Economics Lesson For Council On Plans To "Repurpose/Reposition" Downtown's "CityPlace" Shopping Area

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(Sept. 7, 2015) -- We held off on reporting announced plans to "repurpose/reposition/rename" downtown LB's "CityPlace" shopping area (between LB Blvd. and Pine Ave., from 3rd St. (includes parking structure) to 6th St.) because an accompanying release (full text and artist renderings below) didn't mention what we consider a newsworthy fact.

We have confirmed that fact and are pleased to report it. LB's Dept. of Development Services (spokesperson Jacqueline Medina) tells us "the improvements are all privately funded." And the firm handling communications for CityPlace tells us: "The project is being funded by the property owners."

To us, that's very newsworthy and very praiseworthy. We think it gives the changes a real chance of success (since history shows less than successful outcomes when City Hall bureaucrats and politicians get involved.)

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However, in our view the outcome is also dependent on other facts. Even the best redesign won't bring better stores or more shoppers. We believe there are underlying economic reasons why Nordstrom Rack left downtown with plans to resurface next month near 2nd/PCH, and why Albertsons left CityPlace and was replaced by an El Super ("cuesta menos") while SE LB got a Gelsons.

It's not about architecture. It's about economics. In our opinion, LB's economic realities are very much related to what LB's City Council fails to provide in terms of public safety.

Some say Walmart is part of the problem, but other areas have Walmarts (including ELB's thriving Towne Center) and they don't attract what residents and shoppers see downtown.

We think LB Councilmembers need to face facts that they too often downplay or deny. Below is a map showing fatal and non-fatal shootings cumulated from Jan. 1, 2014 to date. Councilmembers' votes contributed to drawing the X's (red for murders, blue for non-fatal shootings, other colors detailed below.)

Red Xs=2014 and 2015 murders to date; Blue Xs=2014 and 2015 shootings, person wounded; Brown Xs=shots fired at victim(s), not hit; Purple Xs=2014 shots at occupied residence/vehicle; Green Xs= 2014 and 2015 shots at unoccupied vehicle/residence; Grey Xs=shots fired (no hit, no target identified); Orange X's=non-fatal stabbings. Map is unofficial. A separate map (not shown here) indicates add'l shootings in NLB.

LB Councilmembers and the Mayor who try to quiet constituents by claiming "crime is down" show they are in denial, part of the problem and not the solution, by failing to grasp the economic consequences of the data on that map.

Even if crime is lower than it once was, it remains disproportionately higher in parts of Long Beach -- including neighborhoods near and around CityPlace -- compared to other parts of Long Beach and other nearby cities.

That's what sends Nordstrom Rack and Gelsons -- and the customers who'd patronize them -- to SE LB and OC.

In terms of budgeted police per capita, the Long Beach City Council barely budgets 1.6 budgeted sworn citywide deployable officers per thousand residents. Los Angeles provides roughly 2.5 officers per thousand; Signal Hill about 3.0. To fall per capita to LB's budgeted police level, L.A. would have to cut roughly 35% of LAPD's officers.

The Council no longer budgets roughly 200 officers (over 20% fewer) for citywide deployment that the City provided in 2008. Councilmembers no longer budget LBPD's former field anti-gang unit that deployed 20 officers + 2 sergeants directly in gang impacted areas. Councilmembers no longer provide the level of visible officers LBPD once had to deter the now-epidemic of residential burglaries.

When some LB Councilmembers boast that the proposed budget will leave things basically as is, THAT's what they're proposing to leave as is.

In terms of firefighter resources, Councilmembers have left taxpayers with three "ghost" fire stations (station 8 on 2nd St./Belmont Shore), station 17 in the 2200 block of Argonne) and station 18 (Palo Verde/Wardlow)) without staffed fire engines capable of putting out fires. In January 2014, a house burned across the street from station 17 until a further engine arrived (LBREPORT.com coverage here.) Meanwhile, station 1 downtown (Magnolia b/w Broadway-Ocean) no longer has a staffed second engine to deal with high rise fires in the densely populated downtown core.

We urge Long Beach Councilmembers to show that they've learned something after the City (aided by public money) built and hyped a Long Beach Plaza, then tore it down, then built and hyped what downtown LB has now at "CityPlace" that it now wants to change (again.)

The City Council's upcoming budget sessions are an opportunity to begin real, overdue change. That process begins by requiring LB Councilmembers to explain why the city they govern fails to provide its taxpaying residents and businesses with police and firefighters at levels that other cities like L.A. and Signal Hill do...Long Beach used to do. It's a threshold question that may bring complex answers, but for the sake of the ambitious plans for CityPlace, and the city's neighborhoods citywide, it's time for Councilmembers get those answers and make changes to the way this city serves its taxpayers.

Below are artist renderings of the new CityPlace plans...and an accompanying release (in full).

Promenade view looking north at 3rd St.

Promenade view looking south at 4th St.

Third St. looking west from LB Blvd.

Third St. looking west from the Promenade

[CityPlace release text] (September 02, 2015) --- City Place Long Beach officials today announced the repurposing and repositioning of City Place Long Beach to begin immediately. The nearly 4-year, 3-phase, multi-million dollar project will transform Downtown Long Beach. Studio One Eleven, architects and urbanists, led the urban design and facade improvements. In collaboration with P+R Architects, they also designed the interiors for the development.
Leading the project announcement was Tony Shooshani, owner's representative for City Place Long Beach; Dr. Robert Garcia, Mayor, City of Long Beach; Lena Gonzalez, 1st District Councilwoman, City of Long Beach; and Michael Bohn, Senior Principal at Studio One Eleven. Special appreciation was extended to Pat West, City Manager, City of Long Beach.
The first phase of the project focuses on the areas from Third Street between Pine Avenue and Long Beach Boulevard, and Promenade North between Third Street and Fourth Street. Harvey Milk Park will also play a great role in the new district. The project will build on the existing foundation and make it better by integrating into the adjacent downtown, and eventually repurpose the eight-block area into a vibrant mixed-use district featuring a hub of unique restaurants, businesses and retail for all the residents of Long Beach to enjoy.
New dining spaces will include three restaurants lining the entrance to Promenade North on Third Street. The project aims to establish a creative district consciously diverging from the City Place shopping center and aligning itself with the energy and development trends that are taking place to the south of the site.
"The Downtown area is flourishing with new activity and growth. We made every effort to create the right balance of work, eat and play that will enhance the existing surroundings and appeal to today's audiences," said Tony Shooshani, owner's representative for City Place Long Beach. "Along with repurposing and enhancing of the shopping center we are repositioning the new district to offer a distinct guest and employee experience that opens the opportunity for a new name."
Longtime Long Beach-based Studio One Eleven and P+R Architects will become a tenant and will experience firsthand the benefits of their work when moving from their current location on West Ocean Boulevard. "Our company has been rooted in Downtown Long Beach for more than 20 years and we are thrilled to stay here," said CEO of P+R Architects Steve Ruth.
"Studio One Eleven/P+R is excited to be part of Downtown's revival by extending the vibrancy and character of the Promenade south of Third Street northward," said Michael Bohn, Senior Principal at Studio One Eleven. "By moving our 120 jobs to this area, we hope to be a catalyst for new dynamic retail serving downtown's burgeoning residential population. This exciting move fits directly with our mission which is dedicated to creating vibrant and healthy communities." Founding Senior Principal of Studio One Eleven Alan Pullman added, "As a community based firm becoming the anchor tenant on Third Street allows us to not only design for urban repair but to practice it."
The building renovations are intended to be simple and contemporary. Materials and graphics creatively transform the art deco style of the buildings into a cohesive urban environment that truly reflects today's residents and patrons. New buildings adopt a minimalist architectural style, allowing flexibility of tenant modification while forming the backdrop to the excitement of the public realm. Exteriors of long-term tenants will be improved to better integrate into the district, while smaller "maker spaces" will be created for local chefs and artisans, craft brewers, barbers, and clothing designers -- all reflecting the changing demographics of the city and current retail and food and beverage trends.
In addition, City Place Long Beach will also take on a new name with the help of the community. Together with Downtown Long Beach Associates, a public forum will soon launch to assist in the renaming of the new downtown district.
JLL Senior Vice Presidents Mike McKeever and George Thomson represented P+R Architects in the lease.
City Place presents 37 retail stores, specialty shops, entertainment venues, and dining outlets to residents, workers and guests to the Downtown area. [end release text]

Note: LBREPORT.com's sources for police ratios cited are as follows:

LB's proposed FY16 LBPD budgeted level of 806 sworn officers (source: FY16 proposed budget) minus roughly 60 "contracted" officers not available for citywide deployment since they're contracted to and paid by the Port, Airport, LBCC, LBTransit, LBUSD (City pays 25% of school officers) to handle policing at their locations. 806 budgeted - 60 contracted = 746 budgeted sworn officers deployable citywide. That figure is divided by the most recently updated population for LB (472.779) by the CA Dept. of Finance, Report E-1, May 2015. Thus: 474.779 / 746 = 1.58. LA's most recently updated sworn staffing level information provided by responding LAPD PIO (week ending Aug 28, 2015.) Signal Hill's total budgeted sworn officer figure provided by city's Finance Director; LB and Signal Hill. Ratios for those cities also derived using most recently updated CA Dept. of Finance population figures.

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