The right to the city is not merely a right of access to what already
Transcription
The right to the city is not merely a right of access to what already
UNIVERSITY OF CALIFORNIA Los Angeles Fighting for a Right to the City: Collaborative Research to Support Community Organizing in L.A. Community Scholars Program 2006-2007 A Comprehensive Project submitted in partial satisfaction of the requirements for the degree of Master of Arts in Urban Planning by Students Community Scholars Project Managers Janice Burns Lydia Avila-Hernandez Gilda Haas Andrea Contreras Lidia Castelo Jacqueline Leavitt Michael Matsunaga Steve Díaz Revel Sims Polo Muñoz Alison Dickson Quesada Miguel Nuñez Colleen Flynn Nirva Parikh Scott Goodell Maureen Purtill Sumaiya Islam Jennifer Tran Melissa Nicholas M. Dolly Valenzuela Robert Rubio Enrique Velazquez Fabiola Sandoval Nancy Villaseñor Moníc Uriarte Takatoshi Wako Paul Vizcaino UCLA Department of Urban Planning, School of Public Affairs Center for Labor Research in Education, Institute for Research on Labor and Employment (IRLE) DISCLAIMER Neither the University of California nor the Department of Urban Planning, School of Public Affairs either support or disavow the findings in this project. The University affiliations are for identification purposes only; the University is not involved in or responsible for the project. TABLE OF CONTENTS List of Figures and Tables ……………………………………………………………… iv Acknowledgements and Dedication …………………………………………………….vii Student and Community Scholar Biographies ………………………………………… viii 1. INTRODUCTION ………………………………………………………….…..1-1 2. BUILDING A BASE TO PREVENT DISPLACEMENT IN LINCOLN HEIGHTS: Emancipatory-Action Research for a Healthy, Sustainable Community 2.1 Introduction……………………………………………………………..………2-2 2.2 Community Centered Praxis: Creating a Community Profile…………………2-12 2.3 Possible Threats and Challenges……………………………………………....2-26 2.4 Relevant Interventions to Prevent Displacement and Build a Healthy, Sustainable Community………………………………………………………..2-27 2.5 Concluding Remarks: Limitations and Possibilities…………………………...2-35 3. BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE 3.1 Introduction……………………………………………………………….…….3-2 3.2 Snapshot of Leimert Park……………………………………………………….3-3 3.3 Defining Problems …………………………………………………………….3-11 3.4 Redevelopment and Community Awareness…………………………………..3-14 3.5 Lessons from Little Tokyo for Save Leimert …………………………………3-22 RIGHT TO THE CITY – COMPREHENSIVE PROJECT i 4. GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES 4.1 Introduction……………………………………………………………………..4-5 4.2 Industrial Land in Los Angeles: Past and Present……..……………………….4-7 4.3 Major Players in the Debate…………………………………………………...4-12 4.4 Geography of Downtown Los Angeles………………………………………..4-18 4.5 A Profile of the Area…………………………………………………………..4-22 4.6 Industries, Establishments, and Employment………………………………....4-29 4.7 Economic Impact Assessment of Downtown Manufacturing: IMPLAN Analysis…………………………………………………………….4-42 4.8 Case Studies: Strategies and Best Practices…………..……………………….4-47 4.9 Recommendations……………………………………………………………..4-58 4.10 Conclusion……………………………………………………………………..4-63 5. TRANSIT AND HOUSING DEVELOPMENTS: Challenges and Opportunities For South Los Angeles 5.1 Introduction……………………………………………………………………5-2 5.2 ROW Background: Location, Surrounding Area, Stakeholders, and Equity….5-3 5.3 Investment Policies, Political Realities, and Transit Ridership in Los Angeles……………………………………………………………………5-11 5.4 Metro and the ROW…………………………………………………………...5-13 5.5 How Can Community Members Use the ROW Section in Their Neighborhood? ..................................................................................................5-18 RIGHT TO THE CITY – COMPREHENSIVE PROJECT ii 5.6 Current ROW Use……………………………………………………………..5-19 5.7 Examples of ROW Use for Housing Construction……………………………5-21 5.8 Joint Development Samples and Opportunities……………………………….5-24 5.9 What Would it Take to Replicate the Previous Housing Examples in Southeast Los Angeles?.....................................................................................5-27 5.10 Recommendations for FCCLT and NIC………………………………………5-30 5.11 Conclusions…………………………………………………………………...5-31 6. THE RIGHT TO ORGANIZE: A FEASIBILITY STUDY FOR A CITYWIDE TENANTS’ UNION FOR LOS ANGELES 6.1 Introduction……………………………………………………………………..6-3 6.2 Tenant Demographics…..……………………………………………………....6-4 6.3 Current Landscape….………………………………………………………….6-10 6.4 Existing Resources……….…………………………………………………....6-20 6.5 Best Practices…………………………………………………………………..6-26 6.6 Vision for the Future…………………………………………………………...6-32 6.7 Organizational Challenges……………………………………………………..6-41 6.8 Conclusion……………………………………………………………………..6-43 7. CONCLUSION …………………………………………………………………7-1 RIGHT TO THE CITY – COMPREHENSIVE PROJECT iii List of Figures, Tables & Maps Figures Figure 2-1: Figure 2-2: Figure 2-3: Figure 2-4: Figure 2-5: Figure 2-6: Figure 2-7: Figure 2-8: Figure 3-1: Figure 3-2: Figure 3-3: Figure 3-4: Figure 3-5: Figure 3-6: Figure 3-7: Figure 3-8: Figure 3-9: Figure 3-10: Figure 3-11: Figure 3-12: Figure 4-1: Figure 4-2: Figure 4-3: Figure 4-4: Figure 4-5: Figure 4-6: Figure 4-7: Figure 4-8: Figure 4-9: Figure 4-10: Figure 4-11: Figure 4-12: Figure 4-13: Detail from the mural "The Learning Tree" by Alfredo Diaz Flores, Plaza de la Raza, Lincoln Heights ……………………………………...2-2 Lincoln Heights in the Greater Los Angeles Area Focus on zip code 90031 ……………………………………………………….....2-3 Industrial Laundry Union Workers ……………………………………..2-9 Median Household Income, Households Paying More than 50 Percent Income on Rent...….………...................................................................2-16 Advertisement for luxury housing in Lincoln Heights ………………..2-18 New and Planned Improvements in Lincoln Heights …………………2-20 Concentrations of Residents with Educational Attainment of a Bachelors Degree and Youth Serving Agencies in Los Angeles……...2-23 Industrial Laundry Union Workers ……………………………………2-37 Location of Leimert Park and Leimert Park Village …………………...3-3 Location of Leimert Park Village ………………………………………3-4 Original Olmsted Plan for Leimert Park Village ……………………….3-5 Rendering of Community Plan for Leimert Park ………...…………….3-5 Median Income Distribution in Leimert Park and its Vicinity …………3-6 Aerial Photographs of Leimert Park in 1965 and 2006 ………………...3-7 Aerial Photographs of Leimert Park Village in 1984, 1993, 2006 ……..3-7 Demographics of Leimert Park and its Vicinity …………...………….3-10 Rent Increase in Leimert Park Village ………………………………..3-13 CRA Crenshaw Redevelopment Area ………………………………...3-15 Photo of Leimert Park Village Commercial/Residential Streets ……...3-15 Draft Master Plan of Leimert Park Village Shown in the Public Meeting on March 2006 ………………………………………………3-18 Los Angeles Wards, 1908 ……………………………………………....4-7 Los Angeles Oil Rigs …………………………………………………...4-8 Los Angeles Bridge ………………………………………………….....4-9 Biscuit Company Lofts ………………………………………………..4-10 Decision Making Process ……………………………………………..4-12 Community Planning Flow Chart (2006) ………………………….….4-13 Land Use: Greater Downtown Area ……..…………………………....4-18 Data Areas ……………………………………………………….……4-19 Downtown Districts ………………………………………………..….4-20 Downtown Area of Focus ……………………………………………..4-21 Vulnerable Populations in Los Angeles ………………………………4-23 Value Trend of Industrial Land in Downtown Los Angeles …….……4-27 Data Areas and Area of Focus ………………………………………...4-29 RIGHT TO THE CITY – COMPREHENSIVE PROJECT iv Figure 4-14: Figure 4-15: Figure 5-1: Figure 5-2: Figure 5-3: Figure 5-4: Figure 5-5: Figure 5-6: Figure 5-7: Figure 5-8: Figure 5-9: Figure 5-10: Figure 5-11: Figure 5-12: Figure 6-1: Figure 6-2: Figure 6-3: Figure 6-4: Figure 6-5: Downtown Industries: % of Establishments by Size and Manufacturing Sector - % of Establishments by Size………………....4-36 Manufacturing Employees’ Estimated Pay Range in the Downtown Area …………………………………………………..…..4-38 ROW Examples …………………………………………………..….…5-3 Zoning Imposed on Aerial of ROW …………………………………....5-5 Industrial Zone with Residential Land Uses …………………………....5-6 Residential Use with Rear Yard Adjoining ROW ……………………...5-6 Leased Temporary Parking Areas Along ROW ………………………..5-7 Proposed Expo Line and Existing Rail in Los Angeles ………….……5-16 Del Mar Apartments, Gold Line Station in Pasadena, CA ……………5-22 Cross Section of Light Rail with Development Above ……………….5-22 Holly Street Apartments, Gold Line Station in Pasadena, CA …….….5-23 Mercado Apartments, Barrio Logan, San Diego, CA …………………5-24 Land Parcel Owned by METRO in SELA ……………...…………….5-26 Taco Stand in Parcel Owned by METRO in SELA …………………..5-27 Poverty Rate in Each Region of L.A. County …………………….....…6-5 Household Income Between 2004-2006 …………………………….….6-6 Renter Occupied Households by Race of Householder …………….…..6-7 Occupied Housing Units by Race of Householder ………………….….6-8 Power Analysis ………………………………………………………..6-12 Tables Table 2-1: Table 2-2: Table 3-1: Table 3-2: Table 3-3: Table 4-1: Table 4-2: Table 4-3: Table 4-4: Table 4-5: Table 4-6: Table 4-7: Table 4-8: Table 4-9: Table 4-10: Amcal Housing Developments in the Avenue 26 TransitOriented Development Projects ………………………………………2-17 Case Studies: A Brief Overview ...…………………………………….2-29 A Current Inventory of Businesses in Leimert Park Village ..………….3-8 The Timeline Related to Leimert Park Visioning Process …….……...3-20 Potential List of Stakeholders for Leimert Park Community Council …………………………………………………………….…..3-24 Impact of Land Use Conversions on Property Values …………..……4-27 Total Establishments and Employment: All Industries …………..…...4-30 Total Establishments by Type of Industry and Area ………………….4-31 Total Employment Estimates by Type of Industry and Area …………4-32 Total Manufacturing Establishments and Employment ………………4-33 Establishments by Type of Manufacturing …………………………...4-34 Employment by Type of Manufacturing ……………………………...4-35 Wage Estimates by Manufacturing Type ……………………………..4-37 Wage Estimates by Occupation ………………………………………4-38 Change in Establishment and Employment in All Industries (‘98 to ‘03) ………………………………………………....4-39 RIGHT TO THE CITY – COMPREHENSIVE PROJECT v Table 4-11: Table 4-13: Table 5-1: Table 5-2: Table 6-1: Table 6-2: Table 6-3: Table 6-4: Change in Establishment and Employment in Manufacturing (‘98 to ‘03) …………………………………………....4-40 Summary of Output Impacts, Summary of Employment Impacts, and Summary of Labor Income Impacts ……………………………...4-43 Evaluation of Alternatives with Initial Screening Criteria …………....5-15 Current ROW Use …...………………………………………………..5-20 Tenant Background and Landlord Satisfaction ……………………….6-37 Landlord Satisfaction Distribution ………..…………………………..6-38 Tenant Support of a Citywide Tenants Union ……………….………..6-39 Tenant response to the Role of a Tenant Union ………………………6-41 Maps Map 6-1: Map 6-2: Map 6-3: Percent of Renter Occupied Households in Los Angeles ………………6-9 Population Density of Los Angeles …………………………………...6-10 Tenants’ Rights Organizations in Los Angeles ……………………….6-26 RIGHT TO THE CITY – COMPREHENSIVE PROJECT vi ACKNOWLEDGMENTS AND DEDICATION This project is dedicated to the residents and community members of Los Angeles who have been denied a seat at the table; with special love also to the folks organizing in New Orleans to demand a Right to their City. As students and community scholars, we are committed to align our struggles with yours, and demand together that all people have a right to claim their city; create it to their heart’s desire; and demand that social and economic justice be prioritized over private property rights. We would also like to take this opportunity to express our deep appreciation for the tireless support and guidance of our faculty and project coordinators, Gilda, Jackie and Revel. You dedicate your lives to work for social justice, connect university resources with communities, and facilitate the processes by which we can join you in that struggle. In solidarity and with much respect, ~ The Scholars and Students of the Comprehensive Project June 2007 RIGHT TO THE CITY – COMPREHENSIVE PROJECT vii STUDENT AND COMMUNITY SCHOLAR BIOGRAPHIES Lydia Avila-Hernandez is a community organizer with East L.A. Community Corporation in Boyle Heights. She works with low-income tenants to advocate for social and economic justice through accountable development. In addition to her work organizing a leadership base of Boyle Heights residents, Lydia also conducts research for the organization on current developers and development plans, housing policy and the community. She has launched two neighborhood committees and is currently working on a house meeting campaign. Lydia was born, raised and currently lives and works in Boyle Heights. In the past two years she has witnessed a steady increase in tenant harassment and illegal evictions by landlords driven by a desire to increase profit without respect for the local community. Her work and personal experiences with the changes in her community has made it clear that the current struggle for communities of color in Los Angeles must establish and demand the right to their city. Lydia joined the community scholars program in order to work with other organizers to devise a strategy against gentrification that will give low-income people of color ownership of their communities through the preservation of social networks, improved housing opportunities, and selfsufficiency. Janice Burns is a second year MA in Urban Planning candidate, studying Social Planning and Analysis. The daughter of Panamanian immigrants, she grew up in Los Angeles and became the first in her family to receive a degree- a BA in Sociology and Black Studies from UC Santa Barbara. She currently works for the City of Long Beach Housing Services Bureau, where she seeks to combine her social service and planning experience towards the development of service-enriched housing and neighborhoods. Lidia Castelo is a tenant organizer for Strategic Actions for a Just Economy (SAJE). She is a charismatic leader that encourages her community leaders to empower their neighbors, friends, and family. She leads by example and demonstrates her full commitment and accountability in this passion that derives her to make a difference. Lidia is actively working on a campaign to bring down one of L.A.’s biggest slumlords, as well as smaller slumlord campaigns, and to provide individual tenant support. In doing so, she organizes tenants by bringing awareness of their rights and an understanding of the socio-economic impacts on their communities in order to mobilize change through the leadership efforts in all. Through her work as a tenant organizer, she has learned first hand the direct impacts of how gentrification victimizes working class communities; therefore, it was essential for both community scholars and students to collaboratively exchange ideas and create strategies for the betterment of their communities. RIGHT TO THE CITY – COMPREHENSIVE PROJECT viii Andrea Contreras is a second year Masters student of UCLA’s Urban Planning program. Prior to attending UCLA, she earned a Bachelor of Arts from Pitzer College which allowed her the opportunity to learn about the economic and social empowerment of an Untouchable subcaste in Kathmandu, Nepal. Andrea has worked with organizations dedicated to improving workers’ lives and communities, including the Service Employees International Union, the International Brotherhood of Teamsters, the International Brotherhood of Electrical Workers, and Communities for a Better Environment. The chance to work with community activists and apply her scholarship to the creation of a more just Los Angeles is what drew her to the comprehensive project. Steve Diaz is an organizer for The Los Angeles Community Action Network, where he works with homeless and low-income residents in Downtown Los Angeles. Steve has been organizing since he was 19 years of age. He joined the Community Scholars class to engage in the collaborative effort of joining theory and every day struggle in the fight for social and economic justice as it relates to the Right to the City. Alison Dickinson Quesada is Deputy Director of the Coalition for Economic Survival (CES). She assists tenants in protecting their rights, fighting for improved building conditions, and organizing powerful and effective tenant associations. Alison coordinates CES' Affordable Housing Outreach Program which organizes tenants living in at-risk federally subsidized housing. Key to Alison's work is the development of tenant leaders and the training and growth of other tenant organizers within CES. Before joining CES, Alison worked as an organizer for both the Service Employees International Union and ACORN in Ohio, West Virginia, and Kentucky. Alison received her Bachelor's Degree in International Relations from George Washington University in Washington, D.C. Colleen Flynn is a civil rights attorney and a member of the National Lawyers Guild. An interest in learning the roots of the rapid gentrification of Los Angeles and how to shift control over the built environment from those with capital and political power to local communities brought her to the Community Scholars class. Scott Goodell graduated from UC Santa Cruz in 2003 with a major in Latin American and Latino Studies. He is a passionate advocate for immigrant and workers rights, having worked with both community-based organizations and labor unions in Los Angeles. Apart from his formal work, Scott is a competent volunteer bicycle mechanic at the L.A. Bicycle Kitchen, a nonprofit learning space dedicated to making bicycles more accessible to all people. Sumaiya Islam is a community organizer working with primarily Bangladeshi tenants in Koreatown. As a youth organizer she works with South Asian youth to build leadership. The need for us to obtain more of a voice through more decision-making power is becoming clearer to a larger number of minority communities. Therefore, we need to build alliances to oppose slumlords and the systematic gentrification of our RIGHT TO THE CITY – COMPREHENSIVE PROJECT ix neighborhoods. She is a member of the APPPCON equitable housing committee. She came to the class to better understand how other communities have fought gentrification and regained the rights to their own cities. It is imperative for smaller hidden communities to be part of the struggle and understand the long term implications of the developments that are happening around them. Michael Matsunaga is a second year Urban Planning student with an emphasis in Social Planning and Analysis. Born and raised in the harbor area of Los Angeles, he has a vested interest in the City. He is particularly interested in the intersection between education and planning issues. Polo Muñoz is a second year Urban Planning MA candidate. His concentration is Community Development and the Built Environment with an emphasis in Affordable Housing Development. He has interned with nonprofit housing organizations in Los Angeles and San Francisco and plans to continue doing work in housing development. Melissa Nicholas spent this past year as an Americorp member at Habitat for Humanity, working as the Volunteer Coordinator as well as on the construction site. Working with affordable housing advocacy led her to join the Community Scholars to learn more about tenants’ rights and gentrification. Before Habitat for Humanity she lived in Oaxaca, Mexico, studying alternative economic systems to Free Trade. Growing up in a multiracial family, she will be studying multi-racial/multi-cultural identities at Claremont Graduate University next year. Miguel Nuñez is an Urban Planning student with an emphasis in transportation, having interests in policy, equity, and sustainability. He has worked for the City of West Covina for two years and will be working in the field of transportation planning upon completion of the program. A desire to explore community-based planning and improve accessibility, equity, and transportation drew him to the comprehensive project. Nirva Parikh formally worked with the South Asian community on Civil Rights and housing issues for two years before coming to the Department of Urban Planning. As a student in this program, she focused on issues relating to workers rights, labor, and community development. In the future she plans to work in labor. Maureen Purtill worked with Migrant families in Northern California for three years before she decided to enter the Planning program so that she could begin to address the underlying root causes of social, political and economic injustice facing her community. While in Los Angeles she has worked with the Figueroa Corridor Community Land Trust, developing interactive popular education trainings with residents to address the need for community control of land. She is dedicated to ensuring that University resources and research are grounded in the realities and needs of low-income residents, and hopes that her work will contribute to the deconstruction of white supremacy in herself and in our society. RIGHT TO THE CITY – COMPREHENSIVE PROJECT x Robert Rubio was born and raised in the Los Angeles region. Currently a resident of Leimert Park, he owns and operates a Los Angeles based furniture business and is one of the founding members of the Save Leimert Neighborhood Coalition. Also, he is a board member of the Crenshaw Community Advisory Council to the CRA. He was drawn to the Community Scholars Program out of a desire to help his community defend itself from unwanted redevelopment and to learn from other scholars facing similar situations. Also, he was eager to expose the plight of Los Angeles' African American community to future planners with the hope of respecting the rights of ethnic enclaves in future community planning and development. Fabiola Sandoval is an Asset Manager for Esperanza Community Housing Corporation located south of downtown in the Figueroa Corridor. She oversees property management, complies with housing rules and regulations, and monitors the financial operations of nine affordable housing multi-family buildings. She also coordinates tenant relations in management through the creation of a first tenant advisory committee. Fabiola was born and raised in the Figueroa Corridor; now a resident of Lincoln Heights and mother to a two year old – she is dedicated to fighting for an equitable city through her work in social justice. On her off time you can find her writing about feminism, motherhood and documenting every-day resistance. Jennifer Tran is a second year Urban Planning Masters Candidate with an emphasis in Regional International Development. Prior to entering the Masters program, Jennifer earned her BA in Sociology and a minor in Labor and Workplace Studies at UCLA. She is currently employed as a Research Assistant for Professor Abel Valenzuela on his work pertaining to the day laborer population. She is also undertaking a contract research project for CIPHER to assess the potential of the Green Building Manufacturing industry in Los Angeles. Moníc Uriarte is a long-time resident activist and mother of four beautiful children. In addition to supporting and spending time with her family, Moníc volunteers as a member of the board of directors for the Figueroa Corridor Community Land Trust, works TWO full-time community-based jobs, AND chose to participate in the Community Scholars program to further support her community and collaborate with other organizers and students. As a single mother struggling to make ends meet, she understands very well the urgency of the economic and social hardships of her neighbors. With unbelievable spirit and love, she inspires all of us to continue in the fight to create a more just and equitable society. Dolly Valenzuela worked as a field deputy for Councilmember Ed Reyes for two years. Her experience in the community persuaded her to attend UCLA Planning School in hopes of continuing to fight for equitable distribution of resources. While in school, she continued to work for the Councilmember in the capacity of a Planning Intern. Her work included assistance with planning issues, research, policy analysis, RIGHT TO THE CITY – COMPREHENSIVE PROJECT xi as well as continued community outreach. She is dedicated to the fight for affordable housing, responsible economic development, and continued community participation. Gilbert E. Velasquez (Kike) is a second year Urban Planning Masters student with an emphasis in Economic Development and Affordable Housing. Kike, a native from El Salvador, immigrated to the US in the 80s due to the civil war in his country. He earned his Bachelors of Arts from Cal State Northridge in Urban Studies and Planning and has worked for more than twenty years as a community organizer in Los Angeles’ urban trenches. Nancy Villaseñor is a second year UCLA Urban Planning student interested in economic development and labor rights issues. Originally from Long Beach, she received her Bachelor of Arts from UCLA and went on to work for the Instituto de Educación Popular del Sur de California (IDEPSCA) where she is now a board member. The opportunity of being able to combine academic scholarship with community activism is what brought her to the Community Scholars class. Prior to coming to the United States, Takatoshi Wako worked for the Ministry of Land, Infrastructure and Transit (MLIT) with the Japanese Government as a technical official for four years. While working at the local level in Japan, he saw a need to improve the citizen participation process in the creation of large public infrastructure projects in Japan. His goal through the Community Scholars Program at UCLA is to gain skills and knowledge related to urban planning which are applicable to his professional work in Japan, and with this knowledge, work towards a more transparent and effective decision making process in which the public plays a greater role. RIGHT TO THE CITY – COMPREHENSIVE PROJECT xii 1.1 INTRODUCTION The right to the city is not merely a right of access to what already exists, but a right to change it after our heart's desire. We need to be sure we can live with our own creations (a problem for every planner, architect and utopian thinker). But the right to remake ourselves by creating a qualitatively different kind of urban sociality is one of the most precious of all human rights. David Harvey “The Right to the City” (2003) The Comprehensive Project at UCLA promotes the collaborative efforts of Urban Planning graduate students and Community Scholars to examine pressing issues. Community Scholars, who are also full or more-than-full time organizers, health promoters and community residents, contribute their invaluable lived experiences to the co-investigation process with graduate students to develop research that is both informed by and informs work being done to create a more just society in their communities. The Community Scholars program is a joint effort by UCLA’s Urban Planning Department and The Center for Labor Research and Education to create an academic forum where labor and community leaders can engage in applied research with students and faculty on salient planning topics. This year’s project was unified by an exploration of issues related to the Right to the City movement. The genesis of this document can be traced to a focus on gentrification and land reform, and has flourished into a challenging discussion about the definition of the Right to the City. The union between the Community Scholars program and the Comprehensive Project has brought together individuals with different personal and professional backgrounds, different social and political perspectives, and different approaches to creating change. The accumulation of such eclectic social and intellectual capital contributed to a final product that ultimately introduces different means to achieving the same overarching end – the creation of a just and equitable city. While unbounded inequities have prompted the Right to the City movement to be advanced throughout global communities, our projects specifically focus on the application of this philosophy in the City of Los Angeles. We focus on Los Angeles for many reasons. First, the endemic inequality and tension that exists in historical and contemporary Los Angeles demands a more encompassing framework to combat the array of social injustices. Second, the City is personally significant in that it retains the history and will shape the future for many of the scholars and students. Los Angeles is a paradoxical place as it has served as the gateway to opportunity for past and current generations and, at the same time, threatens the quality of life of our families, friends, and communities. It is without a doubt that the projects have some level of personal significance to each member partaking in the Comprehensive Project. Finally, and maybe most importantly, the present social, economic, and political climate necessitates a Right to the City dialogue and movement in Los Angeles. The conditions of present-day INTRODUCTION - RIGHT TO THE CITY – COMPREHENSIVE PROJECT Page 1-1 Los Angeles can simply be described as a climate of great possibility. For some, it brings the possibility of great financial reward and for others it brings great possibility of further loss and marginalization. Rampant development throughout Los Angeles is just one issue that exemplifies the dichotomy of possibility in the City. A hot real estate market, coupled with the political and social push to revitalize the City, has created a market ripe for developers and land-owners. As this small segment of society stands to reap great rewards, low-income people of color who unduly face tenuous living conditions stand to receive questionable to marginal social or economic benefits. It is for these reasons and conditions that each group embarked on their projects. Grounded in their own history, each project attempts to address current material conditions, redistribute benefits, and alter decision-making processes that abet social injustices. In Chapter 2, concerns over gentrification in Lincoln Heights led to a project that hopes to serve as a model to other communities in determining appropriate interventions to create sustainable and healthy development without displacing current residents. In Chapter 3, cultural preservation and business gentrification are the focus of community groups that are actively opposing city sponsored redevelopment efforts that will change the character of Leimert Park. Chapter 4 examines the potential loss of quality jobs for local residents as downtown development places immense pressure on adjacent industrial land. Chapter 5 explores the potential for affordable housing development and more equitable investments in public transit that can contribute to improving the quality of life for residents along an unused right of way belonging to Metro. Finally, Chapter 6 explores the feasibility of creating a citywide tenants union that will address the problems tenants face (unjust evictions, unaffordable housing, slum housing, rent increases) by uniting the efforts of organizations already fighting against these injustices. The processes by which we create our urban existence are also full of tensions. Exploring the balance between democracy and development, policy and free-market economics, and local and regional approaches can lead to fruitful exercises that help identify what balance of these tensions results in a fair and equitable society. Unfortunately, Los Angeles, like many urban centers, has witnessed potentially cooperative viewpoints degenerate into conflicting and damaging battles where the status quo sanctions inequality, top-down decision-making, and the primacy of private property rights. Meanwhile, acceptance of the status quo has been institutionalized into the governmental entities that are assigned to protect the rights and ensure the well-being of all Angelinos. Historically, a Right to the City has been narrowly construed to consider the extent and varying dimensions of private property rights. We reject this conception for a much broader definition of the Right to the City that is not based on ownership or property rights. Furthermore, we advance the notion that to address the ills that face our urban populations we must put forth a robust and expansive set of ideas that ensure and enhance our many Rights to the City including stable and secure affordable housing, community INTRODUCTION - RIGHT TO THE CITY – COMPREHENSIVE PROJECT Page 1-2 involvement in the planning process, transparent decision-making, and access to transportation and quality jobs. On its own, each chapter seeks to address issues of inequality, displacement, and decision-making. Unified as a single work, the text asserts various Rights to the City in hopes of – as Harvey writes – making a better city that provides a desirable quality of life for all of its inhabitants. Admittedly, this is neither a simple nor or short-term goal, and is rife with obstacles and opponents, yet it is something to which we are committed. INTRODUCTION - RIGHT TO THE CITY – COMPREHENSIVE PROJECT Page 1-3 INTRODUCTION - RIGHT TO THE CITY – COMPREHENSIVE PROJECT Page 1-4 Chapter 2 BUILDING A BASE TO PREVENT DISPLACEMENT IN LINCOLN HEIGHTS: Emancipatory-Action Research for a Healthy, Sustainable Community Scott Goodell Melissa Nicholas Maureen Purtill Fabiola Sandoval Moníc Uriarte M. Dolly Valenzuela BUILDING A BASE TO PREVENT DISPLACEMENT IN LINCOLN HEIGHTS: Emancipatory-Action Research for a Healthy, Sustainable Community Page 2-1 2.1 INTRODUCTION Communities in Los Angeles and in urban areas around the globe have been deeply concerned with the destabilizing and destructive effects of gentrification. Primarily lowincome communities of color have been involuntarily displaced as economic, political, and social changes have resulted in an influx of upper-middle class residents to urban centers. As this process continues to uproot families, destroy social networks, and unravel the cultural fabric of communities, residents and organizers search for interventions to prevent displacement, and ensure that existing residents claim the right to their city. Joining as researchers, organizers, and community residents, we hope that this project contributes to that effort, and that it be a starting point for building a base of organized resistance to prevent displacement in Lincoln Heights and elsewhere. Figure 2-1 “The Learning Tree” source: Alfredo Díaz Flores Lincoln Heights is home to primarily lowincome renters of color. The community is located just northeast of downtown Los Angeles, and until recently has been one of the last few affordable areas to live for lowwage workers and their families. We have identified Lincoln Heights as a community that is potentially at risk of becoming gentrified, and have chosen to work with community residents there to develop a project that will hopefully serve as a guide to communities that face similar threats of displacement due to gentrification. Utilizing an “emancipatory action research” framework we begin with the lived realities of residents of Lincoln Heights. To contribute to the discussion started by residents we then provide some of the underlying historical, political, economic, and planning forces that have worked to shape the community in which they live. We also acknowledge and examine some of the specific threats to the stability of the community so that we can begin a discussion about how to respond to them. And finally, based in the emergent themes from discussions with residents we review a number of case studies from other communities who offer us lessons that may be specifically appropriate to organizing in Lincoln Heights. This work does not by any means attempt to provide the perfect answer to the problem of displacement, but it does hope to stimulate an engaged community-based conversation and incorporate theory and practice into long term projects that will ensure residents in Lincoln Heights retain a right to their community. We hope to support proactive processes of engaged community economic development that create sustainable and BUILDING A BASE TO PREVENT DISPLACEMENT IN LINCOLN HEIGHTS: Emancipatory-Action Research for a Healthy, Sustainable Community Page 2-2 healthy communities for working class and so-called marginalized peoples in Lincoln Heights and elsewhere. We do not need to wait for the eviction notices to arrive to start organizing against displacement and we can not rely on a system that is rooted in white supremacy and capitalism to ensure the needs of low-income renters are met. We do need to create healthy cities that value all people regardless of income, race, or any other socially constructed identity used to marginalize us. Rights are only honored if they are fought for, and the fight against gentrification is the fight for a Right to the City for all of its inhabitants. Figure 2-2 Study Area: Lincoln Heights, Los Angeles CA 90031 source: www.nkca.ucla.edu 4/15/07 Lincoln Heights is adjacent to both downtown L.A., as well as many other communities where the effects of gentrification are more visible. Similar neighborhoods surrounding the central core of Los Angeles have already been culturally and socially uprooted as many working class communities have been disrespected and displaced to make room for upscale residents and their housing and social needs. While the “gentrifiers” are not always necessarily white, we feel that this process is one that is rooted in ideologies of white supremacy that do not value the cultural fabric that is being destroyed when people are involuntarily displaced (Yancey, 2004). When one group moves in and is allowed to displace another group, the pre-existing residents in effect become “othered” and unwanted, while the newcomers are seen as better citizens and more desirable in terms of economic development. BUILDING A BASE TO PREVENT DISPLACEMENT IN LINCOLN HEIGHTS: Emancipatory-Action Research for a Healthy, Sustainable Community Page 2-3 In 1873 the Southern Pacific Railroad built a link to L.A. from the East Coast and the Santa Fe Railroad built a second link to the area in 1885. This brought thousands of new settlers, and in 1889, horse drawn streetcars were replaced by electric cable cars, further facilitating migration into the neighborhood. With the proximity of the railroad and relatively inexpensive cost of land, many new industries were established in the area, including wineries, bakeries, a fireworks company, a rock and gravel plant, and a fertilizer manufacturer. During this time, many blue collar immigrant workers from Germany and Italy who worked in the new industry settled in Lincoln Heights (Bermudez, 2003). Lincoln Heights has always been an ethnic enclave. Currently, the majority of residents are of Mexicano descent with an upsurge in the Chinese and Vietnamese communities. During the coming of the railroads in the 1880s more and more Mexicano/as began to move to the communities of Boyle Heights, Chavez Ravine, and Lincoln Heights (Acuña, 1984). Due to this long residential history, the existing cultural fabric is valued and indispensable for current residents. Surveys undertaken for this project demonstrated that since individuals had family and friends living in the community, long standing relationships contributed to their desire to stay in Lincoln Heights. Although it was not mentioned in our surveys, we want to acknowledge that Lincoln Heights has a rich history of resistance. By 1950, the Community Service Organization (CSO) had developed three branches in East Los Angeles - Boyle Heights, Belvedere, and Lincoln Heights. With support from the National Industrial Areas Foundation, Fred Ross founded the CSO in California after WWII. Saul Alinsky, César Chavez, Dolores Huerta and Tony Rios were among the organizers involved. Along with other community organizations the CSO registered voters and supported Chicano candidates. These groups also engaged in such diverse activities as language and citizenship education, court challenges against school segregation, and assistance in obtaining government services. The CSO developed a strong community-based voice, calling attention to the miles of unpaved streets and lobbying for the improvement of traffic lights and signals, as well as fighting for the construction of recreational facilities. According to the Los Angeles Daily News, CSO was "one of the nation's finest demonstrations of grassroots democracy in action” (Javier, 1990). Twenty-seven years later students, parents, and teachers from Lincoln High School coordinated “blow-outs” with other local schools to protest the deplorable, inequitable conditions of Chicano students. We feel it is important that current residents learn about this rich history of resistance, and hope that future organizers in the community will be empowered to continue the fight for the Right to the City that was started there decades ago. BUILDING A BASE TO PREVENT DISPLACEMENT IN LINCOLN HEIGHTS: Emancipatory-Action Research for a Healthy, Sustainable Community Page 2-4 Emancipatory Action Research: A Methodology of Liberation This project utilizes an “emancipatory action research” framework to engage with community residents of Lincoln Heights. Our work hopes to provide a model for a collaborative research process as well as suggest potential planning interventions that could prevent displacement due to gentrification, and instead build a healthy, sustainable community for existing residents. As researchers and community organizers we feel we are strategically positioned to make university resources available to communities, while simultaneously honor and engage with the invaluable perspectives and experiences of community members to inform our academic project. As Margaret Ledwith (2005) argues in Community Development: A Critical Approach, the way in which we engage in research may have devastating effects on communities if it is not done with a critical and ethical analysis that is not based solely on our assumptions about communities. In other words, we must “be sure that it contributes to the process of liberation from oppression” that communities are facing. We worked to engage in a process that was aligned with the definition she and others offer for “emancipatory action research” that: seeks to be participatory and collaborative, involving everyone in the process of change, demanding ‘that the investigator be as open to change as the ‘subjects’ are encouraged to be – only they are now more like co-researchers than like conventional subjects (Ledwith, 2005). We involved residents in the research process through interviews, surveys and informal conversations that helped us to create a community profile that would lay the foundation for appropriate future planning and organizing interventions. Based on the surveys, we drew out “generative themes,” or themes that were generated by the conversations with residents, in order to provide additional research and information to help us understand their origins and impacts on the community. These themes revealed a need to identify interventions that could support community-based development without displacing current residents. Through collaborative dialogue with community members we were able to identify their priorities for a “sustainable and healthy” neighborhood. For residents in Lincoln Heights, the Right to the City means access to affordable housing, better jobs, open spaces, youth programs, safer streets, and cleaner blocks for them and their families. Our positionalities: What brought us to this project? Our collaborative research team consisted of four community scholars and two urban planning graduate students. Community scholars are people, who in addition to their full or more-than-full time jobs, decided to take part in a two quarter long Urban Planning course. The community scholars play an essential role in adding their expertise and real life experiences to our academic research. Three of the four community scholars live in or work with residents in Lincoln Heights, and all of them are full time workers, health BUILDING A BASE TO PREVENT DISPLACEMENT IN LINCOLN HEIGHTS: Emancipatory-Action Research for a Healthy, Sustainable Community Page 2-5 promoters or organizers in various social justice capacities. One of the graduate students focuses on popular education and participatory community-based decision-making processes, while the other has two years of experience working as a field deputy in the Councilman’s Lincoln Heights office. We were individually and collectively drawn to this work because of who we are and where we have decided to place ourselves in the struggle for social, economic and racial justice. We did not come to this research from an objective, unbiased lens, but rather we placed ourselves and our experiences with low-income community residents of Lincoln Heights. Since we hoped to base our research in the lived realities and voices of residents we felt it was necessary to first position ourselves as individuals in the context of our investigation. As opposed to seeing ourselves as outsiders taking a snapshot of the situation in Lincoln Heights, we wanted our work to engage with residents as key informants and stakeholders in the community. One of the members of our research team shares her personal story that is, as she says, unfortunately the story of too many. We value and appreciate her presence in this project so much because of her passion, energy and intimate knowledge of why this work is so important. We include an English translation of her narrative in Appendix A, but chose to represent it here as she wrote it in Spanish: Mi Realidad Lamentablemente mi realidad es la realidad de muchos. Empezaré compartiendo que soy sobreviviente de violencia doméstica, por consiguiente una madre soltera con cuatro hijos MARAVILLOSOS. El poder sobrevivir en este sistema es muy difícil cuando la economía no está a tu favor, día a día mis hijos y yo luchamos por salir adelante y ser útiles a la sociedad a la cual correspondemos, aunque difícilmente la sociedad reconoce nuestros esfuerzos. En muchas ocasiones he recibido quejas o me han etiquetado, el porque no participo más en las escuelas de mis hijos, o porque no asisto a reuniones comunitarias, o porque no pertenezco a ningún comité de la iglesia al cual asistimos. Son innumerables los adjetivos que utilizan para etiquetarme como mala madre, o mala vecina, o mala creyente - en fin adjetivos que no comparto con nadie. Lo único que yo sé es que tengo que trabajar dos tiempos completos para poder proveer y cubrir las necesidades de mi familia y hogar. Mi día empieza a las 6:30 AM preparando el desayuno para mis hijos y posteriormente llevarlos a sus respectivas escuelas. Mi primer trabajo es de nueve a cinco de la tarde, regreso a preparar la cena, ayudar con la tarea y prepararme para mi próximo trabajo que es de nueve de la noche a cuatro de la mañana. Eso es de lunes a viernes. ¿Me pregunto que más puedo ofrecer a esta sociedad si lucho día a día contra mis propias fuerzas para salir adelante? No soy una carga pública y mis hijos son estudiantes y atletas que han representado a USA internacionalmente, los educo con valores y la calidad de tiempo que compartimos es invalorable. BUILDING A BASE TO PREVENT DISPLACEMENT IN LINCOLN HEIGHTS: Emancipatory-Action Research for a Healthy, Sustainable Community Page 2-6 Me encantaría pertenecer a grupos comunitarios, o ir a reuniones para saber más de lo está pasando en mi vecindario pero mi prioridad es otra. El poder sobrevivir en este sistema con tanta desigualdad económica no es nada fácil. Me siento frustrada en ocasiones al darme cuenta que son tantas cosas que puedo compartir con mi comunidad y que al igual son tanta las cosas que puedo aprender de ellos, pero el miedo de no tener el dinero necesario para poder pagar la renta, la comida, las consultas medicas, medicinas y las utilidades me llena de angustia…. Angustia que comparto con miles y miles… lamentablemente ésta es nuestra realidad. En mi personal opinión el haber elegido Lincoln Heights es muy importante en pensando por la historia, es uno de los primeros suburbios de Los Ángeles, la cercanía con la ciudad, su interesante distribución geográfica, la diversidad cultural que se está presentando en los últimos anos, la disposición que tiene los residentes para apoyar sus propios comercios, me preocupa la vulnerabilidad, de esta comunidad para posibles desalojos. Es un blanco muy interesante. ~m.u. One scholar is personally inspired to engage in this work because although she has lived in Lincoln Heights for three years, she has not been able to actively engage with her neighbors. She sees the eminent threat of gentrification and wants to work to make connections in her community: Los Angeles’ landscape undergoes continued construction of new high luxury lofts and condominiums with policies favoring these developments - simultaneously rent control is being destabilized, the stock of affordable homes are decreasing, and the extreme version of poverty, homelessness, prevails in our city. The vulnerability of not having the stability of an affordable and safe home in a community with ones social network, I believe is a reality that must be fought against because our survival depends on a foundation of a home, health and bodily and community autonomy. Having the privilege to be part of the Community Scholars’ Right to the City of Los Angeles – I chose to be part of this particular research section studying Lincoln Heights as a resident of the neighborhood researched. My work entails preserving affordable housing, with the goal of creating more. We engage in city collaborations to leverage the imbalance of power to fortify tenant rights, maintain and create affordable housing, control land: this is my livelihood. Not only are these my passions but also my lived experience as a new mother. My own neighborhood is one I’m not intimately engaged in. Even though the summation of my day to day reality is that the gist of local community involvement is non-existent I fervently believe that bringing my passions home, will increase my quality of life in this struggle for a right to the city. Revolution indeed comes from within; a healthy community means the right to a home, to work and play in proximity from home for not only the affluent but for the majority of what constitutes Lincoln Heights and the City of Los Angeles, people of color and the working class. Having a right to a home as well as a Right to the City is a fight I want to engage in, in the greater Los Angeles city and my own neighborhood. ~f.s. BUILDING A BASE TO PREVENT DISPLACEMENT IN LINCOLN HEIGHTS: Emancipatory-Action Research for a Healthy, Sustainable Community Page 2-7 Another scholar who has lived in Lincoln Heights for over six months wants to explore how she and her roommates can contribute to Lincoln Heights without perpetuating the destructive effects of gentrification. She wrote: I became interested in gentrification in Lincoln Heights when I moved here six months ago. My roommates and I have had ongoing discussions on gentrification in Los Angeles as we have seen what L.A. was a few years ago, and the dramatic change of lofts, homeless sweeps, and increasing terminology from city officials about "cleaning up the neighborhoods": code for pushing lower-income people out and bringing higher income people in. Within these conversations always comes the debate among us as roommates being gentrifiers. Five highly educated single white women with no children moving into a neighborhood of Chinese and Mexican working class families appears like the face of gentrification to me. Our landladies told us when we first moved in that they wanted to wait and sell the house in a few years because they knew it would sell for more. This was a first red flag that the city has plans for the neighborhood to change. So it has been an ongoing tension in my mind. Can I be a good community member instead of a gentrifier? Can I be a part of the struggle against gentrification in Lincoln Heights, or am I contributing to it becoming "the new Echo Park...which was once the new Silver Lake"? These are questions that I am eager to face through the development of our group project. ~m.n. One of the community scholars works as a union organizer. Many of his workers live in the Lincoln Heights area because thus far it has been relatively affordable for them. As a resident of an already gentrified area he shares: There are two principle reasons I have chosen to examine Lincoln Heights through the lens of gentrification. For one, Lincoln Heights strongly reminds me of my place of residence, Echo Park, which has been hit hard by gentrification. Besides their geographic proximity to one another, the two share a common architectural history (turn-of-the-century homes and craftsman homes), similar geographic beauty (man-made lakes and picturesque hillsides), and most importantly, an abundance of ethnicallydiverse immigrant poor–to-working class residents. The only thing missing is the overpriced underground fashion boutiques next to Latino “botanicas” offering spiritual “limpiezas” and good luck charms-which you are going to need in your search for an affordable apartment in Echo Park. While Lincoln Heights is missing this sort of hyper postmodern juxtaposition, where the young and hip appear to happily coexist with working poor immigrants, areas like the Brewery Artist Colony are sure to draw the attention of the cultural elite priced out of the “New Downtown,” in search of the next cool part of town. Given all that Lincoln Heights has to offer in terms of housing, location, and history, it seems to me that it is just a BUILDING A BASE TO PREVENT DISPLACEMENT IN LINCOLN HEIGHTS: Emancipatory-Action Research for a Healthy, Sustainable Community Page 2-8 matter of time before the gentrification bomb drops on Lincoln Heights, displacing long time residents that live and work in the area, such as the laundry workers my union represents. It is for this reason that I believe that the union should really begin to support the Right to the City. If for no other reason, than the fact that the 25+ workers that live (almost entirely renters) and work in Figure 2-3 Industrial Laundry Workers the area all express a desire to stay in Lincoln Heights and feel threatened by the rising cost of rent. Yet their work is crucial to the local economy: as the cost of energy rises and space becomes more valuable, hospitals (public and private), hotels, restaurants, and city governments can no longer afford to wash their linen and uniforms. By subcontracting this work out, they can keep costs low and consumer prices down, which (in theory) Source: Scott Goodell 2007 benefits everybody. Yet the service sector industry that they work in (along with 80 percent of all US workers) does not pay anywhere near a living wage by today’s standards. At $9.05/ hr, it takes two workers’ salaries to be able to afford the current cost of a one-bedroom apartment in Lincoln Heights. I hope that by bringing these issues to light and providing examples of how other cities have combated gentrification, the labor movement in Los Angeles can, as a whole, come together with other community groups in building a movement based on the Right to the City. ~s.g. The two graduate student members of our research team also came to this project with vested interests in both Lincoln Heights as well as the struggle against displacement. One student worked for two years as a field deputy in the community and the other hopes to extend what is learned from this project to support work being done to combat gentrification in her home town in Northern California: Ending my career as a Lincoln Heights Field Deputy for Councilmember Ed P. Reyes was a tough decision to make. After all, I enjoyed my job, the area, and the continued process of learning. I engaged with community residents in my day to day activities, whether it be meetings, visits, telephone calls, or events in the community. In retrospect, their concerns regarding their desires for a safer neighborhood, cleaner streets, access to affordable housing, parks, and recreational programs was an outright cry for the Right to the City. Through this project I was able to bridge resident’s complaints with the need to encourage community leaders to organize for an equitable Lincoln Heights. Lincoln Heights holds a special place in my heart for all the memories, challenges, and accomplishments we have shared. I am grateful for the opportunity to work on this project and to once again serve the residents of Lincoln Heights by collaborating on this study. ~d.v. BUILDING A BASE TO PREVENT DISPLACEMENT IN LINCOLN HEIGHTS: Emancipatory-Action Research for a Healthy, Sustainable Community Page 2-9 Bridging the work being done here in Los Angeles with her community up north, the second student writes: I was drawn to this project because we are not only attempting to prevent displacement due to gentrification in Lincoln Heights, but it is my hope that what we learn and what we create through this process may serve as a useful tool for community building in other places as well. I am from Sonoma County in Northern California, and it has always been my goal in my graduate work to do research that is useful to grassroots organizing efforts there. On the surface Sonoma County prides itself on its progressive politics, but in terms of social relations it is a highly segregated and highly racist place to live. If we can develop a project that effectively offers a model for engaging with existing residents to build community power and intervene before displacement occurs, then that model may serve as a tool for me and others concerned with gentrification in certain areas of Sonoma County that are at risk. For example, Roseland is an unincorporated area in the middle of the City of Santa Rosa, California. In recent years the county has seen rapid growth in the wine industry and immigrant workers have responded to the increased labor demands – many of them settling in the Roseland area. For a long time it was the area of town where poor white families lived, but with an increase in immigration from México, it is now one of the most highly concentrated Latino communities in the county. Because of economic growth in the area, land values have increased at unprecedented rates. Attention has turned toward Roseland as an untapped resource for redevelopment, and although residents of Roseland have been asking for incorporation into the city for years, it is only now being considered. If the area is incorporated into the city there will be infrastructure investments and an increase in services. This will increase the land value in the area, and if the community is not organized and prepared to demand a right to benefit from those changes, I fear that many renters and low-income home owners will be forced out. If Roseland, like Lincoln Heights, becomes gentrified, then the existing stock of affordable housing for the area will be drastically reduced, if not eliminated. Similar to Lincoln Heights, and many other places across the country, gentrification is a real and pending threat for many renters in Sonoma County, and it is my personal goal that this research informs work I may do there to assure that low-income people of color and immigrant workers have a right to plan and benefit from an improved community for years to come. ~m.p. BUILDING A BASE TO PREVENT DISPLACEMENT IN LINCOLN HEIGHTS: Emancipatory-Action Research for a Healthy, Sustainable Community Page 2-10 Displacement, Gentrification and Fighting for the Right to the City: Defining the Terms of Engagement Gentrification is a process that many people can recognize and from which the devastating effects are felt far and wide in low-income communities of color. It is a process that has culturally, socially, and physically uprooted many such communities in Los Angeles and in urban areas around the globe. Involuntary displacement, one of the hardest felt results of gentrification, is rooted in racist and classist ideologies that favor the profit-making capacities of the capitalist elite over the human necessities of workingclass communities. This is transmitted on the ground level in the form of landlord abuses, illegal evictions, and intentional negligence to clear out housing in order to make units available for middle and upper class people from outside the community (Fullilove, 1996; Smith, 2002). This process denies the rights of residents to live in the central cities and excludes them from decision-making processes regarding economic and housing developments. Using political clout developers are able to pressure city governments to alter the allowable uses of light industrial land and single-family homes in order to build luxury high rise condos. Such changes in zoning have paved the way for rapid investment in communities that have been historically neglected and marginalized by the same city governments that now hope to benefit from increased tax revenue due to their conversion. The word gentrification has even earned a positive, almost benign connotation among young hipsters who post roommate-wanted ads on craigslist.org declaring “come help us gentrify down-town L.A.!” Real estate owners advertising apartment buildings for sale in different parts of Los Angeles use the concept of gentrification as a selling point for potential buyers. In craigslist ads posted in May of 2007 the same seller advertised three different non rent-controlled buildings for sale in Van Nuys, Canoga Park and North Hollywood claiming that each area: “Supports A Very Strong Rental Market & Has Been Showing Strong Signs of Gentrification Throughout The City Fueled By… The Redevelopment of Van Nuys Blvd Located A Short Walk Away… Burgeoning Retail Centers And Malls Located A Short Drive Away… The Trendy No-Ho Arts District Located A Short Drive Away… (www.craigslist.org, 05/21/07) All of the ads remind the potential buyer that new “Tenants Have Convenient Access to Public Transportation As Well As Shops & Dining!” From the perspective of a building owner/landlord, gentrification is a perk. It means that new, wealthier clientele are moving into the area and rents can soar. With a market driven analysis, the needs and lives of low-income communities of color are completely denied. Gentrification is a process that begins long before working class residents are forced out. The moment that a landlord evicts their tenants to make room for a wealthier clientele is not the first sign of gentrification, and we can not wait for that to happen to only react to BUILDING A BASE TO PREVENT DISPLACEMENT IN LINCOLN HEIGHTS: Emancipatory-Action Research for a Healthy, Sustainable Community Page 2-11 a force that is long in the making. Those of us who are dedicated to assuring that healthy and sustainable communities are created with and for existing residents have been discouraged by the devastating effects of gentrification in the past decade. However, in understanding gentrification, we may be in a position to intervene strategically to stop it, prevent it, and even reverse it. 2.2 COMMUNITY CENTERED PRAXIS: CREATING A COMMUNITY PROFILE In emancipatory action research a community profile is created as the central focus of organizing. Based in the voices and lived realities of residents, organizers engage in discussion with residents about where they live. Together they paint a picture of the community, including important places, assets, concerns, fears and hopes for the future. Residents tell their stories, and organizers research and support those voices with historic, economic and social data that is informed by, and relevant to the issue at hand (Ledwith, 2005). In this way the collective is able to see the ways in which these stories match or diverge from one another. In our case we wanted to get a sense of how residents felt about Lincoln Heights in light of the threat of displacement. Positioned strategically to both hear about the realities through the voices of low-income tenants, as well as have access to city and historical data we were able to see the ways in which Lincoln Heights is viewed in congruent and contradictory ways. Regarding housing, services, youth programs, as well as community cleanliness, the way the city plans and addresses Lincoln Heights does not always match up with the perceptions of our respondents. This report analyses the similarities and contradictions we found in order to create a more comprehensive picture of both how low-income tenants can fight for the Right to the City, and how planning and city structures should change to authentically include them in redevelopment and planning processes. Although the limited scope and scale of our project did not allow us to create a complete community profile, we were able to draw some important connections with our respondents, and begin a discussion around possibilities for further engagement. Survey Methodology and Generative Themes We conducted surveys with 26 people in order to begin a conversation and connect how residents see the community with the structural forces and issues that we found to play a role in creating that reality. One member of the group has a relationship with the Parent Center in Griffin Avenue Elementary and another group member works in a union where the majority of his members live in Lincoln Heights. The bulk of the surveys were conducted with people due to these relationships. Our research team acknowledges that BUILDING A BASE TO PREVENT DISPLACEMENT IN LINCOLN HEIGHTS: Emancipatory-Action Research for a Healthy, Sustainable Community Page 2-12 this study is not representative of the entire Lincoln Heights community, but it is simply a good start to encourage a community-based movement to evolve. The goal of the survey was to begin a conversation with low-income residents about their views of their community, the benefits and challenges to living there, and their priorities for changing it in the future. In analyzing the responses some major themes emerged. From these themes we looked into the underlying historical factors effecting them so that we could place them in a larger context. Paulo Freire, Brazilian popular educator, argued that in order to change our reality we must collectively understand it. It is through this conscientization process that we become empowered to change oppressive situations into processes toward liberation (Freire, 1990). Oftentimes we are more likely to see our surroundings on individual terms – meaning we are more aware of what is going on in our home, and on our street, but we may not realize that the same thing is happening on the next block, or that there are forces that have been perceived to be beyond our control that make and shape our situation. Census data shows that a large majority of residents in Lincoln Heights are low-income people of color. Coupled with the current skyrocketing costs of rental housing, we chose to focus our interviews mostly on renters. Rather than simply distributing a survey and asking them to fill it out by themselves, we chose to interview and engage residents in their homes, hoping to get a more profound idea of what was happening in the neighborhood, along with obtaining basic quantitative and qualitative data. We focused our survey questions on four major themes. We wanted to get a sense about our respondents in terms of demographics, occupation, housing status etc. Also, we wanted to know how people felt about their community: What do you like most / least about Lincoln Heights? What would you change or keep the same? And finally, we asked respondents to prioritize changes they would want to see in Lincoln Heights (see Appendix B for the full survey). One lesson our group learned from the survey process was that many of our questions seemed repetitive in terms of the responses we received from the participants. We thus had to change our interview style to become more of a conversation about the participants’ experience living in Lincoln Heights, while at the same time still being able to obtain important information. We were particularly interested in hearing from members of the laundry workers’ union. We felt that if we could begin engaging with residents who are already organized in some capacity, then the results of our research could more likely be utilized to make change in the community. There are two major industrial laundries in the area. One is located in Lincoln Heights and the other is close by in Chinatown. We were able to obtain a worker list from each plant to find out who lived in Lincoln Heights. Workers identified as Lincoln Heights residents were called in random order and appointments were set up at the workers’ convenience. We conducted in-person interviews and held informal BUILDING A BASE TO PREVENT DISPLACEMENT IN LINCOLN HEIGHTS: Emancipatory-Action Research for a Healthy, Sustainable Community Page 2-13 conversation with workers and their neighbors in their homes, on front porches, and on street corners. All of the respondents expressed a desire to stay in Lincoln Heights despite the rising costs of housing and fears of being forced to move. For example, one worker we visited had been renting a small house in the back of a larger house owned by a higher paid coworker who was a truck driver at the plant where he worked. He explained to us that the owner (his coworker) had recently sold the house and that he and his family were being forced to leave. Rather than search far and wide for a comparable residence, he chose to move just a block away to an apartment that cost twice as much as he was paying. He and his wife justified the decision because it was more important to him to live close to his work, which was just a mile away, rather than find more affordable housing further away. On the way out of the same interview, we were told that another coworker had been renting the trailer on the same property for 10 years. As a divorced woman in her late 50s, with over 25 years with the company, she was being forced to find another home with her meager $9.10/hr salary. Another laundry worker interviewed told of her ever-present worry that their aging landlord would one day sell the small house they rented and they would be forced to move or pay at least double their current rent. This situation worried the wife, who was part of her local parent group at the school just down the street. Many people talked about the importance of school-based parent groups, saying that they found support and agency through their involvement. Over and over again, these groups played a central supportive role for parents experiencing problems related to housing. One respondent told a story of how a woman in the neighborhood, who was a single mother, had just given birth to triplets. For this reason alone, she was being evicted. She went on to explain how this woman was at the point of a nervous breakdown due to the pending eviction and how the parent group was helping her cope with the situation and connecting her with resources. We had conversations with youth as well. One young man in particular shared that he has lived in Lincoln Heights all seventeen years of his life, and that if he could, he would raise his family there. In addition to attending high school, he also works part time as a janitor at his school, and does administrative work at the nearby USC hospital. He dreams of going to college and wants to be a designer and a hip hop dancer. He was very enthusiastic, but also critical of his neighborhood, saying that he wished the streets were cleaner, and that people would take better care of their yards. He recognizes changes in his community as “a lot of white people are moving in” and he fears that although Lincoln Heights has always been home, “it’s getting so expensive it will be too hard to buy a house here.” He is not alone in his love for his neighborhood, and shares the fear of many that some day he will have to leave. BUILDING A BASE TO PREVENT DISPLACEMENT IN LINCOLN HEIGHTS: Emancipatory-Action Research for a Healthy, Sustainable Community Page 2-14 Our thematic analysis attempts to give context to the forces that affect the realities of survey respondents so that we can together create a picture of what Lincoln Heights means to people. From there we can place ourselves strategically in a process to both protect and change it for existing residents. The four major themes that emerged in discussion with residents were the History and Importance of Place, Housing and Affordability, Youth and Safety and, Cleanliness and Community Maintenance. We consider this analysis the beginning stages of a community profile, and would encourage any interested community groups to use this work as a point of departure for continuing to dialogue and organize with residents in Lincoln Heights. History and Importance of place Many respondents have lived in Lincoln Heights for over two decades. Data from Neighborhood Knowledge of California (NKCA) shows that a large concentration of people came into the area in the early 80s through the 1990s, but that the community remained relatively stable until recently. Between 2000 and 2002 Lincoln Heights saw an influx of new residents into the central area of the neighborhood (NKCA, 2007). This new influx might account for why many of our survey respondents acknowledged a change in the ethnic and racial make-up of their neighbors. When we asked a general question about what changes people had noticed in their neighborhood some of the responses included: “There has been a change of people - a lot more Asians and black people.” “Different ethnicities are becoming a majority.” “No offense, but, I see a lot of White people are moving in – when my neighbor got kicked out for selling drugs white people moved in next door. And there are some around the block too.” “There are more affluent white people living here than before.” “The make-up of people is changing – there are more blacks and whites.” The importance of place is central to residents’ experience in Lincoln Heights. This is true not only because it is their home of many years (respondents averaged 16 years of living in the community) but people also appreciate its proximity to businesses and downtown. Because of rising rents and pressures to move out, an entire community of low-income renters is threatened with losing their home, and face the reality that they may have to start all over again. BUILDING A BASE TO PREVENT DISPLACEMENT IN LINCOLN HEIGHTS: Emancipatory-Action Research for a Healthy, Sustainable Community Page 2-15 Housing and Affordability Respondents to our survey are concerned with increasing housing costs. Twenty-one out of 26 people listed affordable housing as one of their top five priorities for change, and all of those who rent are concerned Figure 2-4 Median Household Income, that it will become Households Paying more than 50% Income on Rent too expensive to live in the area in the future. This is 0 ~ 33,920.99 due to the fact that residents are 33,921 ~ 46,656.99 experiencing rent 46,657 ~ 63,453.99 increases themselves, and 63,454 ~ 200,001 they see that other Households paying community more than 50% of members have their income as Rent been forced out of Top 25 Percentile their homes 28.52% ~ 100% because of rising Source: rents. As shown www.nkca.ucla.edu in the map, 2007 Lincoln Heights residents earn well below the Los Angeles County median family income of about $56,500 a year, and many pay over 50 percent of their income on rent. Although survey respondents reported paying much lower than market rate for their housing, ranging from $500-$900 a month, current available rental units in Lincoln Heights are being advertised for $750-$1200 for a one bedroom apartment (Craigslist 2007). Without tenant protections landlords will want to cash-in and cater to a higher-income clientele, residents in Lincoln Heights will be more vulnerable to involuntary displacement. Many respondents acknowledged this threat and most agreed that housing issues need to be addressed. The new housing developments and recent planning policies taking place, however, are also reason for concern. Median Household Income Recent Planning Policies and Economic Development The Lincoln Heights community has experienced new investments from City, State and Federal funds as well as developers and other private agencies. A new wave of housing developments, mixed-use retail opportunities, infrastructure improvements, planning tools and projects have emerged in the area in the last couple of years. While the new investments and public monies pouring in to improve the area have benefited the BUILDING A BASE TO PREVENT DISPLACEMENT IN LINCOLN HEIGHTS: Emancipatory-Action Research for a Healthy, Sustainable Community Page 2-16 community, they have also made the area attractive to outsiders- a fact that residents acknowledged in their interviews. In the next pages, a list of completed and current improvements and projects is provided. The listed investments and projects are simultaneously making Lincoln Heights appealing to gentrifiers who are seeking to live closer to their jobs and to the Central City while also decreasing stability and increasing the risk of displacement for existing residents. This contradiction marks an important place for intervention in community organizing to ensure that improvements benefit existing residents. What Happens When You Can’t Afford Affordable Housing? Housing developments have been the primary form of investment in Lincoln Heights. Some new affordable housing opportunities have been created for residents as well as opened the door for others to relocate to the area. Ed Reyes, the area’s Councilmember, focused careful outreach to local residents, but the question becomes: who is actually eligible to live in these units? Although most of the units in the Avenue 26 Transit Oriented District (TOD) project are rented at below market rates, they are affordable for only a small percent of the lower income population. A list of current housing projects by Amcal Housing is provided below to demonstrate the diversity in housing opportunities created by a single developer in Lincoln Heights. Table 2-1 Amcal Housing Developments Avenue 26 TOD Project Total Units Type Unit Mix 39-studios, 13lofts, 15-work live, 54-2bdr, 28-3bdr, 16-4bdr Puerta Del Sol 165-units Mixed-use condo/retail Camino Al Oro 102-units Senior Affordable 81-1bdr, 21-2bdr Tesoro Del Valle 121-units Family Affordable 48-2bdr, 65-3bdr, 8-4bdr Flores Del Valle 146-units Family Affordable 54-2bdr, 76-3bdr, 16-4bdr Affordability Up to 30% of units reserved for moderate income households. 10 units-30% AMI, 10 units40% AMI, 50 units-50% AMI, 30 units-60% AMI, 2units-manager 12 units-30% AMI, 12 units40% AMI, 60 units-50% AMI, 35 units-60% AMI, 2 units-manager 15 units-30% AMI, 15 units40% AMI, 72 units-50% AMI, 42 units-60% AMI, 2 units-manager Source: Amcal Housing, 4-24-07 As indicated in the above chart, the lowest affordability level unit available is at 30% of the Area Median Income (AMI), which is $22,200 for a family of four. Although affordable housing is being built in Lincoln Heights, it is important to note that based on the census data and information gathered in our surveys, the majority of low income residents still cannot afford the rents. In fact, almost half of the Amcal rental units (182 out of 369) are reserved for households earning 50 percent of AMI, or $37,000 for a BUILDING A BASE TO PREVENT DISPLACEMENT IN LINCOLN HEIGHTS: Emancipatory-Action Research for a Healthy, Sustainable Community Page 2-17 family of four. This requires two full time laundry workers’ income or for a person to hold two steady full-time jobs to meet the income requirement i . While this income level may be feasible for a single person or married couple, the reality of being low-income and having children mandates that one parent stay at home to care for them while the other is forced to work two or three jobs. The situation for single parents is more severe. Lincoln Heights’ close proximity to downtown can also be a factor that makes the area susceptible to increasing rents. Increased marketing campaigns to draw in middle-upper class residents to nearby downtown neighborhoods are starting to cause a spill-over effect in Lincoln Heights. This is evident in the ad below, which attempts to draw residents to lofts in the Lincoln Heights area. This type of marketing promotes gentrification and supports the statements of residents that the composition of the neighborhood is changing. Figure 2-5 Advertisement for Luxury Housing in Lincoln Heights Source: www.latimes.com accessed 4-1-2007 BUILDING A BASE TO PREVENT DISPLACEMENT IN LINCOLN HEIGHTS: Emancipatory-Action Research for a Healthy, Sustainable Community Page 2-18 Planning Tools Compared with the rest of the City of Los Angeles, the Planning Department has disproportionately implemented and invested funds in plans and policies in Lincoln Heights, as well as the entire East L.A. region. In recent years, Lincoln Heights has been experiencing new waves of planning mechanisms and processes that have impacted the area. Planning Department resources have been funneled to the area (by means of staff time, workload, policies, tools, etc.), planning methods implemented have created opportunities to create more housing, preserve historic homes, as well as open the door to redevelop the commercial corridors. Below are recent planning tools that have been implemented in Lincoln Heights: • • • • Avenue 26 Transit Oriented District-TOD Historic Preservation Overlay Zone-HPOZ Community Design Overlay-CDO Lincoln Heights Revitalization Area Like the contradiction in the case of “affordable” housing, planning policies have also increased the threat of gentrification. For example the re-zoning of land to create the Avenue 26 TOD has resulted in the loss of manufacturing land and adds to the overall threat of losing the character of the neighborhood. A balance of planning policies along with direct community participation needs to play a role. The residents interviewed rarely mentioned or acknowledged any planning tools, clearly suggesting the lack of information and authentic participation of residents in the implementation and drafting of the above mentioned processes and policies. Improvements As noted, public and private improvements have occurred in Lincoln Heights at an unprecedented rate. The area has historically lacked investment, as evidenced by the poor quality of existing infrastructure, but is now rapidly receiving funds and monies that are improving the aesthetics and public spaces in Lincoln Heights. The local improvements in the area are outlined below. Similar to other changes mentioned, while these improvements have improved the quality of life for existing residents, they also make the area a potential magnet for gentrifiers. If current residents are not included in the active decision-making processes around these developments, they will be excluded from their benefits and may lose the stability of their community. BUILDING A BASE TO PREVENT DISPLACEMENT IN LINCOLN HEIGHTS: Emancipatory-Action Research for a Healthy, Sustainable Community Page 2-19 Figure 2-6 New and Planned Improvements in Lincoln Heights MTA Gold Line N Broadway Streetscape Downey Pool Lincoln Park Pool LH Youth Center LH Library Lincoln Park Carousel Arroyo Vista Health Center Las Memorias Art Panels Boundless Playground Source: authors 2007 Specifically these improvements have focused on beautifying streetscapes and light rail constructions, pool improvements, library renovations; building a youth center and health clinic; and contributing park enhancements (playground, art walk, and carousel). Attention and investments in opportunities for youth is admirable. This is especially important because many of our respondents shared their mutual concerns regarding the need for additional youth services and pastimes. It is unfortunate that these wonderful enhancements have not been widely publicized or disseminated. Our respondents would have been thrilled to hear of these upcoming improvements. Conversely, nearly everyone expressed deep concern about the lack of youth activities and spaces in the area and highly prioritized youth activities. BUILDING A BASE TO PREVENT DISPLACEMENT IN LINCOLN HEIGHTS: Emancipatory-Action Research for a Healthy, Sustainable Community Page 2-20 Youth and Safety Many of our survey respondents felt there was a lack of alternative activities for youth and connected this concern with the presence of gangs in the area. They referred to the graffiti and drug use in public spaces as the visible representations of this tension, and the principal reason for why they do not utilize youth-centered spaces that do exist. The presence of gangs was usually acknowledged in some way – either as having increased or decreased in the past few years. Whether or not the activity is more or less prevalent than in recent years, the fact that most people acknowledged gangs and youth as an important issue should draw attention to the need for a process through which lowincome tenants, including youth, can give input on youth issues. Seventeen of the 26 respondents noted that creating more activities for youth would be one of their top priorities for improving the area. Some people suggested bringing in businesses that could employ young people, while others wanted more spaces and programs that would provide alternative activities for young people in the community. One teenage respondent said that he had chosen to attend a school outside of Lincoln Heights because he wanted to participate in activities that he would not be able to access close to home. The goal of this section is to ask critical questions about why our survey respondents, mainly low-income tenants of color, do not perceive they have adequate access to youth-serving activities and academic support. Based on our findings we call for a planning process that involves authentic community participation to ensure that their voices are central to the discussion. Although a fairly large number of youth-serving recreation centers exist in Lincoln Heights, with some improvements along the way, our survey respondents did not mention them or feel that there were any spaces where young people could participate safely in activities. The Downey, Lincoln Heights, Montecito Heights and Lincoln Park Recreation Centers serve 12 to 17 year old youth, but respondents expressed concern for the safety of their children. One respondent said that she used to enjoy taking her younger children to the Downey Recreation center, located near Avenue 19 and Spring St., but that over time she has seen the use of drugs and unsafe activities there. She would like to have a place to take her kids but prioritizes their safety over their access to the park. Given that Lincoln Heights is a predominantly low-income neighborhood and respondents were upset about a lack of access to resources for teenagers, we looked at the distribution of youth-serving agencies and centers in the greater Los Angeles area to see if there were any large discrepancies. Also, because the surveys reflect the perception that other areas offer young people more options for activities and academic support, we look at the local high school in comparison with other areas of the City to prompt a discussion and critique of regional disparity for students. Because one of our research members lives BUILDING A BASE TO PREVENT DISPLACEMENT IN LINCOLN HEIGHTS: Emancipatory-Action Research for a Healthy, Sustainable Community Page 2-21 in the already gentrified area of West Los Angeles, we compare and contrast high schools in Lincoln Heights and West L.A. This analysis raises questions not only about the distribution of resources, but also about the validity of existing planning processes in Lincoln Heights that affect young people. Even if participatory processes exist, in the naming or siting of a park for example, why aren’t the people we surveyed involved? We argue that this is extremely problematic as they are the people who are most vulnerable to displacement due to gentrification as improvements make the area more attractive to investors and outsiders. In order to choose high schools for comparison we went to the Los Angeles Unified School District (LAUSD) website and did a school search for the zip codes corresponding to Lincoln Heights and West L.A. In both zip codes only one high school and two continuation high schools were found. For the purpose of our comparison we looked at each of the high schools and chose one continuation school in each area for which we had the most data. In Lincoln Heights we looked at Lincoln Senior High and Pueblo de Los Angeles continuation. In West L.A. we chose University Senior High and Indian Springs High School, which is a continuation school. The main questions we had concerned the differences, if any, between the two high schools in these distinct educational communities in terms of: 1) availability of youth centered activities and recreation centers 2) school API scores 3) demographics of students 4) percent of students completing their high school diploma, and finally 5) amount of funding allocated per student. If community residents in Lincoln Heights are concerned with a lack of educational support for youth, we wanted to look at that concern within the context of the City. Is it true that no one has these services? Or are the odds bent against certain communities based on how money is allocated and where they live? We recognize that the comparison between these two areas will not give us solid answers to these questions, but we hope the findings will at least begin a conversation around educational access and resources for youth in Lincoln Heights and in Los Angeles in general. Figure 2-7 below shows the concentration of residents in the greater L.A. region that have attained a Bachelor’s degree. The darker red represents areas where between 25 and 100 percent of people have attained a B.A., a distinction made to show the top 25 percentile of residents that fall into that category. The purple dots correspond to youth serving agencies and recreation centers identified by the Neighborhood Knowledge of California website – a mapping project out of UCLA that people can use to locate services in their area. West L.A. to the left and Lincoln Heights to the right are both outlined in green. BUILDING A BASE TO PREVENT DISPLACEMENT IN LINCOLN HEIGHTS: Emancipatory-Action Research for a Healthy, Sustainable Community Page 2-22 Figure 2-7 Concentrations of Residents with Educational Attainment of a Bachelors Degree and Youth Serving Agencies and Recreation Centers in Los Angeles Educational Attainment: Bachelor's degree 0% ~ 7.27% 7.28% ~ 14.37% 14.38% ~ 24.75% 24.76% ~ 100% ◘ Youth serving Agencies and Recreation Centers Source: NKCA, 2007 Clearly there is a regional disparity in terms of educational attainment, with a larger concentration of college educated residents living toward the Westside, and north along the coast and into the San Fernando Valley. Looking at West L.A. and Lincoln Heights, we can see that there is an abundance of youth serving agencies on the Westside – nearly covering the green outline marking the West L.A. neighborhood, while Lincoln Heights has very few. According to the California Department of Education “the Academic Performance Index (API) is a numeric index (or scale) ranging from a low of 200 to a high of 1000 that reflects the performance level of a school …based on the results of statewide testing… The statewide API performance target for all schools is 800. A school’s growth is measured by how well it is moving toward or past that goal.” In comparing the change in API scores in Lincoln Heights with West L.A., we see that while both schools have generally improved over time. However, by 2006 Lincoln Senior High had never reached the score that University Senior High had obtained seven years earlier. The schools vary demographically in a number of ways. The ethnic/racial make-up of students is more diverse at University SH than Lincoln SH, with a more representative distribution of students in comparison to the city of L.A. as a whole. Considering academic performance as it is reported in the School Accountability Report Card (SARC) summary for the schools, students at University SH have higher levels of proficiency in all of the major core subjects. BUILDING A BASE TO PREVENT DISPLACEMENT IN LINCOLN HEIGHTS: Emancipatory-Action Research for a Healthy, Sustainable Community Page 2-23 Students attend continuation schools for a number of reasons. Some of them including having been criminalized or expelled from their former school, or because they have generally not been able to fit into the standards set by the mainstream high schools. In any event, they are students who have had a harder time accepting the confines of formal academic institutions, and we feel are therefore more vulnerable to dropping out completely. While the data was limited for continuation schools, it does show that 50 percent of Indian Springs HS students (West L.A.) earned a high school diploma, but only 17 percent of Pueblo de L.A. students (Lincoln Heights) completed coursework for university entrance. Students at West L.A. high schools had a better chance of graduating with a diploma than students in Lincoln Heights. Nearly 88 percent of University SH students graduated in 2005, where only about 63 percent of Lincoln SH students earned their diploma. We can only speculate the reasons behind this disparity, but certainly student funding and academic support play a role in the success of students. School funding formulas allocate for each student at Lincoln SH a little under $4,200 per year compared to an 11 percent increase of $4,650 per year at University SH. The situation for continuation students is much worse, where they receive only a fraction of the amount for students at mainstream high schools. Showing some of the disparities between these high schools is not enough to draw major conclusions about the educational system, or attempt to explain it in its entirety. However, in response to the concerns of residents about safe youth activities and involvement, and because school is where youth tend to spend the majority of their time away from home, it is imperative that we uncover some of the structural inequalities inherent in the educational system so that we can locate strategic points for changing it. Our analysis is limited in that it does not provide some important answers about why these disparities exist, but like this report it offers the basis for asking the questions to begin with. Community organizing groups could ask how income, race, and location effect educational support for students. Why are students allocated more funding in West Los Angeles than in Lincoln Heights? Why is the academic proficiency of students so much lower in Lincoln Heights than on the westside? And more importantly, how can community members demand changes that will equalize the situation? Questions concerning an authentic planning process where low-income renters of color are included as major stakeholders could be: what are the services that are being provided? And how is quality and distribution decided? If there are places for youth that exist, why don’t the most vulnerable populations feel a part of them? While we recognize that community meetings do occur in Lincoln Heights, it is imperative to ask: Who is present for them? These questions that have emerged from discussion with residents and further investigations are the initial building blocks for emancipatory action BUILDING A BASE TO PREVENT DISPLACEMENT IN LINCOLN HEIGHTS: Emancipatory-Action Research for a Healthy, Sustainable Community Page 2-24 research in the fight for the Right to the City. Authentic or inclusive participation of the most vulnerable populations is the first step. Community Cleanliness and Maintenance “I wish people would take better care of their yards, or that the city would clean up more.” ~17 year old resident of Lincoln Heights The statement above summarizes one of the main points expressed by our survey participants. The concern for cleanliness, on the part of the City as well as their neighbors, was prevalent. A desire for additional trash pickups and street sweeping was mentioned as possible ways to make the area cleaner. Graffiti on walls, freeway overpasses, and on signs was also considered a huge problem. Moreover, graffiti was considered a visual representation of violence, which clearly brought up safety concerns. It was concluded that if the City made sure graffiti was removed in a timely manner, there would be less of a concern for possible gang violence that would result. A lack of safe, clean community spaces, like parks, was also an issue of concern. The nearby parks were considered spaces where vices and unregulated behavior are taking place. Residents often do not feel safe and preferred to avoid the common areas in an effort to “protect their kids.” The City’s allocation of resources for community maintenance is an issue that effects the Lincoln Heights area. Funds and services are inadequately distributed to the Lincoln Heights area in relation to their population density. The Lincoln Height area has 11,065 residents per square mile as compared to the City average of 7,068. Low incomes and high housing costs cause families to cohabitate in large numbers, consequently increasing the density in the area. The dense population in Lincoln Heights means that the needs for services are greater. The “unwritten law” that divides its resources for services equally by the 15 council districts under serves dense areas. After much searching for a "City Formula" in the books, municipal law, or in motions, the member of our research team that works for the City came to the realization that it does not exist. After working for over four years in the council office she understood that each district received its "fair share" of funding through the assumed formula that divides all city funding and services “equally” by the 15 council districts. Working in the lower income community of Lincoln Heights, she also understood that this and other communities in the City required additional services based on the density and composition of the neighborhood. As more people work, walk, and live in an area the trash and debris accumulation increases. But as in all things, there was nothing that any politician could do but try to garner the support of nine other council members in a BUILDING A BASE TO PREVENT DISPLACEMENT IN LINCOLN HEIGHTS: Emancipatory-Action Research for a Healthy, Sustainable Community Page 2-25 far-fetched attempt to change the historic ways of allocating funding in City Hall. The crude reality is that if funding and services are re-allocated to serve the needs of Angelinos based on the density of their neighborhoods, some would be losing services while others gain. This concept would not be politically viable and would not feasibly pass unless there is strong community will on the part of the more dense areas to demand more equitable distribution of resources. Lincoln Heights happens to be a dense community that desperately needs additional services and disproportionately receives funding as compared to city residents in other council districts. 2.3 POSSIBLE THREATS AND CHALLENGES There are a number of potential threats to resident stability in Lincoln Heights that have effected former working-class neighborhoods in the past. The USC Medical Center expansion, the Northeast Community Plan, and the Historical Preservation Overlay Zone (HPOZ) are all elements in redeveloping the city which are similar to factors that have perpetuated processes of gentrification and displacement in other areas. Residents are correct in their speculation that new investments and changes are opening the doors to rising rents. The County-USC Medical Center and USC Health Science Campus is in the midst of redevelopment, and community residents see this expansion as a threat. As the medical center expands, the community will be in competition for housing with USC students, staff, and faculty. In addition, the incorporation of the Historic Preservation Overlay Zone (HPOZ) in Lincoln Heights has made the area more attractive to outside investors, increased property values, and also places financial stressors to families wishing to remodel or upgrade their homes. Lower income homeowners may be pressed to sell and move from the area if they cannot afford the increased cost in upkeep due to the HPOZ. The USC Medical Center, although technically located in Boyle Heights, will have a great impact on Lincoln Heights with redevelopment and expansion. The Northeast Community Plan, revised on June 15 1999, states that “the large area centered on the County-USC Medical Center and USC Health Science Campus is in the midst of redevelopment…” The increase in demand for student housing has the potential to destabilize Lincoln Heights tenants in the same way that it did in the Figueroa Corridor, where rents and property values shot up 200 percent in three quadrants of the area, and 250 percent in the area between USC and the Staples Center (Figueroa Corridor Community Land Trust). The Northeast Community Plan, which could be a plan that works to benefit the people of Lincoln Heights, is drafted in a way that excludes the voices of present day residents of the community. The Plan states, “In purely residential areas, at greater distances from the main streets, the challenge is similar, i.e. preserving the best of the past residential BUILDING A BASE TO PREVENT DISPLACEMENT IN LINCOLN HEIGHTS: Emancipatory-Action Research for a Healthy, Sustainable Community Page 2-26 character while permitting rehabilitation and new construction to accommodate the future needs of the community.” The flaw in this plan is in the language used to discuss Lincoln Heights. It completely leaves out present day residents and their plans for the community’s future. As the plan mentions, a goal of the City is to “preserve the best of the past residential character…” Lincoln Heights is part of the Historic Preservation Overlay Zone (HPOZ), which comes with new investors and preservation developers. The landscape of the neighborhood includes “residences range from 1890’s-era homes to newer hillside houses with dramatic views.” Century 21 Realtor Angelina Robinson said that area prices have been rising rapidly, especially with notable improvement of the neighborhood in the last few years (April, 2006). With such a considerable amount of new investment and development in the area as mentioned here and above, it is imperative that community members concerned with displacement organize and intervene to ensure that their voices are heard. 2.4 RELEVANT INTERVENTIONS TO PREVENT DISPLACEMENT AND BUILD A HEALTHY, SUSTAINABLE COMMUNITY Considering the Community Profile We have identified a number of organizations that have worked to fight gentrification once it has been identified as a threat to their communities. We are also looking at methods by which organizations engage with community residents in dialogical processes of popular education and consciousness-raising around the need for community-based planning and development. The ultimate goal of this analysis is to offer some viable starting points for interested community members and groups in Lincoln Heights to begin organizing around displacement – based in the themes that community members have already identified as central to their community. Although we are attempting to ground this research process as much as we can in the experiences and voices of community residents, it is important to acknowledge that due to our limitations of time and organizational capacity, we are not engaging in the popular education processes that would be imperative to foster community-based development. We will however attempt to the best of our ability to explain how popular education methods can and should be used in creating momentum to challenge displacement where it is likely to occur. The case studies we have chosen offer relevant interventions and community-based organizing strategies to combat gentrification and fight for a Right to the City. In order to ensure that the lessons we learned are relevant to residents of Lincoln Heights, we BUILDING A BASE TO PREVENT DISPLACEMENT IN LINCOLN HEIGHTS: Emancipatory-Action Research for a Healthy, Sustainable Community Page 2-27 organized our analysis and discussion around the generative themes that emerged from the surveys, but applied them to a context of how to respond to those issues. Regarding the first theme of History and Importance of Place, we were looking for communitybased organizing strategies that honor and utilize a strong sense of pride of place in order to mobilize residents. In relation to Housing and Affordability we were concerned with cases where groups specifically focused on increasing the availability of permanent affordable housing and community control of land. To relate to the issue of Youth and Safety we looked to groups that fought for the rights of youth to claim spaces in their communities. And finally, in considering Cleanliness and Community Maintenance, we saw this issue as one concerning the distribution of resources in the larger region and looked for lessons about how communities have fought for and won campaigns to increase public investment and increased participation for the beautification of their community. We generally based our analysis on reports or publications created by the groups we studied. Unfortunately it was outside the scope of our project to interview and discuss in detail with organizers about their strategies, but we hope that this brief introduction to effective community-based organizing tools will inspire similar work to be done in Lincoln Heights. Table 2-2 below summarizes the various lessons from our case studies that are relevant to Lincoln Heights, with more detailed discussion of each case to follow. BUILDING A BASE TO PREVENT DISPLACEMENT IN LINCOLN HEIGHTS: Emancipatory-Action Research for a Healthy, Sustainable Community Page 2-28 Table 2-2 Case Studies: A Brief Overview HISTORY AND PRIDE OF PLACE Harlem On The River: Making a Community Vision Real New York “La Comunidad Ha Hablado” Old Town National City, San Diego, CA New York City AntiGentrification Network Bartlett Park St. Petersburg, Florida, Oak Park Sacramento, California The Figueroa Corridor Community Land Trust Los Angeles Low-income community of color, originally a major destination for African Americans with history as a cultural center HOUSING AND AFFORDABILITY YOUTH AND SAFETY Created alliances with residents, nonprofit & government agencies, elected officials and local businesses to leverage power COMMUNITY PARTICIPATION Community-based planning process to reclaim the community; Developed master plan for the river front The area was a polluting dumping ground for years Addressed youth health concerns through survey; Prioritized communityserving developments Conducted community survey to address environmental concerns; Drafted “Principles for Revitalization in Old Town” based on results Goal to preserve cultural fabric and identity of community and community identified historic places Goal to preserve public and affordable housing Youth as major organizers and stakeholders in the collaboration process Working group to build knowledge, proposals, and power; Legitimate residents as stakeholders in decision-making process Worked to prevent displacement before it occurred Housing rehabilitation, infill development, zoning changes and economic development strategies Works for a right to the city for low-income Latino immigrant and African American communities Develop permanent affordable housing in partnership on community-owned and controlled land Economic development projects to raise wages and increase resident stability so people can benefit from physical improvements Youth membership encouraged; Youth invited to participate in planning processes BUILDING A BASE TO PREVENT DISPLACEMENT IN LINCOLN HEIGHTS: Emancipatory-Action Research for a Healthy, Sustainable Community Community control in decision-making processes regarding site acquisition and development Page 2-29 Case Studies: A Review of Interventions and Community Organizing Strategies Relevant to Lincoln Heights The above mentioned case studies that we researched share similar conflicts and offer solutions to the threats of gentrification facing them and Lincoln Heights. Old Town National City lays the foundation for organizing through an emancipatory action research framework by residents gathering information from residents. Harlem on the River takes the demands of residents and creates alternative plans to those that perpetuate gentrification. New York City displays organizing methods for spreading awareness on gentrification and cultural preservation. Bartlett Park offers practical examples for community based economic development, and finally the Figueroa Corridor Community Land Trust determines alternative methods to preserve land for community use. These studies provide a possible outline for Lincoln Heights residents to follow in stopping gentrification and creating an alternative peoples plan. The lessons learned that resulted from analyzing the case studies are grouped in four themes: Emancipatory Action Research, Participatory Planning, An Organized Community, and Planning Interventions. Lesson 1: Emancipatory Action Research Creating a Community Profile was a vital characteristic of Emancipatory Action Research. In the case study “La Comunidad Ha Hablado” (The Community has Spoken) we find various examples of a community working together to gather information to create a community profile. The community of Old Town National City in San Diego, California, has been a polluting dumping ground for years. With the help of community-based organizations and a supportive City Council, residents developed a Specific Plan to be put into effect over the next ten to 15 years. The Environmental Health Coalition (EHC) conducted a community survey on how the neighborhood would shape the Specific Plan. EHC administered the survey and worked in bilingual teams led by promotoras (community-based health promoters). Visual aids were used to explain the survey, such as heights of residential complexes. The survey had 56 questions and 110 residents responded. The EHC also had residents choose their top three priorities in a list of 17 changes that could be made in their neighborhood in order to prioritize what would be on the specific plan. Based on the recommendations made, they drafted the “Principles for Revitalization in Old Town” that included action steps toward developing the community according to the residents’ priorities. According to our Lincoln Heights surveys, immediate desires for the city are as simple as better grocery stores, more youth after-school programs, and cleaner streets. These demands, as in La Comunidad Ha Hablado, can lead toward developing an alternative plan to pro-gentrification development. BUILDING A BASE TO PREVENT DISPLACEMENT IN LINCOLN HEIGHTS: Emancipatory-Action Research for a Healthy, Sustainable Community Page 2-30 “La Comunidad Ha Hablado” exemplifies a useful case study in the first stages of developing a people’s plan, which is collecting data on what the people want. The use of surveys and conversations brought the Environmental Health Coalition to the conclusions that Old Town National City was not developing according to the residents’ needs. Similarly Lincoln Heights residents have been excluded from developing the Northeast Plan. By taking EHC’s example of surveying and gathering information on the people’s vision for Lincoln Heights, our group can compare immediate resident desires for the city with the future plans that have been drafted for Lincoln Heights by the city without their participation. Lesson 2: Participatory Planning Authentic participatory processes would include the voices and opinions of the most vulnerable groups in a community. In the case of Harlem On the River: Making a Community Vision Real, the community worked together to create alternative plans for their neighborhood, involving low-income people. The participatory planning process made it possible for residents to legitimatize their opinions as well as take part in the shaping of the future of their community. Disinvested areas like the piers are receiving new attention as investments have been pouring into neighborhoods. WE ACT for Environmental Justice, a community-based organization, led the grassroots efforts to initiate resident participation in the Harlem-on-the-River project to develop the Harlem Waterfront along the Hudson River. The key to the organizing efforts of WE ACT was based on the alliances formed between residents, representatives from community-based organizations, elected officials, local businesses and other government agencies. The organization built capacity in community planning. Like Lincoln Heights, Harlem has historically been a low-income community and home to a large concentration of people of color. It is also rich in historic significance partially because of its piers, and while it was once a disinvested area, it has recently received new attention as investments have been pouring into the neighborhood. Utilizing community-based planning as an organizing tool, WE ACT fought to reclaim the places where existing residents live, work, play, pray, and learn. In this planning process, residents and other community stakeholders engaged in the act of envisioning, designing, and recommending future land uses in their neighborhood. Through this process residents of Harlem actively participated in the creation of a Master Plan for the river area. WE ACT and Community Board 9 created a people’s plan by not only saying they disagreed with the plans developers had for the riverfront, but by offering an alternative plan that reflected what the community wanted: Taking the issue directly to the community through a variety of its institutionsschools, churches, businesses, tenants’ associations, and a host of communitybased groups - WE ACT and Board 9 drew residents from around Harlem to BUILDING A BASE TO PREVENT DISPLACEMENT IN LINCOLN HEIGHTS: Emancipatory-Action Research for a Healthy, Sustainable Community Page 2-31 supply their know-how input, and vision and transformed Harlem-on-the-River into a community-owned project (Harlem, 2000). This case study provides a number of important lessons. While the University was an ally in the development of the community plan for the waterfront, once it was done, it sought eminent domain powers to take over 20 acres of the community, including a substantial section of the planned area. The lesson here is that plans have to be backed up with community vigilance and oversight. Community-based planning processes and organizing can be utilized to highlight community voices in demanding a role in projects affecting the neighborhood. It is a useful tool to engage residents in any future developments and public hearings, while promoting the creation of alliances with Lincoln Heights groups such as residents, organizations, elected officials, churches, artists, parents groups and schools that align themselves around important community issues and goals. Doing work like this could eventually mature into a nonprofit community-based organization. One way this process could be started would be to collaborate with the City Council Office, Planning Department, and nonprofit groups to facilitate and host community meetings to introduce the planning process and discuss how people can get involved. Lesson 3: An Organized Community Organizing a community whether it be to fight for changes, demand services, share their concerns and/or opinions, or to resist are lessons that were learned from many of the case studies. In particular, the New York City Anti-Gentrification Network: Summation of Convenings, embodies lessons specific to our project on how to address gentrification. Similar to Los Angeles, New York is a global city that caters to the “predominantly white, elite professionals who require access to a Global City lifestyle”(New York, 2007). This lifestyle calls for increased development of luxury housing and services where working class people are pushed out while simultaneously working “some of the longest hours for the lowest wages” to meet the needs of the new elite. The City’s dominant model for development favors large commercial and luxury residential projects, “failing to protect working class communities from being displaced from their neighborhoods.” Some organizations in the case study identified a threat to their neighborhood because of its proximity to the financial district in Lower Manhattan. Based on shared concerns about the destructive forces of gentrification multiple organizations came together to “engage the local and city-wide development processes in order to ensure that they have a voice in their future and are not developed out of their communities, neighborhoods and other spaces.” A working group was established to build knowledge, proposals, and power to influence development. They analyzed the root causes and impacts of gentrification, acknowledged their shared experiences across communities, and identified collective needs and possibilities to “develop strategies for BUILDING A BASE TO PREVENT DISPLACEMENT IN LINCOLN HEIGHTS: Emancipatory-Action Research for a Healthy, Sustainable Community Page 2-32 equitable and sustainable local and regional economic development.” Some key points and interventions included: • • • • Preserve public and affordable housing Preserve cultural fabric and identity of communities Preserve community-identified historic places Legitimate low-income, immigrant, people of color, and so-called marginalized communities as valid stakeholders in decision-making processes The general goal is to create equitable and sustainable development in the region without displacing current residents and unraveling the cultural fabric and heritages of the people and places. Some initial points of convergence for further discussion and action that emerged from the convening were to: • • • • Exchange strategies and tactics that organizations have used to combat gentrification Share strategic use of data and research Conduct media trainings and collective, strategic PR campaigns Build community bases and work in leadership development By using this example, Lincoln Heights residents can be engaged in analyzing gentrification, educating fellow-residents, and preserving the cultural fabric of the current community. The New-York City Anti-Gentrification Network lays a strong foundation for organizing residents to spread knowledge and action against gentrification, which is one of the deepest needs of Lincoln Heights during the pre-gentrification process. Lesson 4: Planning Interventions Planning interventions are important lessons to implement in communities to attain the voice of residents and to respect the wishes of the community. There are several examples we find in the Bartlett Park and Oak Park examples, as well as in the work being done by the Figueroa Corridor Community Land Trust to fight for community control of land and the creation of affordable housing. The two cases studies of Bartlett Park and Oak Park were reviewed in a publication prepared by the Urban Institute in Washington D.C. to look at local efforts to mitigate displacement due to gentrification. The major strategies to prevent displacement discussed in this report include the construction and retention of affordable housing, and engagement in various asset building projects such as Individual Development Accounts (IDAs), or Community Land Trusts. Furthermore, the report looks at six case studies in relation to the relevant market strength and the level of gentrification reported by residents in each particular community. They start with neighborhoods that show the beginning signs of revitalization through examples where communities are facing strong BUILDING A BASE TO PREVENT DISPLACEMENT IN LINCOLN HEIGHTS: Emancipatory-Action Research for a Healthy, Sustainable Community Page 2-33 gentrification pressures. They argue that to intervene effectively we must be aware of the stage of gentrification through which the community is passing, and apply appropriate interventions that are relevant to the specific context of the housing market and subsequent effects of gentrification. Since we are primarily concerned with how to intervene in the earliest stages of gentrification in Lincoln Heights, we focus on the two case studies whose contexts are most relevant to our project: the community of Bartlett Park, St. Petersburg, FL, and Oak Park in Sacramento, CA. In both cases, active community organizations in the neighborhoods intervened to fight involuntary displacement through various means. In Bartlett Park the key strategies included housing rehabilitation and infill development, as well as zoning changes and economic development strategies. In Oak Park there was a focus on vacant property redevelopment as well the creation of a housing trust fund and homebuyer programs to increase stability of residents (Levy, 2006). Funding for the rehabilitation of owner-occupied housing in Bartlett Park came from government agencies, as well as nonprofit organizations. Infill development aimed to decrease the number of vacant lots in the area through private and nonprofit partnerships with selected and trusted housing contractors. Economic development is an important component to preventing displacement so that current residents are able to increase their earnings, “thereby reducing the chance that lower-income people will get caught in a cycle of being displaced to lower cost areas as neighborhoods change and housing values increase.” Many survey respondents for this report stressed the importance of the link between affordable housing development and economic development. Both must be addressed simultaneously to ensure that current residents can benefit from physical improvements and investments in the community. The Figueroa Corridor Community Land Trust (FCCLT) has emerged in response to broad-based community organizing that has occurred in the South L.A. region in the past decade. It has been established to combat the destructive forces of displacement due to gentrification in the community, and to provide a space where community-based democratic decision making processes will decide the fate of land in the Figueroa Corridor. By placing the ownership of land in the hands of the community they can assure the availability of affordable housing for generations of working class people to come. A Community Land Trust is a nonprofit membership organization that produces privately-owned housing on community-owned land. Land is held in a trust “forever” with 99-year, renewable, inheritable ground leases that separate the ownership of the land from the improvements to the dwellings. The ground lease limits the resale value of the buildings, while subsidy is used to remove or reduce the cost of land from the total development cost. This model ensures that the benefit of public and private subsidies is preserved for future generations. BUILDING A BASE TO PREVENT DISPLACEMENT IN LINCOLN HEIGHTS: Emancipatory-Action Research for a Healthy, Sustainable Community Page 2-34 The first community land trust was formed in the late sixties as a way to secure access to land for African American farmers. The movement has grown to include over 200 community land trusts throughout the U.S. The Figueroa Corridor CLT will be a powerful model for developing permanently affordable housing opportunities in conjunction with strategies to combat displacement, increase job opportunities, and better access to health care in their work to create a healthier community. The FCCLT will engage youth and adult community residents in a genuine planning process for a healthier community by establishing community planning values and standards that will guide the strategy for land acquisition and entitlements. They will organize and mobilize the community to support entitlements while garnering political support and resources to expedite their approval at the city level. While building a strong grassroots constituency for community planning, the FCCLT will acquire ten residential, commercial and industrial sites, rezone for higher density and healthier land uses, sell development rights at market value to affordable housing developers, execute long-term ground leases with developers to establish affordability requirements, and retain ownership and control of the land. They will surround the developments with community-driven planning processes in order to reduce slum housing, toxic land uses, and other nuisance businesses, while providing permanent affordable housing for families with incomes between $14,000 and $50,000 a year. Lincoln Heights is in a strategic position to challenge displacement due to gentrification because it is in the early stages of revitalization. Residents have the advantage of learning from organizational bodies such as those discussed here to work and organize towards an equitable community development process that encompasses the community’s needs through democratic participation. 2.5 CONCLUDING REMARKS: LIMITATIONS AND POSSIBILITIES Given the limitations of time and organizational capacity, we recognize that this project is not a complete model for creating sustainable, community-driven interventions in Lincoln Heights. Given more time, we would continue the process of conducting community surveys, and would hold additional focus groups and community meetings to expand upon the themes generated thus far. We would expand and diversify our outreach to more community groups, such as the Vietnamese and Chinese community, faith-based groups, youth, and additional parent groups. Recently a new group has been started in Lincoln Heights to discuss the business corridor and new improvements in the area. A variety of interested parties were part of the first meeting that took place on Tuesday, February 27, 2007. In attendance were business owners, the Lincoln Heights Chamber of Commerce, the Lincoln Heights Boys and Girls BUILDING A BASE TO PREVENT DISPLACEMENT IN LINCOLN HEIGHTS: Emancipatory-Action Research for a Healthy, Sustainable Community Page 2-35 Club, Neighborhood Council representatives, Councilmember Reyes’ staff, and property owners. The discussion focused on how to form a group to foster and promote the on-going efforts to revitalize the area as a whole. The group agreed that partnerships with the City, the business community, and the overall constituency of Lincoln Heights had to be formed to successfully take advantage of further opportunities for redevelopment. Although all of these issues are important, the critical missing component of the group was low-income residents. Resident participation was lacking and it is absolutely necessary in order to ensure that the decisions made reflect their realities. Although this gathering reflects a new, and much needed, surge in energy and dedication to the community, it is essential that this group acknowledge the importance of preserving the stability of current residents so that they may too benefit from impending developments. If low-income tenants, like our survey respondents, are not invited to the table, this will be impossible. We hope that this project serves to promote and encourage community participation in planning all future developments in Lincoln Heights through strategic organizing and coalition building. Considering that youth activities and engagement was one of the central themes generated from the surveys, and young people are interested and invested in their community, we feel it is imperative that any community development project must outreach and involve youth as key participants and decision-makers. Low-income residents, who are affected the most by community decisions, need to be involved in all the future and on-going changes in the built environment in Lincoln Heights. The sense of pride for Lincoln Heights should be a driving factor to encourage participation. Community infrastructure, such as churches and/or community centers, may be utilized as venues to promote organizing and participation. Figure 2-8 Industrial Laundry Workers Clearly, interventions need to be considered in order for local residents to benefit and enjoy the recent waves of investments, projects, planning tools, and housing opportunities. The recent changes and projects discussed in the pages above, while beneficial, are also creating opportunities for gentrification as the area Source: Scott Goodell 2007 is becoming increasingly attractive. It is important to come together with as many diverse groups as possible who share the common goals of equitable and sustainable development in Lincoln Heights while maintaining the cultural fabric and heritage of existing residents. We must understand the root causes of gentrification in our context in order to apply strategic interventions. Because we are preemptively challenging these destructive forces in a community that have not yet been visibly affected by BUILDING A BASE TO PREVENT DISPLACEMENT IN LINCOLN HEIGHTS: Emancipatory-Action Research for a Healthy, Sustainable Community Page 2-36 gentrification, it may be more challenging for us to bring together partners in the struggle. However, if we are to stop gentrification before it begins, we need to engage in widespread community, popular education campaigns to bring awareness to this problem. BUILDING A BASE TO PREVENT DISPLACEMENT IN LINCOLN HEIGHTS: Emancipatory-Action Research for a Healthy, Sustainable Community Page 2-37 Appendix A Translation of Mi Realidad My Reality Unfortunately my reality is the reality of many. I will start by saying that I am a survivor of domestic violence and a single mother of four marvelous kids. The power to survive in this system is very difficult when the economic forces are not on your side, day after day my kids and I struggle to get ahead and to become useful to the society we belong to, despite the fact that society seldom acknowledges our efforts. On many occasions I have received complaints and/or I have been labeled, because I do not participate enough in my kids’ schools, or because I do not attend community events, or because I do not participate in any committee from our local church. Countless efforts are utilized to label me as a bad mother, a bad neighbor, or an unfaithful believer-finally there are many accusations that I do not share with anyone. The only thing that I know is that I need to work two full time jobs to be able to provide and cover the needs of my home and family. My day begins at 6:30 AM preparing breakfast for my kids and dropping them off at their schools. My first job is from nine in the morning to five in the afternoon. I return home to prepare dinner, help my kids with their homework, and to get ready for my next job that starts at 9:00 PM and ends at 4:00 AM. This routine takes place Monday through Friday. I ask myself, what else can I offer this society if I struggle day after day against my own power to get ahead? I am not a public burden and my kids are students and athletes that represent this nation internationally, I educate them with values and the quality of time we spend together is invaluable. I would love to belong to community groups and to attend meetings to learn more on what is happening in my neighborhood but that is not my priority. To be able to survive in this system with so many economic inequalities is not easy. I feel frustrated on many occasions as I realize that there are so many things that I can share with my community and at the same time there are many things that I can learn from them, but the fear of not having the money necessary to pay rent, food, medical bills, medicines, and the utilities fill me with anxiety…Anxiety that I share with thousands and thousands…unfortunately this is our reality. In my personal opinion, haven chosen Lincoln Heights as our class study area is very important starting with its history, it is one of Los Angeles’ first suburbs, the proximity to downtown, its interesting geographic distribution, the cultural diversity that has resulted in the last couple of years, the position that residents have to support their own businesses. I worry about the vulnerability of displacements in this community. It is an interesting case study. ~m.u. BUILDING A BASE TO PREVENT DISPLACEMENT IN LINCOLN HEIGHTS: Emancipatory-Action Research for a Healthy, Sustainable Community Page 2-38 Appendix B Community Survey of Residents Regarding Conditions in Lincoln Heights Encuesta Comunitaria de Residentes Sobre Las Condiciones De La Vecindad Lincoln Heights I. Basic Information / Información básico:___________________________________ 1. How long have you lived in Lincoln Heights? ¿Por cuántos años ha vivido usted en Lincoln Heights? _______ years / años 2. Are you renting or do you own your housing? ¿Usted es inquilino/a? o dueño/a de casa? RENT / OWN Inquilino / Dueño 3. What is the total cost of rent or mortgage for your home? ¿Cuál es el costo total de la renta o hipoteca de su vivienda? _____ / month/ mes 4. Do you think this is a reasonable amount? ¿Usted cree que es una cantidad razonable? YES / NO Si / No 5. Do you have children that go to school in Lincoln Heights? ¿Usted tiene hijos o hijas que asisten a las escuelas en Lincoln Heights? YES / NO Si / No 6. How many people live in your home? ____ people/ personas ¿Cuántas personas viven en su hogar? 7. Do you participate in any of the following groups? What are their names? ¿Usted participa en algunos de los siguientes grupos? ¿Cuáles son los nombres? 8. School / Parent group About You / Sobre Usted Escuela / Grupo de Padres __________________ 9. Religious Institution Institución Religiosa __________________ 15. Age/ Edad: _________ 10. Community Organization 16. Gender/ Genero: _________ Organización Comunitaria __________________ 17. Race, Ethnicity / 11. ESL / Adult Education classes Raza, Etnia: _______________ Inglés como segunda idioma/ __________________ 18. Occupation / Tipo de Empleo: clases de adultos ___________________________ 12. Cultural Organization 19. Annual Salary / Ingreso Organización Cultural __________________ anual: 13. Government ___________________________ Gobierno __________________ 14. Business Associations Asociación de negociantes ______________________ BUILDING A BASE TO PREVENT DISPLACEMENT IN LINCOLN HEIGHTS: Emancipatory-Action Research for a Healthy, Sustainable Community Page 2-39 II. Information about Lincoln Heights / Información sobre Lincoln Heights: 20. What do you like most about your neighborhood? Please prioritize them and explain. ¿Qué le gusta a usted más de su vecindad? Favor de priorizarlos y ser detallado. 1st./1r° 2nd./2° 3rd./3° 21. What do you not like about your neighborhood? Please prioritize them and explain. ¿Que es que no le gusta usted de su vecindad? Favor de priorizarlos y ser detallado. 1st./1r° 2nd./2° 3rd./3° 22. What changes have you noticed in your neighborhood? Please prioritize them and explain. ¿Que cambios ha notado usted en su vecindad? Favor de priorizarlos y ser detallado. 1st./1r° 2nd./2° 3rd./3° 23. Have you been, or do you know people who have been:(Please mark all that apply) a. Evicted By A Court b. Illegally Evicted c. Forced To Move Out Because Of Landlord Intimidation d. Forced to Move Out Because of landlord Negligence Usted ha estado, o conoce a personas que han estado: (Favor de Marcar todos que apliquen) a. Desalojados por una corte b. Desalojados ilegalmente c. Forzados a dejar su hogar por los acosos del dueño d. Forzados a dejar su hogar por la negligencia del dueño 24. What happened? ¿Qué aconteció? 25. Are you concerned that it may become too expensive to live in Lincoln Heights in the Future? YES / NO ¿Le preocupa a usted que pudiera ser demasiado caro vivir en Lincoln Heights en el futuro? SI / NO 26. Why? ¿Por qué? BUILDING A BASE TO PREVENT DISPLACEMENT IN LINCOLN HEIGHTS: Emancipatory-Action Research for a Healthy, Sustainable Community Page 2-40 III. The Future of Lincoln Heights / El Futuro de Lincoln Heights: 27. What do you think would improve your neighborhood? Please prioritize them and explain. ¿Que mejoraría su vecindad? Favor de priorizarlos y ser detallado. 1st./1r° 2nd./2° 3rd./3° 28. What type of housing would you prefer be built in Lincoln Heights? Please rate your preference from 1st to last (#1 being the most important) ____Single-family homes ____Condos ____Apartments _____Luxury Lofts ¿Qué tipo de vivienda preferiría usted que construyeran en Lincoln Heights? Favor de priorizar su preferencia entre 1 a 4 (#1 sería lo más importante) ____Casas para familias ____ Condominios ____ Apartamentos ____ Estudios de Lujo 29. What kinds of businesses would you like to see come in to Lincoln Heights? Please prioritize them and explain. ¿Qué tipos de negocios le gustaría a usted que desarrollaran en Lincoln Heights? Favor de priorizarlos y ser detallado. 1st./1r° 2nd./2° 3rd./3° 30. What would you take out/remove from Lincoln Heights? Please prioritize them and explain. ¿Qué quisiera quitar / remover de Lincoln Heights? Favor de priorizarlos y ser detallado. 1st./1r° 2nd./2° 3rd./3° ¡Muchísimas gracias por su participación! Thank you so much for your participation! If you would like to have a copy of our final report, please include your name, email and / or phone number (Optional). Si le gustaría recibir una copia de nuestro reporte, favor de incluir su nombre, correo electrónico y/o número telefónico (Opcional). BUILDING A BASE TO PREVENT DISPLACEMENT IN LINCOLN HEIGHTS: Emancipatory-Action Research for a Healthy, Sustainable Community Page 2-41 V. Your Community, Your Priorities / Su Comunidad, Sus Prioridades ¿Si usted tenía que dar prioridades a las cosas más importantes hacer en Lincoln Heights, qué serian? Favor de leer la lista, entonces escoge las cinco cosas más importantes que a usted le gustaría ver en Lincoln Heights. Por favor marcarlos con una palomita. También se puede incluir otras ideas que usted tiene que no aparecen en la lista. If you had to prioritize the most important things to do in Lincoln Heights, what would they be? Please read the whole list then choose the five most important things you would like to see in Lincoln Heights and put a check mark next to them. Also, please feel free to add other ideas you have that we may have left out. More activities for youth Más actividades para los jóvenes Better street lighting Mejor alumbramiento en las calles Better traffic control Mejor control del tráfico More affordable housing Más viviendas económicas Parks and recreation areas Áreas de recreación y parques More street signs Más señalamientos de tránsito Better grocery stores More Child care facilities More police Arts programs Neighborhood cleanliness After school programs Better Public Transportation __________________(Other) Mejor supermercados Más guarderías infantiles Más policías Programas de arte Limpieza en la vecindad Programas después de la escuela Mejor transporte público (Otra)_____________________ BUILDING A BASE TO PREVENT DISPLACEMENT IN LINCOLN HEIGHTS: Emancipatory-Action Research for a Healthy, Sustainable Community Page 2-42 References Acuña, Rodolfo. A Community Under Seige (1984). Monograph. Los Angeles: Studies Research Center University of California Bermudez, Antonio and Michael Coyne, Liz Fowler, Mary Novak, and Cheryl Stump (2003) Avenue 26: Re-connecting a Community. University of California Los Angeles, Department of Urban Planning Spring browne, jaron, marisa franco, jason negrón-gonzales, and steve williams (2005). towards land, work & power: charting a path of resistance to u.s.-led imperialism. Unite to Fight Press: San Francisco California Department of Education. Academic Performance Index Information Guide. (2006) http://www.cde.ca.gov/ta/ac/ap/documents/infoguide06b.p Craigslist. Widely used on-line search database. www.craigslist.org Delp, Linda, Mirando Outman-Kramer, Susan J. Schurman, and Kent Wong editors (2002). Teaching for Change: Popular Education and the Labor Movement. UCLA Center for Labor Research and Education: Los Angeles Department of City Planning. North East Los Angeles Community Plan (2003) http://plncts.lacity.org/complan/pdf/nlacptxt.pdf Fullilove, Mindy Thompson M.D. (1996) Psychiatric Implications of Displacement: Contributions from the Psychology of Place. The American Journal of Psychiatry Freire, Paulo (1990). Pedagogy of the Oppressed. New York: Continuum Here is Your Community Service Organization pamphlet. Los Angeles: Community Service Organization (1951), 5, in Galarza Papers, Box 13-7 Javier, Juan. La Comunidad En Lucha: The Development Of The East Los Angeles High School Blowouts (March, 1990). Working Papers Series. No. 29 Inda Stanford University Ledwith, Margaret (2005). Community Development: A Critical Approach. The Policy Press: UK Lessel, Helen. LA Times Real Estate. April 2nd, 2006, Levy, Diane K., Jennifer Comey and Sandra Padilla (2006). In the Face of Gentrification: Case Studies of Local Efforts to Mitigate Displacement. The Urban Institute. Metropolitan Housing and Communities Policy Center. Washington, DC BUILDING A BASE TO PREVENT DISPLACEMENT IN LINCOLN HEIGHTS: Emancipatory-Action Research for a Healthy, Sustainable Community Page 2-43 National Park Service.http://www.cr.nps.gov/history/online_books/5views/5views5d.htm. A History of Mexican Americans in California: World War II and Its Aftermath Accessed May 30, 2007 New York City Anti-Gentrification Network: Summation of Convenings. Informational handout given to participants at “The Right to the City” convening in Los Angeles. January 2007 Smith, Neil (2002). New Globalism, New Urbanism: Gentrification as Global Strategy. Antipode U.S. Census Bureau, 2005 American Community Survey Walls, David. http://www.sonoma.edu/sociology/dWalls/commun.html , The Workbook, Summer 1994. Copyright 1994, 1996 Accessed May 30, 2007 Yancy, George (2004). ed. What White Looks Like: African-American Philosophers on the Whiteness Question. New York: Routledge Press. End Notes: i The Median Family Income in the Los Angeles County is estimated at $56,500 dollars (HUD, 2007). This is almost three times as much as an average laundry worker earns, which is estimated to be under $18,900 a year according to the Labor Federation. This means that on average, laundry and other service employed residents living in Lincoln Heights can not afford an “affordable housing” unit in any of the four developments mentioned above. BUILDING A BASE TO PREVENT DISPLACEMENT IN LINCOLN HEIGHTS: Emancipatory-Action Research for a Healthy, Sustainable Community Page 2-44 Chapter 3 BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Robert Rubio Takatoshi Wako 3.1 INTRODUCTION Across the country, the effects of gentrification can be seen on ethnic enclaves of all types. Among the communities most affected are the historically African American communities of our major cities such as the Bay View Hunters Point community of San Francisco and also the Sweet Auburn District in Atlanta. In San Francisco, The Bay View Hunters Point Neighborhood is the last black neighborhood in the city of San Francisco. Currently, the neighborhood, along with the Hunters Point Ship Yard and Candlestick Point, has been declared a massive redevelopment project area. Many African Americans feel that their homes and businesses are threatened and that they will be forced out of a community they love. The community has collected over 33,000 signatures to force a referendum to challenge the redevelopment project, but it is currently tied up in legal challenges (Hogarth, 2007). Likewise, in Atlanta’s Sweet Auburn District, some residents were concerned about the addition of 159 new condos in the middle of Auburn Avenue. Auburn Avenue has been the historic center of the African American community in Atlanta and is home to numerous historic sites such as the tomb of Martin Luther King Jr. Many in the community wanted guaranteed housing for the poor and middle class, not just the wealthy. Also, there was a concern that if development isn’t handled carefully, the neighborhood could grow into something completely different from what the area has been. As one business owner stated, “The challenge is how to weave the old and the new in a way that’s representative of the historic aspect of the community” (Fausset, 2006). This is the same concern voiced by those that are trying to preserve the Leimert Park community. While residents and business owners do want to see growth in their village, they want growth based on culture and commerce, not condominiums and unwanted density. The effects of gentrification on Leimert Park artists and businesses began to be felt in 2001-2002 when one large building in the center of the village changed ownership. This building, located at 4334 Degnan Blvd., contained nine separate store fronts that housed artist galleries, the World Stage Performance Gallery and other black-owned businesses. While the previous owner kept the rents low to nurture the artists in the community, the new owner raised the rents and served eviction notices. In response, in early January of 2002, the artist and merchants held a rally to “Save Leimert Park” which was attended by hundreds of people. Many of the artists and business owners felt they were being pushed out to make way for businesses that did not reflect the historical significance of the village as a center of African American culture and commerce. As Central Avenue had lost its role as the center of culture and commerce for the African American community, there was a fear that a similar fate was awaiting Leimert Park if no action was taken to protect it. At the time, one artist stated, “Gentrification is not just a money thing. In this case it is the tearing out of a heart.” Others, such as the late great jazz pianist Horace Tapscott stated that “Lets make sure Leimert is always a place where the vibe is passed on to new generations” (Slate, 2002). BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-1 In this paper, we will highlight the issue of business gentrification in Leimert Park. By reviewing related literature and using census data, we will give a brief snapshot of Leimert Park’s history, demographics and key establishments. Based on the result of surveys intended for business owners and information gathered through interviews with them, this chapter defines the problems of business gentrification and the lack of community involvement. The process of how public agencies acted in the past and how the community responded will be described through close observation of the community, including our participation in a series of public meetings. And finally, we introduce the case study of Little Tokyo as the best example we have found to offer recommendations for Leimert Park. 3.2 SNAPSHOT OF LEIMERT PARK In order to study how gentrification is affecting the Leimert Park community in Los Angeles, this section presents a brief overview of the neighborhood history and a snapshot of its current circumstances. Though it is not a detailed historical and demographic analysis, we hope this section will provide the basic understanding for further analyses examining gentrification pressures that we explore in the following sections. Geographic Description Leimert Park, a community in southwest Los Angeles, is one of the last predominantly African American centers of culture and commerce in the western U.S. The neighborhood is approximately 1 square mile, bounded by Rodeo Road on the north, 4th Avenue and Roxton Avenue on the east, Vernon Avenue on the south, and Crenshaw Boulevard on the west. Figure 3-1: Location of Leimert Park and Leimert Park Village Source: Authors, May 2007 BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-2 Leimert Park Village is a unique commercial and African American cultural district located at the South-West corner of the Leimert Park neighborhood, surrounded by 43rd St. on the north, 43rd Place on the south, Crenshaw Blvd. on the west, and Leimert Blvd. on the east. (Figure 3-2: Leimert Park Village). Figure 3-2: Location of Leimert Park Village Source: Extracted from CRA Brochure, some information added by authors History Created by Walter H. Leimert Co. in 1927 and designed by the Olmsted brothers, the same firm responsible for New York City's Central Park, the U.S. Capitol and White House grounds, Leimert Park was one of Los Angeles' first planned communities for working and middle-class families (Robertson, 1997). Figure 3-3 is the original Olmsted plan for Leimert Park Village, and Figure 3-4 shows the rendering of the community plan for Leimert Park where the civic park and commercial center were sited at the convergence of Angeles Mesa Drive (currently Crenshaw Blvd.), Degnan Blvd, Leimert Blvd, and Vernon Ave (Hise, 1997). Leimert Plaza Park is a small triangular space. Magnolias, palms, maples and pines line the streets. The creation of Leimert Park involved many planning innovations including a heavy emphasis on organic landscaping, schools and churches located away from heavy traffic areas, and a residential street and pedestrian path system that was designed to flow directly into the Leimert Park Village commercial district. The pathway system was unusual for its time and also provided means to ensure that children would be able to walk to the neighborhood schools without walking along busy streets. BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-3 Figure 3-3: Original Olmsted Plan for Leimert Park Village Source: A collection of Hal Miller, a resident in Leimert Park Figure 3-4: Rendering of Community Plan for Leimert Park Source: Magnetic Los Angeles (Hise, 1997) BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-4 Beginning in the late 1940s and early 1950s with the removal of racial restrictions on where non-whites could live, many African Americans began to move into Leimert Park. At the same time, a large Japanese American community developed in the area. As the area became more African American, white flight began and was accelerated after the Watts riots of 1965. The Japanese Americans did not flee the area as the whites left for the Westside and the San Fernando Valley. The Leimert Park census area is still nearly 90 percent African American. Unlike other communities that saw white flight, such as West Adams, Echo Park, and Boyle Heights, the residential area of Leimert Park remained a middle class enclave with well-maintained homes and did not physically deteriorate (See Figure 3-5 for the area’s median income data). Figure 3-5: Median Income Distribution in Leimert Park and its Vicinity Source: 2000 Census A black-oriented cultural district started taking shape about 15 years ago, anchored by the Vision Theatre at the corner of 43rd Place and Leimert Boulevard and the Crossroads Theatre on Degnan Boulevard at 43rd Street (neither are open now). More than a dozen galleries also opened up. Artists, mostly black, came to the area, which began to be compared with the heydays of New York's Harlem and L.A.'s Central Avenue. It has been referred to as “the black Greenwich Village” (Lee, 2006). With the 1992 riots, a few of the businesses were burned or torn down soon after, including the Crossroad Theatre, which was turned into a large city-owned public parking lot (Fine, 2003). BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-5 Leimert Park Today Many of the commercial and residential buildings were constructed before 1940, with Arte Deco, Spanish, and Mediterranean influences. As can be seen in Figure 3-6, the Leimert Park neighborhood maintained its original planned shape for almost half a century. Figure 3-6: Aerial Photographs of Leimert Park in 1965 and 2006 (a) 1965 (Unknown sources) (b) 2006 (MS Virtual Earth) Leimert Park Village, on the other hand, experienced some scrap and build, especially after the 1992 riots (see Figure 3-7). Even with the changes that came after the riots, the village is still considered by many as the center of the African American arts scene in Los Angeles, with flourishing blues and jazz clubs, as well as numerous venues for dramatic performances and poetry readings. Today, the district is struggling to maintain its identity as several of the long term tenants are being forced out by redevelopment and rapidly increasing rents. This process will be discussed in more detail below. Figure 3-7: Aerial Photographs of Leimert Park Village in 1984, 1993, and 2006 BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-6 Key Places & Establishments in Leimert Park Leimert Plaza Park is a small pocket park designed in 1928 in the original Olmsted Plan, which is located south of Leimert Park Village and bounded by 43rd Place on the north, Vernon Blvd. on the south, Crenshaw Blvd. on the west and Leimert Blvd. on the east. The park and large fountain in its center provides a focal point for activism, a popular place for street performance and a gathering place for the community. “When the black community wants to speak out or send a message about something, quite often they come to Leimert Park to make that statement.” Lively bongo drum jam sessions held in Leimert Plaza Park every Sunday are a major scene. Degnan Boulevard is the main street in Leimert Park Village with dozen of shops, galleries and restaurants. Among the shops are the Zambezi Bazaar, which sells out of print African American books and magazines along with a large selection of gifts. Across the street is Gallery Plus which specializes in African American themed fine art, folk art, and gifts from the African Continent. Also, Gallery Plus has a wide selection of books by African American writers. Down from Gallery Plus, the Eso Won bookstore has recently relocated to the Leimert Park Village. Eso Won is one of the only African American independent bookstores left in Southern California, and often plays host to dignitaries such as former President Clinton and numerous Black authors for book signings. Along with shopping, there are restaurants such as M&M Soul Food, a Jamaican restaurant, and the 5th Street Dicks Coffee House which has been a place for local spoken word, jazz, and gospel music events. Table 3-1 shows a current inventory of businesses in Leimert Park Village. Table 3-1: A current inventory of businesses in Leimert Park Village Category Beauty Professional Services Restaurants, Café Art African Gifts, Products Medical Apparel Education Book Other Services Total # of business 14 13 7 6 6 5 3 3 2 6 65 Source: Save Leimert (March 2007) BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-7 The Vision Theater is a 1,050 seat movie house, originally built as the Leimert Theatre by Howard Hughes in 1932. Since its creation, it has been the landmark building in Leimert Park Village. Even though it has gone through numerous transitions and changed ownership several times, it is still considered by many to be the physical heart of the community. Located in the center of Leimert Park, and considered Los Angeles’ cultural Mecca, the Vision Theatre has withstood two riots and years of neglect. Finally, in 1999 the City of Los Angeles purchased the 75-year-old property and has been slowly working on a plan for its renovation and re-opening as a performing arts center (Smith and Tobin, 2005). Currently, five million dollars of 17 million needed to open the theatre has been set aside by the City. The City Councilman and the Cultural Affairs Department are currently trying to find the rest of the funds necessary so that the project can move forward. The City believes it will be four to five years before the theatre will be reopened, so currently it sits, unable to be utilized due to a lack of an occupancy permit from the Building and Safety Department. World Stage, co-founded in 1989 by world famous drummer, Billy Higgins, and poet/activist Kamau Daaood, provides a grass roots headquarters for Leimert Park. Locals, regardless of formal education or class, come to speak their minds on politics and every day life in the city. Often times, this is accomplished through spoken word, open mic nights, where those in attendance are encouraged to speak their mind through poetry. The workshop–performance space seats only fifty, but has provided a rehearsal space and a nurturing environment. During the week, there are instrumental and vocal workshops, Wednesday night poetry workshops, and Thursday night jam sessions. Over the years, the World Stage’s various workshops, jam sessions, and performance series have provided support, training, and creative outlets for a myriad of artists and musicians in the area (Lindsay, J., 2006). The Museum In Black sold African artifacts as well as artifacts from the era of slavery and had an extensive collection of slavery and segregation memorabilia. The Museum in Black closed in July of 2005 after disagreements with the landlord about the rising rent. After a short vacancy, the location was leased to Eso Won Books, bringing an African American owned and focused bookstore to Leimert Park Village. The Museum in Black moved part of it’s collection to the Dunbar Hotel on Central Avenue while it continues to search for a space and funds to relocate back into the Leimert/Crenshaw area. Demographics Total Population: The residential population grew by 18 percent, from 7,549 in 1990 to 8,911 in 2000. Racial Make-up: According to the 2000 Census, African American people make up almost 90 percent of the population while Asian (5.1 percent) and Latino (4 percent) follow. Whites comprise only 1.1 percent of the population. This racial distribution is totally different when compared to neighboring communities. As can be seen in Figure BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-8 3-7 while African Americans make up only 11.2 percent of the total population of the City of Los Angeles, and even less (9.8 percent) within the whole county. Age: Seniors (age 65 and over) make up 20.7 percent of the population, which is significantly larger than city-wide average of 9.7 percent. Income: Leimert Park is comprised of middle-income residents. The median income of Leimert Park ranges between $28,897 and $53,063 (Census 2000), which is between 79 and 144 percent of the City’s median income ($36,687). Housing: There are about 4,500 housing units in Leimert Park. Nearly half (46.3 percent) of the housing units are single detached units while the rest of them are small multifamily units. Forty-five percent of the units are owner occupied, which is significantly higher than the City’s average (38.6 percent). Sixty-seven percent of all the units were built before 1950; 30 percent of all the units were built earlier than 1939. (See Figure 3-8). Figure 3-8: Demographics of Leimert Park and its vicinity % Black % Latino % Asian % Age over 65 Median Rent Median Housing Value Source: Census 2000 BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-9 3.3 DEFINING THE PROBLEMS The Loss of Community Identity as an African American Center for Culture and Commerce and Threat of Businesses Gentrification Gentrification in Los Angeles There exist various definitions of gentrification. According to Smith (1996): Gentrification is the process...by which poor and working-class neighborhoods in the inner city are refurbished by an influx of private capital and middle-class homebuyers and renters....a dramatic yet unpredicted reversal of what most twentieth-century urban theories had been predicting as the fate of the central and inner-city. Like most weather patterns that sweep across Southern California, gentrification primarily moved from west to east throughout the late 1990s, passing through neighborhood after neighborhood as buyers and renters alike realized they could no longer afford the places they wanted. Buyers priced out of Santa Monica tried Venice. Those who gave up on the Westside headed east to Los Feliz. As the 20th century drew to a close, the development weather pattern kept driving east, making its way into Silver Lake where it branched off in multiple directions (Zahniser, 2006). Commercial gentrification reached Leimert Park in early 2001, and increased with the rise of the real estate market in the past two years. Gentrification in Leimert Park Village The Leimert Park neighborhood did not face gentrification issues as early as other ethnic enclaves such as Little Tokyo, Chinatown, Korean Town, Thai Town, and Historic Filipino Town (Apisakkui, Huynh, Lee and Sunoo, 2006). This might be because of its location in South Los Angeles, or distance from downtown. Another possible reason is the relatively high owner-occupancy ratio of the residential units. However, in 2001, commercial gentrification started in Leimert Park Village through redevelopment. Because of this the neighborhood quickly began to fear losing its identity. Several of the long term tenants were being forced out by redevelopment and rapidly increasing rents. One of the first businesses in Leimert Park to feel the sting of gentrification was Zambezi Bazaar, a unique gift shop that carries a wide selection of out-of-print black literature and gifts. Opened in 1991 by two sisters, Mary Kimbrough and Jackie Ryan, Zambezi Bazaar is a small family run business that has successfully operated in Leimert Park Village for over 15 years. While their shop was able to survive the decline in business that occurred after the 1992 civil unrest, they are now concerned that they will be forced out because of rising rents. The sisters believe the City and Community Redevelopment Agency (CRA) are trying to replace black-oriented businesses with businesses and national chains that BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-10 cater to wealthier white customers as a means of boosting tax revenue. Jackie Ryan believes “the whole thing is to remove black people.” The sisters feel that if their building is replaced by a large mixed-use building of shops with high-end condos above, they will not be able to pay the rent that such a building would command. As it is, their rent has gone from $595.00 in 2001 to $2000.00 a month. If it were to go any higher they may be forced to close or relocate (Glazer and Pregaman, 2007). As president of the Leimert Park Merchants Association, Jackie Ryan has played an integral part in the formation of the Save Leimert Neighborhood Coalition, bringing commercial property owners, small business owners, and residents together in order to preserve and strengthen the cultural and commercial enclave of Leimert Park Village. Another example of the effects of rising rents and real estate values can be seen in the situation of the Black Employees Association, a nonprofit corporation that is located in Leimert Park Village. Having been located in the area for decades, they are currently searching for other communities to relocate to due to rising rents. Their landlord plans to double their rent when their lease expires in July. Such a large rent increase is not something the nonprofit could financially support. Unfortunately for Leimert Park Village, if the Black Employees Association relocates, the neighborhood may loose two additional nonprofits and a private security company who currently sub-leases from the association. We conducted a survey of small businesses in Leimert Park Village from April 19 to 27, 2007, to gather basic information such as ownership status and rent increase (See the survey questionnaire in Appendix A). There exist 76 small businesses in the Leimert Park Village. Out of that, we were able to contact half of them, and completed surveys for 18 business owners (24 percent) as of May 2, 2007. The following is the summary of the results from the survey. • • • • • • • 83 percent of the businesses are African American owned. Half of the businesses are women owned. All of them are business tenants. Most of the owners of the building live outside of Leimert Park. There are four business tenants who are planning to relocate their businesses due to rent increase. On average they have been in business for 13.5 years. Some tenants are experiencing a rapid surge of rent, while others enjoy stable rent thanks to their building owners’ favor. Figure 3-9 shows how the rents increased between 1990 and now. Due to privacy concerns, the data is an average of all of the answers received. There are differences to the extent of rent increases, but in general, it can be said that rent started increasing in 2000, and have doubled in seven years. BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-11 While conducting the surveys, it was clear from the large majority of business owners that they wanted to base development on culture and commerce, not housing, which is the predominant surrounding land use. Also, many wanted to see additional space for professional services such as lawyers and medical services. Some wanted to see development based on encouraging minority-owned small businesses and all were in agreement that the speedy reopening of the Vision Theatre was essential in bringing about economic and cultural growth. Many wanted to see the Leimert Park Village promoted as a national tourist destination as the center for black art and culture in Los Angeles. Others were feeling the effects of high rent increases, and one respondent felt that a new building owner was aggressively trying to force them out of their space where they have been operating their business for nearly 30 years. Although they have five years left on their lease, they may be forced to go earlier due to the inability to pay high legal fees to fight their eviction. Figure 3-9: Rent Increase of 18 Businesses in Leimert Park Village from 1990-2007 $1.6 Monthly Rent ($/sqft.) $1.4 $1.2 $1.0 $0.8 $0.6 $0.4 1990 1995 2000 Year 2005 Source: authors Compounding the frustrations of the merchants is the fact that there is little opportunity to express their concerns about their situation to the City decision makers. Likewise, the City and CRA policies that seem to be helping to encourage the gentrification of the merchant district are usually created with very little involvement from the merchant community. We also would like to bring attention to the lack of community involvement in the planning process, which will be explained more in the next section. BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-12 3.4 REDEVELOPMENT, THE LACK OF COMMUNITY PARTICIPATION AND COMMUNITY AWARENESS In her briefing at the UCLA School of Public Affairs, Cecilia Estolano, the new CEO of the CRA addressed how horrible and miserable past community outreach attempts of the CRA were. Some of the CRA’s problems with outreach included the lack of sending notices to effected communities, and attendance issues with the Community Advisory Committee (CAC) board members whose responsibility is to hear the concern of the community. She also recognized that the CRA needs strategic planning at the community level (Estolano, 2007). The redevelopment process in Leimert Park was a typical case of what she described. This chapter explains how the community was neglected in the redevelopment process, how the community responded, and what happened as a result. CRA’s “Redevelopment” Leimert Park Village became part of the CRA’s Crenshaw project area, which also includes the Baldwin Hills- Crenshaw Plaza, when the Plans were amended in late 1994 in response to the 1992 civil disturbances (see Figure 3-10 for the project area boundary). For the past 12 years, the CRA has spent over $600,000 on streetscape and business facade improvements in Leimert Park Village. Currently, the CRA is studying the possibility of merging and expanding the project areas in South LA. While the CRA states that their study only includes the commercial area, they have hired GRC Associates, a private consultant, to implement a blight analysis on all properties located one quarter of a mile from the current project boundaries, which includes the quiet residential neighborhood of Leimert Park (CRA/LA, 2006). It is vital for the CRA to find blight in the surrounding residential area for two main reasons. First, a declaration of blight is necessary for the CRA to retain the power of eminent domain. This eminent domain authority is necessary should the CRA want to combine smaller parcels in the area to create larger ones for redevelopment. Secondly, the CRA needs the blight designation so that they will be able to gain increased property tax increment from the expanded redevelopment zone. Residents are angered that their beautiful, historic neighborhood is currently under blight analysis and fear that a positive blight finding would hurt their property values and possibly lead to the threat of eminent domain being used against their properties. At a minimum, the intention of the CRA is to find blight so that they can gain more tax increment money which will be used to boost the redevelopment process (see Figure 3-11). BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-13 Figure 3-10: CRA Crenshaw Redevelopment Area Source: CRA/LA Figure 3-11: Photo of Leimert Park Village Commercial/Residential Does this look like blight? Source: Robert Rubio BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-14 LANI Initiative Leimert Park, like other areas of South Los Angeles, was affected by the riots of 1992 and the Northridge earthquake of 1994. One of the City’s responses at the time to improve the condition of economically depressed areas was the creation of the Los Angeles Neighborhood Initiative (LANI). The purpose of LANI was to try to give specific neighborhoods a boost economically and physically through the “jump starting” of improvements such as new landscaping and business facade improvements. The City of Los Angeles, at the request of Council District 8, selected LANI to administer the Leimert Park Neighborhood Block Grant (NBG) Program ($948,000) in order to create community consensus for targeted improvements while expediting the permitting and development of these improvements. Community priorities for the NBG funds included facade and signage improvements along the commercial corridors and landscaping improvements in adjacent residential areas. The planning and design for facade, signage, and landscaping improvements was completed in March 2003. Construction of the facade improvements was completed in winter 2005 and resulted in the revitalization of six contiguous buildings along Crenshaw Boulevard (Jaax, 2005). In the case of Leimert Park, LANI improvements were instrumental in helping stop the decay of the commercial village and create a sense of place and pride for the African American community (Arefi, 2004). Through the improvements to the physical appearance of the Leimert Park Village, many new businesses have opened, including Starbucks which had stayed away from Leimert Park for years. Also, the neighborhood improvements brought about by LANI did not come with major displacement of current residents or businesses. Master Plan for the Leimert Park Village, Community Revolt and Establishment of the Save Leimert Neighborhood Coalition In mid 2005, at the request of City Councilman Bernard Parks, the city began to work on a new Master Plan for the Leimert Park Village commercial district. Councilman Parks wanted the new plan because his office was receiving inquiries from developers and commercial property owners in the village who wanted to develop two large parking lots owned by the Los Angeles Department of Transportation (LADOT) in the heart of the village (See Figure 3-2). Three architecture firms were hired to complete the Master Plan. Initially, the new Master Plan process for Leimert Park was to be completed within a four month process. While it is unclear why the process was being expedited, there were property owners within the village and outside developers that were interested in bringing in mixed-use and additional housing to the village. While the architects did attempt to survey the business owners in the village, no attempt was made to survey any of the residents. Although the CRA and the councilman’s office felt that the residential and BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-15 commercial districts should be treated as separate entities, the community demanded that they be looked at together as they had been under the original Olmstead Master Plan. This process became more public when three of the residents attended a Crenshaw CAC meeting in February of 2006, in which renderings were shown of mixed-use development replacing much of the village. The residents in attendance felt that the process should be put in front of the entire community. However, the response of the CRA was again that the new Master Plan would not have any effect on the residents and that they did not have the time or the money to survey them. The CRA felt that one public meeting, to be held in March of 2006, would be sufficient to hear and address the concerns of the community. It was at this point that the Save Leimert Neighborhood Coalition was formed in order to alert the community to the proposed master plan. A few of the residents got together and at their own expense, prepared and mailed information to over 2,000 households urging them to attend the March meeting held by the CRA and their architects. Even though it was short notice and there was pouring rain, over 200 concerned residents showed up at the CRA meeting at Audubon Middle School. The consultants once again showed their renderings of possible developments (Figure 312), which brought about wide-spread community outrage at the possibility of having hundreds of housing units constructed in such a small area. Equally disturbing to the residents and many merchants was the potential of displacing many of the minorityowned businesses that currently exist in the village. After the overwhelming response the CRA received at the Audubon meeting, the CRA decided to hold smaller “house” meetings to make their case to the public and gain community input. These meetings were usually held in people’s homes and attended by about a dozen people, half of whom were usually CRA staff. Due to a lack of transparency in this process, Save Leimert did not endorse the meetings and continued to push to have the Master Plan process slowed down. BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-16 Figure 3-12: Draft Master Plan of Leimert Park Village Shown in the Public Meeting on March 2006 Current status Source: Photo taken by Robert Rubio CRA’s mixed-use plan Source: CRA/LA Source: CRA/LA BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-17 Leimert Park Visioning Process Led by the Coro Foundation Due to the concerns of grassroots organizations such as Save Leimert, the City suspended the Master Plan process in order to allow for more legitimate community involvement. However, on February 2007, they came back on track, and decided to hire the facilitator organization, the Coro Foundation (Coro) to collect public input and to attempt a more legitimate community involvement process. Coro has held four public meetings on February 24th, March 3rd, 10th and 17th in the interest of developing a proposal for the Leimert Park Master Plan (see Table 3-2 for the timeline related to Leimert Park Visioning Process). One of the authors participated in most of these public meetings, but he felt that the process was too hasty because the CRA set the due date for this process for the end of March. The number of participants for each meeting were somewhere between 40 and 70 people according to Coro; but it actually felt less than that because the meetings were long (3 hours) and people kept coming and going during any one meeting. On a parallel with the Coro process, the Save Leimert Neighborhood Coalition organized three workshops to develop its own alternative Master Plan in March, 2007. The number of attendants was less (between 15 and 20 people) than those in the Coro process. However, their discussion seemed to be more productive with a concrete plan of action when compared to the discussion in the Coro process. This difference between the Save Leimert plan and the Coro process can be attributed to the fact that many Save Leimert members had accumulated a large pool of knowledge while working for over a year on the issue. On the other hand the Coro process was completed in a month. Also, the scope of the Coro visioning process was contractually limited to Leimert Park Village while Save Leimert was able to develop a community plan that took the whole neighborhood into consideration, including adjacent commercial districts. After summarizing what they agreed to out of a series of workshops, Save Leimert presented their recommendations for the Leimert Park Village Master Plan (See Appendix B) in the Visioning Presentations meeting on March 17, along with other community members who presented their community visions. Coro reported their final report in the CAC meeting on April 12, 2007 (see Appendix C). The report basically said that the Visioning Process proved that while there are diverse stakeholder groups in Leimert Park Village – residents, merchants, property owners, artists, musicians, students, patrons, poets, and others – there is an overwhelming common interest in maintaining and enriching the Afro-centric culture of the village, through encouraging and protecting small business development, particularly blackowned businesses. BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-18 Table 3-2: Timeline for Leimert Park Visioning Process Date Mid 2005 Feb. 2006 Event Participants Councilman Parks with collaboration from CRA initiated new Master Plan for LPV. CRA hired architects for developing Master Plan - Architect showed the draft renderings of large-mixed use in the public meeting at Audubon Middle School. Over 200 Formation of the Save Leimert Neighborhood Coalition April, 2006 The City/CRA suspended Leimert Park Master Plan Process in order to get more community involvement May, 2006 Save Leimert took six seats on the Crenshaw Community Advisory Committee Feb. 2007 City/CRA decided to hire the Coro foundation to convene community meetings, and help develop the plan. Feb 17, 2007 History/outreach event (at Farmer’s market) by Coro Feb. 24, 2007 Leimert Park Vision Meeting (at Dorsey High) Mar 3, 2007 1st group planning meeting (at Vision Theater Lobby) Mar 10, 2007 2nd group planning meeting (at Vision Theater Lobby) March 17, 2007 April 12, 2007 May 1, 2007 Visioning Presentations Meeting (at Audubon Middle School) Final Report was presented at CAC meeting Special CAC meeting for Leimert Park Visioning Process (at Audubon Middle School) 53 45 41 (60-70) (40) (60-70) Numbers of participants in parenthesis are roughly estimated by author present BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-19 Next steps It was the actions of the Save Leimert Neighborhood Coalition that stopped the Master Plan process. It was also due to them that the CRA was forced to hire the Coro Foundation to facilitate the community’s input. Although there were some aspects that they could have improved, at large, Coro’s Leimert Park Visioning process did a good job of gathering the community’s opinion. One thing that emerged from the Coro process is that diverse stakeholder groups in Leimert Park Village – residents, merchants, property owners, artists, musicians, students, patrons, poets, and others – have an overwhelming common interest in maintaining and enriching the Afro-centric culture of the village, while at the same time, encouraging and protecting small business development, particularly black-owned businesses. However, the outcome of the Coro process does not guarantee what public agencies such as the Planning Department or CRA will do in the future. Also, at this moment, there are no legal or political powers for the community to force public agencies to take the outcome of the Visioning processes into account or to implement the community’s suggestions. Because of this, the result of both the Coro and Save Leimert Visioning processes, which were quite similar, may not be put to use. In fact, Ricardo Noguera, Regional Administrator for the South Los Angeles Regional Area in CRA, said in the special CAC meeting held on May 1, 2007, for a community review of the Coro findings, that “The report will be an addendum or one of the chapters in their report for CRA Board of Commissioners.” This statement is obvious proof of how the community’s input will most likely be treated in the future – simply an addendum, as opposed to a central piece of the plan. As the Coro Foundation suggested in their final report, the community needs to convene a meeting with representatives from various City agencies. The purpose for such a meeting would be for representative groups of the community to determine what they need from public agencies. Also, the role of the community needs to be defined and findings of the Community Visioning process need to be implemented. Right now, there are no such bodies representing Leimert Park. Any of the existing bodies such as the CAC for the CRA or Neighborhood Council are not alternatives because they are in charge of broader areas. In the next chapter, we will suggest the establishment of the Leimert Park Community Council as an overarching organization. Its role would be to have strong political influence on decision making processes by public agencies and elected officials concerning Leimert Park. We look to the Little Tokyo Community Council as the best example in the Los Angeles area of such a group. BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-20 3.5 LESSONS FROM LITTLE TOKYO FOR SAVE LEIMERT Little Tokyo Community Council (LTCC) While there are numerous ethnic enclaves within the city of Los Angeles, one of the oldest and most well known is Little Tokyo. Due to its location in the downtown area, it was one of the first neighborhoods in the city to face the forces of redevelopment and gentrification. Beginning in the 1970s, neighborhood activists began to organize to protect the rights of tenants and small cultural businesses that were being forced out by redevelopment. In particular, the area was beginning to loose a number of affordable residential hotels, a community center, and numerous small businesses to make way for a luxury hotel and shopping center. Because of this threat, three activists got together to form the Little Tokyo Service Center (LTSC) with the intention of serving the Japanese American community by preserving and improving their lives in the City. Out of their confrontation with the city and developers, the LTSC was able to force a number of concessions for the community. These concessions were the first of their kind in the city and included five years of relocation benefits for displaced artists, five years of rent subsidy for small businesses that were pushed out of their locations, and displaced residents also received relocation benefits. For the past 25 years, the LTSC has grown into a large social service organization serving all ethnicities within the Little Tokyo area. One way that the Center reaches out to all stakeholders in the community is through the Little Tokyo Community Council. The Little Tokyo Community Council (LTCC) is a nonprofit 501(c3) whose mission is to ensure that Little Tokyo would be a viable center for the Japanese American community and the Los Angeles Downtown community. LTCC consist of nearly 100 organizations ranging widely from commercial associations, religious associations, tenants organizations to mass media. (See Appendix D for the membership list). LTCC has a board of directors, where approximately 20 members are elected yearly, that holds monthly meetings to work to create a vision of what Little Tokyo should be in the future and serve as an advocate on behalf of the Little Tokyo community. One of the three founding members of the Little Tokyo Service Center was Ms. Evelyn Yoshimura. Ms. Yoshimura, who grew up in the Leimert Park community, remembers that walking home from school, she would often hear jam sessions coming from the home of the legendary singer Ray Charles. She is currently the Community Organizing Director for Little Tokyo Service Center (LTSC). According to Ms. Yoshimura, the LTCC was established in 1998 in response to a development of a retail complex including Home Depot and Starbucks on the corner of 1st street and Central Ave. The community had wanted to see a recreation center built on the site. They thought they BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-21 needed to be organized to have more influence on political and public decision-making rather than just dreaming. At first, there was no political support for the council. The turning point was in 2003, when the City was planning to construct a new 900 cell jail on the Mangrove site (northeast corner of intersection on 1st Street and Alameda Street, where the Gold Line station will be constructed). This site, located next to a very important temple and child day care center, was considered completely inappropriate for such a facility by the community. The LTCC collected more than 35,000 signatures against the new construction of the jail. In response to opposition from all over the community, and facing this broad coalition, Councilwoman Jan Perry began to cooperate with the LTCC. With her involvement, the jail plan went back to the drawing board. After that, the Mangrove Community Visioning Workshop was co-sponsored by the Councilwoman, the CRA, and the LTCC in 2005. Through the process, they identified preferred land uses such as community spaces, commercial/retail uses, and housing. LTCC is now functioning as a one-stop council where all stakeholders can distribute and gather information, and report what they are doing in Little Tokyo. Many agencies such as the CRA, the MTA (Metropolitan Transit Authority), and the DOT also attend their monthly meeting if they have something to share with the community. They know they can outreach to the community effectively through LTCC rather than outreaching to numerous individual stakeholders in the community. Recommendations: Leimert Park Community Council Little Tokyo is facing more intense redevelopment than Leimert Park Village because of its proximity to downtown L.A. and the opening of the Gold Line station. The majority of the Little Tokyo district is a redevelopment project area. While it is hard to avoid all the future development in the area, the community, public sector such as CRA and Metro, and private developers are working closely to preserve the cultural identity of Little Tokyo as a Japanese American hub through the window of the LTCC. We see a lot of similarity between Little Tokyo and the Leimert Park community in terms of their size, role as cultural hubs, ethnic concentrations, and concern in relationship with adjacent neighborhoods such as Skid Row and South L.A. However, Little Tokyo seems to have a lot of social and physical infrastructure that Leimert Park does not presently have such as a museum, library, and a coordinated planning process. The reason for this difference is that Leimert Park lacks a mechanism to facilitate and develop community consensus, which turns into a political voice. Therefore, it is our recommendation that the Leimert Park Community Council (LPCC) be created in order to build new bridges of communication between the different stakeholders in Leimert Park. The LPCC could be modeled after the LTCC. In Coro’s recommendation (see Appendix C), they also suggested the formation of such an organization. Table 3-3 is potential list of stakeholders who could play a role in a formation of the LPCC. BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-22 Table 3-3: Potential List of Stakeholders for Leimert Park Community Council Sector Public Businesses Stakeholders City of Los Angeles Community Redevelopment Agency Department of Transportation Department of Water and Power Department of Cultural Affairs Department of Recreation & Parks Los Angeles Police Department Planning Department Public Library Councilmember Parks Office Councilmember Wessons Office. Leimert Park Village Business Improvement District Leimert Park Merchants Association Banks Baldwin Hills Crenshaw Plaza African American Business Associations Residence Residents association (4th Ave. Block Club etc) Schools Audubon Middle School 42nd Street Elementary School Local high schools (Crenshaw & Dorsey) Local universities such as UCLA, Loyola, USC Religious Christ the Good Shepherd Episcopal Church West Angelus Church of God In Christ Transfiguration Catholic Church Brookings Community AME Church Other local churches and mosques Artist /Others Save Leimert The Crenshaw Community Advisory Committee to the CRA LA commons National Association for Advancement of Colored People (NAACP) Los Angeles Neighborhood Initiative (LANI) Black Employees Association KAOS network African American fraternity and sorority alumni associations Empowerment West Neighborhood Council African American Cultural Center BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-23 Through the Leimert Park Visioning Process, many of the stakeholders in the community have had an opportunity to get to know and interact with each other. Also, through the parallel processes of the Coro Foundation and the Save Leimert Visioning process, it can be said that there are many areas where there is wide community consensus. The main concern that the village maintains its Afro-centric culture and that it continues to be a place for small business development were two of the overriding visions. The difficulty at this stage is in identifying who should make up the Leimert Park Community Council and the technicalities of setting up the organization. As difficult as it may be for the stakeholders to create this new organization, its formation is necessary to leverage the momentum generated by the Leimert Park Visioning Process. Without such oversight of the CRA and City’s activities, the wishes of the stakeholders in the community will most likely continue to be set aside. Perhaps the concerns of the community can best be summed up in the words of Kamau Daaood, local business owner, poet, and art activist when he stated, “My concern is that the area be maintained for artists, for art and culture. We talk about building structures and improving the physical environment, but if a major effort is not put into developing people, the physical structures mean nothing” (Daaood, 1993). BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-24 References Apisakkui, M., Huynh D., Lee, J., and Sunoo G. (2006). Gentrification and Equitable Development in Los Angeles’ Asian Pacific American Ethnic Enclaves. A UCLA Client Project for the Asian Pacific Policy and Planning Council (A3PCON). Arefi, M. (2004). Neighborhood Jump-Starting: Los Angeles Neighborhood Initiative. Cityscape: Journal of Policy Development and research, Volume 7, Number 1, 5-22 CRA/LA (2006). Leimert Park Village: Principles for Design, Development and Market Feasibility Study. Daaood K. (Jan. 18, 1993). In the Neighborhood Leimert Park: Refining its Renaissance. Southern California Voices in Los Angeles Times Estolano, C. (April 25, 2007). New Approaches to Redevelopment in Los Angeles: CRA Role in the City's Economic Development Strategy. Senior Fellow Policy Briefing at UCLA School of Public Affairs. Fausset, R. (November 26, 2006). THE NATION; DISPATCH FROM ATLANTA; Preserving history, and a legacy, in the city; Gentrification is coming to the crumbling district around Martin Luther King Jr.'s grave. Leaders hope the renaissance lives up to his ideals. Los Angeles Times. Fine, H. (Jan 27, 2003). Where many welcome change, area sees threat to its character Spotlight on Leimert Park - Leimert Park residents fear for the future of their community. Los Angeles Business Journal Glazer, A. and Pregaman, P (April 29, 2007). Future of Post-Riot Leimert Park Unsure. Guardian United Kingdom. Hise, G. (1997). Magnetic Los Angeles: Planning the Twentieth-Century Metropolis. Baltimore and London: The Johns Hopkins University Press Hogarth, P. (May 9, 2007). As court considers BVHP referendum, Lennar plows ahead. The San Francisco Bay View National Black Newspaper. Jaax, S. (2005). Los Angeles Neighborhood Initiative (LANI); Leimert Park. Retrieved on May 1, 2007, from http://www.lani.org/leimert_park.htm Lee, G. (March 19, 2006). Los Angeles's Black Pride: Taking In the Retro Vibe of Leimert Park. Washington Post p.6. BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-25 Robertson, G. (June, 1997). Inside Leimert Park: this three-sq-mile commercial center is an example of a community recycling its dollars - Los Angeles, CA neighborhood. Black Enterprise. Lindsay, J. (2006). Leimert Park: The History/Key Places. Retrieved on Apr. 30, 2007, from http://www.leimertparkmovie.com/PressReleases/LeimertParkHistory.pdf Slate, M. (January 2002). Rally to save Leimert Park Village. Retrieved on May 16, 2007 from http://www.artistsnetwork.org/news7/news324.html Smith, N. (1996). The New Urban Frontier: Gentrification and the Revanchist City, Routledge, London and New York. Smith, S. and Tobin, P. (August 8, 2005). Vision Cultural Organization Strives to Revitalize Vision Theater. Retrieved on Apr. 30, 2007, from http://www.tobinpr.com/VisCul.asp?message=31 Zahniser, D. (August 23, 2006). Welcome to Gentrification City: Teardowns. Evictions. Investment. Rebirth. And the significance of that new gelato stand. LA Weekly BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-26 Appendix A Survey of Merchants in Leimert Park Village April 16, 2007 My name is Takatoshi Wako, a graduate student in the UCLA Urban Planning Program. I’m currently working on the project to describe what’s happening in Leimert Park with the city’s work on a new master plan for the village and the communities involvement in the process. Thank you for answering the following questions as much as possible. Your Information Name of merchant: Description of your business: Name Representative: Ethnicity of ownership: Woman owned: Address: Phone: E-mail: Yes or No Fax: Questions for all Q1: Do you own the building or are you a tenant? Q2: Approximately, what is the square footage of your space? (Owner, Tenant) Sqft. Q3: Are you planning to close or relocate your business in the near future?(Yes, No) (Please answer if you answer Yes in Q3) Q4: What is the reason for closing or relocating your business? Q5: What kind of businesses would you like to see added to the tenant mix in Leimert Park Village? Describe as much as you want. Q6: What is your opinion about the amount of parking spaces in Leimert Park? (Too much, enough (Adequate), too little) BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-27 Q7: What kind of development do you want to see on the City-owned parking lots? a. Civic Institution such as library, museum, community center etc. b. Housing c. Multilevel Parking d. Others ( ) e. Leave them as they are now Questions only for owners Q8: When did you (your family or forerunner) acquire the land? Q9: Have you ever be approached by developers to sell your land? (Yes, No) (Please answer if you answer Yes in Q9) Q10: Could you name the developers who approached you as far as you remember? Q11: Do you have a plan to sell your land? (Yes, No) (Please answer if you answer Yes in Q11) Q12: Why are you willing to sell your land? Questions only for tenants Q13: When did you (your family or forerunner) start to rent your building? Q14: Who is the owner? Where is he/she living? Who: Where: Q15: Have you ever been approached by the owner to terminate your tenancy? (Yes, No) (Please answer if you answer Yes in Q15) Q16: What was the reason for your owner to terminate your tenancy? Q17: Please describe the change in your rent as detailed as possible in the following table; BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-28 Month/ Year Rent Notes Thank you for sharing your precious time. I will walk around the village to collect your answers on this Thursday afternoon. If you have any question, feel free to contact me; Contact Information: Takatoshi Wako < [email protected]> 3270 Sawtelle Blvd. #307, Los Angeles, CA 90066 Phone: 310-922-7939; Fax: 310-398-0721 BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-29 Appendix B SAVE LEIMERT RECOMMENDATIONS FOR LEIMERT PARK VILLAGE MASTER PLAN Vision Statement: Landmark and incubator for the continued development and preservation of African American art, culture, entrepreneurship and economic development What We Value and Must Build Upon and Sustain • Historical significance to African American population • Opportunity for independent small businesses development • Focus on African American/Black culture. • Crossroad and gathering place for a wide segment of African American and Black population and culture in L.A. • Village atmosphere • Intimate and more elegant than larger shopping areas • Streetscaping – lots of trees and use of medians • Small town and personal feel • Dense but not tall • Heavy traffic kept out of area/diverted • Family oriented • Easy access shopping • Scale of village • Presence of art and culture • Consistent/historical architecture • System of walkways - “walk-able” community that is pedestrian friendly Recommendations for Master Plan • Land Use: ¾ Commercial, business and cultural district ¾ No residential units BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-30 • Building Standards: ¾ Maximum of 2 stories on Degnan and 43rd to maintain scale. ¾ Ground floor retail, commercial ¾ Second floor professional office space. • Design Character: ¾ Consistent with historical design (Streamline, Art Deco, etc) ¾ Pedestrian friendly ¾ Subject to a public review process. • Traffic and Parking: ¾ Maintain existing traffic flow - no street closures ¾ Increase parking through use of city-owned multi-level parking in existing lots. • Public Improvements: ¾ Increased police patrol via bike and foot ¾ Daily maintenance plan ¾ Signage or decorative gateway entrance Strategic Redevelopment • • • • Re-opening of Vision Theater as anchor Multi-level parking structure with ground floor retail on city owned south east parking lot to support commercial district and Village Theater. African American Cultural Research Center (e.g. Schomburg Center) on south west city owned parking lot, Library on 43rd Street Sustaining Village as African American Cultural and Economic Enclave • • • • Place parcels along Degnan in trust – Public Land Trust. Develop strategy and identify operator for management of Vision Theater. Establish year round art and culture programming and events. Increase small business loans and technical assistance in accessing new markets Putting the Plan in Action • • City fund feasibility study and adopt interim ordinance or moratorium on redevelopment of properties with existing structures along Degnan for five years to allow for establishment of Public Land Trust. CRA and City provide rent subsidies for small African American owned businesses within Village to stabilize ownership. BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-31 • Community advocate for HPOZ. Shortages and Placement of Development Opportunities Needed Resources/Services 1. Professional office buildings to generate daytime population 2. Good sit-down restaurants with extended hours a. Mexican Restaurant b. African Restaurant c. Steakhouse d. Soup Plantation e. Salad Place f. Barbeque Restaurant g. Vegan Restaurant 3. Al Fresco Dining on/in Crenshaw Community 4. Food Court 5. Ice Cream shop 6. High-end/Boutique Market (e.g. Whole Foods, Gelsons) 7. Stater Brothers 8. Internet Café 9. Delicatessen 10. Bakery 11. See’s Candy 12. Exercise Facility 13. Pharmacy/drug store 14. Hardware store 15. Office Supply (eg Staples, Office Depot, Office Max) 16. Copy Services (e.g. Kinkos) 17. Mail Services (Fed-Ex, UPS) 18. Art Supplies 19. Hobby/Craft Store 20. Library 21. Performing Arts Center (music and dance) 22. African Dance 23. Museum (for exhibition of historical contribution of Black Entertainment) 24. Senior Community Center (e.g. Culver City Center) 25. Education Center (tutorial services, training, etc) 26. Job Training Center 27. Chess Pavilion 28. Domino Pavilion 29. Dress Shop/Tailors 30. High end Clothing Store 31. Pet Store 32. Pet Day Care 33. Pet Park 34. Day Spa BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Recommended Location Village Crenshaw Marlton X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X Page 3-32 Needed Resources/Services 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. Florists Quality Furniture Store Antique Furniture Store Car Wash Independently owned music stores (and support existing) Small Hotel/Conference Center Wine Bar/Cocktail Lounge Sports Bar Bookstore (support existing) Photo Studio Visitor/Tourist Center Area wide parking plan to increase parking with multilevel structures 47. WI-FI Cloud over Village 48. Transportation Center/Station in anticipation of Crenshaw Corridor Recommended Location Village Crenshaw X X X X X X Marlton X X X X X X X X X X X X X X X X Other Recommendations: Re-use of Pacific Bell Building on Vernon and 11th Ave for housing, YMCA, Mixed-Use SAVE LEIMERT Neighborhood Coalition consist of residents and merchants in the Leimert Park Village and residential area supporting a community education and engagement process to preserve the architecture, history, art, culture and economic contribution of the African American community as reflected in Leimert Park and the Historical Leimert Park Village for generations to come. For more information go to: saveliemert.org BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-33 Appendix C Leimert Park Visioning Process February 2007- April 2007 Image by Michael Massenburg Facilitated by: Coro Southern California Deanna Cherry, Project Manager Rhoda Jackson, Logistics Coordinator Coro Fellows: Samuel Filler Jessica Lall Matthew Mornick Jennifer Wood Evan Westrup Consultant: Karen Mack, LA Commons BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-34 Background To bring greater clarity and to document the community of Leimert Park’s vision for the Leimert Park commercial area to light, the Crenshaw 8 Community Advisory Committee (CAC) hired Coro Southern California on February 5, 2007, to facilitate a community visioning process that would complete on March 17, 2007. That process was to include: outreach to local residents and stakeholder groups, a series of community meetings, preparation of stakeholder group proposals to the community, and a final written summary of the process and its outcomes. This report represents the final deliverable for this process, with the understanding that it can and should be amended as needed and used as a starting point to build a platform for further community discussion, organizing and communication among stakeholder groups and the City of Los Angeles regarding the future of the Leimert Park Village commercial area. Priorities In sum, the vision process proved that while there are diverse stakeholder groups in the Leimert Park Village – encompassing residents, merchants, property owners, artists, musicians, students, patrons, poets and others – there is an overwhelming interest in the following: • Reopening of the Vision Theatre as a cornerstone for arts and educational activities, as well as a means for greater collaboration among the various entities in and surrounding the village. There is an interest on behalf of many in the community to support with fundraising to expedite its re-opening, and I would encourage the city to take an inclusive approach in building a support base for the theatre given its unique place in the history and future of the village. • Maintaining and enriching the afro-centric culture of the village, through encouraging and protecting small business development, particularly Blackowned businesses and those that promote the African-American and African cultures. The most popular ideas, among the many shared were more sit-down restaurants, a small grocery market, and a new music venue. • Improving safety, cleanliness, and store-front facades while keeping Leimert’s unique “village feel” with its mix of political and arts activities, and friendly atmosphere. The overwhelming majority of ideas shared enjoyed widespread support. The next steps will be: • Determining which items are best supported by which city entities charged with providing services and oversight in the village, • Determining which entities in the village will guide and monitor the action items (the BID, the CAC, Save Leimert Park etc.). • Developing a vital tool for productively orchestrating the development of the village, i.e. the assembly of a diverse stakeholder group that has an agreed upon shared vision, which can serve as a one-stop negotiating body with developers and city agencies, as these plans move forward. It would be prohibitive for any city entity or private property owner to engage each stakeholder group separately, and the report demonstrated that there is sufficient consensus for such a body to be formed. BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-35 • Continuing to cultivate community leadership, which is comfortable and capable to speak on behalf of the interest group they represent. This provides a coordinated yet inclusive means for moving various projects forward. Proper Use of the Report This report in no way purports to be representative of all of the community – since only a sub-group of the community participated. It is not inclusive of many plans and documents prepared by community leaders and professionals that would be useful in providing a more complete representation of the needs to be considered in developing the village. Rather, it documents the beginning of a process, and includes recommendations for next steps in that process. The goal of community engagement here is to ensure the community’s needs are more fully understood and that the various points of view are fairly taken into account in the determining policies and approving projects that impact the Leimert Park commercial area. Attribution and Acknowledgment Thank you for the wonderful opportunity to work in Leimert Park. We were honored to be chosen to help deliver this visioning process, and I am confident the results of this process have the promise of providing a new, more collaborative means of conducting community planning in Los Angeles. This report was prepared by Deanna Cherry, of Coro, as a consultant to the Crenshaw 8 CAC. Any mistakes or omissions are the sole responsibility of the consultant, and are not a reflection on the CAC. Notification of mistakes and omissions should be made to both the CAC and to Coro for immediate correction or revision. The Leimert Park Visioning process benefited greatly from the long hours and a tremendous amount of energy community members invested into completing a visioning process in a relatively short amount of time. The involvement of each of the over 200 individuals who took time out to join in this process is a testament to both the high level of civic concern for the Leimert community and the importance of Leimert Park Village commercial area. This process would not have been possible without the involvement and support of the CAC Ad-Hoc Committee, including Joyce Perkins, Lark Galloway-Gilliam, Vickie Scarbrough, Joseph Hubbard, and Laura Hendricks. This process was made more relevant through the advice and counsel of many city and community leaders, among them Ben Caldwell, Clint Rosemond, David Roberts, Ron and Richard Harris, Avis Ridley-Thomas, Jimmy Valentine, Jackie Ryan, James Fugate, Tom Hamilton, Dwight Trible, Michael Datcher, Kevin Fridlington and many others. Special thanks is extended to Curtis Fralin, Faisal Roble and Megan Hunter from LA City Planning, Ernest Dillihay from LA Cultural Affairs, David Denton consultant for the CRA, and Ken Bernstein of the LA Mayor’s Office, who took time out of their weekends to support the visioning process. Finally, this project would not have been possible without the tireless work of five volunteer Coro Fellows who collectively donated 2,000 hours to ensure the process was run professionally, inclusively and as smoothly as possible. Context BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-36 Leimert Park Village is unique. It is a community developed over many years with relationships that reach back half a century. It is a mix of people - business owners, property owners, artists, musicians, poets, visitors, regulars, youth, government employees and others who have an interest in how the village evolves over time. For the purposes of this work, Leimert Park Village was defined as the area bordered by Leimert Blvd., 42nd Street, Vernon, and inclusive of both the west and east sides of Crenshaw between 42nd Street and Vernon. The village exists in a context where there is increasing interest in private and public investment in South Los Angeles. After many years of economic disinvestment, the area around Leimert Park has seen a rapid increase in new and renovated structures. Meanwhile, housing costs in South Los Angeles are on the rise, some three to four-fold over the past five years. Commercial property has seen a similar increase, putting pressure on new owners to raise rents for those leasing space. The effects of these shifts have been seen in the village itself. Rising mortgages, delayed repair maintenance and the contribution of property owners to a new business improvement district have increased rents in some buildings leading to the displacement of some of the villages most noted establishments. Rising rents have also led to a decline in the artist population that once rented apartments in the near-by residential area. Without resident artists the level of performance & art available in the village has declined. Still many key establishments remain in the village, and artists still perform in local venues on a regular basis. In addition, a new farmers market and ongoing festivals remain a part of the Leimert Park event calendar. Out of its unique history has grown an interest in preserving the village’s size and scope, protecting its current merchants, and maintaining its afro-centric culture and art. Meanwhile, there is also an interest in bringing more vitality to the business district, both to ensure the success of the existing businesses and to bring in new businesses that serve diverse community needs. Add to this the interest in re-opening the Vision Theatre, and perhaps adding a new public library, and even some mixed-use projects that would combine new condominiums with new retail. The tensions that emerge out of the desire to preserve the village and the desire to increase its vitality are a natural part of community planning, and through this visioning process stakeholders have begun to identify areas of agreement and are perhaps now more than ever, ready to negotiate through their differences to a shared understanding of how both the vitality and preservations interests can be met. What has been needed is greater specificity on both sides – with those interested in preservation linking to a specific plan for what, in their opinion, needs to be conserved. Likewise, those interested in development are coming closer to identifying key benchmarks that would clarify how development could move forward with community input and with respect for the current culture and strengths of the village. What is vital to the success of any planning process is open communication among the city and community groups. In the Leimert Park area, development is supervised by the BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-37 City Councilman Bernard Parks and his experienced economic development deputy David Roberts. The council office works with the Los Angeles Community Redevelopment Agency (CRA) in areas, like Leimert Park, that are designated a redevelopment areas. The CRA is charged with garnering financial resources, and developing concepts to revitalize underdeveloped areas of Los Angeles. In recent years, the CRA has engaged in a number of community projects in South Los Angeles with varying degrees of community input. More recently, communities have sought greater input into the CRA projects. The LA Planning Department has also become more active in soliciting community input into revisions of the city’s General Plan. Yet, despite long processes and community involvement, the CRA and City Council are not bound to comply with community recommendations. Recent and dramatic examples of projects approved in contradiction with community visions, makes it difficult to ensure any community visioning process will hold sway in final decision making. However the ramifications and environment created when community planning is dismissed can be easily avoided in Leimert. While an architect and consultants have been hired to develop plans for a renovated Leimert Park Village, and are planning to present their plans in June 2007, there is still time to bridge the architects and consultants with key stakeholders in Liemert and through authentic engagement with them gain the benefit of broad community input and guidance to the process of developing the village. In to this context, Coro was hired to lead a series of community visioning processes to help gather the community’s input for integration into future CRA development guidelines for the city. With a background in community civic engagement and leadership development, Coro’s approach has been not only to create a clean process free of an intended outcome, that invites all community stakeholders and that documents all of the feedback provided in an accessible format, but to use the process to consolidate the community. We would like to also encourage community leadership in the village that, in the absence of a more formal process, to improvise and work collaboratively with the city and private developers on a shared plan for the area. Coro acknowledges that within the context described above, it was difficult to establish trust with community members. The tension between preservation and development, a relatively low level of public trust in government process, the ethnic make-up of the Coro team, not to mention the fatigue felt by many who have engaged in many community planning process that led to little result – meant that many members of the community logically hesitated before buying into this new process. Many others chose not to participate at all. Nevertheless, we affirm that the development of consensus between community stakeholders that was articulated provides a strong platform from which to assert an agenda for the village. The intersections clearly articulated in this process provide new strength and clarity that may make it harder for the village to be developed in a way that is unsavory to those who hold it so dear, and would lay a path for “right” development in the minds of many. We hope this report provides both insight into the Leimert Park Visioning Process, a template for replication of the process in other areas of the city, and the information the community generated in an unadulterated form. What is left is to recon with is how this BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-38 information will be used to help shape a future of the village that builds on what was learned in this process. Visioning Process Timeline o Coro hired (2/5/07) o Initial presentation at CAC meeting (2/8/07) o Distribution of flyers and questionnaires – 7,000 distributed o One-on-one outreach – focus on merchants, property owners, residents Neighborhood Councils, Block Clubs, artists, and traditional leaders. o History / outreach event at Farmer’s Market (2/17/07) o Reception for Leimert area leaders at Euphoria 360 (2/21/07) o Visioning Session at Dorsey High School (2/24/07) o Theme group meeting at Vision Theatre (3/3/07) o Update at CAC meeting (3/8/07) o Theme group meeting at Vision Theatre (3/10/07) o Presentation run through / merchant input at 5th Street Dicks (3/16/07) o Visioning presentations at Audubon Middle School (3/17/07) o Survey collected by mail and at EsoWon Book Store (2/8/07 – 3/17/07) o Report presented to CAC – (4/17/07) Rationale for Processes 1) HISTORY DAY: Coro chose to begin the process with a history day event to both acknowledge the long and relevant history of the village, the role of understanding the past in planning for the future and to help the community become more familiar with the Vision Process. It was located in the farmer’s market to take advantage of the high level of foot traffic there. 2) LEADERS RECEPTION: We then held a reception for Leimert Park area leaders to acknowledge the contributions of many people in keeping the village a vital part of Los Angeles and in particular for its role as a hub of African American arts and politics. The event was catered by five of the local restaurants, and attended by over 50 individuals. An article was written in Our Weekly chronicling the event. BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-39 3) VISIONING SESSION: The Visioning Session at Dorsey High School began with introductions of all the participants, followed by the development of a timeline of events that led up to the Visioning Process, and then we used the “Mind-Mapping” process to collect on a large sheet of butcher paper ideas about what the community liked about Leimert Park, what it didn’t like, what it wanted to see more of, and what it didn’t want to see in the future Leimert Park village. The “Mind-Mapping” process was facilitated by trained mediator from the City Attorney’s Dispute Resolution Center. Lunch was served during this process, followed by a panel with presentations on the LA Cultural Affairs & City Council office plans for development of the Vision Theatre and Pizza Hut, a representative from LA City Planning Dept. who spoke on tools to control development, a representative from LANI spoke on their streetscape projects in Leimert, a property owner spoke on his plans for developing Maverick’s Flats and property adjacent to the Vision Theatre, and a representative from Save Leimert Park who spoke about having an HPOZ (Historic Preservation Overlay Zone) in the village. 4) THEME GROUP SESSIONS (2): Coro then held two follow-up sessions to develop presentations in the areas of Cultural Identity and Civic Institutions, Preservation and , Business Development and Communication. The meetings were held in the Vision Theatre lobby to ensure proximity to local stakeholders, and meals were provided by local restaurants. Facilitators from the Office of the City Attorney worked with the groups the first meeting, and then groups were asked to self-facilitate the second meeting to help ready them for their presentations the following week. Lists were made on what the community members wanted to see in each area, and in some cases they explored what the potential positive and potential negative impacts might be of their proposals. Groups represented various and sometimes contradicting points of view, and all ideas were encouraged. The afternoon of the second meeting, representatives from the LA Planning Department, a former LA Conservancy staff member, and the CRA’s consultant on Leimert Park provided reflections on the presentations being developed. Their reflections at times contradicted one another, making clear that community planning is neither linear nor is there a definitive answer to what is “right”. Working with the charts developed by the community, Coro developed a PowerPoint presentation for use at the final Vision Presentation, which was emailed to the presenters from each group for editing. Once edited the presentation was copied for distribution at the final event. 5) MERCHANT PRESENTATION: Representatives from the three theme groups were invited to present the ideas that came out of their group for a group of local merchants the evening before the final community meeting. The purpose was two-fold; first to give merchants an opportunity to respond to the presentation and second to provide community members a chance to practice together. The Coro staff wrote down feedback from the merchants to include in the final report. 6) COMMUNITY PRESENTATIONS: The final presentation day began with informal discussions among community members, with coffee and donuts served. The importance of this was to aid in the development of new ties between stakeholders and strengthen existing ties. We then showed a clip from the film Return to Glory which outlined some of the great accomplishments made by Africans and African Americans, and the challenges faced as well. The intention in showing the film clip was to BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-40 demonstrate the great potential in the Liemert Park area, the cultural roots it celebrates, and to motivate the community to work collectively to bring an even brighter future to the village. The film clip was followed by the three presentation groups, each led by one or two community members. Interspersed throughout the program, from either a presenter or a community member, were words of recognition for the leaders – past and present – in the room, outlining their unique contribution to Liemert Park. The cumulative impact of the many kind words was a sense of uplift. The three presentations were followed by a presentation by Save Leimert Park, which outlined a similar process they had engaged in and shared their goals both for the village and for the surrounding Crenshaw and Marlton Square areas. Comment and question cards were distributed throughout the audience, which were collected and written up for this report. In addition, there were a number of speakers from the audience who came to the front of the room and took the microphone to share an idea, or elaborate on a point made earlier. Coro kept a record of the ideas shared using butcher paper in front of the room. After breaking for lunch, the group reconvened to continue the discussion. A number of areas of agreement emerged and were noted on butcher paper. Near the close of the meeting, the group arranged itself in a circle and was led in a group acknowledgment and pledge to continue to positively work toward change in Leimert. The meeting ended with a song, sung by the group, and distribution of a final survey to rank the vision items shared by importance. There was also an opportunity for attendees to volunteer to attend future meetings, and make similar presentations to other bodies. There were 150 people in attendance and thirtythree surveys were returned. 7) QUESTIONNAIRE: In addition to the meetings, Coro designed a brief questionnaire that was distributed by hand to local residents, schools and businesses through which stakeholders could share in open text form what they liked and didn’t like about the village now, and what they wanted and didn’t want in the future. This was done in recognition that only 4% of people attend community meetings of any kind, and the community needed an alternative form of providing input. The surveys could be faxed or mailed to Coro, or dropped off at Esowon Book Store in the village. In the end, 65 surveys were returned. The results are included in this report. 8) OUTREACH: Information on the activities through the Visioning Process was distributed in numerous ways. Coro hired a company to drop 7,000 flyers and questionnaires at the homes of local residents, and hired a group to make over 3,000 phone calls to local residents about upcoming meetings. Coro also purchased a mailing list and mailed 5,000 postcards to residents, and hand delivered hundreds of flyers to local merchants. Over 3,000 flyers to were taken to local schools and sent home with children, and placed on cars at local churches and the mall. Coro staff and fellows provided information at the local BID meeting, Neighborhood Council meeting, local discussion groups at Lucy Florence and the African American Museum, attended the Farmers Market, and conducted door to door outreach to local merchants, and media outlets to help ensure people knew about the process and the meetings. Coro also sent hundreds of emails to local contacts, and non-profit organizations who helped get the word out, and placed the flyer on the Coro website. BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-41 Results The summary of community priorities for the future of Leimert Park are presented here in four parts. 1) The results from the survey distributed throughout the process (2/7/073/17/07 – 65 collected). 2) The results from the questionnaires collected at the final Vision meeting 3/17/07, which asked stakeholders to weight the importance of each of the proposals made (23 collected). 3) The summary of the discussion that took place at the final Vision meeting 3/17/07, including agreed upon next steps and areas for further discussion (156 people present). 4) The notes from the merchant meeting, which reflect areas of consensus and areas of further discussion agreed upon by those present (3/16/07 – 15 people present). BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-42 1. Results of Survey from throughout the process: What people like about the village now Afro centric culture small businesses / shops arts village feel safety recent improvements diversity potential political hub parking the park non-commercial area food nice people location history farmers market events 0 2 4 6 8 10 12 14 16 18 20 Number of people What people don't like about the village now unattractive store fronts (esp. on Crenshaw) parking parking policies no youth services signage not using theatre not enough planting not enough office building space no regular business hours low variety in shops low safety low foot traffic homeless don't want to go back to the past don't like shops unfriendly business owners buildings need renovation 0 0.5 1 1.5 2 2.5 3 3.5 4 Number of people BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-43 What new things people want (most desired) franchise that fits / more, variety of small profitable businesses / black owned (5) restaurants more arts / entertainment / jazz nicer store fronts theatre open market / trader Joes no change / bring back the past businesses / go back to past artists lofts / housing / condos music venue more / better parking better branding better lighting more events more youth services better safety foot traffic area cleaner lower rent more diversity / multi-ethnic planting signage 0 2 4 6 8 10 12 14 Number of people What people want (bottom of scale) block street health classes library merchant training office building community room height limit on new buildings Kaiser Permanente love more families post office public transportation BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-44 16 2. Results from questionnaire at Final Vision meeting (3/17/07) Priorities (top to bottom) 164 Open and operating Vision Theater More cultural and arts programs and events 151 Art Association to control graffiti 149 Arts Library or Museum 146 Get more help for the homeless 145 Increase people’s efforts to clean up, add trash cans 143 Bathrooms - open and more of them, operating safely 143 An infrastructure that supports artists 142 Items Establish Neighborhood Watch 136 Increase the village’s parking capacity 132 Aggressively pursue businesses that complement Village 131 Establish National Landmark status 129 Shuttle from Mall/Crenshaw to Leimert Park 128 Leimert Park station on Crenshaw light rail line 125 Expand Farmer’s Market 124 Marketing: transit-advertising, web kiosk, viral ads 123 Foster connectivity with Crenshaw and the region 120 Maintain consistent business hours 119 Business leader training 118 Historic Preservation Overlay Zone in business district 117 Foot-paths from Mall/Crenshaw to Leimert Park 116 Develop more physical commercial spaces 113 Mural Project 107 Street closures for more pedestrian environment 107 Artists’ housing as a security measure 106 Wifi cloud 72 0 20 40 60 80 100 120 140 160 180 Total Points BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-45 Average Score per item Open and operating Vision Theater More cultural and arts programs and events Art Association to control graffiti Arts Library or Museum Get more help for the homeless Increase people’s efforts to clean up, add trash cans Bathrooms - open and more of them, operating safely An infrastructure that supports artists Establish Neighborhood Watch Increase the village’s parking capacity Aggressively pursue businesses that complement Village Establish National Landmark status Shuttle from Mall/Crenshaw to Leimert Park Leimert Park station on Crenshaw light rail line Expand Farmer’s Market Marketing: transit-advertising, web kiosk, viral ads Foster connectivity with Crenshaw and the region Maintain consistent business hours Business leader training Historic Preservation Overlay Zone in business district Foot-paths from Mall/Crenshaw to Leimert Park Develop more physical commercial spaces Mural Project Street closures for more pedestrian environment Artists’ housing as a security measure Wifi cloud 0.0 1.0 BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE 2.0 3.0 4.0 5.0 Page 3-46 6.0 3. Final Vision Presentation Summary of Discussion (3/17/07) Agreed Upon Next Steps 1) Shared meeting to identify common ground & move forward 2) Meet with city officials to share community common ground 3) Identify who needs to be at HPOZ / preservation / vitality / business discussion. Make shared decision – compromise Tool – new website - leimertparkunity.com Topics for more discussion 1) Controlling development in the Village • Balance growth / new with stability for existing – what tools do we have and need? • HPOZ – business owners, property owners, residents summit – agreement, specific plans • How to address rent issue? • Save Leimert / Coro commit to work on shared plan together • Engaging property owners around HPOZ • Preservation of buildings vs. culture • Examine issues of reparations / $ for repair • Land trust • Purchasing land in village 2) Serving & including youth • How children / youth can be included more. • Community center for youth to receive free music, dance, drama, etc. to preserve culture of Leimert Village 3) Coordinating among selves, with the City & Fundraising • ID what we can do and what city can do – define roles • Working with political leaders • Identify those who can move process forward • Solicit outside funding • Money / Funding – fundraising campaign to save Vision Theatre / Publicity • If your plan / idea not included what to do – stay involved • Who should continue to lead process? • Set timelines objectives and goals – what are we going to do? • Review original plan for Leimert Park – before changing / developing • Take a look at other cultural districts – see local leadership holding cities accountable 4) Business • How to attract professionals? - Create support structure - Physical building • Fostering loyalty to black business 5) Transportation & Housing • Expo line details BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-47 • Housing in the village (what if anything is acceptable?) 4. Merchant Presentation Notes (3/16/07) Areas of Consensus: • Maintain Black business district – own property, address the rent increases • Vision Theatre a priority – opening plan? • Remain a village atmosphere – height controls • More unity within the community – smile and say hello policy • Cleaner environment / Face-lift – what and how to make it happen? • Inventory of assets – human (leaders from the past) and physical (museum on MLK etc.) Areas of Discussion: • Vision landmark status • Increasing young entrepreneurs / celebrity role • How difficult to get wifi – how many want it? Cost / benefit • Rail? After expo Phase II 2016 + subterranean (Environmental Impact Report soon) • Ownership – how? Trust • Focus on Crenshaw as well, not Degnancentric • What does plan do to impact rent? • Big Sunday – volunteers (day of service to clean up Leimert) • Increase Park and Recs role in increase security • Recycling / Trash receptacles offered by groups interested in the environment • Debbie Allen – see if she will use the Vision Theatre exclusively • Parks and Rec – add them to the process of the cleanup • Vision Theatre – get clarification • Farmers Market – booth price, rents, use for building fund to help the existing merchants • Incorporate Leimert side buildings into the Vision Development – Artists space • Parking lots can go up in height • Possible to have mixed use buildings to generate income by developer from community • Need for parking for theatre, businesses will increase • Need green space on top of mixed use • Parking could be taken out of the village space – non-contiguous • People like Larchmont – without very much parking • Need to make sure the theatre is affordable to rent • Need agreements between Cultural Affairs and the community • Could potentially build on the other side of Leimert Blvd. • Lots of room for parking in the surrounding areas • Need to establish timeline over the next 6 months • Need to evaluate resources, power here in Leimert to recognize political power / capability BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-48 • • • • • • • Need more police right away Need to bring in youth Community needs to hold elected officials accountable Need to make sure that the process is inclusive – cast a wide net to establish priorities Need to demand that businesses on Crenshaw are involved Need to block off the street to test and get feedback Must force the change BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-49 Recommended Next Steps Developed in Collaboration with Karen Mack, LA Commons The challenge/opportunity for the Leimert Park community is to move to actionable steps based on the priorities developed during the process just completed. From the results of the community dialogue and the surveys submitted. Highly placed on everyone's list is the opening of the Vision Theater. Also ranked high on the surveys is the development of new businesses, more arts and entertainment and perhaps even a museum or library dedicated to the arts. Interestingly, other issues that placed in the top 10 on the survey had to do with creating an environment that makes people feel safe in Leimert Park and include graffiti control, addressing the needs of the homeless people, establishing neighborhood watch, etc. Finally, the evolution of the village, must find resonance inside a plan that also helps the village commercially, while respecting the preservation of existing businesses, its village scale and art-deco landmarks. To enable the community to address these priorities, we recommend several steps: 1) Encouraging the Business Improvement District to take leadership in attending to maintenance and safety issues -- graffiti, trash, bathrooms, homelessness, etc. In neighborhoods around the city, cleaning and crime prevention fall within the purview of a local BID; several hire their own security and maintenance crews. 2) Distribution of a briefing memo on the Vision Theater that communicates to the community what is required to make the facility fully operational. Additionally, it would be a good idea to activate the existing citizen oversight group or to create a new one, to hold the city staff accountable for progress on the tasks required to get it ready to host performances. It should include individuals experienced in programming theaters with responsibility for examining what it will take to operate the theater, developing scenarios for meeting these operational requirements and making recommendations to Department of Cultural Affairs, and the Council Office. 3) Build on the momentum generated during the visioning process: a) Confirm consensus: The first part of this task is to affirm consensus around the top 5 or so priorities among key stakeholders and engaging those groups not involved in the planning process in a review of the priorities (artists and property owners are two of the most important groups that were not present in significant numbers). b) Build new bridges: Convene a meeting with representatives from various city offices, and a representative group of community stakeholders to get more clarity on the CRA and City Council office processes, what they want for the village and how they intend to carry out their plans. Ideally, develop new, and stronger working relationships, and build trust that can under-gird the remaining planning and implementation processes. Agree on how frequently this group will communicate with each other and around which issues. BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-50 c) Engage the traditional leadership: Key as well will be engaging long-time supporters of the village in sharing with the community the things that made the Village the place to be and making suggestions for creating a successful Leimert Park Village in the current environment. d) Build an arts expansion plan: Because arts are the primary engine of the village, arts’ planning (beyond the opening of the theatre) is central to planning the village’s future. Facilitate a team of artists and community members in developing physical models in answer to the question: "ideally, what do we want people to experience when they come to Leimert Park Village?" This exercise would provide input for developing multiple scenarios for bringing more arts and cultural facilities and programs into the Village. e) Use the arts expansion plan to drive the economic development model: Once the community has figured out what kind of activities should be in place, then it can turn to the question of how to bring people into the Village to experience these activities. The recommended second phase of planning would tackle business development, marketing and any technology infrastructure issues. f) Get proper zoning: Review the community plan with the LA Planning Department to determine what zoning changes and other Q conditions might be needed to shape the village’s development. Explore as well mechanisms, including, HPOZ to maintain the historic aspects of the village’s architecture. Determine the best tool to achieve the desired results. g) Support the development of local leaders to build ongoing capacity for implementation of the plan: This would entail providing as much support as possible to those involved in the planning process to ensure they are well prepared to participate with access to relevant information about the neighborhood, and research and models from around the country to enable their best thinking in the creation of the plan. Additional mentoring and training would be needed to increase their ability to drive the implementation of the plan. It is critical that the CRA, the City and its contractors contribute to the community's feeling that their hard work over these last weeks in the visioning process has not been in vain. I recommend that the CAC garner additional resources from private or public sources to fund ongoing meetings and collaborative work by community stakeholders. I believe the resources exist to continue this work, and the community is poised to take advantage of an ongoing planning and implementation process. Resources: Bank of America California Community Foundation Ford Foundation Irvine Foundation Liberty Hill Foundation Open Society Foundation Union Bank Washington Mutual Bank BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-51 Facilitators include: Karen Mack, Executive Director of LA Commons, a non-profit organization that supports communities in capitalizing on their cultural strengths to turn them into sustainable and highly functioning cultural districts, like Chinatown in New York and Los Angeles. Jackie Dupont Walker, a consultant with experience in both economic development and Historic Preservation Overlay Zones. Mandala Kayese, a local activist and educator with many years of community organizing, an experienced facilitator, and a gift for bridging stakeholder groups together. BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-52 Appendix D Little Tokyo Community Council Membership BUSINESS GENTRIFICATION IN LEIMERT PARK VILLAGE Page 3-53 Chapter 4 GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Janice Burns Michael Matsunaga Polo Muñoz Nirva Parikh Jennifer Tran GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-1 EXECUTIVE SUMMARY With Downtown Los Angeles in the midst of rapid residential development, real estate developers and their supporters advocate the conversion of industrial land for residential purposes. A number of factors drive the current push for conversion, including: increasing demand for housing and the analogous scarcity of vacant land; speculative real estate forces attracted to cheap industrial land; and a New Economy focused on the Entertainment and Service sectors. Downtown L.A. proves particularly important because it: 1) is largely zoned for industrial uses; 2) supports a large number of manufacturing firms and jobs; and 3) faces the greatest pressure of industrial conversion. The welfare of the working class population that lives within the Downtown and surrounding areas has emerged as an integral, yet seemingly silent element in the local struggle for land. While the forces of gentrification threaten the housing stock and costs in surrounding low-income neighborhoods, industrial land conversion threatens jobs accessible to these communities. This report seeks to highlight this specific issue. As local decision-makers navigate the process of implementing a policy to better address industrial land uses and the negative impacts of deindustrialization, this report aims to integrate job displacement and related issues into the conversion discussion by providing an overview of the debate, a profile of downtown industries, and recommendations that support industrial land preservation. The following represents the key findings: a) Working Class People of Color are Disproportionately Affected • Latinos make up 70 percent of the local working class population while 14 percent are Asian, and nine percent are African American. • Their annual income ranges between $10,000 and $12,500. • Approximately 25 percent of workers are employed by manufacturing firms. • In addition, twenty-eight percent of the workers have attended some high school. b) Housing and Land Values are Instigating Deindustrialization • The average home price of new housing is $600,000 in the industrial areas. • Permissive land use conversion to residential and mixed use has inflated industrial land values from approximately $30 to $160 per square foot over the last ten years. Some measures indicate higher inflation. c) Manufacturing & Wholesale Trade Presence in Downtown is Significant • Manufacturing and wholesale firms compose 64 percent of all establishments and over 50 percent of all jobs in the area. • There are 1,804 manufacturing establishments in this area that supply 16,190 jobs. GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-2 • • There are 3,245 wholesale firms in the downtown area that supply 15,298 jobs. Health Care, Accommodations, Printing, and Food, Furniture, and Apparel manufacturing contain significant numbers of firms and jobs. d) Strategies and Best Practices from National Case Studies • Case studies from four cities (Chicago, San Francisco, Minneapolis, and New York) highlight such best practices as the establishment of industrial protection zones, expansion and retention programs, and financing new incentives. We conclude that community groups must take an active stance to retain industrial land in order to undercut the forces of gentrification that threaten to displace jobs. Below, we provide five possible strategies that not only demand land preservation, but also incorporate public benefits and strategies that lead to job creation and higher wages for local working class people. These strategies are: Preservation Industrial Protection Zones (IPZs) Currently the city permits conversions on industrial land on a case-by-case basis. IPZs present a focused and consistent interim alternative to this policy, helping to stabilize land values, and curb speculative development until more permanent zoning policies are implemented. Planned Manufacturing Districts (PMDs) Los Angeles City Planning and the Community Redevelopment Agency (CRA) preliminary recommendations suggest that approximately 83 percent of the City’s industrial land will remain zoned industrial. The City should take this a step further by adopting permanent, protective zoning controls to create industrial “sanctuaries” known as Planned Manufacturing Districts (PMDs). Retention and Expansion Industrial Retention and Expansion Programs (IRE) A business retention strategy would be the next step after permanent controls over zoning of industrial land are secured. Since the CRA and City Planning found that industrial land in Downtown is often utilized for small business formation, we should aim to create an environment that supports their growth and retention (2007). IRE programs allow the public sector to promote downtown’s incubator function and actively engage small businesses to foster entrepreneurship and innovation in order to secure L.A.’s role in the New Economy. Improvement Tax Increment Financing (TIF) TIF will raise money for the industrial district and use the funds collected from additional tax revenue to reinvest in infrastructure upgrades, support an IRE GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-3 program, or create workforce training programs. The steady stream of tax revenues could contribute to the stability of the district. Public Benefit Public Benefit Overlay Zoning The preliminary recommendations proposed by City Planning lead us to believe that approximately 17 percent of the city’s industrial land will be rezoned for other uses. If this re-zoning occurs, developers will benefit from parcels that now have greater development potential and value. The City can seize this opportunity to mandate developers to provide a public benefits package along with their project proposals in order to share added value with community stakeholders. GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-4 4.1 INTRODUCTION Problem Statement Industrial land in the greater downtown Los Angeles area is being threatened by the same robust activity that is transforming and gentrifying the downtown core and adjacent residential communities. As the development of luxury lofts, commercial spaces, and entertainment spaces catering to a privileged class of residents permeates the inner core, developers are now looking towards more affordable industrial land in adjacent areas to continue their expansion efforts. The scarcity of developable land, coupled with the desire of landowners to change to more lucrative land uses, has placed considerable pressure on industrial spaces. These dynamics in particular have brought the issue of rezoning industrial land to alternative uses to the forefront, leaving city officials and private and public sector stakeholders debating over the future of industrial land. Should industrial land be preserved to secure a diverse economic base and job opportunities, or should industrial land be converted to more lucrative alternative uses that the market demands? Proponents of industrial land conversions often craft their argument by emphasizing the need for housing and their goal of converting dated industrial parcels into “better” uses. While adaptive reuse and rezoning can be a powerful tool to shape the built environment, add aesthetic qualities to the community landscape, and alter the economic capacity of land, we must recognize the costs and tradeoffs that are associated with such conversions. It becomes vital to assess who reaps the benefits and who unduly bears the costs of industrial land conversions, and maybe more importantly, how these decisions will impact the long-term economic sustainability of Los Angeles. Will much needed affordable housing units be built when market-rate housing prevails? Will we allow potentially higher paying industrial jobs to be supplanted by sub par service jobs? The City of Los Angeles is currently at the crossroads of making critical decisions that will determine the fate of our scarce and valuable industrial land. While the debate continues, we contend that the conversion or displacement of industrial land in Los Angeles directly threatens the peoples’ Right to the City. Development that has displaced low-income residents and destroyed affordable multi-unit residences in favor of luxury lofts and commercial spaces now threatens to convert potentially job-rich industrial land into similar uses. A substantial displacement of industrial land can leave large segments of the city’s most vulnerable populations – low-income, transitdependent, and less educated people of color – with increasingly limited economic options. Not only has new development systematically decreased one’s right to live in the city, it now threatens to diminish one’s right to a city that provides access to quality jobs and living wages. GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-5 Goals On April 15, 2007, Jane Blumenfeld, Principal City Planner of Los Angeles, was a panelist and presenter for a session entitled “The Demise of the Industrial Revolution” at the American Planning Association’s National Conference held in Philadelphia, Pennsylvania. Several of our team members were in attendance for this session and were able to participate in a dialogue pertaining to industrial retention in major metropolitan areas. During a question and answer session, a participant posed the question: “What role have constituents played in cities’ industrial retention policies?” Ms. Blumenfeld responded by stating that there was virtually no constituency supporting industrial retention in Los Angeles and that it was surprising that community organizations and labor unions have not been at the forefront to contend with these issues. Her response was one that reflected the nature of the industrial retention issue; although vital and contentious in some realms, it is an esoteric issue largely unfamiliar to or disregarded by many people. It is to this question and response that we frame our project. The goal of our project is to educate a wider audience of constituents who have a stake in the City’s industrial land. It is imperative that the debate taking place between City Planning, the CRA, City Council members, and business advocacy groups be moved to the larger public arena. The working class people of Los Angeles and organizations who advocate on their behalf must be informed about the issues and imminent decisions that will clearly impact them. Consequently, we would like to deliver a product that can be used to inform community-based organizations and labor unions about the current debate over industrial land and provide best practices and recommendation to prevent unnecessary industrial displacement favoring parochial interests. We hope that this can be the first step to getting the people’s voices added to the decision-making process. In doing so, the objective of this project is to: • • • • Provide an overview of the debate and issues; Profile Downtown industries that may be impacted by the rezoning of industrial land; Highlight best practices from other cities that promote industrial retention; and Provide recommendations to help preserve industrial land in Los Angeles. Above all, our goal is to help preserve a diverse economy that meets the needs of Los Angeles’ diverse population by preserving land that can be used to support and enhance job opportunities for its most vulnerable communities. Not only do we urge residents and organizations to become informed and engaged in this discussion, we urge advocates to pressure decision-makers to look beyond current market conditions and prioritize the people’s right to the city that provides long-term access to quality jobs and living wages. GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-6 4.2 INDUSTRIAL LAND IN LOS ANGELES: PAST AND PRESENT History For nearly a century the Los Angeles region has been marred by land use conflicts between residential and industrial interests. These conflicts have been specially pronounced in the central city where the history of industrial zoning and environmental activism is very intertwined. Residential proponents have fervently fought encroachment of polluting industrial uses in attempts to preserve their land values and community character. Adding to these interests have been real estate speculators who have sought tremendous profits from the development of homes. Industrialists, on the other hand, have opted to capitalize on the region’s production advantages, including abundant labor and the strategic location for goods movement, while giving little consideration to environmental impacts. Although this struggle has generally favored industrialization, a growing housing shortage extending back over a decade has shifted the favor to residential interests. Regrettably, what has remained constant in this battle is the domination of market forces in facilitating benefits for an elite class while the working poor lose their homes and jobs. Figure 4-1 Los Angeles Wards, 1908 Early Industrialization: The industrial character of downtown stems largely from turn of the century business gravitation to the City’s regional center and a sentiment to diversify and expand the economy beyond tourism and real estate. Between 1899 and 1910 the City’s population tripled from 102,479 to 319,198 and the value added by manufacturing quadrupled from 7 million to 29 million (G. Hise, 2005). The industrial expansion and swelling population were accompanied by garbage accumulation, smoke and soot spewing petroleum-fired plants and other noxious industries which hurt the climate and damaged property values. Source: G. Hise, Land of Sunshine (2005) GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-7 A growing awareness of environmental degradation mobilized citizens to preserve the economic value of their neighborhoods and residences. In 1904 the City Council approved an ordinance that segregated industrial and residential districts. Subsequent statutes, passed in 1908 and 1909, parsed the city into two industrial and seven residential wards. Unfortunately, these divided the central city into an affluent West Side and a working class low-income East Side with Main Street as the dividing line. To no surprise, most industrial development and pollution took root in the East Side thanks to easy access to transportation facilities, ready labor supply, and weaker political influence. The same zoning regulations intended to enhance residential property values also created districts where industrialists held unfettered sway. At one Source: Wikipedia Image point polluting factories and effluent smells from slaughter houses and meatpacking industries moving into the sixth ward sparked severe protests from residents. High levels of home ownership meant workers in the East Side had a direct economic stake in preserving their communities. Protection of their neighborhoods took precedence over job creation. However, policy makers and economic growth proponents usually got their way. Zoning regulations were often curtailed with the help of civic boosters and business backed politicians. Figure 4-2 Los Angeles Oil Rigs 1960s – 80: While the residential-industrial conflict accelerated downtown in the early nineteen hundreds as it does today, the conflict has not been contained to this geographical area alone. Regional economic growth and permissive industrial policies throughout the twentieth century opened the door for land use battles in several working class communities during the 60s, 70s and 80s. Many examples of conversion battles exist. Forty years ago rapid population growth placed increased pressures on the city of Santa Ana to allow industrial land to be used for multiple residential projects (Los Angeles Times, 1964). In 1968 Los Angeles County Supervisor Kenneth Hahn joined opposition to any major industrial conversion of Watts’ residential sections. He and the County Planning Commission claimed that there were already numerous jobs nearby. High unemployment in South Central LA, they stated, GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-8 was due to the lack of skills and training in the workforce. Industrial redevelopment would remove residential units and uproot 37,000 people (Los Angeles Times, 1968). In 1974 residents from a small Mexican American neighborhood in East Los Angeles faced a similar predicament in their attempt to persuade the city to turn down a request to rezone their properties from residential to light industrial. Unfortunately their struggle was unsuccessful. In 1981, aiming to revitalize one of the grittier parts of the City’s core, the council passed the Artist-In-Residence (AIR) ordinance that allowed artists to legally reside in low-rise industrial warehouses in the east side of downtown. While the art scene cooled during the subsequent recession, many people remained in the converted lofts (Los Angeles Business Journal, 2005). Los Angeles at a Crossroads As L.A. moves towards trying to transform itself into a 24-hour city, the pressures of development, an urgent demand for housing, gentrification, and the increasingly scarce stock of land has sparked conversations about industrial land uses. These conversations are particularly focused on whether or not the New Economy requires the same facilities that have traditionally been demanded by manufacturing or if it’s time to rezone the land for “better” uses. Developers and businesses who wish to capitalize on the gentrifying neighborhoods surrounding the greater Downtown L.A. area (including the Downtown Core, Southeast L.A., Alameda, Chinatown, and Boyle Heights) have raised critical planning issues around industrial displacement, affordable housing development, the evolution of land use, and even more broadly, the type of economy that we envision for the future of our city (Los Angeles Department of City Planning, 2006). Figure 4-3 Los Angeles Bridge Source: Flickr When the increase in development projects and wave of condo conversions began to impact the industrial districts of the city, the City Planning Department and Community Redevelopment Agency of Los Angeles (CRA/LA) found it necessary to strategize a plan to address the industrial land crisis. In 2004, Mayor James Hahn and the City Planning Department began an Industrial Development Policy Initiative (IDPI). This was followed in December 2005 with a memo from the Mayor’s Office for Housing and Economic Development to city departments requesting their input on the conversion of industrial GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-9 land and also urging them to exercise great caution in processing land use cases and applications as the city began an in-depth survey of the uses of the City’s industrial land (B. Ovrum and A. Martinez, Memorandum, December 12, 2005). What followed shortly after was the city’s Industrial Land Use Project. Some of the highlights from the study include (City Planning, 2006): y y y y y Only eight percecnt of the city’s land is zoned industrial Industrial employment accounts for 28.5 percent of the city’s overall employment Industrial tax revenues total $219.4 million (accounting for 13 percent of the city’s total tax revenue) Twenty-seven percent of industrially-zoned land is currently not being used for industrial purposes Vacancy rates for industrial land are extremely low. Los Angeles’ industrial market is said to be the tightest market in the nation at the end of the fourth quarter in 2006 (Grubb & Ellis, 2007) Findings from the research have been used to facilitate dialogue within the impacted communities and to allow for public comment and input to the City Planning Commission as they work towards developing a broader master plan. In November 2006, the City Planning Department publicly announced their preliminary recommendations based on their research findings. Appendix A summarizes the recommendations for the five industrial districts. At this point City Planning and the CRA aim to retain about 83 percent of the current industrially zoned land and possibly rezone 17 percent of incompatible industrial land. In response to these recommendations, proponents and opponents have come forward to make their case. The Mayor, Cecilia Estolano (the CEO of CRA/LA), and the Planning Department have all openly expressed an agenda to preserve industrial land that would be of valuable use to the city in retaining quality jobs and a tax base. The key argument for industrial preservation is that before any drastic changes are made to zoning, the city must take into consideration the likelihood that once rezoned, the industrial land may never return to industrial use. The implications of this decision will shape the outlook of L.A.’s economy and restrict the possibilities for industrial sectors in the future. Figure 4-4 Biscuit Company Lofts At the other end of the debate are Councilman Huizar (CD14), Councilwoman Jan Perry (CD9), and Central City Association who propose a mix of policy recommendations. These recommendations come from a concern that City Planning’s preliminary recommendations may be too restrictive of developers. Huizar (2007) suggests that, “We do not preserve these industrial land Source: Flickr areas but allow the market to continue to push forward The Biscuit Company Lofts in Downtown LA, formerly the west coast headquarters of the National Biscuit Company GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-10 toward residential and mixed-use, and to be creative when we say mixed-use.” The Central City Association (2006) similarly proposes an alternative vision – re-zoning to create three defined districts: the Pure Industrial District, the Mixed-Use Industrial District, and the Mixed-Use Commercial Corridor – as opposed to preserving industrial zoning. The Central City East Association (CCEA), which represents property owners of the Artist, Toy and Industrial BIDs in Downtown, has also disagreed with the preliminary recommendations and argues that the Mayor’s request to use discretion in granting land use applications and permits has halted development in their districts and encroaches on property owners’ rights to use the land in a manner they see fit (E. Lopez, 2007). Estela Lopez, the Executive Director of CCEA, argues that jobs have already left the area (2007). Lopez contends that owners who have been holding properties for decades, despite the City’s failure to invest in infrastructure upgrades, should be able to capitalize on this favorable market. There are valid points to be made on both sides of the debate. Los Angeles is at a crossroads as we try to determine what a healthy economy of the future will look like while also trying to find the balance between jobs and housing. Now that preliminary recommendations have been made, the CRA and City Planning are working on finalizing their recommendations to present before the Planning Commission later this spring. For areas that may be rezoned, the change will be incorporated through a Community Plan process at which point there will be opportunities for community input (D. Spivak, 2007). GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-11 4.3 MAJOR PLAYERS IN THE DEBATE Decision-Making Process The Community Redevelopment Agency and the Department of City Planning have come together to produce recommendations that will be adopted as a finalized policy on the question of rezoning industrial land. Four personnel from both agencies are currently investigating the feasibility and future impacts of losing industrial land on the economy. This team consists of the following persons: 1. 2. 3. 4. Conni Pallini-Tipton, Planner; Department of City Planning Jane Blumenfeld, Division Manager of Citywide Planning; Department of City Planning Donald Spivack, Chief Operations; Community Redevelopment Agency Steve Andrews, Chief of Strategic Planning; Community Redevelopment Agency Their recommendations will be developed jointly with equal input by both agencies. The finalized recommendations will be presented before the Planning Commission. As we have already said in previous sections, the final adoption will occur through the community plan update. The chart below summarizes the decision-making process. Figure 4-5 Decision-making Process Joint Study CRA/PL Planning Commission Presentation Community Plan Update Process Final Adoption Phase Source: Los Angeles City Planning The community plan is a set of land use planning guidelines that governs development within specific communities. These plans are usually integrated into the General Plan for that community and substitute the land use element. The Community Plan is enforceable under the law. Therefore the general plan and the community plan govern any and all land use activity in the City of Los Angeles. The community plan update occurs every five years and it is managed by the Community Planning Bureau under the City Planning Department. The update is a complex process that includes heavy public participation and a final vote by the Los Angeles City Council is necessary for the updated plan’s final adoption. Since Director Gail Goldberg has taken control of the department, she has revised this process to increase public representation. She is particularly focused on increasing representation of marginalized and low-income persons when updating community plans. GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-12 Community planners previously relied on neighborhood councils to provide input during the public comment phase. However, neighborhood councils do not always represent the voices and opinions of all members of the community. Therefore, Director Goldberg requires community planners to reach out to more organizations to create a more inclusive process (G. Siemers, personal communication, April 13, 2007). Final decisions are made by the Community Planner and the Los Angeles City Council. Final adoption will occur up to one year from the start of the Community Planning process (See graphic below). Figure 4-6 Community Planning Flow Chart (2006) Source: Los Angeles City Planning Advocacy: Due to the bureaucratic nature of this decision-making process, community organizations must advocate for change in public and private venues to urge a resolution that will benefit the community as well as the City. It appears the research team will GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-13 remain independent of any community input besides the public comment phase. According to Conni Pallini-Tipton, a majority of the comments received during the study’s recent public comment phase were made by real estate developers and supporters of conversion (personal communication, 2007). Although the Department of City Planning is in favor of retention, it remains imperative that community organizations actively voice their opinion and monitor the process to ensure the best possible recommendations. Organizations will have more opportunities to advocate for the appropriate changes during the community plan updates. In the chart above, boxes that are highlighted in blue represent areas where community organizations may influence decision-making. As discussed in this section, Gail Goldberg wants to expand community representation beyond the neighborhood council. This opens up several spaces for action by organizations. Community organizations may engage the process in the following places: • • • • • • • • • Review plan issues and opportunities, Review plan, Public workshops, Review plan changes, Public hearings, Area Planning Committee, The Planning Commission, Planning and Land Use Management (PLUM) Committee, City Council. Although community organizations should be involved throughout the process, they should also identify the best strategy that will ensure the rights of the people. The following is a summary of possible strategies that organizations may use: • Coalition-Building: This coalition should consist of grassroots community-based organizations, labor, local community development corporations, and other groups who work with the impacted community. The coalition should build a platform that voices community concerns over industrial conversion, their demands and methods for their implementation. • Mobilize the Community: Organizations need to motivate the community to engage this issue, particularly groups who will be impacted most by the conversions. Possible strategies for mobilization include community sessions to explain the community plan process and specific areas where the community should publicly engage the issue. These areas would include the public comment and hearing phases of the community plan process. In addition, community groups should identify community leaders who can engage the issue on a longer term basis so the Planning Department realizes the community’s commitment to retain industrial land. GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-14 • Garner support from members of the Los Angeles City Council: Organizations should evaluate existing relationships with councilpersons and approach them for support. This is particularly important because the final adoption will occur by a majority vote by the Council. Therefore, garnering their support will ensure a positive result. Organizations should approach some of the key councilpersons including: Ed Reyes, Jan Perry, Jose Huizar, and Jack Weiss. Councilmen Reyes, Huizar, and Weiss are members of the PLUM Committee which reviews any planning related legislation before it is sent for a final vote before the Council. Industrial land is concentrated in Huizar and Perry’s council districts. As you will see in the recommendations section, gathering council support is crucial to implementing any legislation that will produce public benefits or job creation. Relevant Players The debate encompasses individuals from six major institutions. While some of these groups will play a role in deciding whether any of the land is converted, other institutions play the role of advocates. The latter groups represent a diversity of opinions that include the industrial business owners and real estate developers. Although few community groups have been involved so far, we believe that they will come to the forefront in the near future. Below is a list of the relevant individuals and agencies that play a central role within the industrial debate. Department of City Planning: As Director of the Planning Department, Gail Goldberg has renewed the Department’s commitment to plan communities that meet the needs for all members of the community. The San Diego Business Journal quoted Goldberg saying that she “really believe[s] strongly in participatory planning. Nobody knows a neighborhood better than the people who live there” (Jackson, 2002). As former Director of City Planning for the City of San Diego, Goldberg engaged the community for two years to update the City’s general plan so that it was inclusive and respectful of their needs (San Diego Business Journal, 2002). Given her commitment, the community is in a pivotal position to work together with the Planning Department to reach a resolution that will benefit both the City and the local residents. Community Redevelopment Agency: As previously stated, the Community Redevelopment Agency is part of the joint study for the Industrial Development Policy Initiative (IDPI). In an interview with Cecilia Estolano, Chief Executive Officer, she explained that the Agency’s mission is grounded in building “the different components that make a healthy community” (Los Angeles Downtown News, 2007). Ms. Estolano’s objectives also include “adding capacity on workforce development, on local hiring, on affordable housing, on green urbanism” (Los Angeles Downtown News, 2007). These GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-15 objectives combined with the mission highlights the CRA’s commitment to the community. With respect to the industrial study, the CRA stands in support of a balanced community that is mixed with low and high-income persons living proximate to jobs. Donald Spivack, Chief of Operations at the CRA and a member of the joint research team, believes strongly in the jobs component of this study. In a recent presentation, Spivack highlighted the necessity to create a downtown that ensures jobs remain close to housing, particularly protecting the transit-dependent (Spivack, 2007). Los Angeles City Council: The Los Angeles City Council will operate in two capacities under this issue. During the recommendations phase, the Councilpersons act as advocates by voicing their opinion on the issue (G. Siemers, personal communication, April 13, 2007). Councilpersons have done so in a variety of venues including the media. They are also allowed to submit official comments during the public comment period. Both Councilwoman Jan Perry and Councilman Jose Huizar are the two strongest advocates for industrial conversion on the City Council. One reason for their position is that a majority of the contested land falls into both of the council districts they represent. Their constituents include the residents of Boyle Heights, Little Tokyo, Central City East and Central City North as well as the industrial business owners who compose the individuals most interested in converting their land for residential purposes. Secondly, the city council is the last component in the community planning process. Once the community plan has been finalized by the planning department, the council must approve each plan with a formal vote. This vote provides constituents the space to engage the civic process by lobbying Councilpersons to support decisions that benefit the communities they represent. Los Angeles Economic Development Corporation: The Los Angeles Economic Development Corporation (LAEDC), led by Jack Kyser has publicly opposed any conversions. Kyser argues that an already limited supply of industrial land could potentially endanger the local economy (E. George, 2007). Industrial land is the only land on which firms of various industries may locate. Without land zoned for these uses, businesses will be motivated to locate elsewhere. The Central City East Association: The Central City East Association (CCEA) represents and advocates for property owners located in the Industrial, Artists, and Toy Districts. As representatives of the property owners, their members include the manufacturing business owners. The organization does not formally support conversion of industrial land. Instead, they support a property owner’s choice to decide what he or she wants to do with his or her property. Their stance is in response to the Mayor’s decision to halt developers from purchasing industrial businesses to be slated for residential construction. GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-16 According to Estela Lopez, CCEA’s Executive Director, “these properties lack the infrastructure that modern manufacturing requires” (Lopez, 2007). Downtown industrial areas have been disinvested for the past 50 years and business owners cannot afford to update their buildings to meet their growing needs. Most of these buildings serve as a façade for back-office operations. Therefore, business owners should maintain the choice to sell their property contrary to the Mayor’s decision. CCEA argue the result is beneficial to themselves, the developers, and the community at large. Residential spaces can and will revitalize these spaces and produce a positive impact on the affected neighborhoods. The Central City Association of Los Angeles: The Central City Association of Los Angeles (CCA) is a nonprofit entity that represents business and property owners located throughout the Central City. This area includes Skid Row, as well as the largest concentration of industrial land within its boundaries. The CCA avidly supports rezoning industrial land. In 2006, they drafted a report to recommend some industrial preservation and rezoning some land for light industrial mixed use. These recommendations advance the CCA’s vision for Downtown Los Angeles to create a 24-hour, vibrant Downtown complete with housing and amenities including retail and entertainment venues. GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-17 4.4 GEOGRAPHY OF DOWNTOWN LOS ANGELES Land Use In order to gain a better understanding of the general landscape, composition, and land uses of the greater Downtown Los Angeles area, we selected and examined eight adjacent zip codes that contain industrial uses that may be susceptible to industrial displacement. Figure 4-5 illustrates the general zoning for the following eight zip codes: 90012, 90013, 90014, 90015, 90021, 90023, 90031, and 90033. A large portion of the industrial uses found in the area are located just southeast of downtown with other industrial uses running along the Los Angeles River in the Boyle Heights area and north between Chinatown and Lincoln Heights. Figure 4-7 Land Use – Greater Downtown Area 2007 General Zoning Manufacturing Commercial Multiple Residential Single Residential Open Space Public Facilities Agriculture Lincoln Heights Chinatown Downtown LA Boyle Heights Source: Google Earth; Zimas GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-18 Data Gathering Areas The eight zip codes were grouped into three different areas – downtown, East L.A., and North L.A. – for the purposes of gathering and aggregating establishment and employment data. We utilized the zip codes to gather job data from the Economic Census. This data was aggregated by industry codes (NAICS – North American Industry Classification System) and summarized for the three areas. The downtown area is composed of four zip codes – 90013, 90014, 90015, and 90021. The East L.A. area is composed of 90023 and 90033, and the North L.A. area is composed of 90012 and 90031. Figure 4-8 Data Areas Data Areas Downtown East LA North LA Zip Code 90013 90014 90015 90021 90023 90033 90012 90031 Source: Google Earth GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-19 Downtown Districts Throughout the downtown area, industries are generally organized and spatially concentrated into districts. Figure 4-7 illustrates the spatial distribution of various districts that exist in the area. Given that we are concerned with the displacement of industrial land, we have given special attention to the districts in this area that are predominately zoned for manufacturing. These districts are the Artist, Miscellaneous, Produce, Seafood, Electronics, Flower, Textile/Wholesale, and Fashion Districts. Currently, an influx of development is taking place in the districts that lie on the northern and western boundaries of the downtown area. In the north, Little Tokyo continues to see the development of luxury lofts. The Financial and Jewelry Districts on the west are also seeing many historic buildings and residential hotels being converted into luxury lofts and commercial spaces. A majority of the new development is taking place in the districts surrounding the Staples Center and Convention Center. Here we see the development of an entertainment district, luxury lofts, and more commercial spaces. As development in these districts continues to expand, the adjacent districts zoned for industrial uses increasingly feel pressure for conversion. Further into the paper, we will describe and examine the type of changes taking place in some of the industrial districts. Particular attention will be focused on the conversion of industrial space in the Artist Loft District. Figure 4-9 Downtown Districts Source: Lee & Associates GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-20 Area of Focus While it would be ideal to examine the evolution of all industrial land in greater Los Angeles, we have decided to focus on one particular area – the downtown area. We do so for the following three reasons: 1) it is largely zoned for industrial uses, 2) it supports a large number of manufacturing establishments and jobs, and 3) it faces the greatest pressure for industrial conversion. This section will be used to examine industry profiles, land values, for-sale properties, and the conversion of industrial properties to alternative uses. Figure 4-10 Downtown Area of Focus Manufacturing Data Areas Area Zip Code 90013 90014 Downtown 90015 90021 Source: Google Earth; Zimas GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-21 4.5 A PROFILE OF THE AREA Methodology We obtained data from the United States Census Bureau 2000 in summary file 3. The data consists of information from census tracts that are partially or fully contained within the following zip codes: 90033, 90023, 90026, 90003, 90001, 90010, 90005, and 90057. These zip codes encompass Westlake, Boyle Heights, the eastern edge of Wilshire District, Lincoln Heights, Central City North, Central City East, and parts of Northeast Los Angeles and South Los Angeles. Some tracts also contain information for populations that live outside of our target communities; therefore, some of the statistics included below describe a much larger demographic area. For example, our calculations show that a greater percentage of persons drive a car to work even though we argue that a large percent of the target population is transit-dependent. Therefore, the information in this section is meant to provide a rough understanding of the local community. Community Demographics Low-income working class people have worked in industrial jobs and lived in the areas surrounding industrial land for nearly a century (Avila-Hernandez, 2000). Despite the impact of the New Economy and the ongoing flight of industrial businesses out of the area, this land continues to provide jobs to low-income working class populations. Yet, proponents continue to argue that conversions will benefit the greater community. Working class populations earning a minimum wage cannot afford the prices of new market rate housing and will not be able to afford their current rent or housing payments if they lose their existing income. The map below indicates populations most vulnerable to being displaced (indicated in dark red). The populations, immediately within a three mile radius of the industrial land are the most vulnerable to displacement. However, it is clear that communities located outside of the three mile buffer are also highly vulnerable to displacement based on their income, employment status, minority status, and transit dependence. In the following sections, we shall study the local area and highlight the negative relationship between industrial conversion and working class people’s right to their city. GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-22 Figure 4-11 Vulnerable Populations in Los Angeles Source: US census, ESRI TIGER/LINE Data Ethnic Composition: This area contains a significant population of people of color. The following is a breakdown of the ethnic communities: • Seventy percent are Latino, • Fourteen percent are Asian, • Nine percent are African American, and • Six percent are Caucasian Educational Attainment: There is a low rate of high school completion and an even lower rate of college attendance among local residents. • Twenty-eight percent have attended some high school, • Sixteen percent have received a high school diploma, • And six percent have an Associate’s Degree. GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-23 Access to Transit: Based on the data, the results for transit access contradict our previous assumptions about the local population. This is due in large part to limitations in capturing data specific to the neighborhoods we are studying. • Fifty-five percent of the people travel to work by car. • Fifteen percent carpool to work, • Twenty-three percent rely on public transit, • And, approximately seven percent walk or bicycle to work. Income: We have broken down income by gender. Overall both groups do not earn livable wages for the City of Los Angeles. • The highest income for both men and women falls between $10,000 and $12,500. • Over half (58 percent) of the female population earn incomes that are concentrated in the lowest five income categories, ranging between $0 and $12,500. Worker by Industry: Our analysis shows that most men and women are employed in the manufacturing industry. • Twenty-seven percent of male workers are employed in manufacturing • Twenty-three percent of female workers are employed in education and social services, • Manufacturing is the second highest industry to employ women at 22.5 percent, Poverty Status: The 2000 Federal Poverty Guideline states that an individual earning $8,350 and under per year is living in poverty (Department of Health and Human Services, 2000). However, a person earning $8,350 cannot adequately support herself in the City of Los Angeles given the high cost of living. $8,350 alone meets the cost of rent leaving an individual without money to purchase food and supplies. Therefore, we will consider poverty at 200 percent of the poverty threshold, or $16,700. We found that: • Nearly 150,000 (or 66 percent of the) people live in poverty Conclusion: After studying the area’s demographics, we believe that residents could benefit from the preservation of industrial land. The strongest indicator, workers per industry, shows that both men and women are heavily employed by manufacturing firms. While our numbers do not show a strong correlation to workers earning a high income, we believe these jobs are a last resort that provides families with money to access the basic necessities and housing. Without these jobs, these workers cannot sustain their families’ needs. Please see Appendix B for the detailed breakdown of demographic statistics. GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-24 Housing The City of Los Angeles is experiencing a steady rise in downtown housing development. Factors including adaptive reuse and speculative buying have enabled the construction of numerous housing developments. These new units cater to a wealthy upper class population of working professionals who now live and work in a changing downtown. Since 1999, 7,000 new units have been completed; 7,200 units are currently under construction while 16,900 more units are planned for the future (Downtown Center Business Improvement District, 2007). Developers and their supporters use these numbers to argue that their efforts will ease the housing crisis and revitalize the city’s core. These units cost $600,000 on average to purchase and for them to be affordable a household’s annual income must exceed $140,000. This is clearly precluding existing low-income populations from the new stock of housing that is entering their community. In this way, new and expensive housing has exacerbated the housing crisis. Challenges to New Housing: Los Angeles faces a substantial barrier to the construction of new housing given the City’s built environment. The City is nearly built out and thus redevelopment of underutilized spaces is a major source for new construction. The Housing Element of the City’s General Plan points out that some of the remaining areas untouched by development are located in the Santa Monica Mountains. However, this area precludes the possibility of affordable housing given that the Santa Monica Mountains is home to some of the wealthiest residents. In the face of such a serious challenge, the Housing Element states that “nearly all housing development in the City is expected to be infill development involving the recycling of land. In many cases, the City's policies and programs focus on utilizing the existing under-utilized zoning capacity as well as recycling” (City of LA Planning, 2007). This has been used as a green light to convert underutilized spaces such as single room occupancy residential hotels and abandoned commercial buildings into luxury condominium and loft developments. With the passage of the Adaptive Reuse Ordinance, recycling developed land was made possible. This policy supports redeveloping old, under-utilized commercial buildings for the purpose of housing. Developers have capitalized on this policy by redeveloping old buildings throughout Central City East and Central City creating a “back to the city” movement. This influx is composed of young, urban professionals, and older adults whose children no longer live at home (Soja, 2000). This market has instigated and fueled booming development occurring in the downtown area. As previously stated, since this policy’s passage, about 7,000 new units have been built (not all of these developments can be attributed to adaptive reuse). Affordability: In a study published by Kate O’Hara of the Southern California Association for Nonprofit Housing (SCANPH) the highest concentration of affordable housing is located in low-income neighborhoods (O’Hara, 2007). Low-income GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-25 neighborhoods around Downtown Los Angeles include Boyle Heights, Lincoln Heights, South Los Angeles, Westlake, and the Wilshire District (Koreatown) and represent the most affordable areas immediately surrounding new downtown housing developments for low-income persons to live. Yet these areas are experiencing a rise in the cost of housing. According to Lydia Avila-Hernandez of the East Los Angeles Community Corporation (ELACC), in 2001 the average home in Boyle Heights cost $224,000 and by 2005 home prices jumped to $565,000 (Avila-Hernandez, 2006). Similarly, rent prices in 1999 were as low as $576 a month; as of 2006 average rent has more than doubled costing over $1,300 (Avila-Hernandez, 2006). Although the cost of rent has increased over a longer period, median incomes have not increased to meet increases in the cost of living during this same period of time. According to O’Hara, low-income residents “represent over 80% of those who overpay” for housing (O’Hara, 2007). As a result, lowincome residents are forced to pay a higher percentage of income on rent, leaving little or no money to pay for other necessities such as food or bills. Low-income persons once concentrated in the City’s center because it was the most affordable. However, today the average price of a loft in Downtown Los Angeles is $651,000. Given this price, it is impossible for a low-income person to afford a home in the downtown area. Therefore, they are forced to move away and live in much more affordable areas. One area where low-income persons often move is Riverside County (Wolff, 2007). This further reduces a person’s access to jobs these low-income, transitdependent residents. The Department of City Planning and the Community Redevelopment Agency jointly commissioned Keyser Marston and Associates (KMA) to determine the affordability of housing on industrial land. KMA determined that new housing in Industrial areas is not affordable. On average, housing in the industrial areas cost $598,000 which is eight percent less than the average cost of housing in the Central Core. Yet, if we compare the cost of these housing prices with respect to the determinations of affordability in the California Health and Safety Code, housing in the industrial areas costs twice the Code’s determination of what is affordable, or $200,000 (Hollis, 2006). Although we recognize the need for more affordable housing units, we believe the current proposal to rezone industrial areas will lead to more unaffordable housing units to the detriment of those in need. GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-26 Industrial Land Value Trends We looked at industrial property price trends in Downtown over the past ten years to determine the impact land use conversions are having on property values. We attained data for several properties in our target area by using the real estate website www.zillow.com. Values were adjusted to 2007 dollars for fair comparison. As we expected, industrial land has increased significantly in the last five years. This roughly correlates with the beginning of downtown gentrification. From 1998 to 2002 the average price per square foot increased from $32 to $55, or a 72 percent increase. From 2002 to 2007 prices increased to $164 per square foot, or a 200 percent increase. Table 4-1 Impact of Land Use Conversions on Property Values Address Zip Building Size Property (SF) Type 2007 value 2002 value 1998 value 2007 $/SF 2002 $/SF 1998 $/SF CPI CPI rebase 2007 2007 $/SF 2002 $/SF Adjusted 1998 $/SF Adjusted 2007 2002 1998 202.4 177.1 161.6 1.0000 0.8750 0.7984 549 Ceres Avenue 90013 9729 Industrial $2,849,000 $750,000 $330,000 $293 $77 $34 $293 $88 $42 544 San Pedro Street 90013 20821 Industrial $3,485,000 $1,200,000 $500,000 $167 $58 $24 $167 $66 $30 560 Stanford Avenue 90013 14496 Industrial $1,312,000 $300,000 $200,000 $91 $21 $14 $91 $24 $17 560 Gladys Avenue 90013 14496 Industrial $1,401,000 $300,000 $200,000 $97 $21 $14 $97 $24 $17 1010 E. 7th Street 90021 13312 Industrial $1,859,000 $500,000 $390,000 $140 $38 $29 $140 $43 $37 1201 E. 7th Street 90021 13131 Industrial $2,616,000 $1,000,000 $500,000 $199 $76 $38 $199 $87 $48 $164 $55 $32 AVERAGE Source: www. zillow.com Value Trend of Industrial Land in Downtown Los Angeles (Adjusted to 2007 dollars) Figure 4-12 Price per Sq Ft $200 $164 $160 $120 $80 $55 $40 $32 $1998 2002 Year GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES 2007 Source: www. zillow.com Page 4-27 In order to measure changing uses of industrial land, we researched the number of properties that were currently for sale. By identifying concentrations of properties that appear to be changing hands quickly, while also juxtaposing those with loft and condo conversions that are already in progress, we identified particular neighborhoods that have historically been industrial but are gradually transitioning to commercial and residential uses. Property data was based on observations during visits to our target area and the following three websites: y http://www.loopnet.com y http://www.zillow.com y http://cartifact.com/dtnews/ Please refer to the map in Appendix C to see where for-sale industrial properties and current loft and condo conversions are taking place and Appendix D for a list of identified properties. Key Findings Our analysis helped us identify several things: y y y y y y Much of the rezoning is taking place in the Arts District around 4th Street and Traction Avenue. New uses are generally residential in the form of condominiums, lofts, and live-work units. In addition, many of the projects are building renovations rather than new construction. 20 of the 60 properties that are currently for-sale are in the Artist Loft District and its surrounding area Over half of the industrial properties currently on the market are warehouses and distribution warehouses The average price per square foot for many of the districts is in the $200-$300 range, with the exception of the Fashion, Electronics, and Staples/Convention Center areas. Current property owners may be seeking to capitalize on buyers who would like a low-risk entry into the downtown development area given that the average condo in the area is being sold at $505 per square foot. Most of the condo and loft conversions (7 out of 13) that are underway are in the Little Tokyo area. There are currently 12 industrial manufacturing facilities on the market. Some of which are being advertised as a “fantastic adaptive reuse opportunity,” also suggests that the property be purchased for “loft conversion or keep as an investment and raise rents.” GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-28 4.6 INDUSTRIES, ESTABLISHMENTS AND EMPLOYMENT The following section was completed to create a profile of industries in the Greater Downtown area with specific attention given to our area of focus. We give overviews of industry type, size, and employment and take a closer look at the manufacturing sector to build a better understanding of what is at stake if industrial land is lost. In addition, we examine wage data and industry changes from 1998 to 2003 to generate a better picture of economic activity in the area. Figure 4-13 Data Areas and Area of Focus Methodology Economic Census data was utilized to identify industries and calculate establishment and employment figures for the eight zip codes we identified for our study. The numbers of establishments were explicitly stated Source: Google Earth for each zip code and industry. However, employment figures were estimated by multiplying the number of establishments of a given size by the range of employees for those establishments. For example, if there were ten establishments with 10 to 19 employees, then ten was multiplied by 10 and 19 to establish a range of employment. Although we calculated low and high estimates for each industry, we decided to report conservative (low) employment numbers throughout the following section. It is important to note that conservative employment estimates can be much lower than actual employment figures because of the way establishment size ranges are categorized by the Economic Census and the likelihood of a sizable undocumented immigrant worker population. GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-29 Current State of Industries and Manufacturing General Findings: As expected the greatest concentration of establishments and employment fall in the downtown area of our study. This area had a total of 7,863 establishments, which account for a conservative estimate of 60,730 jobs. Zip codes 90014 and 90015 have the greatest concentration of establishments while 90015 and 90021 have the greatest concentration of employment for the Downtown area. Table 4-2 contains establishment and employment totals for all industries in the three different areas we examined. Table 4-2 Total Establishments and Employment – All Industries Area Downtown East LA North LA Establishments Zip Code 90013 90014 90015 90021 90023 90033 90012 90031 Establishments 1,204 2,256 2,779 1,624 1,054 531 1,287 451 Area Total 7,863 1,585 1,738 Employment Estimates (Conservative) Employment Area Total 9,182 10,919 60,730 22,486 18,143 18,232 26,354 8,122 16,197 22,192 5,995 Source: 2003 Economic Census All Industries: Two-digit North American Industry Code System (NAICS) codes were utilized to identify industries that operate in the area. We identified 20 different industries that range from food services to professional services. When looking at all the areas we examined (eight zip codes), Wholesale Trade, Manufacturing, and Retail Trade industries topped the list of industries with the largest number of establishments. This also holds true for the downtown area. The Wholesale Trade industry has over 3,000 establishments and the Manufacturing industry has over 1,800 establishments in the area. Together, they account for 64 percent of all establishments in the downtown area. GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-30 Table 4-3 Total Establishments by Type of Industry and Area 2 Digit NAICS 11 21 22 23 31-33 42 44 48 51 52 53 54 55 56 61 62 71 72 81 99 Type of Industry Agriculture, Forestry, Fishing and Hunting Mining Utilities Construction Manufacturing Wholesale Trade Retail Trade Transportation and Warehousing Information Finance and Insurance Real Estate and Rental and Leasing Professional, Scientific, and Technical Services Management of Companies and Enterprises Administrative and Support and Waste Management and Remediation Services Educational Services Health Care and Social Assistance Arts, Entertainment, and Recreation Accommodation and Food Services Other Services (except Public Administration) non-classifiable establishments Totals Total Establishments by Area East North Downtown LA LA 3 0 2 1 1 1 4 1 2 64 34 27 374 184 1,804 277 160 3,245 947 198 270 98 54 24 42 10 38 113 27 74 203 24 73 331 32 154 26 8 11 Total Establishments 5 3 7 125 2,362 3,682 1,415 176 90 214 300 517 45 125 51 60 236 25 147 32 271 16 217 5 126 17 139 22 250 58 503 59 647 353 129 225 707 29 7,863 1 1,585 5 1,738 35 11,186 Source: 2003 Economic Census GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-31 With respect to employment, the Manufacturing, Wholesale, and Health Care industries were the largest employers when looking at all three areas as a whole. The top three industries with the highest employment figures in the downtown area are Manufacturing, Wholesale Trade, and Retail Trade. The Manufacturing and Wholesale Trade industries, together, account for over 30,000 jobs and compose over fifty percent of the jobs in the area. It is also important to note that the Health Care/Social Assistance and Accommodation/Food Services industries are also large sources of employment throughout the areas we examined. (See Table 4-4 for employment details.) Table 4-4 Total Employment Estimates by Type of Industry and Area 2 Digit NAICS 11 21 22 23 31-33 42 44 48 51 52 53 54 55 56 61 62 71 72 81 99 Type of Industry Total Employment Estimates by Area (Conservative) Agriculture, Forestry, Fishing and Hunting Mining Utilities Construction Manufacturing Wholesale Trade Retail Trade Transportation and Warehousing Information Finance and Insurance Real Estate and Rental and Leasing Professional, Scientific, and Technical Services Management of Companies and Enterprises Administrative and Support and Waste Management and Remediation Services 261 10 1,530 778 16,190 15,298 4,866 2,518 589 1,822 1,021 1,864 891 0 20 10 331 8,432 3,405 1,272 2,644 14 202 90 323 1,031 North LA 2 20 2 228 2,739 1,294 1,195 1,749 1,477 2,252 481 864 312 1,439 676 718 2,833 Educational Services Health Care and Social Assistance Arts, Entertainment, and Recreation Accommodation and Food Services Other Services (except Public Administration) non-classifiable establishments Totals 930 3,699 1,173 3,271 2,528 52 60,730 139 5,318 52 1,645 745 5 26,354 341 2,048 1,857 3,386 1,218 9 22,192 1,410 11,065 3,082 8,302 4,491 66 109,276 Downtown East LA Total Employment Estimate (Conservative) 263 50 1,542 1,337 27,361 19,997 7,333 6,911 2,080 4,276 1,592 3,051 2,234 Source: 2003 Economic Census GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-32 Manufacturing: Given that our focus is on industrial land and the preservation of higher paying manufacturing jobs, we further examined the manufacturing sector of the downtown area. Three-digit NAICS codes were used to acquire a more detailed look at what types of manufacturing is taking place. Generally, across all three areas, downtown had the greater number of manufacturing establishments (1,804) and employment (16,190). It accounted for about 23 percent of all establishments and almost 27 percent of all employment in the area. Table 4-5 summarizes the general establishment and employment figures for the manufacturing sector. Table 4-5 Total Manufacturing Establishments and Employment Downtown East LA North LA 90013 90014 90015 90021 90023 90033 90012 90031 Industry Manufacturing Area Zip Code Est. 74 680 581 469 336 38 76 108 Establishments % of All Area Establishments in Total the Area 1,804 23% 374 24% 184 11% Employment Conservative Estimate 635 4,297 3,833 7,425 7,792 640 1,103 1,636 Area Total % of All Employment in the Area 16,190 27% 8,432 32% 2,739 12% Source: 2003 Economic Census GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-33 A closer look at the manufacturing sector shows that Apparel Manufacturing dominates across all observed areas. It is particularly strong in the downtown area with over 1300 establishments, which accounts for approximately 75 percent of all manufacturing establishments in the area. Behind Apparel Manufacturing, Miscellaneous Manufacturing comes in second with 188 establishments. Textile Mills, Printing, and Food Manufacturing follow with 188, 58, and 51 respective establishments. Table 4-6 summarizes the total number of manufacturing establishments by manufacturing type and area. Table 4-6 Establishments by Type of Manufacturing 3 Digit NAICS 311 312 313 314 315 316 321 322 323 324 325 326 327 331 332 333 334 335 336 337 339 Type of Manufacturing Food Manufacturing Beverage and Tobacco Product Manufacturing Textile Mills Textile Product Mills Apparel Manufacturing Leather and Allied Product Manufacturing Wood Product Manufacturing Paper Manufacturing Printing and Related Support Activities Petroleum and Coal Products Manufacturing Chemical Manufacturing Plastics and Rubber Products Manufacturing Nonmetallic Mineral Product Manufacturing Primary Metal Manufacturing Fabricated Metal Product Manufacturing Machinery Manufacturing Computer and Electronic Product Manufacturing Electrical Equipment, Appliance, and Component Manufacturing Transportation Equipment Manufacturing Furniture and Related Product Manufacturing Miscellaneous Manufacturing Totals Total Establishments by Area East North Downtown LA LA 40 44 20 3 1 2 58 24 3 22 6 3 1,353 110 113 4 2 1 7 3 2 2 8 0 51 29 6 0 3 0 5 16 3 5 9 1 1 13 1 4 4 0 25 49 11 17 9 4 2 1 1 Total Establishments 104 6 85 31 1,576 7 12 10 86 3 24 15 15 8 85 30 4 3 2 0 5 3 11 188 1,804 6 23 12 374 1 5 7 184 10 39 207 2,362 Source: 2003 Economic Census GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-34 As expected, Apparel Manufacturing accounts for the largest number and percentage of manufacturing jobs across all areas. This industry supports over 10,000 jobs or 65 percent of all manufacturing jobs in the Downtown area. Food and Miscellaneous Manufacturing follow by supporting a little over 1,000 jobs each in the area. Printing and Furniture Manufacturing also provide a good number of jobs at 693 and 599, respectively. Table 4-7 summarizes the total number of manufacturing jobs by manufacturing type and area. Table 4-7 Employment by Type of Manufacturing 3 Digit NAICS Total Employment Estimate by Area (Conservative) Type of Manufacturing 1,145 East LA 1,007 North LA 475 111 250 51 412 546 242 10,617 20 48 11 693 0 56 136 1 35 334 430 420 332 1,853 21 41 366 642 22 395 510 533 121 1,055 126 40 41 1,304 20 55 0 18 0 121 5 1 0 291 31 1,006 615 13,774 61 144 377 1,353 22 572 651 535 156 1,680 587 6 50 100 156 65 6 0 71 45 599 1,050 16,190 141 343 198 8,432 100 17 69 2,739 286 959 1,317 27,361 Downtown 311 312 313 314 315 316 321 322 323 324 325 326 327 331 332 333 334 335 336 337 339 Food Manufacturing Beverage and Tobacco Product Manufacturing Textile Mills Textile Product Mills Apparel Manufacturing Leather and Allied Product Manufacturing Wood Product Manufacturing Paper Manufacturing Printing and Related Support Activities Petroleum and Coal Products Manufacturing Chemical Manufacturing Plastics and Rubber Products Manufacturing Nonmetallic Mineral Product Manufacturing Primary Metal Manufacturing Fabricated Metal Product Manufacturing Machinery Manufacturing Computer and Electronic Product Manufacturing Electrical Equipment, Appliance, and Component Manufacturing Transportation Equipment Manufacturing Furniture and Related Product Manufacturing Miscellaneous Manufacturing Totals Total Employment Estimate (Conservative) 2,627 Source: 2003 Economic Census GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-35 Industry Size: Generally, we found that establishments throughout the area were small in size. 90 percent of all Downtown establishments had less than 20 employees with 61 percent having less than five employees. The manufacturing sector produced similar results with 86 percent of the establishments having less than 20 employees and 47 percent having less than five employees. These findings suggest that the manufacturing sector is not dominated by large-scale factories or “smokestack” industries and is primarily composed of small-scale, boutique-style companies indicative of the current economy. Figure 4-14 Downtown Industries - % of Establishment by Size 1% 2% 7% Size of Establishment (# of Employees) 1 to 4 5 to 19 20-49 29% 50 to 99 61% 100+ Manufacturing Sector - % of Establishments by Size 1% 3% 10% 47% 39% Source: 2003 Economic Census GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-36 Wages: We utilized Bureau of Labor Statistics data to examine average wages for manufacturing industries. It is important to note that this data is taken at the national level and is for production occupations within respective manufacturing industries. This data was primarily used because it was aggregated by NAICS codes and allowed us to uniformly compare wages across manufacturing sectors. While production occupation wages in manufacturing do not necessarily represent entry-level pay, we use these figures as a point of comparison to examine the potential benefit of manufacturing jobs over jobs likely to be created by industrial conversion. Table 4-8 contains average wages for some occupations that are likely to be created if industrial spaces are converted to retail and residential spaces. They include occupations such as food preparation, retail sales, cleaning and maintenance, janitors, security guards, and personal services. Average hourly wages across manufacturing sectors ranged from a low of $9.99 in Apparel Manufacturing to a high of $22.05 in Petroleum and Coal Product Manufacturing. The mean hourly wage for all manufacturing types is $14.48 and $10.69 for service jobs. Wage figures alone suggest that manufacturing jobs have more potential to provide economic benefits than service sector jobs. Not only do they provide higher wages, they may offer more opportunities to access occupational ladders. Table 4-8 Wage Estimates by Manufacturing Type NAICS Code 311 312 313 314 315 316 321 322 323 324 325 326 327 331 332 333 334 335 336 337 339 Manufacturing Type Food Manufacturing Beverage and Tobacco Product Manufacturing Textile Mills Textile Product Mills Apparel Manufacturing Leather and Allied Product Manufacturing Wood Product Manufacturing Paper Manufacturing Printing and Related Support Activities Petroleum and Coal Products Manufacturing Chemical Manufacturing Plastics and Rubber Products Manufacturing Nonmetallic Mineral Product Manufacturing Primary Metal Manufacturing Fabricated Metal Product Manufacturing Machinery Manufacturing Computer and Electronic Product Manufacturing Electrical Equipment, Appliance, and Component Manufacturing Transportation Equipment Manufacturing Furniture and Related Product Manufacturing Miscellaneous Manufacturing Production Occupation Wages Hourly Annual Mean Mean $12.08 $25,130 $16.45 $34,210 $11.94 $24,830 $11.37 $23,650 $9.99 $20,770 $10.91 $22,700 $12.49 $25,990 $16.25 $33,800 $15.33 $31,880 $22.05 $45,860 $17.30 $35,990 $13.77 $28,640 $14.23 $29,590 $15.86 $32,980 $14.94 $31,080 $15.83 $32,920 $14.61 $30,380 Employment by Study Area 1,145 111 546 242 10,617 20 48 11 693 0 56 136 1 35 334 430 6 East LA 1,007 250 420 332 1,853 21 41 366 642 22 395 510 533 121 1,055 126 50 North LA 475 51 40 41 1,304 20 55 0 18 0 121 5 1 0 291 31 100 Downtown $14.36 $29,860 65 6 0 $17.51 $12.82 $13.90 $36,420 $26,670 $28,910 45 599 1,050 141 343 198 100 17 69 Source: Bureau of Labor Statistics (National Wage Estimates - May 2005) GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-37 Table 4-9 Wage Estimates by Occupation Occupation Food Prep and Serving Related Cashiers Janitors/Cleaners Personal Care and Service Occupations Building and Grounds Cleaning and Maintenance Retail Sales Security Guards Hourly Mean $9.05 $9.63 $10.55 $11.87 $11.09 $11.97 $10.69 Annual Mean $18,820.00 $20,030.00 $21,950.00 $24,680.00 $23,060.00 $24,900.00 $22,240.00 Source: Bureau of Labor Statistics (Los Angeles-Long Beach, Santa Ana, CA Metropolitan Area - May 2005) Although these findings are optimistic, a closer look at manufacturing jobs and wages in the downtown area produces a more daunting picture. The strength of manufacturing in downtown is in its Apparel Manufacturing sector. Consequently, a vast majority of manufacturing workers (66 percent) in the area are earning very low wages. It would even be safe to say that a large segment of the workers in Apparel Manufacturing are earning less that the $9.99 hourly wage indicated in Table 4-9. Based on national hourly median wages, only 11 percent of the manufacturing employees in Downtown might make $14.00 or more. A majority of these potentially higher paid employees are in the Machinery Manufacturing, Fabricated Metal Product Manufacturing, Beverage and Tobacco Product Manufacturing, and Printing and Related Activities industries. Generally, the findings suggest that there are potentially higher paying manufacturing jobs in the area, but a majority of the manufacturing workers in the area are employed in the lowest paying sector. Figure 4-15 Manufacturing Employees' Estimated Pay Range in the Downtown Area Total Employees = 16,190 223 or 1% 1,564 or 10% Mean Hourly Wage Less than $10.00 $10.00 to $11.99 $12.00 to $13.99 $14.00 to $15.99 Greater than $15.99 2,978 or 18% 808 or 5% 10,617 or 66% Source: U.S Department of Labor - Bureau of Labor Statistics (National Wage Estimates - May 2005) GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-38 Evolution of Industries and Manufacturing All Industries: 1998 and 2003 Economic Census data was used to examine industry changes in establishments and employment in the downtown area of our study. Overall, there was a ten percent gain in the number of establishments during this time period; establishment numbers rose from 7,167 in 1988 to 7,863 in 2003. Notable percentage gains were seen in Educational Services (92 percent), Professional, Scientific, and Technical services (40 percent), Information (31 percent), Construction (28 percent), and Wholesale Trade (20 percent). Industries with a declining number of establishments were Manufacturing (-3 percent), Administrative and Support and Waste management and Remediation Services (-29 percent), and Other Services (-3 percent). (Note: Decline in establishments and employment in unclassified establishments and auxiliaries are most likely due to reclassification and/or a better classification system over the years.) Table 4-10 Change in Establishment and Employment in All Industries (1998 to 2003) Establishments 2 Digit NAICS 11 21 22 23 31-33 42 44 48 51 52 53 54 55 56 61 62 71 72 81 95 99 Industry Description Agriculture, Forestry, Fishing and Hunting Mining Utilities Construction Manufacturing Wholesale Trade Retail Trade Transportation & Warehousing Information Finance and Insurance Real Estate and Rental and Leasing Professional, Scientific, and Technical Services Management of Companies and Enterprises Administrative and Support and Waste Management and Remediation Services Educational Services Health Care and Social Assistance Arts, Entertainment, and Recreation Accommodation and Food Services Other services (except public administration) Auxiliaries (exc corporate, subsidiary) Unclassified Establishments Total 1998 2003 Employment # Change % Change 1998 2003 # Change % Change 1 3 2 200% 1 261 260 26000% 0 0 50 1,853 2,709 805 83 32 100 193 1 4 64 1,804 3,245 947 98 42 113 203 1 4 14 -49 536 142 15 10 13 10 n/a n/a 28% -3% 20% 18% 18% 31% 13% 5% 0 0 575 20,315 14,126 3,904 3,439 422 4,550 929 10 1,530 778 16,190 15,298 4,866 2,518 589 1,822 1,021 10 1,530 203 -4,125 1,172 962 -921 167 -2,728 92 n/a n/a 35% -20% 8% 25% -27% 40% -60% 10% 237 331 94 40% 1,389 1,864 475 34% 22 26 4 18% 701 891 190 27% 177 125 -52 -29% 1,917 1,439 -478 -25% 13 141 29 266 25 147 32 271 12 6 3 5 92% 4% 10% 2% 448 3,111 936 1,821 930 3,699 1,173 3,271 482 588 237 1,450 108% 19% 25% 80% 365 353 -12 -3% 3,680 2,528 -1,152 -31% 13 78 7,167 0 29 7,863 -13 -49 696 -100% -63% 10% 241 165 62,670 0 52 60,730 -241 -113 -1,940 -100% -68% -3% Source: 1998 and 2003 Economic Census In terms of employment, the Downtown area experienced a decline in overall employment from 1998 to 2003. The three percent decline in employment accounted for a little less than 2,000 lost jobs. The Manufacturing, Finance and Insurance, Other GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-39 Services, and Transportation and Warehousing industries were hit particularly hard by losing 4,125 (20 percent), 2,728 (60 percent), 1,152 (31 percent) and 921 (27 percent) respective jobs. These losses were partially offset by the largest employment gains in Utilities, Wholesale Trade, Retail Trade, and Accommodation and Food Services. Manufacturing: From 1998 to 2003, the manufacturing industry lost the largest number of total jobs (4,125) in the Downtown area. Table 4-11 contains a more detailed look at changes within the manufacturing industry by manufacturing type. Although Apparel Manufacturing accounts for the largest number of establishments in the sector and experienced the largest growth in the number of establishments from 1998 to 2003, it also experienced the greatest loss of jobs (-3,363) in the industry. There were also a sizable number of jobs lost in Printing (-600), Textile Product Mills (-232), and Miscellaneous Manufacturing (-244). Table 4-11 Change in Establishment and Employment in Manufacturing (1998 to 2003) 3 Digit NAICS 311 Establishments Type of Manufacturing 313 Food Manufacturing Beverage and Tobacco Product Manufacturing Textile Mills 314 Textile Product Mills 312 1998 2003 # Change Employment % Change 1998 2003 # Change % Change 41 40 -1 -2% 1,149 1,145 -4 0% 2 3 1 50% 101 111 10 10% 73 58 -15 -21% 597 546 -51 -9% 47 22 -25 -53% 474 242 -232 -49% -24% 315 Apparel Manufacturing 1,269 1,353 84 7% 13,980 10,617 -3,363 316 Leather and Allied Product Manufacturing 9 4 -5 -56% 73 20 -53 -73% 321 Wood Product Manufacturing 8 7 -1 -13% 57 48 -9 -16% 322 Paper Manufacturing 323 Printing and Related Support Activities 2 2 0 0% 30 11 -19 -63% 79 51 -28 -35% 1,293 693 -600 -46% -100% 324 Petroleum and Coal Products Manufacturing 1 0 -1 -100% 1 0 -1 325 Chemical Manufacturing 8 5 -3 -38% 53 56 3 6% 326 Plastics and Rubber Products Manufacturing 8 5 -3 -38% 59 136 77 131% 327 Nonmetallic Mineral Product Manufacturing 3 1 -2 -67% 7 1 -6 -86% 331 Primary Metal Manufacturing 6 4 -2 -33% 63 35 -28 -44% 332 Fabricated Metal Product Manufacturing 27 25 -2 -7% 382 334 -48 -13% 333 Machinery Manufacturing Computer and Electronic Product Manufacturing 14 17 3 21% 178 430 252 142% 4 2 -2 -50% 32 6 -26 -81% 4 3 -1 -25% 36 65 29 81% 7 3 -4 -57% 39 45 6 15% 11 11 0 0% 417 599 182 44% 334 335 336 337 339 Electrical Equipment, Appliance, and Component Manufacturing Transportation Equipment Manufacturing Furniture and Related Product Manufacturing Miscellaneous Manufacturing Total 230 188 -42 -18% 1,294 1,050 -244 -19% 1,853 1,804 -49 -3% 20,315 16,190 -4,125 -20% Source: 1998 and 2003 Economic Census Despite the overall decline of the manufacturing sector, four types of manufacturing experienced a notable growth in employment from 1998 to 2003. Machinery Manufacturing not only had the largest growth in the number of jobs (252), it also GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-40 experienced the largest percentage growth (142 percent). Furniture Manufacturing employment had a growth of 182 jobs (44 percent increase), Plastics and Rubber Manufacturing gained 77 jobs (131 percent increase), and Electrical Equipment Manufacturing gained a modest 29 jobs, but an 81 percent increase from 1998 to 2003. Summary of Findings • Overall, the downtown area has a large number of establishments and employment. The industrial area, which houses the Manufacturing, Wholesale trade, Transportation and Warehousing and similar industries, provides over 30,000 jobs, many of which could be held by some of Los Angeles’ most vulnerable residents. A small percentage loss of these jobs will undoubtedly have a significant impact on the number of jobs available to such residents. • Although the manufacturing industry supports the most jobs in the area, manufacturing jobs have significantly declined over the years. Over 4,000 jobs were lost between 1998 and 2003. A majority of these losses came from Apparel Manufacturing and Printing and Related Support Activities. The sizeable loss of these jobs may be attributed to some of the following factors: technological advancements leading to more efficiency, local/regional/global economic restructuring, outsourcing, and industrial displacement. • From 1998 to 2003, the large decline in manufacturing jobs was met with sizeable job growth in the Retail industry and Accommodation and Food Services industry. • Despite the overall loss of jobs in the manufacturing industry, the Plastics and Rubber Products Manufacturing, Machinery Manufacturing, and Electrical Equipment, Appliance, and Component Manufacturing sectors experienced a large percentage growth in employment during this time period. Such findings shed a little optimism on the potential of the manufacturing sector. • Although the manufacturing industry has a strong presence in the downtown area, it is primarily due to the strength of Los Angeles’ fashion industry. Apparel Manufacturing accounts for approximately 75 percent of all manufacturing establishments and 65 percent of all manufacturing jobs in the downtown area. The size of this industry and average wages for typical jobs in this industry leads us to the unfortunate conclusion that a majority of the downtown area’s manufacturing jobs are NOT quality jobs. • Despite the dominance of the apparel industry, there are other manufacturing jobs in Los Angeles that potentially pay higher wages than Apparel Manufacturing and service sector jobs. Based on national wage data for production workers in the GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-41 manufacturing sector, all manufacturing sectors except for Apparel Manufacturing pay wages greater than the living wage rate in Los Angeles. The City of Los Angeles currently has the living wage rate set at $10.64 (without health benefits). • Manufacturing jobs that potentially pay more than $14.00 per hour and have experienced some degree of employment growth from 1998 to 2003 are: 1) Beverage and Tobacco Product Manufacturing; 2) Chemical Manufacturing; 3) Machinery Manufacturing; 4) Electrical Equipment; Appliance; and Component Manufacturing; and 5) Transportation Equipment Manufacturing. • Manufacturing jobs, themselves, do not translate into better wages or working conditions. Although mean hourly wages are generally higher in manufacturing jobs than low-skilled service jobs, entry-level production positions in manufacturing industries most likely pay low wages or require a specific skill-set. To capitalize on the potential for higher wages and occupational ladders in the manufacturing industry, worker training and unionization could play a vital role. Manufacturing establishments in the downtown area are largely small in size. They do not hold true to the images of large-scale, “smokestack” style businesses that are often associated with industrial spaces. While these businesses do not provide the large number of jobs that we would like to see, they have the potential to be a great economic opportunity for the City, as they are often sources of innovation and growth. The different size and function of modern manufacturing requires appropriate infrastructure to support its needs. 4.7 ECONOMIC IMPACT ASSESSMENT OF DOWNTOWN MANUFACTURING: IMPLAN ANALYSIS About IMPLAN: IMPLAN Professional® is an economic impact assessment software system. IMPLAN Professional, combined with IMPLAN® Data Files, allows the user to develop local level input-output models that can estimate the economic impact of new firms moving into an area, professional sports teams, recreation and tourism, and many more activities. To model the potential loss of these manufacturing jobs in downtown, we used Economic Census data and IMPLAN to simulate the loss of 5 percent, 25 percent and 50 percent of jobs in each of the IMPLAN sectors listed in Table 4-12 in Appendix E. Table 4-13 below summarizes the total losses to the Los Angeles County economy a year after the loss of the manufacturing jobs downtown. GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-42 Table 4-13 Summary of Output Impacts Impact Direct Indirect Induced Total 5% Decrease -$108,124,752 -$43,983,005 -$28,976,624 -$181,084,382 25% Decrease -$535,110,795 -$217,551,939 -$143,368,216 -$896,030,948 50% Decrease -$1,073,444,932 -$436,306,801 -$287,598,053 -$1,797,349,806 Summary of Employment Impacts Impact Direct Indirect Induced Total 5% Decrease -817 -337.8 -276.1 -1,430.8 25% Decrease -4,058 -1,672.4 -1,365.8 -7,096.2 50% Decrease -8,138 -3,353.4 -2,739.9 -14,231.3 Summary of Labor Income Impacts Impact Direct Indirect Induced Total 5% Decrease -$22,622,004 -$15,521,008 -$10,250,976 -$48,393,987 25% Decrease -$111,995,834 -$76,785,473 -$50,718,937 -$239,500,244 50% Decrease -$224,739,984 -$154,008,394 -$101,742,671 -$480,491,053 The Importance of Manufacturing in the Local Economy: These values paint a picture of what the potential impact of losing manufacturing jobs in Downtown L.A. would do to the local economy. According to IMPLAN, manufacturing’s employment multiplier is 1.96, meaning that for every job directly created by the manufacturing industry, another 0.96 jobs are created indirectly. For example, although a five percent decline in manufacturing employment equates to the loss of 817 jobs, the indirect and induced impacts drastically raises the number of job losses to approximately 1,431. The output multiplier values indicate manufacturing (1.67) has the greatest multiplier effect on other local industries. For every dollar that is spent in manufacturing, 0.67 dollars is generated in other industries in the Los Angeles County. Other industries that have a strong output multiplier include Construction (1.62), Mining (1.50) and Accommodation & Food Services (1.46). Similarly, the Value Added multiplier indicates that Manufacturing has the greatest multiplier impact of all industries (2.03). For every one dollar generated through value added in manufacturing, 1.03 dollars is generated in the form of either employee compensation, proprietary income, other property type income, or indirect business taxes. Construction (1.76) and Mining (1.76) both also have strong multiplier effects. GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-43 These multipliers provide insight into which industries are strong players in the local/regional economy. Manufacturing stands out as an important industry for Los Angeles County and the loss of employment in the industry may result in adverse employment, value added, and output impacts for the region. Output Impacts: The following sections explore further in depth the specific sectors of manufacturing that will be hit hardest by a 25 percent decline in manufacturing employment in Downtown LA. Losing 4,058 jobs in manufacturing would result in a loss of $896,030,948 to Outputs in the Los Angeles County economy. The other aggregated industries that have suffered from the impact include Wholesale Trade, Finance and Insurance, Real Estate and Rental, Professional Scientific & Technical Services and Government and Non-NAICS industries. Please refer to Table 4-14 in Appendix E for a detailed summary of the top five Direct, Indirect, Induced and Total Losses to Output. Direct losses to output are associated with the jobs we removed from the model to represent the 25 percent job loss in downtown manufacturing employment. The indirect losses are a result of inter-industry transactions that have been impacted by the decline in employment and the induced losses reflect changes in local spending. The manufacturing sectors which have taken the largest financial hit are in the Apparel, Jewelry, Seafood, and Commercial Printing sectors. Naturally the model shows that the indirect losses to output are in industries that support the manufacturing sector, such as Wholesale Trade, Management of Companies and Enterprise, and Truck Transportation. The induced losses to output come from industries that service residents such as housing, restaurant dining, and health care. Refer to Table 4-15 in Appendix E for a list of Output Impacts for Aggregated Industries. Employment Impacts: Although the impact only involved removing manufacturing jobs, there were several other industries that were substantially affected. The Wholesale Trade, Retail Trade, Professional Scientific and Tech Services, Administrative and Waste Services, Health and Social Services and Accommodation and Food services lost over 200 jobs each. The total employment impact nearly doubled from the original job loss of 4,058 to 7,096. The total employment impact only represents a loss of 0.03 percent of all employment in Los Angeles County. Please refer to Table 4-16 in Appendix E for a detailed summary of the top five Direct, Indirect, Induced and Total Losses to Employment. The loss of manufacturing jobs permeated into the non-manufacturing sectors of Wholesale Trade and Management of Companies and Enterprises, and Employment services. The decline in employment in Food Services and Drinking Places may be GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-44 attributed to decreased patronage from local residents who now have less disposable income due to the region’s employment losses. Refer to Table 4-17 and 4-18 in Appendix E for a list of Employment Impacts for Aggregated Industries and changes in employment levels in the various industries after the loss of manufacturing jobs. Labor Income Impacts: The total loss of labor income also impacted the same industries that were hit by the largest employment impact. The Securities, Commodity Contracts, and Investments Industry also experienced one of the largest total losses to labor income although they were not one of the top industries impacted by employment losses. This suggests that wages in that industry may be higher than the other industries. Please refer to Table 4-19 in Appendix E for a detailed summary of the top five Direct, Indirect, Induced and Total Losses to Labor Income. Aside from Manufacturing, the aggregate labor income losses were greatest to the Wholesale Trade, Professional Scientific and Tech Services, Health and Social Services, Administrative and Waste Services, and Transportation and Warehousing industries. Refer to Table 4-20 in Appendix E for a list of Labor Income Impacts for Aggregated Industries. Conclusion: Although the loss of 7,096 manufacturing jobs in Downtown Los Angeles only accounts for a 0.03 percent decline in the County’s total employment, the impact of the loss has the potential to spread through the local economy and negatively impact other industries beyond manufacturing. The IMPLAN model indicates that the largest losses to output within manufacturing would come from the Apparel, Jewelry, Seafood, and Commercial Printing sectors. The loss of labor income to the region would consequently cause service industries to suffer given than their customer base may no longer be employed and as a result would decrease their consumption. Less than a one percent change in L.A. County employment does not sound like much, however, there is also a spatial dynamic to how these losses will be distributed throughout the region. It is likely that the communities surrounding downtown would suffer disproportionately. The final decisions about re-zoning industrial land in the city have not yet been finalized. The proponents of re-zoning industrial land bring forth plausible arguments about a need for more housing, the incompatible conditions of industrial spaces for modern industrial uses, and changes in the New Economy that no longer demand the same types of industrial spaces. Yet the CRA is concerned with the preservation of the land because once the zoning is changed, it is highly unlikely that it will ever be rezoned back to industrial. Along with the permanent loss of industrial land is a dilemma about workers GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-45 and where they will go. At the UCLA Urban Planning Department’s “Deindustrialization, Re-industrialization and Housing in America's Urban Regions Lessons for Los Angeles” workshop, Donald Spivack (Deputy Administrator of the CRA/LA) shared that the CRA does not believe that the education system, transportation system, and local government is prepared to address the needs of the working population that would be impacted by the loss of industrial jobs in the city. Another thing to consider is that the conversion of industrial land to residential uses does not effectively address the city’s current housing crisis. Most of the spaces are being converted into expensive lofts, condos and live/work places with little mention of an affordable housing component. Perhaps with the loss of industrial employment, occupations related to housing construction would increase and offset the initial employment losses to manufacturing – however the permanence of those jobs is questionable. GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-46 4.8 CASE STUDIES: STRATEGIES AND BEST PRACTICES Chicago and Industrial Retention Chicago has had a long history of housing heavy manufacturing industries. Prior to the great decline of manufacturing in the United States, Chicago along with places such as Pittsburgh, Cleveland, and Detroit were all considered Rust Belt cities. Although the country has experienced the outward movement of heavy industries from the United States to other places where production is done cheaper, Chicago has made proactive attempts to retain its industries. Around the 1970s, Chicago began facing pressures of gentrification and deindustrialization. Developers started targeting industrial land as ideal spaces for commercial and residential conversion to attract the downtown working population. As a result of the destabilized market, manufacturers began leaving Chicago’s industrial area. In an attempt to curb the departure of manufacturing firms from the city, Chicago implemented a variety of programs to address industrial displacement (Rast, 2001). Although industries are pressured outwards by globalization and by local forces that call for “better uses” of industrial land, we firmly believe that a healthy city must consciously make an effort to sustain a balanced economy. We cite Chicago’s industrial retention programs as a model of best practices. Three strategies utilized by Chicago to support their industrial sector include: y The establishment of Planned Manufacturing Districts (PMD) y Industrial Retention & Expansion (IRE) programs carried out by a local nonprofit agency y Industrial Tax Increment Financing Zones (TIF) Planned Manufacturing Districts (PMD) y What it is: A protective zoning measure that would designate the industrial district as a Planned Manufacturing District (PMD). PMD zoning establishes heavy restrictions against the use of industrial land for incompatible uses as a strategy to protect industrial firms (Rast, 2001). It is essentially a permanent policy. y Process for PMD creation: (Seattle Planning Commission, 2005) o City undergoes a study of the proposed area and meets the established requirements o Community meetings are held GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-47 o Planning Commission votes and makes a recommendation to City Council o City Council makes the final decision to adopt PMD y Why it works: It creates a stable and predictable environment for industry by controlling for speculative development. It also prohibits any incompatible uses such as residential, commercial, and live/work spaces from being developed in the PMD. y How it applies to LA: As we mentioned in our forces section, one of the key drivers for conversion of industrial space comes from the hype surrounding the transformation of Downtown Los Angeles into a 24-hour entertainment hub. The momentum surrounding the new downtown has led to increased loft and condo conversion in industrial spaces. A PMD zone in the Downtown Industrial District would prevent developers from purchasing industrial land at lower prices and turning the spaces into non-industrial uses. Industrial & Retention Expansion Programs (IRE) y What it is: A program that is carried out by a local non-profit or governmental organization aimed to support local manufacturing firms to stay and grow (Mayer, 1999). IRE programs use preventative measures to keep firms from leaving a locality by working with them to address their business needs and also by building and maintaining the relationship between firms, government and workers. y Why it works: The organization works as an intermediary between firms and workers. In Chicago, the Jane Addams Resource Center (JARC), who serves the metal stamping and related fabrication industry, works to ensure that the firms had a readily qualified labor pool, help to coordinate school-to-work programs, provide adult basic education and an introduction to manufacturing. To maintain open lines of communication with the firms, JARC also focuses on retention services to manufacturers that included peer learning support groups, development and management of smaller industrial spaces, marketing assistance, and planning and advocacy (Mayer, 1999). y How it applies to LA: If Los Angeles is to preserve its industrially zoned land, it must complement the industrial land zoning with industrial retention programs that create a supportive environment that encourages firms to stay and grow in an area. Simply keeping a piece of land zoned industrial does not guarantee that there is enough incentive to remain in the city, or that there will be a skilled labor force that meets a firm’s needs, or that a firm will provide a community with quality jobs. By involving a third party that actively participates in holding a firm accountable to the workforce and socializing a workforce to a particular industry, the outcome is a more holistic strategy that both protects industrial land and clearly develops a long-term strategy to retain the industry and justifies that it is indeed the best use for the land. Perhaps we can learn from Chicago’s model by incorporating an IRE program that would encourage industry retention and growth within the city. The industries that GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-48 the city chooses to support should be ones that have a sustainable future and meet the needs of the New Economy. Industrial Tax Increment Financing Zones (TIF) y What it is: Tax Increment Financing is a strategy used by public agencies to raise money by collecting all (or some) of the increased tax revenue that is a result of increased private development within a designated Industrial TIF Zone. According to one definition, TIF is defined as “a financing method which uses the additional taxes generated by a completed development to pay for development costs such as land acquisition and site improvements. The difference between the taxes before the development occurs and after its completion is referred to as the ‘increment.’ The City must create a Tax Increment Financing District according to state statute. It must meet criteria related to evidence of blight, extent of unemployment and other standards related to redevelopment districts” (Twin Cities LISC, 2007). y Why it works: This strategy is a way for local government agencies to collect tax dollars without raising local taxes. The money that is generated goes back to the district to upgrade infrastructure and for job creation programs. How it applies to LA: Chicago usually couples PMDs with TIFs to generate funds to upgrade infrastructure and provide services to firms in their PMDs . If Los Angeles decided to designate the Downtown Industrial District as a PMD then a TIF might also be a good idea as a way to generate financial resources to improve the District since many of the arguments against retaining industrial zoning are focused on how the roads, buildings, and infrastructure in the district are no longer compatible with modern industrial uses. The money raised could also be applied towards creating an IRE program. GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-49 San Francisco’s Eastern Neighborhoods In the late 1990s, San Francisco was forced to address the infringement on their industrial land by new residential developments. Given that a majority of San Francisco’s industrial land is concentrated in its eastern neighborhoods (South of Market, the Mission, Showplace Square/Potrero, the Central Waterfront and Visitacion Valley), the loss of industrial land to non-industrial uses would potentially have a significant spatial impact on the city. There was significant neighborhood opposition to the construction of live/work developments on industrial land and although the Planning Department began working on the issue in 1997, it failed to conduct outreach to communities for input until 2001 (SF Board of Supervisors, 2007). During this period, organized community members of the Mission District developed their own interim zoning controls which were adopted by the Board of Supervisors without any involvement from the Planning Department. Industrial Protection Zones (IPZ) The Industrial Protection Zone (IPZ) interim controls did three things: 1. Prohibit the construction of housing, including live/work projects, in IPZs 2. Required conditional use approval for live/work projects in industrial buffer zones 3. Permitted live/work projects in mixed use housing zones IPZs were established to place controls on industrial land while the city completes their rezoning process, which is expected to last until 2008. In the meantime, IPZs serve as a mechanism to restrict any non-Production, Repair, and Distribution (PRD) uses, including residential and live-work spaces, in industrial districts. Office spaces were also prohibited unless the developer could prove that the office is “determined to be an accessory to a permitted industrial use” (San Francisco Municipal Code, Added by Ord. 5-02, File No. 011638). The city wanted to stall any conversion of industrial land until they completed their assessment of which industrial lands were important to preserve. In 2005 the department underwent a study to assess the potential loss of this industrial land on San Francisco’s future economic base. The study specifically analyzed PRD uses. Their findings indicated that the City could expect growth in these sectors, therefore industrial land would be needed to house these jobs. PRD uses are defined by the city as Publishing, Audio/Visual, Arts, Fashion, Transport, Food/Event, Interior Design, Construction, Equipment, Motor Vehicles, and Other. IPZs are currently classified as a Special Use District (Municipal Code Section 249.22) but the City is GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-50 moving towards adopting permanent zoning controls in appropriate districts (SF Planning Department, 2005). The Mission Anti-Displacement Partnership Given that community organizations were not initially included in the discussion around the community planning process, in 2000 the Mission Anti-Displacement Coalition (MADC) organized to establish interim zoning controls mentioned above independent of the Planning Department. They also put forth what they called “The People’s Plan for Jobs, Housing, and Community.” The Plan, formed out of community surveys and focus groups, outlined the various types of development they would like to see in the Mission District – including affordable housing, open spaces, historic and cultural resources, and economic development. One of the main ideas that we would like to draw upon for this project is the concept of the Public Benefits Incentive Zoning. The coalition proposed the Public Benefits Overlay Zoning as a way to extract community benefits from land that is rezoned (MAP, 2005). Although it does not appear as though the city incorporated the Public Benefits Overlay Zoning into their municipal code, we feel that the concept is one that may be applicable to the City of Los Angeles. Public Benefits Overlay Zoning The objective of Public Benefits Overlay Zoning applies to “parcels that have received increased development potential through re-zonings. Further, Public Benefits shall only apply to sites 10,000 square feet or larger; and in all subdivisions and lot line adjustments of properties 10,000 square feet or larger” (MAP, 2005). Developers are expected to submit a public benefits package along with their project proposal to the Planning Department. The benefits could be either on-site or in-lieu fees calculated by the City Planning Department using the assessed increased land value. Some of the public benefits prioritized by the Mission District community include affordable housing, publicly accessible open space, community serving space, and PDR space. GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-51 Minneapolis Industrial Land & Employment Strategy (MILES) Current Barriers to Manufacturing in Minneapolis The City of Minneapolis created a directive to rezone residential and commercial land for light manufacturing purposes. Since the 1980s the City of Minneapolis has experienced a decline in its total manufacturing employment by 23,300 jobs (Tetzlaff, 2007). These jobs paid above average wages annually and provided 14 percent of the city’s total employment, approximately 40,400 jobs. Light manufacturing not only benefited its residents but also fueled the local economy and supported trade. The manufacturers that left claimed Minneapolis no longer provided land that was conducive to modern manufacturing needs. According to a 1988 migration study, manufacturers cited issues with space for expansion as their major reason for leaving. Therefore this directive proposes to bring back high wage jobs and boost employment while meeting infrastructure needs of the manufacturers. In response to this problem the City of Minneapolis Community Planning & Economic Development (CPED) presented the following strategy: • Minneapolis Industrial Land and Employment Strategy (MILES) Minneapolis Industrial Land and Employment Strategy (MILES) • What it is: This strategy will target blighted industrial land for revitalization by marketing it to new businesses. Second, the Department of Community Planning & Economic Development (CPED) and the Planning Department will engage in a blight analysis on blighted residential and commercial land with the goal of conversion to industrial purposes. This strategy maintains four objectives: • • • • Promote good jobs, Make neighborhood improvements, Support and expand the City’s tax base, Ensure the needs of light manufacturing businesses. The program will be initially financed by $11 million from the common projects fund over a four year period. The CPED anticipates future funding through a bond issued by the City of Minneapolis; this will require a vote by the City Council. This money will be used to purchase underutilized land. The land will be placed in a land lease program. GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-52 • Why it works: The MILES program targets blighted land with significant acreage for conversion to industrial uses. The result is the creation of a pool of available land for light manufacturers to rent. The City maintains control over the land. By allowing public control of land, the City undermines speculative market forces that result in gentrification. Therefore, this strategy cultivates a friendly business climate that will result in new jobs, good wages, and preserves neighborhoods. • How it applies to LA: This strategy can mitigate the effect of speculative and market forces by public ownership of the land. If the City of Los Angeles owned the land, they would be in a position to leverage benefits for the community and maintain affordable prices for housing that is in close proximity to good jobs. This allows lowincome workers to live close to their work. GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-53 City Of New York Industrial Retention & Expansion As is the case in Los Angeles and other major metropolitan cities in the New Economy, the profile of firms in the manufacturing industry in New York City has shifted from large, prominent firms to small, specialized firms. Small firms representing a myriad of New York City niche markets such as food production, furniture design, and printing have taken the place of the oil refineries and mass production plants. Nevertheless, the total of these smaller firms represent a significant number of jobs in the city and make a significant contribution to the local economy. One recent case study heralded that, despite the scaling down of firms, the City’s food production industry is a $5 billion dollar industry that represents over 33,000 jobs provided by 900 local food manufacturers (NYIRN, 2007). With high job density in industries such as apparel, jewelry, and publishing, many of these firms are faced with the question of whether to remain in central business districts or relocate to manufacturing clusters, as they are priced out of the local area. Recent policy has endeavored to promote proper zoning enforcement and planning that will enable the growth and retention of the remaining industry, and recluster industrial firms on industrially zoned land. Industrial Business Zones • What it is: Established in 2005, the Industrial Business Zones (IBZ) Program builds upon the city’s In-Place Industrial Park Program (IPIP; see below). Whereas the IPIP experienced success in the leveraging of resources and provision of technical assistance through local development corporations, the program did not provide any tax credits or exemptions for firms located within designated boundaries. The IBZ program does. With the changing dynamics of some of the IPIP area, IBZs fosters the creation of new geographic areas that adds to and updates IPIP designations (particularly those which may not have been as successful as others) to better reflect the city’s most productive industrial districts. IBZ boundaries are based on the following factors: 1) existing land uses; 2) the neighborhood’s industrial character; 3) no as-of-right zoning for new residential development; 4) traffic patterns; and 5) Empire Zone boundaries (New York State’s Empire Zone program was created to stimulate economic growth through a variety of State tax incentives designed to attract new and retain existing businesses). The program implements the following initiatives in the designated areas: 1. A guarantee to not rezone to allow residential uses 2. The establishment of a new relocation credit for industrial businesses GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-54 3. The facilitation of area planning to identify individual IBZ solutions 4. An IBZ marketing plan (to new, expanding, or relocating businesses) In 2006, the NYC Office of the Mayor created 16 Industrial Business Zones across the City that provided expanded business services for industrial and manufacturing firms. The program offers small manufacturing and industrial firms a relocation tax credit of $1,000 per employee for electing to relocate within the Industrial Business Zones. In addition to several business tax credits, these firms are also eligible for jobtraining grants and other customized governmental assistance. • Why it works: The tax incentives are presumed to be a major advantage (as seen in successful examples), particularly since the City implemented them as a direct response to issues not sufficiently resolved by the IPIP program. The IBZ program primarily provides tax credits to firms who instead relocate to a designated IBZ so as to: 1) assist and retain industrial companies for whom lease renewal or expansion at the current location is not feasible (surveys have shown that as residential development prices out many of the small firms who lease, these firms tend to relocate outside of the city boundaries but within the state); 2) attract and keep industrial companies within IBZs (and the Brooklyn Navy Yard); and 3) help industrial companies recoup relocation expenses. • How it applies to LA: The fact that the IBZ program represents an updated version of the IPIP program fosters the understanding that this endeavor requires continuous review so that policies are updated to reflect emerging trends in the manufacturing industry and to address issues and problems that current initiatives inefficiently address. In addition, with the City of L.A. currently at the crossroads of deciding which course of action to take, the IBZ program’s halt on further residential development in industrial zones and establishment of a tax credit takes proactive steps toward taking a specific stance in support of industrial retention and expansion. It establishes a formal policy to expand industry, which remains a significant provider of jobs to local residents and prevents market forces from effecting the City’s composition in the manner that occurred previously before the City made a commitment to create and enforce industrial retention zoning, policies, and regulations. In-Place Industrial Parks (IPIP) Program • What it is: A precursor to the Industrial Business Zones Initiative, the In-Place Industrial Park Program (IPIP) was established in 1980 to designate geographic boundaries in which manufacturing firms located within these boundaries could be targeted with a host of technical assistance services and resources from the city. This strategy endeavored to create state-of-the-art industrial parks that addressed the causes that were motivating many manufacturing firms to leave the city. The program involves a partnership between the City’s Economic Development Corporation (EDC), the firms and businesses that operate within the IPIP boundaries, and GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-55 nonprofit Local Development Corporations (LDCs). For the current eight IPIPs, LDCs assist the EDC in managing the parks, operating business assistance programs (for manufacturers within the designated IPIP boundary), and coordinating on-site management, infrastructure improvements, and security. In addition, all of the IPIP areas, with the exception of one, also benefit from the support of other underlying, geographically based programs, such as New York State Empire Zones, Federal Empowerment Zones, and local Economic Development Zones. • Why it works: The City of New York leverages the various community-based organizations that serve the manufacturing population, in which the IPIP program exemplifies this. The relationship that the city has with the Local Development Corporation and the management and service provision charge of the LDC serves as the primary advantage of the IPIP program and the primary benefit of a firm being located in an IPIP area. Firms benefit from an expedited handling of issues and problems because the local IPIP managing LDC is knowledgeable and networked in the City’s infrastructure for managing such problems. • How it applies to LA: This program suggests the importance of involving local community development corporations in the process of industrial retention and expansion. Furthermore, this program reveals such involvement as crucial to the success and efficacy of an IRE strategy. The City of L.A. could benefit from such a strategy in that it alleviates some of the burden of management, service coordination and delivery, monitoring, and processing, and relinquishes it to a local authority that is knowledgeable in the needs and issues that their local manufacturers face. In addition, it lays the foundation for coalition and relationship building with existing industrial advocacy organizations. It has also opened the door for the creation of others and enables the City to leverage resources by working in coalition with other organizations and by not having to address the problem on its own. The New York Industrial Retention Network (http://www.nyirn.org/) • What it is: NYIRN is a citywide economic development organization established to strengthen the manufacturing sector and save manufacturing jobs. NYIRN provides services to 400-500 companies each year, such as helping them find space, reduce energy consumption, and apply for city and state programs. More than 100 organizations participate in NYIRN’s network to help identify at-risk companies and provide them with services to relocate, improve technology, find employees, access financing to increase their competitiveness and strengthen their commitment to New York. • Why it works: Within its first three years of operations, NYIRN helped more than 500 companies by providing information and provided more than 700 referrals to city, state and local programs. These referrals helped the companies find the services they needed, and helped the network participants fulfill their missions, whether that meant finding jobs for dislocated workers, providing financing for new businesses or GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-56 attracting companies to an industrial park. The program also serves as a source of research and advocacy, producing such reports as the “More Than a Link in the Food Chain,” a study commissioned by the Mayor’s Office for Industrial and Manufacturing Businesses, that revealed food production as one of the City’s most robust manufacturing sectors, with 900 local food manufacturers supporting jobs for 33,800 New Yorkers and resulting in $5 billion in sales annually. The program also provides a resource database, which makes it easy for manufacturers to search and find resources in their geographic area for everything from business planning to financing to relocation incentives are available to manufacturers. • How it applies to LA: The NYIRN helps to leverage a community-based approach and advocacy for industrial retention and expansion. A technical assistance organization such as NYIRN assists with the implementation of industrial retention and expansion strategies, helping companies obtain the services they need to grow and remain in the area, and making available the research skills and assistance to assess the efficacy and success of implemented strategies and in the collaboration with the City of New York on new initiatives. With the City of Los Angeles leaning towards industrial retention and expansion, finding key leaders, business and labor representatives, and advocacy organizations in support of industrial retention proves essential. Such an organization can help garner support for industrial retention, involve a contribution of experts, laborers, and business owners, and assist in the on-the-ground coordination, management, resource sharing, troubleshooting, and technical assistance needed for a successful IRE program. The City of L.A. has the opportunity to bring these parties together to create a formal network such as NYIRN that can assist in the implementation, maintenance, and sustainability of the City’s IRE strategies. GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-57 4.9 RECOMMENDATIONS The objective of our paper is to share knowledge with a wider audience of constituents who have a stake in the City’s industrial land. We firmly believe that this matter is relevant to all residents, businesses and workers in Los Angeles because the fate of industrial land is closely linked to the livelihood of our communities, the local and regional economy, and the overall vitality of our city. To that end, we would like to reassert our position that this is an issue of the Right to the City. The bottom line is that preserving industrial land is a start to prioritizing and securing the right of residents and their children to have access to local quality jobs. Throughout the course of this project we have carefully reviewed City Planning and the CRA’s extensive Industrial Land Use Policy Project and have listened to both sides of the debate surrounding industrial preservation. To build on that existing knowledge, we began by researching the history of industrial land in Downtown L.A. What we found was that the residential-industrial controversy surrounding land use in downtown dates back to the early 1900s. The only difference with the present-day situation is that for the first time, market forces are favoring residential uses over industrial uses. While we firmly support development that expands the City’s housing stock, we quickly learned that the type of residential development encroaching on downtown industrial land is largely inaccessible to working class families. The public debate surrounding the issue has been framed as housing versus jobs because there is a false misconception that inexpensive industrial land will address the City’s affordable housing shortage. Unfortunately only 3 percent of the new units built on industrial land in the past five years have been affordable, and as we mentioned earlier, the average loft in Downtown L.A. is selling for $651,000 (LA City Planning Department, 2006). Developers who are purchasing industrial land for lower prices are enjoying high returns to their investments. Property owners wishing to cash in on a favorable market argue that since manufacturing and jobs have already left Downtown L.A., we should allow developers to enter the area to invest in infrastructure upgrades (Lopez, 2007). There is truth to the argument that the New Economy has evolved and that traditional manufacturing is no longer the backbone of American cities. The California Employment Development Department (2002) anticipates the largest employment growth in L.A. County to be in Education and Health Services and Leisure and Hospitality sectors (CEDD, 2007). This raised questions about whether or not industrial land, at its current state, will be able to meet the city’s future needs. We conducted our own analysis of the industries currently housed in the Downtown area. We posed questions to ourselves about whether or not these are quality jobs. What types of wages do they pay? Have they experienced growth in recent years? The primary focus of our quantitative analysis aimed to profile the manufacturing sectors because manufacturing jobs have typically been associated with higher wages than service and GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-58 retail occupations. Using Economic Census data, we estimate that there are over 30,000 industrial jobs in our downtown area of focus, with manufacturing as the largest employer. Although manufacturing employment has experienced a steady decline in Los Angeles, the Plastics and Rubber Products Manufacturing, Machinery Manufacturing, and Electrical Equipment, Appliance and Component Manufacturing sectors have grown in recent years. Most manufacturing firms in downtown are typically small and do not carry out smokestack activities. The largest manufacturing employer is the Apparel sector; however given their low average hourly wages, the sector does not fit into our description of a quality job provider. We further built on our analysis of Economic Census data by using IMPLAN, an economic impact assessment software system. We used the program to model the impact of removing five percent, 25 percent, and 50 percent of the manufacturing jobs in our geographic area to simulate how the job loss would permeate throughout the economy. If we were to lose even five percent (n=817) of the manufacturing employment in downtown over the next year, the result would be an overall loss of approximately 1,431 jobs throughout the local economy. Given that manufacturing has the highest employment, output, and value added multipliers, a negative impact on manufacturing employment is felt by other industries throughout the region. We have combined our research and knowledge, with that of the Department of City Planning, the CRA, and other cities facing the same challenges, to come up with strategies to first and foremost preserve industrial land. Throughout the research process, however, we have also become very cognizant of the fact that preservation alone will not ensure quality jobs for L.A.’s residents. For this reason, we have also incorporated strategies to retain and expand industrial jobs, improve industrial areas, and maximize public benefits. The following section outlines these strategies. A Strategy for Los Angeles I. Objective: PRESERVATION Strategy 1: Interim Controls – i.e. an Industrial Protection Zone (IPZ) Currently the City is permitting conversions on industrial land on a case-by-case basis. While this gives the City discretion over which projects to approve, a more focused and consistent policy such as IPZs can help stabilize land values and curb speculative development until more permanent zoning policies are implemented. San Francisco created IPZs as a temporary measure to protect their industrial land until their rezoning process concludes in 2008. L.A.’s current discretionary approach to granting permits and applications may inadvertently result is scattered development and conflicting land uses. We propose that the City adopt an interim ordinance prohibiting uses that may be in conflict with the City’s General Plan until they complete their final recommendations and the changes go through the community planning process. GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-59 Strategy 2: Permanent Controls – i.e. Planned Manufacturing Districts (PMD)/Industrial Business Zones (IBZ) So far, City Planning and the CRA’s preliminary recommendations suggest that approximately 83 percent of the City’s industrial land will remain zoned industrial. We believe that the city should take this a step further by adopting permanent, protective zoning controls to create industrial sanctuaries. We draw on the example of Chicago’s Planned Manufacturing Districts (PMD) and New York’s Industrial Business Zones (IBZ). These protective zoning measures place heavy restrictions on non-industrial uses entering designated districts. By stabilizing land values and providing a secure environment for industrial activities, we believe there is a greater likelihood that the City, businesses, and property owners will invest in improving the area’s infrastructure and upgrading properties. Furthermore, by truly protecting the industrial area, we are investing in our future economy by ensuring that future industries have the opportunity to grow and expand in the city. The growth and decline of certain industries represents the outcomes of uncontrollable market forces. We fully understand that we cannot control the forces that guide the local, regional, and global economy. However, we can control the migration of firms due to poor infrastructure and some of the displacement of manufacturing due to zoning changes. We can create a climate and establish policies that help retain existing jobs and attract quality jobs. II. Objective: RETENTION & EXPANSION Strategy 1: Industrial Retention & Expansion Programs (IRE) Manufacturing is one of our City’s unique assets. Although there has been an overall exodus of manufacturing from the U.S., Los Angeles still boasts of the strongest manufacturing base in the country (LAEDC, 2007). We mentioned earlier that there are several industries (Plastics, Machinery, Electrical Equipment, Appliance and Component Manufacturing) that have experienced growth from 1998 to 2003. To cultivate and nourish this growth, an IRE program could be implemented to support these sectors. In our case study of Chicago, we found that the JARC (who serves the metal stamping and related fabrication) was successful in serving both the business community and the local workforce. They worked closely with firms to address their needs and concerns to prevent businesses from leaving the area. They also developed networks between firms to facilitate peer learning support. Local workers gain from IRE programs because they include workforce development and education programs. Los Angeles could benefit from such a strategy because it increases the competitiveness of local firms and increases opportunities for local employment. A business retention strategy would be the next step after securing permanent controls over zoning of industrial land. The CRA and City Planning (2007) found that industrial land in downtown is often utilized for small business formation, GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-60 therefore, we should aim to create an environment that supports their growth and retention. Small businesses, which account for three-fourths of all businesses in L.A., can have a significant economic impact in our local economy if they are provided with the necessary support to grow and expand (Klowden, 2006). IRE programs provide a way for the public sector promote downtown’s incubator function and to actively engage with small businesses to foster entrepreneurship and innovation in order to secure L.A.’s role in the New Economy. III. Objective: IMPROVEMENT Strategy 1: Tax Increment Financing (TIF) It is no secret that the industrial districts in Downtown L.A. are in poor condition. Estela Lopez of the Central City East Association (2007) and Councilman Jose Huizar (2007) have both argued that the industrial land in their districts is no longer suitable for industrial uses. Decades of neglect from the city and property owners have resulted in poor infrastructure and aging properties, making conversion an appealing alternative to preservation. Given the high cost of upgrading the industrial district, we propose that once protective zoning measures are implemented to stabilize land uses and land values, a financing strategy follow to raise funds for modernization. Chicago typically couples PMDs with Industrial TIF Zones. A TIF would raise money for the industrial district and use the funds collected from additional tax revenue to reinvest in infrastructure upgrades, support an IRE program, or create workforce training programs. The steady stream of tax revenues could contribute to the stability of the district. IV. Objective: PUBLIC BENEFITS Strategy 1: Public Benefits Overlay Zoning We learned about the Public Benefits Overlay Zoning strategy through our case study of San Francisco. The Mission District Anti-Displacement Partnership incorporated the overlay zoning to their proposal as a way for the local community to extract benefits from new development in their neighborhood. The preliminary recommendations proposed by City Planning lead suggest that approximately 17 percent of the City’s industrial land will be rezoned for other uses. If this re-zoning occurs, developers will benefit from parcels that now have greater development potential. The city can seize this opportunity to mandate developers to provide a public benefits package along with their project proposals. The public benefits package will be equivalent to the assessed increased land value as calculated by City Planning. The benefits could either be on-site or inlieu fees, which could be used for affordable housing development. Earlier we stated that the City is facing an affordable housing crisis but the conversion of industrial land is not alleviating the problem. If industrial land is to be converted GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-61 to residential or commercial uses then affordable housing can be prioritized through a Public Benefits Overlay Zoning. GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-62 4.10 CONCLUSION Like the proponents who support converting industrial land to its “highest and best use,” we too share in this vision, BUT from a very different perspective. We share in this vision from the perspective that the “highest and best use” is one that stabilizes land, preserves a diverse economy, and most importantly, provides public benefits. Without question, our perspective favors the welfare of the larger public and greatly diverges from the traditional definition of this phrase, which often refers to land owners’ interest in utilizing land for its most profitable use determined by the market. The latter perspective largely supports parochial interests, encourages land speculation, and drives prospects for windfall profits. The inherent difference in perspectives is what ultimately leads to contentious battles over land and how it should be utilized. In the case of Downtown Los Angeles, it boils down to what is the “highest and best use” for its industrial spaces and who it should benefit. Will decision-makers be swayed by private interests and market forces, or will they prioritize the larger public good and long-term economic sustainability of the City? Although the question remains, decisions are imminent. As the situation currently stands, the decision-makers who will determine the fate of industrial land in Downtown Los Angeles seem to be leaning in favor of preserving a large portion of these spaces. This is optimistic, but still yet to be determined. Throughout our paper, we have attempted to build a case to support the preservation of industrial land in the downtown area as a mechanism to increase one’s access to local quality jobs. To ensure a positive outcome, we believe that the larger public – particularly community-based organizations and labor unions who advocate on the behalf of some of L.A.’s most vulnerable populations – must come forward to support the issues at hand. Without their involvement, the contentious yet somewhat obscure fight over industrial land will continue to go unnoticed by those who might unduly bear the negative consequences of industrial displacement. Constituents must begin to realize that they have a stake in this land and that it can contribute to the social and economic health of their community and the city at large. We end this paper by reiterating our contention that the conversion or displacement of industrial land in Los Angeles directly threatens the people’s Right to the City. The market forces and private interests that drive these activities have had there way in this City for far too long. We believe that the preservation and investment in industrial land can serve as just one step towards equitable policies and increasing levels of social justice. We urge the City to not waver and to be judicious in their decision. Finally, we urge the residents of Los Angeles to be aware of and fight against the stealth machine of industrial displacement that systematically decreases people’s Right to a City that provides access to quality jobs. GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-63 Appendix A Analysis Area Preliminary Recommendations Alameda: Area 1 Preserve industrial zoning consistent with current Central City North Community Plan; allow industrial and ancillary commercial uses only. y Identify and implement infrastructure plans and investment strategies to facilitate industrial uses. y No new residential uses; existing residential may remain. y Recommend development of TOD Plan (for area bound by Temple St., Santa Fe Ave. 3rd St. and Alameda St.) as part of Civic Center Master Plan. Preserve industrial zoning consistent with current Central City North Community Plan; allow industrial and ancillary commercial uses. y Maintain and strengthen Artist in Residence district; continue to allow live/work uses and adaptive reuse for live/work functions. y Allow new live/work residential construction with requirement for public benefits and/or in lieu fees for affordable artist housing, open space, and/or amenities within the district. y Maintain existing district scale. y Recommend development of TOD Plan (for area bound by Temple St., Santa Fe Ave. 3rd St. and Alameda St.) as part of Civic Center Master Plan. y Develop strategies and programs to mitigate potential loss of industrial jobs. Preserve industrial zoning consistent with current Central City North Community Plan; allow industrial and ancillary commercial uses only. y Identify and implement infrastructure plans and investment strategies to facilitate industrial uses. y No new residential uses; existing residential may remain. Alameda: Area 2 Alameda: Area 3 Alameda: Area 4 Preserve industrial zoning consistent with current Central City North Community Plan; allow industrial and ancillary commercial uses only. y Identify and implement infrastructure plans and investment strategies to facilitate industrial GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Additional Info About the Area: # of Manufacturing Firms: y 6 out of 44 (14%) # of Manufacturing Workers: y 418 out of 738 (57%) % Industrial Land Use: y 23% # of Manufacturing Firms: y 27 out of 228 (12%) # of Manufacturing Workers: y 543 out of 2201 (25%) % Industrial Land Use: y 34% # of Manufacturing Firms: y 56 out of 334 (17%) # of Manufacturing Workers: y 1557 out of 3904 (40%) % Industrial Land Use: y 76% # of Manufacturing Firms: y 41 out of 251 (16%) # of Manufacturing Workers: Page 4-64 y Alameda: Area 5 Boyle Heights: Area 1 Boyle Heights: Area 2 Boyle Heights: Area 3 Chinatown: Area 1 uses. No new residential uses; existing residential may remain. Preserve industrial zoning consistent with current Central City North Community Plan; allow industrial and ancillary commercial uses only. y Identify and implement infrastructure plans and investment strategies to facilitate industrial uses. y No new residential uses; existing residential may remain. Preserve industrial zoning; allow industrial uses only. y Identify and implement infrastructure plans and investment strategies to facilitate industrial uses. y As part of current community plan program: reinforce Regional Commercial Center designation in Boyle Heights Community Plan for Sears site; study opportunities for pedestrian linkages to LA River through design and infrastructure improvements; and develop design guidelines for industrial development. Preserve industrial zoning; allow industrial and commercial uses only. y As part of current community plan program: develop design guidelines for industrial development. Preserve industrial zoning provisionally; ancillary commercial uses may be considered on a case-by-case basis. y As part of current community plan program: recommend development of a Transit Oriented Design (TOD) Plan to establish appropriate zoning and land uses; and develop strategies and programs to mitigate potential loss of industrial jobs. y If residential development is studied and recommended to replace industrial uses, an affordable housing component and/or other public benefits should be incorporated. Preserve industrial zoning provisionally; recommend development of Specific Plan to GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES y 1145 out of 2059 (56%) % Industrial Land Use: y 65% # of Manufacturing Firms: y 20 out of 117 (17%) # of Manufacturing Workers: y 549 out of 1406 (39%) % Industrial Land Use: y 52% # of Manufacturing Firms: y 130 out of 605 (21%) # of Manufacturing Workers: y 3274 out of 8595 (38%) % Industrial Land Use: y 78% # of Manufacturing Firms: y 176 out of 839 (21%) # of Manufacturing Workers: y 641 out of 1342 (48%) % Industrial Land Use: y 86% # of Manufacturing Firms: y 13 out of 123 (11%) # of Manufacturing Workers: y 722 out of 1752 (41%) % Industrial Land Use: y 56% # of Manufacturing Firms: y 10 out of 60 (17%) Page 4-65 Chinatown: Area 2 Chinatown: Area 3 Chinatown: Area 4 Chinatown: Area 5 Downtown: Area 1 address River node, Chinatown Gold Line station and Los Angeles State Historic Park. y If residential development is studied and recommended to replace industrial uses, an affordable housing component and/or other public benefit should be incorporated. y Develop strategies and programs to mitigate potential loss of industrial jobs. Preserve industrial zoning provisionally; recommend development of Specific Plan to address River node, Chinatown Gold Line station, and Los Angeles State Historic Park. y If residential development is studied and recommended to replace industrial uses, an affordable housing component and/or other public benefit should be incorporated. y Develop strategies and programs to mitigate potential loss of industrial jobs. Preserve industrial zoning provisionally; recommend development of Specific Plan to address River node, Chinatown Gold Line station, and Los Angeles State Historic Park. y If residential development is studied and recommended to replace industrial uses, an affordable housing component and/or other public benefit should be incorporated. y Develop strategies and programs to mitigate potential loss of industrial jobs. Recommend change in land use designation and zoning to reflect new State Historic Park. y Prior to change in land use designation/zoning, explore possible transfer of development capacity for priority public benefits to Analysis Areas 1, 2, and 3. Recommend initiation of Central City North Community Plan amendment to consider new residential zoning. y If residential development is studied and recommended to replace industrial uses, an affordable housing component and/or other public benefit should be incorporated. Recommend initiation of Community Plan amendment to consider change from industrial to commercial land use designation and zoning to allow commercial and mixed-use development GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES # of Manufacturing Workers: y 161 out of 537 (30%) % Industrial Land Use: y 89% # of Manufacturing Firms: y 1 out of 5 (20%) # of Manufacturing Workers: y 19 out of 61 (31%) % Industrial Land Use: y 100% # of Manufacturing Firms: y NA # of Manufacturing Workers: y 18 out of 34 (53%) % Industrial Land Use: y 52% # of Manufacturing Firms: y ? out of 2 # of Manufacturing Workers: y 8 out of 28 (29%) % Industrial Land Use: y 0 # of Manufacturing Firms: y NA # of Manufacturing Workers: y NA % Industrial Land Use: y 0 # of Manufacturing Firms: y ? out of 236 # of Manufacturing Page 4-66 Downtown: Area 2 Downtown: Area 3 Downtown: Area 4 Downtown: Area 5 Downtown: Area 6 consistent with existing and surrounding uses. y Develop strategies and programs to mitigate potential loss of industrial jobs. y If residential development is studied and recommended to replace industrial uses, an affordable housing component and/or other public benefits should be incorporated. Preserve industrial zoning consistent with current community plan; allow industrial and ancillary commercial uses. y Existing residential uses may remain. Recommend initiation of Community Plan amendment to consider change from industrial to commercial land use designation and zoning to allow commercial and mixed-use development consistent with existing and surrounding uses. y Develop strategies and programs to mitigate potential loss of industrial jobs. y If residential development is studied and recommended to replace industrial uses, an affordable housing component and/or other public benefits should be incorporated. Preserve industrial zoning consistent with current community plan; allow industrial and ancillary commercial uses. y Existing residential uses may remain. Preserve industrial zoning consistent with current community plan; allow industrial and ancillary commercial uses. y Existing residential uses may remain. Preserve industrial zoning consistent with current community plan; allow industrial and ancillary commercial uses. y Existing residential uses may remain. GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Workers: y 190 out of 849 (22%) % Industrial Land Use: y 0 # of Manufacturing Firms: y 41 out of 288 (14%) # of Manufacturing Workers: y 305 out of 1019 (30%) % Industrial Land Use: y 15% # of Manufacturing Firms: y 229 out of 1690 (14%) # of Manufacturing Workers: y 1199 out of 4273 (28%) % Industrial Land Use: y 4% # of Manufacturing Firms: y 242 out of 1436 (17%) # of Manufacturing Workers: y 305 out of 1019 (30%) % Industrial Land Use: y 9% # of Manufacturing Firms: y 7 out of 31 (23%) # of Manufacturing Workers: y 27 out of 88 (31%) % Industrial Land Use: y 95% # of Manufacturing Firms: y 42 out of 222 (19%) # of Manufacturing Workers: Page 4-67 y Downtown: Area 7 Downtown: Area 8 Downtown: Area 9 Downtown: Area 10 Downtown: Area 11 Preserve industrial zoning consistent with current community plan; allow industrial and ancillary commercial uses. y Existing residential uses may remain. Preserve industrial zoning consistent with current community plan; allow industrial and ancillary commercial uses. y Existing residential uses may remain. Preserve industrial zoning consistent with current community plan; allow industrial and ancillary commercial uses. y Existing residential uses may remain. Preserve industrial zoning consistent with current community plan; allow industrial and ancillary commercial uses. y Reinforce Community Plan objectives and policies to allow permanent supportive housing and assure no net loss of affordable housing. Preserve industrial zoning consistent with current community plan; allow industrial and ancillary commercial uses. y Reinforce Community Plan objectives and policies to allow permanent supportive housing and assure no net loss of affordable housing. 319 out of 727 (44%) % Industrial Land Use: y 25% # of Manufacturing Firms: y 130 out of 938 (14%) # of Manufacturing Workers: y 2855 out of 7811 (37%) % Industrial Land Use: y 81% # of Manufacturing Firms: y 34 out of 278 (12%) # of Manufacturing Workers: y 310 out of 1069 (29%) % Industrial Land Use: y 35% # of Manufacturing Firms: y 14 out of 68 (21%) # of Manufacturing Workers: y 65 out of 243 (27%) % Industrial Land Use: y 30% # of Manufacturing Firms: y ? out of 1296 # of Manufacturing Workers: y ? out of 3032 % Industrial Land Use: y 50% # of Manufacturing Firms: y ? out of 124 # of Manufacturing Workers: y ? out of 795 % Industrial Land Use: y 32% GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-68 Southeast LA: Area 1 Preserve industrial zoning consistent with current community plan; support concentration of auto related uses. # of Manufacturing Firms: y 9 out of 64 (14%) # of Manufacturing Workers: y 188 out of 1843 (10%) Southeast LA: Area 2 Southeast LA: Area 3a Southeast LA: Area 3b Preserve industrial zoning provisionally, which allows industrial and commercial uses. y Recommend development of specific plan to determine feasibility of residential and mixed use. y If residential development is studied and recommended to replace industrial uses, an affordable housing component and/or other public benefits should be incorporated. y Develop strategies and programs to mitigate potential loss of industrial jobs. y Recommend development of design guidelines to enhance pedestrian activity along Washington Blvd. Preserve industrial zoning provisionally, which allows industrial and commercial uses. y Recommend development of specific plan to determine feasibility of residential and mixed use. y If residential development is studied and recommended to replace industrial uses, an affordable housing component and/or other public benefits should be incorporated. y Develop strategies and programs to mitigate potential loss of industrial jobs. y Recommend development of design guidelines to enhance pedestrian activity along Washington Blvd. Preserve industrial zoning consistent with current community plan; allow industrial and commercial uses only. % Industrial Land Use: y 63% # of Manufacturing Firms: y 52 out of 341 (15%) # of Manufacturing Workers: y 367 out of 2128 (17%) % Industrial Land Use: y 27% # of Manufacturing Firms: y 7 out of 34 (21%) # of Manufacturing Workers: y 67 out of 226 (30%) % Industrial Land Use: y 82% # of Manufacturing Firms: y 11 out of 62 (18%) # of Manufacturing Workers: y 116 out of 396 (29%) Southeast LA: Area 4 Preserve industrial zoning consistent with current community plan; allow industrial and commercial uses only. y Existing residential uses may remain; no new GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES % Industrial Land Use: y 78% # of Manufacturing Firms: y 14 out of 82 (17%) # of Manufacturing Page 4-69 residential uses. As part of Community Plan Program: recommend development of design guidelines to enhance pedestrian activity along San Pedro St. and Washington Blvd.; and recommend development of specific plan to address special conditions along Central Ave. (in conjunction with similar recommendation in Analysis Areas 10 and 12). Preserve industrial zoning consistent with current community plan; allow industrial uses and ancillary commercial uses only. y As part of Community Plan Program: recommend development of design guidelines to improve function and appearance of industrial uses; and identify and implement infrastructure plans and investment strategies to facilitate industrial uses. y Southeast LA: Area 5 Southeast LA: Area 6 Southeast LA: Area 7 Southeast LA: Area 8 Southeast LA: Area 9 As part of Community Plan Program: consider change from industrial to residential land use designation and zoning; and develop strategies and programs to mitigate potential loss of industrial jobs. Preserve industrial zoning consistent with current community plan; allow industrial and ancillary commercial uses only. y As part of Community Plan Program: consider changes to land use designation and zoning, and/or development of design guidelines that provide a better transition between residential and industrial uses. Preserve industrial zoning consistent with current community plan; allow industrial uses and ancillary commercial uses only. y As part of Community Plan Program: recommend development of design guidelines to improve function and appearance of industrial uses; and identify and implement infrastructure plans and investment strategies to facilitate industrial uses. Preserve industrial zoning consistent with current community plan; allow industrial uses and ancillary commercial uses only. GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Workers: y 161 out of 451 (36%) % Industrial Land Use: y 44% # of Manufacturing Firms: y 40 out of 189 (21%) # of Manufacturing Workers: y 753 out of 2279 (33%) % Industrial Land Use: y 91% # of Manufacturing Firms: y 5 out of 17 (29%) # of Manufacturing Workers: y 34 out of 99 (34%) % Industrial Land Use: y 69% # of Manufacturing Firms: y 12 out of 45 (27%) # of Manufacturing Workers: y 345 out of 877 (39%) % Industrial Land Use: y 74% # of Manufacturing Firms: y 9 out of 49 (18%) # of Manufacturing Workers: y 205 out of 763 (27%) % Industrial Land Use: y 71% # of Manufacturing Firms: y 2 out of 14 (14%) Page 4-70 y As part of Community Plan Program: recommend development of design guidelines to improve function and appearance of industrial uses; and identify and implement infrastructure plans and investment strategies to facilitate industrial uses. GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES # of Manufacturing Workers: y 43 out of 108 (40%) % Industrial Land Use: y 70% Page 4-71 Appendix B Ethnic Population in Los Angeles White 6% Other 2% African American 9% Asian 14% Latino 69% Source: (US Census Bureau 2000, Summary File 3) Highest Educational Attainment for Persons 25+ re e to ra te de g eg re e D oc ld si o na r's de gr ee Pr of es re e as te M el o r's de g eg re e Ba ch oc ia te d ol le ge A ss eC So m ho ol g ra d ua te oo l Sc h h sc ig h So m eH to N ur se ry H ig N o sc ho ol in g co 6t h G ra de m pl et ed 90000 80000 70000 60000 50000 40000 30000 20000 10000 0 Source: (US Census Bureau 2000, Summary File 3) GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-72 Number of Male Workers Employed by Industry Type of Industry Male Workers 27415 10297 Manufacturing Arts; Entertainment; Recreation; Accommodation and Food Services Professional; Scientific; Management; Administrative; and Waste 10090 Management Services Construction 9816 Retail Trade 9748 Accommodation and Food Services 8239 Educational; Health and Social Services 8211 Wholesale Trade 6929 Other services (except public administration) 6883 Administrative and Support and Waste Management Services 6503 Transportation and Warehousing; and Utilities 5528 Transportation and Warehousing 5249 Educational Services 4282 Health Care and Social Assistance 3929 Professional; Scientific; and Technical Services 3582 Finance; Insurance; Real Estate and Rental and Leasing 3314 Information 2753 Arts; Entertainment; and Recreation 2058 Finance and Insurance 1724 Real Estate and Rental and Leasing 1590 Public Administration 1449 Agriculture; Forestry; Fishing and Hunting; and Mining 327 Agriculture; Forestry; Fishing and Hunting 320 Utilities 279 Mining 7 Management of Companies and Enterprises 5 Source: (US Census Bureau 2000, Summary File 3) GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-73 Number of Female Workers Employed by Industry Type of Industry Female Workers 16196 15461 9640 7371 6556 6442 5791 Educational; Health and Social Services Manufacturing Health care and Social Assistance Other services Educational Services Retail Trade Arts; Entertainment; Recreation; Accommodation and Food Services Professional; Scientific; Management; Administrative; and Waste 5664 Management Services Accommodation and food services 4850 Finance; Insurance; Real Estate and Rental and Leasing 3460 Administrative and Support and Waste Management Services 3344 Wholesale Trade 2654 Finance and Insurance 2432 Professional; Scientific; and Technical Services 2301 Public Administration 2165 Information 1450 Transportation and Warehousing; and Utilities 1370 Transportation and Warehousing 1276 Real Estate and Rental and Leasing 1028 Arts; Entertainment; and Recreation 941 Construction 407 Agriculture; Forestry; Fishing and Hunting; and Mining 151 Agriculture; Forestry; Fishing and Hunting 151 Utilities 94 Management of Companies and Enterprises 19 Mining 0 Source: (US Census Bureau 2000, Summary File 3) GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-74 to $2 ; $2 499 ;5 o 00 r lo ss $5 to $ ;0 00 4;9 $7 to 99 $7 ;5 ;4 $1 00 0; to 99 00 $9 $1 0 to ;99 2; 9 50 $12 $1 0 to ;49 9 5; 00 $14 0 ; 9 $1 7; to $ 99 50 17 ;4 $2 0 t 0; o $ 99 00 19 $2 0 to ;99 2; 9 50 $22 $2 0 to ;49 9 5; 00 $24 $3 0 to ;99 9 0; 00 $29 ;9 $3 0 t 5; o $ 99 00 34 $4 0 to ;99 0; 9 $ 00 39 $4 0 to ;99 9 5; 00 $44 $5 0 to ;99 9 0; 00 $49 ;9 $5 0 t 5; o $ 99 00 54 $6 0 to ;99 5; 9 00 $64 $7 0 to ;99 9 5; 00 $74 0 ; 9 $1 to $ 99 00 9 ;0 9;9 00 9 or 9 m or e $1 Transit Uses for Workers Age 16+ Walked 6% GENTRIFICATION AND INDUSTRIAL Bicycle 1% Public transit 23% Auto 55% Carpool 15% Source: (US Census Bureau 2000, Summary File 3) Average Income for Female Workers Age 16+ 14000 12556 12000 10000 8000 6000 4000 2000 0 Source: (US Census Bureau 2000, Summary File 3) JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-75 to $2 ;4 $2 99 ;5 o 00 r lo ss $5 to $ ;0 00 4;9 $7 to 99 $7 ;5 ;4 $1 00 99 t 0; 00 o $9 0 ; 9 $1 2; to $ 99 50 12 $1 0 to ;49 9 5; 00 $14 $1 0 to ;99 9 7; 50 $17 $2 0 to ;49 9 0; 00 $19 0 ; 9 $2 2; to $ 99 50 22 $ 2 0 t o ;49 9 5; 00 $24 $3 0 to ;99 9 0; 00 $29 0 ; 9 $3 5; to $ 99 00 34 $4 0 to ;99 9 0; 00 $39 $ 4 0 t o ;99 9 5; 00 $44 $ 5 0 t o ;99 9 0; 00 $49 0 ; 9 $5 t 5; o $ 99 00 54 $6 0 to ;99 9 5; 00 $64 $7 0 to ;99 9 5; 00 $74 0 ; 9 $1 to $ 99 00 99 ;0 00 ;999 or m or e $1 Average Income for Male Workers Age 16+ 20000 19741 18000 16000 14000 12000 10000 8000 6000 4000 2000 0 Source: (US Census Bureau 2000, Summary File 3) Workers in Poverty by Gender 72000 69000 66000 63000 60000 Male Workers 16-64 GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Female Workers 16-64 Source: (US Census Bureau 2000, Summary File 3) Page 4-76 Ratio of Poverty to Income 250000 203923 200000 150000 100000 50000 0 Under .50 .50 to .74 .75 to .99 1.00 to 1.24 1.25 to 1.49 1.50 to 1.74 1.75 to 1.84 1.85 to 1.99 2.00 and over Source: (US Census Bureau 2000, Summary File 3) GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-77 Appendix C GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-78 Appendix D Name Address Zip Price Building Size (SF) Price/SF Property Type 618-620 E. 1st Street 618-620 E. 1st Street 90012 $1,495,000 3,780 $395.50 Industrial Flex Space 1460 Naud Street 1460 Naud Street 90012 $5,600,000 56,500 $99.12 Industrial Flex Space Spring & College 924 N. Spring Street 90012 $20,000,000 729 E. Temple Street 729 E. Temple Street 90012 $7,850,000 GENTRIFICATION AND INDUSTRIAL Industrial Land 67,807 JOB RETENTION IN DOWNTOWN LOS ANGELES $115.77 Industrial Warehouse Property Description Prime Artist District Location Available For 1st time - Artist Lofts - Retail - Office - General Use Walk to All. Now Leased approximately 70% bringing in income of $3400.00 a month NNN (for 50% of the building) and an additional 3000.00 per month modified gross. 30% not Leased and being remodeled! Great Opportunity. HIGHEST QUALITY BUILDING FOR SALE IN THIS SIZE RANGE - ROOF TOP PARKING FOR OVER 50 CARS - BONUS LOT OF 10,000 SQ.FT. INCLUDED 4.9 Acres (213,444 square feet) Prime Chinatown Mixed Use Development Land - Proposed Chinatown Station Transit Village comprising a transit oriented, mixed use site located in the Chinatown Redevelopment Area, across the street from the famous new Gold Line Chinatown Transit station. Situated in one of the hottest Downtown revitalization areas. Vibrant energy and many substantial benefits from new civic improvements, residential construction and commercial developments including LA Live, Staples Center, Disney Concert Hall, the Cathedral of Our Lady of the Angels and the 35 Acres Cornfields Project promise to revitalize the community and insure a new era of growth. Thousands of new loft & housing units have recently been completed and are attracting a diverse and dynamic population. This site can provide for a dense mixed use project and presents a strong opportunity for federal, state & local development incentives and Adaptive Reuse subsidies. 67,807 sf Available for Sale or Lease. PLEASE DO NOT DISTURB TENANT! APPOINTMENT ONLY. Potential Owner/User or Development Property. Also Includes Parking Lot on Center Street Page 4-79 Source loopnet.com loopnet.com loopnet.com loopnet.com Barn Lofts E2 Lofts Artisan on Second Barker Block 215 S. Santa Fe Avenue 90012 940 E. 2nd Street 90012 941 E. 2nd Street 148 S. Hewitt Street 4th Street and Molino Street $850,000 2088 $407.09 Condo Condo Unit. Built in 1907, renovated in 2001. 21 matching units at this address. Last sold 10/24/2006. Adaptive reuse, brick building, former Spreckels Brothers sugar beet warehouse, 40 market rate condos zillow.com cartifact.com/dtnews 90012 Convert two story brick warehouse cartifact.com/dtnews 90012 118 Condo complex. In high 400,000s. Art District Development cartifact.com/dtnews 90012 297 units, mixed use, galleries and restaurants cartifact.com/dtnews 6th and Los Angeles Street 533 S. Los Angeles Street 90013 $7,750,000 81,373 300 E. 5th Street 300 E. 5th Street 90013 $3,299,000 25,216 811 Traction Avenue 811 Traction Avenue 90013 $4,700,000 22,046 423 S. Stanford Avenue 423 S. Stanford Avenue 90013 $2,300,000 9,250 GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Industrial Distribution Warehouse $130.83 Industrial Flex Space Multifamily Garden/LowRise $248.65 7 Story Multi-Use, Currently Occupied with Garment, Textile & Wholesale Tenants, Central Downtown Location, Possible 41 Unit Mixed Use Condo Conversion or Creative Work Space Development Potential, Penthouse & Basement. Fully Sprinklered Building. Rear Alley Access. 18 ft Ceilings. 1st Floor Retail Stores. 2 Upper Floors Vacant & For Lease - Current Rent Aprrox. $29,000/ Month - Rent Upside OWNER IS WILLING TO CARRY A 1ST TD LOAN FOR A QUICK, CLEAN DEAL!! PRICED BELOW MARKET!-----------ONLY $130.83 PER SQUARE FOOT. RARE BUILDING IN TOY DISTRICT. Possible uses: Whse, Retail, Office, Medical, Residential. BUILDING HAS SPRINKLER SYSTEM. EARTHQUAKE RETROFIT WORK COMPLETE. SECURE GATED PARKING LOT FOR APPROXIMATELY 12 VEHICLES. ARTIST LOFT BUILDING, HEART OF ARTIST LOFT DISTRICT, IDEAL FOR LIVE-WORK CONDO CONVERSION, VALUE ADDED INVESTMENT - SHORT TERM LEASES, RENTS ARE BELOW MARKET, RENTAL INCOME WHILE CONVERTING TO CONDOS, CLOSE TO SCI-ARC, SAVOY, ARTISAN ON 2ND ST, & ROSE STREET LOFTS, 2 RETAIL UNITS ON GROUND FLOOR =3,766 SF, 8 RESIDENTIAL UNITS Industrial/ IndustrialBusiness Park loopnet.com loopnet.com loopnet.com loopnet.com Page 4-80 Major corner lot of San Pedro and Boyd. Near Little Tokyo, Toytown, Civic Center, Old Bank District and Artist District. Rare large property for sale in Downtown with parking. Next to large developments such as Little Tokyo Lofts and several new residential and retail construction projects within blocks. In addition to the included 52 parking spaces, over 200 parking spaces are available for rent across Boyd St and also across Omar Ave. Downtown L.A. Artist District, Little Tokyo 300 S. San Pedro Street 90013 $10, 900,000 49,050 $222.22 Office Building Little Tokyo 320 S. Crocker Street 90013 $1,600,000 5,500 $290.91 Office R&D Seaton Street Lofts 1101 E. 5th Street 90013 $6,950,000 91,512 $75.95 Industrial Warehouse Cold Storage Warehouse 516 Alameda Street 90013 $4,500,000 15,250 $295.08 Industrial Warehouse 90013 $2,849,000 9729 $292.84 Industrial zillow.com 90013 $3,485,000 20821 $167.38 Industrial zillow.com 90013 $1,312,000 14496 $90.51 Industrial zillow.com 90013 $1,401,000 14496 $96.65 Industrial zillow.com Mura Fourth & Alameda Brewer's Gallery 549 Ceres Avenue 544 San Pedro Street 560 Stanford Avenue 560 Gladys Avenue 629 E. Traction Avenue 353 S. Alameda Street 800 E. Traction Surrounded new loft projects in Little Tokyo. Potential for loft development. 5,500 Sf building on the land. Multi-Tenant Artist-in-Residence/Industrial Building. Ten large AIR spaces and five industrial units. Approximately 91,512 sq. ft. on approximately 45,720 sq. ft. of land. All tenants are month to month with low rents. Great opportunity for an investor, developer or owner/user. Los Angeles Arts District location. Adjacent to Little Tokyo, Barker Block Lofts, Molino Street Lofts and all the other new developments in the Arts District. Near the Civic Center. State of the Art Cold Storage Warehouse with 6,750 SF of Cooler/Freezer and processing. 24' clear, Built 2004, 3 DH Positions. 28 Parking Spaces. Fenced Yard for Trucks. Perfect Food Distribution Building. ***Please ask about LA Empowerment Zone Tax Breaks*** loopnet.com loopnet.com loopnet.com loopnet.com 90013 5 story condo project in Arts district. 190 residences cartifact.com/dtnews 90013 50 Artist in residence lofts. Artist District. Retrofit cartifact.com/dtnews 90013 75 seat beer restaurant cartifact.com/dtnews GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-81 Avenue 653 S. San Pedro Street 653 S. San Pedro Street 90014 $1,135,000 4,368 $259.84 Industrial Distribution Warehouse Downtown LA Flower District Opportunity 700 S. San Pedro Street 90014 $4,200,000 10,000 $420.00 Retail - Free Standing Building 217 E. 8th Street 217 E. 8th Street 90014 $10,800,000 81,484 $132.54 Industrial Manufacturi ng 829 S. San Pedro Street 829 S. San Pedro Street 90014 $3,900,000 12,697 $307.16 Industrial Warehouse GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES 7th & San Pedro - Heart of the Wholesale District Clean Smaller Building - Divisible into 2 Units Existing New Retail Glass Store Front - 2 Entries - 2 Separate Bathrooms & Electric Meters - Flower Mart - Textile - Retail Uses - Recently Remodeled Loft Conversion Possible. Also for Lease. Great owner user with 10,000 sq.ft. of building 5,000 sq.ft. shed and 2,000 sq.ft. parking. Also an excellent opportunity to develop a flower retail mall in the bustling Downtown L.A. Flower District where retail rents for newer space can exceed $3.00/sf. Site has month-to-month tenant and high corner visibility. State enterprise zone benefits for tenants. OUTSTANDING ADAPTIVE REUSE OPPORTUNITY, APPROVED TENTATIVE TRACK MAP FOR UP TO 77 LIVE WORK UNITS, 12 STORY BUILDING PLUS BASEMENT, UNIQUE ARCHITECTURE / ABUNDANT WINDOWS, GARMENT CAPITOL BUILDING, EXCELLENT LAYOUT FOR NEW LOFTS/OFFICES/INDUSTRIAL, FUNCTIONAL FLOOR PLAN WITH 3 ELEVATORS, BUY FOR LOFT CONVERSION OR KEEP AS INVESTMENT AND RAISE RENTS, ADJACENT TO SANTEE COURT DEVELOPMENT, GROSS ANNUAL INCOME: $552,092 EXCELLENT USER OR INVESTOR OPPORTUNITY, RARE SAN PEDRO STREET FRONTAGE, TWO STREET ACCESS ON SAN PEDRO ST AND SAN JULIAN ST, POTENTIAL FOR WHOLESALE, SHOWROOM, WAREHOUSE, MANUFACTURING. Page 4-82 loopnet.com loopnet.com loopnet.com loopnet.com OUTSTANDING ADAPTIVE REUSE OPPORTUNITY, 13 STORY BUILDING PLUS BASEMENT, MAXFIELD BUILDING, EXCELLENT LAYOUT FOR NEW LOFTS/OFFICES/INDUSTRIAL, FUNCTIONAL FLOOR PLAN WITH 3 ELEVATORS, BUY FOR LOFT CONVERSION OR KEEP AS INVESTMENT AND RAISE RENTS, NEAR SANTEE COURT DEVELOPMENT, GROSS ANNUAL INCOME OF $358,647. BUY FOR LOFT CONVERSION OR KEEP AS INVESTMENT AND RAISE RENTS. Price reduced from $8M to $6.1M! Excellent owner/user property. 3 story warehouse with ground floor retail/wholesale. Many possible uses: great potential! Zoned LA R5. Sprinklered, 2 ground level loading doors, 800 amps power, 10-16 car interior parking, 1,000 sq.ft. of office area, 14' ceiling height, 5,000 sq.ft. of total is basement, 1 freight elevator. 819 Santee Street 819 Santee Street 90014 $10,950,000 93,379 $117.26 Industrial Warehouse 401 E. 6th Street 401 E. 6th Street 90014 $6,100,000 55,548 $109.81 Industrial Warehouse 90014 $555,203 2275 $244.05 Condo Built 2005 zillow.com 90014 $552,000 2275 $242.64 Condo Built 2005 zillow.com 90014 $522,000 1010 $516.83 Single Family Renovated 1990 zillow.com Santee Village 1726 Pico 808 Maple Avenue 804 Maple Avenue 315 E. 8th Street 315 E. 8th Street 1726-1740 Pico Boulevard 90014 90015 loopnet.com loopnet.com cartifact.com/dtnews $3,800,000 GENTRIFICATION AND INDUSTRIAL 17,103 JOB RETENTION IN DOWNTOWN LOS ANGELES $222.18 Industrial Distribution Warehouse Metal beam, bow-truss, brick construction. Rare Industrial Opportunity Close to Downtown Los Angeles. High visibility location Page 4-83 loopnet.com Pico and Olive are both zoned: C2-2D-O. Located on the SWC of Pico and Olive in the South Park district of downtown Los Angeles. Close proximity to the Staples & Los Angeles Convention Center, Embassy Auditorium, Hotel Figueroa, Mayan Theater and Trans America Tower. For most of Los Angele's history, South Park was dominated by industrial, automobile dealerships, and residential hotels. However, the area has begun to rapidly gentrify with luxury apartments and condominiums being built from the early 2000' s onward. This has made it an attractive living area for young professionals. Construction activity includes several loft conversions and new projects in close proximity to the property. Adaptive Re-use Area, City Center Redevelopment. Zoned M2. 20% Down Seller Financing - Bow Truss Ceiling - Store Front Divisible to 2 Units Great Access to 10 & 110 Fwy - Electronics Wholesale - Retail - Apparel. Southwest Corner: Pico & Olive 312 W. Pico Boulevard 90015 $3,800,000 22,749 $167.04 Industrial Distribution Warehouse 1814 S. Grand Avenue 1814 S. Grand Avenue 90015 $1,900,000 6,250 $304.00 Industrial Distribution Warehouse Pico Near Staples 1417 W. Pico Boulevard 90015 $1,350,000 6,100 $221.31 Industrial Distribution Warehouse CLEAN CLEAR SPAN BUILDING RECENTLY REFURBISHED, Set Up For Sewing Contractor, Immediate Occupancy. loopnet.com Industrial Manufacturi ng FANTASTIC ADAPTIVE REUSE OPPORTUNITY, 10 STORY BUILDING PLUS BASEMENT, UP TO 100 CAR PARKING AVAILABLE ON 25 YEAR LEASE, UNIQUE ARCHITECTURE / ABUNDANT WINDOWS, PLANS TO CONSTRUCT 61 LIVE WORK UNITS WITH GROUND FLOOR RETAIL, FUNCTIONAL FLOOR PLAN WITH 3 ELEVATORS, BUY FOR LOFT CONVERTION OR KEEP AS INVESTMENT AND RAISE RENTS, ANNUAL GROSS INCOME OF $441,552 loopnet.com 1060 S. Broadway 1060 S. Broadway 90015 $11,500,000 GENTRIFICATION AND INDUSTRIAL 83,600 JOB RETENTION IN DOWNTOWN LOS ANGELES $137.56 Page 4-84 loopnet.com loopnet.com This property is improved with an 8,900 square foot industrial building and is an excellent owner/user opportunity. Additionally, the property has three grade-level loading doors on Marco Street. Currently, the property has three tenants with two leases that expire in November of 2006 and one lease that expires in December of 2007. Gross rent is $93,000/yr. The property is located just moments from Staples Center and has excellent frontage on Grand Avenue. Because of its location this property offers enormous visibility for a potential owner in the emerging area of South Park. Also includes 413-415 E. Washington Blvd. 3 buildings on 26,093 sq.ft. of land. Prime Fashion District location in Downtown L.A. Perfect for owner/user or developer. 22 car parking, 4 ground level loading doors, built 1947, brick construction, 2,450 sq.ft. office area. Zoned M2. Prime Fashion District Location 8,900 ± SF Owner/User Opportunity in South Park 1320 S. Grand Avenue 90015 $2,800,000 8,900 $314.61 Industrial Manufacturi ng 1700-1734 Maple Avenue 1700-1734 Maple Avenue 90015 $5,400,000 19,817 $272.49 Industrial Manufacturi ng Store+Warehouse in Prime Staples Center location 214 W. 14th Street 90015 $1,499,000 6,000 $249.83 Industrial Warehouse 6,000 Square feet of warehouse, with three Store front/offices in the front. Within walking distance from Staples Center. Zoned C2. loopnet.com 1416 S. Flower Street 1416 S. Flower Street 90015 $2,175,000 7,250 $300.00 Industrial Warehouse Prime Downtown Residential/Commercial Development Site. ** R5 Zoning **. loopnet.com Industrial Warehouse 2 Story Rehab Opportunity - Divided into 4 Units CRA Development Area - Retail, Creative Live work Space - Office Showroom Uses - Contract Parking Available - Month to Month Tenants - #110 & 10 Freeway Access - Near Staples Center Development loopnet.com loopnet.com loopnet.com 1801 S. Olive Street 1801 S. Olive Street 90015 $2,000,000 11,427 $175.02 240 W. 18th Street 240 W. 18th Street 90015 $1,900,000 2,522 $753.37 Industrial Warehouse Small 18ft Clr. Ht. M-2 Warehouse Showroom Santa Monica Freeway Exposure - Possible Loft Creative Workspace Conversion - Seller may Carry 80% 1st Trust Deed - 1801 S. Olive Street & 1814 S. Grand Avenue Also for Sale - Upstairs Office Included in Sq/Ft - Contract Parking Available State Enterprise Zone - Located in CRA Development Zone 1506-1522 W. 12th Street 1506-1522 W. 12th Street 90015 $5,800,000 25,048 $231.56 Industrial Warehouse Beautiful design, showroom, production offices. Three connecting clear span buildings GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-85 loopnet.com loopnet.com 308 E. Ninth Street Maple Union 308 E. Ninth Street 944 S. Maple Avenue Diamond Walnut Building 1737-1745 E. 7th Street 1950 Santa Fe 1950 S. Santa Fe Avenue Bay & Mateo 1931 Bay Street 90015 cartifact.com/dtnews 90015 cartifact.com/dtnews 90021 90021 90021 $10,000,000 $3,500,000 $1,500,485 101,788 26,030 15,050 $98.24 Industrial Distribution Warehouse Classic Multi Story Concrete Deco Building Suitable for Loft Conversion Ideal Asset for Multifamily Investor Seeking to Capitalize on the Surging "For Sale" Housing Market in Downtown Los Angeles, "Low-Risk" entry point into the rapidly developing Downtown marketplace. Q2 2005 condominium sales prices in DTLA are averaging $505/sf - Movie Filming Venue, Dynamic Penthouse Living Space, Spectacular Downtown Skyline View - $134.46 Industrial Distribution Warehouse Prime Location After Completion of Alameda Corridor Project and Adjacent to CRA Prison Development Site, Can Be used as Multi-Tenant Rental Spaces or Single User, Currently used as Garment Mfg., Cutting & Textile, Power & Parking loopnet.com $99.70 Industrial Flex Space Prime Artist Loft Conversion/Development Area. Perfect Owner/User, or Investment Use. Ideal for garment manufacturing, textile, warehousing of imports and related use loopnet.com loopnet.com loopnet.com Globe Tire Building 2323 E. Olympic Boulevard 90021 $4,550,000 32,975 $137.98 Industrial Flex Space Great opportunity for an investor, developer or owner/user. Multi-tenant, Artist-In-Residence/Day Studio Building with high, wood ceilings. The building totals approximately 32,975 square feet, including mezzanine space, on approximately 24,700 square feet of land. There are a total of 14 units, 9 of which are Artist-In-Residence studios and 5 are day studios. The tenants are almost all month to month with very low rents. Included are preliminary drawings for redevelopment. Downtown Wholesale District 950 E. Pico Boulevard 90021 $2,196,000 4,880 $450.00 Industrial Flex Space Superb Los Angeles location, adjacent to the apparel wholesale district. Ideal for store conversion. GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-86 loopnet.com Engine Company No. 17 710 S. Santa Fe Avenue 90021 $2,575,000 8,721 $295.26 Industrial Flex Space Buy a piece of history, ENGINE COMPANY NO. 17. Work, live and own a historic two story fire house. Two unique, creative buildings with parking. Two work spaces on the ground floor and two Artist-in-Residence units on the second floor. There is also a patio and parking for over 20 cars. The 1st floor of the main building is leased for $5,304.50 per month through 1/31/2008. loopnet.com loopnet.com I.G. King Building 821 Mateo Street 90021 $2,350,000 7,200 $326.39 Industrial Flex Space Hidden behind a gritty store front in Downtown LA' s Warehouse district lies this extremely special and stunning Live/Work Space with the hard to acquire "Artist In Residence" designation. With its charming original bow truss ceilings, sliding glass walls, numerous skylights, photography studio, makeup room, living room, 2nd story bedroom, stainless kitchen, and tons of flexible space this is the ultimate downtown artist warehouse, perfect for fashion designers, photographers, architects, production companies etc.. This space has been used for filming by some of Hollywood's Hottest artists like P Diddy, Mary J. Blige, Usher, the hit TV show as well as many other National Commercials, deriving a monthly filming income averaging $4000 (per owner). Mere blocks from the Toy Factory Lofts and Biscuit Company Lofts this neighborhood is changing quickly 768 S. Stanford Avenue 768 S. Stanford Avenue 90021 $4,500,000 20,004 $224.96 Industrial Flex Space RARE INDUSTRIAL DOWNTOWN PURCHASE OPPORTUNITY/ FEATURE-RICH BUILDINGS loopnet.com 1543-1545 Newton Street 1543-1545 Newton Street 90021 $5,375,000 49,120 $109.43 Industrial Flex Space Ground Floor Space - Loading On Two Streets Can Divide - Ready For Occupancy - Building Completely Refurbished - Fabulous Creative Office Buildout - Fenced Parking Lot For 22 Cars Included loopnet.com Santa Fe & Washington 2065 S. Santa Fe Avenue 90021 $3,500,000 21,560 $162.34 Industrial Flex Space Major Industrial Route located at the N.W. Corner of Santa Fe & Washington in the Heart of the Alameda East Redevelopment Zone loopnet.com GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-87 Modernica Downtown LA Redevelopment Site 2118 E. 7th Place 90021 $12,900,000 67,966 Light Industrial Warehouse in Downtown LA 1701 E. 7th Street 90021 $4,888,000 24,500 $199.51 1161 E. 12th Street 1161 E. 12th Street 90021 $2,040,000 4,800 $425.00 1005 Mateo Street 1005 Mateo Street 909-915 S. Santa Fe Avenue 909-915 S. Santa Fe Avenue 746 Washington/Indu strial and Office 640 & 660 Alameda Street 746 E. Washington Boulevard 640 & 660 Alameda Street 90021 $7,600,000 33,236 Multifamily Garden/LowRise Ideal for wholesale distributors, importers/exporters or light industrial manufacturing. Currently, 10,500 sq. ft. leased through July 2007. 3 showrooms. 8 loading docks. 10 offices. 7,000 sq. ft. built in 1989 loopnet.com Great Downtown Property. Newer block building loopnet.com loopnet.com loopnet.com $228.67 Industrial Manufacturi ng Industrial Manufacturi ng One block from loft-converted buildings on Santa Fe Avenue. Great proximity to downtown, artist district, all the major highways. Great retail potential with great street exposure on Santa Fe Avenue. $1,825,000 10,000 $182.50 90021 $1,482,000 7,200 $157.58 90021 $13,800,000 75,000 $184.00 JOB RETENTION IN DOWNTOWN LOS ANGELES loopnet.com EXCESS LAND, CLOSE TO PRODUCE DISTRICT AND TRADE MARTS, M-3 ZONED, 5 BLOCKS NORTH OF 10 FREEWAY, 3 STREET FRONTAGE, ENTERPRISE ZONE & EMPOWERMENT ZONE INCENTIVES, METAL BUILDING WITH LARGE DOCK FOR LOADING 90021 GENTRIFICATION AND INDUSTRIAL Industrial/In dustrialBusiness Park Industrial Manufacturi ng The Modernica mixed-use community is a collection of 7 buildings totaling 67,966 sf and includes 11 live-work units as well as commercial/industrial space that is ideally suited for an owner-user or conversion into additional livework units. With Downtown live-work condominium prices averaging nearly $600 psf, this property is an ideal candidate for condominium conversion. Alternatively, an owner-user may utilize the existing industrial space and continue leasing the live-work units. The Modernica property is directly across from a 78-unit live-work condominium development (2121 Lofts) that was converted from 8 industrial buildings very similar to the subject. Industrial Manufacturi ng Industrial Manufacturi ng loopnet.com Potential for industrial, wholesale, loft/condo conversion, retail Page 4-88 loopnet.com Ocean Jewels Seafood Building 915 Stanford Avenue 90021 $1,272,000 4,240 Industrial Refrigerated/ Cold Storage Excellent owner-user opportunity. Rare free standing freezer/cooler building with yard. Two (2) freezers, one (1) cooler, cooled sorting area and offices. Possible uses - Fish, produce, garment manufacturing & electronics loopnet.com $829.02 Industrial Refrigerated/ Cold Storage 15,000 square Feet of Land Offering including a Produce Building - 10 Truck-High Loading Doors 3,314 Sq. Ft. of Cooler Space - Modern 2nd Floor Offices - 120 Ft. Frontage On Crocker - Very Hot Development Area. 19,000 Square Feet Lot across the street being the N.W. corner of 10th Street & Crocker closed escrow for $12,000,000 ($630.00 psf) This offering is based on the land square foot price of $600.00 psf loopnet.com $300.00 9th Place & Crocker 930 S. Crocker Street 1634 Long Beach Avenue 1634 Long Beach Avenue 90021 $4,860,000 18,000 $270.00 Industrial Warehouse 1142. E. 12th Street 1142 E. 12th Street 90021 $1,875,000 5,000 $375.00 Industrial Warehouse 90021 $8,000,000 1918 Bay Street 1918 Bay Street 920 Mateo Street 920 Mateo Street 90021 $1,776,600 1658 Mateo Street 1658 Mateo Street 90021 $4,350,000 90021 $1,500,000 GENTRIFICATION AND INDUSTRIAL 9,650 $158.21 Industrial Warehouse 10,152 $175.00 Industrial Warehouse 21,750 $200.00 Industrial Warehouse 9,481 JOB RETENTION IN DOWNTOWN LOS ANGELES One of the highest quality buildings available in Downtown - Adjacent to the booming wholesale / retail district - Attractive mezzanine offices, suitable for design RARE PURCHASE OPPORTUNITY IN THE HEART OF FASHION DISTRICT. WALKING DISTANCE TO ALL SHOWROOMS ON 12TH STREET. RAPIDLY GROWING/DEVELOPING AREA. RARE DOCK HIGH BUILDING, CLOSE TO PRODUCE DISTRICT AND TRADE MARTS, M3 ZONED, 5 BLOCKS NORTH OF 10 FREEWAY, ENTERPRISE & EMPOWERMENT ZONE INCENTIVES, METAL BUILDINGS WITH LARGE DOCK FOR LOADING. Clean Freestanding Building-Downtown Location Dock High Loading Via Exterior Dock - Fenced Yard - Parking - Parking - G.L. Ramp - Excellent Access To The 10 Freeway Dynamic Builder's warehouse building built 1987. 25 car gated parking lot. 2 ground level loading doors, 26' ceiling height, 400 amps & 600 amps power, sprinklered, 4 restrooms. Tenant occupies building until January 2008. Page 4-89 loopnet.com loopnet.com loopnet.com loopnet.com loopnet.com Ceres Avenue Warehouse 711 Ceres Avenue 90021 $1,388,400 5,785 $240.00 Industrial Warehouse Excellent owner-user opportunity in a PRIME DOWNTOWN LOS ANEGLES LOCATION! Complete rehab in 2002 which included a new roof, new offices and new loading doors. POSSIBLE USE AS A MULTI-TENANT BUILDING! Excellent parking with six (6) vehicle GATED parking spaces! Possible uses include garment, electronics, produce or fish. 1370 E. Washington Boulevard 1370 E. Washington Boulevard 90021 $775,000 2,028 $382.15 Industrial Warehouse GROWING AREA - GREAT POTENTIAL 16' CLEAR - LARGE, PAVED & FENCED YARD GREAT PARKING loopnet.com loopnet.com loopnet.com 2008 Mateo Place 2008 Mateo Place 90021 $999,000 4,704 $212.37 Industrial Warehouse MODERN FOOD PROCESSING BUILDING NEAR DOWNTOWN 1,330 SF REFRIGERATED PROCESSING AREA, 660 SF COOLER MULT. CHANNEL DRAINS - WATER COLLECTION SAMPLE BOX 700 SQ FT OVERHANG (NOT SHOWN IN PICTURE) TWO STORAGE CONTAINERS AVAILABLE Santa Fe Tower 1200 S. Santa Fe Avenue 90021 $13,400,000 93,660 $143.07 Industrial Warehouse 3 BUILDING 4-STORY 3-STORY 1-STORY. BUILDING JUST DOWN STREET FROM NEW LOFTS DEVELOPMENT loopnet.com 1828 Conway Place 1828 Conway Place 90021 $2,190,000 8,750 $250.29 Industrial Warehouse HI IMAGE PROPERTY. GREAT COOLER/FREEZER BUILDING. 800 SQ FT FREEZER, 2200 COOLER SPACE. FENCED YARD loopnet.com 1912 E. 7th Place 1912-1920 E. 7th Place 90021 $2,000,000 11,040 $181.16 Industrial Warehouse Desirable Los Angeles Industrial Building. Could Be Light Manufacturing Or Warehouse.7500+ Sq.Ft. Leased Month To Month.2 Truck High Dock Price To Sell. loopnet.com 1811, 1905, 1907 E. 7th Street 1811, 1905, 1907 E. 7th Street Industrial Warehouse Three Individual buildings totaling 17,000 SF, Seller financing available at market rate! 18 Car Parking. Large Fenced Yard ±6,000 SF, 22,800 SF Land Parcel. Owner User or Development Site Residential/Retail. Three clean open span buildings/divisible separate meters loopnet.com Industrial Warehouse Classic multi story concrete deco building, Deluxe executive offices with marble entry, hot movie location, public storage or warehouse. Possible for loft conversion, secure parking, 2 elevators, rooftop penthouse living space with skyline view. Good laboring area. Good location for business and good transportation for employees. loopnet.com 1745 E. 7th Street 1745 E. 7th Street 90021 90021 $2,900,000 $10,000,000 GENTRIFICATION AND INDUSTRIAL 17,000 100,788 JOB RETENTION IN DOWNTOWN LOS ANGELES $170.59 $99.22 Page 4-90 Naomi Freeway Distribution Center 1600-1650 Naomi Avenue 90021 2118-2140 E. 7th Place 2119-2140 E. 7th Place 90021 Mill Street 1855 Industrial Street STE 316 2214 Damond Street 1365 E. 15th Street 1433 E. 15th Street 1437 E. 15th Street 1426 Newton Street 1414 Newton Street 1010 E. 7th Street 1201 E. 7th Street 673 Mateo Street $3,200,000 39,372 $81.28 67,966 Industrial Warehouse 4 Warehouse/Distribution Units - 100% Leased Land is leased from Cal-Trans loopnet.com Industrial Warehouse USER CAN OCCUPY UP TO 37.238 SQUARE FEET. 11 EXISTING LIVE/WORK LOFTS. GREAT DEVELOPMENT OPPORTUNITY loopnet.com 90021 $588,139 1479 $397.66 Condo Condo Unit. Built in 1924. 22 matching units at this address. Last sold 01/21/2005. zillow.com 90021 $419,443 1106 $379.24 Single Family Single family unit. Built in 1895. zillow.com 90021 $511,650 1836 $278.68 Multi Family 4 Bedrooms. Built in 1910 zillow.com 90021 $401,000 996 $402.61 Built 1917 zillow.com 90021 $417,000 808 $516.09 Built 1910 zillow.com 90021 $579,000 2340 $247.44 3 Units zillow.com 90021 $478,000 464 $1,030.17 2 Units, Built 1902 zillow.com 90021 $1,859,000 13312 $139.65 90021 $2,616,000 13131 $199.22 Single Family Single Family Multi Family Industrial zillow.com zillow.com 90021 113 unit condo projects cartifact.com/dtnews Sixth Street Lofts 1291 E. Sixth Street 90021 Adaptive reuse project in the Arts District, 63 livework units cartifact.com/dtnews Inner-City Arts 720 S. Kohler Street 90021 New Theatre, ceramics complex, library cartifact.com/dtnews GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-91 Appendix E Below is a table of manufacturing sectors in the four Downtown zip code areas and a conservative estimate of the number of workers they employ. Table 4-12 Number of Workers Employed by Manufacturing Sector IMPLAN Sector 48 58 59 60 66 67 68 69 70 71 73 74 75 82 84 85 87 92 93 94 95 96 97 100 101 103 104 106 107 108 110 111 112 119 120 123 126 135 139 140 141 150 Description Flour milling Confectionery manufacturing from purchased chocolate Non-chocolate confectionery manufacturing Frozen food manufacturing Ice cream & frozen dessert manufacturing Animal, except poultry, slaughtering Meat processed from carcasses Rendering & meat byproduct processing Poultry processing Seafood product preparation & packaging Bread & bakery product, except frozen, manufacturing Cookie & cracker manufacturing Mixes & dough made from purchased flour Mayonnaise, dressing & sauce manufacturing All other food manufacturing Soft drink & ice manufacturing Wineries Fiber, yarn & thread mills Broadwoven fabric mills Narrow fabric mills and schiffli embroidery Nonwoven fabric mills Knit fabric mills Textile & fabric finishing mills Curtain & linen mills Textile bag & canvas mills Other miscellaneous textile product mills Sheer hosiery mills Other apparel knitting mills Cut & sew apparel manufacturing Accessories & other apparel manufacturing Footwear manufacturing Other leather product manufacturing Sawmills Other millwork, including flooring Wood container & pallet manufacturing Miscellaneous wood product manufacturing Paperboard container manufacturing All other converted paper product manufacturing Commercial printing Tradebinding and related work Paperpress services Other basic inorganic chemical manufacturing GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES # of Jobs in Downtown 5 10 110 50 15 100 10 1 75 508 112 20 10 6 81 110 1 65 103 21 1 14 342 11 17 2 11 108 9790 708 10 10 1 10 31 6 1 10 668 12 13 25 Page 4-93 153 159 167 172 177 178 179 181 199 209 220 222 229 232 235 236 239 242 243 247 252 255 262 265 266 269 270 275 278 282 287 291 292 295 301 309 318 326 335 344 350 362 364 366 368 369 371 373 376 379 Synthetic rubber manufacturing Pesticide and other agricultural chemical manufacturing Printing ink manufacturing Plastics packaging materials, film & sheet Plastics plumbing fixtures & all other plastics products Foam product manufacturing Tire manufacturing Other rubber product manufacturing Cut stone & stone product manufacturing Primary aluminum production Secondary processing of other nonferrous Aluminum foundries Hand & edge tool manufacturing Prefabricated metal buildings & components Metal window & door manufacturing Sheet metal work manufacturing Metal tank, heavy gauge, manufacturing Spring & wire product manufacturing Machine shops Electroplating, anodizing, and coloring metal Fabricated pipe & pipe fitting manufacturing Miscellaneous fabricated metal product manufacturing Sawmill & woodworking machinery Textile machinery manufacturing Printing machinery & equipment manufacturing All other industrial machinery manufacturing Office machinery manufacturing Air purification equipment manufacturing AC, refrigeration, & forced air heating Special tool, die, jig, & fixture manufacturing Speed changers & mechanical power transmission equipment Elevator & moving stairway manufacturing Conveyor & conveying equipment manufacturing Power-driven handtool manufacturing Scales, balances, & miscellaneous general purpose machinery Audio & video equipment manufacturing Electricity & signal testing instruments Lighting fixture manufacturing Switchgear & switchboard apparatus manufacturing Automobile & light truck manufacturing Motor vehicle parts manufacturing Wood kitchen cabinet & countertop manufacturing Non-upholstered wood household furniture manufacturing Institutional furniture manufacturing Wood office furniture manufacturing Custom architectural woodwork & millwork Showcases, partitions, shelving & lockers Blind & shade manufacturing Surgical appliance & supplies manufacturing Dental laboratories GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES 20 10 1 5 10 100 20 1 1 5 10 20 12 1 5 25 50 40 9 86 100 6 10 310 1 1 10 10 1 5 5 25 1 50 1 5 1 15 50 20 20 5 1 26 5 50 12 10 18 17 Page 4-94 380 381 382 384 385 387 389 Jewelry & silverware manufacturing Sporting & athletic goods manufacturing Doll, toy & game manufacturing Sign manufacturing Gasket, packing, and sealing device manufacturing Broom, brush, and mop manufacturing Buttons, pins, and all other miscellaneous manufacturing TOTAL 785 10 2 8 20 50 69 16,190 Source: 2003 Economic Census Table 4-14 Direct Losses to Output Sector Cut & sew apparel manufacturing Jewelry & silverware manufacturing Seafood product preparation & packaging Accessories & other apparel manufacturing Commercial Printing Indirect Losses to Output Wholesale trade Cut & sew apparel manufacturing Management of companies and enterprises Other support services Truck Transportation Induced Losses to Output Owner-occupied dwellings Wholesale trade Hospitals Food services & drinking places Offices of physicians, dentists, and other health practitioners Total Losses to Output Cut & sew apparel manufacturing Wholesale trade Jewelry & silverware manufacturing Seafood product preparation & packaging Commercial Printing GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Output Loss -$290,011,500 -$30,691,910 -$23,720,710 -$23,200,850 -$20,656,950 -$54,322,710 -$11,832,510 -$11,713,300 -$11,593,260 -$5,854,461 -$14,641,840 -$8,764,615 -$7,632,516 -$6,843,159 -$5,970,427 -$302,678,300 -$63,087,330 -$30,835,780 -$24,895,700 -$24,440,700 Page 4-95 Table 4-15 Output Impact for a 25% Decline in Manufacturing Employment Downtown Direct Indirect Induced Total 11 Ag, Forestry, Fish & Hunting ( Industry 0 -328,170 -96,156 -424,326 19 21 Mining (AGG) 0 -683,004 -469,416 -1,152,420 30 22 Utilities (AGG) 0 -4,566,385 -2,151,101 -6,717,486 33 23 Construction (AGG) 0 -1,291,163 -689,687 -1,980,850 46 31-33 Manufacturing (AGG) -535,110,784 -49,114,268 -13,376,349 -597,601,408 390 42 Wholesale Trade (AGG) 0 -54,322,712 -8,764,615 -63,087,328 391 48-49 Transportation & Warehousing 0 -14,241,493 -4,667,231 -18,908,724 401 44-45 Retail trade (AGG) 0 -1,895,295 -14,498,432 -16,393,727 413 51 Information (AGG) 0 -6,267,033 -5,183,218 -11,450,251 425 52 Finance & insurance (AGG) 0 -9,241,100 -13,955,237 -23,196,338 431 53 Real estate & rental (AGG) 0 -13,730,509 -8,389,129 -22,119,638 437 54 Professional- scientific & tech sv 0 -16,206,236 -6,079,392 -22,285,628 451 55 Management of companies (AG 0 -11,713,297 -1,251,605 -12,964,902 452 56 Administrative & waste services 0 -17,080,018 -3,423,466 -20,503,484 461 61 Educational svcs (AGG) 0 -530,548 -2,070,084 -2,600,632 464 62 Health & social services (AGG) 0 -6,197 -20,935,482 -20,941,678 475 71 Arts- entertainment & recreation 0 -979,784 -2,483,887 -3,463,671 479 72 Accomodation & food services 0 -3,419,108 -8,220,344 -11,639,452 482 81 Other services (AGG) 0 -7,086,618 -8,695,505 -15,782,123 495 92 Government & non NAICs (AGG 0 -4,849,003 -17,967,880 -22,816,884 1 30001 Instutitions (AGG) Total GENTRIFICATION AND INDUSTRIAL 0 0 0 0 -535,110,784 -217,551,940 -143,368,215 -896,030,950 JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-96 Table 4-16 Direct Losses to Employment Industry Cut & sew apparel manufacturing Jewelry & silverware manufacturing Accessories & other apparel manufacturing Commercial Printing Seafood product preparation & packaging Indirect Losses to Employment Wholesale trade Management of companies & enterprises Cut & sew apparel manufacturing Other support services Employment services Induced Losses to Employment Food services & drinking places Offices of physicians, dentists, and other health practitioners Wholesale Trade Hospitals Nursing & residential care facilities Total Losses to Employment Cut & sew apparel manufacturing Wholesale trade Jewelry & silverware manufacturing Food services & drinking places Commercial Printing GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Employment Loss -2448 -213 -177 -168 -127 -424.8 -110.6 -99.9 -89.4 -50.2 -153.7 -80.7 -68.5 -65.4 -47.9 -2,554.9 -493.3 -214.0 -200 -198.8 Page 4-97 Table 4-17 Employment Impact 1 Industry Direct Indirect Induced 11 Ag, Forestry, Fish & Hunting ( 0 -6.2 -1 Total -7.3 19 21 Mining (AGG) 0 -2.1 -1.5 -3.6 30 22 Utilities (AGG) 0 -6.5 -3.3 -9.8 33 23 Construction (AGG) 46 31-33 Manufacturing (AGG) 0 -14.4 -7.2 -21.6 -4,058.00 -325.8 -59.9 -4,443.70 390 42 Wholesale Trade (AGG) 391 48-49 Transportation & Warehousing 0 -424.8 -68.5 -493.3 0 -103.8 -34 401 44-45 Retail trade (AGG) -137.9 0 -31.9 -244.5 -276.4 413 51 Information (AGG) 0 -27.9 -18.9 -46.8 425 52 Finance & insurance (AGG) 0 -51.2 -79.9 -131.1 431 53 Real estate & rental (AGG) 0 -56.2 -51.5 -107.7 437 54 Professional- scientific & tech sv 0 -144.2 -56.8 -201 451 55 Management of companies (AG 0 -110.6 -11.8 -122.4 452 56 Administrative & waste services 0 -192.6 -61.5 -254.2 461 61 Educational svcs (AGG) 0 -9.6 -44.6 -54.2 464 62 Health & social services (AGG) 0 -0.1 -264.4 -264.4 475 71 Arts- entertainment & recreation 0 -18.7 -36.2 -54.9 479 72 Accomodation & food services 0 -64 -165.8 -229.9 482 81 Other services (AGG) 0 -61.5 -138.4 -199.9 495 92 Government & non NAICs (AGG 0 -20.2 -15.9 -36.1 Instutitions (AGG) 0 0 0 0 -4,058.00 -1,672.40 -1,365.80 -7,096.20 30,001 Total GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-98 Table 4-18 Employment Levels Industry Employment Loss Post-Impact Percent Change 11 Ag, Forestry, Fish & Hunting 8310 -6.2 8304 -0.07% 21 Mining 8819 -2.1 8817 -0.02% -0.07% 9780 -6.5 9774 23 Construction 22 Utilities 238897 -14.4 238882 -0.01% 31-33 Manufacturing 607717 -325.8 607392 -0.05% 42 Wholesale Trade 252753 -424.8 252329 -0.17% 48-49 Transportation & Warehousing 165902 -103.8 165799 -0.06% 44-45 Retail trade 514728 -31.9 514696 -0.01% 51 Information 235078 -27.9 235050 -0.01% 52 Finance & insurance 252319 -51.2 252268 -0.02% 53 Real estate & rental 242682 -56.2 242626 -0.02% 54 Professional- scientific & tech svcs 470373 -144.2 470228 -0.03% 55 Management of companies 85391 -110.6 85280 -0.13% 56 Administrative & waste services 382305 -192.6 382113 -0.05% 61 Educational svcs 101069 -9.6 101060 -0.01% 62 Health & social services 428872 -0.1 428872 0.00% 71 Arts- entertainment & recreation 171866 -18.7 171848 -0.01% 72 Accomodation & food services 345609 -64 345545 -0.02% -0.02% 81 Other services 395479 -61.5 395417 92 Government & non NAICs 609185 -20.2 609165 0.00% Totals 5527136 -7,096.20 5525464 -0.03% GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-99 Table 4-19 Direct Losses to Labor Income Industry Cut & sew apparel manufacturing Commercial printing Jewelry and silverware manufacturing Accessories & other apparel manufacturing Seafood product preparation & packaging Indirect Losses to Labor Income Wholesale trade Management of companies & enterprises Other support services Cut & sew apparel manufacturing Truck Transportation Induced Losses to Labor Income Offices of physicians, dentists, and other health practitioners Food services & drinking places Wholesale trade Hospitals Securities, commodity contracts, investment Total Losses to Labor Income Cut & sew apparel manufacturing Wholesale trade Management of companies & enterprises Commercial printing Jewelry & silverware manufacturing GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Income Loss -56,729,220 -6,777,403 -6,531,497 -4,921,506 -3,927,609 -20,757,450 -7,548,351 -3,307,910 -2,314,561 -2,113,402 -4,242,935 -3,508,975 -3,349,080 -3,326,236 -1,641,232 -59,206,980 -24,106,530 -8,354,918 -8,018,826 -6,562,113 Page 4-100 Table 4-20 Labor Income Impact Direct Indirect Induced Total 11 Ag, Forestry, Fish & Hunting (AGG) Industry 0 -64,512 -29,406 -93,919 19 21 Mining (AGG) 0 -127,056 -87,158 -214,214 30 22 Utilities (AGG) 0 -897,028 -443,394 -1,340,422 33 23 Construction (AGG) 46 31-33 Manufacturing (AGG) 390 391 1 0 -669,472 -336,265 -1,005,737 -111,995,832 -11,020,866 -2,438,519 -125,455,216 42 Wholesale Trade (AGG) 0 -20,757,452 -3,349,080 -24,106,532 48-49 Transportation & Warehousing 0 -6,429,584 -2,096,617 -8,526,201 401 44-45 Retail trade (AGG) 0 -947,775 -6,999,632 -7,947,407 413 51 Information (AGG) 0 -2,335,320 -1,597,475 -3,932,795 425 52 Finance & insurance (AGG) 0 -3,343,813 -4,775,333 -8,119,145 431 53 Real estate & rental (AGG) 0 -1,515,067 -1,128,613 -2,643,681 437 54 Professional- scientific & tech sv 0 -8,810,931 -3,482,351 -12,293,282 451 55 Management of companies (AG 0 -7,548,351 -806,567 -8,354,918 452 56 Administrative & waste services 0 -6,515,823 -1,899,788 -8,415,611 461 61 Educational svcs (AGG) 0 -268,036 -1,334,557 -1,602,593 464 62 Health & social services (AGG) 0 -2,051 -10,710,673 -10,712,724 475 71 Arts- entertainment & recreation 0 -587,031 -1,233,397 -1,820,428 479 72 Accomodation & food services 0 -1,592,379 -3,867,457 -5,459,836 482 81 Other services (AGG) 0 -1,967,576 -3,036,529 -5,004,105 495 92 Government & non NAICs (AGG 0 -1,385,350 -1,066,128 -2,451,478 Instutitions (AGG) 0 0 0 0 -111,995,832 -76,785,474 -50,718,937 -239,500,242 30001 Total GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-101 References Avila-Hernandez, Lydia. 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Industrial Land Use Project. Retrieved on April 25, 2007 from the Department of City Planning Website: http://www.planning.lacity.org GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-102 Downtown Center Business Improvement District. (2006) Living Here. Retrieved on April 23, 2007 from the Downtown Center Business Improvement District Web Site: http://www.downtownla.com/living_here.asp Geffner, David (2005, March 28). Inevitably Renewal Leads to Gentrification. Los Angeles Business Journal. Retrieved April 30, 2007, from http://findarticles.com/p/articles/mi_m5072/is_13_27/ai_n13604949 George, Evan. (February 5, 2007). City of Less Industry. Los Angeles Downtown News. Retrieved February 17, 2007 from http://www.downtownnews.com /articles/2007 /02/05/news/news02.txt. George, Evan. (May 1, 2007). Redeveloping the CRA. Retrieved on May 1, 2007 from the Los Angeles Downtown News Website: http://www.downtownnews.com/articles/2007 /04/16/news/news04.txt. 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Retrieved February 13, 2007 from www.umich.edu/~econdev/indust-reten/ Spivak, D., Deputy Chief of Operations and Policy of CRA/LA. (April 30, 2007). Industrial Land Use Policy: The General Plan, Zoning and Politics in Action. Guest Speaker in Urban Planning 211 course. Tetzlaff, Bill. Approval of Technical Revisions to Minneapolis Industrial Land & EmploymentStrategy (MILES) Program Guidelines. Retrieved April 27, 2007, from Department of Community Planning & Economic Development. http://www.ci.minneapolis.mn.us/ cped/docs/resource_miles.pdf The Mission Anti-Displacement Partnership. (2005). The People’s Plan for Jobs, Housing, and Community. Retrieved March 21, 2007 from http://www.andnet.org/PeoplesPlan.pdf The Pratt Center for Community Development. (2001). Making it in New York: Manufacturing Land Use & Zoning Initiative. [Electronic version]. http://www.prattcenter.net/polmulzi.php Wolff, Goetz, Lecturer, University of California, Los Angeles (April 3, 2007). Southern California Regional Economy: Logistics. Urban Planning CM137 course. GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-105 GENTRIFICATION AND INDUSTRIAL JOB RETENTION IN DOWNTOWN LOS ANGELES Page 4-106 Chapter 5 TRANSIT AND HOUSING DEVELOPMENTS: Challenges and Opportunities for South Los Angeles Miguel Nuñez Enrique Velazquez TRANSIT AND HOUSING DEVELOPMENTS: Challenges and Opportunities for South Los Angeles Page 5-1 5.1 INTRODUCTION Much has been written of the effects that transit infrastructure investment can have on transit systems and local residents (Boarnet, 1996; Garret and Taylor, 1999; Giuliano, 1995; Levinson, 2002; Taylor and Samples, 2002). Construction is lengthy and messy, and subsequent use of facilities can substantially alter the functioning and character of a neighborhood. On the other hand, capital investment is seen as a boon for economic development and proximity to transportation infrastructure can result in improved accessibility. A topic that is discussed less frequently is the potentially disruptive consequences disinvestment and under-funding in facilities and properties owned by local transit agencies can have on local neighborhoods. Maintenance yards, abandoned right of ways (ROWs), and underutilized surface parking lots can become local junk-yards that no one would want on their block. As development attracts more residents, urban transportation infrastructure becomes strained, leading to congested roads and crowded street parking. As a response to these conditions many constituents and elected officials push for improved public transit to get cars off the road and mitigate the environmental affects of heavy dependence on auto use (Garret and Taylor, 1999; Giuliano, 2005; Wachs, 1989). Consequently, transit agencies are reluctant to cede control of right of ways as they might be included in future plans, and reacquiring urban land for transit right of ways can be very costly. This research explores the tension between the rights of local residents to have a voice in their community and the needs of public transit agencies to meet regional transit needs. While transit infrastructure development is inevitable, the costs of such activities have often accrued to low-income communities of color, disproportionately affecting their quality of life. This chapter will also discuss relevant players and suggest alternatives as to how these players on an individual or collective basis can help the local nonprofits and area residents achieve the goals of successfully reclaiming their neighborhood. Additionally, the paper will address land assemblage possibilities within the neighborhood surrounding the ROW; provide information and suggestions on how a section of the Metro’s right of way i in the neighborhood could be utilized for this purpose. In support of these arguments, information will be provided on how ROWs have been used for multi family structures by the Cities of Pasadena and San Diego. Information will also be included on current and past Joint Development (JD) projects the Metro has entered into with nonprofit and for-profit entities allowing them to utilize their land for the construction of for-rent and for-sale housing units. Lastly, suggestions and recommendations will be made to all players mentioned, for cooperation, entrepreneurship, and openness for the benefit of area residents. It is our hope that this will be done to rectify the disenfranchisement this community has been subjected to, and the many incompatible land use issues in the area, including industrial TRANSIT AND HOUSING DEVELOPMENTS: Challenges and Opportunities for South Los Angeles Page 5-2 contamination of their neighborhood. Equally important are the questions of how this historic effort could help to balance the industrial and residential needs in a healthy, constructive and sustainable manner. This is an opportune time to raises these issues as both the Community Redevelopment Agency (CRA) and the L.A. Planning Department have new leaders who bring with them new energy, experience and open minds regarding citizen participation in planning processes. The new Chief Executive Officer of the CRA, Cecilia Estolano recently stated “we need to create economic opportunity for people that live in place of projects so that they can have a better life and not gentrification, not removal of people but removal of obstacles for economic benefits” (Estolano, 2007) 5.2 ROW BACKGROUND: LOCATION, SURROUNDING AREA, STAKEHOLDERS AND EQUITY A ROW is a stretch of land that is designated and preserved for transportation services such as buses, streets, subways, and bike lanes. For example, the Century Freeway (105 Freeway) occupies a wide and lengthy ROW is a precondition for the location of the freeway. This ROW allows for automobile, truck, and bus traffic. In addition, the median of the Century Freeway has an additional ROW that contains the tracks, stations, and equipment that service the Green Line (Figure 5-1). Sidewalks provide a ROW for pedestrians and bike lanes provide a ROW for cyclists. Figure 5-1 ROW Examples Source: Google Earth In transportation planning the requirements and design for right of ways can vary substantially depending on the mode of transportation, hence the importance of obtaining adequate right of ways. Vehicles, ROW, and terminals constitute a transit system. In the TRANSIT AND HOUSING DEVELOPMENTS: Challenges and Opportunities for South Los Angeles Page 5-3 example of the Green Line, the trains represent the vehicles, the track in the median is the ROW, and stations are terminals where passengers enter and exit the train. In this case people are moved, but one might just as easily have vehicles, tracks, and stations that are used for the movement of goods. If a bike lane is being planned, it must be determined if there is adequate space to provide an area for cyclists to travel. This space may be obtained by taking it from an existing lane or removing on-street parking. By reserving that space for a bike lane a ROW is created. Because freeways carry larger, heavier vehicles, and accommodate travel at higher speeds, the ROW must allow for a design that can meet the transportation system’s needs. Have you ever noticed that when you get on or off a freeway you are almost always going up or downhill, rather than level? That is because freeway ROWs can not interfere with the existing street network since they are designed for travel at different speeds. Freeways have their own right of ways that are elevated or below grade. Lanes on freeways are wider than lanes in streets to allow for safe travel at increased speeds. There are various reasons why the construction of rail requires a sizeable ROW. One reason is travel time and efficiency of the network. By having a ROW that avoids streets and intersections, rail systems avoid delays and interference with the automobile network. Secondly, this results in safer transportation systems. It is preferable to avoid crossing rail lines with right of ways for cars or pedestrians. This is one reason that rail is often placed underground. It avoids having rail and automobile traffic sharing at-grade crossings, reducing the likelihood of unsafe situations for drivers and pedestrians, and allows for fast travel. One of the biggest drawbacks of subterranean construction, is of course, the cost. History of the Surrounding Area South Los Angeles encompasses a number of communities that have been inhabited predominately by minority populations in recent history. When the City of Los Angeles incorporated in 1850, only 12 African Americans lived in the City (Leavitt, 1997). The African American population steadily grew in the following years. Development through much of Los Angeles was tied to farming, ranching, and the railroads. During the 1920s Central Avenue was known as a cultural center of the African American community and had a relatively sizeable black population. Still standing today is the Dunbar hotel which was frequented by prominent African Americans. At this same time however, restrictive covenants were often used to prevent the presence of black residents into mostly white neighborhoods. In 1948, the Supreme Court ruled that restrictive covenants on race could be entered into between private parties, but were not enforceable. Legal actions, coupled with demand for labor in the defense industries and the return of African Americans who had served honorably in WWII, contributed to greater housing opportunities for blacks. Ethnic and racial discrimination, however, persists to this day. TRANSIT AND HOUSING DEVELOPMENTS: Challenges and Opportunities for South Los Angeles Page 5-4 According to the 1970 Census African Americans made up about 86.2 percent of the population, by 1990 this percentage had decreased to 39 percent while the Hispanic population had reached approximately 59 percent. The African American community continues to be present physically and culturally in the area, particularly in the corridor along Central Avenue. Most recent demographic trends suggest that while the Hispanic population is growing, it has diversified to include more immigrants from Southern and Central America (Census, 1990; Census, 2000). Incompatibility of ROW, Zoning, and Land Uses The 2.2-mile ROW known as the Long Beach Blue Line and Exposition Line connector is named after a report entitled Long Beach Blue Line and Exposition Line Connector Study (Connector Study). This report was commissioned by Metro and released in December of 2006. It documents the history of the site and Metro’s current plans for the property in question (Metro, 2006). Many of the parcels adjoining the ROW are zoned for industrial use, while remaining nearby land uses are predominately residential in nature (Figure 5-2). It is worth noting the distinction between residential zones and residential uses in this community. Much of the land is actually designated for industrial land use although it accommodates a residential use (Figure 5-3). According to longtime resident, and organizer of Neighbors for an Improved Community (NIC), there were somewhat failed attempts in the 70s by the city to rezone this area to attract more industrial development (C. Nunez, personal communication, 2/4/07) (see Figure 5-4). Figure 5-2 Zoning Imposed on Aerial of ROW Sources: Google Earth, ZIMAS TRANSIT AND HOUSING DEVELOPMENTS: Challenges and Opportunities for South Los Angeles Page 5-5 Figure 5-3 Industrial Zone with Residential Land Uses (Trinity Street between 31st and 32nd Street) Source: Google Earth Figure 5-4 Residential Use with Rear Yard Adjoining ROW Source: Miguel Núñez TRANSIT AND HOUSING DEVELOPMENTS: Challenges and Opportunities for South Los Angeles Page 5-6 The juxtaposition of aerial photographs and a zoning map demonstrates at least two things. First, today, the diversity in land uses in the area continues to be incompatible as the ROW, industrial properties, and residential properties are adjoining for much of the ROW. Second, while the ROW is sizeable, it is a contentious assertion that the community would be well served by installing at-grade rail in the midst of people’s homes and backyards. Not to mention that there are likely industrial businesses that would prefer to continue using the land they have leased or oppose the construction of rail adjacent to their businesses. Since Metro acquired the property in 1991 the tracks have not been used for any transportation related use. As a result the ROW has suffered from neglect. The portions surrounded by residential areas have been enclosed by Metro to prevent trespassing and illicit activity, and the tracks are hardly visible under the years of dirt and vegetation that have accumulated. Moreover, current long-range plans for Metro do not allocate funds or make explicit plans to make use of the connector over the next 25 years (Metro, 2006). Further east along the ROW, where industrial uses become more concentrated, some businesses have leased the property from Metro for use as parking lots (Figure 5-5). Figure 5-5 Leased Temporary Parking Areas Along ROW Source: Google Earth In sum, Metro owns a large strip of land that is in disrepair and essentially creates a nuisance for the community in its current state. Metro’s goal to construct rail, does not in the mind of residents, represent much of an improvement. As the figures below illustrate, the site accumulates trash, creates an unsafe area, and diminishes the aesthetic qualities of the neighborhood. Metro’s unwillingness to recognize the disruptive nature of the ROW, with or without rail, is particularly concerning because they can not provide assurances TRANSIT AND HOUSING DEVELOPMENTS: Challenges and Opportunities for South Los Angeles Page 5-7 that anything will happen on their property. They maintain that the value of the ROW for potential transit infrastructure is just too valuable for them to cede control of the land. It is hard to see why any community would be accepting of terms that ensured the neighborhood would continue to bear the brunt of the non-monetary costs of the ROW, with the prospect of very limited benefits so long as the site remains under Metro’s control. Relevant Players Attempting to get rights from Metro to develop the ROW in a manner that is more compatible with the community has been a lengthy process involving various entities and organizations. The process has basically been one in which organizations and community members have approached Metro about pursuing alternative uses for various parcels near the intersection of 30th Street and Maple Street. These efforts have been largely community-initiated and supported by local nonprofit agencies. Local political officials and local government agencies have also become involved. The following section will discuss the roles, motivations, and goals of entities involved in this process. The 2006 Connector Study was commissioned in response to community groups’ requests to obtain development rights to the land, and at least an implicit recognition by Metro that the current state of the ROW is not acceptable. Metro’s position, as outlined in that report, is that the value of the ROW for future transit uses is too great to justify allowing alternative developments by lease or sale of the property. It would be very expensive to acquire right of ways in the future and Metro is considering how they will be able to meet regional demand for transit in the future. While the report does not take into consideration the costs the community has born to this point, or the costs of disruption that might result from the construction of rail, it does discuss the potential for alternative development on the ROW if it meets certain conditions. Nonprofit organizations and community-based groups have been instrumental in approaching Metro with different development proposals. Neighbors from an Improved Community (NIC), is an organization of neighbors who would like to see the ROW utilized in a manner that is compatible with the community and provides greater local benefits. They argue that although it might be more expensive, using an alternate route or undergrounding the rail line is preferable for the community. The Figueroa Corridor Coalition for Economic Justice (FCCEJ), Figueroa Corridor Community Land Trust (FCCLT), and the Strategic Action for a Just Economy (SAJE) have been some of the local nonprofit organizations supporting NIC and working to promote development projects that bring tangible benefits to local communities. The FCCLT has a particular interest in obtaining land as they seek to construct affordable housing in the neighborhood. If properties that are zoned for industrial use can be purchased and combined with the ROW for development, greater opportunities can be created in the vicinity than if the ROW could not be used for development. FCCLT is TRANSIT AND HOUSING DEVELOPMENTS: Challenges and Opportunities for South Los Angeles Page 5-8 pursuing the possibility of obtaining leases from Metro to use the land from the ROW, however Metro’s policies limit the type of development that can take place. This means that restrictions are imposed on the FCCLT that would not otherwise be present when acquiring land for the development of affordable housing (later sections of this paper will directly address FCCLT’s involvement, the potential for housing development, and examples of development near transit). Councilwoman Jan Perry who presides over Council District 9 (CD9), where the ROW is located, also has voiced strong support for development that is more harmonious with the community and can provide opportunities for housing and economic development. The Planning Department, sponsored by the Community Redevelopment Agency of Los Angeles is currently revising a number of community plans throughout Los Angeles. Both CRA and Councilwoman Perry have indicated that the revised community plans would best serve the local community if the surrounding industrial uses were removed and rezoned, and if Metro agreed not to develop the connector ROW for at-grade rail. Councilwoman Perry’s influence has been essential in bringing the neighborhood’s concerns to Metro. The Planning Department and CRA have played less of a role as advocates, however they will still be involved in the development of the area. CRA is providing funding for the revision of the community plan which allows the Planning Department to research landuse possibilities and long-term planning for the area. A new community plan that promotes the residential character of the neighborhood and recognizes the opportunities that the ROW can create would be a powerful tool for the community to use in its effort to promote rail in their neighborhood. Any future development would have to comply with development standards related to the size, bulk, use, and parking requirements. The Planning Department would be the agency responsible for approving entitlements and ensuring compliance with zoning standards. Transit Equity The construction of rail systems is a substantial investment that has recently been taken on by cities across the country. Before beginning a more specific discussion of the incompatibility of Metro’s proposal, it is helpful to take a step back and look at some of the issues and policies that have driven the development of rail in Los Angeles and other Metropolitan areas. Political pressure, economic development, and environmental concerns have all made rail popular among voters and decision makers. A brief discussion of transit funding in California, political realities, and the use of transit in Los Angeles will provide a context to better understand why investment in rail may not be the best or most cost-effective way for Metro to meet the transit needs of this community or Los Angeles in general. It is important to clearly state what transit equity is and why this section is aimed at making it a central part of this discussion. Equity can be interpreted in various ways and TRANSIT AND HOUSING DEVELOPMENTS: Challenges and Opportunities for South Los Angeles Page 5-9 ignoring this fact can lead to a misunderstanding of what people want to see take place with transit. For example, one example of equity is geographic equity, meaning that different geographic areas receive the same amount of money that they collect through taxes or fees (Levinson, 2002). Currently monies that are collected for transportation are sent to the federal government who redistributes the funds to states, who in turn redistributes money to local government agencies (Metro, 2006). States do not get back exactly what they put in, some get less and some get more, therefore geographic equity is not realized. Others might argue that equity results when all people receive the same amount of assistance or subsidy regardless of their location or economic situation. Some claim that the distribution of resources should be done with respect to the needs of various groups. The idea of transit equity is most closely aligned with the latter. Garret and Taylor (1999) open their paper Reconsidering Social Equity in Public Transit with the claim that, “in the United States [transit] has become first and foremost a social service.” We agree with this claim, and submit that given current policies there is little prospect that this role of transit will change significantly. Garret and Taylor go on to discuss why despite intentions to deal with the above referenced problems, federal and local policies toward the finance of transit continue to be problematic. Subsidy formulas for the transit government heavily weight (almost 60 percent) service area coverage and capital expenses, rather than ridership. This means an agency could get more money simply by increasing service area size, almost without regard for the amount of people who are actually moved. In addition, capital expenses tend to be related with rail transit which studies have shown serves fewer trips than bus, and on average a wealthier constituency. Metro’s local investment decisions are troubling because they have opted to invest in attempting to attract choice riders as opposed to improving service for the majority of its patrons. Once again, this has been done in response to the belief that this is a desirable way to alleviate environmental ills and congestion. It is important to remember that bus riders without access to other transit modes are usually not part of a strong political constituency, meaning that competing interests are more likely to be heard and acted on without any actual analyses of whether certain investments provide their stated benefits. The importance of Garret and Taylor’s article lies in its ability to clearly identify changing policy goals and the changing demographics of transit use. With this dynamic in place it is possible to try and define a framework of our analysis, which can be termed transit equity. This is a qualitative measure that we define as the presence of policies that seek to ensure that transit investments, systems, improvements, and benefits are directed toward those who are most in need of public transit services. TRANSIT AND HOUSING DEVELOPMENTS: Challenges and Opportunities for South Los Angeles Page 5-10 5.3 INVESTMENT POLICIES, POLITICAL REALITIES, AND TRANSIT RIDERSHIP IN LOS ANGELES From 1950 to 1970 there was growth in transportation investments, mainly in the construction of the highway system. At the time there was a commitment primarily to the construction of roads and highways. In fact it was during this time that the 110 and 10 freeways were routed near South Los Angeles, in some ways acting as a “buffer” by separating minority and white communities. While much of this system was being completed into the 60s and 70s there were several factors at work which ultimately limited the ability of transit agencies to accomplish their original proposals within the time and budget allotted (Taylor, 1995). The construction of freeways had negative impacts on low-income communities of color. Freeways were opposed on the basis that while they provided benefits to users of the transit system, the costs of this activity (construction and use of freeways) disproportionately affected lowincome communities of color. Rather than adopting the narrowly conceived rationales of highway engineers whose goal it was to move vehicles and people from point A to point B, planners became aware of the costs to local residents. Completed construction of freeways, and subsequent use by autos and trucks, has increased the negative effects of these investments on nearby residents. Thus these impacts have been felt during construction and during the operation of freeways. Some of the most pronounced negative impacts include displacement, pollution, noise, and aesthetic impacts. Local opposition increased the environmental and planning costs of construction. Transit agencies were required to invest more money in mitigation, while construction costs increased due to the effects of improved highway design, inflation (reduced purchasing power of gas tax and other transit fund sources), and increased material and labor costs (high demand for goods and labor) (Taylor, 1995). Given the context of increasing costs, large construction projects on the horizon, and diminishing revenue, highway construction experienced a substantial decline prior to the decision of Governor Jerry Brown and CalTrans Director Adriana Giancurto to embark on a policy of multi-modal transit systems (Taylor, 1995). This practically worked itself out in the following way: • • • The 50s saw widespread support for construction projects and the budget seemed to account for such proposals. The 60s and 70s saw an increase in opposition to freeways in conjunction with increasing costs of construction, expansion of program commitments, and the diminishing buying power of revenue from the federal government and gas taxes. Subsequently, transit agencies were forced to scale down projects and/or extend the timeline for completion so that annual budgets could lead to an eventual completion of such projects. TRANSIT AND HOUSING DEVELOPMENTS: Challenges and Opportunities for South Los Angeles Page 5-11 In the 70s when construction of California highways slowed significantly due to financial uncertainty, many faulted Governor Brown and Giancurto for intentionally shifting policy to favor multi-modal transit development, rather than recognizing funds had been falling short before any such policy had been developed. Today, many municipalities are competing for state and federal assistance to complete their transit projects. With limited funds available, a common strategy is for agencies to tout the many benefits of their projects and under report monetary costs (Hess and Lombardi, 2005; Wachs, 1985). Most often agencies in fairly large Metropolitan areas will research the potential for rail and claim that it will help to alleviate congestion, reduce emissions, and attract substantial ridership at a relatively low cost. The research done by Martin Wachs (1985) documents the exaggeration of benefits and the under-pricing of large infrastructure projects to get approvals and monetary assistance from government agencies. Following much in the style of Robert Moses in the Power Broker, once funds are committed to begin, agencies will over time receive the funds needed to complete projects, although initial information may not have been entirely truthful. Furthermore, many transit scholars agree on several points related to these claims. Significant increases in current transit ridership would provide negligible reductions in emissions or congestion (Hess and Lombardi, 2005; Giuliano 2005; Garret and Taylor 1999). Most trips made by low-income minorities today in urban areas are made by automobile and they tend to take shorter trips whether on transit or auto because of increased costs of travel (Giuliano, 2005). Political concerns regarding pollution and a public reluctance to construct more urban freeway has resulted in policies that are aimed at attracting wealthier automobile users to public transit. Studies that have researched the amount of subsidies going to bus, subway, and commuter rail have consistently found over the last 25 years, that the least subsidies have gone to the modes where the highest proportion of riders are poor, elderly, minorities, and women (Garret and Taylor, 1999). Many of the subsidies provided by the federal government and state have ignored whether or not the money provided actually resulted in the predicted benefits. In fact, one of the most pronounced biases in federal funding of transit is towards capital as opposed to operating expenses. Capital expenses relate to machinery, goods, and vehicles while operating expenses are closely tied to compensation, wages, and benefits. There are a couple of reasons this is the case. One is that there is a belief by the federal government that allotting money for capital expenses is more efficient because if local agencies have to cover their own operating expenses there is a belief they will do it more efficiently. Secondly, capital expenses tend to be large one-time purchases, unlike salaries, which are paid regularly. It is the impression of the government that by keeping capital funds in accounts they can accrue interest, thereby reducing the amount of money that is collected from taxpayers to repay the funds (Taylor and Samples, 2002). TRANSIT AND HOUSING DEVELOPMENTS: Challenges and Opportunities for South Los Angeles Page 5-12 Another reason that agencies like to promote large capital projects like rail is the belief that it is an effective tool for job creation and economic development. The labor intensive projects are thought to create jobs in construction and other technical service trades. In addition, it is thought that people working in the area will spend their money in the area, providing a boost for local economic businesses. While this may be the case, it is also true that local businesses suffer great disruption from such projects as travel in the area becomes more difficult during construction. One only need drive up Alameda Street towards Union Station to get a glimpse of the disruption that the construction of rail can cause. What is interesting is that some research suggests that the economic benefits to an area may actually be greater from providing funding to operating expenditures instead of capital expenditures. Taylor and Samples (2002) find that, in terms of employment, operating subsidies tend to create greater economic benefits than capital subsidies. Capital subsidies may not go toward the construction of new projects, and those working on the project may not be from the area. They find that employee compensation tends to have a greater economic multiplier effect than various other expenditures. Thus we have a climate in which investment in rail and capital expenditures is favored for environmental, economic, and political reasons. Meanwhile research suggests that such trends disproportionately benefit wealthier choice riders as opposed to the greatest number of transit patrons who tend to be low-income, minorities, women, and the elderly. There is no doubt that if you were to board any of the rail lines in Los Angeles you would find many of those patrons who characteristically use the bus. The point is not that transit-dependents use only the bus. The issue is that if Metro seeks to increase ridership, reduce congestion, and help reduce emissions there are many other cost-effective and equitable ways to do it, for the same amount, if not less. As a quick and easy example consider the following statistic provided by Dr. Taylor in a recent lecture: in Los Angeles $128.1 million in operating costs on the Blue Line moved 11.3 million passengers, while for the exact same amount of operating costs, 183.6 million passengers used Metro’s 17 busiest bus lines (Taylor “Fares in Public Transit” Lecture, 3/14/07). 5.4 METRO AND THE ROW The tension between transit agencies, local residents, and patrons is not new. Whether it is the construction of freeways, rail, or the provision of service, it is often the case that a group is not pleased with the actions of Metro. Local residents in any area usually oppose the construction of rail or roads nearby on the basis that it will disrupt their community, create unsafe situations, or increase the amount of negative externalities that neighborhoods are forced to deal with. On the other hand, patrons of Metro have often criticized their practices, most notably resulting in the consent decree between Metro and the Bus Rider’s Union (BRU). The BRU took Metro to court arguing that Metro’s policies violated the civil rights of bus riders as fares and future projects focused on improving rail service while very little money was being used to improve transit or provide a relief in fares. The BRU prevailed in court and as a result the consent decree was born. TRANSIT AND HOUSING DEVELOPMENTS: Challenges and Opportunities for South Los Angeles Page 5-13 Some might argue that local residents have little reason to oppose development on the ROW. Since it would be rail so there would be little in the way of pollution or auto congestion, and some stations would be put in their neighborhood improving mobility and accessibility, thereby reducing the cost of travel to many residents. Whether or not this is the case seems largely irrelevant from the perspective that many wealthier communities have been able to forego the benefits of local transit options and improved accessibility in favor of a peaceful and harmonious residential neighborhood. Does this community have less of a right to make that decision than other communities? Phrased another way, does the fact that this community is comprised of low-income minorities mean that they lack the political clout, or economic and organizational resources to have their claims heard on equal terms? We believe the answer is NO! As mentioned earlier, the Connector Study released late in 2006 asserts that the potential value of the ROW for future use is too great for them to sell or lease the land for the development of permanent structures or those that might prevent future use by Metro. They arrive at this conclusion in their study by evaluating alternative uses for the ROW and alternative alignments of the ROW that make no or partial use of the ROW. The alternatives include development of the ROW geared toward pedestrian travel, bus travel, and rail travel. These three options are compared based on the benefits to accessibility, compatibility with revitalization, and safety (Metro, 2006). In this initial screening portion of the report they make some questionable findings. For instance a busway along the ROW and Jefferson Boulevard is found to create safety concerns. However, the same report determines that at-grade rail along the exact same path does not create any safety concerns. It also finds that a busway along the same path as rail would provide minimal travel time improvements whereas rail would provide a considerably greater improvement in travel time. From this initial screening, which does not provide a written justification, but rather a matrix with boxes marked off, only two rail options are carried forward. Thus, Metro has already determined that only rail is acceptable based on their criteria (Table 5-1). TRANSIT AND HOUSING DEVELOPMENTS: Challenges and Opportunities for South Los Angeles Page 5-14 Table 5-1 Evaluation of Alternatives with Initial Screening Criteria Alternative Minimal Travel Incompatible Safety Carried Time with Concerns Forward for Improvement Revitalization Further Evaluation Pedestrian/Bicycle P-1: Pedestrian/Bicycle X X Path via ROW Busway B-1: At-Grade X X X Bus via ROW B-2: At-Grade Bus via ROW and X X Jefferson Blvd. Rail R-1: At-Grade Rail via ROW X X between Jefferson and Flower R-2: : At-Grade Rail via ROW and X Jefferson Blvd R-3: : Rail via ROW with X Below-Grade Segment West of Jefferson Blvd. Source: Metro At this point they proceed to evaluate various alternatives for the alignments (routes) that such a rail system might follow. The basic goal of this connector is to provide an eastwest connection between the Blue Line to the east and the Exposition Line (under construction on Exposition south of USC) to the west of the connector. Without this connector the transfer could be made by taking the Blue Line to the 7th Street/Metro Center station, and taking the Exposition line south to the University of Southern California (USC) where it will eventually head west to Culver City (Figure 5-6). There are other options for Metro such as using an east-west connection along other corridors such as Slauson Street or Vernon Avenue. In this case the rail would be near major streets which accommodate retail and commercial uses that could benefit from increased TRANSIT AND HOUSING DEVELOPMENTS: Challenges and Opportunities for South Los Angeles Page 5-15 customer traffic as opposed to the residential neighborhood that currently exists along the ROW. Figure 5-6 Proposed Expo Line and Existing Rail in South Los Angeles Source: Metro Metro is open to proposals for development along the portion of the ROW near 31st Street and Trinity Street so long that the physical profile of the development does not prevent future construction and operation of a future light rail project. Metro also has Right of Ways Preservation Guidelines that govern what may be done with agency property if it is not being utilized by Metro. The guidelines are meant to provide staff with direction on how requests from nearby residents and land owners for converting agency property may be handled. The stated goal of the guidelines is to balance local desires for improvement while preserving the land for future transportation uses. The guidelines basically discuss six scenarios in which requests for alterations to agency property might be requested. They are: 1) rail removal, 2) landscaping, 3) bicycle and pedestrian paths, 4) billboard removal, 5) use restrictions, and 6) grade crossings. The relevant guidelines in this instance are 1, 2, 3, and 5. The removal of tracks is prohibited unless it is to accommodate another transit use, but they can be covered with paving or dirt. Landscaping is allowed only along the perimeters so as not to interfere with the center of the ROW, and is required to be approved by Metro. Bicycle and pedestrian paths are prohibited unless it can be demonstrated that it would not interfere with the TRANSIT AND HOUSING DEVELOPMENTS: Challenges and Opportunities for South Los Angeles Page 5-16 development of a future rail project. Finally, there is a list of restricted uses which is worth quoting verbatim: Only temporary structures and convenience parking--not permanent--are permitted on rights-of-way, but structures that support community activities such as temporary churches and school buildings, public parks, recreational facilities, equestrian trails, farmers’ markets, primary parking and municipal parking lots are not (Metro, 2000; emphasis added). As a result of these restrictions, Metro has effectively pre-empted many development proposals that might come from locals. In this case a pedestrian or bike path was not particularly desirable to the community for safety reasons, however many other temporary structures are prohibited. It appears as though parking and housing are precluded on the ROW, even if the FCCLT was able to assemble a large enough piece of land. From the perspective of a potential developer, such as the FCCLT, a lease might be just as good, if not better than purchasing the land. If the land could be used for temporary structures that served community purposes it is hard to see Metro getting control back under the circumstances, specifically because the current 25-year plan does not include use of this ROW. It would be difficult for Metro to ask for the building to be razed in 2035 after a housing, educational, or community-based development had been built and patronized by local residents, whether it was intended to be temporary or permanent. A lease would be more cost effective, essentially turning a lease into a sale, without an actual purchase taking place. Although Metro’s report states that they are willing to entertain development proposals from the community, it appears that Metro’s policies significantly restrict the opportunities for development that the community is seeking. The voice of the community regarding the use of this land has been almost completely drowned out by the policies and actions of Metro. Yet Metro’s proposals and actions have been the most absurd to be seen. What Metro continues to maintain is that the community has to continue to bear the costs of this unutilized piece of land because there is a prospect that at some point in the distant future, Metro will use the land to install a rail system adjacent to their residential properties. This simply does not make any sense for the community to accept. Instead, they feel they should have some ability to make use of the land in a way they feel serves the community, even if Metro were to allow only temporary structures. The process through which Metro has arrived at the conclusions included in their report lacks transparency and a tangible element of community participation. Furthermore, their proposal prevents the community from exercising or enacting a method for them to voice what alternative types of uses could provide greater benefits. And, Metro’s policies seem to be misguided in at least two ways. First of all, investment in rail is unlikely to provide many of the stated benefits with respect to ridership increases, reductions in congestion TRANSIT AND HOUSING DEVELOPMENTS: Challenges and Opportunities for South Los Angeles Page 5-17 and pollution; and secondly, economic development. By improving bus service they could make as many gains as they are making with rail at a fraction of the cost. Second of all, their policies ignore the needs and wants of the vast majority of their patrons in hopes of increasing ridership from discretionary riders. 5.5 HOW CAN COMMUNITY MEMBERS USE THE ROW SECTION IN THEIR NEIGHBORHOOD? In order to answer this question, different alternatives and the models have been explored. Homeowners and renters to the area were surveyed and results of the surveys are included in the following section. Community activists, non-profit organizations, Metro staff and a series of writings were also consulted in the spirit of exploring the possibilities and limitations of the use of the ROW. According to Metro, No permanent structures will be allowed at grade level in the ROW section that extends from Main Street to Long Beach Boulevard due to the potential for rail construction (Metro, 2006). This information is critical for community members as these restrictions seriously limit its possible use. Furthermore, according to Metro documents, lease of the ROW should not be made for a public community use. By public community use, the Metro includes structures such as temporary churches, schoolrooms or other community buildings, park and recreational uses (Metro, 2003). As mentioned before, only temporary structures such as construction trailers, portable offices or other portable structures on concrete slabs will be allowed as the Metro is non-committal regarding long term leases on this section of the right of way because it is uncertain as to when they could need the land for transportation purposes. Survey of Residents Regarding ROW Families who live along two blocks of this neighborhood where the ROW cuts across their homes’ backyards were surveyed. Information gathering was intentionally limited to these two blocks, represented in Figure 5-3. No homes or apartment buildings exist in the rest of the blocks where the ROW cuts across the neighborhood. Nineteen of twenty families responded to two questions: 1) Has the ROW affected you and/or your family in any way, and 2) If the ROW was available to you, how would you use it? The biggest problem people noted was trespassing. They expressed great concern that trespassing endangers the safety, security and privacy of their children since trespassers – homeless people, gang members and school kids -- look into their homes through their backyard windows which are next to the ROW. The second biggest concern was that the ROW has become a dump. Residents stated that people from outside the neighborhood come to dump items in the ROW because it is not supervised. It is easy to break in and nobody seems to care about what happens there. TRANSIT AND HOUSING DEVELOPMENTS: Challenges and Opportunities for South Los Angeles Page 5-18 With respect to community use, most people said they want the ROW to be used for a community garden or park. People complained about the lack of green areas in the neighborhood and that a green area would provide children somewhere to play and exercise instead of watching television. ROW Sections and Potential for Housing Construction Metro has divided the ROW in the neighborhood segment in two sections, one section that runs from Main Street to Long Beach Boulevard to the east and the other segment that runs from Main Street to Flower Street to the west. Metro’s logic behind the ROW partition in these two segments is the future construction of the Exposition Connector which calls for the construction of at-grade rail from Main to San Pedro Streets and underground construction from Main to Flower Streets (Metro, 2006). ii Following is a discussion about two potential alternatives of community use of the ROW section that takes into consideration: 1) Metro limits imposed on community members’ proposals for housing construction and 2) People’s other aspirations for ROW use. Metro has funding available in fiscal year 2006-2007 for fencing, landscaping, and other aesthetic improvements along the ROW segment within this community (Draft Staff Report: Exposition Connector ROW). Community leaders and the FCCLT may be able to utilize these funds to fence in and improve the appearance of the ROW to prevent further trespassing and to prevent continued trash dumping in the ROW (two of the main problems which were mentioned by surveyed community members). Temporary ROW improvements in the neighborhood may have positive results and encourage other community leaders to step forward. Since neither community leaders nor the FCCLT are certain about whether or not they will be able to use the ROW for housing production and while that option is under consideration, an immediate and concrete possibility may be to temporarily alleviate the problems of trash and trespassing, while exploring a more permanent solution to the problem. 5.6 CURRENT ROW USE The following matrix offers information about current leasing, occupancy and vacancy data regarding the ROW section that runs across this neighborhood. Based on our interpretation, and consistent with Metro’s rhetoric and leasing policies, all leased out sections are temporary. To make sure that uses are temporary, Metro has made sure that all uses fall within the scope of parking or storage since their leases do not allow more permanent uses. Information in this table should be useful to those engaged in this effort as it informs them on available ROW sections throughout their community and at the same time would help them plan more objectively. TRANSIT AND HOUSING DEVELOPMENTS: Challenges and Opportunities for South Los Angeles Page 5-19 Table 5-2 Current ROW Use From To Length Classification How is it being used?* (ft) Flower Hill St. 1,540 Leased, In Use Part of this section is St. empty and the other is used by USC as parking Hill St. Broadway 650 Leased, Used as parking Vacant Broadway Main St. 280 Leased, In Use Used as parking by a Taqueria and Clothing Outlet Store Jefferson Maple 1,210 Vacant Not in use – vacant Blvd. Ave. Maple 32nd St. 200 Leased, In Use Not in use, fenced and Ave. clear Maple San Pedro 1,380 Vacant Not in use, fenced and Ave. St. vacant nd 32 St. Griffith 1,340 Leased, In Use Used for parking and to Ave. store truck containers San Pedro Naomi 1,860 Leased, Semi used – few parked St. Ave. Vacant cars and scrap metals Naomi Compton 1,880 Leased, In Use Fenced, used to store Ave. Ave. truck containers Compton Nevin 850 Vacant Not in use, not fenced Ave. Ave. and open Nevin Long 550 Vacant Same as above Ave. Beach Ave. Source: STV, Inc.; * NOTE: This column includes data collected by the author of this section. The Main to Long Beach ROW Segment Regarding the ROW section between Main Street and Long Beach Boulevard, the Metro has expressed it would be willing to lease out this section, but no permanent structures will be allowed to be built at grade level. Only temporary structures such as construction trailers, portable offices or other portable structures on concrete slabs will be allowed. Clearly, Metro guidelines for ROW use do not meet local residents’ needs, but at least provides them with funds to control the problems and improve its appearance. We consider this an important event in their efforts as it will provide them with some ability to change the ROW appearance albeit without, for the time being, having total control over how to use it. Building on the idea of community gains, the Metro is open to proposals for development above the ROW as long as the proposed development TRANSIT AND HOUSING DEVELOPMENTS: Challenges and Opportunities for South Los Angeles Page 5-20 incorporates provisions and a spatial profile that do not preclude construction and operation of a future light rail transit project (Metro, 2006). Under these circumstances, if housing is to be built in any block of this ROW section, and land surrounding the ROW is assembled, it will be acceptable to connect the building on both sides of the ROW leaving enough air clearance for trains to run underneath the building. Examples of this type of construction will be provided in a later section. The Main to Flower ROW Section In this ROW section, according to Metro, permanent structures can be built as long as site planning, building and foundation design, and construction do not preclude the development of a future underground rail alignment (Metro, 2006). The FCCLT and area residents could start negotiating with Metro on possible uses of this segment of the ROW including the construction of affordable housing or community gardens, for example. The FCCLT and area residents need to be aware that some sections within this ROW segment are leased and in use. It is also important to note that this ROW section is surrounded by industrial buildings and that no residential structures are in this area. Equally important is to think of this ROW section as the best one to assemble land on both sides of the ROW, as that will allow its use at grade level and increase the possibility of the construction of affordable housing on a more massive scale compared to the ROW section to the east of this neighborhood. 5.7 EXAMPLES OF ROW USE FOR HOUSING CONSTRUCTION Examples of ROW use for the construction of apartment buildings are provided in this section. These examples are provided here to inform the FCCLT of the role that city agencies have played in the development of each of these projects. The CRAs for the Cities of San Diego, Pasadena and Los Angeles as well as the Planning Departments for the last two cities mentioned provided valuable documents and information regarding how each of these Transportation Oriented Developments (TOD) iii were put together. Equally important were documents from the Los Angeles Metro Library which provided information on the use of city-owned land in Pasadena for the Del Mar and the Holly Apartments, and the Joint Development (JD) projects that Metro has engaged in throughout Los Angeles. The Del Mar Apartments in Pasadena This project consists of 347 apartment units, restaurants and retail space, restoration and adaptive iv reuse of the historic Santa Fe Depot (Pasadena City Council Agenda Report, May 20, 2002). The City of Pasadena played an instrumental role in the financing of this project by acquiring development rights from the Metro, and creating their own Rail Construction Authority. The City also relocated the Santa Fe Depot, and approved Tax TRANSIT AND HOUSING DEVELOPMENTS: Challenges and Opportunities for South Los Angeles Page 5-21 Increment Financing (TIF) for Urban Partners LLC to help them in the construction of this station. The City of Pasadena owned land adjacent to the project which was also made part of the Disposition Development Agreement (DDA) v between the Pasadena CRA and the developer. Figure 5-7 Del Mar Apartments, Gold Line Station in Pasadena, CA Source: Kike Velasquez Pictured above is a train entering the Del Mar apartments on Del Mar Avenue in Pasadena. The photo shows how in this particular case both the train and the apartment building share the use of the ROW; the train is able to run at grade level while the building utilizes the ROW air rights by connecting the two sections of the building above the ROW. This image is useful to portray possibilities in case the FCCLT is able to assemble land on both sides of the ROW. Figure 5-8 Cross-Section of Light Rail Development Above This sketch illustrates the dimensions of the cross section of Light Rail with Development above, provided by the METRO as a sample for developments above their right of ways. The height is 25’ while the required width is 30’ across the opening in the structure to be built and connected above the right of way. Source: STV Incorporated TRANSIT AND HOUSING DEVELOPMENTS: Challenges and Opportunities for South Los Angeles Page 5-22 The Holly Street Apartments in Pasadena This project entailed the construction of approximately 350 residential units by the Janss Corporation who won the request for proposal to develop approximately four acres of land. The project included the acquisition and rehabilitation of the Young Men’s Christian Association (YMCA) in Old Town Pasadena and the rehabilitation of the adjacent Hall of Justice on Marengo Street slated for new units of housing as the main part of the project. The developer was granted $500,000 in transportation monies for the purpose of covering verified costs of construction of the proposed tunnel over the Santa Fe ROW (California Transit Oriented Database, 2001). Funding for Holly Street Apartments came from a variety of sources including bonds, grants, tax credits, tax exemptions, multi-family bonds, and Mello-Roos. In essence, the City of Pasadena granted the developer financing and land to make the project possible. Figure 5-9 Holly Street Apartments, Gold Line Station in Pasadena, CA Source: Kike Velasquez Just as in the Del Mar Apartment complex, the building uses the ROW air rights at the same time that the train is able to use the ROW. This model could potentially be replicated in South Los Angeles area in the event that area residents and FCCLT are able to only assemble land on one side of the ROW in the neighborhood. TRANSIT AND HOUSING DEVELOPMENTS: Challenges and Opportunities for South Los Angeles Page 5-23 The San Diego Mercado Apartments This project was partially financed by The Community Redevelopment Agency of San Diego (CRASD) through the creation of a redevelopment plan for the Barrio Logan neighborhood near the center of downtown San Diego. The project included the construction of 144 units of housing for very low and low-income persons. The neighborhood has for a long time been inhabited by low-income Latino families and had for years also suffered from heavy economic disinvestment (DDA-Mercado Apartments). The CRASD selected the Metropolitan Area Advisory Committee (MAAC) as the developer for the construction of the low-income units and assisted them in acquiring a site owned by the San Diego Gas and Electric Company (SDG&E) through the exercise of its powers pursuant to the California Community Redevelopment Law, Eminent Domain Law and the Redevelopment Plan, (DDA-Mercado Apartments, 1992). Figure 5-10 Mercado Apartments- Barrio Logan, San Diego, CA Source: Smart Growth Web Site This picture shows how a section of the apartment complex runs underneath the San Diego Coronado Bay Bridge. This structure’s configuration was designed in order to take advantage of available land on both sides of the bridge. 5.8 JOINT DEVELOPMENT EXAMPLES AND OPPORTUNITIES The purpose of this section is to provide community residents and the FCCLT with basic information regarding agreements the Metro has entered into with private developers for the use of their properties for housing construction or mixed use purposes. In addition to TRANSIT AND HOUSING DEVELOPMENTS: Challenges and Opportunities for South Los Angeles Page 5-24 providing a series of Joint Development samples, this section will also include policies and guidelines the Metro has developed to control the kinds of development allowed on their properties. Joint development is a real property asset development and management program designed to secure the most appropriate private and/or public sector development on Metro-owned property at and adjacent to transit stations and corridors (Metro, 2005). The Soto Gold Line Station This project includes Metro properties adjacent to the Metro Gold Line Soto Station in East Los Angeles. This station is part of the Metro Gold Line extension and will include the development of a mixed use project that includes a childcare center, 46 units of affordable housing and a community-oriented retail center (Metro Planning and Programming, 2005). The developer for the project is the 1st and Soto LLC. As with other developments, the developer was chosen in a competitive bidding process. The Taylor Yards In this case the Metro negotiated with Taylor Yards LLC, a for-profit developer, for the development of twenty-four acres of Metro owned land located adjacent to the Metrolink Maintenance facility south of San Fernando Road and north of the Los Angeles River. The developer has designed a mixed-use development that includes 238 for-rent units of housing, 76 for-sale units and a local community service plus retail space. The development includes the set aside of five acres of Metro land for a future light rail station for the proposed Glendale Line (Metro Planning and Programming, 2005). The Santa Fe Yards The Santa Fe Yards case is different from the two previous examples because it is a land lease agreement between the Metro and Polis/McGregor Santa Fe Yards. According to Metro documents, in this case, the Metro was able to lease out this property because it did not have plans for the properties and the properties have no role in their long term plan. The developer will build between 270-414 student housing units for the Southern California Institute of Architecture (SCI-Arch) located immediately across the street from Police Division 20 and will include a retail complex. The agreement between Metro and the developer is for a 55-year initial term with two ten year options to extend the lease (Metro Santa Fe yards, 2005). Land Parcel Owned by Metro A piece of land that has permanent development potential and should be considered by the FCCLT is bounded by Jefferson Boulevard, and Broadway and Main Streets. According to Metro officials and documents, they own this land and in the future, a rail TRANSIT AND HOUSING DEVELOPMENTS: Challenges and Opportunities for South Los Angeles Page 5-25 station may be placed there. On different occasions, Metro has stated it is willing to consider long term JD proposals for this site and that it will give priority to affordable housing projects to be developed at the site (Metro, 2006). A couple of challenges the FCCLT will have to tackle on this piece of land are: 1) figuring out how to accommodate a project in this lot whose dimensions are roughly 7,000 square feet short of the minimum 40,000 square feet they seek for their developments. The lot’s dimension will restrict the number of units the FCCLT could build in each of their projects; 2) designing a building which will allow the use of ROW for future Metro rail use at the same time that the building uses the ROW air rights, vi 3) rezoning the area from commercial to residential use; and 4) negotiating with Metro officials site leasing terms as Metro tends to enter into long-term leases that fall in line with their goals and vision of their long-term transportation plans vii . We include here a site and aerial photo, as reference for community residents and for the FCCLT visualization of the physical site location. Figure 5-11 Land Parcel owned by METRO in South LA In this aerial photo you appreciate the piece of land owned by the Metro bounded by Jefferson Boulevard to the south, Broadway Street to the west and Main Street to the east where the FCCLT could potentially build affordable housing. Presently, this land is leased by a clothing outlet store and a Taqueria. Both businesses and the businesses on the south side of this ROW section utilize the ROW for parking purposes. Source: Google Earth Source: Google Earth TRANSIT AND HOUSING DEVELOPMENTS: Challenges and Opportunities for South Los Angeles Page 5-26 Figure 5-12 Taco stand in Parcel owned by METRO This is a picture of the taco stand at the southeast corner of Main Street and Jefferson Boulevard. The right of way section represented in the aerial above, runs immediately behind this taco place. Source: Kike Velasquez As discouraging as it is, and after learning about the potential this site has for a FCCLT project, we have been informed that Metro has recently renewed an “interim” 5 year lease contract with the clothing outlet store on this site which includes a legal clause to terminate it at any given time. viii This lease and to a much greater degree, the Exposition’s Authority ix plan to use the ROW section in this block for a period of five years to store building materials for the Expo-Line under construction, in practice, eliminates immediate use of the site by the FCCLT, unless negotiations are immediately developed with Metro toward that end. We believe that the minimum Metro can do to start repairing the damage they have caused to this community is to allow the FCCLT to use this site to build affordable housing. 5.9 WHAT WOULD IT TAKE TO REPLICATE THE PREVIOUS HOUSING EXAMPLES IN SOUTHEAST LOS ANGELES? A convergence of policy decisions are needed to make housing development possible in Southeast Los Angeles. These include: the ability to assemble land and rezoning from industrial to residential uses, CRALA’s use of the power of eminent domain, and the help of the Department of City Planning. The will of community residents to change current existing conditions in the neighborhood has never fallen short. An example of this effort is the battle that area residents fought against Area City Council Representative Lindsay, who, in 1987, introduced a motion in City Council to change the area’s community plan to affirm commercial and manufacturing along the Maple Avenue corridor from 23rd to TRANSIT AND HOUSING DEVELOPMENTS: Challenges and Opportunities for South Los Angeles Page 5-27 36th Street, (Harris, 1987). This example also serves as evidence of the insensitivity of city politics to residents’ longstanding needs and frustrations about their desire to change the neighborhood’s landscape. Community Plan Update and Councilmember Support to Residents’ Efforts The political will to force these changes in the neighborhood is currently present and has been attained thanks to the tenacity of area leaders and nonprofits over years. An example of this political will is the continued support that Councilwoman Jan Perry has provided NIC and area nonprofits to rezone the neighborhood from industrial to residential. To achieve this effort, and to show her support to area residents when engaging Metro staff, she has assigned her Chief of Staff Kathy Godfrey and her housing consultant and ex-Councilmember Mike Hernandez to assist residents in the effort. Furthermore, we understand that Councilwoman Perry has made a formal request to the Los Angeles Planning Department and CRA that their final industry retention x recommendations for South Los Angeles do not take precedence over the ongoing Community Plan update. Important elements to the City’s Study on Industry Retention and to the Community Plan update are: • • • The Industry Retention study has been completed and initial recommendations for the South Los Angeles area have already been made. Area residents, nonprofits, and Councilwoman Jan Perry are not pleased with the result primarily because all existing industrial zones in the area are recommended to remain as such; The Planning Department will conduct focus groups, they claim, to include community input into the write-up of the Community Plan update. When the Community Plan is complete, presentations are to be made before community groups and then a final draft is presented before council for approval. City Council has final say on approval or modifications. Councilwoman Jan Perry will have great influence in the Community Plan update content because its final version is to be approved by the entire City Council. An example of City agencies cooperation to make possible the development of housing projects in the area is the 29th Street Housing Project. This is a project under current development in the neighborhood, which could not have happened without the intervention of the CRA and Department of City Planning and Councilwoman Jan Perry. The 29th Street Housing Development The 29th Street block between San Pedro Avenue and Griffith Avenue has been targeted for rezoning from its current industrial use to residential use. According to CRA TRANSIT AND HOUSING DEVELOPMENTS: Challenges and Opportunities for South Los Angeles Page 5-28 documents, the rezoning changes will be enacted via a General Plan Amendment and Zone Change that the City Council is processing. Final approval of the new land use designation is expected to occur in June 2007 (CRA Commissioners, agreement with UHC, LA 29 L.P., 2007). To justify the rezoning, the Council office is using the argument that industrial land use is incompatible in the neighborhood, xi and this view is widely held in the community which has suffered from the presence of a toxic metal plating factory on the site, which is next door to a grammar school and surrounded by residential uses. The housing project consists of two phases. Phase A of the development project proposes the transition from industrial land use to residential uses, which is permitted by the redevelopment plan, although the change requires a general plan amendment. Phase B of the project proposes the construction of approximately 112 rental units and possibly ownership housing with support services for residents of the area (ibid). CRA documents detail that a $3.5 million loan has been approved to a limited partnership for site acquisition and predevelopment purposes (architectural services, engineering, environmental reports and legal fees). Both the City Council office and the Council District Nine Corridors South of the Santa Monica Freeway Recovery Redevelopment Project Area’s Community Advisory Committee have reviewed and support the project. CRA Redevelopment Plan for Council District Nine Corridors South of the Santa Monica Freeway–Recovery Redevelopment Project This section is a summary of the Community Redevelopment Agency of the City of Los Angeles, Redevelopment Plan for the Council District Nine Corridors South of the Santa Monica Freeway–Recovery Redevelopment Project which was adopted in December 13, 1995. The sections we include here are a summary of what we consider are the most important and relevant parts of this Recovery Plan which could play an important role in community attempts to rezone the neighborhood. Acquisition of Real Property “The Agency shall not exercise the power of eminent domain to acquire any parcel of real property within the project area for which proceedings in eminent domain have not commenced within twelve (12) years after the adoption of this plan. This time limitation may be extended only by amendment of this plan.” According to this document CRA eminent domain power end in December 2007. Industrial Uses “Areas shown on the Map xii as industrial shall be maintained, developed and used for industrial uses consistent with the community plan, as it now reads, or as it may be TRANSIT AND HOUSING DEVELOPMENTS: Challenges and Opportunities for South Los Angeles Page 5-29 amended from time to time in the future”. “The Area Community Plan is under update by the Department of City Planning and a study about industry in the area has been completed. This study will serve as a basis to recommend what industrial areas to keep as such and what areas to allow for residential rezoning.” xiii Due to this preference for retaining industrial uses, it is important to provide strong arguments that these uses are incompatible with the neighborhood. Public Street Layout, Right of Way and Easement “The air rights over public rights-of-way may be used for private uses, buildings, platforms, decks and other uses subject to agency approval and activities typically found in public rights-of-way”. This indicates that the redevelopment plan permits more intensive uses over the public right of way than those currently allowed by Metro. Incompatible Uses “No use or structure, which by reason of appearance, traffic, smoke, glare, noise, odor or similar factors that would be incompatible with the surrounding areas or structure, shall be permitted in any part of the project area.” This clause and argument is what both community members and Jan Perry’s office have utilized to request the rezoning of the area, of course with different results. But we believe that community members and the FCCLT have a good chance of succeeding by sticking to this argument and citing the rezoning for the 29th Street apartment complex. 5.10 RECOMMENDATIONS FOR THE FCCLT AND NIC Our first recommendation for FCCLT and NIC is to continue with their strategy to change the land use designations from industrial to residential in their neighborhood via the Community Plan update process. Our second recommendation is for FCCLT to consider smaller site sizes than the forty thousand square feet they have determined as necessary for housing projects to “pencil out” and remain affordable to people who earn between 30 percent and 60 percent of the Area Medium Income (AMI). (Conversation with Sandra Mc Neill, May 2007) xiv . However, one site that appears to provide a development opportunity for FCCLT is owned by Metro and is bounded by Jefferson, Broadway and Main Streets. An aerial photo of this property has been included in this paper. Negotiating a low-price long-term lease with METRO might be an alternative way to meet affordability goals. The argument for the low price would be the high price that the community has paid due to years of neighborhood neglect by Metro. Through the survey process, it was revealed that families in the area are fed up with the current status of the ROW, have good reasons, and are willing to get involved. TRANSIT AND HOUSING DEVELOPMENTS: Challenges and Opportunities for South Los Angeles Page 5-30 Finally, Metro presently has funds available for beautification and fencing of the ROW section in the neighborhood. Further research and planning could help NIC establish how to maximize the use of these funds and turning them outward, rather than simply fencing off the site. It would be worthwhile to investigate if funds could be used to erect playgrounds, parks, or child car centers that meet community needs, and to hire local residents to do the work With respect to Metro’s long-term plan, our primary recommendation is that they not build rail in this neighborhood. If Metro is, as it seems, determined to build rail rather than improve and expand existing bus service, we would recommend they consider another alignment for the rail line. While the costs to Metro might be higher, the costs to the community in terms of quality of life, property values, and safety would be substantially reduced. We believe that equitable transportation planning requires this more holistic view of costs and benefits. At the present time, it appears as though Metro is narrowly basing their decision on incurring the lowest costs possible, without considering the costs that they have imposed on the neighborhood since 1991. 5.11 CONCLUSIONS Residents in this neighborhood have come a long way in their struggle to reclaim their neighborhood. Unfortunately, over 30 years, residents continue to face many of the same issues such as incompatible land uses and insensitive planning in their community. The current political landscape has placed residents in a better position to effect zoning changes in their community. One good way to influence what these zoning changes are is by continuing to build leverage in the Community Plan update process. The greatest leverage area residents enjoy is the support of their Council representative Jan Perry who has assigned some of her senior staff to work with residents and the FCCLT. The option to build housing on top of the ROW is limited and restricted to the section that runs from Main Street to Flower Street, and even if this section were available for construction, land assemblage is needed around or along the ROW itself in order to maximize benefit and cost effectiveness. The challenge for the FCCLT is to be able to find lot sizes that meet their criteria for their projects. Of course, their ability to purchase land is also dictated by land prices, competition from developers for land in the area, and availability of desired land. It has been shown in the 29th Street example that an alignment between the community, the Council office, and a developer move Metro towards a community-serving project. . The ROW has been, and continues to be, a source of blight and unwelcome activity in South Los Angeles. While Metro has obligations to transit riders in the region, they are also obligated to act as a considerate and accountable neighbor. And, although Metro is entitled to own and manage property for transportation purposes, in this case, the prospects of a transportation use are tenuous at best. Further, the agency has TRANSIT AND HOUSING DEVELOPMENTS: Challenges and Opportunities for South Los Angeles Page 5-31 demonstrated that it is unable to responsibly maintain the site in a community context for 16 years. Finally, given all of the above, it is clear that providing opportunities for area residents to develop the right of way marginally diminishes the ability of Metro to meet its transportation commitments and would greatly benefit this community. It is time for Metro to recognize this South L.A. neighborhood as the important community that it is rather than as simply a possible route for others to pass through on their way to somewhere else. TRANSIT AND HOUSING DEVELOPMENTS: Challenges and Opportunities for South Los Angeles Page 5-32 References City of Pasadena. (1990). Disposition and Development Agreement Between the Community Development Commission and the JANSS Corporation. Pasadena, California: Donald F. McIntyre. City of San Diego Redevelopment Agency, Metropolitan Advisory Committee. (1992). Disposition and Development Agreement, Mercado Apartments. San Diego, California: Community Redevelopment Agency Los Angeles. (2007). Authorization to Execute an Acquisition and Pre-development Agreement with UHC LA 29 L.P. Los Angeles, California: Cecilia Estolano. Garrett, M., & Taylor, B. (1999). Reconsidering Social Equity in Public Transit. Berkeley Planning Journal, 13, 6-27. Giuliano, Genevieve. 2005. “Low Income, Public Transit, and Mobility, “ Journal of the Transportation Research Board, 1927: 63-70. Harris, Scott, “A Bitter Battle on Home Turf: Garment Plant is Not Welcome.” Los Angeles Times October 25, 1987 Hess, Daniel Baldwin and Peter A. Lombardi. 2005. Governmental Subsidies for Public Transit: History, Current Issues, and Recent Evidence, Public Works Management & Policy, 10(2): 138-156. Levinson, David. 2002. Identifying Winners and Losers in Transportation, Journal of the Transportation Research Board, 1812: 179-185. Leavitt, Jacqueline. (1997). Charlotta A. Bass, The California Eagle, and Black Settlement in Los Angeles. In June Manning Thomas and Marsha Ritzdorf (Eds.), Urban Planning and the African American Community: In the Shadows (pp. 167-186). Thousand Oaks, CA: Sage Publications. Los Angeles County Metropolitan Transportation Authority. (2006). Authorize the execution of an exclusive right to negotiate for the development of Metro properties adjacent to the Metro Gold Line 1st and Soto Station. Los Angeles, California. Los Angeles County Metropolitan Transportation Agency. (2006). Exposition connector study, right-of-way alternative evaluation and development strategy. Presentation for Councilmember Perry and Community Members. Los Angeles, California: STV Incorporated. TRANSIT AND HOUSING DEVELOPMENTS: Challenges and Opportunities for South Los Angeles Page 5-33 Los Angeles County Metropolitan Transportation Agency. (2006). Long Beach Blue Line and Exposition Line connector study. Los Angeles, California: STV Incorporated. Los Angeles County Metropolitan Transportation Authority. (2000). Rights-of-way preservation guidelines. Los Angeles, California. Los Angeles County Metropolitan Transportation Authority. (2003). Gold Line Ownership and Operational Control of the Transit Parking at Del Mar Station. Board of Directors Meeting. Los Angeles, California, 2003. Los Angeles County Metropolitan Transportation Authority. Joint Development Policies and Procedures. Los Angeles, California, 2005. Los Angeles County Metropolitan Transportation Authority. Draft Staff Report: Exposition Connector Right-of-Way. Los Angeles, California, 2007. Los Angeles County Metropolitan Transportation Authority. Santa Fe Yards (Division 20) Joint Development, Report from Planning and Programming Committee. Los Angeles, California, 2005. Neighbors for an Improved Community (2001). Comments to Draft EIS/EIR for the MidCity/Westside Transit Corridor Project. Los Angeles, California: Neighbors for an Improved Community. No Author. (1987, November 6). Parishioners Defend Homes, The Tidings, 4. Pasadena Community Development Commission. (2002). Transfer of Old Pasadena Tax Increment for the Del Mar Station Public Plaza, Agenda Report. Pasadena, California. City Manager. Redevelopment Agency of the City of Los Angeles. (1995). Plan for the Council District Nine Corridors South of the Santa Monica Freeway Recovery Redevelopment Project. Los Angeles, California: Community Redevelopment Agency. Southeast Los Angeles Community Stake Holders. (2007) Letter to Gail Goldberg, Department of City Planning and Cecilia Estolano Chief Executive Officer Community Redevelopment Agency. Los Angeles, California: Figueroa Corridor Community Land Trust. Taylor, Brian. 1995. Public Perceptions, Fiscal Realities, and Freeway Planning: The California Case, Journal of the American Planning Association, 61(1): 43-56. TRANSIT AND HOUSING DEVELOPMENTS: Challenges and Opportunities for South Los Angeles Page 5-34 Taylor, Brian. Fares in Public Transit. Urban Planning 257. UCLA, March 14, 2007 Taylor, Brian D. and Kelly Samples. 2002. Jobs, Jobs, Jobs: Political Perceptions, Economic Reality, and Capital Bias in U.S. Transit Subsidy Policy, Public Works Management & Policy Journal, 6(4): 250-263. Wachs, Martin 1989. U.S. Transit Subsidy Policy: In Need of Reform, Science, 244: 1545-1549. Wachs, Martin (1985). Ethical Dilemmas in Forecasting for Public Policy, Ethics in Planning, Martin Wachs, Editor. New Brunswick, NJ: Center for Urban Policy Research. Pages 246-258. TRANSIT AND HOUSING DEVELOPMENTS: Challenges and Opportunities for South Los Angeles Page 5-35 End Notes: ii A discussion about this connector and politics behind it has been addressed in the previous section of this chapter. iii An economic development project adjacent to a transportation mode; light or heavy rail, or bus station hub iv The conversion of old industrial buildings or hotels into apartments buildings or lofts v Legal documents between the City and developer that detail expectations, obligations and responsibilities between parties to the project vi Pictures of possible design are those of the Del Mar and Holly Street apartments in Pasadena addressed in a previous section in this chapter vii So far, METRO staff has not been able to tell me the number of years area residents would be able to lease the their land for, but mentioned that that is how they operate and mentioned as sample the leases for their properties in the different Metro red line stations in Hollywood and along Wilshire Boulevard. In this paper I also elaborate on other leasing examples on the Taylor and Santa Fe Yards and on the Soto and 1st Street. viii Therman Hodgest, METRO staff in the Real State Records Management section. He is the point person for leases agreements in the SELA area. ix Legal entity created for the construction of the Metro extension to the west side of the City- commonly non as Exposition line or Expo-Line. x The City of Los Angeles mayor’s office commissioned the Planning Department to conduct an study about industry retention in the City of Los Angeles. CRALA, financed this study with the condition that they will also have a say in the final recommendations as to what to retain as industry and what to rezone for housing construction. xi Not only is this argument the same argument local residents and the FCCLT have used to request rezoning in the area, but they have also been dismissed by the same public entities that are now using it to rezone the block in question. xii Map is included as amendment at the end of this document xiii These asseverations where made by both Gail Goldberg – and Cecilia Estolano new heads of the Department of City Planning and the Community Redevelopment Agency respectively in separate public presentation at the UCLA School of Public Affairs on April 25 – 26, 2007 xiv Sandra Mc Neill is the Planning Director for the FCCLT efforts in the FCCEJ area. TRANSIT AND HOUSING DEVELOPMENTS: Challenges and Opportunities for South Los Angeles Page 5-36 Chapter 6 THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Lydia Avila-Hernandez Lidia Castelo Andrea Contreras Steve Díaz Colleen Flynn Sumaiya Islam Alison Dickson Quesada Nancy Villaseñor Paul Vizcaino THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-1 EXECUTIVE SUMMARY Tenants are facing challenging times in the City of Los Angeles. Evictions, slum housing, and skyrocketing rents have become a common part of everyday life. A tenant’s Right to the City is quickly eroding as more room is being made for new types of residents. These new residents often find themselves living luxurious lifestyles in the same buildings that once housed the urban poor. As the city continues to transform, there is a pressing need for a solution that will allow tenants to live in communities that they have called home for years. The following report offers such a solution. The main goal of this chapter is to examine the feasibility of creating a citywide tenants union that will address the problems facing tenants. There are already several nonprofit community organizations that have a tenant base or are organizing tenants as part of their missions. These individual organizations find themselves struggling to improve the lives of tenants. Meanwhile, proponents of property rights continue to profit at the expense of the landless. A tenants union presents a real possibility for organizations to join forces and combat the selfish interests that drive gentrification and other ills affecting tenants. The chapter is divided into two parts. The first part establishes the context for a tenants union. A brief problem statement is followed by an analysis of tenant demographics including income, race, and location within the City. Next is a discussion of the political landscape that examines how tenants’ rights have been diminished. Included is a historical account of tenant organizing in Los Angeles and Santa Monica, and a comparison with today’s organizing. Lastly, Los Angeles organizations that engage in tenant issues are examined as existing resources that can jump start a tenants union. The second half of the chapter looks at what is possible through the creation of a tenants union. The best practices section is informed by the New Jersey Tenants Organization as well as by a labor historian’s knowledge of labor unions and their organizational structure. Our vision of what the tenants union might look like is also enlightened by the responses received from tenants who responded to a survey and those who participated in a focus group. The report ends with a summary of interviews held with executive directors of existing organizations as they describe some of the challenges that will be faced in creating a union. This report finds that a citywide tenants union is within reach and the time is right for it. We found that a good number of tenants are already affiliated with a tenants’ rights organization. The ones we spoke with welcome a tenants union and are eager to be a part of the process. The executive directors brought us back to reality by reminding us of the challenges ahead, but we maintain that a tenants union is necessary and long overdue. THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-2 6.1 INTRODUCTION Despite their claim to an overwhelming majority of the City’s population, Los Angeles tenants are losing the remaining vestiges of the political power gained during the movement for rent control in the 1970s. Attacks on rent control and other tenant protections, an organized and well funded opposition, fragmentation amongst tenant organizations, and lack of a cohesive tenant movement, all serve to fuel the winning battle landlords and developers are waging against Los Angeles tenants. Key indicators of tenants’ decline in power can be characterized by skyrocketing rates of evictions, substantial loss of affordable apartments, and widespread slum housing conditions. The Legal Aid Foundation of Los Angeles (LAFLA) cites the filing of over 80,000 evictions in Los Angeles County each year, with many taking place in the City of Los Angeles (LAFLA, 2007). Evicted individuals and families have fewer alternatives for housing they can afford. The Los Angeles Housing Department (LAHD) records show that approximately 9,000 rent-controlled units have been lost since early 2005, and over 11,000 housing units have been lost since 2001 (SCANPH, 2006; Cleeland, 2006). The loss of housing accessible to working families will only increase as the LAHD estimates that 51 percent of all affordable units (households earning up to 80 percent of the Area Median Income, AMI) will revert to market rates by 2010 (SCANPH, 2006). The housing available to low-income families and individuals in Los Angeles is often sub-standard and hazardous. The 1996 Blue Ribbon Citizens’ Committee on Slum Housing documented that over 11 percent of the City’s housing (approximately 144,000 units) were without running water or heat, had dangerous wiring and rodent infestation, or had other health hazards present (Bet Tzedek, 2007). Working families and individuals who rent in Los Angeles continue to face dwindling rights to safe and accessible housing. Political and economic power has been consolidated into the hands of individuals and corporations who seek to change the face and character of Los Angeles neighborhoods permanently. What we are talking about is not an affordable housing crisis – it is an all out attack on the poor, working, and middle class segments of Los Angeles’s population. Such an assault demands that equally strident actions be taken by organized tenants across the City. As primary stakeholders in Los Angeles housing and economic policy initiatives, tenants require a seat at the table and are in desperate need of a massive and organized body to fight for their agenda. The creation of a citywide tenants union is a necessary and logical undertaking in the ongoing fight for tenants’ rights and economic justice. In the quest to achieve their Right to the City, i Los Angeles tenants and the community organizations that support them continue to struggle as displacement abounds and working families leave the City in droves. The Right to the City framework recognizes the human rights of those who do not own property. It calls for “equitable usufruct” ii , meaning that through the power of the collective, the protection of one’s rights means the protection of everyone’s rights, especially the “vulnerable and disfavored,” which in Los THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-3 Angeles are those who rent (Miami Workers Center et al, n.d.). The Right to the City establishes the right to a minimum standard of living for all of the City’s dwellers. This standard shapes the process and product of urban planning. In the City of Los Angeles, we have documented that those currently in power see property rights as more important than human rights. Slum housing reflects the fact that building owners’ rights are enforced much more than tenants’ rights, and that housing is seen as a commodity, not as a human right. Therefore, tenants and organizers must shift the political and economic winds of the City from capital to the inhabitant in order to effectively enforce the rights of tenants. It is only by collectivizing our power as tenants that we can accomplish this and realize our right to rent and live in Los Angeles. 6.2 TENANT DEMOGRAPHICS Who are the Tenants? In general, the City’s population is approximately 4 million, consisting of over 800,000 families (DiMassa, 2007; U.S. Census Bureau, 2000). Los Angeles has a large Latino population, with 46.5 percent of the population identifying as Hispanic or Latino of any race (U.S. Census Bureau, 2000). Housing data sources confirm that renters comprise the majority of the City’s population. While the U.S. Census Bureau estimates the percentage of renters in 2005 to be about 60 percent, Mercedes Marquez, Director of the Los Angeles Housing Department (LAHD) stated in an April 2007 City Council meeting that the number of renters in Los Angeles was in fact 68 percent (A. Quesada, personal communication, April 17, 2007). This majority promises to increase as the population of the City increases (SCANPH, 2006). Poverty among Los Angeles Tenants According to the 2005 American Community Survey of the U.S. Census Bureau, 87 percent of Angelino households in poverty are occupied by tenants. iii A study by UCLA faculty and the United Way found that more than one in four people in Los Angeles County live in a poor household, which the Census Bureau defines as an income of $30,000 or less for a family of four (Lee, 2007). Figure 6-1 shows that about one in three people in metropolitan Los Angeles live in poverty. These households paid between 52 percent to 73 percent of their income for housing in 1999 (Weingart Center, 2001). THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-4 Figure 6-1 Poverty in Los Angeles Poverty Rate in Each Region of LA County (1997) Entire County South Bay/Harbor East South West Metro San Gabriel Valley San Fernando Valley Antelope Valley 22.1% 19.2% 21.4% 39.9% 15.5% 32.7% 18.8% 16.5% 15.4% Source: Weingart Center Institute for the Study of Homelessness and Poverty, July 2001 Income Levels of Residents Since income and housing are closely correlated, it is important to understand where tenants lie in terms of finances. Figure 6-2 shows the household income for owneroccupied and renter-occupied households between 2004 and 2005. Those in the lower levels of the income bracket are overwhelmingly tenants. According to the 2005 American Community Survey, the estimated median household income for the City of Los Angeles in 2005 was $42,664 a year (U.S. Census Bureau, 2005). The graph in Figure 6-2 indicates that more than half (55 percent) of the tenants have household incomes of $34,999 or less, which is well below the median household income. When compared to homeowners, less than a quarter (22 percent) fall into this lower income bracket. Households that are better off tend to be owner-occupied. While tenants still outnumber owners in the $50,000 to $74,999 income bracket, most of the households with incomes above that are owner-occupied households. Of those earning above $75,000 annually, less than a third (31 percent) are tenants. In the $150,000 and above category, only 16 percent are renter households. The chart shows that as income rises, tenancy drops dramatically (ACS 2005). THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-5 Figure 6-2 Household Income Between 2004-2005 Population 140,000 120,000 100,000 80,000 Owner 60,000 40,000 Renter 150,000 or more 100,000 to 149,999 75,000 to 99,999 50,000 to 74,999 35,000 to 49,999 25,000 to 34,999 20,000 to 24,999 15,000 to 19,999 10,000 to 14,999 5,000 to 9,999 less than 5,000 20,000 0 Household Income Source: 2005 American Community Survey, U.S. Census Bureau To summarize, tenants tend to earn lower incomes than homeowners. Those households with extremely low incomes are overwhelmingly tenant households. At the other extreme, those households with very high household incomes tend to be owner occupied. However, those towards the middle also tend to have high percentages of tenants. Residents in the middle income brackets cannot afford to buy their own homes under current market rate housing prices. Tenant Ethnicity We wanted to explore how tenants are distributed in terms of race. This information allows us to understand our target population better. It is important to note that this data has limitations. The numbers only reflect the racial identity of persons identified as householders and does not account for the race or ethnicity of other members of the household. Householder refers to the person who is the head of the household, or the main bread winner. Assuming that most householders reflect the race of the other residents of a household, the numbers are very informative. While it is not clear to what extent this assumption is true, the data can be used to draw general conclusions about race and households in Los Angeles. Figure 6-3 shows the breakdown of renter-occupied households by race of the householder. While no racial group makes up the majority of renter households, Latinos represent the highest percentage of renters at just over 40 percent of all households. Less than a third of renter households are occupied by a white householder, followed by black THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-6 and Asian householders at a comparable 14 and 13 percent. American Indians and those who identify as “Other” make up a very small share of these households. Figure 6-3 Percent Renter Occupied Households by Race of Householder 1% 14% 0.48% 13% 42% Black American Indian Asian White 30% Latino Other Source: 2005 American Community Survey, U.S. Census Bureau Figure 6-4 looks at the same race data a little differently. It compares renter versus owner-occupied households for each racial category. For each racial group, the majority of households are renters. Latinos and “Others” reflect the greatest disparity between tenancy and homeownership. Renter households make up 71 and 73 percent of these groups, respectively. The white population is the only one where owners outnumber renters. However, the difference is not great. Almost half (47 percent) of white households are renter households. THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-7 Total Figure 6-4 Occupied Housing Units by Race of Householder 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 Renter Owner Black American Indian Asian White Latino Other Race Source: 2005 American Community Survey, U.S. Census Bureau The data provided in this section is useful for efforts to organize a citywide tenants union. If a union is successful in achieving positive results for tenants, it is not just the poor residents of Los Angeles who will benefit. The numbers show that even among the middle-income households there are a high number of tenants; this is less true of wealthy households. A tenants union can help better the lives of all Angelinos by ensuring that the majority of its residents have a Right to the City through decent and safe housing. Where Tenants Live Map 6-1 illustrates tenant distribution in the City of Los Angeles by 2000 Census tracts. The darkest shades represent areas with the highest concentration of tenants which include Downtown Los Angeles, Pico-Union, Koreatown, East Los Angeles, and the Westlake districts. Tenants compose between 81 to 100 percent of households in these neighborhoods. There are also sporadic tracts throughout the San Fernando Valley with just as high concentrations. South Los Angeles, Mid-City, and other portions of the San Fernando Valley also share a high percentage of tenant households (between 61 and 80 percent). The Census tracts in light orange and yellow represent low percentages of tenant households. These areas are most notable in the outskirts of The Valley and in the center of the map where the Santa Monica Mountains and the Topanga State Park are located. The dot density map (Map 6-2) shows that very few people live in these areas. According to the Census data, these hillside areas tend to be populated by owner-occupied households. THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-8 Map 6-1 Percent Renter-Occupied Housing Source: ESRI Tiger/Line Census 2000 THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-9 Map 6-2 Population Density Source: ESRI Tiger/Line Data, Census 6.3 CURRENT LANDSCAPE It is essential to have knowledge of the current political climate in the City of Los Angeles in order to formulate a proper approach in creating a tenants union. Since organizing does not occur in a vacuum, it is imperative that we understand who the stakeholders are, what interests they hold, and to what extent they influence politics and the quality of life of tenants. The following topics are covered in this section: the legal challenges tenants face, a power analysis of key players in Los Angeles, and the organized opposition that seeks to dismantle existing tenant protections. Legal Challenges The Ellis Act and the Costa-Hawkins Rental Housing Act represent two of the most detrimental actions against tenant protections. Their effects have left a permanent scar on the tenant rights movement. In Nash v. City of Santa Monica (1984), the California Supreme Court decided that property owners do not have a right to evict their tenants if they chose to go out of the landlording business (37 Cal. 3d 97). The court reasoned that THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-10 a landlord could go out of business by selling their building but this did not require that existing tenants be evicted. This ruling was overturned the following year when the California Legislature adopted the Ellis Act (CA Govt. Code § 7060-7060.7) to allow longtime landlords to evict tenants and go out of business. It was believed that landlords should not be forced to stay in business if they did not wish to and the Ellis Act made sure property owners had this option. However, the Ellis Act is widely abused today by land speculators who purchase apartment buildings, evict the tenants, and convert the building into condominiums that are sold at market rate. As a result, property owners walk away with enormous windfalls while evicted tenants are forced to find new homes (Gullickson, 2005). The term “Ellised out” is commonly applied to describe what tenants are experiencing. Tenants are being “Ellised out” of their homes throughout Los Angeles and other gentrifying cities in California with no end to condominium conversions in sight. The Costa-Hawkins Rental Housing Act (CA Civil Code § 1954.50-1954.535) presents a different challenge for tenants’ rights. It represented a major victory for landlords when it was passed in 1995 by California legislators. Before Costa-Hawkins, a local jurisdiction could control the amount of rent a landlord could charge for a vacant unit, especially in conjunction with rent control regulations. Costa-Hawkins ended this practice by allowing landlords to set initial rents and adjust (i.e. raise) rents as tenants move out. This is often referred to as vacancy decontrol, a measure that was already in place in Los Angeles but did not exist in other cities with rent control. With vacancy decontrol, landlords have an incentive to evict existing tenants in order to hike up the rents for newer tenants in rent controlled cities. Costa Hawkins also placed restrictions on housing that could be regulated under local rent control ordinances. With the passage of this act, housing constructed after 1995 is exempt from rent control and new housing that is already exempt from a local rent control law prior to February 1, 1995 is required to remain exempt. This effectively prohibited any new jurisdictions in California from passing rent control ordinances and disallowed Los Angeles from extending rent control to any rental units that had been constructed after 1978. This has resulted in the disappearance of affordable units as older, rent stabilized buildings are converted into new lofts and condominiums. Power Analysis The power analysis is an effective tool in identifying key stakeholders, institutions, and power holders involved in a particular issue. The analysis engages participants in a discussion of where these individuals fall within the political spectrum. Participants are also asked to determine to what to extent the players are able to influence the political landscape with their power. On March 7, 2007, the Community Scholars class participated in a power analysis of the tenants’ rights political landscape. We used this tool in order to gauge the potential THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-11 support and opposition for a campaign to form a citywide tenants union. Some participants drew from their experiences as tenant organizers for this exercise. During the exercise, a chart was placed on the wall to represent the political playing field (see Figure 6-5). On the far left of the chart was our agenda of protecting and expanding tenants rights at the state and local level. The opposing agenda of property rights was placed at the far right. A scale of one through ten ran down one side and measured the political strength of key players with ten at the top, signifying strong “major decision-making power or influence” and one at the bottom, signifying “not on the radar screen.” The problems tenants face are represented in the blue clouds. Various communities are embodied in red ovals. The following shows the placement of these key figures and institutions: Figure 6-5 Power Analysis Tenant Rights Gentrification Evictions Lack of quality jobs 10 Active participant in Decision Making Homelessness Poverty Lack of Healthcare Criminalization of Poverty Property Rights Lack of legal status Lack of affordable hsg Lack of quality edcuation Lack of political power Ellis/ Costa Immig. Policy Mayor Condo Conv. City Council Wesso Parks 8 CRA Garcetti Active participant in Decision Making AAGLA Perry Mercedes Marquez RS Huizar Safer Cities CO. Sups LAHD Rosen-dahl Reyes Eminent Prop 90 Domain folks Realtors Assoc.. 4 Taken into Account 3 Can get Attention 2 Not on Radar Call to Action Inquilinos Unidos SAJE Aff. Hsg Preservation CES Healthy Homes LTSC B&S HACLA Esperanza CDC ELACC LACAN Union de Vecinos Collective L.A. So. Asian SPACE Voice/PICO Network POWER Coalition LA Tenants Die Hard Dept of Planning Active Support HO Assoc. Homeless Youth Inclined to Support Chambers of Comm. Neigh. Councils. Mom&Pop Landlords Yuppie Seniors Inclined to Support LAPD Homeowners Active Support Die Hard We would like to acknowledge that the power analysis is an analytical tool used to gage the political climate around a particular issue within a certain political context. It is possible, and often desired that players who are positioned at one pole will move toward the other side if the political climate changes. Part of the analytical practice is to examine what it would take to make that change happen. In this example, an interesting result of our analysis was that Mayor Antonio Villaraigosa, touted as one of Los Angeles’ most THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-12 progressive politicians, was placed in the uppermost right corner of the grid along with the opposition. During his bid to become to mayor, then Councilman Villaraigosa acted to protect landlords at the expense of tenants by reducing code enforcement operations in Boyle Heights. He also failed to appoint a housing deputy during much of his first year in office. Joining Villaraigosa are Councilman Herb Wesson, the chair of the Council Housing and Economic Development Committee, and Mercedes Marquez, the General Manager of the Los Angeles Housing Department; both are placed on the right side of the grid favoring property rights over the human right to housing. Wesson has consistently used his role as committee chair to push forward the organized landlord agenda and thwart efforts to gain tenant protections. One recent example of this can be seen in his efforts to attach means-testing to relocation amounts given to displaced tenants, a move many tenant advocates believe to be the first step to dismantling rent control. Despite Mercedes Marquez’ progressive background before joining the Housing Department, her tenure there can be described as a mixed bag at best with regard to preserving affordable housing and protecting tenants. Her emphasis on homeownership opportunities at what many believe to be the expense of low-income tenants has antagonized many within the tenant advocacy community. Placed alongside these three players were the majority of other Los Angeles City Council Members, the Community Redevelopment Agency, the Planning Department, and the Los Angeles Police Department. The overall placement for the City Council was on the right side of the grid due to their unwillingness to seriously tackle the affordable housing crisis and massive tenant displacement that is occurring. Both the Planning Department and the Community Redevelopment Agency has historically placed business interests before communities. Up until very recently, and only due to intense community pressure, did the Planning Department begin to uphold a City Council directive to deny condo conversion permits to developers seeking to destroy affordable housing in areas with vacancy rates of less than five percent. Meanwhile, the Los Angeles Police Department has institutionalized the criminalization of poverty throughout the City and continues to harass tenant organizers. The power analysis demonstrates that the most supportive City Council members are Ed Reyes, Eric Garcetti, and Bill Rosendahl. As head of the Planning, Land Use and Management Committee (PLUM), Councilman Ed Reyes pushed for a study on an Inclusionary Zoning Ordinance for the City, a motion which was seconded by Councilman Eric Garcetti. Amongst his constituent base, Garcetti has consistently championed tenants rights, though publicly, his leadership has been questioned. Participants ranked Councilman Bill Rosendahl the most tenant-friendly area politician because of his continued dedication and commitment to low-income local tenants, especially those residing in his district. Unfortunately, Councilman Rosendahl enjoys very little clout in City Council. This is apparent in the fact that Councilman Wesson has refused to duplicate Rosendahl’s district-wide condo conversion moratorium at the City level by failing to place it on the Housing and Economic Development Committee agenda for over a year now. THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-13 Community organizations are the most eager in pushing a tenants’ rights agenda. Unfortunately, they are clustered at the bottom of the chart where there is little power. One objective of the tenants union will be to bring together these groups so that their combined efforts and numbers will give them a seat at the table and symbolically raise them to the top of the chart. Organized Opposition The Apartment Association of Greater Los Angeles (AAGLA) is the largest and most powerful organized opposition to tenants and the tenant movement in Los Angeles. Celebrating its 90th anniversary this year, AAGLA claims to represent 90 percent of apartment owners in the Los Angeles area. Landlords join AAGLA as members, and pay dues to their organization in the amount of $104 a year, plus $2 per unit and a $15 one time only registration fee. Benefits of membership include: free legal assistance on landlord tenant issues, low cost tenant screening, free legal forms, free monthly magazines, vendor referrals, low cost liability and health insurance plans, manager training and placement, as well as meetings, seminars, and trade shows. AAGLA is comprised of a volunteer board of directors and five work committees that meet monthly. Committees include: Membership, Publications, Finance and Operations, and Legal Affairs. Perhaps most importantly, AAGLA is involved in extensive lobbying efforts on both the local and state levels. They operate a Political Action Committee (PAC) that provides financial contributions to landlord-friendly candidates and politicians. AAGLA’s political activism spans the breadth of their 90 year history, including early defeats of rent control measures that had been in affect following both World Wars. Their history describes how “AAGLA was able to stop the construction here of the type of instant slums that sprang up elsewhere” (AAGLA, 2007). Regarding the passage of rent control they write, “we were not as successful in the late 70s when rent control spread like a disease across California, but our members fought hard against the worst aspects of rent control, and protected us through the ‘vacancy decontrol’ that preserved some free market aspects in Los Angeles and served as a model for the CostaHawkins protection enacted by the State Legislature that exists today” (AAGLA, 2007). Today, AAGLA remains an active player in Los Angeles’ political scene and maintains intimate relationships with numerous elected officials including the Chair of the Housing, Community and Economic Development Committee of the Los Angeles City Council. They also retain close ties with the Los Angeles’ City Attorney’s office, the Los Angeles Housing Department, and the Los Angeles Police Department, as is highlighted in the schedule of monthly meetings offered for members on their website (AAGLA, 2007). On rental housing and landlord-tenant issues, AAGLA continues to wield enormous political influence and stature in Los Angeles politics. THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-14 Comparisons to the 1970s Landscape Drawing from veteran housing activists Mitchell Kahn, Dennis Keating, Allan Heskin, and writers in Shelterforce, three major lessons from the past four decades of struggle for tenants’ rights have emerged: The level on which the struggle takes place is always changing. Real estate and landlord interests are well organized. They lobby at state and local levels. To combat this, organizing must be strong at all levels. Political and economic climates have an underestimated influence on the success of rent regulations. Tenant groups should track political and economic trends and proactively form alliances with other groups. Fight vacancy decontrol and the weakening of rent regulations. Vacancy decontrol is almost as dangerous as the full repeal of rent control. Vacancy decontrol gives landlords the incentive to pressure tenants with eviction. It weakens the base of tenant organizing because it does not directly threaten rent increases and it rapidly reduces the stock of affordable housing. Lesson 1: Combat the Real Estate Industry by Organizing on Local and State Levels Statewide Attacks: AB 3788 and Proposition 13 The following section shows that weakly organized tenants were not able to block statewide, anti-tenant measures (AB 3799 and Prop 13). Conversely, in response to the anti-tenant legislation, a group of tenant and housing organizers formed the statewide network California Housing Action and Information Network (CHAIN). In 1975, Senator David Roberti, representing a highly tenanted district in Southern California, attempted to pass statewide rent control legislation. At this time, real estate and apartment industries were well organized and wielded enormous power in Sacramento. The real estate industry countered Roberti’s attempt by moving legislation (AB 3788) to eliminate the threat posed by the 1972 Birkenfeld decision. iv While Birkenfeld stood to allow cities to adopt rent control laws, AB 3788 prevented this by prohibiting local jurisdictions from enacting rent control. AB 3788 was backed by the California Housing Council (CHC), an association of the largest corporate landlords and apartment developers. The CHC contributed $43,000 in campaign contributions to key positions, such as the Assembly Speaker and the Housing and Community Affairs Chairman. Ten tenant groups across the State, mostly comprised of housing activists, public interest lawyers, and lobbyists involved in changing landlordtenant law, attempted to counter the powerful real estate lobby, but were slow to move THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-15 (Heskin, 1983). AB 3788 passed in 1976 with the concentrated lobbying effort of the real estate industry. A group of housing and tenant organizations from around the state met in Berkeley shortly after AB 3788 was vetoed by Governor Brown. Similar to discussions taking place today among Los Angeles tenant organizers, the group of the 1970s talked about organizing a coalition of housing rights groups and community organizations. The group saw it had to go beyond public interest lawyers and activists if it was going to impact Sacramento: “Tenants and low income housing consumers needed to be organized into a strong statewide grassroots movement to counter power of the real estate lobby” (Heskin, 1983). The result was the formation of CHAIN which was “to function as an umbrella for the organizing, education, and advocacy work of housing rights groups throughout the state” (Heskin, 1983). Tenant organizers of the late 1970s felt that real power in Sacramento could only be built on strong tenant organization in local legislative districts. While local tenant organizing grew, CHAIN served to channel its emersion into a statewide network. Proposition 13 was a constitutional amendment approved by voters in June 1978. v Its passage capped property tax rates throughout the state, reducing them by approximately 57 percent. This cut in local property tax revenue resulted in a drastic reduction in funds available for local service provision. It catalyzed the Regan-era, anti-government tax revolt (The Special Challenge, n.d.). The passage of Prop 13 infuriated tenants, who faced increasing rents despite landlords’ windfalls in tax savings. While tenants were not able to fight back on a statewide level, they organized and won local battles for rent control. Tenant organizers recognized the boost Prop 13 gave to the rent control movement. Prop 13 was the most important opportunity for tenant organizing in years. The media attention that had incubated in the previous years began to pay off as journalists began to label any rent increase as “unjustified” (Heskin, 1983). A tenant hotline created by Governor Brown received 12,000 complaints a day about rent increases. After Prop 13’s passage, Los Angeles tenants renewed their fight for rent control. Wachs reintroduced his ordinance for the third time, calling for a six month rent freeze at preProp 13 levels. The key vote was San Fernando Valley Councilmember Bernardi, an outspoken opponent of rent control and the leader of opposition in the City Council. In the Valley, tenants were among the loudest on Prop 13 rent increases. The Valley Tenants Association (VTA) had formed to bypass City Hall. Comprised of mostly seniors, the VTA circulated a rent control initiative designed to roll back rents to January 1977 levels and limit landlord profit from rent increases. This tenant unrest pushed Councilmember Bernardi of San Fernando to propose to adopt some rent controls (Heskin, 1983). Although tenant organizing was not able to match Prop 13 at the state level with THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-16 successful statewide tenant protections, organizing did contribute to the passage of tenant protections at the local level. Rent control was enacted in several California cities and was the subject of major state legislative battles. Politicians increasingly began to respond to tenant political uprisings. Then Mayor of Los Angeles, Tom Bradley, announced his support for rent rollbacks and a rent freeze. Bradley, supported by the Council, came out against landlords and real estate interests, stating that they were making “excessive profits” on a basic need (Heskin, 1983). Local Battles: The Fight for Rent Control With a high concentration of tenants Santa Monica beat out City Council’s real estate interests with rent control. Although Santa Monica was 80 percent tenants, its local government refused to adopt even the mildest form of tenant protections. At this time, the City of Los Angeles was 60 percent tenants, and the County was 50 percent. One obstacle in moving tenants rights was the Santa Monica City Council, in part because Mayor Donna Swink was also the vice president of a bank heavily financed by the real estate industry. Two other City Councilmembers were landlords, reflecting a council that was devoted to the free market and property rights. Tenants asked, “If you’re not representing the renters who are 80 percent of the city, who are you representing?” (Heskin, 1983). The Council responded that the problem in Santa Monica was in fact the existence of too many renters and not enough homeowners. The Council remained hostile to renters. As a result, tenants turned to the initiative process and introduced Proposition A. Prop A was much stronger than the rent roll back measure the Santa Monica Fair Housing Alliance presented to the Council. Prop A was a charter amendment that proposed the following: the creation of a rent control board established by citizens, annual rent adjustments, a ban on demolition and conversions into condos of any rental unit, just cause eviction requirements; and vacancy decontrols (Heskin, 1983). Local media repeatedly attacked rent control measures and tenant activism. The campaign for Prop A also served to battle negative stereotypes of tenants as lazy. Tenants asserted themselves as productive members of the community: “our jobs and family needs dictate where we should live” (Heskin, 1983). The Santa Monica Fair Housing Alliance, local Democrats, and the Campaign for Economic Democracy (CED) formed a coalition called Santa Monica for Renters’ Rights (SMRR). The SMRR and CED added the resources and experience necessary to win electoral campaigns. Despite being outspent by real estate interests ($217,257 to $38,443) the mass mobilization of tenants was able to pass Prop A by a nine percent margin. This represented a 20 percent turnaround from the previous year’s attempt to pass rent control in Santa Monica. Tenants followed this victory by electing all five members of the SMRR slate to the rent THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-17 control board. Tenants saw that “suddenly civil life in Santa Monica [had] opened up to include the excluded” (Heskin, 1983). The tenants’ victory shows that organizing on a large scale is more powerful than the financial resources of real estate interests. The real estate industry countered the passage of rent control in Santa Monica with Proposition Q, as an attempt to water it down. They named it the “Fair Rents Initiative,” a very misleading title. Prop Q excluded single family homes and allowed for vacancy decontrol. This election also determined one of the Council seats. Two Prop Q supporters and one tenant activist ran for the seat. The result of this November 1979 election was that tenants defeated the real estate industry at the polls for the third time in seven months. A tenant activist was elected to the Council. In just over a year, tenants became a powerful political force in Santa Monica. The real estate industry fought back after the defeat of Prop Q. A statewide coalition of landlords, real estate developers, and building trade unions formed to promote a statewide initiative, Proposition 10, to stop the rent control movement. They led a misleading and deceptive campaign, labeling their petitions with “Rent Control” (Heskin, 1983). The Prop 10 campaign tried to capitalize on rent control popularity in order to destroy it. However, the momentum of the tenants movement remained strong, and voters defeated Prop 10 by a 30 percent margin, despite being outspent 80 to one by the real estate industry. Lesson 2: Track Political and Economic Trends and Proactively Form Alliances with Other Groups Phil Star of the Cleveland Tenants Organization notes that the tenants movement of the 1970s collaborated with other social movements of the time. First, organizing in public housing was framed by civil rights struggles and as such dealt with discrimination against people of color. Eva Gladstein of the Neighborhood Transformation for the city of Philadelphia notes that in her city, tenant groups were based in neighborhoods and in the political theory of the Black Nationalist movement, Saul Alinsky, and other intellects of the time. These communities emphasized empowerment and their campaigns were focused on social justice, particularly injustices faced by people of color and poor tenants. Another approach to tenant organizing in the 1970s connected with consumer rights, which emphasized limiting the profits of big business and giving a voice to the consumer, as opposed to the fundamental restructuring of power relations that marked the social justice movements of the 60s and 70s. This was especially the case in college towns and with rent control campaigns. Their tactics included strikes and demonstrations, which characterized other social movements of the time. In essence, the tenants movement used non-housing tactics of the era to shift power towards tenants and strengthen their rights. THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-18 Ralph Scott, community projects director for the Alliance for Healthy Homes said of the housing movement in the late 1990s, “there has been successful collaboration between labor and [tenants]. More recently, the connections between housers and environmental justice have been growing and would seem to have high potential. Housers play some role at least in anti-discrimination and immigrant rights efforts” (Widrow, 2005). These are alliances Los Angeles organizers can consider, given the strong immigrant rights and environmental justice movements based in the city. Labor In the mid 1970s, AB 3788 sought to prohibit local jurisdictions from enacting rent control. The State Legislature passed it in 1976 with the lobbying efforts of the real estate industry. However, the newly formed group California Renters Coalition and the California Federation of Labor urged Governor Jerry Brown to veto the bill. This effort was backed by the State Department of Housing and Community Redevelopment, who also pressured Brown to veto the bill, thereby allowing cities to enact rent control at the local level (Heskin, 1983). This is an example of a successful, albeit short-lived, coalition of labor and housing activists. Middle Class Tenants In the late 1970s in Santa Monica, Prop A emerged. It was a charter amendment that would establish a rent control board elected by citizens, oversee annual rent adjustments, place a ban on demolition and conversions into condos of any rental unit, enact just cause eviction requirements, and lack any vacancy decontrol mechanism. The greatest support for Prop A came from wealthier tenants along the Wilshire Corridor. Their support was a result of rent increases after Prop 13, the effectiveness of electoral campaigning, and the mass demolition of rental units along Wilshire for condo conversions just prior to the election (Heskin, 1983). Support and votes from middle class tenants proved key in this campaign. Cleveland’s Phil Star also encouraged organizing across class lines in order to avoid divide and conquer techniques that may be used to weaken tenant organizing (Widrow, 2005). Lesson 3: Fight Vacancy Decontrol and Other Attacks on Rent Regulations. Although landlords have not been able to repeal rent controls in California, real estate interests have weakened them significantly. In 1995, the landlord lobby persuaded the State Legislature to impose statewide vacancy decontrols. Vacancy decontrol allows landlords to raise rents above the allowable annual increase when a tenant vacates the unit. This results in the loss of a rent controlled unit when a tenant moves out. The Los Angeles rent control ordinance passed in 1979 already included vacancy decontrol (Heskin, 1983). THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-19 Los Angeles’ rent control ordinance was highly criticized by tenants and organizers because of its somewhat lax rent protection. In addition to vacancy decontrol, some criticisms included: one year rent control instead of permanent rent control, the allowance of higher annual rent increases, landlords’ allowance for larger rent increases in cases of landlord hardship, and the exemption of single family residences (Heskin, 1983). These lax protections have encouraged landlords to allow living conditions to deteriorate in order to coerce their tenants to vacate. This has created a great disparity in rents between new and long-time tenants. This has led to difficulty in cultivating tenant unity and has served to divide tenants along the lines of tenure and residence type (Kahn and Keating, 2001). Today’s tenant organizing efforts are shaped by issues of vacancy decontrol and the loss of affordable units. In the seven years (1972-1979) since the Birkenfeld decision, the tenant movement went from a few housing activists and lawyers to a mass political movement. Through strong organizing efforts, tenant protections such as rent control were established and condo conversions were curtailed. It is important to note that in recent history, tenants were the feared political opponents of the real estate lobby. It is the goal of tenant organizers to get back the political power they once harnessed in the 1970s in order to assert rights for tenants today. The formation of a tenants union in Los Angeles is the first step. Collaboration has proved effective in the past, as it did in the case of vetoing AB 3788 and enacting rent control. The tenants union will draw on the power of the collective in which the protection of one’s rights means the protection of everyone’s rights. 6.4 EXISTING RESOURCES Tenant Organizations In determining the feasibility of a citywide tenants union, it is necessary that we assess the density of organizations already present in Los Angeles. Currently, we know of 13 organizations operating in the City which engage in the work of organizing and empowering low-income tenants. These groups are to serve as the building blocks of a tenants union. The four determining questions we asked when deciding whether or not an organization should be included in this list are the following: 1. Does the organization maintain a firm commitment to tenants rights, rent control, and affordable housing preservation? 2. Is the organization actively organizing low-income tenants? 3. Is the organization committed to seeking economic and social justice for lowincome people? 4. Does the organization employ leadership development methods with its tenant leaders? The following descriptions are of 13 organizations we have identified that meet the above criteria and could potentially form a part of the tenants union: vi THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-20 Los Angeles Community Action Network (LA CAN) According to their website, LA CAN’s mission is “to help people dealing with poverty create and discover opportunities, while serving as a vehicle to ensure they have voice, power, and opinion in the decisions that are directly affecting them” (LA CAN, 2007). Their constituents consist of homeless and extremely low-income residents of downtown Los Angeles, including the Central City East area that is commonly known as Skid Row. Their organizing includes legal, policy, educational, empowering, and leadership development strategies that seek to build organic leadership within the community. East Los Angeles Community Corporation (ELACC) ELACC’s mission “is to advocate for economic and social justice in Boyle Heights and Unincorporated East Los Angeles by building grassroots leadership, self-sufficiency, and access to economic development opportunities for low and moderate income families, and to use its development expertise to strengthen existing community infrastructure in communities of color by developing and preserving neighborhood assets.” One of ELACC’s most current efforts includes purchasing the Boyle Hotel (a.k.a., Mariachi Hotel) in order to prevent the displacement of musicians living there. Coalition for Economic Survival (CES) CES organizes low income tenants of privately-owned rental housing units, including both federally subsidized and non-subsidized units, whose residences are in high risk situations due to slum conditions, proposed demolitions, illegal evictions and owners' desires to opt-out of federally subsidized rental housing programs. CES educates, trains, supports and empowers tenants to take action to protect their rights, housing and lives. They also bring tenants living in threatened affordable housing together with tenants in slums and the U.S. Department of Housing and Urban Development (HUD) housing to create a powerful voice to preserve and create healthy, safe, and decent affordable housing. Strategic Actions for a Just Economy (SAJE) SAJE improves the lives of people by seeking economic justice through community development and popular education. SAJE criminalizes slum housing by helping place slumlords behind bars, promotes healthy development through its urban land reform and equitable development programs, and organizes tenants to fight gentrification in the Figueroa Corridor. SAJE, along with other organizations such as Esperanza Community Housing Corporation (ECHC), have established a displacement free zone along the corridor. Another major victory for SAJE was through its involvement in negotiating benefits for displaced tenants through the Staples Center Community Benefits Agreement. THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-21 South Asian Network (SAN) SAN is dedicated to empowering members of the South Asian population in Los Angeles through education, direct service, and political reform in the fields of immigration, violence prevention, public health, consumer protection, hate crimes, and discrimination (SAN, 2007). Its satellite office in Koreatown assists Bangladeshi and other residents in dealing with difficulties with management companies or landlords. Forming a residents’ committee has been instrumental for SAN in its efforts to serve tenants in this neighborhood through education, outreach, and organizing. Union de Vecinos, (Union of Neighbors) Union de Vecinos was formed in 1996 after several residents of Boyle Heights received notice from the City that their homes would be demolished. Union de Vecinos engages low-income tenants in testifying at public hearings, lobbying elected officials, and marches. Union de Vecinos was successful in imposing a moratorium on public housing demolitions. The organization is especially praised for offering women a space to share ideas and organize in their community. Inquilinos Unidos (IU) Inquilinos Unidos organizes tenants in Central Los Angeles in order to improve their housing conditions. Since 1989, IU has worked to improve the quality of housing in disenfranchised L.A. neighborhoods under the leadership of the tenants themselves. Inquilinos Unidos’ mission is to empower low-income tenants through community organizing, education and advocacy to fight for safe, decent, and affordable housing in Los Angeles. Collective SPACE (Social Power through Action & Community Empowerment) Collective SPACE began its organizing efforts in 2004 with a mission to build an informed and active MacArthur Park/Westlake community to bring about systemic social change through grassroots organizing, leadership, and community development. Collective SPACE develops the leadership capacity of local residents to improve the neighborhood and housing conditions in the area. The organization prepares tenants to navigate systems in order to protect themselves against illegal evictions and harassment. Coalition LA (COLA) THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-22 COLA works with residents of low and moderate income neighborhoods that face slum housing, poor education, crime, and unemployment. COLA benefits the lives of these residents through leadership development, creating cross-cultural alliances, and encouraging civic, electoral, and collective action. The organization advocates for tenants rights through its “No Slum Zone” campaign which has targeted three neighborhoods in Council Districts 1 and 9. COLA is fighting to rid these areas of slums by pushing for housing inspections and through legal action against landlords. L.A. Voice/Pico LA Voice is an interfaith organization that strives to solve some of the most critical issues in the city’s neighborhoods. They have made advancements in access to health care, improving public schools, mobilizing voters, neighborhood safety, and affordable housing. LA Voice successfully purchased a property in Hollywood where the City will build 60 units of housing for the homeless. The site will provide essential services such as health care. Their efforts also include organizing tenants in Hollywood, West Adams, Boyle Heights, and Santa Monica. People Organized for Westside Renewal (POWER) From our list of potential organizations, POWER is the only organization that is located in West Los Angeles. POWER builds relationships with communities in Santa Monica, Venice, Mar Vista, and Inglewood and with other organizations in the area in order to affect social change. Three of these organizations involve housing and tenant organizing: Venice Community Housing Corporation, Holiday Venice Tenant Action Committee, and Mar Vista Tenant Association. Through their collaboration with these groups, POWER ensures that tenants have a say in their communities. Esperanza Community Housing Corporation (ECHC) ECHC’s mission involves community development in the South Los Angeles neighborhood known as Maple/Adams-Hoover/Adams. One of the organization’s main components involves the creation and preservation of affordable housing. ECHC does this by renovating slum housing in the area so that tenants may have a safe and habitable environment. ECHC has successfully created 154 units of housing through nine affordable developments with more than 100 units in the planning stages. Little Tokyo Service Center (LTSC) LTSC is a community development corporation that serves the Asian, Pacific Islander, and increasingly, Latino communities in Los Angeles. LTSC has constructed over 300 apartments that house low-income tenants. Their Little Tokyo Residents Association (LTRA) involves 1,200 tenants from five housing complexes and three single room THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-23 occupancy (SRO) hotels in the Little Tokyo neighborhood. LTSC works with LTRA to ensure that tenants have a voice in a gentrifying community. Call to Action The Housing Advocates Call to Action is a collaborative of organizations dedicated to preserving, improving and creating decent, safe, sanitary, and affordable housing opportunities for low-income tenants in Los Angeles. Membership is restricted to private nonprofit agencies, tenant associations, and grassroots organizations dedicated to the overall mission of the collaborative. The collaborative is mostly comprised of nonprofit legal service organizations and tenants rights organizations, many of which are detailed above. Call to Action meets monthly to discuss local and state legislative updates and campaigns as well as local tenant organizing efforts and obstacles. While members strategize and work together under the auspices of Call to Action, the collaborative falls short of being a united front for the organizations involved. For example, during the City’s November 2006 election, Call to Action failed to take a stance on an affordable housing bond (Proposition H) because of different concerns raised by members. Call to Action also lacks the desired political clout that could lead to important tenant reforms. However, the idea of a tenants union was first brought up over a year ago during a call to action meeting that was attended by several Community Scholars participating in this report. In essence, Call to Action can and should be viewed as a necessary starting block from where we can continue to form a tenants union. Capacity of Organizations One of the most important questions in regards to the feasibility of a citywide tenant union is the number of people the union will need in its membership in order to significantly effect change on housing policies and tenant rights in Los Angeles. In order to provide an informed estimate about possible membership, we conducted a survey with staff of several of the organizations mentioned above. Participants were asked about the number of members in their organizations, their ability to mobilize, and specific tenant issues their organizations are currently working on. The assessment of these surveys can help demonstrate the existing untapped power of tenants and their organizations, should they decide to unite. We found that there are at least 12,267 tenants that are organized throughout the City. Of that number, approximately 850 are considered activists. Activists are members who support organizing campaigns and participate in meetings or events but are not consistent in their involvement and attendance. There are also an estimated 295 leaders. Leaders are members who not only support various organizing campaigns but are also very committed to attending, planning and participating in the majority of meetings, events, THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-24 advocacy, and other actions. In regards to their mobilization capacity, the tenant organizations projected they would be able to turn out about 660 people for an action. The numbers gathered through the survey demonstrate that tenants in the City of Los Angeles do have the power to preserve and expand tenant protections if several of these organizations unite. Individually, an organization can have as few as 25 people fighting to win the same issue that the other organizations are also struggling with. A tenants union can transform the power of those 25 people into a concerted action potentially backed by over 12,000 people. However, we still have a long way to go since organizations are currently fragmented. Organization Fragmentation The following map (Map 6-3) displays where the organizations mentioned in the previous section are located. The most obvious observation is that the organizations are clustered very close to each other. They are concentrated in parts of the City that share the largest proportion of tenants as seen in the earlier map. However, there are no organizations located in the San Fernando Valley despite the high percentage of tenants living there. To be fair, some organizations extend their services to tenants across Los Angeles and not just those near their headquarters. For example, CES organizes tenants throughout the City despite their office being located in Koreatown. The map shows that these organizations are physically close but reality tells another story when it comes to working together. Each organization is doing excellent work to benefit tenants yet there is little collaboration between them, despite the fact that some are located within blocks of each other. A tenants union is needed in order to bring these groups closer so that they can build off each other instead of duplicating services in the same neighborhoods. A union can also identify areas where tenants may need some of these services but are not receiving them, perhaps in The Valley. There is a sense of hope for bringing the organizations together. Through the surveys, we found that every organization is working on three common issues: gentrification, affordable housing, and tenants rights. These three issues also happen to be problems that have received little attention from policy makers. Great results can be achieved in the movement if these 13 organizations work together on these three issues. THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-25 Map 6-3 Tenants’ Rights Organizations 6.5 BEST PRACTICES The New Jersey Tenants Organization The New Jersey Tenants Organization (NJTO) was formed in 1969 in response to substandard housing conditions and unreasonably high rents throughout the state. It was formed during a time when many people were participating in militant political action. People were not only organizing against the Vietnam War and in support of the Civil Rights Movement, they were organizing tenants. In 1969, there were at least 67 major rent strikes across the United States (Kahn, 1994). Some of the NJTO’s first goals were to win protective tenant legislation, strong housing codes and code enforcement, and rent control. In order to meet these goals, the NJTO’s strategy in their first year was one of direct action, including rent strikes, rallies, and demonstrations. THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-26 These direct actions were successful in bringing out large numbers of tenants, winning victories on the local level that sustained local organizations, and maintaining tenant issues in the media. NJTO went onto lobby legislators and push for rent control. While rent control failed at the state level, it was implemented at the municipal level in New York, San Francisco, Washington D.C., Santa Monica, Berkeley, and West Hollywood. Although passed in Boston and Cambridge, Massachusetts, rent control was repealed in these two cities (Ceraso, 1999; Kahn and Keating, 2001). The main problem the NJTO faced was the lack of protection for New Jersey tenants against arbitrary evictions. Not only were many tenant activists being evicted, many tenants did not get involved because of the threat of eviction. In response, the NJTO helped push through the New Jersey legislature the Retaliatory Eviction Act which prevented such evictions. The Retaliatory Eviction Act, much like a just cause eviction ordinance, protects tenants from discriminatory or retaliatory evictions. New Jersey was the first state, followed by Illinois, to have just cause eviction written into state law (J. Leavitt, personal communication, March 14, 2007). Features of the NJTO that can inform the Los Angeles Citywide Tenants Union include: Structure The NJTO is governed by a Board of Directors elected at annual membership meetings. The Board is made up almost entirely of local tenant organization leaders. There are also a small number of volunteer public interest attorneys. The responsibilities of the Board include developing organizing strategies, drafting legislation, and developing policy for the organization. The NJTO has only one paid staff member, an administrative director. That person, working out of the central office, coordinates volunteers responsible for public relations and lobbying efforts, publishes educational materials for tenants, assists emerging groups with organizing, provides legal support, and fundraises. Recruiting volunteer labor has been essential to the work of the central office. Dues The NJTO runs solely on dues and contributions from its membership. It has never taken money from outside sources. The NJTO keeps dues very low to encourage groups to affiliate. The NJTO does not raise dues beyond the minimum needed to keep their doors open. Not only do they not want to burden their affiliated organizations, they also believe that hiring a paid staff would lead to a decline in volunteerism. THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-27 There is a suggested donation for groups and individuals, although already organized tenants groups are encouraged to join as a group rather than as the individuals. A membership fee of $22.00 per individual is suggested to obtain voting rights at annual meeting. Relying on members dues has made it difficult. There is no paid staff, and Kahn has considered going the non-profit route. The financial situation of the organization is described by Kahn as "dismal" and a "constant struggle" (Ceraso, 1999). Problems The NJTO has faced problems maintaining members. This is due in part to the mobility of the tenant population. When people relocate, they do not always renew their membership. Winning reforms can also be an impediment to maintaining membership. For example, once goals such as rent control or effective code enforcement are met, many tenants drop out of their local tenant organization. Despite the presence of the NJTO, New Jersey is facing a number of forces that have worn down tenants’ power. Two decades of landlord political activity at the state and local levels have worked to reduce tenant rights. Landlord-sponsored referenda, a tax appeal campaign, and condo conversions have drained tenant movement’s resources. This compounded with the public’s opposition to increases in the state income and local property taxes, and the election of conservatives throughout different levels of government in the 1980s and 1990s made it harder for NJTO to win battles. Organizational Structure: Examples from Labor In order to better understand how to create an effective and powerful tenants union, we examined the structures of labor unions. We did this to study how a union can serve to collectivize and assert power. In addition, we addressed participatory issues involved in forming and sustaining an effective union. To do this, we interviewed long-time labor activist Paul Worthman who has worked with the largest and fasted growing union in North America, the Service Employees International Union (SEIU) (SEIU, 2007). Worthman, a labor historian and union leader, has worked with several unions including the American Federation of State, County, and Municipal Employees (AFSCME), the American Federation of Television and Radio Artists (AFTRA), and the SEIU. In addition to holding positions as Director of Organizing & Research at AFTRA, and Chief and Statewide Negotiator for AFSCME and SEIU, he has been a labor history professor and instructor at the Labor Center of Los Angeles Community Colleges. There are several points Worthman made that are applicable to a tenants union. These include differentiating democracy and power, participation, various structures used in the labor movement, authority, organizational identity and autonomy, the importance of differentiating an organization that services the individual versus one that works to create THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-28 a collective benefit on a structural and political level, and issues of funding and prioritization. Consolidation Worthman correctly understood the purpose of the citywide tenants union as “an effort to consolidate tenant organizations for power” (personal communication, April 19, 2007). He saw a divergence in where power would be exercised, first in collectivizing power in political and economic realms and then in exercising power with landlords. Differentiating Power and Democracy Tenant organizers have expressed interest in creating a democratic structure for the union. Worthman responded by differentiating power and democracy, “Don’t just have democracy for its own sake… or power” (personal communication, April 19, 2007). He pointed to the Labor Movement, in which not all labor activists agree that democratic structures are powerful or that powerful unions are democratic. While he personally believes that power can only be cultivated in a democratic organization, this is not explicit. He reaffirmed the need to have clear goals. If the goal is to have power, then organizers must assert an underlying principle of democracy if that is how they wish to structure the union. In relating the issue of power and democracy to the labor movement, Worthman noted that “a lot of democratic stuff in unions is B.S. Some unions have been able to achieve power, (but have not necessarily been democratic)…you have to distinguish between democracy and power” (personal communication, April 19, 2007). Participation: Involving Workers and Tenants In terms of democracy, Worthman posed the question, “At what stage do you involve people, in defining goals in prioritizing and redefining?” Staff in charge of implementing this cannot just parachute instructions into the community. He emphasized that excluding workers in strategy building, and mobilizing workers instead of organizing them will lead to an ineffective organization. In the case of the Los Angeles citywide tenants union, tenant organizers have actively involved tenant leaders in the most initial discussions. Different Structures Within Labor Worthman pointed out different structures within the labor organizations. Within the American Federation of Labor (AFL) he cited power as being located within individual unions, and almost no decision-making authority in the greater AFL. The AFL is a confederation, and decisions are made in consultation with all participating unions. Some decisions within the AFL were made by the most powerful unions. This led to the discussion of the schism within the labor movement in 2005, in which five large and THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-29 powerful unions seceded from the AFL to form a new federation, Change to Win. Worthman noted that in this move, there was a sense among the Change to Win alliance of AFL’s unwillingness to relinquish power. Authority This in turn raised questions about authority. Worthman asked in the case of the tenant union, how much, if any, authority or power will individual tenant organizations cede to a larger body like a citywide union. Will decisions be made by consensus or majority? In creating a citywide tenants union with a coordinating body, will it be centralized with locals or will it be a federation? Examples from the Labor Movement Worthman pointed to the models of the United Auto Workers (UAW), the International Brotherhood of Teamsters, United Teachers of Los Angeles (UTLA), SEIU, and AFSCME. The UAW is a central body with decisions made at the top. Some decisions are made by individual locals, in terms of contracts, but most decisions are made nationally. In his discussion about the Teamsters, Worthman pointed out that prior to Ron Carey’s presidency, there was no democracy within the union. He noted that Teamster locals usually make decisions regarding contracts and are very top down. He pointed to UTLA as a possible example, since they negotiate a citywide contract on a citywide basis. UTLA also has the numbers, people, and exists throughout the vast geography of Los Angeles. UTLA has different union representatives at each school with the Los Angeles Unified School District. In looking at SEIU, Worthman mentioned that there are different locals that have individual rights to make decisions with employers on an individual basis, but this is changing due to SEIU’s centralization. He posed these questions to consider: “Do you need unifying action? Where is action really local? Local action and influence depends on if a group has power- who are they linked to?” (personal communication, April 19, 2007). Worthman mentioned AFSCME as one example of a union that does not work. AFCSME has council structure, where every city is a different local, and every local elects their own officers. Each local collects their own dues and bargains their own contracts with employers. Although the AFSCME is somewhat democratic, locals are able to make their own decisions, and smaller locals are able to have staff; some negatives include a lack of single standard wages, hours, and staffing, and little emphasis on unity between the locals. While Worthman suggested our consideration of SEIU as a model, he cautioned not to be misled by formal structures. SEIU represents many workers and deals with many THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-30 employers. The union is financed by membership dues. He pointed to the fact that local leaders do not make decisions other than individual bargaining agreements, and in the case of voting on contracts, workers do have power. However, due to the centralization of the union there is much more of a central structure being formed, which can alienate workers. Worthman suggested that: One model that might be helpful in forming a citywide tenants union is something in which local tenant organizations can retain decision-making power on local decisions like landlord issues. With issues that affect tenants citywide, tenant organizations should be willing to argue those decisions be make collectively (by consensus or majority). Recognize what is local is decided locally, and what is collective needs to be agreed that it will be decided collectively (Worthman, personal communication, April 19, 2007). Councils The citywide tenant union can also be set up as councils, in which tenant organizations that have overlapping issues with large developers can make collective and coordinated decisions. The council can take on landlords in a bigger way, much how the UniteHERE (Hotel Employees and Restaurant Employees) deal with Hilton nationally even if the issue is locally based. Worthman continued to explain that in theory, a citywide organization would offer every individual tenant membership as well as every tenant organization, and officers and committees would be elected citywide. Individual tenant organizations would each retain some autonomy and continue to be their own organization, but would come together on citywide issues. Worthman suggested two types of organizational models: 1) Geographic and 2) Corporate (i.e., landlord-based, or campaigns based around a particular landlord or developer). Connecting Individual to Structural Worthman commented that tenants rights organizations tend to deal with local problems with individual landlords. These organizations seem to focus on these local problems (building-by-building basis) rather than on systemic problems, and rather than landlords that have a wider reach. He pointed out that dealing with local problems is different than the decisions made at the citywide level and take the two levels of decision-making, local and citywide, into consideration. Worthman suggested finding some ways to bring together tenants who have the same landlords. He related this to the SEIU nurses council. This is a council in which nurses from different locals discuss issues of particular concern due to the nature of their profession. The nurses’ council has the authority to put forth their positions for SEIU to consider. Worthman mentioned the possibility of doing something geographically-based but allowing for councils that focus on a particular landlord or developer. This sort of THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-31 structure could make it easier for court actions and other activities. He noted that most unions would try a model like this. Funding Funding is not just raising money, but budgeting and organizing effectively. Funding is a major question facing tenant organizers interested in forming a citywide union. Labor unions are funded by membership dues. In the case of the tenants union, grants may be a consideration. Worthman suggested creating a dues structure that reflects how much activity is central and how much activity will be local. If a major part of the work is central, then a major part of dues will go to the central body. He also suggested there be a sliding scale. How dues are allocated is an important question. A budget of activities will help with this, in terms of finding out what tenant organizations want to do, how much it will cost, and how much would be charged for its financing. Worthman framed the allocation of funds as a central versus local dichotomy. He asked, “To what extent is work done centrally or locally?” (Worthman, personal communication, April 19, 2007). He emphasized that if the tenants union is to organize centrally, to allocate funds in that direction. If the organizing is local, fund the local bodies. Worthman also discussed his views on the direction of organizing. Centralized versus local organizing is a matter of strategy. Worthman suggested looking at where organizing is needed that is, where do organizers need to work to strengthen tenant power? Wherever that is, the union’s resources need to go there. He related this to the issue of creating a democratic structure and organizing for long-term goals. He stated the question of where you organize is strategic— fighting back on case-by-case, or buildingby-building basis is not enough. Individual battles may be fought but are not strong enough to change the overarching dynamics. The union’s structure and funding must reflect the need to change the greater power relations within the city. 6.6 VISION FOR THE FUTURE Tenant Focus Group Nine tenant leaders participated in a focus group with members of our research team on April 18, 2007 in Los Angeles. The purpose of the focus group was to gather ideas from tenant leaders on creating a citywide union. Since a tenants union cannot happen without the support of tenants and tenant leaders; we wanted to get a sense of whether they would be on board with this idea. The participants are members of the following community-based organizations which three of the Community Scholars represent: Coalition for Economic Survival, Strategic THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-32 Actions for a Just Economy, and East Los Angeles Community Corporation. Below are their profiles: Avelino Fernandez is a 65 year old Mexican man, living at 1605 ½ Main Street apartments, a 19-unit residential hotel. He has lived in this apartment for the last two years, but has been a resident of L.A. Central city for 30 years. He is an active tenant leader for SAJE’s South Park committee, a committee run by 15 South Park resident leaders who are extending their involvement on community issues. Avelino, in collaboration with his neighbors, played a key role in getting their building repaired by meeting with the landlord and demanding repairs and access to the common kitchen during all hours when he had abruptly placed restricted hours. Avelino and his neighbors are part of an ongoing group effort to organize the whole building and he has help in building the South Park committee by currently recruiting two of his neighbors who have shown impressive leadership potential. Sandra Matamoros is a 42 year old Salvadoran woman. She has been a resident of Los Angeles’ first Displacement Free Zone (DFZ) for over four years. The Zone encompasses a ten-block area in the Figueroa Corridor by the University of Southern California (USC) that consists of efforts to hold the line against displacement through weekly tenants rights workshops, legal assistance, tenant organizing, and campaigns for protective policies, such as No Net Loss. She is also a tenant leader of the DFZ committee, a tenant-governed body that works together on anti-displacement strategies and policies. The committee is on the verge of kicking off an informative campaign to bring awareness to community residents on tenants’ rights and encourage community participation. To date the Displacement Free Zone has stopped scores of evictions, forced significant repairs in slum buildings, organized ten tenant unions, and coalesced the tenant unions into the DFZ. Maria Elena Rivas is a 52 year old Managua-Nicaragüense woman who also lives in South Park and has been a resident for four years. She was a tenant of the Morrison Hotel, famously pictured on the cover of The Doors' 1970 album, recently a home for more than 112 tenants living in horrific slum conditions. Maria Elena played a key role in the recent Morrison Hotel campaign victory where 23 out of the 111 tenants sued the owner with the assistance of SAJE and won the criminal and civil lawsuits. After two years, the Superior Court Judge sentenced the owners of the Morrison Hotel on criminal charges to five years probation and ordered them to control vermin infestation or face 120 days in jail, were found guilty on 21 violations of the city fire and housing code and the county health code, and had to pay more than $120,000 in fines and penalties. Maria Elena’s engagement and leadership in this campaign and with SAJE has lead her to succeed much further. She recently graduated as a Health Promoter from ECHC and is currently interning at SAJE to bring her knowledge on health and housing and give back to SAJE through her involvement in any way helps her community. As a core leader of the South Park committee, her experience and leadership has been vital in engaging THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-33 people in the work SAJE is doing and contributing to building the committee. The goal for a strong and unified entity embodied by tenants of the community that are shown respect and taken into consideration in anything affecting their community. She also serves as a member of the board of directors of the Figueroa Corridor Community Land Trust. Ana Townsend is a 54 year old Latina who lives at the Lido Apartments, a 100-unit rent controlled building located at Yucca and Wilcox in Hollywood. She participates in the Section 8 rent subsidy program and has lived at the Lido for 14 years. Her life at the Lido has been marked by one struggle after another, including participation in a lawsuit against the building’s former owner Lance Robbins, one of Los Angeles’ most notorious and sophisticated slumlords vii . Hollywood’s redevelopment and accompanying gentrification have produced continued pressures for Ana and her neighbors. The Lido’s newest owner is currently attempting to evict the remaining Section 8 tenants and other long-term tenants who have low rents. Ana has played a key role in organizing her neighbors to confront their landlords’ illegal actions throughout the years and has been quoted for her efforts in Los Angeles Magazine. She was also very involved in the Yucca Corridor Coalition of community members which had been formed in the late 1990s with the help of Councilwoman Jackie Goldberg as a response to the rampant gang activity surrounding the Lido. Roy Powers, a 74 year old African American man, is also an active leader at the Lido Apartments. He has lived at the Lido for 15 years and like Ana, has suffered the brunt of continued harassment and intimidation from multiple managers and landlords throughout the years. He is also a Section 8 recipient. He has been a renter in Hollywood for almost 30 years, with the exception of a year he spent homeless and living on the streets. Dulce Peña is a 19 year old Latina who lives at the Morton Gardens Apartments, a 66unit rent controlled complex in Echo Park. Dulce lives at Morton Gardens with her mom and two siblings, and they also receive a Section 8 rent subsidy. Just over a year ago, the owners of Morton Gardens Apartments, one of whom is UCLA Anderson School Professor Eric Sussman, began attempts to illegally evict the almost 30 Section 8 families living at the property. Many of these families have called Morton Gardens home for over 20 years and have established a tightly knit community adjacent to scenic Elysian Park. Dulce has led tenant efforts to organize against Sussman’s actions and is currently volunteering as a part-time intern with CES. Teresa Soto, has lived in Boyle Heights for over 30 years. She participated in ELACC’s Leadership Academy and has participated in other organizing activities here in the community including Mothers of East Los Angeles. Leticia Andrade is a Boyle Heights tenant who became involved in organizing for responsible community development to ensure that her children have a better place to THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-34 live. She participated in ELACC’s leadership academy and has given testimony at various actions despite her shy, soft-spoken character. Participants were first asked if they were familiar with labor unions. This question was asked because of the possibility for a tenants union to take on a similar structure as traditional labor unions. Many participants were familiar with labor unions either through their membership in one, or in one case, through participating in labor organizing in their country of origin. One of the tenant leaders shared that she organized a labor union in El Salvador during the war at a time when you could be executed for fighting for your rights. Participants acknowledged that unions benefited workers because they fought for better wages, better working conditions, and defended workers from abusive employers. They drew a connection between the benefits of labor unions for workers and the potential benefits of a citywide tenant union for tenants. Next, participants were asked if they would support a tenants union in Los Angeles. This was followed by a series of questions about their vision for a union, the governance structure, amount of dues members would pay, etc. All the tenant leaders present had favorable views about forming a union. For example, one participant explained that tenants are all facing the same issues. A tenants union would allow them to consolidate their struggles and place them in a better position to confront unjust landlords. It would also give them a larger presence in City Hall because their voices will be heard in greater numbers. Another participant explained that tenants face greater challengers compared to their landlords. Landlords can generally afford to hire lawyers to protect their interests but tenants have needs that continue to be unmet for lack of resources. In regards to the mission of the tenants union, participants provided various suggestions. All responses dealt with addressing the problems that tenants currently face. Some recommendations were more service-based, such as providing tenants with information about their rights and information on affordable housing programs. The following is a summary of action-based recommendations: • • • • • • • Work towards achieving healthy habitats for tenants; Increase the number of health inspectors to ensure that landlords are meeting health standards; Fight to preserve rent control for low income residents; Lobby for new laws to protect tenants; Push for the creation of affordable units and to keep the ones that already exist; Prevent unjust evictions; and Protect housing subsidies. Participants had different ideas about what the structure of a tenants union could look like. At first, many suggested that there should be some type of governing board that would make the major decisions. A couple of participants even suggested having a president or THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-35 vice president; someone who would speak on behalf of the tenants. After that, it was mentioned that such type of hierarchical structure can be problematic because they facilitate power dynamics that lead to top-down approaches to decision-making. Many organizations have been ruined because of conflicts arising from internal struggles for power. After that, several participants decided that having working committees would be much more effective in avoiding these problems. Each person on a committee can be assigned different roles and responsibilities. It would be a priority to have both tenants and organizers on the committees, not just organizers. One tenant suggested that perhaps a meeting with labor organizer Dolores Huerta could be set up to discuss best practices and recommendations. The last topic discussed by participants was paying dues for membership in the tenants union. The goal was not to create a fee structure; rather it was to gather their thoughts on paying fees. None of the participants objected to paying fees. One tenant leader reminded the group that maintaining a union requires financial resources. It was suggested that perhaps a portion of the fees could go towards the organizations the tenants belong to and the rest could go towards the union’s funds. For example, $20-$25 could be charged each year, with $5 going to support the union. There was a lot of uncertainty about a fair amount to charge. Much will be determined by the cost of starting a union, the dues tenants are currently paying to their organizations, and the personal value the union would provide to tenants. Participants generally agreed that a tenants union would be a valuable resource to tenants. One tenant leader mentioned that for the $20 she pays to be a member of SAJE, she has access to their computer lab, copy machine, leadership trainings, meetings, an identification card, and more. Paying dues would have the added advantage of making members feel that they are a part of something which they benefit from but also contribute to. By and large, the tenant leaders who participated in the focus group think a citywide tenants union is not only a great idea, but also necessary in order to deal with the problems they experience on a daily basis. Their views on the union are optimistic and a sense of urgency ran throughout the discussion. All those present said they are committed in one way or another to the creation of a union. One tenant leader said he would begin by speaking to his neighbors in his building about this idea. The positive energy we observed during the focus group leads us to believe that there is a strong potential for organizing a union because tenant leaders are on board with this idea and ready to run with it. We could see that they are fed up with their current living situations and are ready to do something about it. Based on their comments, a tenants union is the right conduit and now is the right time to channel this energy and urgency into action. The tenant leaders’ excitement over the possibility of forming a union may in fact be due to their positions as leaders. They know how to organize and understand what a union THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-36 may mean for Los Angeles. However, we were curious what other tenants thought forming a union. The following section uncovers some of the views of other tenants. Tenant Survey Surveys were administered to tenants in order to get a better idea of their thoughts on a citywide tenant union. The surveys were given by organizers from CES, ELACC, SAJE, LACAN, and SAN during the month of April 2007. Organizers administered the surveys to both organized and unorganized tenants at a workshops and clinics. A total of 44 surveys were completed. Of the people who answered 82 percent were renters in the City of Los Angeles. The following table (Table 6-1) highlights the age, tenure, and landlord satisfaction of the surveyed tenants: Table 6-1 Tenant Background and Landlord Satisfaction Average Question Minimum Maximum (Mean) How old are you? (years) 16 65+ 43.7 How long have you been a tenant? (years) 1 41 17.4 How is your relationship with your landlord? (10 excellent, 1 horrible) 0 10 6 The age range of tenants surveyed was 16 to over 65. The average age was 43 years. The range of tenancy was between one and 41 years, with the average tenure at 17 years. Tenant relationships with landlords varied across the board. One tenant reported his/her relationship with his/her landlord as off the scale (zero on a scale of one to ten with ten being most satisfied). Twelve of 42 respondents had relationship of four and under, indicating they had a more negative relationship. Conversely, several tenants reported an excellent relationship with their landlord (seven out of 42 tenants). Surprisingly, almost THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-37 half the respondents (20 out of 42) had relationship of seven and better, indicating most surveyed tenants had a relationship with their landlords that was closer to “excellent” than “horrible.” The survey respondents were both organized and unrepresented tenants. Table 6-2 Landlord Satisfaction Distribution Relationship with landlord (least satisfied) 0 1 2 3 4 5 6 7 8 9 9.5 (most satisfied) 10 # of tenants 1 3 0 6 2 5 5 2 8 2 1 7 Tenants were then asked about their knowledge of unions and if they would support a citywide tenants union. About three out of every four tenants knew what a union was. Some responses included: • • • Una unión es donde se junta la gente para buscar mejores arreglos a su situación (A union is where people come together to find ways to better their situation). Para respeto (For respect). Para estar unidos. Una unión es donde nos unimos a ayudamos el uno al otro (To be united. A union is where we unite and help one another). When tenants were asked if they supported a citywide tenants union, we received a 100 percent positive response rate. The response was taken from all respondents, including those who did not specifically rent in Los Angeles. This information may inform the decision on whether or not to expand the union beyond the geographical limits of the City of Los Angeles. When asked if they would support a citywide tenants union, tenants gave the following response: THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-38 Table 6-3 Would you support a citywide tenants union? Yes No Undecided # of tenants 36 2 % of tenants 82% 5% 6 14% From the two people that responded “no” one person stated a reason. This reason was, “Because they have not updated themselves”. We interpret this tenant’s comment as one that reflects a perception of unions as an outdated and ineffective model for organizing. Up until the late 20th century, the most visible unions were typically anti-immigrant, proAmerican, sexist, racist, and corrupt. This perception of unions may be what the “no” answer is based on. For the six tenants that were undecided in their support, the main reason stated for their position was that they needed more information. Almost all of the respondents stated they were in support of a citywide tenants union. Their reasons can be categorized as the need for services and building collective power. Individual Rights and Services • Si apoyaría si fuera para el bien de uno (If it was for one's own good). • You can fight for your rights. • Por los beneficios de saber mas acerca de derechos de inquilinos (For the benefit of knowing more about our rights as tenants). • We need it because it would create better rent control and be able to be seen more by city departments when they come to inspect. • Better control on downtown Section 8, and better living conditions in Section 8 buildings. Collective power • Porque la Unión hace la fuerza. Por el bienestar de uno y crear mas poder . Como los Teamsters con sindicato nos ponen más atención (Becuase the union has power. For our well-being and to create more power. Like the Teamsters' Union which gets more attention). THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-39 • Va estar enfrente de todas las autoridades estatales para defendernos (It will be in front of all the state authorities to defend us). • Tendremos mas poder y fuerzas para defender nuestros derechos de inquilinos (We have more power and strength to defend our rights as tenants). • Pienso que seria la única manera para protegernos unos as otro. Esta es la alternativa para los más pobres para organizarse (I think its the only way to protect one another. It's the alternative for the most poor to organize). • Fortalecer y podernos todos juntos reclamar nuestros derechos como inquilinos. Que sepan los dueños que estamos unidos. También demostrarle a otros con la fuerza unidas sabemos cuales son nuestros derechos (To strenghten and have everyone together claim their rights as tenants. So the owners know we are united. We also would demonstrate that united we know our rights). • Tener más comunicación y estar mas unidos (To have more communication and be more unified). • Hacer nueva política y prioridades para la ciudad (To have new politics and priorities for the City). • No hay uno serviría para ayudar a la ciudad entera y nosotros mismo (There isn't one, it would help the City as a whole and us too). • Tenants are under-represented as they do not have the money or power in this city. Respondents were asked to select what type of services they thought a citywide tenants union should provide. They chose from the following options and could select more than one option: place for information/resources, organize tenants, create new policy, build political power among tenants, lobby city departments, and all of the above. Almost all respondents thought the union should be place for information and resources. A majority also saw it as a way to organize tenants, create new city policy, build power among tenants, and lobby city departments. More than half of the tenants surveyed thought the union should work on all of these tasks. THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-40 Table 6-4 The Roles of a Tenant Union Role of a tenant # of % of union: tenants tenants Place for information/resources 39 89% Organize tenants Create new policy 34 33 77% 75% 31 70% 31 26 70% 59% Build political power among tenants Lobby city departments All of the above In conclusion, there were some common themes among why tenants would support a citywide union. They included: unity, protections for all tenants, more power to assert tenant rights and defend against injustices in living conditions, improvement of conditions for current and future tenants (i.e., preservation of rent controlled units, code enforcements, Section 8 protection), building tenant power and well-being, awareness raising, defense against owners, a place for more information on tenants rights and issues, a place for more trainings, and the formation of a body that represents the poor and under-represented. 6.7 ORGANIZATIONAL CHALLENGES Interviews with Executive Directors The Executive Directors of several organizations that work on tenant issues were interviewed for this report. The goal of these interviews was to gain insight on creating a tenants union from people who have been in this line of work for years. Given that some of the directors have been actively involved in defending the rights of tenants since the 1970s, their expertise provides valuable information for our efforts today. They were around at a time when the struggle for tenant protections was at a peak and rent control was successfully established. The social and political climate may have changed since those days, yet we still have much to learn from these veterans of the movement. The Executive Directors interviewed represented the following organizations: South Asian Network, East Los Angeles Community Corporation, Strategic Action for a Just Economy, Los Angeles Community Action Network, and Coalition for Economic Survival. Some directors felt a citywide tenants union was needed while others felt it was THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-41 highly unlikely to happen, even if it was needed. For the sake of confidentiality, no names will be attributed to their ideas which are highlighted below. Beginning with the positive feedback, some directors stated that a citywide tenants union is a great idea. It could be a very important tool for protecting tenant rights in Los Angeles. A union can work towards building the political power and people power that is necessary in order to gain leverage within the City’s current political environment. One director mentioned that current tenant organizing efforts are not as efficient as they could be. There are several organizations fighting for similar causes, yet we do not see the benefits of their individual efforts. Many organizations organize on a building-bybuilding basis, but there are only so many buildings that can be organized. Greater results could be achieved if these individual efforts were to be combined under one organization. A tenants union would also bring vast benefits to tenants, who make up the majority of Angelinos. The union would provide an opportunity for tenants who are not currently organized or engaged in a building campaign to join the movement and reap the benefits of collective action. All property-less residents would have the option of joining an organization that works for their best interests. On the downside, organizing a tenants union is easier said than done. The Executive Directors raised many questions and shed important light on the many challenges this task will face. Some of the uncertainties rest on such questions as staffing and resources. The question was posed: Who is going to make this happen and who is going to pay for it? Some directors commented that negative dynamics exist between some of the organizations. Lack of trust could potentially be a problem as well as competition for financial resources, which are currently limited. Another problem relates to organizational identity. How can the various organizations maintain their distinctiveness while remaining part of a larger union? This question is complicated by the fact that the organizations vary in size, membership, and organization. Some organizations are considered to be stronger than others and have larger constituencies. Ensuring that each organization has a voice and establishing a voting structure that properly represents them could possibly lead to conflict between organizations. It may be challenging to build the consensus that is needed to build a tenants union. However, one director explained that buy in from all the organizations may not be necessary as long as the critical mass agrees to be part of the union and a large number of tenants are on board. This person believes that between 5,000 to 10,000 tenants would need to join the union in order to be effective. This number is feasible given that more than 12,000 tenants are already organized. Even the most skeptical of directors provided advice for the tenants union. The suggestions gathered were as varied as their concerns. For example, one interviewee mentioned that the tenants union should initially look for seed money from foundations in order to establish a solid base. This suggestion could help circumvent problems that could arise from organizations competing for money. Regarding membership and dues, it was commented that a base of between five to ten thousand tenants would suffice to get the THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-42 union running. The union’s policy needs to be driven by the tenants, emanating from a residents’ committee. The constituents should come from a membership base, starting with those who are already organized and have a vested interest in seeing the union become a reality. One suggestion was that it should not be a dues paying membership initially, unless there is a buy in to be part of the union. Once results start to show it will be easier to collect dues from members. Also, in terms of building faith between organizations, it was recommended that trust building activities be conducted in the beginning in order to facilitate unity. Finally, for organizational structure, one director encouraged the formation of a Political Action Committee, or PAC. A tenant PAC could serve as the lobbying body both at City Hall and in Sacramento and could provide political contributions and endorsements to tenant-friendly politicians. Currently, most community-based organizations are limited in their involvement in politics due to their 501(c)3 tax status. Overall, there seems to be a sense of caution from the Executive Directors in their approach towards a tenants union. In many ways, this reaction is reasonable considering that except for this report, none of the organizing groundwork has been conducted. At the same time, the enthusiasm that we observed from the tenants is lacking. It is clear that the directors have experienced a lot in their years of working on tenant issues. Due to this experience, they take the idea of building a tenants union very seriously from an organizational point of view. This is disheartening, however, since they represent the leadership of the organizations. Even if the directors did not jump at the idea of a union right now, it seems they would be supportive if it were to happen, although some do not see it happening at all. Nonetheless, we feel that forming a tenants union is a worthy cause and refuse to let skepticism prevent us from our efforts. The enthusiasm of the tenants and organizers is encouraging. Tenants are faced daily with the problems that a tenants union will address. For them, a sense of urgency exists in seeing this thing through. At the same time, a new generation of organizers will help fuel this movement with their positive energy and fresh perspectives. 6.8 CONCLUSION Many important lessons were learned during the development of this report. One such lesson is that forming a tenants union will be much more challenging than initially imagined. Before compiling this study, a tenants union was considered a reachable, almost inevitable result of the tenant abuse that has gone on for too long. The union continues to be viewed as an obtainable dream; however, that dream has quickly been replaced by the reality of the work that lies ahead. The research, analysis and discussion that occurred over the past several months shed light on some critical questions, such as those relating to organizational identity, structure, and power-sharing within a union. THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-43 Questions about race relations between said groups also arose. As the tenants union moves forth, these are questions that will need answers. An equally important lesson is one that many assumed from the beginning: a tenants union is possible and the time to act is now. There may be some hesitation from the Executive Directors, but the tenants and tenant organizers are ready to take the discussion to the next level. Moreover, the resources for a union are already in place in the form of existing organizations, organized tenants, and support from some politicians. Timing is also critical since tenants are facing the consequences of gentrification at ever increasing rates. Each of these factors makes a tenants union feasible. This report is just the first step in forming the tenants union. It is not a how-to guide; rather, it is the compilation of thoughts, ideas, surveys, conversations, and analyses that have been taking place for years. The expectation is that this compilation will strengthen and further the discussion in the following months. Steps to follow include continuing to meet with tenant leaders who will be driving this movement. We must also convene with other organizers from the community organizations that were not represented in the class, but who were identified in the report as pivotal figures in the formation of a tenants union. A working group must be established in order to ensure that the momentum that this project has gathered lives on and turns into actual improvements in the quality of life for millions of tenants. And perhaps most importantly, we must continue daily discussions about the union with our members and tenants that comprise the movement base, so that this idea becomes an ingrained expectation rather than just a distant dream. THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-44 References Apartment Association of Greater Los Angeles. (2007). Retrieved April 27, 2007, from http://www.aagla.org Bet Tzedek. (2006). Housing. Retrieved May 2, 2007, from http://www.bettzedek.org/housingconditions.html Central City Association of Los Angeles. (2007). Meet CCA… Retrieved April 17, 2007, from http://www.ccala.org/new/cca_home.asp Ceraso, K. (1999). Whatever happened to the tenants movement? Shelterforce Magazine Online. Retrieved March 1, 2007, from http://www.nhi.org/online/issues/105/ceraso.html Cleeland, N. (2006, October 24) Low pay, high rent, wit's end. The Los Angeles Times. Retrieved May 2, 2007, from http://www.latimes.com/news/local/la-meapartment24oct24,0,7422913.story?coll=la-home-headlines Fronczek, P. (2005). Income, Earnings, and Poverty in the 2004 American Community Survey by the U.S. Department of Commerce Economics and Statistics Administration. Retrieved April 19, 2007, from http://www.census.gov/acs/www/UseData/Def/Poverty.htm Gullickson, T. (2005). New study calls for Ellis Act reform. BeyondChron. Retrieved May 11, 2007, from http://www.beyondchron.org/news/index.php?itemid=1265 Heskin, A. (1983). Tenants and the American Dream: Ideology of the Tenant Movement. New York: Praeger. Institute for the Study of Homelessness and Poverty at the Weingart Center. (2001). Poverty in Los Angeles. Retrieved April 15, 2007, from http://www.weingart.org/institute/research/facts/pdf/JusttheFacts_PovertyinLosAngeles.p df Kahn, M. (1994). The Case of the New Jersey Tenants Organization. Journal of Community Practice, 1(2). Keating, D. & Kahn, M. (2001). Rent Control in the New Millennium. Shelterforce Magazine Online. Retrieved March 1, 2007, from http://www.nhi.org/online/issues/117/KeatingKahn.html THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-45 Lee, C. (2007, April 10). United Way seeks support for pathways out of poverty. Retrieved April 19, 2007, from http://www.today.ucla.edu/out-about/070410_pathwaysfrom-poverty/ Legal Aid Foundation of Los Angeles. (2007). Eviction defense trial prep clinics. Retrieved May 2, 2007, from http://www.lafla.org/volunteer/eviction.asp Miami Workers Center, Strategic Actions for a Just Economy, and Tenants & Workers United. (n.d.) Overview/Background On the Right to the City. Reader, Community Economic Development, Fall 2006, 61-62. National Low Income Housing Coalition. (2006). Out of Reach 2006, California and Los Angeles-Long Beach, CA HMFA. Retrieved May 10, 2007 from http://www.nlihc.org/oor/oor2006/data.cfm?getstate=on&getmsa=on&msa=301&state=C Rusher, W. A. (1992, Mar 2). Fair or foul? - California tax-limitation initiative, Proposition 13, faces US Supreme Court review. National Review. Retrieved online May 31, 2007 from http://findarticles.com/p/articles/mi_m1282/is_n4_v44/ai_11925682 Service Employees International Union. (2007). Fast Facts. Retrieved May 31, 2007 from http://www.seiu.org/about/fast_facts/index.cfm Southern California Association of Non-Profit Housing. (2006). Affordable housing study. Retrieved March 10, 2007, from http://livableplaces.org/policy/documents/SCANPHNetGainreport.pdf The Special Challenge of Proposition 13. (n.d.) Retrieved May 31, 2007 from http://www.pbs.org/merrow/tv/ftw/prop13.html U.N. Habitat & UNESCO. (2005). Discussion Paper: Urban Policies and the Right to the City. Retrieved May 31, 2007 from http://www.hicmena.org/documents/UN%20Habitat%20discussion.pdf U.S. Census Bureau. (2005). American Community Survey. Retrieved March 2, 2007 from http://factfinder.census.gov/home/saff/main.html?_lang=en U.S. Census Bureau. (2000). State and County Quick Facts, Los Angeles (City)Retrieved April 13, 2007, from http://quickfacts.census.gov/qfd/states/06/0644000.html Wikipedia. (2007). Los Angeles. Retrieved March 12, 2007, from http://en.wikipedia.org/wiki/Los_Angeles THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-46 Widrow, Woody. (2005). The Tenants Movement and Housers. Shelterforce Magazine Online. Retrieved February 25, 2007, from http://www.nhi.org/online/issues/144/tenantsandhousers.html THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-47 End Notes: i The concept of the “Right to the City” was first introduced by Henri Lefebvre in Le droit a la ville (1968), but has since been developed by social scientists, social activists, governmental agencies and NGOs. Lefebvre’s theory of the “Right to the City” calls for the restructuring of power relations within urban space, and the shifting power from the state and capital to urban inhabitants. ii Equitable usufruct in an urban context is the idea that all city dwellers can partake in the urban space, including the decision-process that shapes it. iii The ACS defines poverty as a family of three with one child under 18 years reporting a total income of $14,000 for the past year, based on 2004 dollars (Fronczek 2005). iv In 1972, Berkeley tenants used the initiative process to pass a rent control charter amendment. However, the California Supreme Court found the amendment to be unconstitutional, but stated that a city might adopt a rent control law in the future Birkenfeld vs. Berkeley (17C. 3d 129 1976). v Prop 13 set real estate property value at 1975-1976 market value for tax purposes, limited real estate taxes to 1 percent of that value, limited tax increases to 2 percent per year given no resale, and required two thirds voter approval for any local government tax increase (Rusher, 1992). vi This list is somewhat limited since it does not include individual building tenant associations that have organized themselves independent of one of the tenants rights organizations. We believe it would be difficult to obtain an accurate number of tenants involved in such tenant associations. vii See Erin Hoover Barnett’s article regarding Lance Robbins entitled “A look at Disjecta, Part III, http://blog.orgegonlive.com. THE RIGHT TO ORGANIZE: A Feasibility Study for a Citywide Tenants Union for Los Angeles Page 6-48 7.1 CONCLUSIONS From our research, students and scholars have seen that across Los Angeles, there is a need for education about Rights to the City and available resources in order to fight for meaningful participation by communities impacted by gentrification. As a group, we dare to question where the City’s vision comes from and how tenants, low-income people, women and communities of color can organize for justice. Impacted parties are currently not part of the decision-making process in planning and we have found that where so-called community participation does occur, it is often meaningless as it does not equate to power. In fact, the City's institutions legitimize inequality through false participation. From patterns of displacement and alienation that mark the gentrification process, community scholars and students have concluded that communities do not need to wait for the eviction notices to arrive to start organizing against displacement. They cannot rely on a system that does not value all people regardless of income, race, or any other socially constructed identity. This report is relevant now because tenants, low-income populations, women, and communities of color and their advocates are increasingly losing the political power that is needed to protect their rights. As the City and its institutions continue drafting and finalizing development plans for Leimert Park, downtown, and areas of South Los Angeles, the individuals and families directly impacted are not involved in building their own futures. Today, real estate interests are extremely organized and powerful, and Los Angeles is seeing a rapid loss of housing and land for low-income communities of color because of gentrification. Rightfully so, there is a sense of urgency among tenants, home and business-owners of color, and the working class that something has to change. By documenting and analyzing the patterns of gentrification and the structures that perpetuate it, scholars and students have illustrated in five distinct ways how so-called marginalized people may achieve the Right to the City. First, in Lincoln Heights, scholars and students developed an “Emancipatory Action Research” project in which researchers and residents engaged in a collaborative process to understand the realities of the community, address concerns about displacement; and develop recommendations for relevant interventions so that existing residents retain the right to live, work and play in their community. Second, in Leimert Park, scholars and students identified threats to existing businesses and to the area’s cultural identity as an African-American cultural center. They developed ideas about ways to educate and empower the public to participate meaningfully in the city and CRA’s development of a Master Plan for the community. The project suggests that all citizens of the city have a right to preserve and nurture minority ethnic enclaves such as Leimert Park, and to have a voice in the planning and CONCLUSIONS – RIGHT TO THE CITY – COMPREHENSIVE PROJECT Page 7-1 decision-making process. Their recommendations point to a planning process where one community can reach out to another and avoid falling into mini-local traps. Third, the students working on deindustrialization in Los Angeles deconstructed existing plans from different public and quasi-public bodies. Their recommendations based on indepth research of existing conditions can be used to inform the general public and community advocates, and to argue for their participation in preserving industrial land. These students have found that the larger public, particularly community-based organizations and labor unions, who advocate on the behalf of some of LA's most vulnerable populations, should come forward to support the issues at hand. To quote from their chapter, “A substantial displacement of industrial land can leave large segments of the City’s most vulnerable populations – low income, transit dependent, and less educated people of color – with increasingly limited economic options. Not only has new development systematically decreased one’s Right to live in the City, it now threatens to diminish one’s Right to a City that provides access to quality jobs and living wages.” Fourth, students have clarified issues surrounding Metro owned right of ways in South Los Angeles and challenged Metro’s policies that limit uses for community benefit. They discussed different options that community institutions, like the Figueroa Corridor Community Land Trust and Neighbors for an Improved Community, can use in the debates over land use with Metro. Their chapter explores the little known area of “transit equity” and the relationship to housing and the Right to the City. Fifth, scholars and students used the Right to the City framework to recognize the human rights of those who do not own property. Their chapter offers a feasibility plan to bring together tenants and organizations to transform Los Angeles into a City where tenants can live without the fear of losing their homes (a home is not necessarily a house). While the Right to the City includes a right for tenants to have a minimum standard of living, the political and economic climate of the City must be changed to enforce those rights. In the global battles between democracy and development, policy and free-market economics, and local and regional approaches that manifest in the lives of Angelinos, we have found that even those working for justice do not always agree on a final vision for a fair and equitable society. However, this project has helped to gather, analyze, and share information so that communities can discuss cooperative viewpoints and strategize on how to break the status quo that sanctions inequality, top-down decision-making, and the primacy of private property rights over our Right to the City. CONCLUSIONS – RIGHT TO THE CITY – COMPREHENSIVE PROJECT Page 7-2 CONCLUSIONS – RIGHT TO THE CITY – COMPREHENSIVE PROJECT Page 7-3 CONCLUSIONS – RIGHT TO THE CITY – COMPREHENSIVE PROJECT Page 7-4