HomeMy WebLinkAboutHuntington Beach Edinger Corridor Economic Market Study Council/Agency Meeting Held: I - (a - 4 S
Deferred/Continued to:
Approved ❑ Conditionally Approved ❑ Denied City Clerk's Signature
Council Meeting Date: November 6, 1995 Department ID Number: ED 95-40
CITY OF HUNTINGTON BEACH
REQUEST FOR COUNCIL/REDEVELOPMENT AGENCY ACTION
SUBMITTED TO: Honorable Mayor/Chairman And City Council
Members/Redevelopment Agency Members
SUBMITTED BY: Michael T. Uberuaga, City Administrator/Executive Direct
PREPARED BY: David C. Biggs, Director of Economic Development
SUBJECT: APPROVAL OF THE CITY OF HUNTINGTON BEACH EDINGER
CORRIDOR ECONOMIC MARKET STUDY
Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment( �.
Statement of Issue: The City of Huntington Beach has often stated its commitment to
improving the economic base of the City, most recently through the City Council's adoption
on October 16, 1995, of the City's first Economic Development Strategy. Recognizing the
importance of the Edinger Corridor to the overall growth and success of the City's economic
base, in February, 1995, the City retained Cunningham & Associates to prepare an action-
plan for the future improvement of this corridor between Beach and Goldenwest. The
attached Study has been reviewed and was approved unanimously by the. City Council
Economic Development Committee on October 13,1995.
Funding Source: None as a Result of this Action.
Recommended Action: Motion to:
1) Adopt the recommendations contained within the Edinger Corridor Study.
2) Authorize staff to implement recommendations in priority order according to
availability of funding and staff.
Alternative Action(s):
1) Do not adopt the Edinger Corridor Study.
2) Direct staff to modify the Edinger Corridor Study.
REQUEST FOR uOUNCIL/REDEVELOPMENTIENCY ACTION
MEETING DATE: November 6, 1995 DEPARTMENT ID NUMBER: ED 95-40
Analysis: Despite its strategic geographic location and strong consumer demographics,
key parts of the Edinger Corridor have suffered declining retail sales performance in recent
years. For example, exacerbated by the relocation to the Westminster Mall of the J.C.
Penny department store in 1993, annual sales tax revenues generated by the Huntington
Beach Mall have slipped from a high in 1990 of$1.28 million to its current level of $827,000.
Penney's departure from the Mall is indicative of the challenging situation faced by the Mall
in particular and all of the Edinger Corridor in general.
From a retail location strategy, the Edinger/Beach intersection, located at the 405 freeway, is
" Main and Main" for this area. This intersection represents the City's northern retail anchor
with the downtown serving as the southern anchor. Edinger Corridor accounts for over 10%
of the City's total sales-tax receipts, down from nearly 13% only three years ago.
Recognizing the strategic importance of this area, the city conducted a series of workshops
between 1989 and 1993 focusing on revitalization of the Mall and potential street
improvements for the Edinger corridor. These studies were reviewed by Mr. Cunningham
with appropriate findings from these efforts included in this current Study.
The following are the recommended implementation measures from the attached Edinger
Corridor Economic Market Study:
1) Implement a joint city-property owner retail tenant marketing program targeted
toward large discount retailers, movie theaters and restaurants.
2) Adopt a property owner/tenant incentive program designed to encourage new
investment and construction.
3) Complete public improvements related to traffic circulation, landscaping, and
signage to increase access, visibility and identity.
4) Encourage expansion and redesign of the Huntington Beach Mall around an
entertainment/retail theme with buildings physically oriented more toward Edinger
Avenue.
5) Formulate a specific plan overlay for private properties and for public improvements.
6) Extend Redevelopment Agency time and dollar limitations in order to maximize
available economic development tools and prerogatives. In particular, maintain eminent
domain authority as recommended by the Project Area Merger/Amendment Feasibility
Analysis.
EDCORRCA.DOC -2- 10/25/95 12:03 PM
REQUEST FOR%UNCIL/REDEVELOPMENT AGENCY ACTION
MEETING DATE: November 6, 1995 DEPARTMENT ID NUMBER: ED 95-40
Environmental Status: N/A
Attachment(s):
NumberCity Clerk's
Page
1.
i orridor conomic Market Stud .
Edinger er C E
Y 9
EDCORRCA.DOC -3- 10/25/95 12:03 PM
Cunningham & Associates
MUNICIPAL MANAGEMENT CONSULTING
..
QED/LAGER CORR DOR
. . .... .
CONOM/C MARKET 5TC/ I
Submitted to.-
City of Huntington Beach Redevelopment Agency
October, 1995
673 Vista Bonita ' Newport Beach,California 92660 ' 714/644-7304 ' FAX 714/644-9357
TABLE OF CONTENTS
Paee
1. Introduction....................................................................................................................3-4
2. General Plan Update.......................................................................................................4-6
3. Related Studies...............................................................................................................6-8
4. Trade Area Characteristics.............................................................................................8-9
5. Retail Trends..............................................................................................................10-12
6. City/Redevelopment Agency Initiatives......................................................................13-15
7. Tenant Attraction Marketing......................................................................................15-17
8. Public Improvements.............:....................................................................................17-19
9. Conclusion/Recommendations...................................................................................19-20
1
ATTACHMENTS
Paee
A. Sales Tax Generated by Huntington Beach Mall.............................................................21
B. General Plan: Subarea Map.............................................................................................23
C. Huntington Center Revitalization Workshop:
Auto and Pedestrian Entry into Mall...............................................................................25
D. Trade Area Map: 5-Mile Ring.........................................................................................27
E. Huntington Beach Mall/Edinger Corridor
TotalRetail Sales.............................................................................................................29
F. Huntington Center Redevelopment Project
Area Assessed Valuation/Tax Increment Revenue..........................................................31
G. Huntington Center Redevelopment Project Area Map....................................................33
H. Edinger Corridor-Existing Conditions...........................................................................35
I. Edinger Corridor-Recommended Improvements..........................................................37
2
INTRODUCTION
The Edinger Corridor Economic Market Study addresses both near and long-term economic
development considerations related to the North Huntington Beach Business District area located
adjacent to the I405 Freeway. Straddling Edinger Avenue, a major east-west traffic arterial, the
corridor is dominated by retail-commercial land uses, and incorporates the Huntington Center
Redevelopment Project area. Increasingly, large discount retail outlets are choosing to locate along
Edinger or at the Huntington Beach Mall, a 900,000 square foot regional shopping center which forms
the primary retail nucleus of the area.
Despite its strategic geographic location and strong consumer demographics, the Edinger Corridor has
suffered declining retail sales performance in recent years. Exacerbated by the relocation of the
J.C.Penney department store in 1993, annual sales tax revenues generated by the Huntington Beach
Mall have slipped from a high of$1.28 million in 1990 to its current level of$827,000 for calendar year
1994. Penney's departure is indicative of the challenging situation faced by the mall in particular, and
the surrounding retail area in general. (Attachment`A')
The attached map delineates the boundaries of the Edinger Corridor for the purposes of this study.
(Attachment `B') The corridor links Edinger Avenue to Beach Boulevard in the vicinity of the 405-
Freeway. This intersection represents the City's primary northern retail anchor with the downtown
business district serving as its southern anchor. The area is important to the City's economic base both
3
for this reason, and because it accounts for 10.3% of the City's approximately $15 million total annual
retail sales tax revenues from all outlets.
GENERAL PLAN UPDATE
The City is currently undergoing an update of its General Plan, the policy document which governs
long-range planning and development issues. Several elements of the Plan, including Land Use,
Circulation, Urban Design, and Economic Development, are concerned with future growth along the
Edinger Corridor.
The intersection of Beach Boulevard/Edinger Avenue/1405 Freeway represents the focal point of what
is commonly known as the North Huntington Beach Business District. The Land Use Element
identifies this area as the City s only "Regional Commercial Core." Six distinct subareas comprise this
key business district:
• Huntington Center(Huntington Beach Mall)
• Corporate Center(One Pacific Plaza)
• Edinger Corridor
• "Old World"
• `Student Center"
• Transit Center
4
The Element defines the area-wide functional role of the regional core as follows: "Enhance
Huntington Center, the Edinger Corridor, and adjacent properties as a key focal point of regional
commerce." Specific land uses which are permitted and encouraged within the overall district currently
include:
• Commercial General(CG)
• Commercial Office(CO)
• Commercial Regional(CR)
• Mixed-Use Horizontally Integrated Housing(N"
The land use designations slated for the six subareas by the Land Use Element are intended to facilitate
both new development and rehabilitation of existing structures which will encourage the emergence of
the Edinger CorridorNNorth Huntington Beach Business District as a significant major destination
within the larger West Orange County region. At its optimum level of development, in terms of land
use type, density, and design, the area is envisioned to be a commercial hub integrating retail, office,
and multi-family residential uses. High volume discount or "big box" retail, in particular, is viewed as
an appropriate market niche for the area which could serve as a catalyst for other desirable
development and economic growth.
The Economic Development Element of the General Plan is especially important to the Edinger
Corridor because of its focus upon the financial contribution made by the area to the City's overall
5
economic health and vitality. This Element provides the framework and direction from a long-range
planning perspective for the creation of various"economic development strategies" designed to achieve
more immediate objectives related to expansion of the local tax base, business attraction and retention,
and job creation. In addition to a recently completed citywide Economic Development Strategy, this
Element has provided the impetus for the Edinger Corridor Economic Market Study as well as an
Economic Development Long-Range Opportunities and Constraints Analysis. Each of these strategies
contribute to the implementation of the general economic development goals outlined within the
Economic Development Element.
RELATED STUDIES
In addition to the City General Plan, several other important studies related to the Edinger Corridor
have been completed, thereby attesting to its prominence from a community development perspective.
The following historical documents have been utilized and referenced for the purposes of this report:
• "Precise Plan of Street Improvements for Edinger Avenue" (April, 1992)
• "Huntington Center Revitalization Workshop(December, 1990)
• "Huntington Beach Center Signage and Orientation Workshop(June, 1990)
• Edinger Corridor Study(September, 1989)
Each of the aforementioned reports have contributed significantly to the factual knowledge base
regarding this key subsector of the overall Huntington Beach economy. In the 1990 Revitalization
6
Workshop, one alternative development scenario envisioned a major expansion of the shopping mall,
with an accompanying widening of Edinger Avenue which is analyzed in greater detail by the 1992
Precise Plan for Street Improvements. As illustrated by the following design concept borrowed from
the workshop report, (Attachment `C') the mall could be expanded toward Edinger onto the open
expanse currently utilized for surface parking thereby creating a much closer orientation to the street.
In addition to two new anchor stores, this scenario recommended that an 8-screen multiplex of movie
theaters be included. The plan assumed the realignment of the 405-Freeway southbound off-ramp at
Beach Boulevard which has yet to occur and is considered to be important from a circulation
standpoint to the long-term economic viability of both the mall and the Edinger Corridor.
The workshop and other studies were conducted prior to the relocation of J.C. Penney's and the recent
sale of The Broadway chain to Federated Department Stores bringing-the future of the Huntington
Beach Mall store into question. A new Federated-owned department store(e.g., Macy's or Bullock's)
is a possibility as a replacement for The Broadway, although declining sales activity at the mall since
the time of the workshop has brought the entire concept of a traditional retail shopping center into
question. The addition of large discount retail stores like Burlington Coat Factory and Barnes and
Noble Books to the center are basically in line with the workshop's recommendation for an emphasis
on the mid-line promotional center market. The appropriateness of the mall expansion toward Edinger
and the addition of theater screens have not been altered by the changing general economy. This
appears to be an economically viable, and inevitable, future market focus for the mall. An alternate
7
scenario could involve the complete or partial demolition of the existing Mall and its replacement with
a development specifically designed to enhance a discount retail/entertainment theme.
TRADE AREA CHARACTERISTICS
As illustrated by the attached trade area map(Attachment `D'), the Edinger Corridor faces heavy retail
competition within the 5-mile ring radiating from the Beach Boulevard/Edinger/1405 intersection. In
addition to the Huntington Beach Mall, the immediate area is served by one other super regional
shopping center,the 1 million-plus square foot Westminster Mall, which is only one mile away and just
over the city boundary. Despite being located approximately seven miles away in Costa Mesa, the
mammoth South Coast Plaza Center also comes into play from a competitive standpoint due to its
relatively easy access from Huntington Beach along the I405 Freeway. Three regional centers - The
Pavilion and the Westminster Center in Westminster, and the Garden Promenade in Garden Grove -
range from 300,000 to over 500,000 square feet in gross leasable area, thus adding significant
competition to an already saturated mid-range retail market trade area.
It is interesting to note, however, that all of the above mentioned retail competition is concentrated
toward the City's northern end along the I405 Freeway, while its strongest demographics are apparent
to the south nearer to high-income, beach-oriented residential areas. The nearest major shopping
opportunities, besides the Edinger Corridor area, for these coastal residents are Fashion Island in
Newport Beach to the south and Marina Pacifica in Long Beach to the north(which is currently being
8
rennovated). Each of these centers leave something to be desired for the Huntington Beach consumer,
either due to lack of geographic accessibility,competitive pricing, and/or range of product choices.
Huntington Beach's consumer demographic profile is impressive and largely untapped in terms of retail
sales potential. Recent studies estimate the City's total retail sales leakage - that is, retail purchases
made by city residents outside city boundaries - at between $80 million to $250 million annually.
Conservatively, this outflow amounts to at least$1 million per year in potential sales tax revenue being
lost to the City General Fund.
Huntington Beach residents are affluent and highly educated, two consumer traits which spell
tremendous additional economic potential for the Edinger Corridor area. Recent demographic analyses
of the resident population reveals the following general trends:
• High income($53,000 median household)
• Low unemployment(5%)
• High education(32%college graduates)
• High"white collar" employment(71%professional/managerial)
• High owner-occupied housing(55%home owners)
• High housing values($236,000 median)
Source: Focus: Orange County, 1995 and Urban Decision Systems
9
RETAIL TRENDS
Previous studies have indicated that the greatest share of retail sales leakage from the City is occurring
in three key subsectors-restaurants, apparel, and general merchandise. The Edinger Corridor area has
an excellent opportunity to capitalize on these gaps in the existing retail trade sector. As mentioned
previously, the corridor is beginning to emerge as a significant large discount retail center. In addition
to Burlington Coat Factory and Barnes and Noble, key national tenants include Circuit City, Office
Depot, Staples, Men's Warehouse, Home Depot, Toys R Us, Mervyn's, and Kids R Us. The presence
of such name retailers can serve as a catalyst for attracting similar tenants as well as complimentary
users like restaurants and theaters. One regional shopping center which has been very successful in this
regard is the Tustin Marketplace which began with mainly big box retail tenants and evolved into
something greater than the sum of its individual parts by bringing in trendy restaurant and
entertainment-oriented uses in the latter stages of development.
This trend may be viewed as what has been aptly termed the "demalling of America", whereby
traditional enclosed, twin department store anchored shopping centers are gradually changing into
more open air, entertainment-oriented gathering places. This new atmosphere affords consumers the
opportunity to participate in a total shopping experience including browsing, dining, and entertainment
10
within an easily accessible, outdoor environment. Fashion Island at Newport Center and the Century
City Plaza adjacent to the Shubert Theater are good local examples of the new directions which retail
shopping areas are taking in the 1990's and beyond. Because of its discount retail emphasis, the Tustin
Marketplace may be closer in flavor, and therefore a more appropriate general model for the Edinger
Corridor.
The Huntington Beach Mall is the acknowledged retail anchor of the Edinger Corridor/North
Huntington Beach business district. Operated by the Mace Rich Company, this 1960's vintage mall
faced an ongoing trend of decline and loss of market share,but has shown recent signs of stability. The
Burlington Coat Factory and Barnes and Noble leases should help provide direction for other retail
growth along Edinger. Occupancy rates, which had recently slipped to an all-time low of 65 percent,
will be bolstered by the addition of these major tenants. Likewise,4th Quarter, 1994 sales, traditionally
the most active 3-month period during the year, were down by 34 percent from 1992. This negative
trend also served to pull down retail performance in the Edinger Corridor reflected by a 21 percent
decline over the same period for the area as a whole. (Attachment `E') Finally, property tax revenues
to the City have decreased, as well as tax increment revenues to the Redevelopment Agency which are
down by 43 percent, mainly due to a substantial drop in assessed value of the mall real estate.
(Attachment `F')
11
The mall needs to be the primary catalyst for change if the emerging make-over of the Edinger
Corridor is to achieve any large measure of success. In order for this change to occur, it appears to be
essential that the mall be at least renovated, and hopefully also enlarged. In the alternative, the Mall
could be partially or completely torn down and rebuilt in a more functional configuration which would
serve to improve its retail shopping viability. As indicated earlier in this report, the mall buildings could
benefit by being physically and architecturally oriented more towards the Beach Boulevard/Edinger
Avenue intersection. Access and visibility from the I405 Freeway also should be upgraded and
improved in order to effectively draw customers into the area. The presence of the mall, especially if a
department store continues to occupy the Broadway space, could provide a tremendous advantage to
the general discount retail orientation of the corridor by offering a measure of higher end comparison
shopping opportunities in the important apparel and general merchandise categories. Under the
preceding scenario, a major missing link for the mall would be the incorporation of movie theaters into
the tenant base mix. On the other hand, a decision by Federated Stores to permanently close the
current Broadway location could be a blessing in disguise by allowing the discount retail/entertainment
theme to emerge unfettered by the presence of a single, higher-end traditional department store anchor.
With or without the traditional department store, the mall and the corridor need movie screens in order
to offer the optimum range of shopping/entertainment alternatives. The addition of theaters more or
less automatically attracts restaurant uses to the immediate vicinity which would complete the circle of
desired venues available to shoppers along the Edinger Corridor, and help to enhance and define the
regional core area envisioned by the City General Plan.
12
CITYIREDEVELOPMENT AGENCY INITIATIVES
Without exerting undue influence over private business market forces, the City of Huntington Beach
and it's Redevelopment Agency are in an excellent position to provide policy leadership and direction,
as well as offer economic development incentives designed to assist the Edinger Conidor/North
Huntington Beach Business District in achieving its greatest potential.
As indicated by the attached map (Attachment `G'), a key portion of the Edinger Corridor area is
included within the boundaries of the Huntington Center Redevelopment Project Area. The existence
of the redevelopment area provides the City with an important economic development tool which can
be utilized to assist with revitalization efforts along the corridor. Under California Law, the
redevelopment process allows a locally controlled agency to pool property tax increment revenues
which can be directed in a number of specific ways. Redevelopment agencies can conduct any of the
following activities in order to reduce physical and/or economic blight conditions:
• Issue bonds backed by future tax increment revenues
• Acquire private property in order to assemble future development sites.
• Reduce or subsidize land costs in order to encourage desirable private development.
• Make loans to construct improvements or rehabilitate private property.
• Fund necessary public infrastructure improvements in support of private development.
13
Adopted in 1984, the Huntington Center Project Area is only now beginning to approach the
achievement of its stated redevelopment goals. In recent years, the Project Area has been hampered by
declining real estate values which have had the effect of eroding the annual amount of tax increment
revenues accruing to the Agency. Consequently, the area is suffering from a negative cash flow
situation on an annual basis. Up to this point in time, fund balance cash reserves have been
appropriated in order to stem the.tide of losses which amounted to nearly $1.5 million for the 1994/95
fiscal year. At the current rate, fund balance reserves are projected to be significantly reduced by the
conclusion of the 1998-99 fiscal year. The Agency is taking a number of steps to arrest and hopefully
reverse this alarming trend. These include the possibility of merging the Agency's five existing project
areas in order to improve the overall balance sheet, as well as amending certain provisions of the areas
underlying plans to extend various time and dollar limitations imposed upon it, including the power to
acquire private property through the eminent domain process.
Of equal or greater importance to maintaining the financial viability of the Project Area, however, is the
need to generate private real estate investment. This will result in expansion of the property tax base,
and hence, incremental revenues accruing to the Agency which can be used for redevelopment
purposes. Additional investment will also serve to bring more sales tax revenues to the City General
Fund thereby benefiting all residents. In order to help make this happen, the Agency must play an
active role in the economic development process by working to attract and retain those businesses
which contribute the most of the local economy in terms of jobs and tax base.
14
City government itself can also be a significant factor in the revitalization of the Edinger Corridor
through its planning and regulatory functions pertaining to zoning and land use. As discussed earlier in
this report, several Elements of the City General Plan directly impact the corridoes future direction and
focus. These documents provide a basic framework for such critically important issues as circulation,
signage, and design. Taken in combination with various supplemental studies also described
previously, the Plan essentially covers that which needs to be done in order to complete the
revitalization of the Corridor area. The next step as recommended by the General Plan is a Specific
Plan overlay which can be applied to individual parcels of private property, as well as required public
improvements, throughout the corridor area. The Specific Plan can go beyond general land use and
zoning requirements to require certain types of tenant uses on particular parcels. An example of this
relates to automobile service uses situated on the retail pads fronting Edinger Avenue. While such uses
might fit general commercial zoning criteria, they would not enhance the mixed use/entertainment-
oriented retail concept envisioned by various urban planners for the corridor area. Restaurants would
be much more desirable pad tenants in keeping with the preceding development theme.
TENANT ATTRACTION11Z9RICETING
As alluded to previously, the attraction of several types of commercial tenants are key to the ongoing
success of revitalization efforts within the Edinger Corridor/North Huntington Beach Business District.
The entertainment-oriented retail theme needs to include the following venues:
15
• Major discount retail outlets, especially Apparel and General Merchandise.
• Restaurants, especially large national chains.
• Movie theaters.
A coordinated tenant attraction marketing campaign needs to be undertaken as a joint venture between
major property owners/landlords and the City Economic Development Department, which includes
both the Redevelopment and Business Development functions. With Mace Rich as the most important
link in the chain, the City should begin by compiling a major property owner list for the entire Edinger
corridor area. This information is readily available from County Assessor data files. Once the list is
complete, City staff should directly contact each major property owner individually to discuss
anticipated future directions for the corridor area describing the advantages of the entertainment retail
theme, and the City's willingness to provide incentives, both financial and regulatory, to attract
particular tenants on a targeted basis. These incentives are detailed in the City Economic Development
Strategy along with objective rating criteria for gauging the level and extent of assistance provided. At
a minimum, specific incentives for corridor property owners and tenants should include:
• Assessment districts to assist with financing, parking, maintenance, security, promotions
and signage.
• Low interest loans for new construction,building rehabilitation, and tenant improvements.
Permit processing assistance for building improvements, landscaping, and business licenses.
16
Once the basic incentive package has been developed and "sold" to the major property owners, direct
tenant solicitation can begin. The steps in the targeted attraction campaign should proceed along the
following schedule:
• Utilizing available computerized mailing services such as Retail Lease Trac and Inside Prospects of
California to compile contact lists in the identified tenant categories.
• Conduct initial promotional mailings to targeted prospects including economic/demographic data
and information on available incentives.
• Place follow-up phone calls to all respondents, as well as any highly desired prospects (i.e. a
particularly appropriate restaurant or theater chain).
• Conduct site visits and city tours for interested prospects stressing business benefits of an Edinger
Corridor location.
The above-referenced tenant attraction process should be repeated on a continuous revolving basis in
order to demonstrate the City's commitment to achieving its economic development goals for the
Corridor area.
PUBLIC IMPROVEMENTS
The City General Plan and all of the previously cited related studies pertaining to the Edinger
Corridor/North Huntington Beach Business District have pointed to the need for significant additional
17
public improvements. Perhaps the most critical of these deficiencies relates the limited accessibility and
visibility of both the corridor and the mall from the I405 Freeway. (Attachment `H') The attached
circulation map aptly illustrates the difficulty which a shopper encounters when attempting to access
the corridor area. The vicinity is hard to reach from either direction on the I405, and is especially
confusing to reach from the southbound off-ramp which deposits drivers at the rear of the mall at
Center Avenue where a left or right turn must be made to reach Edinger or the mall. Moreover, the
mall and corridor is difficult to see from the southbound lanes and virtually invisible for those traveling
northbound. The impaired visibility is due to a combination of inadequate signage and overgrowth or
inappropriate freeway landscaping. The City is currently working with CalTrans on a landscape
improvement project in the vicinity of the south bound Edinger off-ramp which will be beneficial to the
area in general. As one alternative, the 1989 Edinger Corridor Study recommended a realignment of
the southbound off-ramp and a new public roadway leading through the mall directly to Edinger
Avenue. (Attachment `I') While a new driveway entrance is planned at the rear of the Mall, the public
street alternative would be much more desirable from a circulation standpoint. A public improvement
project of this kind could be financed through Community Facilities District Bonds, secured by
property tax assessments. The study also proposed a signage program for the corridor which would
more attractively identify "gateways, public streets, and private uses." Along these lines, consideration
should be given to constructing an additional I405 freeway readerboard sign situated to the north of
the existing auto dealer readerboard. Finally, a planned extension of Gothard Street,joining it with
18
Hoover Street immediately to the west of the Mall, will significantly improve access from the north to
both the Mall and the Corridor.
The logic of the aforementioned circulation and signage recommendations remains today, and should
be implemented along with median landscaping and street scape improvements along Edinger Avenue.
The length of the corridor currently has a barren look with little curb appeal for prospective shoppers.
Better signage and improved ingress and egress to and from businesses situated on Edinger would help
to create an area-wide theme and enhance sales.
CONCL USIONIR ECOMMENDA TIONS
The Edinger Corridor/North Huntington Beach Business District has the economic potential to truly
become the Regional Commercial Core envisioned by the General Plan. The combination of large
discount retail operations with movie theaters and dining opportunities could transform the corridor
into an attractive destination for comparison shopping and entertainment. While not the major focus at
this time, the integration of multi-family residential housing could serve to enhance the trade area
demographics thereby improving tenant attraction efforts. An aggressive public/private sector joint
tenant solicitation marketing campaign can provide the initial step in revitalizing the corridoes retail
base. Extensive public infrastructure, circulation, and streetscape improvements, along with a
comprehensive signage program, will serve to identify for shoppers and delineate the corridor area in
the process attracting additional tax base and jobs.
19 -
The following recommended implementation measures will assist City government, and the private
business sector in achieving mutually beneficial economic development goals:
Implement a joint city-property owner retail tenant marketing campaign targeted toward
large discount retailers, movie theaters, and restaurants.
• Adopt a property owner/tenant incentive program designed to encourage new investment
and construction.
• Complete public improvements related to traffic circulation, landscaping, and signage to
increase access,visibility, and identity.
Encourage expansion and redesign or replacement of the Huntington Beach Mall around
an entertainment/retail theme with buildings physically oriented more toward Edinger
Avenue.
• Formulate a specific plan overlay for private properties and for public improvements.
• Extend Redevelopment Agency time and dollar limitations in order to maximize available
economic development tools and prerogatives. In particular, maintain eminent domain
authority as recommended by the Project Area Merger/Amendment Feasibility Analysis.
20
ATTACHMENT "A"
CITY OF HUNTINGTON BEACH
SALES TAX GENERATED BY
HUNTINGTON BEACH MALL
Sales
Tax
$2 M
$1.5 M
$1.0 M
$500 K
-0-
Calendar
Year 1992 1993 1994
Source: Hinderliter,de Llamas&Associates
21
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LEGEND. t4J• < < 4J pac
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SUB-AREA MAP
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LEGEND
5 � 2. Mini Majors
5 0 � Zht,PleX Theater
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[ 1. QOo 4. Parking Structures
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6., Restaurant
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8. Mail Overilowl&m loyee
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1 e 5.i „>> 5. ,�,� �� �� ;— � , MARKET REVITALIZATION
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HWZYGTON BEACH
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Auto and
Pedestrian Entry into Mail. Illustration Shows How Street Fronting Shops
HuntingtonItitegrate Into Mail
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28
HUNTINGTON BEACH MALL/
EDINGER CORRIDOR
TOTAL RETAIL SALES
Sales
$550 M
Corridor
$500 M
$450 M
-21%
$400 M
$350 M
$300 M Mall
$250 M -34%
r-
4th Quarter 1992 1993 1994
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30
HUNTINGTON CENTER
REDEVELOPMENT PROJECT AREA
ASSESSED VALUATION/
TAX INCREMENT REVENUE
$250 M .
Assessed
Valuation
$200 M
-24%
$150 M
$2.5 M
$2.0 M Tax
Increment
$1.5 M
$1.0 M
-43%
Fiscal Year 1990/91 1992/93 1994/95
Source:City of Huntington Beach
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32
EXHIBIT A
Huntington Center Commercial Diat;:rt Redevelopment Plan 33
PROJECT AREA MAP*
McFADDEN AVE.
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is available upon request
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36
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RCA ROUTING SHEET
INITIATING DEPARTMENT: Economic Development
SUBJECT: Approval of the City of Huntington Beach
Edinger Corridor Economic Market Stud
COUNCIL MEETING DATE: November 6, 1995
RCA ATTACHMENTS STATUS
Ordinance (w/exhibits & legislative draft if applicable) Not Applicable
Resolution (w/exhibits & legislative draft if applicable) Not Applicable
Tract Map, Location Map and/or other Exhibits Not Applicable
Contract/Agreement (w/exhibits if applicable)
(Signed in full by the City Attorney) Not Applicable
Subleases, Third Party Agreements, etc. ,
(Approved as to form by City Attorney) Not Applicable
Certificates of Insurance (Approved by the City Attorney) Not Applicable
Financial Impact Statement (Unbudget, over $5,000) Not Applicable
Bonds (If applicable) Not Applicable
Staff Report (If applicable) Attached
Commission, Board or Committee Report (If applicable) Not Applicable
Findings/Conditions for Approval and/or Denial Not Applicable
................................... ...... ._.... .......... -....................-.._....................._................................................................._.......... .._..... -..._....
.........._... ................ -. - _................_._..................
EXPLANATI N F R MI FN ATTA HMENT
..... ........ . .. ......_
............. ......... .... ........ ...... ... ..... ......... ........ ........ ......_
REVIEWED RETURNED FORWARDED
.. ._ .... . ....
Administrative Staff
Assistant City Administrator Initial
City Administrator Initial
City Clerk
EXPLANATION FOR RETURN OF ITEM:
Only)(Below Space For City Clerk's Use
S.'oo �.M
Edinger Corridor
Economic Market Study
November, 1995
In the Works
Orange County has four major retail projects underway and four
proposed projects in the planning stages:
UNDER CONSTRUCTION
■.Irvine Entertainment Center: 250,000_square feet,anchored by
Edwards Cinema and Imax theater
■ Park Place: 155,000.square feet,anchored by Edwards Cinema
and Sport Chalet,in Irvine
■ Spectrum 5 Retail Home Center: 130,000-square-foot home
furnishings center in Irvine
■`_Metro Pointe: 400,000 square feet, near South Coast Plaza in
Costa Mesa
PROPOSEDPROJECTS"
■ Pacific Park Town Center: 400,000-square-foot addition to
Super Kmart Center would be anchored by 24-screen theater, in
Aliso Viejo
■ Irvine Pavilion: 300,000-square-foot addition to the Price Club
Center at Alton Parkway and Technology Drive
■ Tustin Marketplace: 450,000-square-foot addition to existing
Marketplace, to be anchored by an Edwards Cinema
■ Plaza Pacifica: 600,000-square-foot shopping center, in San
Clemente
Source:Grubb&Ellis Commercial Real Estate Services;Researched by GREG JOHNSON/Los Angeles .
Times
c
Background
• Workshops - 1989 to 1993
• Economic Development Element
■Economic Development Strategy
♦Edinger Corridor Study
■Long-Range Opportunities &
Constraints
2
Methodology
• Hire Cunningham & Associates -
February, 1995
• Mayor's Forum at Mall - April, 1995
• Economic Development Strategy
■October 16, 1995
• Edinger Corridor Study
■EDC Approved on October 13, 1995
3
Sales-Tax 4th Quarter
60o
500
-21% —Corridor
400
300 -34/0 0 —Mall
200
100
0
1992 1993 1994
4
Competition
• Westminster Mall
• South Coast Plaza
e Fashion Island
• Regional Centers:
• Westminster Center
• Garden Promenade
5
Future Competition
• Irvine Entertainment • Tustin Marketplace
Center @ 250,000 @ 450,000 sf
sf additional
• Metro Pointe, Costa • Irvine Pavilion @
Mesa @ 400,000 sf 300,000 sf
• Park Place, Irvine @ • Pacific Park, Aliso
155,000 sf Viejo @ 400,000 sf
6
Recommendations
• Implement Joint Marketing Effort
■Discount Retail, Theaters,
Restaurants
• Adopt Incentive Program
■New Investment and Construction
• Complete Public Improvements
■Circulation, Landscape, Signage
7
More Recommendations
• Huntington Beach Mall
■Expansion, Redesign, Theme
• Specific Plan
• Redevelopment Tools
■ Time, Money, Eminent Domain
8