The c-store market in Denver is going to look different in the coming years.
This week, Denver city council passed an ordinance limiting the construction of new gas stations to address the affordable housing crisis, reported KDVR. It also aims to promote walkable and sustainable construction projects in Denver.
The ordinance updates Denver’s land use policy on gas station development and amends the Denver Zoning Code, meaning gas stations can only be built in certain parts of the city, according to the city council.
The ordinance states that new gas stations must be built at least a quarter mile from existing ones, 300 feet from certain residential areas and a quarter of a mile from a light rail station. The ordinance excludes buildings of at least 20,000 square feet in an effort to develop grocery stores in underserved areas. Additionally, construction projects that were submitted before May 13, 2024, will be exempt from the ordinance.
The law was proposed by council members Diana Romero Campbell, Amanda Sawyer and Paul Kashmann in December 2024. On Feb. 18, the ordinance passed in a 12-1 vote. The lone holdout, Councilwoman Flor Alvidrez, was not convinced of the ordinance’s ability to improve affordable housing in Denver.
A Potential Pattern
This is not the first time legislation like this has come into play for the c-store industry. In February 2024, the city of Sacramento proposed banning the construction of new gas stations in an effort to build up electric vehicle (EV) infrastructure.
In its 2040 Sacramento General Plan, the city proposed adding EV chargers to existing sites as it tries to reduce the use of fossil fuels and gas-powered machines in the city.
“The City shall prohibit the establishment of new gas stations or the expansion of new fossil fuel infrastructure at existing gas stations unless the project proponent provides 50kW or greater Direct Current Fast Charger (DCFC) electric vehicle charging stations on site at a ratio of at least one new charging station per one new gas fuel nozzle,” the General Plan read.
The proposal — should it be put into action — would have notable impacts on the c-stores in the area, as well as local small businesses.
In May 2023, the California Fuels and Convenience Alliance (CFCA) published a study titled, “Impacts of a Statewide Ban on New Construction and Upgrades to Fueling Establishments in California,” highlighting the effects that legislation and local bans can have on new construction of fueling stations in California.
The report highlighted “what is at stake with respect to a statewide ban,” which included concerns like loss of jobs and small business opportunities, loss of fueling options for consumers, less cash-flows generated, less competition and higher prices for gasoline — which would likely fall on lower- and moderate-income households.
The CFCA recommends instead allowing market forces to determine the level of new construction and remodeling of c-stores and gas stations.
