Public weighs in on formula food

A boisterous crowd filled the conference room at the Sisters Fire Hall, Thursday, May 12, to hear Senior Planning Director Bill Adams bring the formula food ordinance draft before the planning commission.

The draft that Adams presented was the third version. He outlined several minor word changes between the second draft and the third. Then Adams presented the findings of the city’s legal counsel concerning litigation issues and the impacts of the ordinance on existing formula food restaurants.

The existing formula food restaurants are Figaro’s Pizza, Subway, Bad Ass Coffee Company and McDonald’s.

The ordinance stipulates that no formula restaurant be located within a 1,000-foot radius, as measured from the building housing such an establishment. The ordinance makes the distinction that this applies only to new formula restaurants. It applies to existing, formula food restaurants if they decide to change location.

Under the ordinance, property owners of facilities housing existing formula food restaurants would not be able to replace one formula food tenant with another, if the previous formula food tenant moved to another location in town. Only the four existing formula food restaurants will be allowed.

Franchise owners expressed concern that the ordinance would bind them to unreasonable rental circumstances in which the landlord could increase rent costs due to a limited range of alternative locations for formula food within the city.

Brad Smith, owner of Paulina Springs Books, commended the planning commision for taking action on formula foods. Another speaker praised the comissioners, but noted that he was concerned about the impact on existing franchise businesses.

Frank Halvorsen, owner of Bad Ass Coffee Company in Sisters said, “There are a lot of coffee shops in this town and I think that you are singling me out as an individual for belonging to a franchise.”

After the meeting, Richard Carpenter, owner of the building that houses Subway, told The Nugget that he felt the ordinance was unfair, in particular to Subway, which has been an organization that has given back to the community. He said that the building was built especially for Sisters and that it made the most sense for him to bring in Subway. Because it is a formula food it generates the best rent.

“It’s just un-American,” said Carpenter.

Also outside of the meeting, developer Steve McGhehey, who also opposes formula food restrictions, said that if the city puts the ordinance in place, they could expect legal action from someone, somewhere down the line.

Legal advisor Pamela J. Beery echoed that concern in part in a legal memorandum addressed to Bill Adams, dated May 11, 2005. Beery cited a case called Coast Range Conifers LLC vs. State of Oregon and said it “arguably presents the possibility of a trend favoring property owners where regulations limit their use of their property in a way that costs them money.”

Concerns about Measure 37 claims were also addressed in the attorney’s memo, but were cited as “manageable risks.”

The commission voted to approve the draft and recommend it to the city council. Commissioners indicated that if problems arise, the ordinance could be amended or rewritten.

Adams told The Nugget on Friday, May 13, the ordinance could appear both as an amendment to the new Comprehensive Plan and an ordinance in the Development Code. He also said that there is some flexibility in the event of claims or appeals made by the public.

City Manager Eileen Stein said, however, there would be little if any flexibility lent to an ordinance in the Comprehensive Plan or the code.