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HIDDEN OC MARKET-RATE WORKFORCE
HOUSING OPPORTUNITIES
Presentation to: Workforce Housing Committee of
OCBCJune 6, 2014L.S. CONGLETON &
ASSOCIATESLinda S. Congleton, Principalwww.congletonconsulting.comlinda@congletonconsulting.comPhone: (949) 487-2000
MICHAEL C. ADAMS ASSOCIATESMike Adams, [email protected]: (714) 376-3060
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“SUSTAINABLE” WORKFORCE HOUSING SITE CRITERIA
1. Market rate, non-luxury rents for apts.
2. Modest, entry-priced homes for sale
3. Non-subsidized; no government funds
4. Close to healthy OC employment hubs
5. No more than 20 min. work commute
6. Low crime
7. Good public schools
8. Recreation/churches/shopping within 10 minutes
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OC LACKS ZONED LAND AREAS FOR WORKFORCE NEEDS
New So. OC MPC’s too far, too pricey
Former OC base sites: insufficient
workforce housing due to lot costs
Housing land developers need high lot
prices from builders due to costs/risks
No supply to meet demand long-term
Traffic to get worse with MPC’s build-out
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NON-SUBSIDIZED WORKFORCE HOUSING PRODUCT TYPE EXAMPLES Apartments (e.g., five levels) Renovated industrial/office building lofts
for-rent or for-sale Small lot and square footage single family
detached homes Entry-level condominiums (if & when
market returns) Mixed-use retail & apartments Traditional small housing adjacent to
industrial/ retail and/or major arterials
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5 HIDDEN OPPORTUNITIES
1. Outdated Industrial Zoning
2. Permanently Weak Retail Uses, Strip
Corridors & Centers
3. Over-zoned, Unrealistic Office Zones
4. Old, Poorly-Located, Eye-Sore Hotels
5. Unused “Public”/Civic & School Sites
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COMMON HIDDEN SITE CHARACTERISTICS Zoning anachronisms Zoning not reflective of very long-term
business needs/plans General plans lacking market demand Cities’ unrealistic desires for retail sales &
hotel transiency taxes Attitude: “Zone it and they will come.” Sites vacant or under-utilized
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OUTDATED INDUSTRIAL ZONING AREAS
1. Lack freeway visibility & access
2. Not suitable for regional-serving distribution facilities
3. Excess land vis-à-vis long-term demand
4. Rationale for zoning no longer exists; e.g., unused rail lines
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HUNTINGTON BEACH GOTHARD HUNTINGTON BEACH GOTHARD CORRIDORCORRIDOR
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GOTHARD CORRIDOR ISSUES Under-performing uses Surrounded by residential No freeway access/visibility
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GOTHARD CORRIDOR PHOTOS
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PERMANENTLY WEAK RETAIL Retail Follows Residential Mature residential=no retail growth Over-saturation of 1960s/1970s retail strip
corridors & oversupplied weak malls Highly professional, single-operated
“Power Centers,” Discount-Value Centers, Strong Department-Store Malls permanently diminish ability of strips & weak centers to come back
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PERMANENTLY WEAK RETAIL (continued) General Plans mistakenly protect retail
corridors: retail sales tax issues More booming sales requires more homes Retail is not an ever-growing product Many weak retail corridors are eye-sores Renovation $ will not reap higher sales “Customers do not shop city boundaries...” Retail “leakage” analyses misunderstands
shopping dynamics
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BELLA TERRA (EDINGER AVE, HB) – MIXED USE RETAIL & RESIDENTIAL
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SITE REUSE EXAMPLE: FORMER FREE-STANDING LEVITZ FURNITURE STORE
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BEACH BLVD Vacant Lots/Poor Performing Strip Centers
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LAGUNA HILLS MALL (PERMANENTLY WEAK)
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UNREALISTIC OFFICE COMMERCIAL ZONING Over-zoning of office zones, particularly in
second-tier No. County markets Company downsizing, greater efficiencies
with fewer people New, free-form company work stations Entrepreneurial, small companies taking
industrial, loft, mixed-use retail & live-work areas
Non-contemporary, old, 30-year-plus configurations no longer suitable
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OUTDATED HOTEL/MOTEL SITES Old properties not near business centers
or tourist/beach activities City reluctant to rezone due to transient
taxes Badly maintained, eye sores; renovation
will not improve Locations permanently weak
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EXAMPLE: COSTA MESA 55 FREEWAY HOTELS Adjacent to residential…
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UNUSED CITY/STATE/SCHOOL SITES
Excess lands owned by City/State
School sites well located near existing
residential
Substantial bureaucracy for city/state-
owned lands & public scrutiny
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IMPLEMENTATION STRATEGIES
FOR CHANGE1. Corporations lead the way: propose workforce
housing on their excess industrial/office lands—but not just for their workers
2. Target Cities with weak financials to re-examine retail/commercial zoning
3. Urge City officials to update General Plans, insisting that Plans be market-driven based on RESEARCH & FACTS—not futuristic “WISH LIST”
4. Urge financially strained cities to conduct Economic Development Strategic Plan for under-utilized, under-performing commercial sites
5. Encourage flexible mixed-use; “mixing uses;” and re-zoning in weak commercial zones