Palos Verdes Peninsula News
Saturday, January 12, 2008
by Chris Boyd 

Report analyzes downtown’s economic state


As part of Rolling Hills Estates city officials’ efforts to revitalize the downtown area between
Hawthorne and Crenshaw boulevards, council members in March 2006 approved a four-story,
58-unit condo complex located at the site of the former PV Car Wash at 627 Deep Valley Drive,
shown above.

Officials who reviewed the study see it in different ways.

RHE — With a downtown area that often struggles to attract customers and faces fierce competition from retailers in places like Torrance, Rolling Hills Estates city officials for years have tried to figure out how to revitalize their commercial district.

Last August, the City Council approved a contract with Economic & Planning Systems Inc., or EPS, to prepare the Peninsula Center Commercial District Economic Analysis, which was released this week. EPS studied the downtown area located on Silver Spur Road and Deep Valley Drive between Hawthorne and Crenshaw boulevards.

“I think they’re probably very correct in the conclusions that they made and the nature of our commercial district. It must serve the needs of the local people who live here,” said Councilwoman Susan Seamans, who reviewed the report along with fellow Councilman Steve Zuckerman. “We need to move forward and let the private sector work in its own way to some extent.”

“The study provides an analysis of the retail, office and residential sections in the retail district and provides some policy options for the council to consider in the revitalization of the district,” said Senior Planner Niki Cutler. “The City Council is concerned about maintaining the long-term success of the commercial district, and this is one tool they can use to help enhance and revitalize the district.”

Perhaps most telling, “The study concludes that the relatively limited amount of residential development that could be accommodated in the commercial district, even a maximum of 900 units, would not be sufficient alone to revitalize the retail sector,” according to a staff report from Cutler.

At the same time, the study indicates that residential construction encourages redevelopment “by improving overall financial feasibility,” Cutler’s report states.

In addition to residential and commercial uses, the analysis addresses the demand for office space and parking, including the need for medical and professional tenants. “The study indicates that demand for office uses in the commercial district could accommodate expansion of between 100,000 and 200,000 additional square feet over the next five to 10 years,” according to Cutler’s report.

“This is a good study because the owners can see what they need now,” Seamans said. “There’s lots of entrepreneurs on the Peninsula now that need that space.”

EPS also suggests that city officials may want to revisit their parking policies. “There are a whole lot of red-line curbs that I don’t think need to be there,” Seamans said, adding that many spaces currently aren’t used. “There’s nothing wrong with having parallel parking on the street. Down on big Silver Spur, there’s lots of parking … If we install parking stalls, then maybe people will get the idea.”

Development question

Seamans would like to see residential development like the condominium and apartment complexes currently under construction. “Having residents living in that area is the right way to go,” she said. “The city is dependent on retail sales and sales tax … [We] need to do everything we can to encourage people to be there. To do that, we need to have money to spruce up the place.”

Basically, the city could collect money from developers to improve aesthetic aspects of the area like landscaping and lighting.

While some of his colleagues may believe residential development will spur economic growth, Zuckerman begs to differ and says EPS’ findings confirm that such development will not do any favors for local businesses. “There’s just not enough there to help the existing businesses significantly,” Zuckerman said. “In fact, it’s going to hurt many local businesses by forcing them off the Hill. We’re going to lose a lot of our existing businesses.

“It’s going to become essentially an area full of condominium buildings, and people won’t be able to do what they want to do,” he added. “The report speaks for itself … It’s not going to reduce traffic demand at all. Why does forcing me to drive down to my dentist, who used to be on the Hill, how does that help anybody? Residential use will absolutely devastate that area … I think this study provides a very, very necessary dose of reality.”

Seamans said the city would benefit from working alongside developers. “We need to be in partnership with them … and help get the right mix [of retail and residential].”

Despite past revitalization efforts that saw limited results, Seamans is determined to press ahead. “You’ve got to come back and keep trying,” she said. “I would think that the existing businesses would be inclined to support it.”

A thriving commercial district is a major plus for RHE, Seamans said. “The city needs to be healthy to ensure our tax base is healthy,” she said. “It’s going to grow slowly. We have to think in those kinds of terms — long, long term … We’re just fortunate to have [downtown].”

In upcoming conversations with fellow officials, Seamans plans to talk about the types of merchants downtown. Does the city want “mom-and-pop shops,” or should it concentrate on attracting big retailers like sporting goods and home and hardware warehouses?

“I look forward to discussing the correct tenant mix and that sort of thing,” Seamans said. “We need to make sure that whatever is built from now on serves our needs.”

Seamans said she’s optimistic about the report. “It’s not going to be one that sits on the shelf,” she added.

Zuckerman views the analysis in another light. “This study certainly removes the argument that what we’re doing is for economic benefit,” he said.

To see the full EPS study, go to the city’s Web site at:

www.ci.rollinghills-estates.ca.us  and click on the Community Issues tab.

RHE City Council members will discuss more about downtown revitalization during their policy development session on Saturday, March 1 (time and location will be determined).

 Visit the PV News website at:  http://www.pvnews.com/local_news/