The Signal Hill City Council approved an economic analysis for their Opportunity Study Areas (OSA) on March 25. This document outlines the potential economic and residential future of the city.
The analysis will inform city officials on how to redevelop Signal Hill to ensure economic growth, job creation and a diverse tax base. Councilmembers will have to approve new zoning designations for the chosen parts of the study, with the goal to boost opportunities for residential, retail, office, industrial and hotel development.
At the heart of the project is the creation of a central gathering place for residents, referred to both as a business district and town center. This area does not have a chosen location as of now, but will serve to bring neighbors together, and create a public identity for Signal Hill that is unique to the city’s history and aspirations, according to the analysis.
Councilmembers envision a place that balances community and economic activity, is experience-oriented, and is not just a place to buy things.
The OSAs are broken down into three areas in Signal Hill:
- OSA 1 (light green) – 56.33 acres
- OSA 2 (light blue) – 93.46
- OSA 3 (dark blue) – 60.31 acres
This accounts for roughly 210 acres of Signal Hill, or around 15% of the city. The areas included in the study span from Atlantic Avenue to Temple Avenue from east to west, and from Spring Street to Willow Street north to south.
What Does the Area Look Like Now?
Most of this land is currently used for industrial/manufacturing buildings, occupied by oil production or is abandoned. A complete breakdown of the usage of the area at the moment:
- 48% industrial/manufacturing
- 34% abandoned or oil production
- 7% commercial/retail
- 7% offices
- 3% public facilities
- 1% multi-family residential
Most of the land in the OSAs is currently zoned for retail and industrial, as well as land between Cherry Avenue and Walnut Street already zoned for a town center. City Manager Carlo Tomaino said the boundaries of the OSAs may change a bit going forward.
Three housing developments (still under progress) sit inside the largest OSA:
- Orange Bluff, with 290 potential units
- Walnut Bluff, with 90 potential units
- Town Center NW, with 267 potential units
The Future of Signal Hill
Signal Hill City Council appointed Placeworks, a California-based planning, design and environmental consulting firm, to create the economic analysis. The 100-page document covers market demands, development trends and economic opportunity.
“Our data driven process starts with an economic study area to identify, based on market demand, what the potentially best fit is to benefit our community as we look to grow and move forward,” Tomaino said.
The future of Signal Hill, as laid out in the OSA, features an increase in retail and housing. Rather than focus on one, the business district/town center aims to create a symbiotic relationship between the two. Main land uses proposed in the OSA are residential, retail, hotels, offices and industrial.
The exact location for the town center has not been decided yet, but the 2023-2028 Strategic Plans envisions a town center around the intersection of Willow Street and Cherry Avenue.
Residential
Building more residential homes will not only address the need for housing in Southern California, but can help the city achieve its other goals. Having more residents will contribute to the city’s sales tax by having more people buying locally, as well as contributing to the sense of community by having more people activating the town center.
“It’s well understood that we have underdeveloped housing in Southern California and there’s pent-up demand,” said Steve Gunnells, chief economist for Placeworks. “What we hear from developers is their challenge is finding a piece of land they can build on.”
At the moment, the economic analysis states that for-sale townhomes are ideal for development, but Placeworks is hopeful that multi-family developments will be feasible as well. Options pitched for residential developments include a townhome community of 10-24 units per acre, two to three stories high. The City will also consider multifamily developments with 24 units per acre, three to seven stories high, with a ground floor retail and common open space.
Hotels
Signal Hill competes with Long Beach and Lakewood to attract visitors to their hotels. Around the OSA, there are nine hotels competing with Signal Hill, but the city’s hotels report near-pre-pandemic numbers, with occupancy rates reaching almost 80%.
Tomaino pointed out that the land on Spring Street and Atlantic Avenue is the largest city-owned property they have, so it would be ideal for a hotel if that’s the direction the city wants. He added that the City should make a decision on that property sooner rather than later, so Signal Hill’s hotel market isn’t dictated by surrounding cities.
“While most of the things we do with our neighbors, our cities, are very cooperative in nature, economic development is competitive,” Tomaino said.
Mayor Keir Jones added that another hotel would be beneficial with the 2028 Olympics being hosted in Los Angeles and Long Beach.
Retail
Within the OSAs, store options include specialty food stores, health and personal care stores, furniture and home stores, clothing and accessory stores, book stores, bars and wine and cocktail lounges. Possibilities just outside the boundaries of the OSAs include liquor stores, gasoline stations, auto parts stores, lawn and garden stores as well as sporting goods and hobby stores.
Councilmembers also talked about a retail space that is unique to Signal Hill, and the possibility of an adaptive reuse space similar to The Camp in Costa Mesa and the River Street Marketplace in San Juan Capistrano.
“I don’t envision a destination spot for a major attraction, but something hopefully in the middle,” said Councilmember Lori Woods. “For me that’s the challenge … creating a unique gathering space that’s not a stamp out from Steelcraft or stamped out from other ‘unique’ gathering spaces that pop up and look the same.”
Office and Industrial
The office market has not recovered since the pandemic, the economic analysis states. However, there is a stronger demand for industrial space, as they get priced out of other markets. This can include office and work space for aerospace companies and other technical industries.
Next Steps
The city council will conduct check-ups with the City Manager’s Office, and are expecting an update on overlay zones and a location for the town center in the fall. They also hope to finalize the boundaries of the OSA by then.
