VERMONT AVENUE CORRIDOR LOS ANGELES, CALIFORNIA

Recommendations for the Revitalization Of the Vermont Avenue Corridor in South Central Los Angeles

November 13, 1992 An Advisory Services Panel Report

ULI-the Urban Land Institute 625 Indiana Avenue, N.W. Washington, D.C. 20004 ABOUT ULI- THE URBAN LAND INSTITUTE

LI-the Urban Land Institute Much of the Institute's ULI PROJECT STAFF Ui s a nonprofit education work is accomplished through and research organization that its councils, which include: Marta Goldsmith is supported and directed by its • Commercial and Retail Staff Vice President members. Its mission is to pro~ Development Councils International and vide responsible leadership in • Community Development Advisory Services the use of land to enhance the Councils Diane R. Suchman total environment. • Development Infrastructure Consultant ULI sponsors educational and Services Council Advisory Services programs and forums to encour~ • Development Regulations age an open, internatio nal ex~ Council Adrienne Teleki change of ideas and experience; • Industrial and Office Park Panel Coordinator initiates research that anticipates Development Councils Advisory Services emerging land use trends and • International Council issues; proposes creative so lu ~ • National Policy Council Nancy H. Stewart tions based on this research; pro~ • Recreational Development Managing Editor vides advisory services; and pub~ Council lishes a wide variety of materials • Residential Development Ann Len ney to disseminate information on Councils Copy Editor land use and development. • S maii ~Sca l e Development Helene Y. Redmond Established in 1936, the In ~ Councils HYR Graphics stitute today has approximately • Urban Deve l opment/Mixed~ 16,000 members and associates Use Councils Layout from 40 countries representing This Advisory Services panel Jeffrey Urbancic the entire spectrum of the land report is intended to further the Artist use and development disciplines. objectives of the Institute and They comprise developers, build~ to make authori tative informa~ ers, property owners, investors, tion generally available to those appraisers, planners, attorneys, seeking knowledge in the field engineers, financiers, aca demi ~ of urban land use. cians, students, and librarians. ULI members contribute to Richard M . Rosan higher standards of land use Executive Vice President by sharing their knowledge and © 1993 by ULI-the Urban Land Institute 625 Indiana Avenue, N.W. experience. The Institute has Washington, D.C. 20004 long been recognized as one of America's most respected and All rights reserved. Reproduction or use widely quoted sources of o bj ec~ of the whole or any part of the contents without written permission of the copy- pl a n ~ tive information on urban right holder is prohibited. ning, growth, and development. ULI Catalog Nu mber V04 CONTENTS

ACKNOWLEDGMENTS 4

THE LOW-INCOME NEIGHBORHOOD PANELS PROGRAM 5

PANEL MEMBERS AND STAFF 6

FOREWORD: THE PANEL'S ASSIGNMENT 7

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS 9 Summary of Recommendations 9 Overview of Issues and Opportunities 10 Development Potential 16 Planning and Design 2 I A Community-Based Planning Process 29 An Organizational Blueprint 34 Development Tools and Techniques 36 Financing 40

CONCLUDING COMMENTS 44

ABOUT THE PANEL 45 ACKNOWLEDGMENTS

oth personally and on be~ • Cynthia Adame. Cheryl Geiser, Bhalf of the Urban Land In ~ and Barbara Haywood of stitute, the panel members and HPPD for their diligence in staff would like to thank Mayor providing information as Tom Bradley, Council Members needed; and Mark Ridley~ Thomas and Rita • The many others within the Walters, and the city of Los city of Los Angeles who made Angeles for inviting ULI to un~ the panel's work possible. dertake this panel assignment. In addition, the panel wishes The panel would also like to acknowledge the many com~ to thank the following for their munity and business leaders assistance with this panel: who provided their unique in ~ • Gary Squier, general manager sights and perspectives during of the housing preservation the interview process. Their par~ and production department ticipation enabled the panel to (HPPD). for his vision for the base its recommendations on panel and for support and accurate, timely, and balanced information; information. • Con Howe, general manager Th is panel was made pos~ of the city's planning depart~ sible through a generous con~ ment. for providing needed tribution from the Urban Land planning information; Foundation. • Maya Dunne of HPPD for coordinating the interview sessions and data for the panelists;

4 THE LOW-INCOME NEIGHBORHOOD PANELS PROGRAM

he Vermont Avenue corridor In addition, ULI will iden- Tin Los Angeles is the sixth tify the commonalities among and final ULI panel assignment the six panel assignments and conducted under a special pro- suggest solutions that could gram targeted at low-income prove beneficial in other cities neighborhoods. The Low-Income facing similar issues. Neighborhood Panels program The panels in this program was created under the auspices have been possible in part be- of ULI's Low- and Moderate- cau se of generous contributions Income Housing Task Force, from: which is cochaired by ULI trus- • AEtna Realty Investors, Inc., tees Leanne Lachman and Nina and The AEtna Foundation; Gruen. The mission of the pro- • Chicago Title Insurance gram is to develop successful Company Foundation; strategies for delivering low- • Coldwell Banker Real Estate income housing and/or im- Group and Sears Mortgage; proving the physical and eco- • The Equ itable Rea l Estate nomic conditions of Investment Management, low-income neighborhoods. Inc., and its parent company, Beca use of contributions The Equitable; from the institutions listed be- • Lincoln National Corporation; low, ULI has been able to offer • Teachers Insurance and its Advisory Services panels at Annuity Corporation; and a reduced price to six sponsors • The Urban Land Foundation. selected through a competitive proposal process. The panels are designed to help pa rticipat- ing communities resolve specific problems within designated neighborhoods.

5 PANEL MEMBERS AND STAFF

PANEL MEMBERS Naomi Porat Vice President Smedes York, Cha irman Sedway & Associates President San Francisco, California York Properties, Inc. Raleigh, North Carolina R. Terry Schnadelbach Principal Raymond Brown The Schnadelbach Partnership Raymond Brown Architect New York, New York Dayton, Ohio Michael A. Stegman Rick Cohen Chairman, Department of Consultant in Housing Planning Regional and City Planning and Policy Analysis Un iversity of North Carolina Brooklyn, New York Chapel Hill, North Carolina

Paula Collins Roslyn M. Watson Principal Vice Pres ident WDG Companies The Gunwyn Company San Bru no, California Cambridge, Massachusetts

Fritz L. Duda ON-SITE UU STAFF President Fritz Duda Company Diane Suchman Da llas, Texas Consultant Project Di rector James Goodell President Ad rienne Teleki Goodell Associates Associate Pasadena, California Advisory Services Dennis B. Martinez Director Economic Development Department City of Da llas Dallas, Texas

6 FOREWORD: THE PANEL'S ASSIGNMENT

fter many years of neglect, Panel Cf1a irman Smedes ASouth Central Los Angeles York. has come to be perceived as impoverished, unstable, and in ~ hospitable to investment. The recent riots have reinforced that perception. The riots also focused pub ~ I ic attention on the community- attention that could benefit the entire city. The current serious economic recession in Los An ~ geles, characterized by outmi~ gration of industry and accom~ panying job loss. mea ns that the city must. for the sake of all South Central Los Angeles has of its citizens, become more continued to decline. Today, it economica lly competitive. For is a vast. diverse area with great shou t ~ that to occur. the city must vitality but also with serious der its responsibility to make problems and enormous needs. the rea lity and the image of In the wake of the April 1992 neglected communities such as civil disturbances in South Ce n ~ South Central more attractive- tral Los Angeles, ULI offered the physically, socially, and eco~ services of its Advisory Servi ce nomically- as places in which to the city of Los Angeles to help to live and work. redevelop this troubled area . Once a thri ving Africa n ~ The first panel convened in re~ American community, the South sponse to this offer was held in Central area deteri orated as the August 1992 and focused on as~ city grew larger and the more sisting the city and the banking prosperous res idents moved community in es tablishing a out. Over the years. the decline multi bank community develop- of physica l stru ctures has been ment corporation (CDC) for accompanied by deterioration economic development. in the economic and social fab~ ric of the community. Despite civil unrest in 1965 and the thoughtful assessment of the community's needs that followed.

7 Th is report is the result of the second panel. in which the city's housing preservation and product ion department (HPPD) Avenue, and the amount and asked ULI to consider reuse type of residential development options for obsolete and under- that would be appropriate to used strip commercial corridors support the commercial devel- in South Central Los Angeles. opment and serve the commu- South Central's major commer- nity's needs. In addition, the cial strips are populated largely panel was asked to look at trans- by small businesses and charac- portation needs. strategies to terized by inconsistent and in- create and preserve affordable compatible land uses, old and housing, infrastructure requ ire- deteriorated structures, and a ments, and ways to encourage large number of vacant lots and job creation and community derelict buildings. The corridors ownership. Finally, the city asked contai n numerous marginal busi- the panel to suggest the plan- nesses, such as liquor stores, ning tools and incentives that check cashing facilities, and over- will be necessary and to outline priced convenience marts that a process for achieving the ob- exploit community residents. jectives, including a description Many of these businesses suf- of the roles of HPPD, the city fered serious damage during planning department, and the the ri ots. Community Redevelopment These commercial corridors, Agency (CRA). which are surrounded by fa irly Eleven panel members and stable residential neighborhoods, two ULI staff members were se- represent thousands of acres lected to accomplish this week- of underused land that the city long study, with the panelists would like to put to more pro- donating their time on behalf ductive uses-ones that could of ULI and the citizens and city resu lt in needed jobs, housing of Los Angeles. The HPPD gave opportunities, and services to the panelists extensive back- the community. ground materials, briefed the The city asked the ULI panel panel on its assignment, and to focus its report on a single conducted a tour of the Vermont corridor-Vermont Avenue be- Avenue corridor and the South tween Century Boulevard and Central area. To gain additional Martin Luther King Boulevard- insights, the panel interviewed and to develop proposals and numerous neighborhood, non- strategies that might also serve profit, governmental, and busi- as models for the revitalization ness representatives. This report of other commercial streets in documents the panel's findings the area. Specifically, the city and recommendations. wanted to know the amount and type of commercial development that should exist along Vermont FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

S UMMARY OF The recommended plan RECOMMENDATIONS concept for the Ve rmont Avenue corridor involves concentrating First and foremost. the panel retail development at key in te r~ believes that South Central Los sections, introducing m i xed ~ u se Angeles needs to be recognized projects, and eventually re pl ac~ as an area of urgent regional ing much of the existing strip importa nce. The community' s commerci al development with vi tality-or lack of it-exerts a resident ial units. Th e panel regionwide influence on the hopes that its reco mm e n da~ co m ~ convention business, on tions will help Ve rmont Avenue pany relocations and startups, become an asset that will assist and on the avai lability of new in defi ning the surrounding job opportunities. neighborhoods. giving these The panel emphasizes that neighborhoods a sense of place. planning must be based on a The definition of neighborhoods co mmunity~ based proc~ strong, must be aided by the addition ge n ~ ess-that is, on a process of public investment in schools, erated from the ci tizens up, not parks, libraries, and other co m ~ rev i ta li ~ from the top down. The munity services. And, to reinforce zation process should involve, the neighborhoods' stability, the poss i ~ to the maximum extent panel strongly endorses efforts comm u n ity~ ble. companies, to offer programs that facilitate based organizations. and citizens and sustain homeownership. within t he community. Thus, The panel believes that the the panel's recommendations provision of additional needed represent potential solutions co mmun ity~based services is that should be discussed and, essential to the revitaliza tion if necessary, refined at the of South Central Los Angeles g rass ~ roo ts leve l. in general and of the Vermont The panel's report and ap~ Avenue corridor in particular. proach are based on investment (An example of such a needed opportunities, not on benevo~ servi ce is the planned Co mm u~ lent contributions. The market nity Finance Resource Center, in South Central is enormous. which incl udes a multibank CDC. The panel suggests ways that Th e mult i ba nk CDC was the fo r~pro fi t. public, and nonprofi t subject of a previous ULI panel.) en tities ca n participate in tap~ Basic public services to the South ping t hat market and in rev i ta l ~ Central area, such as public izing th e community. sa fety and street mai ntenance, must be increased and improved.

9 OVERVIEW OF ISSUES AND OPPORTUNITIES

AREA DESCRIPTION

The panel was asked to study the segment of Vermont Avenue between Martin Luther King Bouleva rd to the north and Century Boulevard to the south. Vermont Avenue is a north/ south arterial street located Tfte panel on totu in Soutft within the South Central Los Central Los Angeles. Angeles Community Plan Area, as designated by the city's ge n ~ eral plan. The South Central Com~ munity Plan Area-bounded by Pico Bouleva rd to the north, I 20th Street to the south, Van Ness Avenue to the west, and Several efforts that are now • Reorganize the city gove rn ~ Broadway to the east-comprises. underway should be e n co ur~ ment to concentrate all eco~ 9,898 acres ( 15.5 square miles) aged. The panel commends the nomic development activities and has a population of ap~ outreach efforts of Reb uild Los within one department and proximately 250,000. Angeles (RLA). both to e n co ur~ al l housing activities within South Cent ral Los Angeles age companies to invest in South one department. consists of l ow~ d e n s ity residen- Central Los Angeles and to guide • Use a va riety of development tial neighborh oods of s in g l e~ these companies in locating prop- tools and techniques to st imu ~ family homes on small lots, with erly within and relating to the late and facilitate desired out~ some small multifa mily deve l ~ com munity. The panel strongly comes on Ve rmont Avenu e. opments. bisected by suburban endorses efforts by the p ri vate • Identify and use the wide style strip commercial corridors. sector to provide job oppo rtuni ~ va riety of financing sources Most of the commercial devel ~ ties for the citizens of South availabl e. opment is old, in serious disre- Central Los Angeles. (For exam- Overa ll, the panel believes pair, and interspersed with vacan ple, Shell Oil plans to establish that the city needs to be much lots and boarded-up structures a training center in the area .) better organized to be able to im~ Uses are often incongru ent, and And the panel supports plement any plan, and that that most economic activity consists the concept of targeting and orga nization must be achieved of highway~ or i e nted small busi concentrating the initial efforts on an interagency basis. The city nesses. Few public or private to demonstrate successes that must become proactive rather community services are avail,· can be expanded and duplicated. than reactive; it must provide able, except for t hose provided No matter what plan is incentives rather than d i s in ce n ~ by the area's many storefront adopted, the key to success will tives. A shift into positive, e ffec~ churches. be the plan's implementation. tive action is long overdue and Incomes are low. In 1990, The panel suggests several spe~ will require energized, highly the median fam ily income in cific actions that the city should motivated leadership. When it South Central Los Angeles wa! take to revitalize Vermont Ave ~ becomes evident that the city S 19.382, compa red with a city~ nue and the South Cen tral area: is truly committed to a we ll ~ wide median of $30,925. In 199( • Institute a co mmunity~ based conceived, realistic plan for the over 40 percent of the popula- planning process. revita lization of South Ce ntral tion over the age of 16 was no Los Angeles, private sector in the labor force. commercial and residential investment will follow.

10 Study Area Study Corridor

CENTRAL CITY NORTH

- MA~TIN LUTHER KING, JR., BLVD. -U) ~ ::1 ~ < I z VERNON AVE. Dzl- ·o VERNON <- t:li 1- 1-;:W ~ U)92 ::::i w<- u ;: CD~ 'iC SLAUSON AVE. HUNTINGTON PARK

FLOREN CE AVE.

D 0

~w _J ~z

103rd ST.

LYNWOOD

120th ST. ..J ~ WILLOWBROOK ~ L.A. COUNTY w (.,_)

STUDY AREA

II Home prices are surpris- • Large Labor Pool. The work- ingly high. In 1990, the median force is eager and willing to home price in South Central seek opportunities for self- was$ 121 ,291 (less than half of improvement; inventive entre- the citywide median of $244,506). preneurial ideas are spawned As a result. most of the hous- by the necessity to survive in ing (67 percent) is rented. and the face of nearly insurmount- one-quarter of the units are able diffi cu lties. severely overcrowded.' In 1990. • Proximity to Development An­ Gary SqtJier. genera/manager 58 percent of the renters and 34 chors. The corridor is located of tf1e city's housing preserva­ percent of the homeowners in ASSETS near downtown Los Angeles tion and production depart­ South Central Los Angeles spent and even closer to the Un i- ment. 6rie{s tr1e panel. more than 30 percent of their The assets that contribute ve rsity of Southern Ca lifor- incomes on rent. to South Central Los Angeles's nia (USC) and the Coli- The area is ethnically di- revitalization potential include: seum/Exhibition Park verse. and the mix is changing • Existing Capacity for Comm unity­ complex. Both of these re- rapidly. In 1980, 67.2 percent Based Development. Perhaps sources offer opportunities of South Central Los Angeles's the strongest asset in this for joint development and population was Africa n-Ameri- community is the bu rgeon- job creation that should be can; by 1990, that proportion ing network of community more ful ly explored. had dropped to 44 pe rce nt. development organizations. • Base of Single-Fa mily Homeown­ Latinos constituted only 13.7 ma ny with demonstrated ers. Several distinct single-fam- percent of the 1980 population; project development exper- ily home enclaves. such as today, they represent 51 percent. tise. Organizations like the Vermont Knolls on the west Many of the businesses within Vermont!Siauson Economic side of the corridor. are stable South Central are owned by Development Corporation. anchors that can attract new Asian-Ameri cans who reside Concerned Citizens homeowners to the area. elsewhere. of South Central Los Angeles. • Publicly Owned Rights-of-Way To determine what could and the Coalition of Minority and Parking Lots. At Gage be accomplished in South Cen- Developers-working both Avenue, where the Vermont tral Los Angeles. the panel first individually and in their new corridor widens to boulevard sought to understand the area's collaboration with the Loca l width. large publicly owned strengths. weaknesses, and op- Initiatives Support Corpora- parki ng lots are located be- portunities and then to identify tion (LISC) in the Coalition hind the commercial lots fac- the threats that. if not mitigated. of Neighborh ood Develop- in g the east side of Vermont would limit the realization of ment (CN D)- embody the Aven ue. Creative reuse of this those opportunities. tremendous desire for posi- space could offer tremendous tive change in the Vermont opportunities for reorienting corridor area. th e streetscape, calming the • Pop ulation Density. About traffic flows. and assembling 250,000 people live in the I. Only 5 percent of the hous- development parcels of a ing stock is severely overcrowded city- study area. at a density of proper dimension to support wide. Housing is considered severely over 15.000 per sq uare new commercial and res iden- overcrowded when a unit houses mile- more than tw ice the tial projects. more than I.5 1 persons per room. city average. The sheer size and density of the area are tremendous development assets. and the untapped market power the area represents is enormous. ~.... ---- .. OSINGLE-FAMILY RESIDENTIAL MULf iRESIDENfiAL • OFFICE • REfAI L INSTITUTIONAL/ PUBLIC/MIXED USE • OPEN SPACE LIABILITIES

The area's liabilities are also great. In the aftermath of the civil disturbances. signifi - ca nt gang activity, drug activity, and crime still exist and consti- tute seri ous deterrents to the high level of private investment that will be required to revital- ize South Central Los Angeles. Other liabilities include: • Fragmented Landownership . Sma ll. narrow development parcels are characteristic of the corridor area. Coupled with multiple ownership patterns. this fragmentation makes assembly of land for even middle-sized projects or activities quite difficult. • Inappropriate and Incompatible Land Uses. The undifferenti- ated commercial zoning of the corridor has resulted in a concentration of undesirable uses. particularly liquor stores, swap meets, and gun shops. The corridor also fea- tures numerous auto repair shops and "hot sheet" mo- tels that are incompatible with higher-quality commer- cia l or residential uses. • Genera l Visual Disorder and Cfiaos. The corridor is plagued

with deteriorated commercial w structures, poorly mai ntained Dz facades, eclectic signage, and <2: ~ intermittent lighting. This 0z visual clutter conveys a seedy, disordered impression. • Inadequate City Services . Broken street lights. trash-strewn lots, street litter. and poorly maintained sidewalks and streets further contribute to EXISTING LAND USE the depressed quality of the area.

13 lses such as movie tfreaters 1 ave moved out of Soutfr :en tral Los Angeles . Here, former tfreater on Vermont c .ve11ue 11ow houses a churdr t 11d related social services. • High Land Prices. Quoted land pri ces. which range from $ 12 c to $25 per square foot in a t market with re latively low ( sales volume. indicate that speculators are holding land in the area. • Few Public Facilities. The area has few visible public facili- OPPORTUNITIES South Central community resi - ties, such as libraries, recrea- dents collectively generate some tion centers. parks. or green The time is ripe to coordi- $ 1 billion in purchas ing power spaces, that provide evidence nate and leverage the existing ca- per yea r. Providing the commu- of civic investment. Such fa- pacity for community-controlled nity with higher-quality retail cilities also serve as impor- economic revitalization. Orga ni- products and new, more acces- tant anchors for new commer- zations now exist. pro jects have sible services can recycle that cial and residential investment. been accomplished, and new money, create wealth, and aug- • Diffu se Public Sector Responsibility. projects are i n the pipeline. ment the purchasing power As currently organized, the Targeted investmen t of planning within the area. city government has four ma- resources and technical assis- The demographics of the jor departments with signifi- tance today will enable these existing single-family neighbor- can t overlapping responsi- organizations to plan effectively hoods indicate that there will bi lities servi ng the area. and for the fu ture of the community. be significa nt property transfers resources are scarce. Wh ile The public sector must encour- in these areas in the next dec- some initial steps have been age and support these efforts. ade as many homeowners reach taken toward better coordi- An extraordinary opportu- retirement age. To provide for nation of these efforts. diffu- nity exists to assemble land on their retirement. many of these sion of responsibility still rep- a scale that wi ll make a differ- homeowners will sell their homes resents a major impediment ence. Much land is publicly to obtain the home equity they to the city's effective partici- owned. The civil disturba nces have accumulated. Young fami- pation in the revitalization and the resulting property da m- lies, extended families. or multi- effort. age, though tragic. have created generational fam ilies will have Within city departments, an unprecedented chance to as- the opportunity to acq uire the the current system of regula- semble development parcels of homes vacated by older house- tions and procedures limits the the proper size and dimensions holds. The challenge will be to ci ty's ability to achieve any goal. for high-impact projects. These devise strategies to make this The panel was told, for example. opportunities should be seized valuable housing stock afford- that beca use of the cumber- for both public and private proj- able to families of modest means. some regu lations. it can take a ects of larger sca le. In addition. opportunities city department a yea r-and-a- The untapped existing pur- exist to strengthen the existing half simply to buy a computer. chasing power of the community stable residential fabric by intro- To enable the city to respond also represents a tremendous ducing new housing products effectively to the needs of its opportunity. Though individual and concentrated retail magnets. distressed neighborhoods, its household incomes are low, departments must be able to act quickly and decisively.

14 THREATS

As is often the case. the opportunities cited above are • Resista11ce to Higher De11sities. The tempered by threats t hat can panel has also found a resis- make effective revitalization tance to higher-density devel- First. if South Central's com- difficult to achieve. Some threats opments. While the panel un- munity-based organizations, to the revitalization of South derstands that a neighborhood local entrepreneurs. and resi- Central Los Angeles include: of one- or two-level, single- dents hold a significant equity • umd Speculatio11. Land specula- fami ly homes is characteristic stake in the economic devel- tion can be the flip side of ex- of Los Angeles and should opment of their community, pedited planning and of the be preserved to the maxi- a ri sing market will benefit perception that significant mum extent possible, panel the sitting population. positive change will occur as members believe strongly Second, for at least the "holdout" owners position that increased density-par- next three to five years. pub- themselves for windfall profits. ticularly at key intersections lic subsidy and support will • Relucta11ce to Use Co 11 dem11atio 11 and along the corridor at key be needed to stimulate private Power. Revitalization is more locations- cou ld improve a investment and attract equity difficult when the commu- project's financial feasibility capital to the community. nity resists the use of con- and enable the inclusion of Where public subsidies are demnation and other redevel- cri tically needed facilities provided, regu latory agree- opment tools for assembling and des ired amenities. Insis- ments can be negotiated to parcels and otherwise faci li- tence on low-density develop- inclu de resa le restrictions, tating public and private pro- ment along the entire corri- recapture agreements. and jects. His to rica lly, the rede- dor threatens opportunities rent increase limitations that velopment process has not for such amenity-rich proj- will keep new development always operated in the best ects. Community members affordable to lower- and interest of low-income com- must understand the trade- moderate-income popula- munities. Nonetheless. the offs involved and become ac- tions over the longer term. panel feels that residents and tive participants in project (Ma rket-rate developments business interests along the negotiations-particularly, that do not require subsidies Vermont Avenue corridor are in those ta lks involving rela- or incentives would not and su fficiently experienced and tionships between pro ject should not be subject to empowered to ensure that mass and amen ities, and such restrictions.) these tools are used only in project sca le and financial • Fear of Crimi11al Activity. ways that are consistent with viability. Finally, the ethnic tension the community's priorities. • Ge11tri{icalio11. Successfu l among Koreans, Latinos, and Reluctance to use the powers revitalization of the corridor African-Ameri ca ns and the of redevelopment fully will carries the threat of gentrifi- high level of gang activity and threaten and hamper the ef- cation, that is, of unaffordable crime threaten opportunities fectiveness of the revitaliza- price increases and the even- to revitalize the corridor. Re- tion effort. tual displacement of long- peatedly, community residents term. low- and moderate- have reported that they fear income residents. Th is is for their safety, especia lly particularly true in South after dark. A critical factor in Centra l because of its loca- calming these fears will be tion near downtown and other the success of the community development anchors. policing initiative undertaken While gentrification is by t he Los Angeles Police a theoretical possibility, the Depa rtment (LAPD) and of actuality can and should be the effective supplementary averted for two reasons. sel f-policing efforts made by the corridor's businesses and retail centers.

15 Although the Vermont Ave- Faced with a dearth of re- nue corridor has a large stock tai l shopping opportunit ies in of storefront space. the build- South Central, residents now ings are generally inadequate in travel more than 20 minutes quality or size to attract good both for the basic convenience retailers or consumers. Further- items stocked by supermarkets more. the physica l environment and for the comparison goods of the corridor is not "consumer- found in regional malls such as friendly." The sidewalks are Baldwin Hills/Crenshaw Shop- narrow. parking is inadequate, ping Center and Fox Hills Mall graffiti and debris clutter the in Culve r City. An assessment street, and traffic pattern s ca n of the competitive supply of re- be confusing. tai I outlets reveals that there is DEVELOPMENT POTENTIAL Operating retail stores are more than 2. 5 million square interspersed with vaca nt lots feet of retail space within rea- The panel assessed the and boarded-up buildings; this sonable shopping proximity to commercial/retail and residen- mix detracts from the viability South Central residents. tial development potentials of th e area as a retail ce n'ter. Existing land use policies within the area and suggested However, approximately 350,000 governing the Vermont Avenue prototypical development types square feet of viable. function- corridor make a market-based that might meet the identified ing retail space remains in the approach to revitalization ex- needs. study area since the rebellion. tremely difficul t. All development The most vibrant retail area in proposals must undergo a pro- COMMERCIAURETAIL Sou th Central Los Angeles is tracted permitting and discre- DEVELOPMENT POTENTIAL the Vermont-Slauson Shopping tionary review process that re- Center, where the amenities. sults in exorbitant holding costs. DETERMINANTS such as parking, security, and In a market area where develop- landscaping, and the concentra- ment risks are already high. the Retail development poten- tion of stores attract a significant additional cost and risk burden tial is determined by trade-area number of neighborhood resi- crea ted by land use policies dis- demographics (population den- dents and workers. courages new development. sities, disposable income. house- hold size, and so on), the com- petitive supply of retail outlets, Sound structures and vigor­ the amount and location of va - ous commercial activity char­ ca nt land zoned for commercial acterize portions of Vermont development, land use patterns Avenue. and policies. and land values. Each type of retail development (for instance, neighborhood cen- ter or regional retail mall) has unique development criteria. The So uth Central commu- nity's aggregate buying power is sufficient to support signifi- cant new retail development in the area. Most of the retail goods for South Central households are now purchased outside the community because t he area has few retail outlets and an inadequate supply of quality products at competitive prices.

16 Business is good at tf1e Vermont-Siauson Shopping Center. a securitized center developed by a nonprofit Mixed-Use Developments. community-based economic The panel recommends the in- developme11t corporatio 11 and troduction of mixed-use devel- a private developer. opments that provide two or three stories of residential units above ground-fl oor commercial space. This type of development wou ld serve severa l purposes: And finally, land values Neighborhood Retail Cen- It would stabilize the corridor along the Vermont Avenue cor- ters. Neighborhood centers gen- by increasing daytime and night- ridor are too high to attract new erally provide convenience goods time population/ generate ad- retail development. Retail land and services-items for which ditional demand for new retail prices along Vermont Avenue accessibility ranks among the development; provide housing average $25 per square foot, com- most important factors deter- for intergenerational households pared with $4 to S1 2 for land in mining wh ere the purchase is (such as seniors ca ring for grand- outlying suburbs. Real estate made. Typica lly, a convenience ch ildren) that require nearby brokers and developers inter- center is 50,000 to 125,000 square services; and replace deterio- viewed by the panel believe that feet in size; draws from a market rated commercial stock or under- these asking prices are not jus- area with approximately a one- used parcels with viable land tified by the parcels' cu rrent or to two-mile radius; contai ns one uses. Such development would future economic va lue. Hence. or two large anchors. such as a also encourage the community few transactions occur. Realign- grocery or a drugstore. occupy- control, ownership, and occu- ment of asking price to economic ing 30,000 to 80,000 square feet; pancy that are important ele- value would help spur interest and includes smaller stores that ments in the renewal and pres- in commercial development might feature apparel, shoes, ervation of South Central and rev italize the Vermont gifts, or personal services. Los Angeles. Avenue corridor. Successfu l neighborhood Successful mixed-use proj- centers have a high-quality an- ects require a critical mass . or PROTOTYPE RETAIL chor or anchors, a compatible density, that generates econo- DEVELOPMENTS and synergistic tenant mix, and mies of scale in production and ample amenities. especially thus enables developers to pro- Given the significant supply parking, security, and landscap- vide higher-quality product and of competitive regional retail ing. New neighborhood centers amenities. The panel recom- malls and the lack of large, vacant in South Central Los Angeles mends developing prototypes parcels of contiguous retail land could serve the strong, unmet de- that specify minimum project along the Vermont corridor, the mand for retail and commercial sizes and maximum densities. panel feels that the most viable uses, such as sit-down family Generating acceptance for higher strategy for attracting quality resta urants. apparel and shoes, densities from potential new retailers is to develop neighbor- specialty shops, financial insti- occupants and existing single- hood-serving convenience ce n- tutions, and personal services family neighbors would like ly ters. mixed-use projects, and (laundromats/dry cleaners, travel require the incl usion of signifi - small business incubators. Al- agencies, notary publics, and can t amenities-open space. though free-standing or large the like). The centers might recreational faci lities, meeting warehouse stores and other re- also include recreational uses- rooms, daycare centers, and so tail uses that typically locate in skating rinks, bowling alleys, forth-for both tenants and "power" centers could be sup- movie theaters, video arcades- neighbors. ported by the trade area's ag- and health care or daycare fa - gregate disposable income, the ci lities that are also needed in corridor lacks a location with the community and that would sufficient land area for this type draw shoppers to the cen ter. 2. Studies indicate that increas- of center. ing the density of civic activity and pedestrian traffic is a key element of crime reduction through self-policing.

17 In tf1is helicopter view. tfte section of Vermont Avenue sftown on tfte far rigftt ftas six lanes plus access lan es. and is lined witft automobile­ related uses. Nearby residen­ tial areas appear sound and well kept.

years as businesses grow. Estab- lished firms move out of the in- cubator in three to five yea rs. providing space for new embry- onic businesses. Ensuring re- placement space for fl edgling businesses as they move out is important. Incubators offer the same positive attributes as swap meets: flexible shell space and low rent. Also. because they are commu- nity-own ed. they mitigate the Until market acceptance of Business/Retail incubators. perceived negative factors of this new product for the area has Th e panel recommends the de- poor-quality products and non- been firmly established. the units velopment of two types of incu- resident ownership. Most of the should be targeted as mixed- bators. One type would be a successful business incubators income rental housing with the business/retail incubator to in- in t he country are developed. possibility of conversion to crease retail and business own- owned. and managed by com- condomin ium ownership. As ership opportunities for loca l munity-based nonprofits or by condominium-ownership units, residents, to enhance the multi- partnerships of community de- this type of product would pro- plier impact of retail expendi- velopment corporations (CDCs) vide excellent homeown ership tures, and to recycle local in- with public or private entities. opportunities for first-time, come back into the community. Successful models can be found low- and moderate-income Capturing a larger portion of in San Francisco, Dallas. and homebuyers. the $ 1 billion spent annually Philadelphia. . A mixed-use development by community residents could The panel recommends should include a minimum of expand the job opportunities the development of a business/ 5.000 square feet of retail space. within South Central and raise retail incubator near an estab- Ideally, a pro ject would be large the incomes of local residents. lished neighborhood shopping enough to incl ude an anchor A business incubator nour- center. enabling the incubator such as a grocery store, though ishes and protects locally owned to benefi t from the high visibil- it may be difficu lt to assemble start-up businesses by providing ity and established consumer enough land for this purpose business development training traffic generated by the center. on Vermont Avenue. Retail uses and on-site management assis- For example. a site nea r the compatible wit h mixed-use de- tance (joint marketing, loan pack- Vermont-Siauson Shopping Cen- velopments include specialty aging. financial management. ter would be an excellent loca- food items (high-end produce. shared support services) in a tion. The average size of a retail ethnic foods, fresh meats and fl exible and low-cost shell space business incubator is approxi- fish) and personal services. that requires minimum tenant mately 15.000 square feet. improvements. Business incu- bators usually charge graduated rents beginning at below-market rates and increasing over the

18 RESIDENTIAL DEVELOPMENT POTENTIAL

DETERM INANTS

Los Angeles and California as a whole are experiencing a severe shortage of affordable housing, but the problem is Another type of business especially acute in low-income incubator that should be encour- communities such as South aged is one that could function Central Los Angeles. In 1990, as a demonstration project for the median home price in South local business development and Central was over S 120,000, af- Th e city of Los Angeles's employment generation in light fordable only to families of four Comprehensive Housing Afford - manufacturing, construction, and with household incomes greater ability Strategy (CHAS) indicates service trades. Several exemplary than $45,000. Given the 1990 that. to accommodate modest private sector initiatives for em- median household income projections of population growth, ployment generation are now in the area (just over $19,000). the city needs 14,000 new hous- underway in these business homeownership for most South ing units annually, citywide. A sectors. For example, Southern Central residents remains sim- major constraint to meeting this Ed ison Electric Company is cur- ply a dream . goal cou ld be the shortage of rently providing training in weath- In addition. many South developable land zoned for resi- erization for individuals from the Central Los Angeles residents dential uses. as many neighbor- public housing pro jects. After suffer overcrowding, occupy sub- hoods in Los Angeles are com- the training is completed, South- standard and dilapidated struc- pletely developed. But in South ern Edison will hire the individu- tures, or live in garages that have Central. only 71 percent of the als to weatherize their housing been converted into family units. residential land is developed. developments. Similarly, Vidal South Central's predominant Assuming that residential Sasseen is training South Cen- t)rpe of housing stock-old, small, development to meet the total tral res idents in haircutting and single-family units-does not citywide housing need is distrib- salon services and is assisting address the growing demand uted within all neighborhoods them in starting their own busi- for unconventional housing based on population, approxi- nesses. Other corporate spon- design that can accommodate mately I ,000 new units will be sors could be tapped to provide new types of households. such needed annually in South Cen- similar services. as large or extended families. tral. As discussed below, some of these new housing units could be provided in South Central by Ge11erally stable reside111ial rehabilitating existing vacant 11eigfJborhoods surrou11d tfte and dilapidated units. provid- Vermo11t Ave11ue corridor. ing incentives for developing mixed-use projects, and encour- aging single- and multifamily residential development along the commercial corridors.

19 Terry Sch nadelbach shows Deteriorated units on other-· a preliminary design concept wfrile team member Ray wise stable streets offer oppor- Brown looks on. tunities for the construction of ( owner-occupied two-fami ly units. F Care must be taken to ensure that, in scale and character. these RESIDENTIAL PROTOTYPES un its mirror the size and tradi- ( tional architectural qualities t The panel recommends of the existing neighborhood that the community work with homes. Consultation with neigh- the ci ty to develop design/build Larger multifamily develop- boring property owners would prototype units that respond to ments might be located adjacent likely be required to ga in accep- unique community needs and to services and facil ities needed tance of this prototype. neighborhood characteristics. by families, such as schools. day- Refurbished Single-Family The city could preapprove the care centers. and recreational Stock. Well-established resi- units for bu ilding permits in the facil ities. The average fam ily size dential neighborhoods exist in targeted area. Preapproval of in South Cen tral is 3.5 people, several areas adjacent to the prototypes would greatly con- indicating a need for more units Vermont Avenue corridor. Sta- tribute to the provision of afford- with three to five bedrooms. tistics show stable ownership able housing by reducing permit- These larger units would be wel- patterns in these areas, with ting fees. architectural service comed by existing residents who steady, though low, turnover. fees, and holding costs. The live in overcrowded conditions However, the current economic model development could be and by the growing number of recess ion and the advancing coordinated through the Los extended and intergenerational age of the homeowners in this Angeles Museum of Contempo- families. area may threaten the relative rary Art (LAMOCA) Architects' While the car-dependent stability of these neighborhoods. Model Housing program. The lifestyle of Los Angeles requires Signs that point to some in- panel suggests the following that adequate parking be pro- creased pressure are already residential prototypes: vided in residential develop- evident: a poorly maintained Multifa mily Rental Apart- ments. the panel recommends house on an otherwise well- ments. The panel recommends that strategies be explored to maintained street, clusters of th at multifamily renta l apart- reduce the burden of providing for-sale signs, a yard not as well ments between two and three parkin g. Strategies to address mainta ined as others nearby. stories in height be encouraged the significant cost of providing Because the housing stock along the Vermont Avenue cor- totally or partially underground is such a significant resource. the ridor between the new commer- parking might be to increase al- pa nel recommends that the ci ty cial nodes. These developments lowable bu ilding heights or to continue to commit a fai r allo- could be six to 100 units in size, lower req uired parking ratios in ca tion of its 1992-1993 HOME depending on the available land. areas with nearby public trans- rehabilitation program fu nds to Small projects could serve to portation. South Central Los Angeles "infill" the narrower lots. Proto- Owner-Occupied Two- homeowners. Equity-release types for this kind of develop- Family Un its. Duplexes- hous- mortgages might also be ex- ment have been built by Con- ing types that provide both a plored as a means of facil itating cerned Citizens of South Central home and a rental unit for an an orderly transfer of ownership Los Angeles (on Central Avenue) owner-occupant family-are not from older property owners to and by the CDC associated with characteristic of southern Cali- younger fam ilies. the Ward AME Ch urch. forn ia. Nonetheless, because duplexes offer moderate-income families an opportunity to accu- mulate significant homeowner- sh ip equity, this prototype is an attractive option within the study area.

20 PLANNING AND DESIGN Livable neighborhoods in- clude neighborhood commer- GENERAL COMMUNITY cial centers that provide basic, PLANNING CONSIDERATIONS everyday needs and a gathering The pa nel's recommended place or foca l point for neigh- The neighborhood should community design scheme has borhood activities. These and be clean and attractive. The been derived directly from the other public places that provide visua l image of a neighborhood ideas of South Central commu- opportunities for chance en- nity residents. who eloquently is the most important factor in counters and for the exchange of and passionately described determining how that neighbor- social interaction in safe. con- their vision. hood is perceived both by its vivial surrou ndings facilitate residents and by others. Neigh- The vision articulated by good neighboring. borhoods tha t are visually or- the residents of South Central Planning for commercia l derl y, fu nctionally convenient, Los Angeles was that of a com- development must consider the munity like any other-one and well maintained offer a pleas- need to create job opportunities. that provides the fundamental ant living environment and pro- encou rage minority entrepreneur- elements req uired to ensure a ject an image of stability and ship, and support local owner- reasonable quality of life for its va lue. In South Central Los An- ship of small businesses within families, including: geles. the city needs to mobilize the community. the municipal and neighborhood • Access to locally available Good neighborhoods offer resources necessary to get rid employment that would en- services that are needed by their of the debris. repair the streets able pa rents to support their residents; functional and well- and sidewalks. replace the lights. children without depri va tion. located community facil ities for and collect the garbage. In short. • Housing constru cted and youth groups, daycare centers. mainta ined to be affordable. it must maintain the community medical services. libraries. secu- safe. and healthy. to the sa me standard enjoyed ri ty functions. and recreational by more affluent neighborhoods. • For people of all ages. edu- activities add to the quality of And the community needs open cational opportunities that daily life. Th e city, worki ng with space, trees, flowerbeds. and would enable them to com- the community, needs to save green space-plantings wherever the next generation by some pete successfu lly for employ- they ca n be grown. As one pan- cooperative effort and by strong ment in an increasingly com- elist noted, "It's hard to grow action to reinforce the commu- plex society. up on concrete streets and not nity, its va lues. its schools. and • Opportunities to build eco- fee l mean." its sense of itself. nomic security, including the chance to start and run a successfu l business. Piles of accumulated garbage contribute to t(te run-dow11 • Equitable delivery of basic appeara11ce of the comntullity. public services. such as police protection, street mainte- nance. and trash pickup. • Clean. sa fe streets. pa rks. and neighborhoods. • An opportunity to foster a belief in a more positive fu - ture for the children and to get on wi th the business of living the Ameri ca n dream.

21 THE VERMONT AVENUE To the sides of the street CORRIDOR are remnants of service lanes that were once used to slow traf- Vermont Avenue is a north/ fic and to provide parking and south arterial that is typical of delivery space. These areas have the major streets that organize become repositories for trash To that end, the panel rec- Los Angeles in an even-textured, and litter and add to t he de- ommends that the city provide one-mile grid pattern. It provides graded appearance of the area. youth-oriented athletic fields for easy mobility through South The Vermont Avenue corri- soccer, baseball, basketball, and Central and, like the other arte- dor includes some good retail football, where appropriate to rials in South Central, serves as development and is surrounded meet the needs identified by the a business and transportation by much sound housing stock. residents. Ideally, these faci lities corridor, defines the surround- Neighborhoods east and west of should be developed in conjunc- ing neighborhoods, and links Vermont Avenue are connected tion with the public schools, and various subareas of the commu- by cross-streets such as Slauson their use should include youth nity. By connecting the several Avenue, Martin Luther King sports programs mentored by neighborhoods on either side. Boulevard, Century Bouleva rd , Los Angeles-area professional Vermont Avenue also serves as and Manchester Avenue; much athletes. a social center-a kind of public of the community's traffic flows Where required. new schools living room where people in the in an east/west direction. espe- should be constructed to meet community can come together. cially on Slauson and Manches- the needs of the neighborhood Vermont Avenue is unique ter. These two streets tie into the population. Existing schools, in that the street itself is divided Harbor Freeway and also offer particularly the Manual Arts High into two physical spaces that access to nearby cities, to the School, should be expanded and are quite different from one airport. and to ad jacent job op- upgraded. including the addition another: North of Gage Avenue, portunities for the community. of programs targeted to at-risk Vermont is a typical. 80-foot- The Vermont Avenue corri- students. The neighborhood wide street with ten-foot side- dor is not a homogeneous place. schools need the resources to walks, lined with a continuous Though there is a consistent pat- become year-round, full-day wal lfront of commercial build- tern of disinvestment, damage ed ucation centers serving the ings; south of Gage to Century from the civil disturbance. and entire neighborhood popula- Boulevard, it widens to 180 feet deterioration along the corridor, tion. Programs should include of concrete and is lined by an ir- severa l distinct areas can be adult education, job training, regular facade of buildings that identified . In redesigning use of Head Start. and daycare. creates an uneven urban texture. the street, these areas ca n be Three lanes of traffic flow in each strengthened to create a series directio n, divided by a large, of neighborhoods with concen- mostly concrete median space trations of neighborhood-serving dedicated to turning movements. retail and other cri tical services The visual impression is of hard at key intersections. surfaces softened only by an occasional. lone tree.

22 SUGGESTED PHYSICAL PLANNING OPPORTUNITIES

NARROW VERMONT SOUTH OF GAGE

The panel suggests that Vermont Avenue in a new form could be less of a transporta- t ion co rridor and more of a pedestrian-oriented community Tf1 e pa nel recommends nar­ spine, to integrate more effec- rowing rfle excessivelv wide portion of Vermont Avenue tively the communities on its and using tf1e resulting new east and west sides. To achieve space fo r parkland or 11 ew this new form, the panel recom- commercia l or residential mends continuation of the 80- development. foot street form from the north- ern section of Vermont Avenue south beyond Gage, thereby creating a space sout h of Gage Rendering illustratin g Avenue that would be continu- panel's recommendation. ous with and aligned with Ver- mont's northern segment. The street should be lined with trees, should faci litate pedestrian cir- culation, and should offer on- street parallel parking. This narrowing project would provide 85 feet of new space that would give a new image to the community; opportunities would be created to expand existing commerci al or residential activi- ties or, alternatively, to develop community-oriented green space. In the aggregate. narrowing Vermont Avenue south of Gage Avenue would create more than six acres of linear parkland along the street that could serve as green "living rooms" for the .I communities on either side of Vermont.

23 MIXED USE • PRIMARILY COMMERCIAL • PRIMARILY RESIDENTIAL • OPEN SPACE/PUBLIC USE

PROPOSED LAND USE MAP

?11 ~)> c (f) 0z )>

25 Mixed-use developments witli apartments over grou nd­ level retail can enliven tf1e street wf1ile providi11g addi­ tional needed fwusing . ------

DEVELOP A NEW HEART FOR Such development would stabi- • Retail stores and services to VERMONT AVEN UE lize and build upon the existing meet everyday local needs, viable, dynamic commercial including family restaurants. The panel suggests several center. The business incubator • Housing on the upper level, ideas to improve the heart, or could be physica lly and function- including for-sale, mixed- core, of Vermont Avenue between ally tied to the nearby school income townhouses and apart- Slauson and Manchester. First, and commercial spaces and ments built around an en- it recommends that neighbor- could provide such services as closed area of private, resident hood-serving commercial devel- daycare, youth jobs programs, open space. These units would opments be conce ntrated at and teen pregnancy ca re. include an attractive amen- the intersections of Vermont At the intersection of Ver- ity package and 24-hour with Slauson Avenue and with mont and Manchester, the panel security. Manchester Avenue. suggests the creation of a "town At the intersection of Ve r- ce nter" that would be the sym- mont and Slauson, the panel rec- bolic heart of the community. ommends additional community- This center would be developed serving retail and commercial as a large, integrated, master- development and the creation planned pro ject of a Planned of new incubator commercial Unit Development type, and activity to support business de- would contain: velopment and to generate jobs.

26 • Transportation, through a multinoclal interchange at this location. The transportation hub would serve major ci ty bus routes and local bus loops that circulate within the com- munity, tying together schools With these activities in place, and community services. Pro- additional retail activity would posed electric trolley servi ce be attracted to this location. along Vermont Aven ue and Between the recommended Th e result along the heart light-rail service along Man- new commerci al centers. new of Verm ont Aven ue would be chester could also feed into development could consist of low- two nodes of largely commercial this tran sportation hub. An rise infill multifamily housing, spaces linked by green space and information kiosk and shel- local-serving retail uses. and by housing. The two linked nodes tered bus stops should be in- mixed-use commercial and resi- would yield an image of a place cl uded in the transportation dential developments. Housing that is safe and clean. fun to center's plan. design should help defin e the live in , and good for raising • A civic town hall containing street space and provide addi- families or enjoying neighbors. offices for the area's city coun- tional supervi sion of the street. Finally, the vacant former cil members and staff, ci ty Specifically, new green open Pepperdine College administra- department staffs that are space. as suggested above, would tive building presents an unusual designated to serve South tie node to node. intersection development opportunity. If re- Central. and certain service to intersection. and would give developed as a theater. it could providers. such as building a new image to the neighbor- anchor an entertainment area and sa fety inspectors and hood. Additional street land- that might feature additional home improvement advisers. scaping would further encour- theaters. specialty restauran ts. Locating these offi ces within age pedestrian activity; create and festival places that would the community would faci li- a cl eaner, greener image; and be accessible by public trans- tate interagency exchange and "ca lm" the traffic. portation. cooperation on matters relat- ing to South Centra l Los An- Tf1e pa 11el's proposed "tow11 geles and would improve pub- ce11ter' would i11clude pufJiic lic access to governmental ope11 space surrow1ded fJy services. The civic center could gover11me11 tal. retail. a11d also conta in a community- reside111ial uses. based police station, library, post office, offi ces for neigh- borhood groups, meeting rooms for community meet- ings, drop-in youth counsel- ing centers, and so forth . The center should be located and designed to provide a major public plaza that is highly vis- ible from the street and from the upper-level housing. The plaza would be used for festi- vals, exhibitions. and perform- ances and as a location to celebrate the rich cultura l diversity of the community.

27 DEFI NE AND STRENGTHEN EXISTING RESIDENTIAL AREAS

Planning for the corridor uses must consider potential effects on surrounding neigh- borhoods. For example, the rec- ommended mixed-use retail/ residential pro jects should be designed to respect the physi- cal scale of the su rrounding community. Through landscaping, pav- ing, and lighting, a series of mi- 'he panel suggests tf1at the croneighborhoods could be cre- ww-vacant former Pepperdine ated between and behind the :allege administration build­ major arterial streets. Micro- ng become the focal point neighborhoods would enhance vithin a theater/dininglenter­ the unique identities of smaller ainment dis trict along Ver­ areas and would .foster a sense of non! Avenue. ownership and belonging. Sub- standard housing should be se- lectively demolished to create open spaces within each micro- neighborhood. and, where appro- priate, small-scale infill housing Rendering of proposed arts should be constructed to in- 1nd entertainment district. crease the number of units avail- able. Each microneighborhood should be well lit to enhance security and should include ba- sic amenities to encourage a sense of community ownership and pride. The city should seek to at- tract a more mixed-income popu- lation by encouraging the provi- sion of a greater range of housing options. This will require: • Reducing parki ng requirements for multifamily housing. • Giving density allowances for residential projects with significant amenities, such as recreational facilities. in- creased unit size, open space, and/or community space. • Writing explici t design guide- lines for signage, facade qual- ity, setbacks, and consistency with upgraded neighborhood standards.

28 • Providing for alternative de- sign configurations. such as zero lot line, townhouses, and owner-occupied two-family units, that increase density without disrupting the low- rise character of the neigh- borhood. • Providing for smaller-scale A COMMUNITY-BASED THE CURRENT SITUATION Planned Unit Development PLANNING PROCESS (PUD) zoning to facilitate co- Effective commercial and hesive development pattern s. Plans for the future of Ver- residential development strate- Residential design stand- mont Avenue must be based gies must begin with a reformu- ards must be realistic and should on a vision for the future of the lation of the comprehensive plan reflect the current building tech- larger South Central Los Angeles and zon ing legislation for South nologies and cost-effective prod- community. Ideally, a commu- Central. Th e current community nity plan is formulated with the ucts that can be used to create plan for South Central Los An- high-quality, attractive. yet afford- community as an integral partner geles was adopted 17 years ago. able housing. The integrity of ex- in the planning process. When In fact. most of the city's com- isting residential neighborhoods people have the opportunity to munity plans are as old and need can be bolstered by an insistence share in the decisions that affect updating and revision to reflect their dai ly lives, they feel an own- on quality in amenities and con- the tremendous changes that struction (including interior fin- ership in the results and a sense the city has experienced over ishes) for all new residential and of control over their own desti- the years. rehabilitated development. nies. This can reduce intercul- Virtually every development To achieve a new vision tural tensions and eliminate a project. rega rdless of size. must for Vermont Avenue and for major source of frustration and undergo a time-consuming, South Central Los Angeles. the socia l unrest. Also, people tend politica lly contentious, and very city can and must pursue sev- to ca re for their neighborhoods costly discretionary review proc- when they feel a sense of own- eral initiatives: ess. The Los Angeles review and ership, pride, and connection • Institute a community-based approval process is legendary for its arbitrary application of planning process. with them. Thus, the revitalization of regulations and exactions, vulner- • Reorganize the city govern - the Vermont Avenue corridor ability to Not-In-My-Back-Yard ment to concentrate all eco- nomic development activi- must be part of an overall vision (NIMBY) pressures, and long for the future of South Central delays ca used by redesigns and ties in one department and Los Angeles, as articulated in a endless negotiations. Many all housing activities in one new. community-based plan. projects. especially the smaller, department. • Use a variety of tools and tightly budgeted projects that techniques to stimulate the are typical of the majority of developments in South Central, desired outcomes on Ver- ca nnot afford the cost and de- mont Avenue. lay associated with this process. • Identify and make available Applied throughout the city. this a wide variety of financing expensive and un predictable resources. process helps to explain why Los Angeles has difficulty com- peting in th e field of economic development. A BROAD BASE OF SUPPORT The Ad Hoc Committee on Recovery and Revitalization urges the development of neighbor- The cost of undertaking com- 2) The city departments having hood and target area plans pre- munity plan revisions, coupled ju risdiction over planning, pared jointly by relevant public with the restructuring of city de- permitting, regulating, fund- agencies, community-based or- partments as suggested later in ing, and assisting community ganizations, and Rebuild Los this report, would be returned and economic development Angeles (RLA). The panel whole- many times by making the city projects should be located heartedly endorses this recom- a more serious contender for within the community. There, mendation. A planning process economic development at all they can work beside and in- based on the neighborhood's levels-€specially in its inner city. teract with the community va lues and community consen- While it is not possible to on a day-to-day basis to ac- sus would give the community eliminate all conflicts and delays, complish the objectives of the real ownership of the plan and the panel believes that these plan. The panel's recommen- would reduce future opposition could be minimized if the com- dation to locate city offices to difficult and complex projects. munity plan, zoning, and regu- in the proposed town center It would tap the leadership and lations that direct land use and at the intersection of Vermont talent of community groups that development decisions could be and Manchester would ac- were at work in the area long be- developed in accordance with complish this objective. fore the rebellion. And it would two basic principles: Publidprivate cooperation va lidate and institutionalize I ) The community plan-its is essential for the process to the efforts of the Coalition of goals. objectives, policies, and work. The working relationships Neighborhood Developers (CND) priorities-should be devel- that enabled Los Angeles to re- and the Local Initiatives Sup- oped through a community- develop its downtown success- port Corporation (LISC). which based process. Numerous fully are models for the process have already designed, organ- examples of successful needed at the neighborh ood ized, and begun to administer a community-based planning and community levels in South process for community-based exist throughout the country: Central. plan ning. the Comprehensive Com- A flower stand adds a dasft munity Revitalization Pro- of color to the burned-out gram in New York's South site of a former minimart on Bronx; the Ford Foundation- Vermon t Avenue. supported Neighborhood and Fami ly Initiative; and the Mon Va lley Initiative, a community-based planning program in the Pittsburgh area. to name a few. Other innovative neighborhood plan- ning efforts from which to draw ideas include Baltimore's Community Bu ilding in Part- nership in the Sa ndtown- Winchester neighborhood, and President Carter's Atlanta Project effort in Atlanta's Olympic neighborhoods.

30 THE PlANNING PROCESS

PLAN ATTRIBUTES process and product to the meetings to identify issues. greatest extent feasible. concerns. goals. visions. and The panel suggests that • The plans should seek to so on; and formulates and rati- the community plan be a com- strengthen community fies the plan. The plan consists prehensive framework for re- institutions-families, of an enumeration of neigh- newal of the area. addressing churches. neighborhoods, borhood priorities; specific housing, economic develop- and schools. development projects that are ment. job development and • The plans should ensure to be encouraged; resource training, the building of com- equity and parity in the needs; and implementation munity capacity, and social ser- distribution of public and strategies. vice delivery. The plan should private resources. During the planning proc- be a working document with • The plans should ensure a ess. the neighborhood groups emphasis on implementation process of capacity build- are guided by a planning over- strategies. and it must be up- ing within the community. sight committee (and its_vari- dated regularly-at approxi- ous subcommittees) composed mately five-year intervals-to DEVELOPMENT OF of representatives of the local accommodate the inevitable THE PLAN CDCs. USC has assisted and evolutions of urban growth. helped fund neighborhood- The plan should desig- The development of a based organizations' participa- nate opportunity and target community-based plan for tion in the planning process. areas that will require major South Central should be ac- Phase 2. Consolidation concentrations of resources. complished in two phases: into a community plan. The Examples would include pub- • Phase I. Development of individual neighborhood plans lic and private fi nancing and neighborhood plans are merged into a community site assembly. These areas • Phase 2. Consolidation of plan. which becomes the should be sufficiently pre- the individual neighbor- adopted general plan for the planned and reviewed in the hood plans into a unified South Central community and context of the community plan, community plan the basis for all subsequent so that the actual development Phase I . The neighbor- land use and development process can be expedited. hood planning process. The plans and programs. The plan should include a neighborhood planning proc- This process entails the capital improvement plan and ess. as devised by CND and reconciliation of the objectives, a budget that sets specific proj- USC, begins with the defini- policies, programs. and plans ect and program priorities. tion of planning area neigh- of each of the individual borhoods by designated com- neighborhood plans. GUIDING PRINCIPLES munity-based organizations The plan and implemen- that are active in the area. The tation program should be en- Several principles, estab- lead organization(s} in each lished by the CND, should dorsed by RLA and by all ap- neighborhood hire a planning propriate agencies as the guide the effort: team, composed of commu- • The process should include blueprint for action in South nity organizers. other area Central. all who Jive and work in the stakeholders. a planner. and community. support staff; volunteers and TIMING AND BUDGET • The plan should be compre- consultants are involved as hensive. necessary. The panel estimates that • The plan should support The planning team keeps this planning process would community ownership and the community informed of require two to three years to control of the development the process; collects needed complete and more than $3 data; holds workshops and million to finance.

31 Eth11ic pride and ~teigftborfwod spirit are appare11t i11 tfte col­ orful a11d spontaneous art­ work that decorates malty of South Ce11tral's exterior walls.

The panel encourages the city, first, to adopt formally the process begun by CND and USC as the basis for creating a new community plan for South Cen- tral Los Angeles and, second, to establish a clear and direct CITY PARTICIPATION A special effort should be made link between the community to include groups that have not plan and the city's adopted The community-based historically been part of the proc- policies, plans, programs, planning process requires the ess such as immigrants and rent- and priorities. . . proactive cooperation and spon- ers: (The mechanism for identi- Community-based plannmg sorship of the various city agen- fying community participants is is supported by South Central's cies that will be involved in im- not now in place. A fair process council member, as well as by plementing the plan. Perhaps must be created through a col- HPPD, the planning department, the most difficult part of the laborative effort of the planning and other key agen~ies. RLA process will be balancing the department and the community- has dedicated senior staff to community-based effort and based oversight committee.) assisting the effort. the activities of the city agencies. During the planning process. The recommended planning Because the locally based CDCs the planning teams and the city process, described in the feature are sophisticated and success- planning department should box on the preceding page, would ful ones, the panel believes that anticipate the adoption of re- involve the community, the city, the process can be successfully development plans and should and area stakeholders. negotiated. However, city agen- suggest appropriate guidelines cies will need to think and act and controls to ensure that the very differently from the way powerful redevelopment tools they think and act in the tradi- can be used effectively. tional, top-down approach to The relationship of city community planning. council offices to the process The planning department will also require a new approach, would be the lead city agency as the plan and its implementa- in this process and would be tion must take priority over frag- guided by a community-based mented political interests . advisory board composed of representatives of the neigh- borhood organizations and other stakeholders that have played key roles in the development of the neighborhood plans.

32 A ROLE FOR THE UNIVERSITY O F SOUTHERNCAUFORN~

The University of Southern California (USC). as a favored stake holder and responsible in- stitutional citizen, should partici- pate in the process of redevel- oping South Central Los Angeles. Because USC is the largest pri- CONFUCT RESOLUTION INTERIM PLANNING AND DEVELOPMENT GUIDEUNES vate sector employer in the area, This process wi ll undoubt- its interests coincide with the edly generate much heat as The process outlined in physical, social, and economic well as light, with confl icting the feature box will require two health of the community, and it goals and pri orities emerging to th ree years to complete. In represents the wide demographic almost immed iately. Anticipat- the meantime, important land mix that citizens of South Cen- ing this conflict and the inter- use, development, and revi tali- tral envision for the entire area. play of agencies, counci l offices, za tion decisions must be made. USC needs employee housing, and community interests, the The ci ty and representatives stores. and services to accom- process should be organized of the community-most likely, modate a range of income levels. with a heavy emphasis on nego- the CND's planning oversight The institution's demon- tiations, conflict resolut ion, me- committee-should immediately strated concern, expert resources, diation. and consensus building. adopt an interim ordinance that and leadership should be brought Traditional technicians must be designates major target areas, to bear to help in the success- augmented by professionals in such as those suggested in this ful revitalization of the commu- these areas; all must be com- report. The purpose wou ld be nity. For example, USC cou ld mitted to the community- to ensure: help South Central Los Angeles based process. • Tha t these key opportunity through: The time, trouble, and en- sites are not preempted by • Employer-assisted housing ergy expended in this effort will small-scale, inappropri ate, programs; pay dividends in the long term. or incompatible projects; and • Educational outreach The community will have owner- • That major projects can go programs; ship of the plan. Communica- forward in accordance with • Development of R&D parks; tions will have been greatly approved development stand- • Grant or foundation funding increased among diverse inter- ards and in tandem with the via the school of architecture ests. Expectations will be more creation of the community and urban planning; and in line with reality. And the docu- plan. • Active representation on a ment will be a framework for ac- strategic planning council. tion, not another obstacle to be overcome or ignored.

33 The panel is also impressed with the November 3, 1992, re- port of the city's ch ief legisla- tive analyst. which decries the Pa11elist De11 11 is Marti 11ez. lack of a coordinated economic deep i11 thought. development policy and imple- menting capacity and proposes the re location of all economic development activities in a new department. The panel agrees AN ORGANIZATIONAL with this assessment and be- BLUEPRINT lieves that the most efficient and effective way of orga nizing Though the panel's assign- the city's revitalization effo rts is men t was to assess revita lization in a new department of economic de­ possibilities for a strip commer- velopment (EDD). This new depart- cia l corridor in South Central ment would be better able to Los Angeles. its recommenda- respond to the daunting task of tions are intended to make Los initiating an economic recovery Angeles as a whole more com- program for the South Central petitive regionally, nationally, and The panel applauds the crea- community, and would also im- globally. In the absence of a city- tion of the Ad Hoc Committee plement policies and practices wide economic development on Recovery and Revitalization. to make the entire ci ty a more strategy, it may be possible whose October 2, 1992. blue- competitive place in which to to stimulate a modest number print for a coordinated revitali- locate and expand business of community-based business zation strategy was signed by enterprises. sta rtups and to encourage a few the general managers of the Because a free-sta nding de- major enterpri ses to locate in city's planning. housing, com- partment of economic develop- South Central. However. with- munity development. and rede- ment wi ll more effectively posi- out a coordinated public invest- velopment agencies. In light of tion the city to achieve an overall ment strategy to make the en- the long-standing tradition in economic development strategy tire city more competitive. these Los Angeles of largely inde- of promoting balanced growth efforts will produce only lim- pendent agencies' discharging and development. the panel ited res ults. Thus. though the their responsibilities according urges the mayor and city coun- panel focuses on South Central to their own program priorities. ci l president to use their respec- as a case study, the following the significance of the ad hoc tive powers of persuasion to en- recommendations are intended committee's written commit- sure city cou ncil support for to fundamentally change the ment to two new operating prin- this organizational initiative. way in which the city of Los An- ciples can not be overstated. The EDD would not add an- geles addresses economic de- These principles are: I ) to allo- other layer of bureaucracy to an velopment issues anywhere in cate t he committee's fu nds in already overregulated land use its jurisdiction. accordance with a citywide eco- and economic development With this in mind. the panel nomic development strategy; and system but rather would make observes that improving the 2) to target its public resources Los Angeles more economically economy and generating eco- at high-priority geographic ar- competitive. The elected leader- nomic opportunities in the South eas. where they can have the ship must determine its specific Central community will require greatest impact in jump-starting structure. but the panel recom- major political and institutional the revita lization process and mends that the EDD combine. reform at the highest levels of in maximizing the creation of at minimum. the three functions city government. Th e primary local economic opportunities of development review. con- purpose of that reform would for South Central residents. struction permitting, and busi- be to coordinate and stream- However, while the panel ness development. line the city's economic devel- agrees with the ad hoc commit- opment efforts within a single tee. it believes that the com- responsible. accountable. and mittee does not go far enough proactive department. in its organizational proposals.

34 ECONOMIC DEVELOPMENT DEPARTMENT I I I I DEVELOPMENT COORDINATION BUILDING AND SAFETY BUSINESS DEVELOPMENT • Design review INSPECTION • All community economic develop- • Zoning • Building ment programs • Environmental impact report (EIR) • Mechanical • Economic development marketing • Subdivision review • Community sa fety • Business re tention • Resource management • Publid private initiatives

SOUTH CENTRAL CITY CENTER (SCCC) AT VERMONT AND MANCHESTER

CITY AND COUNTY SERVICES H ONE-STOP PERMIT CENTER BUSINESS ASSISTANCE CENTER • Police t- • Small business technical assistance • HPPD/planning • Enterprise zone programs • Parks and recreation administration • Matching grant/loan program • County health service • Small business fund • Sanitation customer service • Entrepreneurial assistance • Job training • Federal Small Business Administra- tion (SBA) programs

"Business development" DEVELOPMENT ONE-STOP PERMITTING would, in concept. include all COORDINATION existing economic development One-stop permitting would activities now being performed Strea mlining the develop- improve the city's ability to pro- by the community development ment process would be achieved vide service to the users of de- department, the CRA, and the by consolidating the various de- velopment review procedures mayor's o ffice. The consolida- velopment review offices within and would make the p rocess tion o f these various functions a single development coordina- more "user-friendly." A one- within a single agency would tion function. This action would stop permit center would make send a clear message that the remove the onerous burdens available in one place all the city of Los Angeles is preparing imposed by multiple agencies' necessa ry procedures for build- to regain its former status as a involvement in a development ing construction permits, regis- center of global economic activ- project's plan review and per- tration, zoning applica tions, ity. And, consistent with the mitting. (An eventual goal should and development review. broader theme of economic be to eliminate many o f there- As noted earlier, to stimu- competitiveness. the focuses of view and regulatory controls, late economic development in the South Central revitalization including fee and permit costs, the South Central area, the pla n will be business develop- that effectively make the city panel suggests concentrating ment, job creation and reten- unfriendly to business and city services in the proposed tio n, and the generation of en- economic development.) town center in South Central trepreneurial opportunities for Los Angeles. A South Central community residents. City Center (SCCC) wi ll house essential city service agencies that will play an important role in stimulating reinvestment in South Central, and will comple- ment the newly created one-stop permit center and b usi ness as- sistance centers recommended for the community.

35 The panel at work.

PRESERVE RESIDENTIAL NEIGHBORHOODS

Although assembling land is important, it should not be done at the expense of viable, existing housing in stable resi- dential neighborhoods. South Central's residential neighbor- hoods clearl y exhibit greater strength and vitality than do its commercial corridors. Residential neighborhoods DEVELOPMENT TOOLS AND such dramatic action, imple- should be nurtured and pro- TECHNIQUES mentation of the community's tected in the process of assem- plan will at best be severely As the Ve rmont Avenue bling land for needed devel- slowed and costly, and at worst opment. South Central land corridor planning and develop- be thwarted by uncontrolled ment efforts move from concept assembly efforts should focus speculation. Much of this specu- on acquiring underused or va- toward implementation, the city lation will be done by absentee and the community will need cant commercial properties at owners who have no stake in key development nodes, where to adopt an array of tools and the neighborhood. incentives to induce appropri- community-oriented develop- The power to assemble land ment should occur. ate, targeted commercial and rests in the redevelopment proc- residential development. ess, which has been designed COORDINATE WITH by the state to achieve the de- COMMUNITY GROUPS FACILITATE LAND ASSEMBLY sired commercial. industrial, and residential improvements As far as practicab le, South USE CONDEMNATION POWER in specific eligible areas. Th e re- Central land assembly efforts Implementing the South vitaliza tion of South Centra l should be undertaken in coop- Central community's locally Los Angeles ca n be a positive, eration with community-based prepared and approved revitali- community-oriented experience organizations and coalitions to zation plan will entail reconfig- if it uses redevelopment powers ensure t hat those efforts con- uring and assembling land par- as part of a grass-roots, bottom- form with locally generated ce ls at key development nodes. up effort. deve lopment priorities. Because land assembly will be difficult early in the implemen- Co mmercial structures along Vermont Avenue tha t were tation phase, CND (or some burned out during the riots other community-based orga ni- have been cleared, leaving zation) should ask the city to large vacant parcels that use its existing legal authority now present opportunities for to assemble land on behalf of new development. the community. Such a move would enable development to evolve in accordance with the community's approved land use plan. The panel is firmly convinced that, without taking

36 SEEK SOURCES OF CAPITAL

For a community-based re- vitalization program, potential sources of capital for land as- sembly could include Commu- nity Development Block Grant (CDBG) funds, federal Section I08 loa n funds, and even phil- anthropic funding from private foundations. For example, land assembly efforts for Boston's com munity-controlled Dudley Street Neighborhood Initiative lured a program-related invest- Some of tf1e residentialneig (J ­ ment from the Ford Fou ndation borftoods near Verm0111 Ave­ for in itial property acquisitions. nue. sucft as Vermont Knolls, are well maintained, PRACTICE COMMUN ITY attractive, and expensive. LAND BAN KING

Consistent with efforts to VERMONT AVENUE ASA ENFORCE BUILDING CODES address the excess of underused PLANNED UNIT or abandoned commercial prop- DEVELOPMENT ENFORCEMENT POLICIES erties on the Avenue, community- controlled assemblages ca n be The pa nel suggests that the The city has not been ag- "land-banked" for future devel- city regard the Vermont corri- gressive in commercial code opment. Otherwise, the land dor as a Planned Unit Develop- enforcement. especially with banking that will occur will be ment. Th is wou ld create the respect to Vermont Avenue and private speculators' banking on appropriate mix of businesses other ma jor commercial corri- future, untapped development and residential types to meet dors within the area. In South potential. community needs, and would Central, the panel believes that institute the flexible zoning re- a lack of aggressive la nd use and USE ZONING CREATIVELY strictions and permitting re- commercial code enforcement- quirements that characterize including punishment of sign REVITALIZATION ZONES such developments. and related building, parking, and other forms of noncompliance- Identifying potential revi- AUTOMOBILE-USE DISTRICTS helps to create artificially high ta lization zones by using the land prices. When there is no fi- city's redevelopment powers in Creation of a special dis- nancial responsibility inherent a community-controlled fash- trict or districts for automobile- in the owners hip of commercial ion would provide a rapid sta rt related uses would enable the properties, t he liability other- to necessary and desirable de- concentration of uses such as wise associated with such own- velopment. While the genera - repair shops, ca rwashes. parts ership is passed to the taxpayer. tion of a new plan and concomi- stores. and service faci lities in The city must send a tant new zoning should be done selected locations. thereby miti- strong and consistent·message exped it iously, redevelopment gating the visual impact of such to the numerous commercia l plans for smaller areas empha- uses. The city, or a private busi- property owners, many of whom sizing commercial and mixed- ness in partnership with a com- are abse ntees, that commercial use development on Vermont munity group, might consider • code enforcement is a way of and major cross-streets can be setting up an automobile repair life in the community; casua l designed and set in motion in school for job training that would attention to, or escape from. anticipation of a full rezoning. also serve the neighborh ood's compliance will not be tolerated. When the full rezoning is ready repair needs. Profits from that to proceed, these redevelopment enterpri se cou ld be reinvested plans can be incorporated into in neighborhood improvements the South Central master plan. and additional development.

37 Liquor stores are abu11da11t - - , ' I._:__ i11 South Ce11 tral Los A11geles, where they also serve as COI1- --.c-:- vel1iei1Ce stores and d!eck­ ...I .:: - . - casflil1g facilities.

If existing code ordinances are appropriate, they should be en- forced by special task forces, in- cl uding the city attorney's office, if necessary. If existing code or- dinances are insufficient, emer- gency legislation should be MODERATE EXCESSIVE While land deflation has considered to stem further LAND COSTS come later to southern Ca lifor- deteriorat ion. nia than to markets in most Landowners' inflated expec- other regions, substantial land REMEDIES tations of land values in South writedowns have become a fact Central that are not supportable of life in more dynamic segments Whatever code enforce ment by the market create excessively of the Los Angeles market and program is adopted in South high land costs. This paradox- will eventually be recognized as Central, the city must attach high land va lues in a market such by landholders in South I iens or otherwise exert respon- lacking significant effective de- Central. Because of its relatively sible financial leverage to achieve mand for developable land- inactive land market, South compliance by those own ers can discourage new investment Central's price structure has yet who do not bring their proper- by creating an artificial shortage to reflect the def1ationary pres- ties up to code. Without ade- of land. Owners withhold their sures that have already affected quate en forcement provisions, parcels from the market in an- other. more active markets. negl igent property owners will ticipation of higher future values. The government cannot continue to have artificially high Such a situation ca n slow eco- determine a landowner's reser- expectations of the speculative nomic recovery by making it vation price; nor ca n it easily value of their holdings and wi ll economically infeasible to build control land speculation. Th is await the opportunity to have and locate within the commu- is especially true in California government pay the bill to con- nity, limiting job-generating de- communities, where many prop- demn, acq uire, or develop. velopment opportunities. erty tax valuations are low, thanks Despite an apparent lack to Proposition 13. However. in REVIEW LIQUOR STORE of market demand for land in its exercise of the police power, LICENSING the South Cen tral community the city ca n control noxious and and an abundant supply of mar- nuisa nce land uses and thereby Liquor stores are abundant ginally developed parcels along in South Central Los Angeles. can raise the holding costs of the Vermont Avenue corridor, marginally productive land and The panel commends the com- knowledgeable sources inter- munity groups that are working improvements while at the viewed by the panel have indi- same time bettering the visual to control the concentration of cated that asking prices for land these outlets. Some of the ap- environment and the quality of are inexplicably high (in the life for community residents. proaches include strategies to range of S1 8 to $25 a foot). For transfer licenses to more desir- the most part, these high ask- able locations, limits on license ing prices are justifi ed neither authorizations, and more strin- on the basis of the parcels' cur- gent license renewal processes. rent economic va lues or on the basis of their ant icipated fu- ture uses.

38 The city can and should ELIMINATE EXCESSIVE aggressively enforce existing REGULATION ordinances and regulations re- quiring owners to keep vacant Local regulatory policies lots clean and free of debris; re- contribute to high development pair or demolish at the owner's costs in several ways. First, be- expense vacant and derelict build- cause time is money, Los Ange- ings that pose a danger to pub- les's slow and cumbersome de- lic health and safety; and enforce velopment review process adds housing and building codes significantly to land ca rrying along the Vermont Avenue cor- costs and therefore to higher ridor. By doing so, the city can end-prices and rents. Second, si multaneously enhance the as stated earlier, the privatiza- quality of the visual environment. tion of off-site public infrastruc- Finally, parking requirements improve neighborhood safety, ture costs-through sewer facili- for lower-income housing are and increase the holding costs ties charges, school and dwelling generally the same as for market- of owners who are waiting for construction impact taxes, park rate housing, despite the fact government-subsidized develop- fees, and permit and processing that lower-income households ment initiatives to inflate the fees-significantly raises pro- own fewer automobiles than prices at which they can sell duction costs. Because most of the rest of the population. The their land. these fees and charges are the city must revise its parking re- Unrealistically high price same for a $100,000 house as quirements to reflect more ac- expectations will also be mod- they are for a million-dollar curately the community's actual erated along substantial portions dwelling, they cause proportion- automobile ownership and use of the Vermont Avenue corri dor ately greater price increases for patterns. Higher-than-necessary when community-based land use housing designed for the lower- parking requirements increase plans have been revised and income market than they do for costly land requirements and adopted by the city. While iden- housing targeted at the higher- frequently necessitate the con- tifying the locations of planned income market. Make no mistake: struction of expensive under- areas of intensive development Impact fees harm the poor far ground parking facilities that might cause land prices to esca- more than they hurt the rich. raise production costs still late in these limited locations, The panel was told of a higher. The higher the produc- these land use plans should also small, affordable housing sub- tion costs, the greater the gap reduce price pressures in the division planned for the South financing that is required to more extensive areas of the cor- Central community in which make a project work, and the ridor identified in the plan for the combined impact fees and fewer the housing units that can lower-density residential and charges would total $12,000 a be supported from the limited commercial development. In this unit. This would amount to al- pool of available subsidy dollars. way, development opportuni- most I 0 percent of the proposed Given the severe shortage of af- ties in the entire South Central selling price. If affordable hous- fordable housing in South Cen- tral and the city as a whole, every community will be enlarged. ing development like this were exempted from these charges, unnecessary requirement must as the panel recommends, the be scrubbed from the develop- annual income required to af- ment regulations. ford these units would be low- ered by more than $4,000, which is about one-quarter of the me- dian income for South Central households. • Incentive packages. To stimulate FINANCING development in South Central Los Angeles. the city cou ld The panel understands the ensure a reliable package of fisca l hardships that Los Ange- financial and regulatory in- les has suffered. along with the centives for approved for-profit rest of the nation. due to federa l and nonprofit developers pro- funding cutbacks. However, there posing projects that conform are resources that can be used- to community-based plans in or used better-to jump-start targeted redevelopment areas developments in South Central. such as South Central Los Among these resources are Los STREAMLINE PUBLIC Angeles. This would speed Angeles's $73 million Commu- REVIEWS AND APPROVALS the process and attract new nity Development Block Grant developers to South Central. (CDBG) entitlement and its $23 Regardless of specific area A good example of a pack- million HOME allocation. and master plans, a key incen- age of financial incentives is tive for developers in the Ver- urban enterprise zone bene- PUBLIC/PRIVATE mont Avenue corridor would fits. Currently, the nearest PARTNERSHIPS be to streamline the processing state urban enterprise zone of development applications. terminates largely on the east Los Angeles's own Vermont- At a minimum, developers in side of Vermont Avenue. Con- Siauson model- like the joint the Vermont Avenue corridor sistent with the community's venture between Pathmark should be guaranteed a devel- development priorities, the (Supermarkets General) and the opment process that achieves enterprise zone should be ex- community-based nonprofit New the following: panded to include develop- Communities Corporation in • Lead development agency/consoli­ ment sites on the west side of Newark, New Jersey-illustrates dated project review. Rather than Vermont Avenue and along the benefits of partnerships be- requ ire developers working east/west avenues to Western tween the public and private in high-priority targeted ar- Avenue. Business incentives sectors and between for-profits eas to undergo multiple and in the Watts enterprise zone and nonpro fits. Encouraging repetitive feas ibility and de- include tax credits for hiring CDC involvement in local devel- sign reviews, the city could disadva ntaged individuals opment not only empowers the designate a lead agency for and corporate income tax community; it may also provide different types of projects credits for sales taxes paid access to ce rtain resources that and consolidate the reviews. on purchased machinery the for-profit community on its • Expedited permit processing. and equipment. own might not be able to tap. Given the commitment to This new multiuse project on changing the way of doing Vermont Avenue features business in South Central, a low-rise multifamily housin g critical step would be to ex- for seniors over street-level pedite processing of approv- retail space. als for conforming develop- ments proposed in South Central's high-priority devel- opment areas.

40 This is particularly true in the areas of the low-income hous- ing tax credit and other equity fu nds. of below-market-rate loans from lending consortia, and of predevelopment assis- tance and financing from na- Panel Cftairman Smedes tional and regional philanthro- York conducts an Ofl-tfte­ pies and intermediaries. spot i11terview witft t(u ow11er of tfte Gage Swap Mee t while Gary Squier a11d pa11elists EQUITY Ray Brow11 a11d Rick Cof1e11 Despite the 1992 veto of look 011 . the urban aid and tax bill, for the moment terminating the federal low-income housing tax credit program, housing tax credits are almost certain to be revived in 1993 by the new ad- ministration and the new Con- PREDEVELOPMENT AND Residential and commercial gress. Tax credits have been BRIDGE FINANCING development in distressed neigh- responsible for more than 90 borhoods like South Central in- percent of the affordable rental The public sector, as well cur significan t start-up costs. housing development in the as foundations, loan pools, and Without predevelopment fund- United States in recent years private lenders, must grapple ing, the development process will and can contribute approxi- with the need for predevelop- stall, especially for nonprofi ts. mately one-third of the costs ment financing. The hardest of a project. Involving nonprofit money to find is funding for the CREATIVE USE OF CDBG organizations not only helps to ea rly stages of development FUNDS foster a sense of community planning. Under the federal ownership in pro jects but also HOME program, which the city Th e Ve rmont-Slauson gives access to equity funds, of Los Angeles receives as an Shopping Center benefited im- such as USC's National Equity entitlement. up to I 0 percent mensely from Urban Develop- Fund and the Enterprise Foun- of the set-aside for community ment Action Grant (UDAG ) fund- dation's Enterprise Social Invest- housing development organiza- ing, which disappeared from the ment Corporation, among others, t ions (CHDOs) ca n be used as national scene some yea rs ago. that are geared to supporting forgivable, site-speci fic prede- In its stead, however. other funds nonprofit development. velopment financing and seed can be used. For example, Los In addition to housing tax money. Angeles can obtain, and appar- credits, there are efforts to gen- In the charitable sector, foun- ently has applied for (through erate eq uity funds for commer- dations and national community the community development cial development, such as USC's development intermediari es department), a Section I 08 loan recently announced Retail In- sometimes provide predevel- guarantee to be repaid out of itiative, which can be accessed opment loans or "recoverable future CDBG receipts. which can by developers of supermarket- grants" to nonprofits for upfront be used for economic develop- anchored neighborhood and planning and development costs. ment purposes. Jersey City, New community shopping centers. For example, a program started by Jersey, successfully used $26 the Ford Foundation (SEEDCO, million in Section 108 funds for based in New York City) has waterfront land acquisition. offered below-market predevel- Section 108 fun ds in Los Ange- opment loans to CDCs associ- les could be used, for example. ated with universities and hos- to capitalize the land assem- pitals. Perh aps a USC-affiliated blage process discussed above. nonprofit could obtain this sort Beca use these funds ca n also of loan. be used for residential develop- ment, the city should seek Sec- tion I 08 authority for housing as well. For short-term (less than Central to making HOME- one year). below-market prede- and CDBG-more effective is ve lopment and construction the issue of leverage. Los Ange- loans, the city can use its unex- les, like most cities, can do bet- pended CDBG funds as a loan. ter in using its available subsi- Called a CDBG float loan, such dies to draw in private capital monies could be used for devel- from lenders such as Bank of opments that are consistent with America and Wells Fargo. Despite HOME NATIONAUREGIONAL the purposes of the CDBG pro- probable changes in federal pro- TECHNICAL ASSISTANCE gram and would permit the city grams with a new administra- FORCHDOs to stretch the use of its CDBG tion taking office in January 1993, funds. CDBG float loans and Sec- the HOME program is one that Federal money is now avai l- tion 1081oans, unlike the HOME is likely to be maintained and able for nonprofit developers funds described below, can be expanded. HOME and CDBG working in partnership with city used for economic development funds will continue to constitute agencies to carry out the HOME projects as well as housing. important sources of gap financ- program. The funds can be used ing, the former focused solely for technical assistance on pack- CREATIVE USE OF HOME on housing, the latter available aging deals. as well as for train- FUNDS AS GAP FINANCING for housing and some limited ing nonprofit staff members and economic development. How- even for covering some CDC op- Enacted in 1990, the federal ever. to further leverage these erating and administrative costs, HOME program has not been funds, the city must alter its gap which are normally ineligible easy to use. especially in Los financing approach. It should not under the regula r HOME funds. Ange les. However. Los Angeles only regularly fill the gap in a It is a demand/response system. has received waivers on certain developer's project budget after in that the funds go to those cit- regulatory cost constraints, and the developer has negotiated for ies (and their partner nonprof- amendments to the HOME pro- itself with private sector lend- its) that get in line first. Given gram enacted in the fall of 1992 ers; the city should also take an South Central's national signifi- have made the program some- upfront role with lenders to ne- cance. Los Angeles and its South what easier to use. The keys for gotiate agreements for stronger Central-based CDCs ought to the city in making HOME work private sector financial partici- go to the head of the line. in South Central include: pation. The alternative is for the For other HOME program • Making sure that HOME is city to be stuck in a reactive activities, additional HOME used to leverage private capi- posture. unable to adequately technical assistance is available tal, which is easier now that or effectively influence the pro- directly to the city and will ap- HOME's affordability restric- portion and terms of private parently flow through the com- tions can be subordinated to sector financing. munity development department. a fi rst-mortgage lender in case of foreclosure. Numerous store{ro 11t cflurcfles • Using HOME as critical gap occupy former commercial financing in tax credit and space 011 Vermo11t Ave11ue. mixed-income projects. now that particular HOME regu la- tions on income levels and rents do not push projects into tax credit noncompliance. • Expanding the opportunities for CHDOs in the HOME pro- gram. CHDOs are required to constitute at least 15 percent of the city's HOME invest- ment. especially in South Central, where nonprofit de- velopment capacity appears to be on the upswing.

42 A particularly interesting Panelists Ji m Goodell and possibility is the AFL-CIO invest- Micftael Stegman debate ment trust. Under new leader- a point. ship, the trust is aggressively seeking inner-city investment possibilities, both residential and commercial. It is looking at high-visibility target areas such PRIVATE SECTOR FINANCING as Atlanta's Olympic neighbor- hoods and, more recently, post- The panel applauds the posi- riot South Centra l. Publidprivate tive program initiatives suggested efforts to work with the AFL-CIO in the city council's June 199 1 should continue. report on community reinvest- TAX INCREMENT FINANCING ment in South Central. Includ- The city's community-rooted PROCESSING AND ing the potential multi bank CDC revitalization effort can take ad- DEVELOPMENT FEES and the private lending spurred va ntage of tax increment financ- by the Community Reinvestment ing (TIF) to spur and support The panel was told of the Act (CRA), the Los Angeles Com- needed development. For exam- high costs of processing and munity Reinvestment Commit- ple, the city ca n iss ue bonds to impact fees assessed on devel- tee recommended a program of be repaid by future years' tax in- opment throughout Los Angeles small business expansion loans, crement reven ue. While the CRA and in South Central. According a microbusiness start-up loa n recently sacrificed more than to the city's own Comprehensive program, the establishment of $40 million of its TIF resources Housing Affordabi lity Strategy a business assistance center, and to sustain state and municipal (CHAS), these fees ca n add from a development site acquisition budgets, TIF monies from South S14 ,000 to $20,000 to per-unit program. These are all ventures Central revitalization projects development costs. Add to this worth translating into action. can and should be targeted to amount $ 15,000 for a minimum Despite the apparent will- stay in South Central. Also im- of two parking spaces per family ingness of the banks to partici- portant is the notion of merg- dwelling unit, and it is no won- pate in a multibank CDC and to ing redevelopment areas, so der that Los Angeles's housing support a South Central- focused that South Central could bene- development costs have sky- community development cred it fit from the TIF revenues gener- rocketed. union (CDCU). banks are still ated by wealthier redevelop- Because these fees increase obligated under the Community ment areas, such as downtown. development costs, in the end Reinvestment Act to provide the city must pay these costs mortgages and rehabilitation PENSION FUNDS through the provision of addi- loans in the inner city, especially t ional layers of subsidy. In cases in South Central. Also. CRA will Despite their long-term fi - of affordable housing, some of likely be significantly strength- nanci ng potentials, and despite these fees can and should be ened in 1993. CRA notwithstand- increasingly frequent commit- reduced or waived for speci fi- ing, banks have not failed be- ments to "economica lly targeted ca lly targeted South Central de- ca use of their CRA portfolios investments," pension funds have velopment sites. In other cases, but beca use of other kinds of not been a major source of financ- developers should be given the speculative investments. Local ing for inner-city development. option to provide the desired banks. both on their own and particularly commercia l devel- amenities and improvements through pools such as SAMCO opment. However. public pen- on the site rather than paying and the California Community sion funds might be more will- impact fees. In this way, the Reinvestment Corporation. can ing to live up to their targeting city could ensure that the im- expand their roles and bring commitments by financing South provements are built and that secondary market actors, such Central's housing and commer- they will actual ly benefit the as Fannie Mae and Freddie cial developments because they residents. Mac, to the table as well. could thus achieve portfolio di- versification and provide resi- dents with jobs and services.

43 CONCLUDING COMMENTS

The assignment was chal- lenging and rewarding, and ULI Cou ncilman Mark Ridlev­ hopes that its report wi ll provide Thomas addresses the panel input into the revitaliza tion, in- during its presentation. come enhancement, community empowerment, and pride of South Central Los Angeles. The panel's vision for South Central Los An geles is re- ally very simple. It is a vision of a neighborhood where there are Neither a ULI panel nor At issue is not just solutions good jobs and decent housing, any other outside group can im- to planning and urban design that is clean and safe, and where pose solutions. However, ULI problems, or even the revitaliza- children ca n play. In short, the hopes that its recommendations tion of South Central Los Ange- panel's vision embraces a neigh- have suggested opportunities les. The city must also position borhood that is built around that will help structure the dis- itself to compete economically. harmony, achievement, and the cu ssion and decision-making The city of Los Angeles has realization that living the Ameri- process through which the ci ti- a remarkable opportunity to be- can dream is possible. zens of South Central Los Ange- come a model of a great city in For more than 20 years, nega- les can rebuild and strengthen the next century. Neighborhoods tive publicity has distorted the their community. and communities are not only public image of South Central Meeting the needs of the made up of bu ildings, streets, Los Angeles, giving the impres- citize ns of South Central Los and trees but also of people. sion that the community con- Angeles will require changing The challenge to t he city is to tains no inherent assets or the attitudes and habits that take the dreams and visions of strengths. On the contrary, the constitute "the system." The its people and to create first a social and physical fabri c of people have to take back the plan and then a process for real- South Central Los Angeles re- process. The community itself izing them. The people deserve a mains strong and overwhelmingly must become less passive and response to this challenge, and positive. Although tensions ex- must advocate its own needs. the government that serves them ist and conditions are fa r from The politicians have to put poli- has the ability and responsibil- ideal, there is much strength tics aside and adopt a specific ity to help in ach ieving those both in the human spirit and plan; streamline, centralize, and dreams. courage of the people of South consolidate the planning and Central and in the traditional approval process; and break up stru cture and building stock of the entrenched burea ucratic their neighborhood commercial gridlock, so that public servants and res ident ial areas. can truly serve the public. And In spite of the physical and the business community needs economic decline caused by to recognize that it can gener- neglect and by the effects of pov- ate profits wh ile serving socie- erty and racism, the sense of ta lly usefu I ends. pride in and affection for the area felt by many of its residents is one of its most important building blocks toward achiev- ing a new and brighter fu ture. The panel's recommendations represent a framework within which individual acts can help to realize that future.

44 ABOUT THE PANEL

SMEDESYORK RAYMOND BROWN Panel Chairman Dayton, Ohio Ra leigh, North Carolina Brown is principal of Ray~ York is president of York mend Brown Architect, a full~ Construction Company and service architecture/urban design/ York Properties, Inc., of Raleigh, interior design practice special~ North Carolina. He is currently izing in urban streetscape design, chairman of the Ra l eigh ~ Durham commercial and residential build~ Airport ·Authority. th'e Rale i gh~ ing design, neighborhood plan~ Durham Regional Association, ning, and urban public school and North Ca rolina Amateur strategic planning. Prior to found~ Sports. He served as mayor of ing his firm, Brown was an asso~ the city of Ra leigh from 1979 ciate with Kleski & Associates to 1983 and was a councilman Architects, a firm focusing on in~ from 1977 to 1979. stitutional and commercial de~ York is a past president of sign. He was assistant professor the Urban Land Institute and a of architecture at the Universi ty current member of its board of of Cincinnati from 1979 to 1984. trustees. His professional aff ili ~ As senior planner for down~ ations include membership in town for the city of Dayton's de~ the Institute of Rea l Estate Man~ partment of planning from 1974 agement, the International Coun~ to I 979, he was responsible for cil of Shopping Centers, the all downtown planning and ur~ North Carolina Association of ban design. Realtors. and the Ra leigh Board Brown was partner for design of Realtors (of which he is past . at Sha for~ Brown~Johnson . Inc .. president). a general architecture and p l an~ York is a graduate of North ning practice, from I97 1 to 1974. Carolina State University and Before taking this position. he holds an MBA from the Univer~ administered nonprofit architec~ sity of North Carolina. He served tural and planning services tar~ as a first lieutenant in the U.S. geting low~income inner~city resi~ Army and was awarded the Army dents and neighborhoods at the Commendation Medal for his Dayton Model Cities Community service in Korea . Design Center. Brown has also been the associate director of the Cleveland Design Cen ter, where he managed office and individual projects for nonprofit architectural offices serving a variety of neigh ~ borhood groups with conflicting political agendas and strategies.

45 PAULA COLLINS FRITZ DUDA San Francisco, Ca lifornia Dallas, Texas

Collins is a founde r and Duda is president and owner principal of the Western Devel- of the Fritz Duda Company, a opment Group (WDG). Inc., a privately held real estate invest- rea l estate investment and de- ment building and development RICK COHEN velopment company formed in company with offi ces in Orange, Brooklyn, New York 1982. The Western Development California, and Dallas. Texas. Group and its fam ily of compa- The company specializes in the Cohen is an independent nies and partnerships are en- development of master-planned, consultant with more than 20 gaged in residential and com- mixed-use communities and re- yea rs' experience in housing mercial development in northern tail/commercial developments, and economic development in California, with an emphasis on as well as providing asset man- the public and private sectors. community and economic devel- agement and corporate real es- He served as vice president for opment in urban areas. tate consulting services. program services at the Enter- Before forming Western Duda is a member of the prise Foundation, a national Development. she served as board of directors and executive nonprofit community develop- general manager for Daon Cor- committee of Th e Vons Compa- ment intermediary, wh ere he poration's northern California nies, Inc. (NYSE). southern Cali- was responsible for the founda- regional office. In this capacity, fo rnia's leading supermarket tion's field operations on very she managed a variety of office, chain. He serves as a director low-income housing in more industrial, and residential land of the Hammond Company, a than 40 cities. developments in the San Fran- Ca lifo rnia-based mortgage bank- Prior to joining the Enter- cisco Bay area. In the public sec- ing company. He is a t rustee of prise Foundation, Cohen served tor, Collins was on the project the University of California's as a consultant specializi ng in management team for the Hastings I 066 Foundation and planning, housing, and public Moscone Convention Center in is chairman of the college's real policy analysis. An AICP-accred- San Francisco. estate advisory committee. ited planner, Cohen was director Collins has been a member A sustaining member of of the department of housing of the vis iting committee of the the Urban Land Institute, Duda and economic development in school of architecture and plan- serves as a member of the Advi- Jersey City, New Jersey, and ning at MIT and is a member of sory Services Committee. also worked for the Trust for Lambda Alpha, an honorary Duda received a JD from Public Land and the Institute land economics society. She the University of California's Hast- on Man and Science. has served on the Northern ings College of Law. Cohen holds a BA from Ca lifornia Advisory Board of Boston University and a master's Glendale Federal Savings, and in city planning from the Univer- as a trustee of the California Pa- sity of Pennsylva nia. His writing ci fic Medical Center in San incl udes the books, Small Towns Francisco. and Small Towners and Partnerships Collins is a graduate of fo r Neighborhood Preservation. He Mount Holyoke College and has been an adjunct professor holds a master's degree in city of public policy at St. Peter's planning from MIT. College in Jersey City and of ur- ban planning at Rutgers Un iver- sity in Livingston, New Jersey.

46 MICHAEL A. STEGMAN ROSLYN M . WATSON Chapel Hill. North Carolina Cambridge, Massachusetts

Stegman is Cary C. Bo s~ Watson is vice president at hamer Professor and chairman The Gunwyn Company, the de~ of both the department of re~ velopment firm associated with R. TERRY SCHNADELBACH gional and city planning and the Graham Gund Architects, Inc., New York, New York PhD curriculum in public policy in Cambridge, Massachusetts. analysis at the University of She has had extensive project Schnadelbach. principal of North Carolina at Chapel Hill, as ~ The Schnadelbach Partnership management. leasing, and where he has taught graduate set management experience in since 1969, has had major com~ courses in national housing po l ~ prior positions with the Ma ssa~ missions throughout the United icy, investment analysis, and af~ chusetts Port Authority. From States, Canada, and abroad. He fordable housing for the past has consulted in London, Paris, 1974 to 1978, as assistant dean, 26 years. He has written exten ~ Rome, Athens, the Middle East she helped to launch the college sively on these subjects. His of professional studies (now Africa, and Central America to ' More governments, institutions, and most recent books include: the college of management) at Housing, More Fairly: The Limits of the University of Massachusetts private industry. His professional Privatization: A Report of the Twenti~ at Boston. work has received numerous eth~Cent ury Fund Ta sk Force on A{~ From 1982 to 1986, Watson awards: the HUD Urban Design, fordable Housing ( 1991 }; The Public was a city of Boston zoning com~ American Institute of Steel. Ameri~ Housing Homeownership Demonstra ~ missioner. During this period, can Institute of Architects, New tion Assessment (HUD, 1990); and code amendm~;n ts were adopted York State Association of Arc hi ~ Nonfederal Housing Programs: How to impose development fees on tects, and the National Asso cia ~ States and Localities Are Responding downtown development projects tion of Home Builders awards; and to Federal Cutbacks (Urban Land to fund training, affordable ho u s~ the New York City Club's Bard Institute, 1987). From 1979 to ing, and community develop~ Award for Civic Design. Schnadel~ 1981, Stegman was a member ment pro jects in Boston's bach is a graduate in architecture of President Carter's adm ini stra~ neighborhoods. of Louisiana State University and tion. serving as deputy assistant A council member of the of the Harvard Graduate School secretary for research in the Urban Land Institute. Watson is of Design and Landscape Archi ~ U.S. Department of Housing a graduate of Simmons College tecture. In 1964, he won the and Urban Development. and holds an SM in manage~ America n Academy's coveted ment from the MIT Sloan School Prix de Rome in landscape archi~ of Management, where she was tecture. an Alfred P. Sloan Fellow.

48