The Independent
The Springdale Planning Commission and the Springdale Town Council will hold public hearings on July 7 and 8, respectively, to take public comment on proposed revisions to the town ordinance that would remove the current prohibition on formula restaurants. A formula restaurant is one that is required by contract or other arrangement to be substantially identical to other restaurants.
In 2006, the Town adopted an ordinance that prohibits formula restaurants. The purpose of the ordinance was and remains to protect and promote Springdale’s unique village atmosphere. In preparing and adopting the ordinance, the Town conducted extensive research regarding the various elements that contribute to the village atmosphere.
Springdale prides itself on its small-town character and unique sense of place, its close relationship with Zion National Park, and its unparalleled natural beauty and distinctive setting in Zion Canyon. These factors combine to create a village character and atmosphere unique to Springdale and distinctly different from that of any other small town. When it adopted the ordinance in 2006, the Town Council identified formula restaurants as one of the most significant threats to Springdale’s village atmosphere.
While the ordinance has been effective in helping Springdale retain its village atmosphere, factors beyond the Town’s control have now forced the Town to alter its regulation of formula restaurants.
The Town has been involved in a lengthy litigation in federal court with a Springdale property owner who is challenging the ordinance. While this lawsuit has not definitively answered the question of the ordinance’s legality, it has taxed the Town’s fiscal and insurance resources.
The Town’s insurance carrier has defended the Town and the ordinance throughout the lawsuit. However, given the unsettled nature of current legal environment and the amount of resources already expended defending the ordinance, the insurance carrier’s risk management team has determined they will cancel the Town’s insurance coverage if the ordinance remains in place.
Since the Town Council has an obligation to protect the Town’s financial security, it has determined it is unwise and irresponsible to allow the insurance coverage to be cancelled. Doing so would place the Town at untenable financial risk. While the Town Council believes in and is committed to the goals and objectives of the ordinance, it also has a duty to protect the Town financially. When placed with a decision to either retain the ordinance and lose insurance coverage or repeal the ordinance and keep insurance coverage, the Town Council determined to begin the process of repealing the ordinance.
“This has not been an easy decision to make,” said Mayor Stan Smith. “We have been challenged by difficult choices and are trying to do what is ultimately best for the Town.”
