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Commission grants Daiso conditional use at Japan Center amid small‑business concerns
Summary
The Planning Commission approved a conditional‑use authorization for Daiso to legalize an expanded 8,381‑sq‑ft footprint in Japan Center. Supporters described the store as an anchor that draws visitors; some merchants and commissioners raised concerns about larger retailers displacing small, Japanese‑owned businesses and whether approvals should run with the land.
The Planning Commission on July 26 approved a conditional‑use authorization allowing Daiso USA to legalize and occupy a merged retail space totaling about 8,381 square feet within Japan Center.
Planning staff recommended approval with conditions after community outreach and two documented community meetings. Daiso senior vice president Yoshi Hide Murata and counsel addressed prior product‑safety violations the company experienced before 2010 and said Daiso has since worked with the U.S. Consumer Product Safety Commission and adopted new product‑safety practices.
Supporters included the Japantown Task Force, the Japantown Merchants Association and other community groups that told commissioners a large Japanese retailer provides steady visitor traffic and serves as an anchor tenant that benefits smaller businesses in the mall by increasing foot traffic. The Japantown Task Force’s executive director, Bob Hamaguchi, provided a letter of support and said the store fills a vacancy left by a longtime local merchant and is among the mall’s top revenue producers.
Opponents and several commissioners noted concerns that a large national retailer could out‑compete smaller, locally owned businesses in the Japantown Mall. One written memo recommended limiting any approval so that it applied only to the current tenant rather than “running with the land,” a point commissioners said could be considered as part of neighborhood planning but is a broader citywide policy issue.
Commissioners balanced those concerns against the need to fill long‑vacant space and the benefits of an anchor tenant. The motion to approve the conditional use carried unanimously. Commissioners requested the sponsor continue community engagement and noted that any future change of ownership or new formula‑retail tenant would be subject to applicable planning review.
