ESCONDIDO -- A week before a new City Council-approved development plan will go into effect in the East Valley area, three businesses that would be banned under the new ordinance are about to open.

The so-called "overlay plan" sets out design guidelines for the 225-acre commercial area that runs along East Valley Parkway strip between Hickory Street and Citrus Avenue. It also lists what kinds of businesses will be allowed to open their in the future. Businesses that would be banned include check-cashing outlets, car dealerships, pawn shops, tattoo parlors, liquor stores, discount stores and stores that sell all items at the same cost.

The City Council approved the plan in September on a 4-1 vote, with Councilman Tom D'Agosta casting the dissenting vote. The plan will go into effect Nov. 5.

According to the city Planning Department, a tattoo parlor, check-cashing outlet and Dollar Tree store have pending business licenses for the district and a "50 cent-plus" store opened earlier this month.

The licensing process is typically completed within 21 days, city officials said.

The overlay plan was written by city staff members and the East Valley Association, a group of East Valley area residents, business and property owners. The association lobbied the City Council to approve the plan as a way of cleaning up an area that had once been a thriving commercial strip but stumbled into a downturn during the 1990s. Vacant buildings that for a time blighted the area have now begun to fill and new shopping centers have opened. The plan aims at bringing more upscale businesses to the neighborhood.

"People are adamant that we need to a higher standard for Escondido," said East Valley businessman Sam Abed, a founder of the association and one of five candidates vying for two City Council seats Nov. 2.

But D'Agosta, who is running for re-election, said he thought that restricting the types of businesses would end up costing the city thousands of dollars in legal fights.

"All it's going to cause is lawsuits (that) you're going to lose," he said. "They have a constitutional right to have a business."

According to the association's statistics, of the 400 businesses on East Valley Parkway, there are already 41 discount stores, eight check-cashing outlets and four tattoo parlors.

"Talk about an overconcentration … . How many more do we need?," said Councilman Ed Gallo, a plan supporter who is also running for re-election.

Baza Fashion, which advertises as a "50-cent plus" store at 2341 E. Valley Parkway, opened Oct. 2. A visit to the store this week shows it sells mostly hair accessories and some jewelry and gifts. Most items cost 50 cents but some had price tags in the $8 range.

Owners of the boutique said the store is not the typical bargain store and resembles businesses found in most malls.

"It isn't like a 99-cent store because I'm not selling liquids to wash dishes or windows … or toilet paper," said owner Lucy Davidovich, a Valley Center resident. "It's hair accessories … . It's not like a discount store for everything."

Gallo said he saw the store and that it was attractive and clean but he is concerned about the longevity of the business.

"They have to charge more to pay the rent and they don't have the product to do that," he said. "(Vacancies) send a message that this area must not be good for business."

Fima and Lucy Davidovich own a similar store in La Mesa selling mostly furniture and some gifts. She said Baza Furniture opened in October 1999 and had a slow start, like any other new business, but that it has been successful.

"In the beginning, it was hard. It's five years already and its growing," Lucy Davidovich said, referring to the La Mesa store. "I hope this (new) business will be successful."

Contact staff writer Adrienne A. Aguirre at (760) 740-3526 or aaguirre@nctimes.com.