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What is the Future of the City’s Industrial Land?: 

What is the Future of the City’s Industrial Land? A Dialogue About Industrial Land Use Policy for Greater Downtown Los Angeles Alameda (including Artist in Residence District) Chinatown Boyle Heights Downtown Core (including Fashion, Toy, Flower, Produce Districts) Southeast Los Angeles (South of the 10 Freeway)

Tonight’s Workshop: 

Tonight’s Workshop Presentation: Highlights from data collection Overview of Industrial Policy Issues and Options Overview of Downtown Industrial land profile Preliminary recommendations for each Downtown Industrial sub area (in break-out sessions)

Tonight’s Workshop: 

Tonight’s Workshop Obtain feedback from participants: Breakout sessions General closing session Opportunity for written comments

Mayor’s Office Request: 

Mayor’s Office Request Requested departmental recommendations on future of industrial lands (Dec. 2005) “think strategically and proceed with caution when evaluating various competing uses for our scarce industrial land.” “…have to be sure that we preserve a healthy economy and provide jobs for the City’s future.”

Mayor’s Office Request (cont’d): 

Mayor’s Office Request (cont’d) “It is critical that we plan wisely for a diversified economic base while simultaneously accommodating our need for additional housing and other uses.”

Mayor’s Office Request (cont’d): 

Mayor’s Office Request (cont’d) Study being undertaken by City Planning, CRA and other Departments Surveys and preliminary recommendations completed for Hollywood, Westside, Greater Downtown areas Recommendations will be forwarded to the City Planning Commission. Target: early 2007

City Policy: 

City Policy Preserve industrial land for industrial and job-related uses Deviations considered on a case-by-case basis

City Policy (cont’d): 

City Policy (cont’d) Housing is not allowed by right in industrial zones Requires Zone Changes, Variances, General Plan Amendments Live/work uses allowed conditionally Requires discretionary actions and specific findings

Industrial Zones: 

Industrial Zones Only 8% of City of Los Angeles is zoned for industrial use (19,000 acres, net of Port and LAX)

Key Facts: 

Key Facts A critical component of City’s economy: Industrial tax revenues total $219.4 million 13% of City total tax revenue Industrial employment in City represents 28.5% of City employment

Study Process: 

Study Process Parcel by parcel field survey of industrial: Existing uses/businesses Condition of structures Surrounding uses and physical characteristics Data Analysis: Employment Demographic Economic

Key Policy Question: 

Key Policy Question To what extent should industrial land be used to accommodate housing demand, instead of retained for industrial-related, or other, jobs and services?

Major Issues: 

Major Issues Substantial loss of industrial land to other uses 27% of industrial zoning Downtown has non-industrial uses Great demand for schools, institutions, big box commercial, and housing Other uses can outbid industrial uses Remaining industrial uses cannot pay inflated land costs Land use conflicts occur when non-industrial uses are established in a haphazard manner

Major Issues: 

Major Issues Vacancy rate for industrial land is very low less than 2% Current demand for 1.1 million sq ft of industrial expansion in the Downtown region

Major Issues: 

Major Issues New Housing in Downtown Industrial Zones – Average unit price $598,000 4% (76 of 1,715) of new units built in past 5 years were affordable units

Greater Downtown: 

Greater Downtown Industrial Regions: Chinatown Downtown Southeast LA Alameda Boyle Heights Districts of regional significance

Key Downtown Facts: 

Key Downtown Facts 2,817 acres zoned for industrial uses 8,745 existing businesses 64,000 existing jobs Support 124,000 persons in 42,500 households 27% of industrial-zoned land is currently NOT used for industrial purposes

Key Downtown Facts: 

Key Downtown Facts Within one mile of Greater Downtown: 28% of persons are employed in manufacturing jobs 79% of persons over 25 have a high school diploma or less 38% of population are living below poverty line 39% of housing units do not have access to a private automobile

Key Downtown Facts: 

Key Downtown Facts

Factors to Consider: 

Factors to Consider A healthy city must maintain a balance of jobs and housing Need for both is great and will continue as population grows Each new housing unit creates need for 1.5 jobs Many industrial jobs require skilled labor and offer higher wages than retail jobs Average industrial wage $40,648; average retail wage $19,910

Factors to Consider: 

Factors to Consider Opportunity for future jobs Expansion and growth of existing service industries Jobs of the future (Biomed, Media, Publishing, Transportation & Logistics)

Factors to Consider: 

Factors to Consider New housing in industrial zones increases land costs for new and expanding businesses Many local entrepreneurs who start businesses in industrial areas are unable to stay as they grow. Residential uses generate greater demand for city services (fire, police, etc.) High current demand for industrial land Small parcels - business incubators and start ups Large parcels - specialty users, distribution/logistics and garment manufacturing

Factors to Consider: 

Factors to Consider Industrial land also provides for many “Industrial Services” many services needed by the community “fit best” in industrial zones, e.g., Auto repair Animal services Public storage Lumberyards Equipment rentals

Factors to Consider: 

Factors to Consider Conversion of industrial land in the past has resulted in long-standing: Incompatible adjacent uses Inconsistent land use patterns Inconsistent investment in industrial districts

Major Policy Implementation Issues: 

Major Policy Implementation Issues What infrastructure improvements can be planned to improve function and appearance of district?  What design standards and guidelines can be added to Community Plans to improve the appearance of district? What business attraction strategies can be implemented? Where the City preserves the existing industrial zoning…

Major Policy Implementation Issues: 

Major Policy Implementation Issues What public benefit should be required as a condition of changing the existing zoning to a higher economic value use? In special districts, could residential uses co-exist with certain “industrial” uses, thus retaining some aspect of job-producing uses? To what extent should the loss of current jobs and businesses be mitigated? If the City is to change the existing zoning for a current industrially-zoned district…

Next Steps : 

Next Steps Staff will consider all recommendations from public workshops and any written materials submitted by December 15, 2006 Staff will prepare final recommendations for transmission to City Planning Commission Target: early 2007

Breakout Sessions : 

Breakout Sessions Session A: Room 410, 6:15 and 7:00 pm (repeat session) Alameda (including Artist District) Boyle Heights Chinatown Session B: Room ABC, 6:15 and 7:00 pm (repeat session) Southeast Downtown (Fashion, Toy, Flower and Produce Districts) Additional Public Comments: Room ABC, 7:45 to 8:30 pm


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