But finding ways to bolster local businesses, such as those stranded by redevelopment in Sugar House, is increasingly difficult as rents continue to rise in popular areas, said speakers at a Local First Utah panel discussion Wednesday night.

"We would hope that our elected leaders . . . will say these are districts and communities that demand our allegiance and our loyalty," said David Nimkin, vice chairman of Local First, a nonprofit that promotes small businesses.

Shopping at local stores can have three times the impact on the local economy as patronizing national chains, Nimkin said, because owners spend their revenue within the community.

In April, the Salt Lake City Council asked city staff to draft an ordinance to preserve unique business districts, but the new law likely won't be ready for consideration until the end of this year.

Mayor Rocky Anderson is rooting for a ban or limit on the number of chain retailers and restaurants allowed in the city's eclectic commercial zones, including 9th and 9th, 15th and 15th, Broadway Boulevard and pockets of Sugar House.

But the City Council has given a preliminary nod only to a proposal submitted by Councilwoman Jill Remington Love. She would like to limit the appearance - but not the number - of "formula" stores so that they blend in better with local businesses. The ordinance could also include size restrictions.

"I certainly want to preserve the feel of these neighborhood districts and not lose the character," Love, who lives in the 15th and 15th neighborhood, said in an interview.

She hopes to find other ways - besides an outright chain ban - to foster and preserve local businesses, such as offering consulting or even establishing a temporary, free-rent "incubator" location for new enterprises.

City Councilman Soren Simonsen, who spoke on Wednesday's panel, hoped an inventory under way of historic Sugar House buildings will help those sites be preserved, at lower rent, for local businesses.

Several small retailers in the Granite Furniture block, bounded by 2100 South, Highland Drive, Sugarmont Drive and McClelland Street, have moved or are moving soon to make way for a new development.

This week, the City Council granted three $15,000 relocation grants to Sugar House businesses: Ten Thousand Villages, Pib's Exchange and a raw foods bar. Cynthia Osmun, owner of Luna's Italian Ice and a speaker at Wednesday's event, said she already has moved to the 9th and 9th area.

But it's unknown whether local businesses will return to the Granite block once it is remade.

"I would be really upset if that whole street became like Sugar House Commons," said Salt Lake City resident Erica Lake after the panel discussion.

"You just don't want to go and see the same five shops everywhere. You want to retain the character that is unique to an area."

rwinters@sltrib.com