large retail shopping within the city limits can be extrapolated to the City of Homer in several ways. Like Homer, Gig Harbor has also struggled with the proposition of large retail corporations planning to compromise the community identity of their unique village of fishermen, artists and small businesses. What has developed is a framework built on tight design guidelines and zoning regulations, combined with a 35,000 square foot cap on any development outside of the small Gig Harbor North retail core. By utilizing the lessons learned in Gig Harbor, the City of Homer will be more likely to create a vision for growth which plans for utmost control over what does and does not enter the community, while also preserving the unique character that is utterly Homer, Alaska. Download complete case study (630K)

Ketchikan, AK

Tucked against the mountains of Revillagigedo Island in the inside passage of Alaska’s southeast panhandle lies Ketchikan, Alaska’s fourth largest city. A regional hub of 14,000 people, Ketchikan enjoys spectacular scenery, mild weather, and a prime location on Alaska’s major marine highway. Each summer more than 600,000 visitors tumble off cruise ships to stroll around the downtown area or to set off on shore excursions into the surrounding hills and waterways (Ketchikan Visitors Bureau). These visitors bring with them the seasonal cycle of boom and bust, providing at once the life-blood of tourist dollars and one of the biggest challenges to urban design and planning.

One of Alaska’s oldest communities, Ketchikan has retained a large number of historic buildings in its downtown core. These buildings and the historic character of downtown has been preserved by borough planning codes and Historic Ketchikan, Inc., a non-profit organization that promotes preservation planning and heritage tourism. The dense downtown area consists of mixed use development with businesses and apartments lining the streets and sidewalks. With no setbacks or minimum lot size codes, buildings sit flush with the sidewalk and each other, forming continuous storefronts. This, along with the compact form of downtown, sidewalks with curbs, traffic lights, and crosswalks make Ketchikan pedestrian friendly.

In 2001, Wal-Mart opened a 64,000 square-foot store three miles from downtown. No special codes or design guidelines were in place at the time the store opened, and neither the city nor Ketchikan Gateway Borough had any real control over the size or form of the store. Since then, economic indicators have been mixed and parallel other small towns in which Wal-Mart has opened. Overall retail sales for 2001 were up from 2000, but sales for businesses that had been there more than a year declined. Several small businesses have closed since 2001, but ascertaining the cause of such closures, especially in an economic downturn, is difficult and often speculative. Download complete case study (314K)

Nelson, BC

Nelson, BC, Canada (150 miles N of Spokane, 400 miles E of VanCouver, BC) is a part of the tri-cities with Castelgar and Trail. They are a part of the same regional district and they are interdependent economically. Nelson has served as the base for government jobs; Trail became the hub for healthcare. Nelson is widely known as a quaint, artsy town with beautiful views. The city is nestled in a valley which provides a beautiful setting the quaint town. It was incorporated in 1897. The town developed after silver was discovered. Mining and forestry became big businesses and a number of residences and businesses were built. The town has grown slowly and has struggled with a “boom or bust” pattern. Over past century houses have updated their facades as well as their interiors.

During a “boom” phase, the Chanko Mika Mall was built in the late 1970s. In the 1980s the community rallied together to create a vision for the town and successfully restored historic charm to buildings, houses, and streetscapes in the downtown core, especially along Baker St. The City received funding from BC Heritage Trust and other government grants. Part of the agreement with these grants was to enact bylaws to protect the investment of the community. The historic design details are successfully dispersed throughout the city to make for a cohesive visual experience of the city. In 1993, Wal-Mart bought out Wilco Department Store which was one of the anchors at the Chanko Mika Mall. In response to the competition, smaller retail has experienced frequent turnover.

In 2000-2001, when Wal-Mart decided that they had outgrown their current 75,000 sq. ft. store they began looking for opportunities to build a stand-alone store. Their timing was seemingly good because just about that time the province was preparing to replat 7 acres next to the mall. This waterfront property became the center for community activism when it was discovered that the former Mayor, Greg Exner, and company were secretly discussing city infrastructure changes which would benefit Wal-Mart if they bought a 2.7 acre parcel.

It was political suicide for Exner when the grassroots group “Save our Waterfront” formed and educated local Nelsonites about the closed-door negotiations. 4000 local and regional supporters, signed a petition to inform the municipal and provincial government that they were against this development on their waterfront. People joined on for many reasons but they all believed that the waterfront property was too valuable to develop as big-box retail and parking.
Further, the vocal community found supporters amongst a group of local investors who were lead by a successful businessman and community leader Dave Elliot.

Elliot helped organize a group called The Central Waterfront Group and was able to raise about $1million to bid on the property. The provincial organization BCBC considered both bids and decided in favor of the community group. The group then began the process of shaping a community vision for the property and the Vision Planning Document for the West and Central Waterfront; a 77 page planning document that outlines community preferences and suggests some more descriptive design guidelines (see Appendix B) was produced. The document was accepted by the Nelson City Council on October 21st, 2002 with the new Mayor Dave Elliot. (He sold his shares in the waterfront development before he ran for Mayor.) They are hoping an appropriate design and development scheme will emerge soon from developers who are in-line with the Vision Planning Document.

The Vision Planning document (Appendix B) is a solid planning document which has taken a valuable piece of property and programmed it for long-term economic health. It should be read carefully as it has significant design guidelines and creative suggestions which will continue to enhance the city’s character while allowing it to grow viably.
About the same time The Real Canadian Wholesale Club constructed a big-box structure to house their grocery store. There was not a significant reaction to the store’s construction or placement as it was not on valued property. Download complete case study (265K)

Port Townswend, WA

Port Townsend currently has two large stores within city limits, a Safeway and a QFC. Both stores are located outside of downtown. A variety of factors have contributed to the lack of further large-store retail in Port Townsend. The Port Townsend Department of Planning generated plans, codes and design guidelines that shaped town planning and retail development. Active community groups organized to oppose big box retail. Platting layout from the 1850’s ensured that most parcels were too small for large retail development. Lastly, the remaining available area for large retail is unattractive due to the plume from the town’s paper mill. The economic base does not seem strong enough in Port Townsend to make it worthwhile for a developer to negotiate these obstacles.

Port Townsend has a stable economy due to its thriving small business community, successful tourist and marine trades, and the above mentioned paper mill. Smart strategies outlined in the economic development element in the 1996 Comprehensive Plan include strengthening small businesses through technical support and good loan programs. This helped to create the current economic state. Contributing to the success of small retail is a well-planned effort to develop an attractive downtown. With the historical designation of downtown and the main street effort that resulted in the 2000 Main Street award Port Townsend is known to be a desirable place to live and visit.

What might this suggest for Homer? An active community and good holistic planning that includes the whole range from economic to aesthetic issues helped shape and preserve Port Townsend’s small-town atmosphere. Jeff Randall, the director of the Building and Community Development summed it up well. “Find what is unique and successful about Homer and build on it. What features encourage people to gather together and enjoy public spaces. What things get them out of their cars and talking to each other, shopping, going to restaurants, festivals, etc. What architecture typifies what people think of when they think of Homer. What construction materials, what building scale. How about street widths, types of street trees, street lights, what is the character of these things that are unique to Homer or were features of the town when people felt the town felt good. Port Townsend has thought about all these things” (Randall 2003). Download complete case study (183K)

Soldotna, AK

In 1994 Soldotna faced a decline in population and a faltering economy. Their economy relied on the price of oil and the fish harvest both of which had proven to be unreliable. When Fred Meyer approached Soldotna they welcomed the company. When the City approached the corporation, Fred Meyer was unwilling to compromise on the design for the new store. Without any codes in place, the City had no recourse other than to accept the vision of the company or see Fred Meyer go down the road to Kenai.

As a result, Soldotna has grown enjoying a population rebound, a strong tax base, and a constant flow of consumers from the surrounding areas to bolster their economy. Forty-eight percent of the 2000 city budget stemmed from Fred Meyer sales tax revenues. These revenues provide for services and limit the tax burden on residents.

The negatives of growth are also apparent. Some people feel Soldotna is now dependant on Fred Meyer for jobs and revenues. Others feel Soldotna looks like “Anywhere, USA.” Traffic is increasingly congested, especially with the increasing popularity of camping in the Fred Meyer parking lot.
Overall, though, residents approve of Fred Meyer. The convenience, low prices, jobs, and tax revenue are worth the tradeoffs. They are still proud of the scenic beauty surrounding their town and accept the changes that come with growth. Download complete case study (240K)

Steamboat Springs, CO

Large box-store retail came to Steamboat springs more than 10 years ago. At that time the city did not have codes restricting the size of such retail stores but they did incorporate minimal design standards. Today, the Wal-Mart store blends in with the surrounding shopping center with a unified design, landscaping, and signage. According to a recent interview with a city planner (Leeson 2003) there is no empirical evidence of existing local businesses losing or going out of business because of Wal-Mart. Steamboat Springs is similar to Homer in many respects, but is ultimately helpful as a case study because the town is currently in the process of developing guidelines and standards that will address future large retail. Download complete case study (211K)

Taos, AZ

This study provides a unique look at the long-term impacts of a large retail store on a small community with a tourist-based economy. In the 1980’s Taos, New Mexico was an economically depressed community with no size restrictions in place for large retail structures. Though some community groups dissented, a 75,000 square foot Wal-Mart was built on the outskirts of town in 1985. Over 18 years later, the outcome of this development has created negative economic impacts for small businesses, more careful zoning and land use codes, and community and political battles over future “big box” development. Evidence also suggests that the 1985 Wal-Mart development opened the door to future large retail development by rallying community and town support through jobs and tax dollars. Despite the recent changes in code, the sprawl of large retail development and the ensuing community battles seem inevitable in the town of Taos. Download complete case study (660K)