Industrial Land Use Policy Project November 2006 1 What is the Future of the City’s Industrial...

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Industrial Land Use Policy Project Industrial Land Use Policy Project November 2006November 2006

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

A Dialogue About Industrial Land Use A Dialogue About Industrial Land Use Policy for Greater Downtown Los Policy for Greater Downtown Los AngelesAngeles

• Alameda Alameda (including Artist in Residence District)(including Artist in Residence District)• ChinatownChinatown• Boyle HeightsBoyle Heights• Downtown Core Downtown Core (including Fashion, Toy, Flower, Produce Districts)(including Fashion, Toy, Flower, Produce Districts)• Southeast Los Angeles Southeast Los Angeles (South of the 10 Freeway)(South of the 10 Freeway)

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Tonight’s WorkshopTonight’s Workshop• PresentationPresentation::

– Highlights from data collection Highlights from data collection – Overview of Industrial Policy Issues and OptionsOverview of Industrial Policy Issues and Options– Overview of Downtown Industrial land profileOverview of Downtown Industrial land profile– Preliminary recommendations for each Downtown Preliminary recommendations for each Downtown Industrial Industrial sub area (in break-out sessions)sub area (in break-out sessions)

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Tonight’s WorkshopTonight’s Workshop•Obtain feedback from participants:Obtain feedback from participants:

– Breakout sessionsBreakout sessions– General closing sessionGeneral closing session– Opportunity for written commentsOpportunity for written comments

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Mayor’s Office RequestMayor’s Office Request

• Requested departmental Requested departmental recommendations on future of recommendations on future of industrial lands (Dec. 2005)industrial lands (Dec. 2005)– ““think strategically and proceed with think strategically and proceed with

caution when evaluating various caution when evaluating various competing uses for our scarce industrial competing uses for our scarce industrial land.”land.”

– “…“…have to be sure that we preserve a have to be sure that we preserve a healthy economy and provide jobs for healthy economy and provide jobs for the City’s future.”the City’s future.”

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Mayor’s Office RequestMayor’s Office Request (cont’d)(cont’d)

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

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Mayor’s Office RequestMayor’s Office Request (cont’d)(cont’d)

• Study being undertaken by City Study being undertaken by City Planning, CRA and other Planning, CRA and other DepartmentsDepartments

• Surveys and preliminary Surveys and preliminary recommendations completed forrecommendations completed for

o Hollywood, Westside, Greater Downtown Hollywood, Westside, Greater Downtown areasareas

• Recommendations will be forwarded to Recommendations will be forwarded to the City Planning Commission. Target: the City Planning Commission. Target: early 2007early 2007

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City PolicyCity Policy

• Preserve industrial land for Preserve industrial land for industrial and job-related usesindustrial and job-related uses

• Deviations considered on a case-Deviations considered on a case-by-case basisby-case basis

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City Policy City Policy (cont’d)(cont’d)

• Housing is not allowed by right Housing is not allowed by right in industrial zonesin industrial zones

• Requires Zone Changes, Variances, Requires Zone Changes, Variances, General Plan AmendmentsGeneral Plan Amendments

• Live/work uses allowed Live/work uses allowed conditionallyconditionally

• Requires discretionary actions and Requires discretionary actions and specific findingsspecific findings

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Industrial ZonesIndustrial Zones

Only 8% of City of Only 8% of City of Los Angeles is Los Angeles is zoned for zoned for industrial useindustrial use – (19,000 acres, net of (19,000 acres, net of

Port and LAX)Port and LAX)

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Key FactsKey Facts

• A critical component of City’s A critical component of City’s economy:economy:– Industrial tax revenues total $219.4 Industrial tax revenues total $219.4

million million – 13% of City total tax revenue13% of City total tax revenue– Industrial employment in City Industrial employment in City

represents 28.5% of City employmentrepresents 28.5% of City employment

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Study ProcessStudy Process

• Parcel by parcel field survey of Parcel by parcel field survey of industrial:industrial:– Existing uses/businessesExisting uses/businesses– Condition of structuresCondition of structures– Surrounding uses and physical characteristicsSurrounding uses and physical characteristics

• Data Analysis:Data Analysis:– Employment Employment – DemographicDemographic– Economic Economic

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Key Policy QuestionKey Policy Question

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

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Major IssuesMajor Issues• Substantial loss of industrial land to Substantial loss of industrial land to

other usesother uses– 27% of industrial zoning Downtown has non-27% of industrial zoning Downtown has non-

industrial uses industrial uses – Great demand for schools, institutions, big box Great demand for schools, institutions, big box

commercial, and housingcommercial, and housing

• Other uses can outbid industrial usesOther uses can outbid industrial uses– Remaining industrial uses cannot pay inflated Remaining industrial uses cannot pay inflated

land costsland costs• Land use conflicts occur when non-Land use conflicts occur when non-

industrial uses are established in a industrial uses are established in a haphazard mannerhaphazard manner

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Major IssuesMajor Issues• Vacancy rate for industrial land is Vacancy rate for industrial land is

very lowvery low– less than 2%less than 2%

• Current demand for 1.1 million sq Current demand for 1.1 million sq ft of industrial expansion in the ft of industrial expansion in the Downtown regionDowntown region

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Major IssuesMajor Issues• New Housing in Downtown New Housing in Downtown

Industrial Zones Industrial Zones – – Average unit price $598,000Average unit price $598,000

– 4% 4% (76 of 1,715)(76 of 1,715) of new units built in of new units built in past 5 years were affordable unitspast 5 years were affordable units

Greater DowntownGreater Downtown

Industrial Industrial Regions:Regions:

• ChinatownChinatown• DowntownDowntown• Southeast LASoutheast LA• AlamedaAlameda• Boyle HeightsBoyle Heights

Districts of regional Districts of regional significancesignificance

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Key Downtown FactsKey Downtown Facts• 2,817 acres zoned for industrial 2,817 acres zoned for industrial

usesuses• 8,745 existing businesses8,745 existing businesses• 64,000 existing jobs64,000 existing jobs• Support 124,000 persons in 42,500 Support 124,000 persons in 42,500

householdshouseholds• 27% of industrial-zoned land is 27% of industrial-zoned land is

currently NOT used for industrial currently NOT used for industrial purposespurposes

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Key Downtown FactsKey Downtown Facts

Within one mile of Greater Within one mile of Greater Downtown: Downtown:

• 28% of persons are employed in 28% of persons are employed in manufacturing jobsmanufacturing jobs

• 79% of persons over 25 have a high 79% of persons over 25 have a high school diploma or lessschool diploma or less

• 38% of population are living below 38% of population are living below poverty linepoverty line

• 39% of housing units do not have 39% of housing units do not have access to a private automobileaccess to a private automobile

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Key Downtown FactsKey Downtown Facts

Within 1 Within 1 mile of mile of

DowntownDowntownCitywide

Persons Persons employed in employed in

manufacturing manufacturing jobsjobs

28% 13%

Persons over 25 Persons over 25 who have a who have a high school high school

diploma or lessdiploma or less

79% 51%

Population Population living below living below poverty linepoverty line

38% 22%

Housing units Housing units without access without access

to a private to a private automobileautomobile

39% 17%

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Factors to ConsiderFactors to ConsiderA healthy city must maintain a A healthy city must maintain a balance of jobs and housingbalance of jobs and housing

– Need for both is great and will continue Need for both is great and will continue as population growsas population grows

– Each new housing unit creates need for Each new housing unit creates need for 1.5 jobs1.5 jobs

– Many industrial jobs require skilled labor Many industrial jobs require skilled labor and offer higher wages than retail jobsand offer higher wages than retail jobs• Average industrial wage $40,648; average Average industrial wage $40,648; average

retail wage $19,910retail wage $19,910

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Factors to ConsiderFactors to ConsiderOpportunity for future jobsOpportunity for future jobs

– Expansion and growth of existing service Expansion and growth of existing service industriesindustries

– Jobs of the future Jobs of the future (Biomed, Media, Publishing, (Biomed, Media, Publishing, Transportation & Logistics)Transportation & Logistics)

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Factors to ConsiderFactors to Consider

• New housing in industrial zones increases New housing in industrial zones increases land costs for new and expanding land costs for new and expanding businesses businesses – Many local entrepreneurs who start businesses in Many local entrepreneurs who start businesses in

industrial areas are unable to stay as they grow.industrial areas are unable to stay as they grow.

• Residential uses generate greater demand Residential uses generate greater demand for city services (fire, police, etc.)for city services (fire, police, etc.)

• High current demand for industrial landHigh current demand for industrial land– Small parcels - business incubators and start upsSmall parcels - business incubators and start ups– Large parcels - specialty users, distribution/logistics Large parcels - specialty users, distribution/logistics

and garment manufacturingand garment manufacturing

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• Industrial land also provides Industrial land also provides for many “for many “Industrial ServicesIndustrial Services””– many services needed by the many services needed by the

community “fit best” in industrial community “fit best” in industrial zones, e.g.,zones, e.g.,• Auto repairAuto repair• Animal servicesAnimal services• Public storagePublic storage• Lumberyards Lumberyards • Equipment rentalsEquipment rentals

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• Conversion of industrial land in Conversion of industrial land in the past has resulted in long-the past has resulted in long-standing:standing:– Incompatible adjacent usesIncompatible adjacent uses– Inconsistent land use patternsInconsistent land use patterns– Inconsistent investment in industrial Inconsistent investment in industrial

districtsdistricts

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Industrial Land Use Policy Project Industrial Land Use Policy Project November 2006November 2006 Major Policy Implementation Major Policy Implementation

IssuesIssues

1.1. What infrastructure improvements can What infrastructure improvements can be planned to improve function and be planned to improve function and appearance of district? appearance of district?

2.2. What design standards and guidelines What design standards and guidelines can be added to Community Plans to can be added to Community Plans to improve the appearance of district? improve the appearance of district?

3.3. What business attraction strategies What business attraction strategies can be implemented?can be implemented?

Where the City preserves the existing industrial zoning…

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Industrial Land Use Policy Project Industrial Land Use Policy Project November 2006November 2006 Major Policy Implementation Major Policy Implementation

IssuesIssues

1.1. What public benefit should be required as What public benefit should be required as a condition of changing the existing a condition of changing the existing zoning to a higher economic value use? zoning to a higher economic value use?

2.2. In special districts, could residential uses In special districts, could residential uses co-exist with certain “industrial” uses, co-exist with certain “industrial” uses, thus retaining some aspect of job-thus retaining some aspect of job-producing uses? producing uses?

3.3. To what extent should the loss of current To what extent should the loss of current jobs and businesses be mitigated? jobs and businesses be mitigated?

If the City is to change the existing zoning for a current industrially-zoned district…

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Next StepsNext Steps

• Staff will consider all Staff will consider all recommendations from public recommendations from public workshops and any written materials workshops and any written materials submitted by February 15, 2007submitted by February 15, 2007

• Staff will prepare final Staff will prepare final recommendations for transmission recommendations for transmission to City Planning Commissionto City Planning Commission– Target: Early 2007Target: Early 2007

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WebsiteWebsitehttp://cityplanning.lacity.org/ http://cityplanning.lacity.org/ under “New under “New

Features”Features”

EmailEmail

[email protected]@lacity.org

For InformationFor Information

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