Dollar General disputes West St. Paul's 'discount' label

In a dispute over West St. Paul's zoning code, Dollar General is objecting to the city's classification of its retail outlets as "discount" stores.

Although the Tennessee-based company describes itself as having the nation's largest chain of "small-box discount stores," it is disavowing the label in its pursuit of a West St. Paul site because the zoning for the location on Robert Street does not allow "discount" stores.

The spot at 1214 Robert St. was formerly occupied by Ace Hardware. Dollar General likes the location because it is available, said Chris Meyer, real estate manager for the chain.

The city would welcome Dollar General to other locations along Robert Street that are zoned for discount stores, said Community Development Manager Jim Hartshorn.

"We would like them to come in. We have plenty of locations available for them," Hartshorn said.

Meyer said no one has suggested other locations to him.

Hartshorn said the chain is set on the one location and won't listen to other ideas.

"Dollar General, along with most general merchandise retailers, frequently uses the word 'discount' in its marketing and promotional materials," Dollar General attorney William Sheahan wrote in a letter to the city. "The choice of language used by a store to entice customers, however, is by no means controlling or even relevant to a zoning use determination."

The city defines a "discount store" as one that offers all or nearly all of its merchandise at discount from the manufacturer's suggested price, and General Dollar does not meet that description, Sheahan said.

Planning commissioners listened to the arguments but said it is their job to uphold the zoning code. While they denied the appeal, they directed city staff to update the zoning code to make it clear where a store like Dollar General would fit.

Dollar General may now appeal the zoning decision to the City Council, which has the latitude to overrule the Planning Commission.

"It doesn't do the city of West St. Paul any good to have any vacant buildings, but we have to uphold the zoning ordinance," said Commission Chairman Jim Callahan.

"We are not in Edina. We are not in Minnetonka. We are what we are, and we are good. It seems like this kind of store would fit the demographics of our area," he said.

If Dollar General appeals the decision to the City Council, the council could consider it in March.