The regulation only applies to Palo Alto’s California Ave. considered a hub for eclectic, independent businesses.
"We want to limit them, not exclude them," said a council meeting attendee.
Companies with more than 10 stores looking to come to town can still apply for a conditional-use permit, but Jonathan Lait, assistant director of the city's Planning and Community Environment Department, said this ordinance is geared at giving locally owned businesses a chance to survive in an area with rising rent as the city tries to preserve the character of their “second downtown.”
Councilman Cory Wolbach seemed to echo the “limited, but not gone” attitude toward the chains, saying "I want to make sure we're not going to force out any of the businesses that are there." There was also an amendment to the ordinance that made exceptions to the handful of chains already existing in the area.
For further reading on the Palo Alto ordinance, see here.