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

This workshop presentation discusses the future of industrial land use policy for various districts in Downtown Los Angeles, including Alameda, Chinatown, Boyle Heights, and the Downtown Core. It explores the challenges and opportunities of accommodating housing demand while preserving industrial land for job-related uses. Feedback from participants will be obtained to inform the recommendations.

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

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  1. 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)

  2. 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)

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

  4. 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.”

  5. 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.”

  6. 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

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

  8. 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

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

  10. 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

  11. 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

  12. 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?

  13. 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

  14. 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

  15. 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

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

  17. 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

  18. 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

  19. Key Downtown Facts

  20. 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

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

  22. 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

  23. 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

  24. 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

  25. Major Policy Implementation Issues Where the City preserves the existing industrial zoning… • 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?

  26. Major Policy Implementation Issues If the City is to change the existing zoning for a current industrially-zoned district… • 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?

  27. Next Steps • 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 • Target: Early 2007

  28. For Information Website http://cityplanning.lacity.org/under “New Features” Email Conni.Pallini-Tipton@lacity.org

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