What is the Future of the City

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What is the Future of the Citys 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)

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Tonights 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)

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Tonights Workshop

• Obtain feedback from participants
• Breakout sessions
• General closing session
• Opportunity for written comments

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Mayors 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 Citys future.

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Mayors Office Request (contd)

• It is critical that we plan wisely for a
  diversified economic base while simultaneously
  accommodating our need for additional housing and
  other uses.

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Mayors Office Request (contd)

• 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

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City Policy

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

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City Policy (contd)

• 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

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Industrial Zones

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

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Key Facts

• A critical component of Citys economy
• Industrial tax revenues total 219.4 million
• 13 of City total tax revenue
• Industrial employment in City represents 28.5 of
  City employment

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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

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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?

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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

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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

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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

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Greater Downtown

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

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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

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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

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Key Downtown Facts
Within 1 mile of Downtown Citywide
Persons employed in manufacturing jobs 28 13
Persons over 25 who have a high school diploma or less 79 51
Population living below poverty line 38 22
Housing units without access to a private automobile 39 17
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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

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Factors to Consider

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

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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

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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

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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

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Major Policy Implementation Issues
Where the City preserves the existing industrial
zoning

1. What infrastructure improvements can be planned
   to improve function and appearance of district? 
2. What design standards and guidelines can be added
   to Community Plans to improve the appearance of
   district?
3. What business attraction strategies can be
   implemented?

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Major Policy Implementation Issues
If the City is to change the existing zoning for
a current industrially-zoned district

1. What public benefit should be required as a
   condition of changing the existing zoning to a
   higher economic value use?
2. In special districts, could residential uses
   co-exist with certain industrial uses, thus
   retaining some aspect of job-producing uses?
3. To what extent should the loss of current jobs
   and businesses be mitigated?

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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

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Breakout Sessions

• Session A Room 410, 615 and 700 pm (repeat
  session)
• Alameda (including Artist District)
• Boyle Heights
• Chinatown
• Session B Room ABC, 615 and 700 pm (repeat
  session)
• Southeast
• Downtown (Fashion, Toy, Flower and Produce
  Districts)
• Additional Public Comments
• Room ABC, 745 to 830 pm

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For Information

• Website
• http//cityplanning.lacity.org/  under New
  Features
• Email
• Conni.Pallini-Tipton_at_lacity.org

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