Wal-Mart Stores, Inc. v. City of Turlock

The City of Turlock (City) adopted a zoning ordinance that prohibited the development of “big box” retail stores containing a full service grocery department. Wal-Mart Stores, Inc., and Wal-Mart Real Estate Business Trust (collectively, Wal-Mart) challenged the validity of the ordinance, claiming City unconstitutionally exceeded its police powers and failed to comply with the California Environmental Quality Act (CEQA). The superior court ruled the ordinance was a valid exercise of police power and was not subject to further environmental review under CEQA because enactment of the ordinance was not a “project” for purposes of CEQA and, alternatively, various exemptions applied.

We conclude that (1) a city may exercise its police power to control and organize development within its boundaries as a means of serving the general welfare, (2) City made a legitimate policy choice when it decided to organize development using neighborhood shopping centers dispersed throughout the city, (3) the ordinance was reasonably related to protecting that development choice, and (4) no showing was made that the restrictions significantly affected residents of surrounding communities.…