FOUNTAIN VALLEY : City May Not Allow Churches, Retail Mix

Establishing churches in commercial zones may no longer be allowed because they prevent the city from collecting sales taxes from retail businesses that could occupy the buildings.

The City Council last week passed a 45-day moratorium on allowing churches in commercial zones to give city staff time to examine the issue.

Andrew Perea, planning services manager, said there have been several inquiries about placing churches in retail buildings, including the vacant Builder’s Emporium on Brookhurst Street.

Perea said allowing churches in retail centers could have serious affects on the city’s financial health because churches do not generate sales taxes and are exempt from the property tax.

Churches are allowed in agricultural and residential zones with a conditional-use permit.

Perea said the city’s existing code that allows churches could let “store-front” churches in commercial shopping centers such as Callens Corner, Fountain Valley Plaza or Mariposa Plaza.

Currently, two of the city’s 15 churches are in commercial areas, Perea said.

During the moratorium, a study will be conducted to determine if churches should continue to be permitted in the commercial zones or if changes to development standards should be made, Perea said.