Industrial Land Use Policy Project November 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 Chinatown Boyle Heights Boyle Heights Downtown Core (including Fashion, Toy, Flower, Produce Districts) Downtown Core (including Fashion, Toy, Flower, Produce Districts) Southeast Los Angeles (South of the 10 Freeway) Southeast Los Angeles (South of the 10 Freeway)

Industrial Land Use Policy Project November 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)

Industrial Land Use Policy Project November Tonight’s Workshop Obtain feedback from participants:Obtain feedback from participants: – Breakout sessions – General closing session – Opportunity for written comments

Industrial Land Use Policy Project November Mayor’s Office Request Requested departmental recommendations on future of industrial lands (Dec. 2005)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.”

Industrial Land Use Policy Project November 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.”

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

Industrial Land Use Policy Project November City Policy Preserve industrial land for industrial and job-related usesPreserve industrial land for industrial and job-related uses Deviations considered on a case-by- case basisDeviations considered on a case-by- case basis

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

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

Industrial Land Use Policy Project November Key Facts A critical component of City’s economy: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

Industrial Land Use Policy Project November Study Process Parcel by parcel field survey of industrial:Parcel by parcel field survey of industrial: –Existing uses/businesses –Condition of structures –Surrounding uses and physical characteristics Data Analysis:Data Analysis: –Employment –Demographic –Economic

Industrial Land Use Policy Project November 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? To what extent should industrial land be used to accommodate housing demand, instead of retained for industrial-related, or other, jobs and services?

Industrial Land Use Policy Project November Major Issues Substantial loss of industrial land to other usesSubstantial 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 usesOther 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 mannerLand use conflicts occur when non- industrial uses are established in a haphazard manner

Industrial Land Use Policy Project November Major Issues Vacancy rate for industrial land is very lowVacancy rate for industrial land is very low –less than 2% Current demand for 1.1 million sq ft of industrial expansion in the Downtown regionCurrent demand for 1.1 million sq ft of industrial expansion in the Downtown region

Industrial Land Use Policy Project November Major Issues New Housing in Downtown Industrial ZonesNew 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 Industrial Regions: ChinatownChinatown DowntownDowntown Southeast LASoutheast LA AlamedaAlameda Boyle HeightsBoyle Heights Districts of regional significance

Industrial Land Use Policy Project November Key Downtown Facts 2,817 acres zoned for industrial uses2,817 acres zoned for industrial uses 8,745 existing businesses8,745 existing businesses 64,000 existing jobs64,000 existing jobs Support 124,000 persons in 42,500 householdsSupport 124,000 persons in 42,500 households 27% of industrial-zoned land is currently NOT used for industrial purposes27% of industrial-zoned land is currently NOT used for industrial purposes

Industrial Land Use Policy Project November Key Downtown Facts Within one mile of Greater Downtown: 28% of persons are employed in manufacturing jobs28% of persons are employed in manufacturing jobs 79% of persons over 25 have a high school diploma or less79% of persons over 25 have a high school diploma or less 38% of population are living below poverty line38% of population are living below poverty line 39% of housing units do not have access to a private automobile39% of housing units do not have access to a private automobile

Industrial Land Use Policy Project November 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%

Industrial Land Use Policy Project November 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 Average industrial wage $40,648; average retail wage $19,910

Industrial Land Use Policy Project November Factors to Consider Opportunity for future jobs – Expansion and growth of existing service industries – Jobs of the future (Biomed, Media, Publishing, Transportation & Logistics)

Industrial Land Use Policy Project November Factors to Consider New housing in industrial zones increases land costs for new and expanding businesses 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.) Residential uses generate greater demand for city services (fire, police, etc.) High current demand for industrial land High current demand for industrial land – Small parcels - business incubators and start ups – Large parcels - specialty users, distribution/logistics and garment manufacturing

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

Industrial Land Use Policy Project November Factors to Consider Conversion of industrial land in the past has resulted in long-standing: Conversion of industrial land in the past has resulted in long-standing: – Incompatible adjacent uses – Inconsistent land use patterns – Inconsistent investment in industrial districts

Industrial Land Use Policy Project November Major Policy Implementation Issues 1.What infrastructure improvements can be planned to improve function and appearance of district? 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? Where the City preserves the existing industrial zoning…

Industrial Land Use Policy Project November Major Policy Implementation Issues 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? If the City is to change the existing zoning for a current industrially-zoned district…

Industrial Land Use Policy Project November Next Steps Staff will consider all recommendations from public workshops and any written materials submitted by February 15, 2007 Staff will consider all recommendations from public workshops and any written materials submitted by February 15, 2007 Staff will prepare final recommendations for transmission to City Planning Commission Staff will prepare final recommendations for transmission to City Planning Commission – Target: Early 2007

Industrial Land Use Policy Project November Website under “ New Features ” For Information

Industrial Land Use Policy Project November