Formula Business Restrictions - Solvang, CA

One of the first communities to enact a formula business restriction, the town of Solvang prohibits formula restaurants from locating in its village center.  The ordinance notes, "The Village Area is unique… because of its small individualized shops and restaurants ... This unique character would be adversely affected by a proliferation of formula restaurants ... The development of such restaurants would conflict with the distinct atmosphere for which Solvang's Village is famous."

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ORDINANCE NO. 94-151

AN ORDINANCE OF THE COUNCIL OF THE CITY OF SOLVANG AMENDING SECTIONS 14.02.000 AND 14.04.080(c)(5) AND ADDING 8ECTION 14.07.280 OF THE SOLVANG MUNICIPAL CODE PERTAINING TO FORMULA RESTAURANTS

THE COUNCIL OF THE CITY OF SOLVANG DOES HEREBY ORDAIN AS FOLLOWS:

Section I. Findings
The Land Use Element of the City's General Plan provides that a key issue identified in the process of preparing the General Plan was to maintain the image of Solvang as a small-town village in an open space/agricultural setting. The Land Use Element provides that a primary issue affecting Solvang's development and identity is the existing Danish Northern European character of the community and its orientation to tourism. Further, it states that it is essential that future development of the City's Village Area be compatible with the area's established character. The goal of the Land Use Element is to promote the development of a well balanced and functional mix of land uses and to ensure that development in the City is consistent with the City's character and image. Further, the Land Use Plan provides that the overriding consideration in establishing the Land Use Plan was to ensure that Solvang retains the unique character of the Village Area.

The Village Area is unique not only because of its Danish architecture, but because of its small individualized shops and restaurants. Solvang's Village Area is recognized worldwide. It attracts hundreds of thousands of visitors each year, a large part of whom come to enjoy and experience the unique character of the Village. This unique character would be adversely affected by a proliferation of "formula restaurants" which are required by contractual or other arrangements to be virtually identical to restaurants in other communities as a result of standardized menus, ingredients, food preparation, decor, uniforms and the like. The development of such restaurants would conflict with the distinct atmosphere and unique character for which Solvang's Village is famous. Therefore, the City Council finds that in order to preserve the character of the Village, it is reasonable and necessary to adopt this ordinance which would preclude the development of new formula restaurants in the Village.

Section 2. Amendment
Section 14.02.000 of the Solvang Municipal Code is hereby amended to add the following definition thereto:

Section 14.02.000 Purpose.

Restaurant. Any establishment whose principal business is the sale of meals, including food and beverage, which is eaten on or off the premises.

Formula Restaurant. A restaurant devoted to the preparation and offering for sale of food and beverages to the public for consumption either on or off the premises and which is required by contractual or other arrangements to offer any of the following: standardized menus, ingredients,food preparation, decor, uniforms, or similar standardized features.

Section 3. Amendment

Section 14.04.080(C)5 of Chapter 14.04 of the Solvang Municipal Code is hereby amended to read as follows:

5. Indoor and outdoor restaurants, bars, and cocktail lounges, but not including outdoor commercial barbecues and formula restaurants.

Section 4. Amendment

Section 14.07.280 is hereby added to Chapter 14.07 of the Solvang Municipal Code to read as follows:

Section 14.07.280 Formula Restaurant.

No new or expanded formula restaurant shall be permitted in the TRC Tourist Commercial Zone of the City.

Section 5. Effective Date

This Ordinance shall be in full force and shall take effect thirty (30) days after its passage.

Section 6. Publication

The City Clerk shall cause this ordinance to be published once in the Santa Ynez Valley News within fifteen (15) days after its passage with the names of the City Council members voting for and against the same.

PASSED, APPROVED, AND ADOPTED this 23rd day of May, 1994.

Leo Mathiasen, Mayor