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Downey council extends one-year moratorium on single-price discount stores

City of Downey City Council · May 12, 2026
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Summary

The Downey City Council unanimously adopted urgency Ordinance No. 26-1541 on May 12 to extend a moratorium for one year on the approval, establishment, relocation or expansion of single-price overstock discount stores while staff studies zoning, public-safety concerns and regulatory options.

The Downey City Council voted unanimously May 12 to adopt an uncodified urgency ordinance extending for one year a moratorium on single-price overstock discount stores inside city limits.

Council opened the public hearing after Community Development contract planner Lindseay Ortega summarized prior actions: an initial 45-day moratorium in May 2025, a 10‑month‑15‑day extension, and the statutorily required report documenting steps taken. Ortega told the council staff is still researching how to define the store type, where to permit it, and which development standards other jurisdictions use.

Mayor Claudia Foretta and several council members framed the extension around neighborhood impacts. The mayor noted concerns about “trash, loitering, graffiti and theft” that residents had raised and that the council adopted the original moratorium unanimously in 2025 to protect public health and safety.

No members of the public spoke in favor of or against the ordinance during the hearing. Councilmember Sosa, referencing social media complaints from residents, said the measure is intended to “keep our shopping districts where people do want to come out and feel that they can do that.” With no public speakers present, the council closed the hearing and adopted Ordinance No. 26‑1541, which extends the existing restriction through May 27, 2027, giving staff more time to prepare zoning amendments and development standards.

Next steps: staff will continue the research and return with recommendations for how the city should define and regulate single-price overstock discount stores, and draft text amendments to the zoning code to mitigate any identified adverse impacts.