An ILSR Virtual Event
Ever wonder why your neighborhood doesn’t have a grocery store or pharmacy? The reason could be a sneaky lease clause used by big chains to keep competitors out. ILSR hosted a lively virtual conversation with leading experts exploring the use of restrictive covenants — and what you can do about them.
“Locked Out: The Clause That’s Killing Your Main Street” brought together people who have successfully banned restrictive covenants to provide first-hand information about how they work, how you can find them, what they cost communities, and what legal, legislative, and practical tools exist to fight back.
Rhode Island Lieutenant Governor Sabina Matos, David Folcarelli of her office, ecoRI reporter Jonmaesha Beltran, and ILSR’s Kennedy Smith together painted a stark picture of how restrictive covenants — clauses buried in property deeds and leases — keep grocery stores, pharmacies, local banks, and other independent businesses out and undermine local business districts.
The speakers also discussed how this fits a bigger pattern: concentrated corporate power is driving up costs and cutting off access to fresh food, medicine, and the other essentials every community needs. Rhode Island’s efforts show we can fight back.
Watch the video above or on Youtube here.
Here’s what you can do. Find out whether a restrictive covenant is keeping a vacant grocery or pharmacy site empty in your community. Share the recording with your local and state officials, and ask them to follow Rhode Island’s lead.
ILSR is here to help. If you want to take this on where you live, reach out to Kennedy Smith at [email protected].
You can also read more about how states and cities can fight back:
Speakers:
Rhode Island Lieutenant Governor SABINA MATOS is championing state legislation to improve access to healthy food for the state’s residents, including a new law to stop grocery store chains from using restrictive covenants to stifle competition.
JONMAESHA BELTRAN, an investigative reporter for ecoRI, dug deep into property records to uncover restrictive covenants preventing new grocery stores from opening in Rhode Island.
DAVID FOLCARELLI, a senior advisor to Lt. Gov. Matos, worked closely with the Lieutenant Governor to assemble her Fair Price Grocery Agenda, including the law banning restrictive covenants affecting grocery stores.
KENNEDY SMITH is a senior researcher for ILSR and a community economic development expert whose work focuses on leveling the playing field for independent businesses.
Rhode Island passes landmark law to end grocery store real estate restrictions.
Local and state governments can ban restrictive covenants for grocery and pharmacy chains, helping improve access to essential goods and services.
Stacy Mitchell explains how big retailers exploit their financial control over suppliers, threatening independent grocers and increasing prices. Enforcing the Robinson Patman Act could help.
The decision to stop enforcing a single law decimated the independent grocery market and led to the dominance of big chains.