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February 28-March 13, 2017 Long Beach’s Newsmagazine www.lbbizjournal.com
Inside This Issue Medical Pioneer Dr. Rodney White Pushback Continues To Innovate As New Vascular On Pool Surgery Director At Long Beach Memorial Project
I By SAMANTHA MEHLINGER With colleague Dr. Thomas Fogarty, White led Assistant Editor testing and human deployment of the aortic stent Price Tag graft in 1996. The invention repairs aneurisms of Health Care Quarterly r. Rodney White, whose co-development of the aorta, the body’s main blood vessel, by insert- I By BRANDON RICHARDSON Dthe aortic endovascular stent revolutionized ing a stent wrapped in a fabric liner through a Senior Writer Creating Healthier Office vascular surgery, is continuing to advance innova- catheter into the blood vessel. Upon release, the Environments tions in the field in his new role as medical direc- stent expands and reinforces weaknesses in the ince the Belmont Plaza Page 28 tor of vascular surgery at Long Beach Memorial aorta. This minimally invasive alternative to open- S Olympic Pool was deemed Medical Center. (Please Continue To Page 22) seismically unsafe and closed in 2013, the replacement project has been a hot-button issue for some residents of the area. Now, at its March 2 meeting, the Long Beach Planning Commission is expected to certify the environmental im- pact report (EIR) and approve the site plan review, conditional use A Conversation With City College permit, standards variance and Acting President Ann-Marie Gabel local coastal development permit. Page 34 Jeff Miller, a resident of Bel- mont Shore, and Gordana Kajer, a resident of Belmont Heights, are among those who have voiced con- cerns about the project, ranging (Please Continue To Page 12) Land Use Pacific Coast University, School And Heights Dr. Rodney White, the new medical director of vascular surgery for Long Beach Memorial Medical Center, holds up Of Law Celebrates 90th Year an invention that, since he helped create it, changed the field of vascular surgery: an endovascular aortic stent. Pictured Page 37 in the hospital’s hybrid imaging suite, from left, are: Dr. Ankur Gupta, vascular surgeon; Derek Lester, director of Proposed Building invasive cardiology; and Dr. White. (Photograph by the Business Journal’s Larry Duncan) Heights Questioned Amid Housing Shortage PART II After Two Years Of Protests, Still No I By BRANDON RICHARDSON Senior Writer
Vote To Unionize Downtown Hotels t its February 2 meeting, A the Long Beach Planning Small Business Showcase Union, Hotels At Odds Over Process; Workers And Councilmember Weigh In Commission voted 5-1 to continue This Issue: Wardlow Road the discussion on the proposed I By SAMANTHA MEHLINGER and to support workers who say protesting, a vote amongst work- Land Use Element and Urban De- Pages 38-39 Assistant Editor their rights have been violated. ers to decide whether to join Unite sign Element to the General Plan. Nearby residents say these consis- Here Local 11 has yet to occur. After more than an hour and a half 2 People In The News or about the past two years, tent protests have been marked In order to hold a formal vote of discussion and another hour of 6 Realty Views F Unite Here Local 11 – a most noticeably by early morning overseen by the National Labor Re- public comment, commissioners 18 Newswatch union based in Southern Califor- bullhorn noise, as well as one in- lations Board (NLRB), a petition in asked city staff to reconsider build- 32 HealthWise nia – has been organizing protests cident in which protestors carried support of unionization must be ing heights and density in certain at the Westin Long Beach and a large wooden cross through the signed by at least 30% of employ- areas and requested more commu- 34 Educators Discuss Betsy DeVoss Renaissance Long Beach hotels in Westin’s lobby. ees and filed with the board. nity outreach. 38 Small Business Dollars & Sense an effort to promote unionization But despite two years of (Please Continue To Page 16) (Please Continue To Page 9)
Long Beach Business Journal PRSRT STD 2599 E. 28th Street, Suite 212 U.S. POSTAGE Signal Hill, CA 90755-2139 562/988-1222 • www.lbbizjournal.com PAID Los Angeles, CA PERMIT NO. 447 By Assistant Editor Samantha Mehlinger Work Life Balanc… ing Act In a very hip creative office space (can’t get any speakeasies and knowledge of which cheap, forgotten more hip than exposed brick walls and an open-air brand of beer is currently in right now) run their own staircase) across from the very hip Berlin Bistro/Fin- marketing agency called Commune Communications. gerprints Record Store building, two Millennials (I’d And with their success, they’re kind of living the call them hip too but there wasn’t enough time to ad- Millennial Dream. minister the test, which involves familiarity with local The guys in question – (Please Continue To Page 4) 1_LBBJ_Feb28_2017_LBBJ 2/25/17 6:03 PM Page 2
Page 2 • February 28-March 13, 2017 • Long Beach Business Journal People In The News
New Long Beach Hotel Managers During the past several months, Long Beach has welcomed three new hotel managers to the city. Pictured from left are: Mooyon Kim, Holiday Inn Long Beach Airport; Kenya Ban- nister, Courtyard by Marriott Long Beach Airport; and Paolo Domingo at the Queen Mary. Kim, who has 20 years of industry experience, including 15 years as a general manager, was born and raised in Seoul, South Korea. He studied management and marketing at the University of Kentucky, and hotel and restaurant management at the Collins College of Hos- pitality Management at Cal Poly Pomona. Bannister, who was born and raised in Long Beach, attended Long Beach City College and lives in the city, helped with the opening of the Courtyard four years ago, serving as director of sales. She has now returned as general manager. She began her 20-plus year industry career as an intern at the Queen Mary. Domingo came to Long Beach from Las Vegas, where he served as director of hotel operations at the Red Rock Casino Resort and Spa, and prior to that in a similar role at the MGM Grand Casino. He began his career with the Hyatt Regency in San Francisco, saying he followed in his father’s footsteps, who served 40 years in the industry. At the Queen Mary, he oversees the day-to-day operations of the entire ship. He earned a bachelor’s in history from UC Santa Barbara. (Photographs by the Business Journal’s Larry Duncan)
Sean Gamette has been latter includes the firm’s giving efforts and stock. Based in Long Beach since it was education programs in the community, to promoted to managing di- events that improve the quality of life in the founded in 1977, SCAN is a “senior-fo- Board of Examiners, Appeals and Condem- rector of engineering serv- Signal Hill area. She earned her bachelor’s cused organization dedicated to keeping nation; Jessica Marquez, a visually im- ices for the Port of Long in international business from Cal State seniors healthy and independent.” It pro- paired teacher of communication studies at Beach. He replaces Doug Fresno. . . . Long Beach-based Alta Envi- vides SCAN Health Plan, one of the largest CSU Long Beach, to the Citizens’ Advisory Thiessen, who retired ear- ronmental has hired two new senior con- not-for-profit Medicare Advantage plans in Commission on Disabilities; Michael Clem- Gamette lier this year. According to sultants and project the nation. Selecky has more than 30 years son, energy program manager for the CSU the port’s website, Gamette oversees the managers. Matthew Re- of experience in the health care industry Office of the Chancellor, to the Long Beach port’s design, construction management naud joins the firm’s water and owns Population Health Strategies con- Transportation Company Board of Directors; and program management divisions, head- resources group and Lyn- sultancy firm. Rosenstock is a former dean Jo Prabhu, a transportation advocate for ing all port engineering and construction leigh Love is part of the of the UCLA Fielding School of public seniors, to the Senior Citizen Advisory projects and overseeing an annual project site assessment and reme- health and current professor at the univer- Commission; and Gustavo Orozco, a CSU budget of more than $200 million. He Renaud diation team. Renaud has sity. . . . Mayor Robert Garcia announced the Long Beach student and army vet, to the joined the port in 2003 as a senior program 15 years of experience in the private and appointment of nine residents to city com- Veterans Affairs Commission. Appointed to manager and was promoted to deputy chief public consulting field, missions and five members to a port advi- the Port of Long Beach Community Grants harbor engineer in 2009 and chief harbor overseeing construction sory committee. New commissioners are: Advisory Committee, which provides direc- engineer in 2013. He earned a bachelor’s of general permit compliance Matthew Peterson, a managing partner of tion in awarding more than $45 million of science in engineering from Cal Poly State programs and writing Shore Restaurant Group to the Belmont port mitigation grants, are: Gary DeLong, University. . . . Debra Montalvo Russell has storm water pollution pre- Shore Parking and Business Improvement former councilmember and owner of TMSI; been promoted to vice vention plans. Love has Area Advisory Commission; Miles Nevin, Irma Archuleta, former city college trustee president of community re- more than 20 years of ex- Love director of the president’s office at Long and a retired teacher and administrator; lations and real estate oper- perience preparing, reviewing and stamp- Beach City College, to the Transactions and Joanne Davis, a developer of financial man- ations for Signal Hill ing technical documents including Use Tax Citizen’s Advisory Committee; Zoe agement programs for statewide campaigns; Petroleum, a privately risk-based corrective action, site concep- Nicholson, a writer, researcher and published Sabrina Sanders, a supporter of student ac- owned energy company tual models, pilot test reports, remedial ac- author, and Gio Ferraro, owner of Ground- ademic programs at CSU Chancellor’s Of- that focuses on the explo- Russell tion plans and much more. Renaud earned work Fitness, to the Human Relations Com- fice; and Kathleen Irvine, a landscape ration and production of crude oil and nat- a bachelor’s in environmental studies from mission; Ethel Powers, involved in general designer, consultant and teacher. ural gas in urban areas. Russell wears State University of New York, and Love several hats for the company, including holds a bachelor’s in geology from Cal overseeing government affairs, urban seis- State Fullerton. . . . Two new members have mic ventures, real estate operations and joined the SCAN Group Board of Directors: Vol. XXX No. 4 • February 28-March 13, 2017 EDITOR & PUBLISHER 1985. It is published every other Advertising/Editorial Deadlines leading the community relations team. The Christobel E. Selecky and Dr. Linda Rosen- George Economides Tuesday (except between Christ- Wednesday prior to publication SALES & MARKETING mas and mid-January) – 25 date. Note: Press releases copies annually. The Business should be faxed or mailed. No EXECUTIVE SYNTHETIC BLEND Journal premiered March 1987 follow up calls, please. For a Heather Dann as the Long Beach Airport Busi- copy of the 2017 advertising Oil Change PHOTOGRAPHER AND .95 ness Journal. Reproduction in and editorial calendar, please $29 +Tax, Haz. Fee, Up to 5qts. STAFF ASSISTANT whole or in part without written fax request to 562/988-1239. Most Cars. Larry Duncan permission is strictly prohibited Include your name, company unless otherwise stated. Opin- and address and a copy will be EDITORIAL DEPARTMENT ions expressed by perspective sent to you. Distribution: Mini- ASSISTANT EDITOR FULL SYNTHETIC writers and guest columnists are mum 22,000. Oil Change Samantha Mehlinger their views and not necessarily Regular Office Hours .95 SENIOR WRITER those of the Long Beach Business Monday-Friday +Tax, Haz. Fee, Up to 5qts. Journal. Send press releases to $45 Most cars. 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Page 4 • February 28-March 13, 2017 • Long Beach Business Journal Millennial Pulse
(Continued From Page 1) them. (But I swear, I didn’t. Google them.) producing better work. “Frankly, you can’t guidance on career advancement and is in- James Whale, 37, native New Zealander, As they tell it, at the mega-ad agencies of solve creative problems sitting in front of creasingly pushing mentorship opportunities. and Ryan La Rosa, 34 year old Long Beach New York, work-life balance was basically your computer 12 hours a day,” La Rosa A topic of conversation within Molina’s local – left careers at big agencies in New nonexistent. “From the outside in, some of said. “The times that we have solved those HR department is how to increase flexible York City to strike out on their own in a these bigger agencies look pretty sexy and problems hiking in Yosemite or Joshua work opportunities. “We have been looking way that emulates the most sought after amazing,” Whale said. “And you get to work Tree . . . far outnumber the times we have at 9/80 [work schedule] approaches, maybe ideal of Millennials: work-life balance. on these big accounts like Adidas and Coca solved those problems sitting and staring one to two days working remote,” Topps said. My last article cited research that showed Cola. But the truth of it is there are so many at each other in an office.” Topps dismissed the stereotype that most Millennials feel indifferent towards people willing to do your job that nights, At Commune, working remotely is totally Millennials are lazy. If Millennials on his their jobs but desire to be passionate and weekends are fair game,” he recounted. acceptable, and taking time off is encour- team have enough free time to be on their have value in the workplace. They also crave “The way that advertising agencies aged. Even simple breaks to go out for coffee phones, he said, “I’m probably not chal- flexibility and opportunities to advance. have gone is that you populate them with help keep creativity flowing, La Rosa said. lenging them enough.” I also promised to follow up with local em- floors and floors of young people who are Lest I anger the masses by only inter- But both Commune Communications ployers on whether or not Millennials fit into willing to do that, because that’s how you viewing Millennials, I also talked to Long and Molina Healthcare pointed out a trend the stereotype that they are lazy and entitled pay your dues,” La Rosa said. “We just Beach’s own Fortune 500 company, Molina of Millennials expecting to be assigned at work, or if we’re all just misunderstood. wanted to not do that at all costs.” Healthcare. Millennials make up 42% of its work above their experience level. La Rosa and Whale set the stage for this For these two, work-life balance not massive 20,000-person workforce, accord- “You find with a lot of Millennials, be- discussion so well it’s almost like I invented only allows for leisure – it is also a means ing to Edward Topps, manager of human cause they are so ambitious [when] they are resources and talent acquisition at the firm. coming right out of college . . . they want to Talking to Topps, it seems the research jump right in to a manager or director role presented in my last column is pretty in line with no years of experience,” Topps said. with Molina’s understanding of Millennials. “But we want to make sure we still motivate To refresh the memories of my legions them and train them the appropriate way to of adoring fans (read: Grandma), a poll let them have realistic expectations.” by Deloitte found that more than half of La Rosa and Whale tend to hire recent Millennials feel their leadership skills are college graduates and have seen similar be- not being developed, an issue cited by havior. “Sometimes we have to pump the nearly three-quarters who plan to leave brakes and go, ‘Well, you’re actually not their jobs in a couple of years. ready to create a whole advertising cam- Topps said Molina’s highest turnover paign,’” La Rosa said. rate is among Millennials, who tend to So what’s my verdict on Millennials in want to seek other opportunities to the workplace? As both Topps and the broaden their horizons. Commune guys noted – laziness and enti- “They want to feel like their work is a part tlement are qualities that could apply to any of their company’s mission and purpose – age group. Sure, maybe we’re a little full of that it actually provides value,” Topps said of ourselves, but that wind will get knocked Millennials. He added, “They want to make out of our sails pretty fast. sure they are having that direct impact.” Cut us some slack and let us take a coffee To that end, Molina Healthcare provides break, for God’s sake. I 1_LBBJ_Feb28_2017_LBBJ 2/25/17 6:03 PM Page 5 1_LBBJ_Feb28_2017_LBBJ 2/25/17 6:03 PM Page 6
Page 6 • February 28-March 13, 2017 • Long Beach Business Journal Real Estate & Development
Mayor Robert Garcia said LBX is a qual- ity project and that he is glad to see a proj- ect that respects the area’s history while continuing Long Beach’s “incredible leaps and bounds” in bringing retail and restau- rants to residents citywide. He said he ex- pects the project to not only draw Long Beach residents from all parts of the city but also across the region. “We rarely get a project where every- one’s happy. There’s a lot of projects where we get a lot of opposition or a lot of con- cern,” Garcia said. “This has not been one of those projects. This has been like a rolling out the red carpet type of a situation with this community.” Fifth District Councilmember Stacy Mungo said there is a positive buzz throughout her district about the project. She said the area has long since been a “food desert,” with residents leaving the city to dine. However, recent developments and LBX look to change that routine. Developers and city officials broke ground on the 26- “As you finish your construction and you acre Long Beach Exchange on February 14. The largest start to open your doors, we look forward project to date on the Douglas Park property will consist to partnering with you to hire Long Beach of 266,000 square feet of retail and restaurant space residents to keep the commutes low and on the southwest corner of Lakewood Boulevard and employees happy,” Mungo added. Carson Street. Pictured from left: Jonathan San Antonio New Industrial And of Rockwood Capital; Stephen Thorp of Burnham USA; Scott Burnham of Burnham USA; Mayor Robert Garcia; Office Condo Project 5th District Councilmember Stacy Mungo; Bryon Ward Construction is set to begin in March on of Burnham-Ward Properties; Therese Hotvedt of Burn- a 50,000-square-foot industrial and office ham USA; and Joel Mayer of Rockwood Capital. (Pho- condo project at 1333-1351 Orizaba Ave., tograph by the Business Journal’s Brandon Richardson, pictured below. The project by Lee & As- Rendering courtesy of Burnham USA) sociates Commercial Real Estates Services I By BRANDON RICHARDSON Nordstrom Rack, Orchard Supply Hard- This space will be anchored by a repurposed will feature 10 suites ranging from 2,470 Senior Writer ware, PetSmart and T.J. Maxx are con- airplane hangar, which will house numerous square feet to 7,182 square feet. The con- firmed tenants of the complex. smaller purveyors such as artisanal coffee, dos are near restaurants such as Joe Jost’s, Development News “The vision is to develop an experiential juice and small-scale retailers. Working Class Kitchen and Long Beach retail shopping center that focuses on din- To further the spirit of aviation at the site, Long Beach Exchange Groundbreaking Thai and are walking distance to Orizaba ing, fashion and entertainment,” Stephen Bryon Ward, partner at Burnham-Ward, Park. Suites will sell for between $199 and On February 14, Long Beach city offi- Thorp, executive vice president of Burn- said the company spent time at the Long $250 per square foot. cials and developers celebrated the ground- ham USA, said. “We’re very excited to be Beach Historical Society and found photo- breaking of Douglas Park’s largest project a part of the community, and we look for- graphs and statues that depict the aviation to date, the 26-acre Long Beach Exchange ward to our grand opening in April 2018.” history of Long Beach. (LBX) on the southeast corner of Lake- Scott Burnham, CEO of Burnham USA, “A lot of found art and a lot of imagery wood Boulevard and Carson Street. said the design and aesthetic of the project is are going to be curated and consolidated on The project by Burnham-Ward Proper- meant to pay homage to the history of avia- this site,” Ward said. “So in addition to a ties, an affiliate of Burnham USA, was ap- tion in the area, as the site is the former lo- great retail experience, it will hopefully be proved last November and will consist of cation of McDonnell Douglas operations. a museum of sorts and hopefully a re- approximately 266,000 square feet of retail Two acres of the project are designed as open minder of what this site meant to the city, and restaurant space. Whole Foods 365, communal space, according to Burnham. to the state and to the country.”
put and not selling, then the answer to the creases cost, delays and entitlements to continues to improve at a moderate pace.” Realty Views current shortage needs to come from build. Even though many of these entangle- A number of factors are used in this homebuilders – and recent activity is not ments are likely to take months or years to study of U.S. metros areas—including very encouraging there. change, housing leaders feel that more price, permit and employment levels for Will Regulatory According to the recently released National housing production could be on the way. the past 12 months and dividing each by Association of Home Builders/First Ameri- “Though rising, single-family permits their annual average over the last period Relief Help Housing? can Title Leading Markets Index (LMI), sin- continue to lag the other components of the of normal growth. They use the 2000- gle-family permits are running at just 52% of LMI,” said NAHB Chief Economist Robert 2003 period for home prices and permits lot of attention has normal activity, while employment is at 98% Dietz. “This is due to a number of factors, as the last normal period and 2007 for the Abeen focused on eas- and home prices were well above normal at including regulatory hurdles and supply- employment baseline numbers. ing regulatory hurdles by 147% at the end of 2016. This kind of activ- side headwinds such as persistent shortages Among major metro areas showing im- the new administration in ity will lead to an affordability issue, which of lots and labor in many markets. As we provement, Baton Rouge tops the list, fol- Washington, and it ap- is already happening in some markets. address these challenges, we should see an lowed by Austin; Honolulu; Provo, Utah; pears that the home build- “While housing continues to gradually additional increase in housing production.” and San Jose. Los Angeles ranked ninth. ing industry is looking in mend, regulatory constraints are preventing From the outside, the LMI Index looks Among the smaller metro areas, Odessa, that direction for some builders from meeting demand in many mar- to have improved overall and shows that Texas, ranked first, followed by Midland, By Terry ross help in alleviating one of kets,” said NAHB Chairman Granger Mac- 174 of approximately 340 metro areas Texas; Ithaca, New York; Walla Walla the largest problems in housing right now: Donald, a homebuilder and developer from across the country have returned to or ex- Washington; and Florence, Alabama. not enough new homes. Kerrville, Texas. “We expect further im- ceeded their last normal levels of eco- Untangling the regulatory maze will not It has been well-documented that current provement in the year ahead as we work with nomic and housing activity – with 86 automatically supply more labor or produce owners are not moving like they were in the the new Trump administration and Congress markets improved over 2015. more places to build; however, making it eas- early part of this century – well before the to implement regulatory relief that [will] help “More than 250 markets, or 75% of all ier to work toward those goals, instead of cre- housing crash – and that fact has impacted small businesses and the housing sector.” metro areas nationwide, now stand at or ating roadblocks, should help these issues. inventory on all levels. The number of The other component of this issue in- above 90% on this quarter’s Leading Market (Terry Ross, the broker-owner of TR homes for sale is not meeting the demand volves the supply of labor and available lots Index,” added Kurt Pfotenhauer, vice chair- Properties, will answer any questions about for buyers, which is creating a shortage and on which to build. Regulatory reform can man of First American Title Insurance Com- today’s real estate market. E-mail questions even driving a resurgence in prices. impact these areas as well if the government pany, which co-sponsors the LMI report. to Realty Views at [email protected] or If owners feel more secure in staying can strip away some of the red tape that in- “This shows that the overall housing market call 949/457-4922.) I 1_LBBJ_Feb28_2017_LBBJ 2/25/17 6:03 PM Page 7
Long Beach Business Journal • February 28-March 13, 2017 • Page 7 Real Estate & Development
Olympic Plaza and is open from 5 a.m. to 9:30 p.m. on weekdays and 5 a.m. to 10:30 p.m. on week- ends. The facility includes state- of-the-art equipment, trainers and instructors in three classrooms, ocean views throughout much of the facility and members can uti- lize the rooftop deck for sunrise and sunset yoga and meditation, among other things. The space Pictured is the new headquarters office at 4000 Cover St. at Dou- also includes an in-house cafe glas Park for C2O Coconut Water, LLC. The firm relocated from called Portfolio Fit by Kerstin Seal Beach and purchased the freestanding commercial building Kansteiner, owner of Portfolio of approximately 8,855 rentable square feet for $3.25 million. and Berlin coffeehouses on 4th Mark Sokolowski of Newmark Grubb Knight Frank represented Street. The cafe is open to mem- the company. (Photograph by the Business Journal’s Larry Duncan) bers and nonmembers alike and Real Estate News offers coffee, smoothies, protein shakes, Rancho Domingues Building Sale high-protein snacks and healthy meals. Orient Express LLC recently acquired an Motorcycle Repair Shop industrial building located at 3144 E. Maria Opens On Wardlow Road St. in Rancho Dominguez, adjacent to Long Beach Choppers LLC celebrated Northwest Long Beach. The 34,964-square- its grand opening on Saturday, February 25. foot building was sold for more than $4.8 According to a press release, the shop is million and includes approximately 5,000 “dedicated to keeping old school Harley square feet of office space. DAUM Com- Davidson and custom choppers on the mercial Real Estate Services represented road.” The shop is located at 708 E. Ward- the seller, Michael Leung, while Colliers In- low Rd., just behind Sports Pub. ternational represented Orient Express. Furniture And Home Decor On 2nd Street In Belmont Shore Retail And H. Richtter, a new home decor and fur- niture store, is scheduled to open for busi- Professional Services News ness March 1 at 5470 E. 2nd St. Owner Olympix Fitness Now Open Nick Pirniakan said the store specializes in Taking the place of Yankee Doodles, midcentury rugs and will offer a unique Olympix Fitness opened its doors for mem- shopping experience with many one-of-a- ber workouts on February 18, with regular kind items and free in-house consultations. operating hours that began on February 20. Pirniakan said a grand opening event will The Belmont Shore gym is located at 4101 be scheduled at a later time. I 1_LBBJ_Feb28_2017_LBBJ 2/25/17 6:03 PM Page 8 1_LBBJ_Feb28_2017_LBBJ 2/25/17 6:03 PM Page 9
Long Beach Business Journal • February 28-March 13, 2017 • Page 9 Real Estate & Development Land Use And Heights (Continued From Page 1) “I think it’s a major planning document for the city that’s going to affect the city for so long,” Commissioner Richard Lewis said. “I think we just want to make sure that we have it right and [are] putting the time into it.” Lewis said he thinks city staff did a good job of spreading growth opportunities throughout the city but that the reality is that there is more developable land in areas closer to downtown near the Blueline. Be- cause of this, proposed density is greater, and that is what is causing the concerns of the area’s residents. Many of the questions and concerns raised by residents, which were the basis of the commission’s decision, were focused on proposed building heights, specifically in the Wrigley area in several locations Mauna Eichner and Lee Fukui are 6th District residents who live near sites that would be allowed five-story buildings under the current Long Beach Land Use along Pacific Avenue. The proposed land Element proposal. The residents claim that such tall buildings near single-story residential homes are imposing on occupants and point to this location on use would allow buildings up to five stories West 33rd Street near Pacific Avenue as an example. (Photograph by the Business Journal’s Larry Duncan) to be built near transit stations, while cur- happen is just not realistic, specifically in Beach, public comments on the environ- opening of the Blueline. Additionally, since rent zoning and land use does not allow for our neighborhood.” mental impact report and e-mails being it was adopted, the city has gained 44,000 buildings of more than two stories. Fukui and Eichner said the proposal sent to more than 6,000 community mem- residents, the Aquarium of the Pacific was “I think a lot of people were surprised by should work for everyone but that compro- bers and leaders. constructed, downtown has experienced a what the new building heights were going to mise would most likely be necessary. A “A lot of work has gone into this plan. renaissance, and bike and pedestrian infra- be and what the new development was going previous version of the proposal of the We were definitely disappointed not to structure has become more prominent in to entail,” Lee Fukui, a 6th District resident Land Use Element had more areas along move forward immediately, but it’s not a the area. All of these factors play a role in who supports the commission’s decision, Pacific Avenue that would allow up to four- big delay,” Koontz said. “We will be back the proposed increased density of down- said. “We know that [city staff] want to mo- story buildings. However, after pushback in April to give the commission some more town and its adjacent neighborhoods. tivate people to use the Blueline. But at the from residents, city staff reduced them information. We’ll do a study session on Koontz noted that 58% of the housing same time, we don’t think they were consid- back to two stories. April 6. If everything goes well there, we stock is over 50 years old, and changes are ering other transit lines like bus lines, and it When asked if this was the compromise can go back in another month or two for a needed soon to keep up with demand and felt like it was being concentrated here.” needed to make the proposal acceptable, formal vote on approval.” prevent further drastic price increases for Fukui and fellow 6th District resident the residents said that it was not enough, When discussing resident concerns about renters and homebuyers. Mauna Eichner said that while there are and the five-story allowances that remained increased density near the Blueline, Koontz “We know that it is a big decision and a changes and additions to land use and den- were not wanted. Eichner said eventually pointed out that the current General Plan hard decision for the commission, so I to- sity throughout the city to varying degrees, they may have to compromise with allow- was adopted in 1989, two years prior to the (Please Continue To Page 11) much of it seems to be focused in the ing three- or four-story buildings but they Wrigley area near the Blueline. The resi- will continue to try and convince city staff dents said that having buildings taller than otherwise until then. two stories in neighborhoods with single- “So if they call us NIMBYs [an acronym story, single-family homes and in areas al- for the phrase “Not In My Back Yard”], ready impacted by density with regards to well, I could say the same thing about any parking is illogical. community that cares about overdevelop- “We’re not opposed to development, but ment,” Fukui said. “You’ve got to be it ought to be smarter,” Fukui said. “There smarter about development, and you’ve got are already neighborhoods that are terribly to take into consideration your neighbors. impacted with parking, and if you add on That’s all we’re asking.” more stories and multi-use buildings, that Christopher Koontz, advanced planning means more people need parking.” officer for the city, explained that the “There’s this idealistic view that no one’s process for the proposal has been ongoing ever going to have cars again, but that’s for 10 years, with a draft of the proposal never really shown to pan out in Califor- posted in May 2015. In the past six months, nia,” Eichner added. “People feel very un- Koontz said community outreach has been safe on the Blueline. And until that gets extensive and has included a citywide open turned around and people really do want to house, more than 10 community meetings, get rid of their cars, to idealize that this will a student focus group at Cal State Long 1_LBBJ_Feb28_2017_LBBJ 2/25/17 6:03 PM Page 10 1_LBBJ_Feb28_2017_LBBJ 2/25/17 6:03 PM Page 11
Long Beach Business Journal • February 28-March 13, 2017 • Page 11 Real Estate & Development
Land Use And Heights Jay Davis owns five properties along Pacific (Continued From Page 9) Avenue and fully sup- tally understand them wanting more infor- ported the Land Use El- mation and more time,” Koontz said. “But ement’s proposed I think we’re going to still try to continue five-story building al- in an expedited fashion because we feel lowances near transit that it’s a plan that needs to be adopted. stations. Davis said a And the city needs to move forward if two-story cap is not en- ticing to developers we’re going to be able to create jobs and and keeps properties housing opportunities for our residents.” vacant and underuti- Parallel to the planning commission’s lized. (Photograph by discussion is the city council’s recent study the Business Journal’s session on housing affordability at its Feb- Larry Duncan) ruary 21 meeting. During a presentation, more viable for developers. Property own- Jay Davis, owner of five properties along explained that people are focusing on what Amy Bodek, director of Long Beach De- ers agree that larger-scale projects are the Pacific Avenue, said. “The problem is you the community is today instead of what it velopment Services, said that 38% of Long best way to encourage more development. really can’t make the investment in the cur- could be in the future. Beach residents are above moderate in- “Now we’re getting to a point that we can rent restrictions.” “Without being able to make changes come, 17% are at moderate income and the do something that allows the opportunity Davis said a balance needs to be found and allow for something different, areas remaining 45% are at low, very low or ex- for an investment that you can get a return that preserves the community’s character aren’t going to flourish,” Portillo said. tremely low income levels. She said these on and not have it sit there and languish,” and tradition while allowing it to grow. He “They’re just going to die.” I numbers indicate there are great housing needs not only for low-income residents but also those above moderate income. Bodek also spoke to low-paying jobs and poverty, noting that 47% of households are burdened; meaning more than 30% of in- come is spent on rent alone. Additionally, 24% of residents are considered overbur- dened, meaning they spend over 50% of their income on rent. These numbers, combined with the fact that around 60% of Long Beach residents are renters, indicate a need for the construction of housing at the market rate and affordable levels with increased density, not unlike the proposed Land Use Element. Former Assemblymember and Long Beach Councilwoman Bonnie Lowenthal is the chair of the housing study group organ- ized by Mayor Robert Garcia last year. The group was part of three community meet- ings with residents, housing advocates and developers. During the council meeting, she identified three steps to help during the housing crunch: prioritize and plan afford- able housing; protect and preserve current affordable housing; and produce and pro- mote new housing. “It’s an extremely difficult time to find funding,” Lowenthal said. “That, indeed, is your biggest challenge. We hope that you’re going to dig deep into every possible source of funding.” Not all community members share the same reservations about increased density in areas such as Pacific Avenue. Sam Por- tillo, a 6th District resident, said the area is long overdue for a change. “The Wrigley area was built and de- signed a long time ago. At that time, what was there was conducive to what the envi- ronment was in the neighborhood. But now times are different, and needs are different,” Portillo said. “So the buildings that are there and the regulations that we have for those areas really need to be changed so they catch up with the times.” Portillo said he is not upset with the de- cision to continue the discussion because he understands the concerns of some resi- dents regarding building height limits. However, he said that as a resident with a home directly behind Pacific Avenue, he does not take issue with taller buildings being allowed in the area. He noted that even if five-story buildings are allowed, individual developments are still subject to approval and pushback from the community and may result in smaller buildings. Portillo also acknowledged that more story allowances make opportunities 1_LBBJ_Feb28_2017_LBBJ 2/25/17 6:03 PM Page 12
Page 12 • February 28-March 13, 2017 • Long Beach Business Journal Real Estate & Development
Looking south from above Olympic Plaza. (Rendering courtesy of the City of Long Beach)
View from the beach. (Rendering Belmont Plaza Pool courtesy of the City of Long Beach) (Continued From Page 1) from its intended use to the cost. Even those in favor of the proposed project admit the $103 million price tag seems a bit excessive. However, those who oppose the project cite the cost as a reason to stop it in its tracks. “Why [is the city] moving forward and asking for approval of a project with unde- fined costs?” Miller said. “That figure of $103 million, they admit that’s not a true cost. They’ve stated publicly that the cost will not be known until after the city coun- cil gives approval and an actual construc- tion design is put together and submitted.” Looking west from the indoor pool spectator seating. Tom Modica, assistant city manager for (Rendering courtesy of the City of Long Beach) Long Beach, admitted that the estimate made in 2014 is subject to change further along in the process. He explained this is be- cause through the entitlement process, with the planning commission, the coastal com- mission and appeals, the design could be al- tered, which would naturally change the cost for better or worse. For this reason, a true projection of cost cannot be determined until a design is approved and finalized. The proposed budget encompasses the demolition of the old building, planning and design of the new facility, permitting, construction management and actual con- struction cost, according to Modica. He said that little more than $10 million has been spent so far on the demolition and preliminary designs. A major source of concern for both Kajer and Miller is that the city’s Tidelands Op- erations Fund is funding the project, which is in large part tied to oil revenue generated by Tidelands. When the project was first proposed with its $103 million budget, oil prices were up and budgeted as such, Mod- ica explained. However, when oil prices crashed, Tidelands monies took a hit and pool funding came into question. “Of the $103 million project budget, we have $60 million that was set aside in cash,” Modica said. “That was done through a prioritization of Tidelands dollars back in 2016. In the [fiscal year] ’17 budget, the city added an additional $1.5 million in [Tidelands] funding toward the project. So approximately $61.5 million is funded of the $103 million.” To make up the roughly $42 million View from the southeast outdoor pool deck. discrepancy, Modica said the city is look- (Rendering courtesy of the City of Long Beach) ing at various strategies, including re- 1_LBBJ_Feb28_2017_LBBJ 2/25/17 6:03 PM Page 13
Long Beach Business Journal • February 28-March 13, 2017 • Page 13 Real Estate & Development
“I’m a supporter of the whole idea “future funding sources would be some- When asked if there is a scenario Miller and Kajer contend that there is not thing the city council would decide.” enough parking for spectators and visitors of Long Beach as an aquatic Miller explained that the problem with in which General Fund money of the pool when combined with beachgo- capital. That’s a fine notion. I’d the project being funded by Tidelands funds would be used for the project, ers, the new Olympix Fitness gym, pier and is that there are more than $300 million in pier-adjacent businesses and residents. Ad- like to see it done so that it works, Tidelands projects that the city has pre- Modica said that none has been ditionally, Miller said the EIR and city of- though. My concern over the sented and prioritized. By allocating more allocated for the pool to date ficials deny that parking could pose a than two-thirds of current available funds to problem, completely ignoring what he calls economics of this is that it the pool, many projects will be postponed. and that “future funding the “ground truth” of the full lots on a hot would not work in that location Miller and Kajer said other Tidelands proj- sources would be something summer day. ects are more important than the pool. Lucy Johnson, a boardmember of the in Belmont Shore. It’s not an Modica confirmed that available Tide- the city council would decide.” Aquatic Capital of America Foundation accessible location for the traffic lands funds at the time projects were prior- (ACA), disagrees, saying the more than itized totaled roughly $99 million. However, Those costs are very high because of the 1,000 spaces of surrounding parking have and the parking requirements he pointed out that the initial $60 million nature of the competitive pool.” never been an issue in the nearly 50 years that spectators would need.” was set aside for the pool prior to city staff However, Modica explained that there she has used the site’s pool. being asked to prioritize Tidelands projects. has been an initial analysis as part of the “Even for a big event like the national Jeff Miller, Belmont Shore Resident According to Modica, when the list was pri- fiscal guidelines of the project, though it is championships, the last third of that lot was oritized, no money was added or taken away subject to change for the same reasons that never full. Teams come in a bus or a van. gional, state and federal grants and avail- from pool funds and remaining funds were the total project cost might. After revenue [Parking] is absolutely not an issue,” John- able county park money, as well as private allocated to other projects accordingly. from special events and other uses is taken son said. “We’ve had two Olympic trials, fundraising and donations. Some of the current projects still being into consideration, the net maintenance two men’s NCAA championships, high “This pool has been such a special facility funded by Tidelands money include con- cost of the pool is about $1.3 million annu- school championships every year, 26 out of in the hearts and minds of the aquatics com- cession improvements along the beach, ally and would be factored into the Tide- the first 29 water polo championships. And munity and has produced some world-class which were completely unfunded before lands budget, according to Modica. we’ve never had a problem.” swimmers and also some very successful the prioritization, and the Naples seawall, Miller said that he believes it is important Johnson added that the previous pool, people,” Modica said. “We believe that in addition to a number of bathroom, light- to keep Long Beach vibrant, up-to-date and which opened in 1968, had seating for up- there’s an opportunity to ask them to donate ing and safety projects. Modica admitted attractive but that a beachside pool is not the wards of 2,400 spectators, while the pro- back to the creation of a new facility.” that lower-priority projects would be held best use of Tidelands funds. Also, aside from posed project only contains seating for Last week, the city began a search for a off until funds are available but that they the cost, Miller and Kajer said the project 1,250. She said that the city is requiring an fundraising consultant to assist in the would be completed over time. has other issues that they think are red flags. approved parking plan, including a person process. Bids for the contract are due by Beyond the initial cost of the project, “I’m a supporter of the whole idea of Long directing traffic, for any event that expects Friday, April 7, and can be made by con- Miller said he is concerned with the ongo- Beach as an aquatic capital. That’s a fine no- 450 or more spectators – a requirement tacting Regina Benavides at 562/570-7062 ing maintenance and operational costs of tion,” Miller said. “I’d like to see it done so Johnson called absurd. or [email protected]. the facility. that it works, though. My concern over the In terms of seating, those for and When asked if there is a scenario in “The maintenance and operational costs economics of this is that it would not work in against the project take issue. Richard which General Fund money would be used of a facility like this are not defined in the that location in Belmont Shore. It’s not an ac- Foster, president of the Aquatics Capital for the project, Modica said that none has entire design process,” Miller said. “Those cessible location for the traffic and the park- of America Foundation Board, said the been allocated for the pool to date and that costs were never really brought to light. ing requirements that spectators would need.” (Please Continue To Page 14) Page 14 • February 28-March 13, 2017 • Long Beach Business Journal Real Estate & Development Belmont Plaza Pool and what the city might hope to get from it in Johnson noted that the proposed facility as the “Aquatics Capital of America,” the terms of increased tax revenue, it means that includes two 50-meter pools, a separate city must invest in pools around the city. She (Continued From Page 13) fully a third of the year, in terms of days, the diving well, a recreational pool, a therapy pointed out that while there are additional seating is not enough, pointing out that pool [is] unavailable for public use,” Kajer teaching pool, a small spa near the diving public pools, the city only has three munic - larger national events and many interna - said. “All of the things that make this a desti - well and a larger spa for the general public ipal pools, including the temporary Belmont tional events require more seating. He said nation for these types of events means that the – a total of seven bodies of water. Pool, the King Park Pool and the Silverado this would lead to events opting for other public can’t use it for a third of the year.” “With having the two pools, they won’t Park Pool. Kajer explained that these three venues such as Federal Way Aquatic Cen - Kajer is referring to a city document that have to close both pools [for events]. They sites are not enough to service the various ter in Washington or Indiana University, identified potential events at the pool and can still have one for recreation, which serves communities throughout the city. which seat 2,500 and 4,500, respectively. the total number of days those events would our public much better,” Johnson said. On the flip side, Foster and Johnson Modica added that space for temporary utilize the facility. Between swimming, div - With regard to the location of the pool, pointed out that the project has always been seating is available for up to 3,000 specta - ing and water polo events at various levels the EIR identified three other locations that portrayed as a revitalization of the former tors at the outdoor pool, should an event re - of competition, the city identified 135 days could accommodate the project, including pool. As a revitalization project, Johnson quire more space. This seating would be of potential events. Harry Bridges Memorial Park, a lot near said it would stand to reason that it would rented, and not owned, by the city. Johnson and Foster pointed out that, first the convention center and a lot on Queen be located on or near the original site. Also, Miller and Kajer, on the other hand, con - and foremost, those numbers are speculative Mary property. Kajer noted that each of Johnson said the beach location played a tend that the proposed spectator seating im - and would most likely be less, as the city these locations are along the coast, and the big role in attracting events in the past. plies the facility is not a municipal pool would not be awarded every event. However, EIR neglected other neighborhoods for the As for Kajer’s assertion that other com - being built for use by residents but rather more importantly, based on the design of the sole purpose of being able to maintain use munities would be better served with a as an event space. proposed complex, the public would still be of Tidelands funds. pool, Johnson noted that the city already “When you talk about this aquatic center able to use the facility during events. Kajer believes that to refer to Long Beach owns the temporary pool in Belmont. “We have a temporary pool sitting in the parking lot right now,” Johnson said. “I’m talking to [9th District Councilmember] Rex Richardson and [8th District Coun - cilmember] Al Austin and saying that I will do everything in my power to move [the temporary pool] to one of those districts.” Kajer and Miller also question the process of stakeholder and community out - reach to determine the residential commu - 3RD ANNUAL nity’s wants and needs versus the aquatics community’s wants and needs. “There was a stakeholder committee set Building A Better Long Beach up to guide the development process. There [was] only one representative on that stake - Publishes March 14, 2017 holder committee that represents residents,” Miller said. “The majority of the stakehold - ' " ers [were] people who have an economic in - terest in swimming and diving and those " % #% $ events. That was the driving committee. The economics of it lead from that, and the !! )$ %!# ! ', beach location is the costliest factor.” . $$ #! ! *!# !#% # Johnson was a member of the committee, which was the result of then-Councilmem - . ! ! (!" % ! $$! #$ %*-$ ! ! '"# % ber Gary DeLong’s request to gain input . % ! $ ! ! '% " from stakeholders. Committee members . %* &($ !# ) #!) '$ $$$ were selected by the city manager, and they held three meetings that focused solely on . %#%$ %*,/ !%* the needs and wants of stakeholders, ac - . !' %$ * #!' )!# !# + %*-$ '%'# cording to Modica. The committee did not play a role in site location or design, but . %* ($& (* !!* !# '$ $$ ! ' %* rather in specific elements such as the . (!" % #!%$ " number and types of bodies of water and of seating that would accommodate residents . "$!% ! '$%#$ and events, Modica explained. . & $ ! , #& $ Johnson also explained that a number of . ! $%*, ! ' ! ! $!(# community meetings were held, including a meeting at the SeaPort Marina Hotel hosted by Suzie Price that asked for public $ " #! input regarding design elements and the /0.(211)-... wants of residents. Several hundred com - * &