Biz Beat

Outrage over ‘another’ McDonald’s in Modesto. What is city’s role on new businesses?

In our Reality Check stories, Modesto Bee journalists deliver fast facts about the issues that matter to local residents to hold officials and institutions accountable. Read more. Story idea? Tips@modbee.com.

“Another McDonald’s? Why would Modesto allow that?”

Comments like that one flooded The Modesto Bee’s Facebook post linking an article announcing the closure of Marie Callender’s in early March and the news that it would be replaced by the fast-food giant after demolition.

That got us thinking: What role does city government play in deciding what businesses come to Modesto?

Can it turn down a business, or advocate for a certain one to open?

Not exactly, the city told The Bee in a statement.

When a business “does decide to invest in Modesto,” there are zoning regulations and requirements to obtain a business license and necessary permits, said Sonya Severo, the public relations and legislative affairs manager for the city. Modesto ensures that businesses comply with local laws and regulations to “protect community well-being.”

“This is generally not a matter of choosing which brands or types of businesses are allowed, but rather ensuring that all businesses meet the established standards,” Severo said.

To encourage business owners to choose Modesto, the city has fee waiver and deferral, cost sharing, expedited building permit and other incentive programs explained on its Choose Modesto website.

The website also has links to advisory services and a form that interested parties can fill out to connect with the Economic Development Department to get data or discuss opportunities.

The city “actively works to attract and retain businesses” as part of its economic development strategy, Severo said, and that effort includes helping to support businesses goals.

A recent example of this would be the partnership with the Modesto Chamber of Commerce to launch the Shop Greater Modesto virtual shopping mall, Severo said. The free digital marketplace allows local businesses to showcase their products and services.

The city also is providing a $46,778 grant to the Modesto Chamber of Commerce, which is “dedicated to fostering a thriving business community, promoting economic growth and advocating for the interests of (its) diverse member businesses,” according to the chamber’s website.

Modesto may be getting a 12th McDonald’s, and a third Dutch Bros, but businesses like an indie bookstore and a family-owned brewery also have chosen the city as their home.

“Businesses coming and going is a sign of a healthy economy responding to the ever-changing demands of the community,” Severo said.

The Dutch Bros. Coffee being built at McHenry and West Union avenues in north Modesto is pictured Monday, March 25, 2024.
The Dutch Bros. Coffee being built at McHenry and West Union avenues in north Modesto is pictured Monday, March 25, 2024. Deke Farrow jfarrow@modbee.com

This story was originally published March 25, 2024 at 12:04 PM.

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Dominique Williams
The Modesto Bee
Dominique Williams writes about new business, restaurant and retail developments for The Modesto Bee. She is a Ripon native and a graduate of Sacramento State.
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