Clara Expansion Park Renovation Measure A
Grant Agreement - 10122
Final Audit Report 2023-10-24
Created: 2023-10-19
By: Karmina Lopez ([email protected])
Status: Signed
Transaction ID: CBJCHBCAABAAS6kxm_9LXEhcpwphzWBBAmEoenmYQKIL "Clara Expansion Park Renovation Measure A Grant Agreement - 10122" History
Document created by Karmina Lopez ([email protected]) 2023-10-19 - 3:05:19 PM GMT- IP address: 173.196.252.156 Document emailed to [email protected] for signature 2023-10-19 - 3:15:57 PM GMT
Email viewed by [email protected]
2023-10-19 - 3:16:53 PM GMT- IP address: 40.94.29.254
Signer [email protected] entered name at signing as Parjack Ghaderi 2023-10-19 - 5:05:23 PM GMT- IP address: 136.226.67.25
Document e-signed by Parjack Ghaderi ([email protected]) Signature Date: 2023-10-19 - 5:05:25 PM GMT - Time Source: server- IP address: 136.226.67.25 Document emailed to [email protected] for signature 2023-10-19 - 5:05:27 PM GMT
Email viewed by [email protected]
2023-10-19 - 5:08:07 PM GMT- IP address: 187.144.87.252 Signer [email protected] entered name at signing as Alfonso Noyola 2023-10-23 - 11:50:17 PM GMT- IP address: 76.53.46.154
Document e-signed by Alfonso Noyola ([email protected]) Signature Date: 2023-10-23 - 11:50:19 PM GMT - Time Source: server- IP address: 76.53.46.154 Document emailed to Christina Angeles ([email protected]) for signature 2023-10-23 - 11:50:20 PM GMT
Email viewed by Christina Angeles ([email protected]) 2023-10-24 - 0:08:53 AM GMT- IP address: 172.56.208.49
Document e-signed by Christina Angeles ([email protected]) Signature Date: 2023-10-24 - 0:10:25 AM GMT - Time Source: server- IP address: 172.56.208.49 Agreement completed.
2023-10-24 - 0:10:25 AM GMT
Amendment No. 1 to Grant Agreement
Los Angeles County Regional Park and Open Space District Measure A Grant Program
Clara Expansion Park Renovation
Grant No.: 10122
City of Cudahy ("The Grantee") and the Los Angeles County Regional Park and Open Space District("The District") hereby agree to this Amendment No. 1 to the Grant Agreement.
Now, Therefore,
The Performance Period End Date: January 30, 2026
Is hereby deleted in its entirety and replaced as follows:
The Performance Period End Date: September 30, 2026
CITY OF CUDAHY
By:
Name:
Title:
Date:
LOS ANGELES COUNTY REGIONAL
PARK AND OPEN SPACE DISTRICT
By:
Name:
Title:
Date:
Richard Iglesias (Dec 4, 2025 14:29:42 PST)
Richard Iglesias Richard Iglesias Interim City Manager/City Clerk 12/04/2025 Mark Glassock (Dec 5, 2025 09:05:14 PST)
Mark Glassock Assistant District Administrator 12/05/2025
Amendment No. 2 to Grant Agreement
Los Angeles County Regional Park and Open Space District Measure A Grant Program
Clara Expansion Park Renovation
Grant No.: 10122
The City of Cudahy ("Grantee") and the Los Angeles County Regional Park and Open Space District ("RPOSD") hereby agree to this Amendment No. 2 to the Grant Agreement.
SPECIAL PROVISIONS:
1. Grantee must submit documentation to RPOSD that the project has received full funding by 9/1/2027. (Award letters or agreements for every outside source.) If not met, the grant ends September 30, 2027, with no further extension.
2. RPOSD will not approve requests for payment until proof of 100% construction documents are finalized per prior project status report.
Now, Therefore,
The Performance Period End Date: September 30, 2026
Is hereby deleted in its entirety and replaced as follows:
The Performance Period End Date: September 30, 2027
CITY OF CUDAHY
By:
Name:
Title:
Date:
LOS ANGELES COUNTY REGIONAL
PARK AND OPEN SPACE DISTRICT
By:
Name:
Title:
Date:
Christopher Lopez (Sep 29, 2026 09:25:21 PDT)
Christopher Lopez Christopher Lopez City Manager 09/29/2026 Mark Glassock (Sep 29, 2026 09:30:17 PDT) Mark Glassock Assistant District Administrator 09/29/2026
DocuSign Envelope ID: CAB46E16-C03B-44CF-9641-CB44958F2E66 4/21/2022
Attachment B
DocuSign Envelope ID: CAB46E16-C03B-44CF-9641-CB44958F2E66
DocuSign Envelope ID: CAB46E16-C03B-44CF-9641-CB44958F2E66
DocuSign Envelope ID: CAB46E16-C03B-44CF-9641-CB44958F2E66
DocuSign Envelope ID: CAB46E16-C03B-44CF-9641-CB44958F2E66
DocuSign Envelope ID: CAB46E16-C03B-44CF-9641-CB44958F2E66
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DocuSign Envelope ID: CAB46E16-C03B-44CF-9641-CB44958F2E66 4/21/2022
DocuSign Envelope ID: 422179F0-271D-4B70-9EED-A7562257AD12 4/21/2022
DocuSign Envelope ID: 422179F0-271D-4B70-9EED-A7562257AD12
DocuSign Envelope ID: 422179F0-271D-4B70-9EED-A7562257AD12
DocuSign Envelope ID: 422179F0-271D-4B70-9EED-A7562257AD12
DocuSign Envelope ID: 422179F0-271D-4B70-9EED-A7562257AD12
DocuSign Envelope ID: 422179F0-271D-4B70-9EED-A7562257AD12
DocuSign Envelope ID: 422179F0-271D-4B70-9EED-A7562257AD12
DocuSign Envelope ID: 422179F0-271D-4B70-9EED-A7562257AD12 4/21/2022
State of California - Natural Resources Agency
Department of Parks and Recreation
GRANT CONTRACT
General Fund
Specified Grants
PROJECT NO.
GRANTEE
Total State grant amount not to exceed
GRANTEE
The General and Special Provisions attached are made a part of and incorporated into the Contract.
By
Title
Date
Signature of Authorized Representative
By
Date
STATE OF CALIFORNIA
DEPARTMENT OF PARKS AND RECREATION
CERTIFICATION OF FUNDING
(For State Use Only)
AMOUNT ENCUMBERED BY THIS DOCUMENT
CONTRACT NO
FUND.
PRIOR AMOUNT ENCUMBERED FOR THIS
CONTRACT
FISCAL SUPPLIER I.D.
TOTAL AMOUNT ENCUMBERED TO DATE
$
ITEM CHAPTER STATUTE FISCAL YEAR
Reporting Structured. Account/Alt Account. PROJECT / WORK PHASE Los Angeles Neighborhood Land Trust
July 01, 2022 through June 30, 2026
2022/23
C5055076
3790-101-0001 43
Los Angeles Neighborhood Land Trust
$5,000,000.00
General Fund
37900091 5432000-5432000000
$5,000,000.00
Executive Director
0000014496
The GRANTEE agrees to the terms and conditions of this Contract, and the State of California, acting through its Director of Parks and Recreation, pursuant to the State of California, agrees to fund the total State grant amount indicated below. The GRANTEE agrees to complete the GRANT SCOPE(s) as defined in the GRANT SCOPE /Cost Estimate Form of the application(s) filed with the State of California.
Typed or printed name of Authorized Representative
GRANT PERFORMANCE PERIOD is from
22 AMENDMENT NO
$5,000,000.00
Address
ACTIVITY CODE
60067
CONTRACT PERFORMANCE PERIOD is from July 01, 2022 through June 30, 2026 6*
Tori
Kjer
Digitally signed
by Tori Kjer
Date:
2023.04.03
11:38:24 -07'00'
04/03/2023
1689 Beverly Blvd., Los Angeles, CA 90026
DocuSign Envelope ID: 179C5B7C-B238-4C26-8679-5955AD5E2095 4/4/2023
Attachment C Page 435 of 557
1 I. RECITALS
This CONTRACT is entered into between the California Department of Parks and Recreation (hereinafter referred to as “GRANTOR,” “DEPARTMENT” or “STATE”) and Los Angeles Neighborhood Land Trust (hereinafter referred to as “GRANTEE”).
The DEPARTMENT hereby grants to GRANTEE a sum (also referred to as “GRANT MONIES”) not to exceed $5,000,000, subject to the terms and conditions of this AGREEMENT and the 2022/23 California State Budget, Chapter 43, statutes of 2022, Item number – 3790-101-0001 (appropriation chapter and budget item number hereinafter referred to as “SPECIFIED GRANT”). These funds shall be used for completion of the GRANT SCOPE(S).
The Grant Performance Period is from July 01, 2022 to June 30, 2026.
II. GENERAL PROVISIONS
A. Definitions
As used in this CONTRACT, the following words shall have the following meanings:
1. The term “APPLICATION” means the individual project APPLICATION packet for a project pursuant to the enabling legislation and/or grant program PROCEDURAL GUIDE requirements.
2. The term “CONTRACT PERFORMANCE PERIOD” means the duration of time during which this CONTRACT is in effect.
3. The term “DEPARTMENT” or “STATE” means the California Department of Parks and Recreation.
4. The term “DEVELOPMENT” means capital improvements to real property by means of, but not limited to, construction, expansion, and/or renovation, of permanent or fixed features of the property.
5. The term “GRANTEE” means the party described as the GRANTEE in Section I of this AGREEMENT.
6. The term “GRANT PERFORMANCE PERIOD” means the period of time during which eligible costs may be incurred by the GRANTEE and paid for by the DEPARTMENT, as specified in the fully executed CONTRACT.
7. The term “GRANT PROJECT” means all real estate, leases, subleases, buildings, and other property acquired or developed with GRANT monies.
DocuSign Envelope ID: 179C5B7C-B238-4C26-8679-5955AD5E2095
2 8. The term “GRANT SCOPE” means the items listed in the GRANT SCOPE/Cost Estimate Form found in each of the APPLICATIONS submitted pursuant to this grant.
9. The term “PROCEDURAL GUIDE” means the document identified as the “Procedural Guide for Clara Park and the Maywood Riverfront Park Renovation Specified Grant.” The PROCEDURAL GUIDE provides the procedures and policies controlling the administration of the grant.
B. Project Execution
1. Subject to the availability of GRANT MONIES, the STATE hereby grants to the GRANTEE a sum of money not to exceed the amount stated in Section I of this CONTRACT, in consideration of, and on condition that, the sum be expended in carrying out the purposes as set forth in the scope described in the enabling legislation and referenced in the APPLICATION, Section I of this CONTRACT, and under the terms and conditions set forth in this CONTRACT.
The GRANTEE shall assume any obligation to furnish any additional funds that may be necessary to complete the GRANT SCOPE(S).
During the CONTRACT PERFORMANCE PERIOD, the GRANTEE agrees to submit any proposed change or alteration from the original GRANT SCOPE(S) in writing to the STATE for prior approval. This applies to any and all proposed changes that will occur after STATE has approved the APPLICATION. Changes in the GRANT SCOPE(S) must first be approved in writing by the STATE.
2. The GRANTEE shall complete the GRANT SCOPE(S) in accordance with the time of the Performance Period set forth in Section I of this CONTRACT, and under the terms and conditions of this contract.
3. The GRANTEE shall comply with the California Environmental Quality Act (Public Resources Code, Section 21000, et seq., Title 14, California Code of Regulations, Section 15000 et seq.).
4. The GRANTEE shall comply with all applicable current laws and regulations affecting DEVELOPMENT projects, including, but not limited to, legal requirements for construction contracts, building codes, health and safety codes, and laws and codes pertaining to individuals with disabilities, including but not limited to the Americans With Disabilities Act of 1990 (42 U.S.C. §12101 et seq.) and the California Unruh Act (California Civil Code §51 et seq.) C. Project Costs
1. GRANTEE agrees to abide by the PROCEDURAL GUIDE.
2. GRANTEE acknowledges that STATE may make reasonable changes to its procedures as set forth in the PROCEDURAL GUIDE. If STATE makes any changes to its procedures and guidelines, STATE agrees to notify GRANTEE within a reasonable time.
DocuSign Envelope ID: 179C5B7C-B238-4C26-8679-5955AD5E2095
3 D. Project Administration
1. If GRANT MONIES are advanced for DEVELOPMENT projects, the advanced funds may be placed in an interest bearing account until expended. Interest earned on the advanced funds shall be used on the project as approved by the STATE. If grant monies are advanced and not expended, the unused portion of the grant and any interest earned shall be returned to the STATE within 60 days after project completion or end of the GRANT PERFORMANCE PERIOD, whichever is earlier.
2. During the GRANT PERFORMANCE PERIOD, the GRANTEE shall submit written project status reports within 30 calendar days after the STATE has made a specific request. All such project status reports shall be signed and certified as complete and accurate by the authorized representative of the GRANTEE. In any event, the GRANTEE shall provide the STATE a report showing total final project expenditures within 60 days of project completion or the end of the GRANT PERFORMANCE PERIOD, whichever is earlier. The GRANT PERFORMANCE PERIOD is identified in Section I of this CONTRACT.
3. The GRANTEE shall make property or facilities acquired and/or developed pursuant to this contract available for inspection upon request by the STATE.
E. Project Termination
1. Project Termination refers to the non-completion of a GRANT SCOPE. Any grant funds that have not been expended by the GRANTEE shall revert to the STATE.
2. The GRANTEE may unilaterally rescind this contract at any time prior to the commencement of the project. The commencement of the project means the date of the letter notifying GRANTEE of the award or when the funds are appropriated, whichever is later. After project commencement, this contract may be rescinded, modified or amended only by mutual CONTRACT in writing between the GRANTEE and the STATE, unless the provisions of this contract provide that mutual CONTRACT is not required.
3. Failure by the GRANTEE to comply with the terms of the (a) PROCEDURAL GUIDE, (b) this CONTRACT or any other grant contracts, specified or general, that GRANTEE has entered into with STATE or any other department, agency, commission or other subdivision of California State government, may be cause for suspension of all obligations of the STATE unless the STATE determines that such failure was due to no fault of the GRANTEE. In such case, STATE may reimburse GRANTEE for eligible costs properly incurred in performance of this CONTRACT despite non-performance of the GRANTEE. To qualify for such reimbursement, GRANTEE agrees to mitigate its losses to the best of its ability.
4. Any breach of any term, provision, obligation or requirement of this CONTRACT by the GRANTEE shall be a default of this CONTRACT. In the case of any default by GRANTEE, STATE shall be entitled to all remedies available under law and equity, including but not limited to: a) Specific Performance; b) Return of all GRANT MONIES; c) Payment to the STATE of the fair market value of the project property DocuSign Envelope ID: 179C5B7C-B238-4C26-8679-5955AD5E2095
4 or the actual sales price, whichever is higher; and d) Payment to the STATE of the costs of enforcement of this CONTRACT, including but not limited to court and arbitration costs, fees, expenses of litigation, and reasonable attorney fees.
5. The GRANTEE and the STATE agree that if the GRANT SCOPE includes DEVELOPMENT, final payment may not be made until the work described in the GRANT SCOPE is complete and the GRANT PROJECT is open to the public.
F. Budget Contingency Clause
If funding for any fiscal year is reduced or deleted by the budget act for purposes of this program, the STATE shall have the option to either cancel this contract with no liability occurring to the STATE, or offer a CONTRACT amendment to GRANTEE to reflect the reduced grant amount. This Paragraph shall not require the mutual CONTRACT as addressed in Paragraph E, subsection 2, of this CONTRACT G. Hold Harmless
1. The GRANTEE shall waive all claims and recourse against the STATE including the right to contribution for loss or damage to persons or property arising from, growing out of or in any way connected with or incident to this CONTRACT except claims arising from the concurrent or sole negligence of the STATE, its officers, agents, and employees.
2. The GRANTEE shall indemnify, hold harmless and defend the STATE, its officers, agents and employees against any and all claims, demands, damages, costs, expenses or liability costs arising out of the ACQUISITION, DEVELOPMENT, construction, operation or maintenance of the property described as the project which claims, demands or causes of action arise under California Government Code Section 895.2 or otherwise except for liability arising out of the concurrent or sole negligence of the STATE, its officers, agents, or employees.
3. The GRANTEE agrees that in the event the STATE is named as codefendant under the provisions of California Government Code Section 895 et seq., the GRANTEE shall notify the STATE of such fact and shall represent the STATE in the legal action unless the STATE undertakes to represent itself as codefendant in such legal action in which event the GRANTEE agrees to pay the STATE’s litigation costs, expenses, and reasonable attorney fees.
4. The GRANTEE and the STATE agree that in the event of judgment entered against the STATE and the GRANTEE because of the concurrent negligence of the STATE and the GRANTEE, their officers, agents, or employees, an apportionment of liability to pay such judgment shall be made by a court of competent jurisdiction.
Neither party shall request a jury apportionment.
5. The GRANTEE shall indemnify, hold harmless and defend the STATE, its officers, agents and employees against any and all claims, demands, costs, expenses or DocuSign Envelope ID: 179C5B7C-B238-4C26-8679-5955AD5E2095
5 liability costs arising out of legal actions pursuant to items to which the GRANTEE has certified. The GRANTEE acknowledges that it is solely responsible for compliance with items to which it has certified.
H. Financial Records
1. The GRANTEE shall maintain satisfactory financial accounts, documents, including loan documents, and all other records for the project and shall make them available to the STATE for auditing at reasonable times. The GRANTEE also agrees to retain such financial accounts, documents and records for five years following project termination or final payment.
2. The GRANTEE shall keep such records as the STATE shall prescribe, including records which fully disclose (a) the disposition of the proceeds of STATE funding assistance, (b) the total cost of the project in connection with such assistance that is given or used, (c) the amount, source and nature of that portion of the project cost supplied by other sources, and (d) any other such records that will facilitate an effective audit.
3. The GRANTEE agrees that the STATE shall have the right to inspect and make copies of any books, records or reports pertaining to this contract or matters related thereto during regular office hours. The GRANTEE shall maintain and make available for inspection by the STATE accurate records of all of its costs, disbursements and receipts with respect to its activities under this CONTRACT, and shall provide copies of all such records to STATE in its certified status reports upon request by the STATE. Such accounts, documents, and records shall be retained by the GRANTEE for at least five years following final payment.
4. The GRANTEE shall use a generally accepted accounting system.
I. Use of Facilities
1. The GRANTEE agrees that the GRANTEE shall operate and maintain, and retain full control of the property acquired or developed with the GRANT MONIES, for the duration of the CONTRACT PERFORMANCE PERIOD.
2. The GRANTEE agrees that, during the CONTRACT PERFORMANCE PERIOD, the GRANTEE shall use the property acquired or developed with grant funds under this CONTRACT only for the purposes of this grant and no other use, sale, assignment, transfer, mortgage, or other disposition or change of the control or use of the property or of any interest in the property to one not consistent with the grant purpose shall be permitted except as authorized by the DEPARTMENT and the property shall be replaced with property of equivalent value and usefulness as determined by the STATE.
DocuSign Envelope ID: 179C5B7C-B238-4C26-8679-5955AD5E2095
6 3. The property acquired or developed may be transferred or assigned to another entity only if the successor entity assumes the obligations imposed under this CONTRACT and only with the prior approval of STATE.
4. Any real Property (including any portion of it or any interest in it, including any leases) may not be used as security or collateral for any debt, loan or mitigation, without the prior written approval of the STATE, provided that such approval shall not be unreasonably withheld as long as the purposes for which the grant was awarded are maintained. Any such permission that is granted does not make STATE a guarantor or a surety for any debt, loan or mitigation, nor does it waive STATE’s rights to enforce performance under the CONTRACT.
5. All real property (including any portion or interest in it, including any leases), or rights thereto, acquired with GRANT MONIES shall be subject to an appropriate form of restrictive title, rights, or covenants approved by the STATE. If the project property is taken by use of eminent domain, GRANTEE shall reimburse STATE an amount at least equal to the amount of grant monies received from STATE or the pro-rated full market value of the real property, including improvements, at the time of sale, whichever is higher.
6. If eminent domain proceedings are initiated against GRANTEE, GRANTEE shall notify STATE within 10 days of receiving the complaint.
J. Nondiscrimination
1. The GRANTEE shall not discriminate against any person on the basis of sex, race, color, national origin, age, religion, ancestry, sexual orientation, or disability in the use of any property or facility developed pursuant to this CONTRACT.
2. The GRANTEE shall not discriminate against any person on the basis of residence except to the extent that reasonable differences in admission or other fees may be maintained on the basis of residence and pursuant to law.
3. All facilities shall be open to members of the public generally, except as noted under the special provisions of this project contract or under provisions of the enabling legislation and/or grant program.
K. Severability
If any provision of this CONTRACT or the application thereof is held invalid, that invalidity shall not affect other provisions or applications of the CONTRACT which can be given effect without the invalid provision or application, and to this end the provisions of this CONTRACT are severable.
DocuSign Envelope ID: 179C5B7C-B238-4C26-8679-5955AD5E2095
7 L. Liability
1. STATE assumes no responsibility for assuring the safety or standards of construction, site improvements or programs related to the GRANT SCOPE.
The STATE’S rights under this CONTRACT to review, inspect and approve the GRANT SCOPE and any final plans of implementation shall not give rise to any warranty or representation that the GRANT SCOPE and any plans or improvements are free from hazards or defects.
2. GRANTEE shall ensure that any contractor hired has adequate liability insurance, performance bond, or other security necessary to protect the GRANTEE interest and the STATE’s interest against poor workmanship, fraud, or other potential loss associated with the completion of the GRANT PROJECT.
M. Assignability
Without the written consent of the STATE, the GRANTEE’S interest in and control of any portion of the GRANT PROJECT and responsibilities under this CONTRACT shall not be assignable or transferable by the GRANTEE either in whole or in part.
N. Use of Grant Monies
GRANTEE shall not use any grant funds (including any portion thereof) for the purpose of making any leverage loan, pledge, promissory note or similar financial device or transaction, without: 1) the prior written approval of the STATE; and 2) any financial or legal interests created by any such leverage loan, pledge, promissory note or similar financial device or transaction in the project property shall be completely subordinated to this CONTRACT through a Subordination Agreement provided and approved by the STATE, signed by all parties involved in the transaction, and recorded in the County Records against the fee title of the project property.
O. Section Headings
The headings and captions of the various sections of this CONTRACT have been inserted only for the purpose of convenience and are not a part of this CONTRACT and shall not be deemed in any manner to modify, explain, or restrict any of the provisions of this CONTRACT
P. Waiver
Any failure by a party to enforce its rights under this CONTRACT, in the event of a breach or default, shall not be construed as a waiver of said rights; and the waiver of any breach or default under this CONTRACT shall not be construed as a waiver of any subsequent breach.
DocuSign Envelope ID: 179C5B7C-B238-4C26-8679-5955AD5E2095
8 III. SPECIAL PROVISIONS
On March 4, 2022, Governor Gavin Newsom issued Executive Order N-6-22 (the EO) regarding Economic Sanctions against Russia and Russian entities and individuals. “Economic Sanctions” refers to sanctions imposed by the U.S. government in response to Russia’s actions in Ukraine, as well as any sanctions imposed under state law. The EO directs state agencies to terminate contracts with, and to refrain from entering any new contracts with, individuals or entities that are determined to be a target of Economic Sanctions. This Executive order extends to recipients of any State Grants (Grantee).
Grantees include those who have contracted or will contract to receive State grants funds. Accordingly, should the State determine that a Grantee is a target of Economic Sanctions or is conducting prohibited transactions with sanctioned individuals or entities, that shall be grounds for termination of this agreement. The State shall provide the Grantee advance written notice of such termination, allowing the Grantee at least 30 calendar days to provide a written response. Termination of any contract found to be in violation of this Executive Order shall be at the sole discretion of the State. _Los Angeles Neighborhood Land Trust____________________________________
GRANTEE
By:__________________________________
Signature of Authorized Representative
Title: _________________________________
Date: _________________________________
STATE OF CALIFORNIA
DEPARTMENT OF PARKS AND RECREATION
By: _________________________________
Signature of Authorized Representative
Title: _________________________________
Date: _________________________________
Tori
Kjer
Digitally signed
by Tori Kjer
Date:
2023.04.03
11:38:59 -07'00'
DocuSign Envelope ID: 179C5B7C-B238-4C26-8679-5955AD5E2095 Supervisor
4/4/2023
State of California - Natural Resources Agency
Department of Parks and Recreation
AMENDMENT TO CONTRACT
Contract # C5055076 Amendment # 1
THIS AMENDMENT is hereby made and agreed upon by the State of California, acting through the Director of the Department of Parks and Recreation and by the Los Angeles Neighborhood Land Trust
The STATE and, Los Angeles Neighborhood Land Trust in mutual consideration of the promises made herein and in the Grant Contract in which this is an amendment, do promise as follows:
• To extend the Grant and Contract Performance Period End Dates to June 30, 2030 In all other respects, the Grant Contract of which this is an amendment, and the terms and conditions if relevant thereto, shall remain in full force and effect. In witness whereof the parties hereto have executed this amendment as of the date entered below. _Los Angeles Neighborhood Land Trust_ STATE OF CALIFORNIA
GRANTEE DEPARTMENT OF PARKS AND RECREATION
By _____________________________ By ________________________________ Typed or printed name of Authorized Representative ________________________________ Signature of Authorized Representative Title __Executive Director__________________________
Date ____________________________ Date ______________________________
CERTIFICATION OF FUNDING
(For State Use Only)
______________________________________________________________________________
CONTRACT NO
C5055076
AMENDMENT NO
1 FISCAL SUPPLIER I.D.
0000014496
PROJECT NO
SG-19-118
SG-19-134
AMOUNT ENCUMBERED BY THIS
DOCUMENT
$0
FUND
General Fund
PRIOR AMOUNT ENCUMBERED BY THIS
CONTRACT
$5,000,000
ITEM
3790-601-0001
CHAPTER
249
STATUTE
22 FISCAL YEAR
2025/26
TOTAL AMOUNT ENCUMBERED TO DATE
$5,000,000
Reporting Structured
37900091
Account/Alt Account
5432000-
5432000000
ACTIVITY CODE
60067
PROJECT/WORK
PHASE
Tori
Kjer
Digitally signed
by Tori Kjer
Date:
2026.01.12
11:17:15 -08'00'
Docusign Envelope ID: 99D48075-AB04-4C61-AD9E-F906ABB6E03C 1/16/2026
2 General Fund Specified Program Grant Contract
I. RECITALS
This Grant Contract is entered into between the California Department of Parks and Recreation (hereinafter referred to as “DEPARTMENT” or “STATE”) and Los Angeles Neighborhood Land Trust (hereinafter referred to as “GRANTEE”).
The DEPARTMENT hereby grants to GRANTEE a sum (also referred to as “grant funds”) not to exceed _$5,000,000, subject to the terms and conditions of this Grant Contract and the 2025/26 California State Budget, Chapter 249, statutes of 2022, Item number – 3790-601-0001 (appropriation chapter and budget item number hereinafter referred to as “Specified Grant”).
These funds shall be used for completion of the GRANT SCOPE(S).
The Grant Performance Period is from _July 01, 2022_ to _June 30, 2030_.
II. GENERAL PROVISIONS
A. Definitions
As used in this Grant Contract, the following words shall have the following meanings:
1. The term “APPLICATION” means the individual project APPLICATION packet for a project pursuant to the enabling legislation and/or grant program process GUIDE requirements.
2. The term “CONTRACT PERFORMANCE PERIOD” means the duration of time during which this Grant Contract is in effect.
3. The term “DEPARTMENT” or “STATE” means the California Department of Parks and Recreation.
4. The term “GRANTEE” means the party described as the GRANTEE in Section I of this Grant Contract.
5. The term “GRANT PERFORMANCE PERIOD” means the period of time during which eligible costs may be incurred by the GRANTEE and paid for by the DEPARTMENT, as specified in the fully executed Grant Contract.
6. The term “GRANT SCOPE” means the items listed in the GRANT SCOPE/Cost Estimate Form found in each of the APPLICATIONS submitted pursuant to this grant.
7. The term “GUIDE” means the document identified as the “Procedural Guide for Local Assistance Specified Grants.” The GUIDE provides the procedures and policies controlling the administration of the grant.
B. Project Execution
1. Subject to the availability of grant funds, the STATE hereby grants to the GRANTEE a sum of money not to exceed the amount stated in Section I of this Grant Contract, in consideration of, and on condition that, the sum be expended in carrying out the purposes as set forth in the scope described in the enabling legislation and referenced in the APPLICATION, Section I of this Grant Contract, and under the terms and conditions set forth in this Grant Contract .
The GRANTEE shall assume any obligation to furnish any additional funds that may be necessary to complete the GRANT SCOPE(S).
Docusign Envelope ID: 99D48075-AB04-4C61-AD9E-F906ABB6E03C
3 General Fund Specified Program Grant Contract
During the CONTRACT PERFORMANCE PERIOD, the GRANTEE agrees to submit any proposed change or alteration from the original GRANT SCOPE(S) in writing to the STATE for prior approval. This applies to any and all proposed changes that will occur after STATE has approved the APPLICATION. Changes in the GRANT SCOPE(s) must first be approved in writing by the STATE.
2. The GRANTEE shall complete the GRANT SCOPE(S) in accordance with the time of the Performance Period set forth in Section I of this Grant Contract, and under the terms and conditions of this Grant Contract.
To maintain the integrity of the grant program, the GRANTEE agrees that any other project changes or alterations which deviate from the intent of the original APPLICATION must be submitted in writing to the STATE for prior approval.
3. The GRANTEE shall comply with the California Environmental Quality Act (Public Resources Code, Section 21000, et seq., Title 14, California Code of Regulations, Section 15000 et seq.).
4. The GRANTEE shall comply with all applicable current laws and regulations affecting DEVELOPMENT projects, including, but not limited to, legal requirements for construction contracts, building codes, health and safety codes, and laws and codes pertaining to individuals with disabilities, including but not limited to the State Labor Code (§ 1771), the California Fair Employment and Housing Act (FEHA) (Cal. Government Code § 12940 et seq.), Americans With Disabilities Act of 1990 (42 U.S.C. § 12101 et seq.), and the California Unruh Act (California Civil Code § 51 et seq.).
C. Program GUIDES
1. GRANTEE agrees to abide by the GUIDE.
2. GRANTEE acknowledges that the STATE may make reasonable changes to its procedures as set forth in the GUIDE. If the STATE makes any changes to its procedures and guidelines, the STATE agrees to notify GRANTEE within a reasonable time.
D. Project Administration
1. If grant funds are advanced for DEVELOPMENT projects, the advanced funds will be deposited into a federally insured account. If grant funds are deposited into an interestbearing account, it must have the ability to track interest earned and withdrawals. Any interest earned on advanced funds must be used on the project as approved by the STATE.
If grant funds are advanced and not expended, the unused portion of the grant and any interest earned shall be returned to the STATE within 60 days after project completion or end of the GRANT PERFORMANCE PERIOD, whichever is earlier.
2. During the GRANT PERFORMANCE PERIOD the GRANTEE shall submit written project status reports within 30 calendar days after the STATE has made a specific request. All such project status reports shall be signed and certified as complete and accurate by the authorized representative of the GRANTEE. In any event, the GRANTEE shall provide the STATE a report showing total final project expenditures within 60 days of project completion or the end of the GRANT PERFORMANCE PERIOD, whichever is earlier. The GRANT PERFORMANCE PERIOD is identified in Section I of this Grant Contract.
3. The GRANTEE shall make property or facilities acquired and/or developed pursuant to this Grant Contract available for inspection upon request by the STATE.
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4 General Fund Specified Program Grant Contract
E. Project Termination
1. Project Termination refers to the non-completion of a GRANT SCOPE. Any grant funds that have not been expended by the GRANTEE shall revert to the STATE.
2. The GRANTEE may unilaterally rescind this Grant Contract at any time prior to the commencement of the project. After project commencement, this Grant Contract may be rescinded, modified or amended only by mutual agreement in writing between the GRANTEE and the STATE, unless the provisions of this Grant Contract provide that mutual agreement is not required.
3. Failure by the GRANTEE to comply with the terms of the (a) GUIDE, (b) this Grant Contractor any other Grant Contract, specified or general, that GRANTEE has entered into with the STATE or any other department, agency, commission or other subdivision of California State government, may be cause for suspension of all obligations of the STATE unless the STATE determines that such failure was due to no fault of the GRANTEE. In such case, the STATE may reimburse GRANTEE for eligible costs properly incurred in performance of this Grant Contract despite non-performance of the GRANTEE. To qualify for such reimbursement, GRANTEE agrees to mitigate its losses to the best of its ability.
4. Any breach of any term, provision, obligation or requirement of this Grant Contract by the GRANTEE shall be a default of this agreement. In the case of any default by GRANTEE, the STATE shall be entitled to all remedies available under law and equity, including but not limited to: a) Specific Performance; b) Return of all grant funds; c) Payment to the STATE of the fair market value of the project property or the actual sales price, whichever is higher; and d) Payment to the STATE of the costs of enforcement of this Grant Contract, including but not limited to court and arbitration costs, fees, expenses of litigation, and reasonable attorney fees.
5. The GRANTEE and the STATE agree that final payment may not be made until the work described in the GRANT SCOPE is complete.
F. Budget Contingency Clause
If funding for any fiscal year is reduced or deleted by the budget act for purposes of this program, the STATE shall have the option to either cancel this Grant Contract with no liability occurring to the STATE or offer a Grant Contract amendment to GRANTEE to reflect the reduced grant amount. This Paragraph shall not require the mutual agreement as addressed in Paragraph E, subsection 2, of this agreement.
G. Hold Harmless
1. The GRANTEE shall waive all claims and recourse against the STATE including the right to contribution for loss or damage to persons or property arising from, growing out of or in any way connected with or incident to this Grant Contract except claims arising from the concurrent or sole negligence of the STATE, its officers, agents, and employees.
2. The GRANTEE shall indemnify, hold harmless and defend the STATE, its officers, agents and employees against any and all claims, demands, damages, costs, expenses or liability costs arising out of the ACQUISITION, DEVELOPMENT, construction, operation or maintenance of the property described as the project which claims, demands or causes of action arise under California Government Code Section 895.2 or otherwise except for liability arising out of the concurrent or sole negligence of the STATE, its officers, agents, or employees.
3. The GRANTEE agrees that in the event the STATE is named as codefendant under the provisions of California Government Code Section 895 et seq., the GRANTEE shall notify the Docusign Envelope ID: 99D48075-AB04-4C61-AD9E-F906ABB6E03C
5 General Fund Specified Program Grant Contract
STATE of such fact and shall represent the STATE in the legal action unless the STATE undertakes to represent itself as codefendant in such legal action in which event the GRANTEE agrees to pay the STATE’s litigation costs, expenses, and reasonable attorney fees.
4. The GRANTEE and the STATE agree that in the event of judgment entered against the STATE and the GRANTEE because of the concurrent negligence of the STATE and the GRANTEE, their officers, agents, or employees, an apportionment of liability to pay such judgment shall be made by a court of competent jurisdiction. Neither party shall request a jury apportionment.
5. The GRANTEE shall indemnify, hold harmless and defend the STATE, its officers, agents and employees against any and all claims, demands, costs, expenses or liability costs arising out of legal actions pursuant to items to which the GRANTEE has certified. The GRANTEE acknowledges that it is solely responsible for compliance with items to which it has certified.
H. Financial Records
1. The GRANTEE shall maintain satisfactory financial accounts, documents, including loan documents, and all other records for the project and shall make them available to the STATE for auditing at reasonable times. The GRANTEE also agrees to retain such financial accounts, documents and records for five years following project termination or issuance of final payment, whichever is later.
2. The GRANTEE shall keep such records as the STATE shall prescribe, including records which fully disclose (a) the disposition of the proceeds of STATE funding assistance, (b) the total cost of the project in connection with such assistance that is given or used, (c) the amount, source and nature of that portion of the project cost supplied by other sources, and (d) any other such records that will facilitate an effective audit.
3. The GRANTEE agrees that the STATE shall have the right to inspect and make copies of any books, records or reports pertaining to this Grant Contract or matters related thereto during regular office hours. The GRANTEE shall maintain and make available for inspection by the STATE accurate records of all of its costs, disbursements and receipts with respect to its activities under this Grant Contract and shall provide copies of all such records to STATE in its certified status reports upon request by the STATE. Such accounts, documents, and records shall be retained by the GRANTEE for at least five years following project termination or issuance of final payment, whichever is later.
4. The GRANTEE shall use a generally accepted accounting system.
I. Use of Facilities
1. The GRANTEE agrees that the GRANTEE shall operate and maintain and retain full control of the property acquired or developed with the grant funds, for the duration of the CONTRACT PERFORMANCE PERIOD.
2. The GRANTEE agrees that, during the CONTRACT PERFORMANCE PERIOD, the GRANTEE shall use the property acquired or developed with grant funds under this Grant Contract only for the purposes of this grant and no other use, sale, assignment, transfer, mortgage, or other disposition or change of the control or use of the property or of any interest in the property to one not consistent with the grant purpose shall be permitted except as authorized by the STATE.
3. The property acquired or developed may be transferred or assigned to another entity only if the successor entity assumes the obligations imposed under this Grant Contract and only with the prior approval of STATE.
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6 General Fund Specified Program Grant Contract
J. Nondiscrimination
1. The GRANTEE shall not discriminate against any person on the basis of sex, race, color, national origin, age, religion, ancestry, sexual orientation, or disability in the use of any property or facility developed pursuant to this Grant Contract.
2. The GRANTEE shall not discriminate against any person on the basis of residence except to the extent that reasonable differences in admission or other fees may be maintained on the basis of residence and pursuant to law.
K. Severability
If any provision of this Grant Contract or the APPLICATION thereof is held invalid, that invalidity shall not affect other provisions or applications of the Grant Contract which can be given effect without the invalid provision or application, and to this end the provisions of this Grant Contract are severable.
L. Liability
1. STATE assumes no responsibility for assuring the safety or standards of construction, site improvements or programs related to the GRANT SCOPE. The STATE’s rights under this Grant Contract to review, inspect and approve the GRANT SCOPE and any final plans of implementation shall not give rise to any warranty or representation that the GRANT SCOPE and any plans or improvements are free from hazards or defects.
2. GRANTEE shall ensure that any contractor hired has adequate liability insurance, performance bond, or other security necessary to protect the GRANTEE’S interest and the STATE’s interest against poor workmanship, fraud, or other potential loss associated with the completion of the GRANT SCOPE.
M. Assignability
Without the written consent of the STATE, the GRANTEE’s interest in and control of any portion of the GRANT SCOPE responsibilities under this Grant Contract shall not be assignable or transferable by the GRANTEE either in whole or in part.
N. Use of Grant Funds
GRANTEE shall not use any grant funds (including any portion thereof) for the purpose of making any leverage loan, pledge, promissory note or similar financial device or transaction, without: 1) the prior written approval of the STATE; and 2) any financial or legal interests created by any such leverage loan, pledge, promissory note or similar financial device or transaction in the project property shall be completely subordinated to this Grant Contract through a Subordination Agreement provided and approved by the STATE, signed by all parties involved in the transaction, and recorded in the County Records against the fee title of the project property.
O. Section Headings
The headings and captions of the various sections of this Grant Contract have been inserted only for the purpose of convenience and are not a part of this Grant Contract and shall not be deemed in any manner to modify, explain, or restrict any of the provisions of this Grant Contract.
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7 General Fund Specified Program Grant Contract
P. Waiver
Any failure by a party to enforce its rights under this Grant Contract, in the event of a breach or default, shall not be construed as a waiver of said rights; and the waiver of any breach or default under this Grant Contract shall not be construed as a waiver of any subsequent breach.
III. SPECIAL PROVISIONS
On March 4, 2022, Governor Gavin Newsom issued Executive Order N-6-22 (the EO) regarding Economic Sanctions against Russia and Russian entities and individuals. “Economic Sanctions” refers to sanctions imposed by the U.S. government in response to Russia’s actions in Ukraine, as well as any sanctions imposed under state law. The EO directs state agencies to terminate contracts with, and to refrain from entering any new contracts with, individuals or entities that are determined to be a target of Economic Sanctions. This Executive order extends to recipients of any State Grants (Grantee).
Grantees include those who have contracted or will contract to receive State grants funds.
Accordingly, should the State determine that a Grantee is a target of Economic Sanctions or is conducting prohibited transactions with sanctioned individuals or entities that shall be grounds for termination of this agreement. The STATE shall provide the GRANTEE advance written notice of such termination, allowing the GRANTEE at least 30 calendar days to provide a written response. Termination of any contract found to be in violation of this Executive Order shall be at the sole discretion of the STATE.
STATE OF CALIFORNIA
DEPARTMENT OF PARKS AND RECREATION
By:________________________________
Title:_______________________________
Date:_______________________________
_Los Angeles Neighborhood Land Trust_
GRANTEE
By:_________________________________
Signature of Authorized Representative
Title:________________________________
Date:_______________________________
Tori
Kjer
Digitally signed
by Tori Kjer
Date:
2026.01.12
11:17:41 -08'00'
Docusign Envelope ID: 99D48075-AB04-4C61-AD9E-F906ABB6E03C 1/16/2026
Supervisor
Attachment D
AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF
CUDAHY AND THE LOS ANGELES NEIGHBORHOOD LAND TRUST
FOR THE PARAMETERS REGARDING THE DEVELOPMENT AND
CONSTRUCTION OF IMPROVEMENTS TO CERTAIN EXISTING OR
NEW PARKS IN THE CITY OF CUDAHY
This Amendment dated December 6, 2022, is to that certain Agreement by and between the City of Cudahy, a municipal corporation (“City”) and the Los Angeles Neighborhood Land Trust, a California non-profit public benefit corporation (“LANLT”) dated February 27, 2021 (“Agreement”).
RECITALS
A. City and LANLT entered into the Agreement to partner with LANLT in seeking grants and raising funds for the design, development and construction of improvements to existing parks in the City or the design, development and construction of new parks in the City.
B. City and LANLT desire to amend the terms of the Agreement in order to define the process for the distribution of grant funding for the implementation of various park projects.
NOW THEREFORE, in consideration of the mutual promises contained herein, the Parties agree as follows:
Section 1. Section 3 of the Agreement is hereby amended in its entirety to read as follows:
3. Payments.
(a) Where LANLT is the grantee under a Grant Agreement, LANLT is fully responsible for all payments to the Contractor and all other contractors and subcontractors from the proceeds of the grant, in accordance with the terms of the Grant Agreement. LANLT shall also prepare and submit on behalf of the City (as applicable) all reports or other documents required under the terms of the grant, including any documentation needed for the release of grant funds. (b) Where the City is the grantee under a Grant Agreement, the City Manager and LANLT shall develop a process to facilitate the payment of invoices from the City to LANLT for payments required under the grant either as reimbursable expenses or direct payments to third parties. LANLT shall also prepare and submit on behalf of the City (as applicable) all reports or other documents required under the terms of the grant, including any documentation needed for the release of grant funds. The City Manager
2 is authorized to undertake all actions necessary to implement the provisions of this paragraph without further approval from the City Council. (c) For purposes of any Grant Agreement or other funding agreement or source, the City hereby designates LANLT as an agent of the City solely to allow LANLT to submit reports and documents as well as to request reimbursements under the Grant Agreement.”
(d) LANLT Compensation for Project Management Time from Grant. LANLT will track all time associated with direct project management for the project and will prepare invoices for reimbursement that include any documentation needed for the release of grant funds. Compensation for project management is not to exceed the amount allowed by respective grant programs without prior review and approval by City Manager.
Section 2. Except as expressly modified by this Amendment, all other provisions of the Agreement shall remain in full force and effect. In the event of a conflict between the provisions of this Amendment and the provisions of the Agreement, the provisions of this Amendment shall control.
(SIGNATURES ON NEXT PAGE)
IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the day and year first above written.
CITY:
CITY OF CUDAHY
APPROVED AS TO FORM:
By: __________ _
Stephanie Arechiga, City Attorney
Date: ----------
3 CONSULTANT:
LOS ANGELES NEIGHBORHOOD
LAND TRUST:
Digitally signed by
T • K" Tori Kjer Q rl J er Date: 2023.01.22
By: 14,os,42 -os·oo·
Tori Kjer, Executive Director
1/23/23
“Serving The People” "Sirviendo A La Comunidad"
Staff Report
10/06/2026 Page 1 of 4
STAFF REPORT
Date: October 6, 2026
To: Honorable Mayor/Chair and City Council/Agency Members From: Christopher R. Lopez, City Manager/Executive Director Subject: Discuss and Evaluate the 2023 Council Adopted Economic Development Strategic Plan: Workshop II
RECOMMENDATION
The City Council is requested to discuss and evaluate the 2023 Council adopted Economic Development Strategic Plan. Specifically, it is recommended that the City Council:
1. Receive an update regarding the Economic Development Strategic Plan Refresh; and
2. Provide direction regarding the City's desired economic development priorities and outcomes to assist staff in preparing the next phase of the Plan.
BACKGROUND
In 2023, the City of Cudahy Mayor and City Council approved an Economic Development Strategic Plan with the goal of transforming the City from a bedroom community into a full-service community with a focus on commercial redevelopment.
Among other strategies, this plan included rezoning and the creation of an Entertainment District along Atlantic Boulevard as the City's primary commercial corridor. The plan is attached to this staff report as background.
Earlier this year, the Economic Development Ad-Hoc requested identified the need to revisit some of the priorities associated with economic development in the community.
It also requested to review the City’s existing Economic Development Strategic Plan.
The purpose of the refresh is not to start over. Rather, the City is reviewing the existing Plan to determine what continues to make sense, what has changed, and what the City should focus on moving forward.
Item Number
14A
“Serving The People” "Sirviendo A La Comunidad"
Staff Report
10/06/2026 Page 2 of 4
At the first workshop, the City Council reviewed the existing Plan and discussed the City's current economic development environment.
The second workshop is intended to take the next step and answer the following question:
What do we want economic development to accomplish for Cudahy? This workshop is intentionally designed to be simple and focused. The City Council is not being asked to write the Plan or identify specific programs or projects. Staff is seeking general direction that can be used to develop the next draft of the Plan.
DISCUSSION
For purposes of this workshop, staff has identified four areas of economic development.
1. Support existing businesses: How can the City help businesses that are already in Cudahy? Examples include:
a. Helping businesses stay and grow
b. Improving communication with businesses
c. Helping businesses navigate City processes
d. Encouraging investment in existing properties
2. Attract new business and development: What types of businesses and investment would the City like to see in Cudahy? Examples include:
a. New businesses
b. Investment in vacant or underutilized properties
c. New development
d. Businesses that create jobs and contribute to the local economy
3. Create opportunities for residents: How can economic development create greater opportunities for people who live in Cudahy? Examples include:
a. Jobs
b. Workforce training
c. Career opportunities
d. Youth employment
e. Connecting residents with local employers
4. Make it easier to do business in Cudahy: What can the City do to create a better environment for businesses and investment? Examples include:
a. Improving City processes
b. Better customer service
c. Business outreach
d. Infrastructure improvements
e. Marketing and promotion
f. Partnerships with other organizations
COUNCIL DISCUSSION
“Serving The People” "Sirviendo A La Comunidad"
Staff Report
10/06/2026 Page 3 of 4
The City Council will be asked to provide general feedback on three simple questions.
1. What should Cudahy focus on most?
a. Supporting existing businesses
b. Attracting new businesses and investment
c. Creating opportunities for residents
d. Making it easier to do business in Cudahy
e. A combination of these
2. What would you like to see more of in Cudahy? For example:
a. More successful businesses
b. More investment
c. More jobs
d. More development
e. More business opportunities
f. More opportunities for residents
3. Two years from now, what would make you say that our economic development efforts are working?
a. The Council may identify any outcomes it considers important.
NEXT STEPS
Following the workshop, staff will use the Council's direction to develop a simplified framework for the refreshed Economic Development Strategic Plan.
The next phase will identify:
a. Key priorities
b. Potential strategies and actions
c. Opportunities for partnerships
d. Measures of progress
e. A proposed implementation approach
The intent is for the City Council to provide direction first, with staff then translating that direction into a proposed Plan for further Council consideration.
CONCLUSION
The City has an existing economic development strategy. The purpose of the refresh is to make sure that strategy reflects where Cudahy is today and where the City wants to go next.
For this workshop, the City Council is simply being asked: What do you want economic development to accomplish for Cudahy?
Staff will use that direction to develop the next phase of the Plan.
FINANCIAL IMPACT
“Serving The People” "Sirviendo A La Comunidad"
Staff Report
10/06/2026 Page 4 of 4
None.
ATTACHMENTS
A. 2023 Council Adopted Strategic Plan
f<INSERT COVER ART>
City of Cudahy, CA
DRAFT Retail Market Analysis & Economic Development
Strategy
July 03, 2023 (v19_cg)
City of Cudahy, CA
Economic Development
Strategic Plan
Adopted September 5, 2023
Attachment A Page 469 of 557
City of Cudahy I California
Economic Development Strategic Plan 2023
Part I: Implementation & Funding Plan Page I-i
ACKNOWLEDGEMENTS
City of Cudahy Staff
Alfonso Noyola, City Manager
Juan Arauz, Community Development Director
Cecilia Madrigal-Gonzalez, Senior Planner
Joshua Calhoun, Finance Director
Mayor & City Council
Daisy Lomeli, Mayor
Jose R. Gonzalez, Vice Mayor
Elizabeth Alcantar, Council Member
Martin U. Fuentes, Council Member
Cynthia Gonzalez, Council Member
Planning Commission
Krystal Markovich, Chair
Yessica Alvarez, Vice Chair
Richard Corvera-Hernandez, Commissioner
Gustavo Mendez, Commissioner
Real Estate & Economic Development Consulting
Support
Willdan Financial & Economic Consulting Services
Temecula, CA
www. willdan.com
City of Cudahy I California
Economic Development Strategic Plan 2023
Part I: Implementation & Funding Plan Page I-i
TABLE OF CONTENTS
Part I: Economic Development Strategic Plan .......................... I-1 I...................................................Introduction & Executive Summary ...................................................................................... I-1 Economic Development Policy Context .............................. I-1 Market Analysis Findings ................................................... I-3 Entertainment District Infill Opportunities ......................... I-3 Entertainment District Growth Supports Hotel Development ......................................................................................... I-3 Emerging Multifamily Development.................................. I-3 Office/Medical Office Development.................................. I-4 II. Implementation Plan Priorities ........................................... I-7 Introduction..................................................................... I-7
1.0 Internal Capacity Building Initiative ............................... I-8 Existing Conditions ........................................................... I-8 Recommendations ....................................................... I-8
2.0 Community Identity/Branding Program ....................... I-10 Existing Conditions ......................................................... I-10 Recommendations ..................................................... I-11
3.0 Business & Investment Attraction Program................... I-12 Existing Conditions ......................................................... I-12 Recommendations ..................................................... I-13
4.0 Community Preservation Program............................... I-14 Existing Conditions ........................................................ I-14 Recommendations..................................................... I-14
5.0 Quality of Life Investment Strategy............................. I-15 Existing Conditions ........................................................ I-15 Recommendations..................................................... I-15
6.0 Major Projects Accelerator Program............................ I-17 Existing Conditions ........................................................ I-17 Recommendations..................................................... I-17 Entertainment Destination Case Study: SteelCraft ............. I-18 III. Economic Development Funding Plan.............................. I-20 Public Private Funding Tools ........................................... I-20 Real Estate and Property ................................................ I-20 Development Incentives................................................. I-22 Special Assessment Districts........................................... I-22 Land Use / Zoning.......................................................... I-23 Tax/Revenue Rebates..................................................... I-23 Public Private Partnership Delivery Methods................... I-24 Community Revitalization and Investment Area (CRIA) /
Enhanced Infrastructure Financing Districts (EIFDs)......... I-24 State and Federal Grants / Funding................................ I-25 Property Assessed Clean Energy (PACE) ........................ I-26 Joint Powers Authorities................................................. I-27 Next Steps ...................................................................... 30 Performance Metrics .........................................................30
City of Cudahy I California
Economic Development Strategic Plan 2023
Part I: Implementation & Funding Plan Page I-ii
Part II: Demographic & Economic Profile Report ............... II-1 I. Community Change & Growth........................................... II-1 Population .......................................................................II-1 Household Growth and Size Characteristic.......................II-3 Age Characteristics ..........................................................II-4 Household Income...........................................................II-5 Population by Race..........................................................II-6 Housing Value and Tenure Characteristics .......................II-7 Educational Attainment....................................................II-9 Fiscal Resiliency Assessment..........................................................II-10 Part III. Real Estate Market Analysis ................................. III-1 I. Redevelopment Constraints & Opportunities....................... III-1 Executive Summary ........................................................III-1 Methodology and Approach............................................III-5 Geographic Information Systems (GIS)............................III-5 Regional Housing Needs Assessment .............................III-5 Existing Conditions.........................................................III-6 Location..........................................................................III-6 Development History ......................................................III-6 Physical Characteristics ...................................................III-6 Legal & Regulatory Overview..........................................III-7 Zoning Considerations ....................................................III-7 Community & Economic Development Context.................III-8 Traffic Counts..................................................................III-8 Retail Market Indicators .................................................. III-9 2023: Vacancies, Absorption, Rents and Sales...............III-10 Cudahy Entertainment District Opportunities ................III-11 Retail Gap Analysis........................................................III-12 Market Leakage & Lost Tax Revenues ...........................III-14 Spending Power Analysis ..............................................III-16 Multifamily Market ........................................................III-18 Supply Characteristics ...................................................III-18 Housing Needs Assessment Demand............................III-22 Constraints & Opportunities..........................................III-24 Industrial Market Overview ............................................III-25 2023: Vacancies, Absorption, Rents, and Sales..............III-25 Supply Characteristics ...................................................III-26 Demand Drivers ............................................................III-27 Constraints & Opportunities..........................................III-28 Commercial & Medical Office Market..............................III-28 Supply Characteristics ...................................................III-28 Demand Drivers ............................................................III-28 Constraints & Opportunities..........................................III-28 Hotel/Hospitality Market Overview .................................III-29 Supply Characteristics ...................................................III-29 Demand Drivers ............................................................III-29
City of Cudahy I California
Economic Development Strategic Plan 2023
Part I: Implementation & Funding Plan Page I-iii
Constraints & Opportunities..........................................III-29 Conclusion...................................................................III-30 Community Engagement...............................................III-31 Community Visioning 2022/23: SWOT Workshop Results..III-33 Part IV: Real Estate & Economic Development Consulting Support Contact Information ......................................................... IV-1
INDEX OF TABLES
Table 1: Atlantic Avenue Commercial Market Opportunities 2024- 2028Sector........................................................................................... I-5 Table 2: Retail/Dining/Entertainment Void Analysis – City of Cudahy (20-Minute Drive Time), 2021-2022 ................................................... I-6 Table 3: Cudahy Long Range Master Plan Successor Agency Sites ............................................................................................................ I-12 Table 4: Cudahy Public-Private Funding Tools Rankings ............... I-28 Table 5: EDSP Performance Metrics ................................................ I-30 Table 6: Population Growth Trends, Cudahy & Neighboring Jurisdictions, 2023-2028 .................................................................... II-1 Table 7: Household Growth Trends, 2023-2028.............................. II-3 Table 8: General Fund Revenue...................................................... II-10 Table 9: Atlantic Avenue Commercial Market Opportunities 2024- 2028 .................................................................................................... III-4 Table 10: Retail Supply: City of Cudahy Retail Market Indicators, 2023 .................................................................................................. III-10 Table 11: Cudahy Customer Journey: Top 15 Retail Destinations, 2021-2022......................................................................................... III-12 Table 12: Cudahy Resident Retail Sales Tax Leakage, 2021-2022 ........................................................................................................... III-14 Table 13: Retail/Dining/Entertainment Void Analysis by Operator – City of Cudahy (20-Minute Drive Time), 2021-2022......................III-15 Table 14: Southeast LA Submarket Incremental Retail Spending Power Projections (2023 to 2028)...................................................III-17 Table 15: 20-Minute Drive Time Spending Power Projections (2023 to 2028).............................................................................................III-18 Table 16: City of Cudahy Multifamily Market Summary................III-19 Table 18: Cudahy Multifamily Supply.............................................III-22 Table 19: City of Cudahy RHNA 6th Cycle Estimated Housing Construction Need, October 2021 – October 2029 .....................III-22 Table 20: Cudahy Multifamily Vacancy and Absorption...............III-23
City of Cudahy I California
Economic Development Strategic Plan 2023
Part I: Implementation & Funding Plan Page I-iv
Table 21: Cudahy Industrial Submarket Square Footage by Asset Type...................................................................................................III-25 Table 22: Local and Submarket Industrial Real Estate Indicators ...........................................................................................................III-26 Table 23: Cudahy Industrial Supply ................................................III-26 Table 24: Summary Table Constrains and Opportunities by Product Type...................................................................................................III-30
INDEX OF FIGURES
Figure 1: City of Cudahy Zoning Map, 2023..................................... I-2 Figure 2: Example of Latino Heritage City Plaza – Tuxcueca, Jalisco ............................................................................................................ I-11 Figure 3: Cudahy Economic Development Element – P3 Opportunity Sites, 2022.......................................................................................... I-12 Figure 4: Cudahy Community Outreach.......................................... I-14 Figure 5: City of Cudahy – Top 15 Destinations, 2021-2022......... I-15 Figure 6: Project for Public Spaces: What Makes a Great Placemaking?..................................................................................... I-16 Figure 7: Steelcraft Brewery, Bellflower, CA ................................... I-18 Figure 8: Comparison of Retail Destination Inflow – Bellflower vs.
Cudahy................................................................................................ I-19 Figure 9: Community Gathering-Oriented Redevelopment,
Bellflower, CA (2023) ....................................................................... I-19 Figure 10: Public-Private Funding Tools .......................................... I-21 Figure 11: Public-Private Partnership Delivery Methods................. I-24 Figure 12: Estimated and Projected Population Growth, 2000-2028 . .................................................................................................... II-2 Figure 13: Average Household Size (Persons Per Household)........II-3 Figure 14: Age Distribution by Cohort, 2023 ...................................II-4 Figure 15: Projected Net Change in Median Household Income (2023 to 2028) .....................................................................................II-5 Figure 16: Population by Race1
, 2023...............................................II-6 Figure 17: Housing by Tenure ...........................................................II-7 Figure 18: Median Housing Value, 2023...........................................II-8 Figure 19: Population 25+ Years by Educational Attainment, 2023.... ..............................................................................................................II-9 Figure 20: Traffic Heat Map ...............................................................II-9 Figure 21: Cudahy Retail Submarket.............................................. III-10
City of Cudahy I California
Economic Development Strategic Plan 2023
Part I: Implementation & Funding Plan Page I-v
Figure 22: Retail Supply Overview – Regional Superstores, 2022........ ...........................................................................................................III-13 Figure 23: Regional Submarket (20-Minute Drive Time) ...............III-16 Figure 24: Cudahy Multifamily Submarket .....................................III-18 Figure 25: Cudahy Multifamily Building Location Map .................III-20 Figure 26: Cudahy Multifamily Units by Year Built, Q3 2022........III-21 Figure 27: Cudahy Industrial Submarkets.......................................III-25 Figure 28: California Taxable Cannabis Sales ................................III-27 Figure 29: Cudahy Hospitality Submarket......................................III-29
City of Cudahy I California Draft for Interview Review Purposes Only – Not for Distribution Economic Development Strategic Plan 2023
Part I: Implementation & Funding Plan Page I-vi
City of Cudahy, CA
Economic Development Strategic Plan 2023
Part I – Implementation & Funding Plan
City of Cudahy I California
Economic Development Strategic Plan 2023
Part I: Implementation & Funding Plan Page I-1
Part I: Implementation & Funding Plan
I. Introduction & Executive Summary
The City of Cudahy retained the consulting team of Willdan Financial & Economic Consulting Services (Temecula, CA) to undertake a retail market analysis and redevelopment strategy. The objective of the market analysis is to identify development constraints and opportunities related to Atlantic Avenue, the City’s primary commercial thoroughfare.
Economic Development Policy Context
Through a series of planning initiatives from 2018 to 2022, the City of Cudahy identified the need to focus community and economic development resources on the revitalization of Atlantic Avenue as the City’s primary commercial tax generator.
Community feedback collected through surveys, workshops, and other mechanisms supports the redevelopment concept defined by the City’s zoning code amendment that designates the southern quadrant of Atlantic Avenue as an Entertainment District to serve as a regional and community gathering hub (Figure 1).
Today, Atlantic Avenue is a fragmented regional thoroughfare with underutilized, disinvested industrial uses, scattered fast food establishments, and adequately performing Class B/C commercial shopping plazas.
With intentional urban infill redevelopment activity and a revitalized community identity, the City of Cudahy will catalyze much needed commercial development and capture a greater “fair share” of regional spending and tax revenue going forward.
The City of Cudahy’s 2018 Economic Development Element
established six goals to guide the Community Development Department’s work task priorities, staff resource allocations, and strategic partnerships.
The City’s Economic Development Element (2018)
Goal 1: A diverse and healthy economy
Goal 2: A thriving business climate attracting and
retaining new businesses of diverse types
and sizes
Goal 3: A skilled and adaptable local workforce
Goal 4: A partner for public and private
development that aligns with the
community vision
Goal 5: Maintain the City’s fiscal health
Goal 6: A City that values and uplifts the
economic potential of its vulnerable
populations
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Figure 1: City of Cudahy Zoning Map, 2023
Source: City of Cudahy; LA County Assessor; Willdan, 2023 Cudahy
Entertainment
District
Priority
Redevelopment
Area
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Part I: Implementation & Funding Plan Page I-3
This policy guidance established a vision for improving the City’s longterm fiscal resilience and community identity through City-led commercial redevelopment and effective public-private partnerships.
The following market analysis validates the opportunity for this redevelopment concept and provides an implementation strategy to guide Cudahy’s Community and Economic Development activities over the next five to ten years.
Market Analysis Findings
As a key Gateway Community of Los Angeles County, the City of Cudahy’s real estate market holds potential for complementary uses that better meet the vision of the City and serve the community.
To evaluate the market demand for all uses, Willdan reviewed readily available economic and market data for the City of Cudahy and the larger submarkets the City falls within.
Interviews with local and regional real estate brokers, economic development entities, and civic/cultural representatives were also conducted.
The market study revealed several transformative opportunities for the City of Cudahy within the regional market that would serve to attract new businesses to the Entertainment District and generate new tax revenues:
Entertainment District Infill Opportunities
Cudahy is well-positioned in a powerful regional market with strong spending power. The area also demonstrates substantial demand for a variety of retail, dining, and entertainment options. However, existing options within Cudahy and $65 million in retail leakage indicate that residents primarily spend outside City limits to meet their needs. This strong spending power and local demand create near-term opportunities to attract, grow, and support various
retail/dining/entertainment users within the Entertainment District. The SteelCraft brewery in Bellflower represents a model for how the City can support unique infill opportunities to make the Entertainment District a destination hub for residents and surrounding communities.
Entertainment District Growth Supports Hotel Development The City is leading an intentional transition from disinvested industrial uses to destination Entertainment District uses. Over the long term, this strategy will support new hotel demand along Atlantic Avenue as the City’s primary commercial corridor with excellent visibility and traffic counts (midscale class, 100-150 keys, 2-4 stories).
Emerging Multifamily Development
Multifamily residential development activity is occurring on its own.
Public support for future residential development should focus on attracting new urban infill mixed-use product to meet the City’s
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Regional Housing Needs Assessment (RHNA)1 targets and the scale, quality, and character of new product according to the General Plan Update 2040.2
Office/Medical Office Development
With a focus on the potential synergies of proximity to the regional Kaiser Permanente Medical Center and emerging “Med-Tail” development3
, medical office product is considered a longer-term
opportunity and tied to availability of commercial space at a price point that will support the high fit-out costs of investment grade medical space users.
In the future, disinvested/underutilized commercial shopping centers may offer opportunity for redevelopment and reuse for medical office.
This strategy would be further strengthened by outreach and marketing.
1 https://www.hcd.ca.gov/housing-elements/docs/cudahy-6th-draft101521.pdf 2 https://www.cityofcudahy.com/DocumentCenter/View/216/Cudahy-General-Plan2040-PDF 3 “Med-Tail” is a new retail sector that refers to the business arrangement of retail centers in mixed-use developments leasing space to medical facilities. It commonly These real estate market opportunities are further supported by the General Plan’s guidance. The specific Entertainment District properties with the highest likelihood of attracting near-term investment and redevelopment activity will be those with sufficient land capacity, environmental approvals, and an identifiable and willing seller.
The City’s role in catalyzing the targeted redevelopment envisioned by the new Zoning Code is tied to these foundational elements that will be further addressed in the Economic Development Strategic Plan’s implementation recommendations.
The following tables provide a summary of these market findings according to data and input provided by the City of Cudahy Community Development Department, Urban Land Institute (ULI), Lee & Associates (commercial brokers), and research collected by Willdan Financial & Economic Consulting Services from May 2022 through June 2023.
includes less invasive or non-invasive medical services including dental, dermatology, eyecare offices, and counseling and mental health services. https://www.cushmanwakefield.com/en/united-states/insights/us-articles/medtailwhen-healthcare-meets-retail
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Table 1: Atlantic Avenue
Commercial Market
Opportunities 2024-
2028Sector
Atlantic Avenue Market Opportunity Developer Requirements
MULTIFAMILY
2 to 3 mixed-use multifamily buildings over the
next 5-7 years
low-income and market rate workforce housing
product
Neighborhood Infill typology
(25-120 units per property, 2-5 stories)
1 to 5 acres per project
Street frontage and rear-access parking
Structured parking likely requires public subsidy
DESTINATION RETAIL/
ENTERTAINMENT
Substantial retail leakage identified; near-term
opportunity for a variety of regional family-oriented
retail/dining/entertainment uses:
Dining, sports arena, gambling, bowling alley, jump
zone, fast casual dining (sit-down pizza), community
gathering (brewery)
1 to 2 acres per project
Approx. 5,000-10,000 Sq Ft per tenant
High visibility locations & intersections
along Atlantic Avenue
MIXED-USE RESIDENTIAL Ground-floor mixed-use residential over retail will occur on a site-by-site basis over the next five years
Multifamily building retail uses require
1,000 - 5,000 Sq Ft per tenant
MEDICAL OFFICE
Outpatient facility is possible if aligns with
expansion needs of nearby regional medical center
systems (i.e., Kaiser Permanente Cudahy Medical
Offices)
20,000 - 30,000 Sq Ft
2 stories
High visibility locations & intersections
along Atlantic Avenue
HOTEL 1 new hotel in the next 5-10 years
1.5 to 4 acres per project
Midscale class (100 -150 keys, 2-4 stories)
High visibility locations & intersections
along Atlantic Avenue
Source: City of Cudahy; Urban Land Institute; Lee & Associates; Willdan, 2023
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Table 2: Retail/Dining/Entertainment Void Analysis – City of Cudahy (20-Minute Drive Time), 2021-2022 Source: Placer.ai; Willdan, 2022
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II. Implementation Plan Priorities
Introduction
To achieve the City of Cudahy’s future vision and brand identity that would be created through the redevelopment of Atlantic Avenue into a regional Entertainment District and community gathering hub, the following Economic Development initiatives are recommended for adoption by the City Council.
These strategies are supported by detailed recommendations to be managed by the Department of Community Development and
associated strategic partners. These activities should be tracked regularly to evaluate the City’s economic development performance and resource allocations.
Adoption of the Economic Development Strategic Plan will clearly communicate to investors and developers that the City is proactively facilitating Cudahy’s evolution from a bedroom community to a fullservice community with dedicated Community Development Department resources.
The recommendations supporting each proposed initiative will also market the City as a proactive development partner who will provide clarity to the investors/developers, thereby reducing risk and time in the entitlement and construction process.
City of Cudahy
Economic Development Strategic Plan
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Key Recommendations
1.0 Internal Capacity Building Initiative
2.0 Community Identity/Branding Program
3.0 Business & Investment Attraction Program
4.0 Community Preservation Program
5.0 Quality of Life Attraction Strategy
6.0 Major Projects Accelerator
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1.0 Internal Capacity Building Initiative
Existing Conditions
The City of Cudahy is actively implementing several long-term strategies to expand internal capacity for managing commercial redevelopment activity.
In 2022 the City’s updated the zoning code and hired a full-time Community Development Director. With expanded staffing, the City has positioned itself to leverage the value of publicly owned land on Atlantic Avenue.
To achieve the City’s vision of Atlantic Avenue as a thriving commercial corridor and majority contributor to the City’s General Fund revenues, the City should explore investing in additional staffing dedicated to implementing the Economic Development Strategic Plan’s recommendations.
These focused resources would take the lead on administering the Business Retention & Expansion and Community Preservation Programs to actively facilitate commercial redevelopment while also protecting the City’s existing small businesses.
Initially, this role could be filled by a dedicated Economic Development staff resource (1 full-time equivalent). As the Entertainment District redevelopment plan progresses, the City should consider adding part-time or contract staff support to conduct outreach and collect data.
Recommendations
1.1 Expand Planning & Economic
Development Resources
1.1.1 Hire Economic Development Staff
Resource (1 FTE)
1.1.2 Increase Targeted Business Retention &
Attraction Activities
1.2 Form BRE Working Group (include
neighboring Jurisdictions)
1.2.1 Create & Track Business Target List
1.2.2 Create & Track Developer Target List
1.3 Refocus and Expand the Recreation, Arts,
and Cultural Heritage Commission to
Include Entertainment (“REACH”
Commission)
1.4 Actively Market the EDSP to Recruit for
Vacant Commission Seats
1.5 Reevaluate the Civic Center Master Plan
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Another important element of economic development capacity building is the strength of the City’s appointment and volunteer support networks. Here, there is more work to be done to strengthen existing business and community partnerships.
As a starting point, it is recommended that the City explore refocusing and expanding the Recreation, Arts, and Cultural Heritage Commission (RACH) to facilitate commercial
redevelopment activity. The City could consider rebranding the RACH Commission to include entertainment-related initiatives as well (i.e., “REACH” Commission).
Adding entertainment initiatives to the Commission’s purview would create a natural internal small working group focused on Economic Development Strategic Plan implementation and would bolster recruitment of new volunteers. The need for additional volunteer resources also applies to a single City Planning Commission seat vacant as of July 2023.
Finally, internal capacity building is also connected to the physical space occupied by City Departments.
To accommodate the increase in construction and permitting activity which is expected to continue to accelerate, the City should explore renovating and expanding City Hall’s office space to provide an optimal environment for conducting business. The City could accomplish this in the near-term by reevaluating the Civic Center Master Plan to relocate City Hall into the Los Angeles County Library.
Figure 2: Cudahy Community Outreach Event
Source: City of Cudahy, 2023
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2.0 Community Identity/Branding Program
Existing Conditions
Municipal branding defines a City’s sense of identity while also marketing the community’s shared values through transparent communication of civic policies and investments.
The Economic Development Community Workshop identified a cohesive desire for a better-defined community brand and identity.
Community branding is also an important factor in successful business attraction and retention. When site selectors visit a new market, the impressions they take back to the ultimate decision makers begin the moment they set foot in the market.
In 2018, the City undertook a rebranding effort to modernize Cudahy’s web and print design guidelines and logo.4
This effort
created an image of a California bear with the tagline “Open Minds.
Open Doors.” The community outreach survey included questions related to brand recognition of the bear and tagline. Responses were mixed (55% no; 45% yes) indicating an opportunity for the City to revisit its municipal branding strategy and to integrate targeted branding into future redevelopment projects.
4 https://tinyurl.com/CudahyLogo
Beyond branding related to a sense of place, investors and developers associate the ease of doing business with a city as a form of branding.
A City’s capacity to manage large scale redevelopment projects is partially evidenced by existing infrastructure and commercial development activity. According to interviews with area brokers and mixed-use developers, when a city is “professional, reasonable and proactive” throughout the development process these conditions help to provide clarity, reduce risk, and mitigate additional costs related to construction delays.
As an example, the City is in the process of establishing Architectural Design Guidelines to further support the creation of a new City brand and identity.
Establishing architectural guidelines is an important step to improve Cudahy’s image relative to the City’s peers in the submarket and create a distinct sense of place within the City’s jurisdictional boundaries. Other activities that will enhance the City’s community identity and brand recognition are detailed in the recommendations below.
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Other specific activities include establishing placemaking guidelines for future redevelopment on Atlantic Boulevard to improve walkability and opportunities for community gathering.
These initiatives are also linked to the 5.0 Quality of Life Initiative and 6.0 Major Projects Accelerator Program.
To launch the City’s Community Identity and Branding Program, it is recommended that the Community Development Department
requests approval to release a public Request for Proposals for a municipal branding consultant. The scope of work should include, at a minimum:
Reviewing feedback collected during the EDSP’s community outreach process (see Part III)
Revisiting the City’s logo to incorporate Latino Heritage design elements
Creating place-based branding collateral for future
redevelopment sites and public infrastructure
Integrating the updated City logo and other branding materials in additional communication channels to enhance Cudahy
residents’ community identity as redevelopment continues to progress.
Recommendations
2.1 Launch Community
Identity/Branding Program
2.2 Adopt & Market Architectural
Guidelines
2.3 Establish placemaking guidelines for
future redevelopment
Figure 2: Example of Latino Heritage City Plaza – Tuxcueca, Jalisco Source: City of Cudahy; Wikimedia Commons; Willdan, 2023
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3.0 Business & Investment Attraction Program
Existing Conditions
The City has identified several “Opportunity Sites” and target uses for urban infill redevelopment. In addition to several privately owned, disinvested and underutilized properties fronting Atlantic Avenue, there are six publicly owned “Successor Agency Sites” that the City is actively marketing for transition as envisioned by the General Plan Update 2040 and related zoning code revisions.
Figure 3: Cudahy Economic Development Element – P3 Opportunity Sites, 2022 Source: City of Cudahy; Willdan, 2023
The City Community Development Department is facilitating this development with a focus on preserving properties with frontage along Atlantic Avenue for future commercial or mixed-use residential over retail uses. This strategy is consistent with prior planning guidance to diversify the City’s tax base.
Table 3: Cudahy Long Range Master Plan Successor Agency Sites Site Name Type Acres Zoning
1 Elizabeth Street
Residential Property Other 0.94 HDR-G
2 Atlantic Ave/Santa Ana St
Commercial Property
Commercial/
V/O 1.02 CC HDR-G
3 Santa Anna St Residential
Property Vacant Land 1.35 CC HDR-G
4 Atlantic Ave/ Cecelia St
Commercial Property
Other/Vacant
Land 2.47 CC
5 Atlantic Ave/ Patata
Street Commercial
Property
Commercial/
V/O 2.1 CC
6 Atlantic Ave/ Clara St
Commercial Property
Commercial/
V/O 1.66 CC
TOTAL ACRES 9.54
1 Commercial/V/O = Commercial Buildings/Vacant Land/Other Source: City of Cudahy Long Range Property Management Plan; Willdan, 2023
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The private real estate development community has responded favorably to this policy guidance and is engaged in advancing development approvals for:
Starbucks
Sprouts
42 Unit Apartment
Complex
5 Unit Apartment Complex
15 Unit Apartment
Complex
50 New Townhomes
Potential Casino
Other Commercial &
Mixed-Use Developments
on Atlantic Avenue
Current market conditions are positive for housing development due to a chronic and critical lack of sufficient supply. The multifamily housing industry is advocating for new housing construction, financial and development tools to increase the volume of construction, reduce construction costs, and expand the diversity of funding sources and financing tools. The City has a clear role in partnering with the development community by facilitating development approvals and reducing development timetables – thereby mitigating risk and creating clarity for investors.
Recommendations
Commercial redevelopment directly supports both job creation and fiscal revenue generation through property and sales taxes.
Together with Initiative 1.0, Cudahy can accelerate commercial development activity within the Entertainment District by hyperfocusing limited resources on targeted business and investment attraction opportunities. Retailer voids identified within the regional market and community stakeholder input clearly indicate the need for high quality family entertainment, retail, and dining establishments. The following recommended action steps will ensure that the City is proactively marketing the Entertainment District’s sites to the development community.
Recommendations
3.1 Launch Business & Investment Attraction
Program
3.2 Build Relationships with Property
Owners and Developers
3.3 Track & Market Sites Available for
Development
3.4 Attend Conferences & Local Networking
Events (APA LA, ULI LA, ICSC LA)
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4.0 Community Preservation Program
Existing Conditions
The City of Cudahy’s current lack of focused economic development resources is a barrier to commercial redevelopment. The majority of the City’s existing businesses are small and independent retail and light industrial entities.
While the Cudahy’s City Council has established an important goal of protecting existing businesses from the potential negative impacts of redevelopment such as gentrification and displacement, there is not a formalized program to routinely conduct outreach as a mitigation measure.
Figure 4: Cudahy Community Outreach
Source: City of Cudahy, 2023
This role would also include responsibility for data collection, monitoring and reporting on business contacts, displacement risks, vacancies, and other small business needs. These activities include launching a formalized Community Preservation Program focused on providing licensing, code It is recommended that the City of Cudahy continue to expand its staffing resources to effectively manage the commercial development activity envisioned in the City’s General Plan.
violations, and relocation assistance. This initiative is an example of the importance of expanding the City’s existing organizational capacity by hiring a full-time Economic Development Manager responsible for business retention and attraction.
Recommendations
4.1 Launch Small/Independent
Industrial/Commercial Business Outreach
Program
4.2 Update Retail Inventory (Quarterly)
4.3 Launch Community Preservation
Program
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5.0 Quality of Life Investment Strategy
Existing Conditions
According to feedback provided by the Economic Development Survey and Community Workshop, City residents and businesses desire enhanced quality of life amenities in Cudahy. Existing conditions are illustrated by the following graphic detailing the 50 destinations for City of Cudahy residents. Only three of the top 50 destinations are located in the City limits: McDonald’s (#30), Clara Street Park (#37), and Cudahy Park (#47).
Figure 5: City of Cudahy – Top 15 Destinations, 2021-2022 Source: Placer.ai; Willdan, 2023
5 Spark and Strengthen Economic Prosperity Guiding Principle, General Plan 2040 Amenities like pedestrian walkability, retail/dining/family entertainment offerings, and other community gathering spaces are also important for cultivating a thriving business climate attracting and retaining new businesses of diverse types and sizes.5 The following recommendations will focus City Community Development resources on integrating important quality of life improvements into future commercial development activity along Atlantic Avenue and Citywide.
Recommendations
5.1 Integrate Community Quality of Life
Goals into Developer outreach materials
5.2 Promote Walkability/Mobility
Improvements
5.3 Facilitate development of neighborhoodserving businesses • Community gathering hub
• Pharmacy
• Hotel
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Figure 6: Project for Public Spaces: What Makes a Great Placemaking? City of Cudahy
Community Vision for
Quality of Life Amenities:
• Opportunities for Enhanced Sense of
Place
• New Locations for Sociability, Uses &
Activities, Comfort & Image, Access &
Linkages
• Latino Heritage Plazas and Squares
• Walkable/Bikeable Pathways Throughout
the City
• Family Entertainment:
o Outdoor Brew Pubs with Games
o Bowling with Pizza)
o Food Trucks
• Outdoor Markets
• Clean & Safe Parks & Recreation Facilities
• Public Wellness Offerings:
o Rooftop Decks,
o Native Plant/Biofilter Landscaping
o Community Gardening
o Drinking Fountains/Comfort Stations)
Source: Project for Public Spaces; Cudahy Economic Development Community Workshop, November 2022; Willdan, 2023 What Makes a Great Place?
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6.0 Major Projects Accelerator Program
Existing Conditions
The City of Cudahy has designated the Atlantic Avenue corridor as a priority redevelopment area. There is measurable demand for multifamily residential and family entertainment uses, especially when considering the future stations. It is expected that these opportunities will not move forward without attention and proactive facilitation by the City of Pleasanton.
The Community Development Department should work closely with the Office of the City Manager on such efforts to resolve barriers to redevelopment and ensure the City can capitalize on investment opportunities. The advancement of major projects within the Entertainment District are expected to generate substantial incremental tax revenues over time. These revenues are currently lost due to retail leakage and—if recaptured—could be used for needed operating and infrastructure funding that the City will require in the years to come.
Recommendations
6.1 Prioritize Infrastructure Investments
linked to Entertainment District
Development
6.2 Advocate for Metro Station Name
Change (Gateway Cities to
Southgate/Cudahy Station)
6.3 Explore Implementation Framework for
Local Trolley System with Neighboring
Jurisdictions
6.4 Explore Shared and Structured Parking
Solutions
6.5 Market Successor Sites
Market Support for Cudahy
Entertainment District
Net New Annual Spending Power (2028)
Restaurants Bars Entertainment
Southeast LA Submarket: $56.8 M
20-Minute Drive Time: $448.0 M
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Entertainment Destination Case Study:
SteelCraft
To provide the City of Cudahy’s elected leaders with an example of the type of redevelopment activity envisioned by the Economic Development Strategic Plan, following is a case study example of a recent successful dining and family entertainment project in Bellflower, California.
SteelCraft is an outdoor urban eatery set in a communal dining environment, completely constructed from repurposed shipping containers. The project is an excellent case study of City-led retail/dining/entertainment redevelopment.
According to SteelCraft, the business first opened in February 2017 and became a staple within the Bixby Knolls neighborhood of Long Beach providing craft coffee, beer, wine, craft food and dessert (breakfast, lunch, and dinner). Two additional locations in Bellflower and Garden Grove opened in 2019. SteelCraft has curated high quality craft food and drink vendors where people can “Shop Local” while accessing a variety of unique multinational products.
These vendors include:
Off Duty Wine Bar
Solid Coffee Roasters
Burger Monster
Tacos Arandas
Ten Mile Brewing Brown Cup Boba
The project opened for business in June 2019 after 18 months of planning and economic development support from the City of Bellflower.
Figure 7: Steelcraft Brewery, Bellflower, CA
Source: SteelCraft; Willdan, 2023
The development is estimated to generate $50,000 in annual sales tax and an additional $22,000 in annual lease revenue. Moreover, these eateries will add approximately 64-120 jobs to the Bellflower community.
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The following true trade area Figure 4 illustrates the powerful draw of creating an entertainment destination. The red shading represents the inflow of customer spending to the Cudahy Shopping Center.
In comparison, the blue shading represents the higher volume of inflow to the SteelCraft brewery and food hall in Bellflower.
Figure 8: Comparison of Retail Destination Inflow – Bellflower vs. Cudahy Source: Placer.ai; Willdan, 2023
This comparison illustrates the potential regional draw for family entertainment-anchored eating and drinking uses. Building materials reflect a relatively lower cost composition of shipping container metals, enhanced with contemporary community branding in bright colors and ample gathering spaces. This type of
retail/dining/entertainment product is a gap in the Cudahy market with sufficient evidence of existing pent-up demand to attract interest from investors/developers and entrepreneurial small businesses.
Figure 9: Community Gathering-Oriented Redevelopment, Bellflower, CA (2023) Source: SteelCraft Bellflower; Willdan, 2023
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III. Economic Development Funding Plan
Public Private Funding Tools
The City may consider evaluation of potential economic
development tools and strategies on a case-by-case or transactional basis. Figure 4 profiles the tools that are available for communities in supporting public-private projects, which are often most effective when utilized in combination. Definitions for each tool are provided below and context for how the City might utilize these tools to meet its goals.
Real Estate and Property
Publicly owned, underutilized real estate assets such as vacant land and buildings, underutilized storage sites, dormant parking lots, or other assets have substantial unrealized value. Governments can reimagine these properties and facilitate development in alignment with their goals through ground leases, property sales, or other arrangements with the private sector. Utilizing these existing assets can generate revenue for a city without raising taxes. This tool should be used once a city has created a database of its assets, assessed potential market value of public assets, explored scenarios for development, and estimated the revenue impact.
The City of Cudahy may consider discounting land in specific cases where the project meets public benefit goals while also demonstrating that the project is not financially feasible without external funding (“gap financing”).
Land Banking is an emerging and valuable tool for City-led urban infill redevelopment. The value of the City’s Successor Agency sites may be leveraged to provide gap financing for the City’s major projects.
The City should revisit these redevelopment objectives when evaluating development proposals on a case-by-case basis to identify specific projects that qualify for gap funding versus others that are financially feasible without public subsidy. These projects would generate a higher cash return to the City if sold at market value – funds that may be allocated to support other projects in need on Atlantic Avenue. Successful use of this tool would require requests for proposal (RFPs) from developers for action on these properties and City Council approval.
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Figure 10: Public-Private Funding Tools
Source: Urban Land Institute; Willdan, 2023
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Development Incentives
Development incentives can take the form of both monetary and non-monetary tools. Non-monetary incentives include supporting a development project through the entitlement and permitting process as a “concierge” program that offers issue resolution and/or expedited reviews.
Monetary incentives include the reduction, exemption, or waiver of Development Impact Fees and administration fees. Tax and revenue rebates can also serve as a type of development incentive and have been outlined in greater detail as a separate tool.
Development and administrative fees are important sources of revenue for cities to ensure they can pay for the review of documents and the infrastructure, facilities, and other capital improvements associated with new development.
However, reducing, waiving, or creating exemptions for these fees can help reduce cost barriers for developments that align with local government goals. These incentives are best used when a local government has determined which projects may qualify for fee 6 https://localhousingsolutions.org/housing-policy-library/reductions-in-impact-feesand-exactions/ reductions, exemptions, or waivers and have alternative funding sources to support the cost of infrastructure that the fees would cover.6
The City has already completed a Development Fee Impact study, which makes this a viable tool to support Cudahy’s goals. Successful utilization of this tool requires the formation of a new program to define qualifying projects, application procedures, City Council approval, and ongoing monitoring and reporting to City Council.
Special Assessment Districts
These are special-purpose governmental units that exist separately from local governments to meet specific community health, safety, or economic needs.7 Special districts are established by state statute, are governed by a board, and pay special taxes to cover the expenses of the services that are provided beyond what the local government provides.
Tourism and Business Improvement Districts (BIDs) are formed by private property owners and businesses who pay a special tax to provide services such as advocacy on behalf of businesses, 7 https://www.csda.net/special-districts/learn-about
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infrastructure improvements, landscaping, marketing, and planning.
These districts work best when local businesses in an area have been organized by a coordinating entity and are collectively interested in establishing a district and willing to pay additional fees for services.
This tool is recommended for mid- to long-term implementation within the Entertainment District as short-term implementation may place an unreasonable burden on small and independent local businesses.
Land Use / Zoning
Land use and zoning tools can be used to help offset the cost of development that align with City goals. These include the ability to build increased density, reduce site development standards, modify architectural design requirements, and reduce parking requirements can help offset the costs of development. These incentives are decided locally, and cities should weigh the costs and benefits of each tool when deciding which to offer for priority developments.
The City is well-positioned to utilize this tool to facilitate development as the zoning for the Entertainment District has already been established and other work for land use and zoning efforts have been completed or are underway. Successful utilization of this tool requires the development of a program to define qualifying projects and City Council approval.
Tax/Revenue Rebates
Cities can provide tax and revenue rebates to businesses as incentives for creating new jobs, moving into distressed neighborhoods, and enhancing the local economy. Businesses pay cities taxes (sales, use, payroll, etc.) and fees (administrative, utility, etc.), and a proportion of these can be refunded back to businesses for activities that cities wish to incentivize. Qualifying activities could include purchasing new equipment and business property, creating high-wage jobs, and/or creating and retaining jobs in specifically targeted industries.
Unique businesses and land uses such as casinos within Cudahy may be potential candidates for tax and revenue rebates. The City is only one of two in the state that has obtained a “roaming” casino license. Offering rebates would require the development of a new program that defines project eligibility; application, approval, and administration processes; and City Council approvals. Given the City’s prioritization of fiscal resiliency, the costs and benefits of utilizing this tool should be considered prior to program development.
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Public Private Partnership Delivery Methods
Public Private Partnerships (P3) are cooperative arrangements between public and private sector entities to construct public assets.
Delivery methods are the arrangements that P3 partners make to share responsibilities and risks such as project ownership, financing, design, construction, operation, and maintenance between each other.
Figure 5 highlights a range of delivery methods, demonstrating various stages of increasing private involvement and private sector assumption of risk.8
P3s are most often used on large, complex public works and development projects with extended timelines and where there’s a shortage of public funding. Use of this tool requires City capacity to identify, negotiate, and coordinate with a private sector partner. It also requires identification of a large project best suited for the P3 model in which the benefits outweigh the costs for both the City and the private sector partner.
Figure 11: Public-Private Partnership Delivery Methods
8 https://www.cacities.org/UploadedFiles/LeagueInternet/34/3483b09d-78d8-4fe1- b2e3-4e57c01af646.pdf
Source: League of California Cities; Willdan, 2023
Community Revitalization and Investment Area (CRIA) /
Enhanced Infrastructure Financing Districts (EIFDs)
Community Revitalization and Investment Authorities (CRIAs) and Enhanced Infrastructure Financing Districts (EIFDs) were created by the California Legislature from 2014-2015 to enable new models for financing infrastructure, affordable housing, and economic development in the state. The statutes allow cities and counties to form districts governed by a board or Public Financing Authority and use Tax Increment Financing (TIF)9 to finance qualifying projects. 9 TIF works by freezing property tax revenues at the “base level” of a designated project area. Additional tax revenue created in future years due to anticipated redevelopment and investment in the area (the “increment”) is diverted into a
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CRIAs focus on the production of affordable housing in areas that meet criteria for disadvantaged communities such as neighborhoods with high unemployment or crime rates, deteriorated infrastructure, and/or significantly lower median household income.10 CRIAs have an affordable housing set aside of 25% and have eminent domain powers. Eligible projects include civic infrastructure, mixeduse/affordable housing, business assistance, environmental remediation, roads/circulatory infrastructure, and
wastewater/groundwater.
EIFDs fund infrastructure, housing, economic development, climate adaptation projects, and other uses. All housing developed in EIFDs must be affordable.11 Eligible projects include industrial structures, mixed-use/affordable housing, Transit projects,
wastewater/groundwater, civic infrastructure, parks and open space, environmental remediation, childcare facilities, libraries, roads and bridges.
separate pool of money that can be used to pay for improvements or pay back financing issued against the anticipated TIF revenue.
10 https://scag.ca.gov/post/community-revitalization-and-investment-authority-cria 11 https://scag.ca.gov/post/enhanced-infrastructure-financing-district-eifd 12 https://ibank.ca.gov/
These tools each have their own specific requirements. To utilize them, the City generally must meet eligibility criteria, create a board or Public Financing Authority, develop plans for specific projects and funding, notify/engage residents in the process, and gain City Council approval.
State and Federal Grants / Funding
The state of California and federal government agencies offer numerous funding tools that can be layered into the capital stack of a project. State funding tools include the California Infrastructure and Economic Bank (IBank),12 Affordable Housing and Sustainable Communities Program (AHSC),13 and the CalHome Program.14 The state also has a searchable database of grants available based on category.15
Federal funding ranges broadly from business financing to direct funding for local governments for infrastructure and community and economic development. Tools can include Community
13 https://www.hcd.ca.gov/grants-and-funding/programs-active/affordablehousing-and-sustainable-communities 14 https://www.hcd.ca.gov/grants-and-funding/programs-active/calhome 15 https://www.grants.ca.gov/
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Development Block Grants (CDBG),16 Opportunity Zones,17 New Market Tax Credits,18 Small Business Administration Loans,19 and EB-5 Immigrant Investor Program.20 Federal funding is also available for local governments and regional collaborations through numerous programs created by the Investment Infrastructure and Jobs Act/Bipartisan Infrastructure Law, CHIPS and Science Act, and Inflation Reduction Act.
Philanthropic organizations also offer funding for place-making infrastructure in public spaces. An example of this type of funding is the Knight Foundation’s Community Grant Program in Long Beach, CA. The funding is used to connect people to the places where they live and to the public life of the community through the design, construction, and programming of inclusive and equitable public spaces.21
Each state, federal, and philanthropic funding mechanism has specific eligibility and reporting criteria that should be evaluated to 16 https://www.hud.gov/program_offices/comm_planning/cdbg 17 https://www.irs.gov/credits-deductions/businesses/opportunity-zones 18 https://www.cdfifund.gov/programs-training/programs/new-markets-tax-credit 19 https://www.sba.gov/funding-programs/loans
20 https://www.uscis.gov/working-in-the-united-states/permanent-workers/eb-5- immigrant-investor-program
determine fit on a project-by-project basis. Use of these funding sources also requires City capacity to identify, apply for, and manage funds.
Property Assessed Clean Energy (PACE)
This model is used for financing energy efficiency and renewable energy improvements on private properties. PACE uses borrowed capital from public or private funds to pay for upfront costs on qualifying improvements, the local government places a property tax assessment secured with a lien on the property, and the property owner pays for the completed work via the assessment, and repayments are remitted back to the lender.22
PACE statutes are enabled at the state level, and local governments provide further authorization of the program. The industry is trending towards more standardized programs administered by third-party entities and a spectrum of involvement by local governments exists.23 This tool is best used in alignment with a city’s 21 https://knightfoundation.org/programs/communities/
22 https://www.energy.gov/sites/prod/files/2017/10/f39/FL1710_WIP_CPACEv2.PDF 23 https://www.energy.gov/scep/slsc/property-assessed-clean-energy-programs
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energy efficiency/renewable energy goals and when local governments have adequate resources to ensure legal and administrative set up for the program.
The State of California created the Commercial Property Assessed Clean Energy (C-PACE) program to encourage commercial,
industrial, and multi-family property owners to finance energy efficiency and renewable energy improvements through their property tax payment. Note that CRIAs and EIFDs can combine tax increment with PACE funding to further reduce capital cost outlays.
The PACE program can assist with energy efficiency goals but is not expected to attract major investments in Cudahy’s Entertainment District or further the City’s future vision and brand identity. Table 4 provides an overview of each tool in the context of redevelopment targets in Cudahy’s emerging Entertainment District.
Joint Powers Authorities
These agreements allow two or more public agencies to join together and provide more effective or efficient government services (i.e., redevelopment projects, regional transportation projects, etc.). Public agencies can either contract to jointly exercise common powers or form a separate legal entity. The new entity has independent legal rights including the ability to enter into contracts and hold property.
JPAs in California are governed by state Government Code section 6500 and are formed when public agencies enter into agreements that state the powers of the JPA and how those powers will be exercised. The governing bodies of all public agencies involved must approve the agreement for a JPA to be formed.
To note, precedent exists for Successor Agencies to form a JPA for redevelopment purposes (i.e., to pool resources, coordinate redevelopment efforts, and eliminate redundant or overlapping services to reduce local government costs). JPAs can also obtain more favorable rates or bids from outside services to achieve economies of scale.
Use of this tool requires identification of and coordination with a partner jurisdiction in alignment with the City’s goals, capacity to negotiate an agreement, and City Council approval of the agreement. This tool is not considered a primary target by the City of Cudahy due to the desire to maintain autonomy over the City’s decision-making authorities and funding priorities. This tool may prove useful at some point in the future in cases where a regional approach to transportation infrastructure would clearly benefit the City’s interests.
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Table 4: Cudahy Public-Private Funding Tools Rankings
Rank Tool Description Opportunities/Constraints For Use 1 Real Estate &
Property
• Cities can reimagine publicly owned properties and facilitate development in line with their goals through ground leases, property sales, land banking, and other arrangements with the private sector
• Used once a city has created a database of its assets, assessed the potential market value of public assets,
explored scenarios for development, and estimated the
revenue impact
• Successor sites already identified
• Requires RFPs for action on property and City Council approval
2 Land Use/Zoning • Allow target developments ability to build increased density, reduce site development standards, modify architectural design requirements, and/or reduce parking requirements • Decided locally, weigh costs and benefits of each tool when deciding which to offer for priority developments
• Zoning of entertainment district already established, other work for land use/zoning completed or underway
3 Development
Incentives
• “Concierge” entitlements and permitting provides nonmonetary incentives; reduction of Development Impact Fees is a form of monetary incentive
• Best used when local government has determined which
projects may qualify for fee reductions, exemptions, or waivers and have alternative funding sources to support the cost of infrastructure that the fees would cover
• Requires City Council approval on a case-by-case basis and formation of a new program defining qualifying
projects, application procedures, and ongoing
monitoring and reporting to City Council
4 Tax/Revenue
Rebates
• Businesses pay cities taxes and fees, and a proportion of these can be refunded back to businesses for qualifying activities that cities wish to incentivize
• Fiscal resilience is a primary concern for the City;
rebates may not provide meaningful reimbursement to
close project gaps in the near- to mid-term
5 State, Federal,
and Philanthropic
Funds
• State, federal, and philanthropic entities have numerous funding mechanism available, and each has specific eligibility and reporting criteria that should be evaluated to determine fit on a project-by-project basis
• Requires capacity to apply for and manage grant funds • Projects must align with funding eligibility requirements and some programs require matching funds
6 P3 Delivery
Methods
• Arrangements that P3 partners make to share responsibilities and risks such as project ownership, financing, design, construction, operation, and maintenance between each
other
• Best suited for large, long-term projects
• City capacity needed to identify/ negotiate/coordinate with private sector partner, and private sector benefit that outweighs risk
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Rank Tool Description Opportunities/Constraints For Use 7 Special Districts • Formed by private property owners and businesses who pay a special tax to provide services such as advocacy on behalf of businesses, infrastructure improvements, landscaping, marketing, and planning
• Work best when local businesses in an area have been
organized and are collectively interested in establishing a district and willing to pay additional fees for services • Need local business support and willingness to pay
additional fees, and an organizing entity
• Recommended for mid- to long-term implementation
within Entertainment District as short-term
implementation is expected to place an unreasonable
burden on existing small and independent local
businesses
8 CRIA • Type of regional multi-jurisdiction Tax Increment Financing (TIF) focused on affordable housing
• Eligible projects include: civic infrastructure, mixeduse/affordable housing, business assistance, environmental remediation, roads/circulatory infrastructure, and
wastewater/groundwater
• Must meet disadvantaged eligibility criteria,
demonstrate need and bond servicing requirements,
create 5-person board.
• No voter approval required for formation or bond
issuance; however, plan adoption is subject to one-time majority protest
9 EIFD • Type of Tax Increment Financing (TIF) focused on infrastructure and public/private partnership development • Eligible projects include Industrial structures, mixeduse/affordable housing, Transit projects, wastewater/groundwater, civic infrastructure, parks and open space, environmental remediation, childcare facilities, libraries, roads and bridges
• Must create 5-person Public Financing Authority and
develop District’s Infrastructure Financing Plan (IFP), which outlines the specific projects the District will fund 10 Joint Powers
Authorities
• Agreements allow two or more public agencies to join to provide more effective or efficient government services such as redevelopment and regional transportation projects
• New entity has independent legal rights including the ability to enter into contracts and hold property
• Requires coordination among Cudahy and outside
partner jurisdiction(s), negotiation, and City Council
approval of agreement
• Precedent exists for Successor Agencies to form a JPA for redevelopment purposes
11 PACE • Used for financing energy efficiency and renewable energy improvements on private properties
• Best used in alignment with a city’s energy
efficiency/renewable energy goals and when local
governments have adequate resources to ensure legal and administrative set up for the program
• Can assist with energy efficiency goals but is not
expected to attract major investments in Cudahy’s
Entertainment District or further the City’s future vision and brand identity
Source: City of Cudahy; Urban Land Institute; Willdan, 2023
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Next Steps
Performance Metrics
In the early years of Economic Development Strategic Plan (EDSP) implementation, it is typical for performance metrics to be limited to variables tied to readily available data.
Going forward, performance targets should expand to evaluate annual progress against goals defined by each economic
development recommendation (i.e., increases or decreases in values according to a baseline year benchmark).
Given that the majority of the recommended performance indicators are aspirational at this time, it is reasonable to assume that each variable is starting at zero and that the target of each variable is to increase over the next five to ten years upon adoption of the EDSP.
Table 5: EDSP Performance Metrics
Top 15 Performance Metrics Targets by Economic Development Recommendation
1.0 Internal Capacity Building Initiative 4.0 Small Business Support Program 1: # of Planning & Economic Development Resources (FTEs) 10: # of New Business Licenses Approved for Minority, Women-Owned & Disadvantaged Business Owners
2: # of Formal Strategic Partnerships (Neighboring Jurisdictions, Regional Organizations) 11: # of Small Business Outreach Touchpoints
2.0 Community Identity/Branding Program 5.0 Quality of Life Initiative 3: # of new projects adhering to established architectural guidelines 12: $ Value of Walkability/Mobility Improvements 4: # of new projects including placemaking improvements 13: # of New Neighborhood-Serving Businesses (Community Gathering Sites, Hotel, Pharmacy)
5: # of Examples of City Identity Initiatives Achieved
3.0 Business & Investment Attraction Program 6.0 Major Projects Accelerator Program 6: Tax Base Value ($) 14: $ Value of Private Construction Investment 7: # of New Business Licenses 15: Sq. Ft. of New Entertainment District Commercial Development
8: # of Housing Starts
9: # of Target Business/Developer contracts established 1 Proposed Economic Development Strategic Plan performance metric targets are planning factors subject to change according to the City's economic development priorities and resource availability.
Source: City of Cudahy; International Economic Development Council; Willdan, 2023
City of Cudahy I California Draft for Interview Review Purposes Only – Not for Distribution Economic Development Strategic Plan 2023
Part II – Demographic & Economic Profile Report Part II – Demographic & Economic Profile Report II – 0 City of Cudahy, CA
Economic Development Strategic Plan 2023
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Economic Development Strategic Plan 2023
Part II – Demographic & Economic Profile Report II – 1
Part II: Demographic & Economic Profile Report
I. Community Change & Growth
Population
Table 6 presents historical and projected population estimates for Cudahy, Bell, Bell Gardens, Huntington Park, Maywood, and South Gate.
South Gate has the largest population among the comparison jurisdictions. Cudahy ranks the lowest in population totals compared to the surrounding jurisdictions. However, as a one-square mile city, Cudahy has the densest population in the region.
According to Esri, Cudahy and its surrounding jurisdictions have experienced a slight population decline since 2000 and are projected to continue to decline through 2028.
Cudahy has and is projected to continue to experience a population decrease, but at a slower rate than all other surrounding jurisdictions averaging a -0.21% decrease from 2023 to 2028.
Table 6: Population Growth Trends, Cudahy & Neighboring Jurisdictions, 2023-2028 Population 2023 2028
Projected Net
Change
Cudahy 22,613 22,514 -231
Bell 32,976 32,309 -667
Bell Gardens 38,628 37,850 -778
Huntington Park 50,051 53,113 -938
Maywood 24,668 24,243 -425
South Gate 91,872 90,472 -1,400
TOTAL 260,808 260,501 -4,439
Source: Esri Business Analyst; Willdan, 2023
Notably, Esri calculates population growth projections based on multiple economic indicators including historical housing starts.
California out-migration, existing housing shortage, and cost of living are contributing factors to this trend.
Cudahy’s projected declining population assumes no change in planning interventions like such as the City of Cudahy’s new Entertainment District designation and urban infill housing development.
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Figure 12: Estimated and Projected Population Growth, 2000-2028 Source: ESRI Business Analyst; Willdan, 2023
70%
80%
90%
100%
110%
120%
130%
140%
150%
2000 2010 2023 2028
Cudahy Bell Bell Gardens
Huntington Park Maywood South Gate
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Household Growth and Size Characteristic
According to the US Census Community Survey and data
reported by ERSI Business Analyst, Cudahy ‘s population is not projected to grow between 2023 to 2028. These
projections are based on historical building permit data and other factors.
Cudahy can manage future growth by facilitating and
accelerating mixed use multifamily housing construction that would eventually surpass the US Community Survey’s
projections.
Table 7: Household Growth Trends, 2023-2028
Number of
Households 2023 2028
Projected Net
Change
Cudahy 5,737 5,739 2
Southeast LA 70,656 70,133 -523
LA County 3,427,635 3,453,233 25,598
Source: ESRI Business Analyst; Willdan, 2023
Cudahy’s average household size continues to be relatively higher than Southeast LA and LA County at 3.94 versus 3.73 and 2.85, respectively.
This metric is highlighted in Cudahy’s Regional Housing Needs Assessment as an indicator of overcrowding and an opportunity for improvement.
Figure 13: Average Household Size (Persons Per Household) Source: ESRI Business Analyst; Willdan, 2023
3.94 3.73
2.85 0.00
0.50 1.00
1.50 2.00
2.50 3.00
3.50 4.00
4.50 Cudahy Southeast LA LA County
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Age Characteristics
Cudahy is home to predominantly working-age residents and their children. Nearly 42% of Cudahy’s population is aged 25 to 54, with an additional 43.4% of residents who are 24 and younger. Only 7% of Cudahy’s population is of retirement age (65 years or older). On average, the comparison jurisdictions reported 40% of residents who are high school age or younger. Figure 8 compares the age distribution for each of the geographies examined in this analysis.
Figure 14: Age Distribution by Cohort, 2023
Source: ESRI Business Analyst; Willdan, 2023 8.5%
16.6%
8.6%
9.6%
41.9%
7.8%
7.0%
8.2%
16.4%
8.2%
8.4%
42.0%
8.5%
8.3%
8.5%
16.8%
8.2%
9.1%
41.8%
7.9%
7.9%
7.7%
16.0%
7.8%
8.4%
42.4%
8.2%
8.5%
9.2%
17.0%
8.1%
8.5%
42.4%
7.7%
7.5%
8.0%
15.7%
7.7%
8.2%
42.0%
8.8%
9.9%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
0-4 (Pre-K) 5-14 (Elem./MS) 15-19 (HS) 20-24 (Coll.) 24-54 (Prime WF) 55-64 (Late Career) 65+ (Retired) Cudahy Bell Bell Gardens Huntington Park Maywood South Gate
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Part II – Demographic & Economic Profile Report II – 5
Household Income
Household income is an important factor in mixed-use
retail/dining/entertainment and multifamily investment attraction.
Prior to inflation and interest rate pressures, the target threshold for median household incomes was $75,000 per year.
Household income distributions indicate higher concentrations of lower and middle-income households within Cudahy and its neighboring jurisdictions (Figure 12). Cudahy has the second lowest median household income among the comparison jurisdictions, Bell Gardens being the lowest median household income. Higher income households are more concentrated in South Gate and Maywood, compared to Cudahy. However, the projected net change in household incomes within the Southeast LA submarket is expected to generate substantial incremental retail spending power to support new Entertainment District businesses. Taken as a whole, the Southeast LA submarket is a powerful driver of demand for the City of Cudahy’s target retail/dining/entertainment uses.
Figure 15: Projected Net Change in Median Household Income (2023 to 2028) Source: ESRI Business Analyst; Willdan, 2023 $51,563
$53,547
$50,872
$52,854
$55,779
$61,658
$6,041 $6,633 $5,739
$7,769 $7,969
$10,028
$57,604
$60,180
$56,611
$60,623
$63,748
$71,686
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
Cudahy Bell Bell Gardens Huntington Park Maywood South Gate 2023 2028
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Part II – Demographic & Economic Profile Report II – 6
Population by Race
Among all comparison jurisdictions Hispanic residents make up the majority of the population. Residents of Hispanic origin make up over 90% of the population in Cudahy, Bell, Bell Gardens, Maywood, and Huntington Park. Huntington Park also has residents consisting primarily of either Hispanic, White or “Other.” Figure 16: Population by Race1, 2023
1 Persons of Hispanic origin are a subset of other race categories; therefore, totals do not add. The category labeled "Other Race" Includes the Census Categories "Indian American", "Pacific Islander", "Some Other Race Alone" and "Two or More Races" which individually represent a small percentage of the City's and County's population.
Source: ESRI Business Analyst; Willdan, 2022 16.0% 0.9%
3.1%
0.8%
0.2%
61.0%
18.0%
96%
17.9%
0.5%
2.6%
0.8%
0.1%
55.7%
22.3%
94%
13.7%
0.7%
3.2%
0.7%
0.1%
62.4%
19.3%
96%
14.2%
0.8%
2.8%
0.7%
0.1%
61.5%
19.9%
97%
12.9%
0.6%
2.8%
0.4%
0.0%
61.7%
21.6%
97%
14.9%
1.1%
3.4%
0.8%
0.1%
57.7%
22.0%
26%
0%
20%
40%
60%
80%
100%
120%
White Black Amer. Indian/AK
Native
Asian Pacific Islander Other Race Two or More
Races
Hispanic Origin
Cudahy Bell Bell Gardens Huntington Park Maywood South Gate
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Part II – Demographic & Economic Profile Report II – 7
Housing Value and Tenure Characteristics
The share of homeowners compared to renters has generally decreased in Cudahy and Los Angeles County since 2010, while the share of homeowners has remained relatively constant in the Los Angeles MSA. Cudahy has the lowest share of homeowners
compared to the other two geographies, and it is projected to decrease further through 2028. The Los Angeles MSA has the highest projected share of homeowners among the geographies identified with 49.1% of homes projected to be owner occupied by 2027.
Figure 17: Housing by Tenure
Source: ESRI Business Analyst; Willdan, 2023 18.0% 14.1%
14.8%
32.8%
31.5%
32.6%
47.7%
46.1%
46.4%
82.0%
85.9%
85.2%
67.2%
68.5%
67.4%
52.3%
53.9%
53.6%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2023 2028 2010 2023 2028 2010 2023 2028
Cudahy Southeast LA LA County
Owner Occupied Renter Occupied
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The lower rates of homeownership in Cudahy can be partially attributed to the low median age as younger households are more likely to own than rent their homes. It can also be attributed to the affordability of housing in Cudahy compared to both the County and the region as rising housing prices make homeownership less attainable for residents.
Figure 16 presents a comparison of current median housing value in Cudahy, Los Angeles County, and the Los Angeles MSA. The median value in Cudahy is approximately $171,000 below the County and $194,000 less than in the MSA.
Fix
Figure 18: Median Housing Value, 2023
Source: ESRI Business Analyst; Willdan, 2023 $514,757 $576,490 $792,145
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
Median Value
Cudahy Southeast LA LA County
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Part II – Demographic & Economic Profile Report II – 9
Educational Attainment
Cudahy’s educational attainment levels are similar to comparison jurisdictions, except for Huntington Park and South Gate. Of Cudahy’s population aged 25 and older, 8% have a bachelor’s degree or higher, and over 25% are high school graduates or GED recipients.
Cudahy, Bell Gardens and Maywood had the lowest shares of residents with bachelor’s degrees or graduate or professional degrees and have a significant proportion of residents without a high school diploma.
Figure 19: Population 25+ Years by Educational Attainment, 2023 Source: ESRI Business Analyst; Willdan, 2023
0%
5%
10%
15%
20%
25%
30%
35%
South Gate Huntington Park Maywood Bell Bell Gardens Cudahy
City of Cudahy I California
Economic Development Strategic Plan 2023
Part II – Demographic & Economic Profile Report II – 10 Fiscal Resiliency Assessment
The City’s General Fund revenue is primarily reliant upon General Fund Taxes, Intergovernmental Revenues, and Licenses and Permits, which account for 86% of total General Fund revenue.
Table 7 shows the total revenue contributing to the General Fund by source and dollar amount and demonstrates the diversity of the City’s revenue streams.
Over the last four years, licenses and permits have become the largest source of revenue. This growth is driven by new business development and operations, particularly in urban farming.
General Fund Taxes, which include Sales Tax, have decreased moderately during the same period due to population changes and resident spending moving outside City limits.
Table 8: General Fund Revenue
General Fund Revenue
Revenue Source FY19/20 FY20/21 FY21/22 FY22/23
General Fund Taxes $3,830,413 $3,725,383 $3,362,720 $3,441,700 Intergovernmental
Revenues $3,287,469 $3,549,258 $3,210,998 $3,187,964
Licenses & Permits $1,032,736 $2,595,205 $2,319,100 $3,593,999 Fines & Forfeitures $153,076 $164,380 $86,500 $181,500
Building & Safety $525,499 $322,977 $373,000 $292,000
Use of Money &
Property $1,100,698 $99,939 $132,500 $101,500
Charges for ServicesPlanning,
Engineering
$285,706 $217,901 $239,000 $182,000
Charges for ServicesMisc. $77,986 $5,036 $50,300 $114,000 Other Revenues $351,530 $261,098 $87,000 $732,500
TOTAL REVENUE $10,645,114 $10,941,177 $9,861,118 $11,827,163 Change in GF
Revenue $296,063 -$1,080,059 $1,966,045
Source: City of Cudahy Budget Fiscal Year 2022-23; Willdan, 2023 The City’s intentional efforts to attract new
retail/dining/entertainment business activity
within Atlantic Avenue’s emerging Entertainment
District will recapture and grow future General
Fund Tax revenues
City of Cudahy I California Draft for Interview Review Purposes Only – Not for Distribution Economic Development Strategic Plan 2023
Part II – Demographic & Economic Part II II – 11 I – Real EProfil stateReport e M arket Analysis City of Cudahy, CA
Economic Development Strategic Plan 2023
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Part III: Real Estate Market Analysis III – 1
Part III. Real Estate Market Analysis
I. Redevelopment Constraints & Opportunities
Executive Summary
As a key Gateway Community of Los Angeles County, the City of Cudahy’s real estate market holds potential for complementary uses that better meet the vision of the City and serve the community. To evaluate the market demand for all uses, Willdan reviewed readily available economic and market data for the City of Cudahy and the larger submarkets the City falls within. Interviews with local and regional real estate brokers, economic development entities, and civic/cultural representatives were also conducted.
The market study revealed a number of unexpected opportunities for the City of Cudahy within the regional market that would serve to attract new businesses to the Entertainment District and generate new tax revenues:
Cudahy is Primarily a Bedroom Community
The City is not currently an importer of jobs for residents from throughout the region. Currently, 97% of those who are employed and live in Cudahy travel outside of the City for work. To diversify the tax 24 https://www.hcd.ca.gov/housing-elements/docs/cudahy-6th-draft101521.pdf base, Cudahy must evolve from serving as a bedroom community to a competitive employment center in the region.
Weak Industrial Sector
The City's industrial businesses are not contributing to the City’s economic base. The City’s rezoning of industrial land to Entertainment District uses will trigger redevelopment activity adjacent to underutilized and disinvested industrial properties. These existing businesses should be evaluated on a property-by-property basis for code and licensing violations as part of a targeted Business Retention & Expansion Program. Special consideration should be given to nonconforming business operations to mitigate the threat of displacement and gentrification.
Emerging Multifamily Development
Multifamily residential development activity is occurring on its own.
Public support for future residential development should focus on attracting new urban infill mixed-use product to meet the City’s Regional Housing Needs Assessment (RHNA)24 targets and the scale, quality, and character of new product according to the General Plan Update 2040.25
25 https://www.cityofcudahy.com/DocumentCenter/View/216/Cudahy-General-Plan2040-PDF
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Entertainment District Infill Opportunities
Cudahy is well-positioned in a powerful regional market with strong spending power. The area also demonstrates substantial demand for a variety of retail, dining, and entertainment options. However, existing options within Cudahy and $65 million in retail leakage indicate that residents primarily spend outside City limits to meet their needs. This strong spending power and local demand create near-term opportunities to attract, grow, and support various
retail/dining/entertainment users within the Entertainment District. The SteelCraft brewery in Bellflower represents a model for how the City can support unique infill opportunities to make the Entertainment District a destination hub for residents and surrounding communities. 26 https://www.cushmanwakefield.com/en/united-states/insights/us-articles/medtailwhen-healthcare-meets-retail Office/Medical Office Development
Cudahy is not considered a high-value office market location, and office development is even less likely within the current post-Covid office market conditions where work from home policies have upended the economics of speculative office development.
With a focus on the potential synergies of proximity to the regional Kaiser Permanente Medical Center and emerging “Med-Tail” development26, medical office product is considered a longer-term opportunity and tied to availability of commercial space at a price point that will support the high fit out costs of investment grade medical space users.
In the future, disinvested/underutilized commercial shopping centers may offer opportunity for redevelopment and reuse for medical office.
This strategy would be further strengthened by outreach and marketing.
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Entertainment District Growth Supports Hotel Development The City is leading an intentional transition from disinvested industrial uses to destination Entertainment District uses. Over the long term, this strategy will support new hotel demand along Atlantic Avenue as the City’s primary commercial corridor with excellent visibility and traffic counts (midscale class, 100-150 keys, 2-4 stories).
These real estate market findings are further supported by the General Plan’s guidance. The specific Entertainment District properties with the highest likelihood of attracting near-term investment and redevelopment activity will be those with sufficient land capacity, environmental approvals, and an identifiable and willing seller.
The City’s role in catalyzing the targeted redevelopment envisioned by the new Zoning Code is tied to these foundational elements that will be further addressed in the Retail Redevelopment Strategy’s policy and program recommendations.
The following table provides a summary of these market findings according to data and input provided by the City of Cudahy Community Development Department, Urban Land Institute (ULI), Lee & Associates (commercial brokers), and research collected by Willdan Financial & Economic Consulting Services from May 2022 through June 2023.
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Table 9: Atlantic Avenue Commercial Market Opportunities 2024-2028 Sector Atlantic Avenue Market Opportunity Developer Requirements
MULTIFAMILY
2 to 3 mixed-use multifamily buildings over the
next 5-7 years
low-income and market rate workforce housing
product
Neighborhood Infill typology
(25-120 units per property, 2-5 stories)
1 to 5 acres per project
Street frontage and rear-access parking
Structured parking likely requires public subsidy
DESTINATION RETAIL/
ENTERTAINMENT
Substantial retail leakage identified; near-term
opportunity for a variety of regional familyoriented retail/dining/entertainment uses:
Dining, sports arena, gambling, bowling alley,
jump zone, fast casual dining (sit-down pizza),
community gathering (brewery)
1 to 2 acres per project
Approx. 5,000-10,000 Sq Ft per tenant
High visibility locations & intersections along Atlantic Avenue
MIXED-USE
RESIDENTIAL
Ground-floor mixed-use residential over retail will
occur on a site-by-site basis over the next five
years
Multifamily building retail uses require
1,000 - 5,000 Sq Ft per tenant
MEDICAL
OFFICE
Outpatient facility is possible if aligns with
expansion needs of nearby regional medical
center systems (i.e., Kaiser Permanente Cudahy
Medical Offices)
20,000 - 30,000 Sq Ft
2 stories
High visibility locations & intersections
along Atlantic Avenue
HOTEL 1 new hotel in the next 5-10 years
1.5 to 4 acres per project
Midscale class (100 -150 keys, 2-4 stories)
High visibility locations & intersections
along Atlantic Avenue
Source: City of Cudahy; ULI-the Urban Land Institute; Lee & Associates; Willdan, 2023
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Methodology and Approach
Willdan collected demographic and economic data from June through November of 2022 from a variety of industry standard software subscription licenses to evaluate trends and projections using a baseline of the year 2021. The study also relies on client provided background reports, studies, data, and individual market research interviews.
Geographic Information Systems (GIS)
This analysis is informed by geographic information systems (GIS) data in several ways. Spatial data was collected for each District where available, including from ESRI Business Analyst, CoStar and Placer.ai. A description of these proprietary data sources is provided below.
ESRI Business Analyst
ESRI Business Analysis (www.bao.arcgis.com) was used to collect data for several purposes within this analysis. It was primarily used to obtain demographic and economic indicators for each of the comparison cities. The platform aggregates data from a variety of 27 https://www.hcd.ca.gov/housing-elements/docs/cudahy-6th-draft101521.pdf sources, including the US Census’ American Community Survey, Bureau of Labor Statistics, and other proprietary sources.
CoStar
CoStar (www.costar.com) is a commercial real estate data aggregator that provides real-time analytics for retail, multifamily, office and industrial properties. Willdan accessed CoStar on or before February 2023 to identify market indicators for rents, lease rates, sales, vacancy and absorption.
Placer.ai
Placer.ai (www.placer.ai) is a new web-based tool that provides analysis of consumer behaviors based on anonymous cell phone data. Willdan relied on Placer.ai data to define the “true trade areas,” customer journey patterns, and leakage for
retail/dining/entertainment uses.
Regional Housing Needs Assessment
The City of Cudahy 6th Cycle Housing Element Update27 is a required element of the City’s General Plan. The update covers the time period from October 15, 2021, to October 15, 2029, and includes the Regional Housing Needs Assessment (RHNA) – the measure of Cudahy’s share of regional housing needs in comparison
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to what has already been achieved in meeting those needs. While the Housing Element includes community demographics, programs, and ‘quantified objectives’ to guide the City’s development through 2029, the EDSP’s Economic Development Briefing Book provides custom trends and projections for the year 2023 through 2029 specific to the City’s broader economic development objectives.
Existing Conditions
Location
The City of Cudahy (“the City”) is centrally located at the southeastern gateway into the thriving Los Angeles regional market with substantial regional population density and associated spending power. In area, Cudahy is the second smallest city in Los Angeles County with one square mile of area, but with one of the highest population densities of any incorporated city in the United States.
Cudahy is bordered by the Cities of Bell (north), Bell Gardens (east), South Gate (south and southwest), and Huntington Park (west).
Cudahy offers exceptional transportation access for industry as a “Gateway City” located south of the Los Angeles BNSF rail yard, the confluence of I-710 and I-5/I-105, and north of the Southgate Diamond Railroad Crossing.
With intentional urban infill redevelopment activity, the City of Cudahy can attract new businesses to the City’s
retail/dining/entertainment district and capture a greater “fair share” of regional spending.
Development History
The City was incorporated in 1960, nearly 52 years after Mr. Michael Cudahy, a local cattle rancher, acquired the original 2,777 acres from the larger Ranch San Antonio and subdivided the land into long and narrow “Cudahy lots” approximately 50-100 feet wide and 600-800 feet long.
Cudahy is primarily a bedroom community of low density attached single family housing units stacked horizontally within the Cudahy lots and accessible by the City’s primary commercial corridor – Atlantic Avenue.
Over the years, Cudahy grew into a home for multiple generations of Mexican American families with more than 93% of residents speaking Spanish at home today.
Physical Characteristics
Atlantic Avenue, the City’s primary commercial corridor located south of E. Florence Street and north of Patata Street, is characterized as fragmented, deteriorated, and blighted.
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The northern half of the City has evolved into a mix of disinvested neighborhood-serving retail plazas. The southern half of the City is challenged by low-intensity, non-conforming industrial uses including truck storage, auto body repair, and other light industrial businesses. The existing conditions of Atlantic Avenue as the City’s primary commercial, tax generating corridor are considered both an opportunity and a threat.
In comparison, the City of Southgate located just across the southern City boundary has successfully attracted several large, big box retailers after more than 20 years of planning the Azalea shopping center. There is evidence of retail leakage by Cudahy residents who leave the City’s boundaries for a variety of retail/dining/entertainment venues currently not available at home.
Legal & Regulatory Overview
Through a series of planning initiatives from 2018 to 2022, the City of Cudahy identified the need to focus community and economic development resources on the revitalization of Atlantic Avenue as the City’s primary tax generator. These efforts include:
City of Cudahy General Plan 2040 & Economic Development Element (Adopted 2018)
Zoning Code Revision (2023-2024)
Development Impact Fee Update (2021)
City of Cudahy 6th Cycle Housing Element Update (October 2021)
City of Cudahy Strategic Plan (2022)
Architectural Design Guidelines (2024)
Taken together, this policy guidance illustrates the progression from reactive to proactive planning with a focus on implementation.
The City is also in the process of expanding staff resources to administer increased development activity. To date, the City has increased full-time staff from 5 to 50 FTEs and reorganized internal staff departments to house planning and zoning, economic development, and community redevelopment functions under one umbrella in the Community Development Department. The City’s resources have been expanded to implement the City’s priority planning initiatives and diversify the City’s tax base through commercial redevelopment and new business attractions.
Zoning Considerations
As one notable example, the City rezoned the southern half of Atlantic Avenue from light industrial to mixed-use Entertainment District to allow for a shift to more commercial tax generating activity while concurrently updating the City’s Development Impact Fee policy to increase revenue for capital improvements.
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Community & Economic Development Context
Concurrently, the City’s Comprehensive Plan Update 2040 included an Economic Development Element that calls for:
a diverse economy
attracting and retaining a thriving business climate
fostering a skilled workforce
strengthening public and private development that aligns with community vision
fiscal health; and
uplifting the economic potential of the City’s vulnerable populations.
While the Economic Development Element’s goals and objectives are still relevant today, the prior recommendations lacked a detailed implementation plan to direct the Community Development Department’s workplan and secure the required staff resources.
The Economic Development Element also identified several PublicPrivate Partnership (P3) Opportunity Sites to define the City’s priority redevelopment areas along Atlantic Avenue. These P3
opportunities build off the City’s 2015 Long Range Property Management Plan that brought 9.54 acres of property under the Economic Development Strategic Plan 2023
Part III: Real Estate Market Analysis
City of Cudahy’s oversight after the Cudahy Community
Development Commission was dissolved.
In 2021, the City undertook a rezoning initiative that designated the southern quadrant of Atlantic Avenue as “Entertainment District” use and a priority redevelopment area. With intentional urban infill redevelopment activity, the City of Cudahy has the opportunity to attract new businesses to the City’s retail/dining/ entertainment district and capture a greater “fair share” of regional spending.
The City is also in the process of expanding staff resources to support this increased development activity. Since 2022, the City has increased full-time staff from 18 to 42 and part-time staff from 11 to 26. The increase in staff capacity was coupled with an internal departmental reorganization to house planning and zoning, economic development, and community redevelopment functions under one umbrella in the Community Development Department.
Traffic Counts
An important measure of potential demand for destination retail and family entertainment uses may be illustrated by traffic counts.
Analysis of the relationship between gross retail sales and the
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volume of vehicles traveling north and south along Atlantic Avenue suggests that traffic is primarily commuter drive-through activity.
Figure 20: Traffic Heat Map
Source: ESRI Business Analyst; Willdan, 2023
This existing volume of vehicle trips is in the range of 120,000 to 250,000 trips per day. This level of throughput is an indicator of the opportunity for competitive, new retail/dining/entertainment products in the local submarket.
Retail Market Indicators
According to CoStar, Cudahy is located in the Los Angeles MidCities retail submarket (“the submarket”), which comprises many cities including Bellflower, South Gate, Lakewood, and Compton as well as parts of the city of Los Angeles (Figure 17). Data reflects Q2 2023 retail market indicators for the submarket as well as Cudahy specific indicators listed in Table 9.
The Cudahy submarket contains 50.4 million square feet of retail space. This includes 11.6 million square feet at Neighborhood Centers, 5.5 million square feet at Strip Centers, and 25 million square feet of General Retail. Most retail properties in the submarket are in smaller shopping centers which have outperformed malls and other retail buildings for the last several years.
Cudahy contributes 377,220 square feet of retail to the submarket (or 16.7 square feet per capita). In comparison, the City of South Gate contains 3.2 million square feet of retail (or 35 square feet per capita). This statistic illustrates the challenging “category killer” competition at the local level between Cudahy and its neighboring jurisdictions. Cudahy will need to evolve and diversify its retail product to a use lacking in the regional market to overcome the retail dominance of nearby shopping centers.
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Figure 21: Cudahy Retail Submarket
Source: CoStar; Willdan, 2023
2023: Vacancies, Absorption, Rents and Sales
Retail vacancy rate for the submarket is 4.2% compared to 5.4% vacancy in the Los Angeles metro. In 2022, Cudahy’s vacancy rate was 6.6%, which is lower than the City’s five-year average of 8 percent. While vacancy rates in Cudahy are higher than those in the submarket and LA metro, they have been decreasing slightly over the last three years as retail has recovered from the pandemic.
CoStar data indicates that retail rents in the submarket grew in the last 12 months by 1.2%, outpacing the LA metro on a year-over-year basis since Q1 2020.
Table 10: Retail Supply: City of Cudahy Retail Market Indicators, 2023 Retail Availability Q2 2023 5-Year Avg
NNN Rent Per SF $27.45 $18.09
Vacancy Rates 6.60% 8.00%
Vacant SF 24,913 32,074
Availability Rate 7.20% 10.80%
Available SF 27,313 43,216
Sublet SF - 130
Months to Market 21.3 13.4
Existing Buildings 35 35
Existing SF 377,220 400,445
12 Mo. Const. Starts - -
Under Construction - -
12 Mo. Deliveries - -
Retail Sales Past Year 5-Year Avg
Sale Asking Price Per SF - $607
Asking Price Per SF $482 $482
Sale Volume (Mil.) - $1.10
Retail Demand Q2 2023 5-Year Avg
12 Mo. Absorption SF 1,240 -1,828
12 Mo. Leasing SF 10,465 27,282
Source: CoStar; Willdan, 2023
A growing preference for convenience has helped grow demand for grocery-store anchored shopping centers, including in
neighborhood centers. This demand for retail also primarily serves
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residents due to a limited number of current tourist attractions in the submarket.
In the last 12 months, the submarket has seen 153,000 square feet of absorption, and the City has seen 1,240 square feet of absorption. Despite demand, the Cudahy submarket has had little retail development in recent years. According to CoStar, during the past five years, retail inventory has decreased by 110,000 square feet with demolitions outweighing new construction. Sales activity has also slowed due to the recent increases in interest rates.
Notably, there have been no new construction starts, deliveries, or projects under construction over the past five years or presently in the City of Cudahy. This along with strong regional retail demand are indicators of opportunity for infill retail/dining/entertainment redevelopment activity.
Cudahy Entertainment District Opportunities
The City of Cudahy is actively promoting the transformation of the City’s recently zoned Entertainment District from currently underutilized, disinvested light industrial uses. To evaluate the feasibility and potential benefits of this concept, Willdan conducted an in-depth market analysis of retail/dining/entertainment supply and demand characteristics.
Although Class A retail space is non-existent within the City limits according to CoStar, Class B/C retail is performing adequately with relatively low vacancy rates (6%) and rental rates averaging $30 per square foot.
Substantial retail leakage from Cudahy residents spending outside of the city’s boundaries underscores the existing gaps in retail/dining/entertainment supply.
Placer.ai’s Void Analysis indicates regional demand and sufficient spending power to support a variety of retail/dining/entertainment chains within the City limits.
True Trade Area analysis of the Steelcraft food hall and brewery illustrates the potential fiscal benefits of creating a destination draw in Cudahy.
The detailed assumptions in support of these findings as reported by Esri Business Analyst and Placer.ai is provided in the following overview of Placer.ai retail gap findings.
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Retail Gap Analysis
Customer journey data reported for City of Cudahy residents illustrates the lack of supply for a variety of retail goods and services.
For spenders who live in Cudahy and journeyed between home or work to a retail destination, only one of the top 15 locations over the past 12 months was inside of the City limits (Cudahy Plaza).
Table 11: Cudahy Customer Journey: Top 15 Retail Destinations, 2021-2022 # Retail Destination Location Visits
1 Azalea Regional Shopping Center South Gate 239,980
2 Stonewood Center Downey 156,892
3 Promenade at Downey Downey 136,566
4 Walmart South Gate 114,526
5 Plaza La Alameda Walnut Park 103,144
6 Plaza Mexico Lynwood 99,699
7 Downey Landing Downey 97,572
8 Lakewood Center Lakewood 96,920
9 Bell Gardens Marketplace Bell Gardens 79,339
10 Pico Rivera Towne Center Pico Rivera 77,865
11 Target South Gate 77,677
12 Cudahy Plaza Cudahy 76,547
13 Citadel Outlets Commerce 73,505
14 El Paseo South Gate Shopping Center South Gate 59,540 15 Costco Wholesale Norwalk 59,112
Source : Placer.ai; Willdan, 2022
The Cudahy local market lacks
regional superstore retail
product, highlighting sales
and property tax revenues
lost to neighboring
jurisdictions
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Figure 22: Retail Supply Overview – Regional Superstores, 2022 Cudahy City Boundaries
Source: Placer.ai; Willdan, 2022
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Market Leakage & Lost Tax Revenues
According to market outlook data reported by Placer.ai, a comparison of Cudahy residents’ spending power (demand) against sales captured by regional retail/dining/entertainment destinations (supply), there exists today substantial “unmet need” within the City of Cudahy.
The following Table 12 illustrates that the City of Cudahy is losing almost $2.3 million in annual local sales taxes from $65 million in lost sales from residents spending outside of the city limits.
Taking the evidence of retail leakage as an indicator of pent -up demand, the retail/dining/entertainment “void” data reported by Placer.ai illustrates the diversity of potential tenants that would be likely to have a commercial interest in locating a new operation in the City of Cudahy.
Note: the data does not account for potential compatibility between trade area characteristics and retailer demographic preferences, as well as current retailer expansion activity within the regional market.
The following Table 13 is a sampling of users by category including urban arcades/bowling alleys, trampoline parks, urban golf/minigolf, breweries, wine bars, and a diverse array of restaurants from pizza to poke and steakhouses that could be attracted to operate within the City of Cudahy.
Table 12: Cudahy Resident Retail Sales Tax Leakage, 2021-2022 Estimated Sales Tax
Leakage by Use1 Total Resident Visits Average Ticket Size Gross Estimated Sales
Leakage ($M) Local Tax Rate
Total Estimated Local
Sales Tax Leakage ($M)
Hotels & Casinos 54,578 $284.39 $15.52 5.5% $0.85
Grocery 415,216 $44.06 $18.29 3.0% $0.55
Dining 1,381,370 $22.56 $31.16 3.0% $0.94
Total 1,851,164 $351 $64.98 $2.34
1 Reflects selected retail/dining/family entertainment uses proposed for City of Cudahy Entertainment District redevelopment area.
Source: Placer.ai; Willdan, 2023
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Table 13: Retail/Dining/Entertainment Void Analysis by Operator – City of Cudahy (20-Minute Drive Time), 2021-2022
Source: Placer.ai; Willdan, 2022
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Spending Power Analysis
Although the City of Cudahy is limited to a little over one square mile of area, it is in a powerful regional market with substantial spending power. To calculate this spending power, Willdan analyzed data within two geographies:
Southeast LA Submarket (City of Cudahy combined with
contiguous neighboring jurisdictions
20-minute drive time from the center of Cudahy
These geographies are the basis for the Economic Development Strategic Plan’s evaluation of gaps and opportunities generated by growth in households and median household income as the primary driver of retail spending power.
Consumers make decisions based on road networks when deciding where to shop, and drive times provide information on the City’s trade area based on travel speeds and distance on existing roadways.
A 20-minute drive time from the center of Cudahy and neighboring jurisdictions were analyzed to assess market demand for destination retail. Consumers are willing to travel over longer distances for destination businesses and community attractions, and the attraction of new retail/dining/entertainment in the City’s Entertainment District has the potential to draw visitors from a wide surrounding area.
The following Figure 21 illustrates the City of Cudahy’s relative positioning within a 20-minute drive time.
Figure 23: Regional Submarket (20-Minute Drive Time)
Source: ESRI Business Analyst; Willdan, 2023
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Table 14: Southeast LA Submarket Incremental Retail Spending Power Projections (2023 to 2028) Median Household Income Cudahy Bell Bell
Gardens
Huntington
Park Maywood South Gate Total
Submarket (Median)
2023 $51,563 $53,547 $50,872 $52,854 $55,779 $61,658 N/A 2028 $57,604 $60,180 $56,611 $60,623 $63,748 $71,686 N/A Net Change $6,041 $6,633 $5,739 $7,769 $7,969 $10,028 $44,179 X 2028 Households 5,739 9,063 9,741 14,851 6,450 24,289 70,133 New Spending Power ($ Million)1 $34.0 $60.0 $55.0 $115.0 $51.0 $243.0 $558.0 Retail/Dining/Entertainment
Spending ($ Million)2 $2.4 $4.2 $3.9 $8.1 $3.6 $17.0 $39.1 1 Figures are rounded to reflect hypothetical values
2 Per the US Consumer Expenditure Survey 2022, US households spend 7% on food away from home, liquor (bars), and entertainment Source: ESRI Business Analyst; Willdan, 2023
The table above highlights Cudahy’s projected spending power alongside its neighboring communities. The household and household income growth projected in the next five years is expected to increase spending power by $558.0 million over the next five years with Cudahy contributing $34 million to this figure.
Of the total, an estimated $39.1 million will be spent on retail/dining/entertainment options.
Within the 20-minute drive time area, new spending power is projected to increase by $6.77 billion (Table 15), of which $474 million will be spent on retail/dining/entertainment options.
The anticipated growth over the next five years further validates the regional market’s projected incremental retail spending power available to support high quality new retail/dining/entertainment offerings – especially considering family-oriented retail and entertainment gaps in existing supply.
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Table 15: 20-Minute Drive Time Spending Power Projections (2023 to 2028) Net New Spending Power Support for Retail
Dining & Entertainment (2023-2028)
20 Minute Drive Time
from Cudahy City
Center
Median Household Income (2023) $61,175
Median Household Income (2028) $75,059
Net Change in Income $14,520
X 2028 New Households 464,964
New Spending Power ($ Billion)1 $6.4 B
Retail/Dining/Entertainment ($ Million)2 $448.0 M
1 Figures are rounded to reflect hypothetical values
2 Per the US Consumer Expenditure Survey 2022, US households spend 7% on food away from home, liquor (bars), and entertainment
Source: ESRI Business Analyst; Willdan, 2023
Multifamily Market
Supply Characteristics
The City of Cudahy is completing its 6th Cycle Housing Element Update (HEU), which includes a Regional Housing Needs Allocation (RHNA). This analysis measures Cudahy’s share of regional housing needs compared to what has been achieved. Data from the HEU along with CoStar data from Q2 2023 are utilized to highlight indicators for supply and demand characteristics of Cudahy’s multifamily market.
Cudahy is located in the Southeast Los Angeles multifamily submarket (“the submarket”), which covers a wide area of the LA metro from Downtown LA to the Orange County border (Figure 19).
Figure 24: Cudahy Multifamily Submarket
Source: CoStar; Willdan, 2023
Market Support for Cudahy
Entertainment District
Net New Annual Spending Power (2027)
Restaurants Bars Entertainment
Southeast LA Submarket: $39.1 M
20-Minute Drive Time: $448.0 M
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According to CoStar, the submarket contains 59,382 multifamily market-rate units, and there is an abundance of small complexes with fewer than 20 units. Cudahy is primarily a residential community and has 152 multifamily properties spread across the City that contribute 1,738 units to the submarket.
Several characteristics are important to evaluate when testing market demand against existing supply of multifamily rental properties. These include, but are not limited to:
Building quality and
amenities
Building scale and size
Location
Year built
An evaluation of Cudahy and the submarket’s supply related to these variables is provided in the following overview.
Building Quality and Amenities
Building quality encompasses the quality of the building design, materials used, and number and quality of amenities offered at a property. The range of amenities offered on rental products can be quite diverse across a market. CoStar’s proprietary star rating system takes a range of factors into consideration to determine building quality and amenities. The highest ranking is five stars, and the lowest ranking is one star. The submarket consists of 939 four- and five-star units, 9,323 three-star units, and 49,120 one- and two-star units. Eighty-three percent of multifamily units fall within the twostar category, which means they have minimal to no amenities.
Three-star properties have average quality finishes and a few shared amenities, and four- and five-star properties include higher end or luxury amenities in newly constructed buildings.
Taking a micro-market view, multifamily units within the City of Cudahy boundaries are predominantly two-star units (75%), with the balance falling in the one- and three-star category. Table 15 profiles the star rating and number of units in each category.
Table 16: City of Cudahy Multifamily Market Summary
Real Estate Market Indicators Q2 2023
Inventory (Units) - TOTAL 1,738
1 & 2 Star 1,297
3 Star 441
4 & 5 Star 0
Units Under Construction 6
12 Month Net Absorption Units 51
Vacancy Rate 1.5%
Effective Market Rent Per Unit $1,387
12 Month Asking Rent Growth 2.2%
Source: CoStar; Willdan, 2023
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The lack of four- and five-star properties indicates that there is a gap in new and competitive supply of multifamily housing in the City.
Building Scale and Size
Building scale and size is another factor when assessing the nature of the multifamily market in Cudahy. Properties in the City have one to three floors, and the average building is a single story. Properties have an average of 12 units and have a higher proportion of oneand two-bedroom units. Properties with a smaller number of bedrooms may be a challenge to families in Cudahy as household size and overcrowding have increased over the years. According to the HEU, the average household size in the City is five people in comparison to 2.9 people per household in greater Los Angeles County. Household size in Cudahy is driven largely by increased family size, increased cost of living, and lack of available affordable housing.
Unit sizes range widely from 300 square feet to 1,520 square feet with the average unit size being 898 square feet. While overcrowding is a challenge for households, the City did not find the size of units themselves to be issues of concern for residents in its HEU surveys.
Location
Cudahy predominantly consists of dense residential development.
Residential neighborhoods account for approximately 394 acres, or
51.5%, of the total land area of the City. For this reason, multifamily is found throughout the City, as indicated in Figure 21. The exception is primarily along Atlantic Avenue where retail, commercial, entertainment, light industrial, and public uses are currently found. The City’s recent land use updates promote new residential development along these corridors to facilitate mixeduse development.
Figure 25: Cudahy Multifamily Building Location Map
Source: CoStar; Willdan, 2023
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Year Built
The lack of regionally competitive multifamily stock is further illustrated by an analysis of year built.
The age of the existing housing supply indicates an opportunity to renovate units to add or improve amenities and build higherdensity, quality housing in alignment with the City’s goals.
The following , approximately 83% of 998 existing units were constructed prior to 1990. More than half of all units were constructed prior to 1960; only 77 units (8%) were built in the last 10 years.
Figure 26: Cudahy Multifamily Units by Year Built, Q3 2022 Source: CoStar; Willdan, 2023
In assessing housing age, new construction should also be considered. According to CoStar, there are 280 units under construction in the submarket, and 315 units have been delivered in the last 12 months. The number of units under construction equates to 0.5% of the submarket’s existing inventory and is below the LA metro average of 2.4 percent.
However, this figure does not take into account the multiple new developments in the submarket that have been designated for lowincome, affordable, and senior housing as the CoStar data only incorporates market-rate statistics.
In the last 12 months, while there were no construction starts, 48 units have been delivered and six units are currently under construction in the City of Cudahy.
While the City of Cudahy enacted a rent increase moratorium ordinance in January 2023, the City’s Community Development Department is actively engaged in facilitating several multifamily housing development proposals. This intentional developer assistance demonstrates the City’s commitment to protecting at-risk residents while balancing the need to provide exceptional redevelopment services to private developers.
0%
10%
20%
30%
40%
50%
60%
-
100
200
300
400
500
600
1912 to
1945
1961 to
1965
1966 to
1990
1991 to
2015
2016 to
2022
Number of Units
# of Units
% of Total
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Table 17: Cudahy Multifamily Supply
Inventory In Units Q2 2023 5-Year Avg
Existing Units 1,716 1,662
12 Mo. Constr. Starts 0 20
Under Construction 6 41
12 Mo. Deliveries 48 18
Source: CoStar; Willdan, 2023
Housing Needs Assessment Demand
According to the RHNA, the Southern California Association of Governments (SCAG) estimated the eight-year future housing construction needs for Cudahy to be 393 housing units, not including the roll-over of 280 units not constructed from the previous cycles. The number of units is allocated by income level to meet different affordability needs in the city and can be found in Table 18. While the City is not involved in the actual construction of housing units, it is actively involved in creating a regulatory environment to facilitate the development of housing to work towards its housing goals.
29 https://www.cityofcudahy.com/DocumentCenter/View/780/Cudahy-Draft-6thCycle-Housing-Element-Mar-2022 To further assess housing needs, the City collected community input through public hearings and community outreach surveys that were available in both English and Spanish.29 Surveys were used to identify housing issues facing the city and possible options for addressing those issues. Primary concerns included the need for affordable housing throughout the City and the rehabilitation of existing housing. The assessment of housing demand in Cudahy utilizes the results of these surveys along with CoStar Q2 2023 data.
Table 18: City of Cudahy RHNA 6th Cycle Estimated Housing Construction Need, October 2021 – October 2029
Housing Affordability Level
(AMI: Area Median Income)
Number
of
Units
Percentage of
Total Units
Very-Low Income (<50% AMI) 80 20.35%
Low Income (50-80% AMI) 36 9.16%
Moderate Income (80-120% AMI) 53 13.48%
Above Moderate Income (>120% AMI) 224 56.9%
Total Needed Future Housing 393 100%
Source: City of Cudahy 6th Cycle Housing Element Update; Willdan, 2023
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Vacancy
The multifamily vacancy rate is the share of rentable building area (square feet) available or not leased and does not factor in common area space or amenities that are not leasable. According to CoStar, the submarket vacancy rate is 2.7% and is slightly higher than the vacancy rate of 2.3% one year ago. The increase is the result of 310 new units being completed and only 51 units absorbed in the submarket within the last year. Despite this slight increase, the vacancy rate has remained below the submarket’s average since 2000 of 3.3% as well as the Greater LA apartment market average of
4.6%, which indicates modest renter demand in the submarket.
Demand for multifamily is even greater in Cudahy, and the City’s vacancy rate is 1.5 percent (Table 19). This is below the City’s 5-year average of 2%, and CoStar data indicates that only 25 units were vacant at the time the analysis of the market was conducted.
Low vacancies and limited options were key concerns that residents expressed in the City’s survey. In response to the question, “How important is providing more housing for all income levels to you and your household?” approximately 40.4% of respondents using the English survey and 60.6% using the Spanish survey said that this issue is “very important.” Residents also expressed interest in a diversity of housing options including single family, multifamily, condominiums, and duplex/attached housing.
Table 19: Cudahy Multifamily Vacancy and Absorption
Leasing Units Survey 5-Year Avg
Vacant Units 25 34
Vacancy Rates 1.5% 2%
12 Mo. Absorption Units 51 12
Source: CoStar; Willdan, 2023
Rent
According to CoStar, the Southeast Los Angeles submarket average asking rents of $1,660 per month are among the most affordable in the Greater LA apartment market. Despite lower rents in the submarket compared to the metro area, rents are increasing at a sharper pace and creating cost burdens for residents.
Average asking rents have seen gains of 3.1% during the past 12 months, outpacing the gains of 1.1% seen across the LA metro. The submarket witnessed an average annual growth of 3.7% over the past five years, and the LA metro trailed that pace, with average annual gains of 2.7 percent.
The average rent per unit in Cudahy is $1,387, and the average rent per square foot is $1.60. While rental rates are more affordable relative to the larger submarket, the steady increase in rents over the last ten years creates affordability challenges for Cudahy’s
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residents. According to the Housing Element Update, residents expressed a great need for affordable housing in Cudahy as well as a concern regarding high rental prices being charged by landlords.
In the City’s survey, 60.6% of respondents using the English survey and 66.7% of those using the Spanish survey indicated that promoting housing affordable to working families was a “very important” priority to them and their households.
Absorption
Absorption is the rate at which units are leased or exited over a given period. A positive absorption number indicates that more units are leased than the number no longer occupied and is a positive sign of demand in the market.
According to CoStar, during the past 12 months, the submarket saw a net absorption of 51 units. The net absorption in the past decade averaged 140 units, indicating a decrease and some softening of demand in the larger submarket. However, demand has
strengthened in Cudahy, and the City saw an absorption of 51 units in the last 12 months. This is an increase from the five-year average of 12 units absorbed in a 12-month period.
Constraints & Opportunities
The nation – and California in particular—is experiencing the greatest housing inventory crisis in the last 50 years. Housing construction cost inflation pressures, and labor and materials shortages are exacerbating the mismatch between demand (buying power) and the cost to produce a unit.
Local market demand focused around low- to moderate income and workforce housing products at price points that require some form of subsidy.
However, the City’s recent community development policy initiatives like the inclusionary housing ordinance and affordable housing impact fee are being used to leverage affordable housing development opportunities in the City.
The City’s Successor Agency Sites provide a land banking opportunity to attract the type of multifamily development that is envisioned in the General Plan Update 2040 and its associated Housing Element.
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Industrial Market Overview
Cudahy is located in both the Vernon and Commerce industrial submarkets, with the dividing line between the markets running through Atlantic Avenue (Figure 22). Both are large industrial submarkets characterized by aging stock, and there is 133 million square feet of industrial space between the two submarkets. A breakdown of Logistics, Specialized Industrial, and Flex space square footage for both submarkets are provided in Table 20. The City of Cudahy has 43 buildings that contribute 1,013,144 square feet to the submarkets.
Figure 27: Cudahy Industrial Submarkets
Source: CoStar; Willdan, 2023
Table 20: Cudahy Industrial Submarket Square Footage by Asset Type Q2 2023 Vernon Commerce Total SF
Logistics 47,118,742 37,524,140 84,642,882
Specialized Industrial 35,834,326 11,445,437 47,279,763 Flex 553,650 970,344 1,523,994
TOTAL 83,506,718 49,939,921 133,446,639
Source: CoStar; Willdan, 2023
2023: Vacancies, Absorption, Rents, and Sales
Key indicators for Cudahy and the Vernon and Commerce
submarkets can be found in Table 21. The vacancy rate in both submarkets has increased over the last two years due to a sharp contraction in activity at the nearby port, which many tenants in the markets serve. In contrast, Cudahy’s vacancy rate has remained very low and currently sits at zero percent.
Rents average $16.62 in the Vernon submarket and $16.40 in Commerce, which are lower than the Greater LA market average of $19.20. Despite an increase in vacancies, rents in both submarkets have increased over the past 12 months by 7.8% and 9.9% respectively. The five-year average rent for industrial space in Cudahy is $12.26.
Vernon Commerc
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Sales activity has slowed since Q3 2022 as investors cope with higher interest rates, and activity early in 2022 contributed to the large sale volume numbers in the submarkets.
Twelve-month sales volume tallied at $44.7 million in Vernon and $160 million in Commerce. In Cudahy, sales volume was up to $6.4 million from the City’s five-year average of $3.8 million.
Absorption rates reflect the growing vacancy rates, and both submarkets had negative absorption rates of 2.4 million (Vernon) and 1.5 million (Commerce). Cudahy had an absorption rate of zero.
Table 21: Local and Submarket Industrial Real Estate Indicators Supply Characteristics
The industrial submarkets are largely built out, and in most cases, new development requires demolition of existing, older properties.
The supply pipeline is modest in both submarkets with zero proposed square feet in the next eight quarters in Commerce and four industrial buildings under construction in Vernon. Table 22 demonstrates that there has also been no new supply activity in Cudahy with zero projects under construction and none started in the last five years.
Overall, supply has declined over the past five years in the Vernon submarket as some buildings have been demolished and inventory has declined by an average of 94,000 square feet annually over the past five years.
Table 22: Cudahy Industrial Supply
Inventory In Units Q2 2023 5-Year Avg
Existing Buildings 43 43
Existing SF 1,013,144 1,013,144
12 Mo. Constr. Starts 0 0
Under Construction 0 0
12 Mo. Deliveries 0 0
Source: CoStar; Willdan, 2023
Real Estate
Market Indicators Cudahy Vernon Commerce
Vacancy 0% 6.30% 3.80%
Absorption 0 -2,400,000 -1,500,000
Rents $12.26 $16.62 $16.40
Sales Volume (Million) $6.4 $44.7 $160
Source: CoStar; Willdan, 2023
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Demand Drivers
Given the aged inventory, tenant demand in the submarkets is driven by small to midsized users as older properties often lack the building heights, loading docks, and other amenities needed by major distributors.
Urban Farming
In terms of tax revenue opportunities, both dispensaries and light industrial processing/warehousing can contribute to the local economy. Dispensaries are retail establishments that sell cannabis products directly to consumers. They generate tax revenue through sales taxes, excise taxes, and local business taxes. The tax rates and regulations vary depending on the jurisdiction.
Light industrial processing/warehousing refers to facilities involved in activities such as cultivation, processing, and distribution of cannabis products. These operations may include growing and harvesting plants, manufacturing products like edibles or extracts, and storing inventory. Taxes can be collected through licensing fees, permit fees, and taxes based on the volume or value of products.
Despite the growth and source of revenue for local jurisdictions, the cannabis market in California faces challenges. Competition among businesses is intense, and an oversaturated cannabis market in the state has led to steeply declining product prices. Compliance with evolving regulations and rising industry taxes has led to cannabisbased businesses shutting down to diminishing profit margins, and Figure 23 demonstrates the decline in sales that has begun due to these factors.
Figure 28: California Taxable Cannabis Sales
Source:
Source: CA Department of Tax and Fee Administration; Willdan, 2023 $-
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2021 2021 2021 2021 2022 2022 2022 2022 2023
$ Millions
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Constraints & Opportunities
The declining industrial market and significant square footage currently occupied by industrial product presents a meaningful opportunity for revitalization of currently underutilized and aging industrial properties in the Cudahy.
To realize the vision of the Entertainment District, the City should evaluate existing businesses on a property-by-property basis for code and licensing violations as part of a targeted Business Retention and Expansion Program. With zero percent vacancy in its industrial spaces, special consideration should be given to nonconforming business operations to mitigate the threat of displacement and gentrification.
Commercial & Medical Office Market
Supply Characteristics
The Mid-Cities submarket area which includes the City of Cudahy boundaries has among the lowest percentage of four and five-star inventory in the LA Metro market area.
Data illustrating location of existing office market centers in LA CBD and environs
Demand Drivers
According to ULI-the Urban Land Institute, office demand is typically informed by office employment growth projections. Given that Cudahy does not include a concentration of office properties, future office development will require a build-to-suit strategy. Due to the current under-performance of the Cudahy office submarket, inflation, the impact of Covid on hybrid office policies, and the continually rising costs of construction, office is not considered the highest and best use of property on Atlantic Avenue.
Constraints & Opportunities
With the Covid impact on office occupancy rates, demand for highly amenitized spaces, inflation, and borrowing rates, speculative office development is not considered to be financially feasible.
However, there is an opportunity to explore build-to-suit medical office “wellness hub development with Keyser Permanente Center through a regional play.
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Part III: Real Estate Market Analysis III – 29
Hotel/Hospitality Market Overview
Supply Characteristics
Cudahy is part of the Los Angeles Southeast submarket within which there are 156 hotels and 8,516 rooms (Figure 24). Cudahy currently has no hotel rooms reported in this inventory.
Figure 29: Cudahy Hospitality Submarket
Source: CoStar; Willdan, 2023
Within the submarket, the average property has 55 rooms and economic lodging dominates the market. More than two-thirds of the rooms are limited service or midscale product.
Demand Drivers
While business and visitor hotel stays are stabilizing from Covid in the larger market, Atlantic Avenue’s existing conditions are not competitive for new hotel product in the near term.
The occupancy forecast for the submarket is projected to increase from approximately 67% in 2022 to 70% by 2023. According to CoStar, as of April 2023, the 12-month average RevPAR in the submarket was climbing at an exceptionally strong 9.2% annual rate, which is similar to the market-wide trend.
New development in the submarket continues, and there is one hotel project with 71 rooms underway. Over the past three years, three projects with 320 rooms came online.
Constraints & Opportunities
The City of Cudahy is not yet a destination with amenities and attractions. The City should focus on laying the foundation to catalyze high quality, transformational redevelopment activity that would attract new hotel construction investment in the future.
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Conclusion
Table 23 below provides a summary of the opportunities and constraints by product type for the City.
Table 23: Summary Table Constrains and Opportunities by Product Type Sector Opportunities Constraints
Retail
Substantial retail leakage and projected spending power growth indicate opportunity for variety of
retail/dining/entertainment users
Zoning code revisions and creation of Entertainment District will support more competitive employment center
Existing conditions, lot size, and fragmented uses along main commercial corridor
Multifamily
Substantial demand for a variety of housing options
Aging housing stock with minimal amenities create
opportunities for upgrades and new competitive supply
Lank banking with City Successor Agency Sites for
redevelopment opportunities
Lot sizes
Housing construction costs, labor and material shortages, and inflation
Subsidies required for low- to moderate income housing products are limited and highly competitive
Industrial Underutilized and aging properties create opportunity for reimagined retail/dining/entertainment uses
Existing industrial spaces are fully occupied, and existing businesses must be evaluated on property-by-property basis Urban Farming users generate meaningful General Fund
revenue for City
Commercial
and Medical
Office
Proximity to Kaiser Permanente and regional wellness hub opportunities long-term
Build-to-suit opportunity for specific, identified medical office Office is not highest and best use on Atlantic Avenue due to under-performance of office submarket caused by COVID,
costs for highly amenitized spaces, and inflation
Hotel/Hospitality
Entertainment District will catalyze high-quality
redevelopment to attract future hotel construction
Market occupancy growth is climbing, indicating COVID recovery
City not currently a destination with attractions, amenities, or existing hotel product
Source: City of Cudahy; CoStar; Lee & Associates; Willdan, 2023
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Community Engagement
To inform the Economic Development Plan recommendations, the consulting team conducted community and business outreach through a variety of mechanisms from June 2022 to July 2023.
The outreach included:
Stakeholder interview tracking tool
In-person data collection interviews with City of Cudahy staff in the Office of the City Manager, Community Development, and City Finance Department
Video interviews with members of the City’s leadership who opted to participate
Electronic community engagement survey in English and Spanish via Sli.do
Economic Development SWOT Work Session (approximately 25 community participants in attendance)
City Planning Commission presentation and feedback on the draft Economic Development recommendations
Preliminary City Council presentation of findings and recommendations
The results of this broad approach to community engagement are summarized in the following overview of interview and survey results.
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Part III: Real Estate Market Analysis III – 32
Spanish Version Survey: English Version Survey:
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Economic Development Strategic Plan 2023
Part III: Real Estate Market Analysis III – 33
Community Visioning 2022/23: SWOT Workshop Results
Q2: Where is your favorite place to go in Cudahy?
Chris’s Burgers
Chute Fitness
El Superior Grocery Store
Gym
Lee’s BBQ
Mar y Sol Restaurant
None
Small Plaza on Clara St. and
Atlantic Ave.
Wendy’s
“I don’t have one.”
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Community Visioning 2022/23: SWOT Workshop Results
Q3: How would you describe Cudahy as a community?
“A miracle I can live and work so close”
“Hard working-class community”
“A typical densely populated community”
“A community divided, but lots of potential”
“Small-town feel and a close-knit community”
“An oasis in the LA metro”
“Home”
“A plethora of community-based organizations,
but each with their own mission”
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Community Visioning 2022/23: SWOT Workshop Results
Q4: What landmarks do you associate with Cudahy’s brand as a City or a place?
Atlantic Avenue Corridor
Choze Shopping Center
Chris’s Burgers
Clara Park and Extension: “Nostalgic!”
Elizabeth Learning Center
El Superior Grocers
Lugo Park
“None!”
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Community Visioning 2022/23: SWOT Workshop Results
Q5: In Your Opinion, What is Missing in Cudahy?
Family Entertainment
Restaurants
Shopping
Public Art
Gathering Spaces
“Bowling Alley with Pizza”
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Community Visioning 2022/23: SWOT Workshop Results
Q6: When you leave Cudahy to shop, dine or enjoy
family entertainment, specifically where do you go and
why?
Bell
Cerritos
Chuck-E-Cheese: “it’s good for the kids”
Downey: ”Lots of diverse restaurants and
entertainment”
Downtown Los Angeles
Lakewood
Little Tokyo: “Different food options,
Open Spaces”
Long Beach
Lynwood
Southgate:” Nails and
Sam’s Club”
Tijuana
Orange County
Pico Rivera
“I only go to
El Superior for
groceries.
I go outside of
Cudahy for
anything else”
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Part III: Real Estate Market Analysis III – 38
Community Visioning 2022/23: SWOT Workshop Results
Q7: Do you identify Cudahy
with the City’s logo of the
Bear?
Yes: 28%
No: 72%
Q8: Do you think the City
tagline Open Minds, Open
Doors” defines the City’s
brand for marketing
redevelopment
opportunities?
Yes: 45%
No: 55%
City of Cudahy I California
Economic Development Strategic Plan 2023
Part IV: Consulting Support Contact Information IV—1
Part IV: Real Estate & Economic Development
Consulting Support Contact Information
Willdan Financial & Economic
Consulting Services
1939 Harrison St Suite 430, Oakland, CA 94612
Phone: (202) 510-0511
Project Manager:
Molly McKay, Managing Principal
Community Engagement & Economic Development
Strategic Plan Lead
[email protected]
Principal-in-Charge:
James Edison, Managing Principal
Municipal Finance Advisor
[email protected]
Research Analysts:
Carlos Villarreal, Principal
Demographic & GIS Lead
[email protected]
Chelsea Gaylord, Project Director
Economic Profile Report & Real Estate
Market Analysis Lead
Nick Zatrine, Analyst
GIS Analyst
[email protected]