Cities typically celebrate the influx of new businesses, but Placerville officials fear that too many thrift stores could do more to hinder than stimulate economic growth.
The City Council has declared a 45-day moratorium on the establishment, expansion or relocation of such operations and other businesses that sell donated household items.
There are four used-goods shops on Placerville Drive, compared to a year ago. Another is scheduled to open on Main Street, and another is proposed for Broadway.
The increase reflects a decline in the economy, city officials said. Shoppers are looking to save money, and landlords are scrambling to fill vacant commercial space.
Council members said they are not opposed to thrift stores, several of which are operated by nonprofit organizations and raise money for worthy causes. But the businesses don't generate the sales tax dollars needed to support city services, and some are occupying sites that could attract higher revenue producers.
"This city does live and die with sales tax," said Councilman Dave Machado.
Ravel Buckley, retail operations manager for Snowline Hospice thrift stores, said it was Snowline's plans to move its Placerville store into the former Placerville Ford dealership that led to the moratorium.
The store occupies an 8,000-square-foot building in a hollow off Placerville Drive. The former dealership on Forni Road offers a 25,000-square-foot building on 5 acres.
Several shoppers at the Snowline store last week said they would welcome a larger store with room for more merchandise.
"The bigger the store, the better," said Placerville resident Michelle Power.
Mary Alvarado of Placerville said she shops at a couple of the thrift stores in town, primarily because she supports the causes they fund. She favors those with a large selection of furniture.
Joseph Harrell owns the Placerville Ford property and operated the dealership for 30 years before selling the business. The new owner couldn't make a go of it, and the building has been vacant for about two years, Harrell said.
"Ford has declined it and so has Chrysler," he said. "There's no possibility of an automobile dealer."
Few other businesses would be likely to generate the rent or the sales tax revenue that an auto dealership does. Aside from Snowline Hospice, Harrell said, most inquiries about the property were from churches, which produce no sales tax.
Still, city officials say it is important to consider whether prime commercial property is the best place for thrift shops. Community Development Director Steve Calfee said the moratorium approved last week will allow staff members time to review the zoning code and measures needed to handle issues such as outdoor storage and illegal dumping often associated with stores that accept donated merchandise.
The council directed the planning staff to work with representatives of the affected businesses and the city's three major business districts.
Call The Bee's Cathy Locke, (916) 773-6866.
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