California city that banned chain businesses downtown gets a Little Caesars. Wait, what?

For years, this scenic Russian River Valley enclave has worked to foster a community supportive of local businesses, in part by making it difficult for large chains to move in.

In 2018, Sebastopol leaders created an outright ban on certain chain businesses — particularly restaurants and hotels — from its downtown.

But this month, one of the nation’s largest pizza chains plans to open up in that exact downtown area — much to the concern, and surprise, of many locals.

The new Little Caesars restaurant was somehow approved in error, city officials recently admitted, as first reported by the Press Democrat. The approval of the new franchise for the chain appears to have been granted despite being in direct conflict with the city’s prohibition of “formula,” or chain, businesses in its downtown.

Officials with the city of Sebastopol owned up to the mistake but said it was too late to reverse course on the Little Caesars project, according to a statement shared on the city website. The city didn’t immediately respond to questions about how the error might change enforcement of the ban moving forward.

The City Council, however, recently considered updating the ordinance, hoping to clarify its language and ease enforcement, officials said at a September council meeting. But those changes are still under review, and it doesn’t appear they would reverse the downtown ban on chains.

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In a statement about the Little Caesars approval, officials said the city “regrets this oversight, accepts full accountability for the error, and remains committed to transparency, accountability, and the consistent enforcement of city policies and procedures.

“We appreciate the community’s understanding and patience as we strengthen our processes.”

The statement did not say how the project came to be approved but said officials with the city’s administration had already started a “comprehensive review of the permitting process to identify the cause and implement corrective actions.”

Beyond the ban of certain chains in its downtown area, Sebastopol zoning laws for commercial areas outside of the downtown district specifically regulate and require additional permits for “formula businesses,” which are chain businesses with 25 or more locations nationwide, according to the city. Little Caesars Enterprises Inc., based in Detroit, was founded in 1959 as a single, family-owned restaurant, but it has since expanded dramatically, with locations in all 50 states and in 30 countries and territories, according to the business.

The family bringing the Little Caesars to Sebastopol’s downtown said in a statement that they consider the franchise a family-owned, small business despite its link to the major pizza chain, noting that they have “lived and worked in this region for years.”

“We know how much Sebastopol values its character, and our goal is to contribute to the community, not change it,” Gurdip Pahal and his family wrote in a statement. “We followed the city’s permitting process in good faith, are honored that we were approved to join this vibrant community and are focused on serving our neighbors and supporting local organizations. We can’t wait to meet everyone for our grand opening celebration in the coming weeks.”