WIP: Economic Adjustment Strategy

Los Angeles Harbor Area
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The City of Los Angeles Community Redevelopment Agency (CRA) has commissioned this Economic Adjustment Strategy (EAS) for the Wilmington Industrial Park (WIP) -- a 232-acre multi-purpose industrial center located in the Harbor Redevelopment Project Area.

The EAS was funded by a grant from the United States Department of Commerce's Economic Development Administration (EDA), and prepared by a joint effort of Economic & Planning Systems (EPS), JWD Group, Psomas, Diaz-Yourman & Associates, and Seifel Consulting, Inc. The report was prepared as a City interdepartmental effort with the Mayor's Office of Economic Development, Councilor Janice Hahn's CRA Environmental Affairs and the City Bureau of Engineering.

The study is a response to the trend toward lagging private investment in a region that lacks centrally located developable commercial land. It is an area that needs to generate more stable and diverse employment opportunities for the local population, eliminate blighted conditions, and enhance the character of the overall community.

Study Objectives: Wilmington Industrial Park

Adequate industrial land is in short supply in the Los Angeles Harbor Area. The CRA is confronted with the challenge of reversing decades of negligence and decay in an environment with inconsistent levels of infrastructure improvements, design quality, and investment from parcel to parcel. The development of a functional business environment will require a highly coordinated, multi-disciplinary effort involving the sustained energy of the CRA and its private sector development partners.

The WIP is the City's third Brownfields Demonstration Site, and is divided into over 600 parcels replete with oil wells, interim uses, and pockets of small and medium sized manufacturing, cold storage, and Port support uses. The park holds significant potential for attracting developers and owner-operators looking for infill sites in the South Bay industrial market. It can be a viable project if local market strength and brownfields initiatives at all levels are strong enough to offset the area's constraints.

This Economic Adjustment Strategy responds to the CRA's goals and objectives for this industrial community, which include:

Initiate and sustain higher levels of capital investment by attracting strong, job producing light industrial, manufacturing, and cold storage/packing firms, while encouraging expansion of existing anchor developments.
Improve vacant and underutilized properties within the project boundary, and determine the most suitable uses given inherent market and site opportunities and constraints.
Reduce blight, particularly along the main East-West and North-South corridors. These corridors act as entryways into the Study Area and, if improved, could improve perceptions of the project area and attract investment.
Generate employment. Provide additional economic opportunity to the area's well-regarded labor force. New jobs associated with intensified and diversified industry within the WIP can help to diversify the local economy and stabilize the local job market.
Capitalize on the WIP's excellent location with proximity to a well-integrated port, rail, and interstate transportation hub.

Source: Wilmington Industrial Park Economic Adjustment Strategy, Final Report, February 12, 2003, pgs. 1,2,5 Prepared by Economic & Planning Systems

Report Cover.
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The Report

The complete Economic Adjustment Strategy Final Report, Volumes I, II & III, is available here in PDF format. The report was prepared by Economic & Planning Systems.

Volume I - Economic Adjustment Strategy

Chapter I includes an introduction to the project and methodologies used in the analysis. [PDF, 394K, 6 pages total]
- Introduction
- Study Objectives
- Methodology
- Organization Of The Report
Chapter II provides an executive summary of the Strategy. [PDF, 231K, 14 pages total]
- Wip Overview
- Market Conditions
- Geotechnical And Environmental Conditions
- Development Opportunities & Prototypes
- Wip Development Districts
- Phasing And Development Program
- Project Financing
- Project Implementation
- Conclusion: Projected Results
Chapter III provides a discussion of existing conditions in the WIP, with reference to land uses, infrastructure, other physical characteristics, and previous planning documents related to the site. [PDF, 42.2 MB, 28 pages total]
- Historical Perspective
- Land Use Overview
- Development Constraints
- Existing Infrastructure & Recommended Upgrades
- Geotechnical And Environmental Conditions
Chapter IV provides a summary of market conditions driving the WIP development strategies. [PDF, 192K, 9 pages total]
- Regional Economic Trends
- Real Estate Market Trends
Chapter V identifies development opportunities in the WIP in terms of land uses and key development opportunity areas. [PDF, 5.79 MB, 22 pages total]
- Shortage Of Viable Inventory
- Quality Anchor Tenants
- Proximity To Ports Of Los Angeles And Long Beach
- Strong Local Labor Force
- Land Use Organization
- Development Opportunity Focus Areas
- Land Use Strategy And Facility Prototypes
- Trucking And Salvage Use Considerations
Chapter VI, provides a development phasing strategy. [PDF, 4.83 MB, 22 pages total]
- Development Strategy Overview
- Phasing Strategy Methodology
- Recommended Development Phasing 87
  - Phase 0
  - Phase I
  - Phase II
  - Phase III
Chapter VII provides a public/private financing strategy. [PDF, 1.56 MB, 31 pages total]
- Estimation Of Project Financial Gap
- Financial Feasibility Results
- Project-wide Funding Strategy
- Sources Of Funds
- Phase I Sources And Uses
- Operations And Maintenance Funding
Chapter VIII provides an implementation strategy. [PDF, 320K, 26 pages total]
- Public/private Development Implementation
- Initiate Site Remediation Process
- Immediate Upgrade Strategy
- Modify Regulatory Framework
- Development Quality Strategy
- Comprehensive Circulation System
- Coordinate CRA And Land Owners
- Develop Phase Specific Financing Strategies
- Interim Development Strategies
- CRA Policy Initiatives
- Specific Implementation Priorities
- Conclusion

Volume II - Market Study - a market analysis supporting the Economic Adjustment Strategy.

Chapter I - Introduction [PDF, 3.6MB, 20 pages total]
- Regional Overview
- Wilmington Industrial Park Overview
- Local Economic Context
- CRA Development Goals
- Purpose and Methodology of Report
- Summary of Findings
- Organization of the Report
Chapter II - Regional Economic Analysis [PDF, 1MB, 21 pages total]
- Market Area Overview
- Prospects for the Los Angeles Manufacturing Sector
- Warehouse and Related Operations
Chapter III - Industrial Real Estate Market Conditions [PDF, 500K, 13 pages total]
- Inventory, Absorption, and Vacancy Trends
- Supply Response to Industrial Demand
- Policy-Driven Real Estate Demand
Chapter IV - Wilmington Industrial Park: Competitive Position and Outlook [PDF, 808K, 21 pages total]
- Existing Conditions
- Development Opportunities and Constraints
- Projected Industrial Activity
- Next Steps
Appendix A - Information Sources [PDF, 116K, 4 pages total]

Volume III - Geotechnical and Environmental Evaluation - a compilation of technical reports, including a tax increment discussion and a detailed geotechnical report.

Chapter I - Introduction [PDF, 1.4MB, 6 pages total]
Chapter II - Data Review [PDF, 2MB, 7 pages total]
Chapter III - Site Conditions [PDF, 8.2MB, 18 pages total]
Chapter IV - Conclusions and Recommendations [PDF, 10.1MB, 10 pages total]
Chapter V - Limitations [PDF, 502K, 1 page total]
Chapter VI - Bibliography [PDF, 1.2MB, 2 pages total]
Appendix A - Selected Boring Logs [PDF, 13.3MB, pages total]
Appendix B - Environmental Soil Treatment Costs [PDF, 86K, 15 pages total]