1 TO: City Council
FROM: Ryan Smoot, City Manager
REVIEWED BY: Brianna Rindge, AICP, Community & Economic Development Director
PREPARED BY: Laura MacMorran, Associate Planner
MEETING DATE: April 4, 2023
SUBJECT: Discussion and Consideration of Zoning Text Amendment No. 2023-02, an Ordinance Amending Lomita Municipal Code Title XI (Planning and Zoning) to Modify Off-Street Parking Restrictions and Permit Additional Types of Parking Lot Signs, to Add Definitions
RECOMMENDATION
After the City Attorney reads the title of the ordinance, accept the recommendation of the Planning Commission and introduce on first reading an ordinance amending Lomita’s Municipal Code Sections 11-1.15(D) and 11-1.15(S) (Definitions), Section 11-1.66.05 to modify off-street parking regulations and Article 67 to modify sign regulations, find the project is categorically exempt from the California Environmental Quality Act, and direct staff to schedule the second reading and adoption of the ordinance.
BACKGROUND
Lomita’s Municipal Code does not currently permit the exclusive use of parking spaces in a multiple tenant commercial development (in this context means mixed commercial uses, i.e. restaurant, retail, personal service, office etc.). The expected Target store is a part of multiple tenant commercial development (2130 – 2154 PCH) and requires designated parking spaces to provide vehicle-based merchandise pick-up services. The property owner, BRFI Lomita II, LLC, applied for a zone text amendment to allow designated parking spaces for a single-tenant’s use. With the applicant’s permission, staff is proposing allowing short-term commercial parking spaces.
Item No. PH 9b
CITY OF LOMITA
CITY COUNCIL REPORT
2 SUMMARY OF THE PROPOSED ZONE TEXT AMENDMENT
The amendment proposes two new types of commercial parking spaces: designated spaces, and short-term spaces. Depending on the property’s size, up to five percent or seven and half percent of the available parking spaces may be designated to a specific tenant’s customer use. The short-term parking spaces are time-limited shared parking spaces. Up to five percent of the available parking spaces can be allocated to short-term parking. This allocation is in addition to designated parking spaces.
Three corresponding parking sign types are proposed to identify the parking spaces, and pick-up area. The signs are regulated by typical size and illumination standards. Also included in the zone text amendment are definitions for the parking space types and sign types.
ANALYSIS
These amendments are consistent with the General Plan’s Economic Development Element and the Land Use Element. Specifically, they promote the improvement and revitalization of existing shopping centers, as well as promote an orderly pattern of development in the City.
The Code’s explicit prohibition on designating commercial parking spaces is not typical of other jurisdictions. It constrains brick-and-mortar retailers who provide online shopping with in-person pickup services, and it prevents Lomita residents from having this service available in their community.
By allowing a small percentage of a parking lot’s available parking spaces to be designated to a particular business and/or for short-term parking, the land is being more optimally used; customers will benefit from the advances in technology; businesses can improve sales and become competitive with surrounding cities; and it can help property owners attract new tenants.
The Planning Commission Staff Report provides further analysis of the parking space types and corresponding new signs.
OPTIONS:
1. Approve the first reading of the ordinance as recommended by the Planning Commission.
2. Approve the first reading of the ordinance with amendments.
3. Do not approve the first reading of the ordinance.
4. Provide staff alternative direction.
FISCAL IMPACT
None.
3 ATTACHMENTS
1. Draft Ordinance
2. Planning Commission Resolution 2023-26
3. Planning Commission Staff Report with PC Attachment 2
4. Applicant’s Submittal
5. Notice of Exemption
Reviewed by: Approved by:
___________________ _______________________
Gary Y. Sugano Ryan Smoot
Assistant City Manager City Manager
Reviewed by: Prepared by:
_________________________ _____________________
Brianna Rindge, AICP Laura MacMorran
Community & Economic Development Director Associate Planner ORDINANCE NO. 847
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LOMITA, CALIFORNIA, APPROVING ZONE TEXT AMENDMENT No. 2023-02
AND AMENDING LOMITA MUNICIPAL CODE TITLE XI (PLANNING AND ZONING) ARTICLE 15 (DEFINITIONS), ARTICLE 66 (OFF-STREET PARKING, STORAGE AND LOADING), AND ARTICLE 67 (SIGNS) AND
FINDING THE ACTION TO BE CATEGORICALLY EXEMPT FROM THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT. INITIATED BY BRFI LOMITA II, LLC, 11611 SAN VINCENTE BOULEVARD, SUITE 900, LOS ANGELES, CA 90049 (APPLICANT)
Section 1. Recitals
A. On March 13, 2023, the Planning Commission held a duly noticed public hearing on Zone Text Amendment No. 2023-02 where public testimony was accepted on the item and recommended City Council approval.
B. On April 4, 2023, the City Council considered this application to amend Lomita’s Municipal Code Sections 11-1.15(D) and 11-1.15(S) (Definitions), Section 11-1.66.05 to modify off-street parking regulations and to amend Article 67 to modify sign regulations, held a duly noticed public hearing and accepted testimony in regard to the same.
The Recitals above are true and correct and are hereby adopted as findings as if fully set forth herein.
Section 2. General Plan
The City Council finds that the ordinance is consistent with the General Plan because it implements the Economic Development Element’s Policy 3 “to promote the improvement and revitalization of existing shopping centers”. The City’s parking and sign standards were adopted when consumer shopping patterns were restricted to instore purchases. The proposed parking and sign standards respond to technological and retail changes. For shopping centers to be revitalized, regulations cannot prevent them from adapting to meet today’s consumer demands.
In addition, the ordinance is consistent with the Land Use Element’s first goal “to promote an orderly pattern of development in the City.” The proposed zone text amendment modifies regulations regarding the permitting and placement of signs in a parking lot. The proposed sign standards provide identification and information for customers ordering online and picking up merchandise in person, and customers whose visits last for a short duration. The adoption of this zone text amendment categorizes signs based upon the function that they will serve and fosters and aids in the harmonious, orderly, and progressive development of the City consistent with the General Plan Land Use Element’s goals and policies.
Attachment No. 1
Ordinance No. 847
The City Council also finds the proposed changes will preserve, protect, provide for, and foster the health, safety, and welfare of the citizenry in general and the persons who work, visit, or live in this development in particular.
Section 3. Environmental Review
The City Council finds that the ordinance is exempt from the California Environmental Quality Act (CEQA) Guidelines, California Code of Regulations, Title 14, Chapter 3, pursuant to Section15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) because zoning amendment has no potential for resulting in physical change to the environment, directly or indirectly. Alternatively, the adoption of this Ordinance is exempt from CEQA because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. (State CEQA Guidelines, § 15061(b)(3).) THE CITY COUNCIL OF THE CITY OF LOMITA HEREBY ORDAINS AS FOLLOWS:
Section 4. Zoning Amendments
Based on the foregoing, the City Council hereby approves of the following amendments to the Lomita Municipal Code:
A. Section 11-1.15 (“Definitions”) of Article 15 (“General Provisions”) of Title XI of the Lomita Municipal Code is hereby amended to add the following definitions alphabetically as follows:
Section 11-1.15 (D)
“Designated parking space shall mean a parking space designated, assigned, or reserved for the exclusive use of one particular business’ customers.”
Section 11-1.15(S)
“Shared parking space shall mean a private parking area used jointly by two or more uses.
Short-term parking space shall mean a customer parking space which shall not be occupied by the same vehicle for no more than thirty (30) minutes at a time.”
Ordinance No. 847
B. Section 11-1.66.02 (“Definitions”) of Article 66 (“Off-Street Parking, Storage and Loading”) of Title XI of the Lomita Municipal Code is hereby amended to read as follows:
“Section 11-1.66.02. - Definitions.
For the purpose of this article, unless otherwise apparent from the context, the following words and phrases used in this article are defined in Article 15, Definitions of the Zoning Ordinance: designated parking space, driveway, floor area, garage, gross floor area, landscaping, loading area, off-street parking, parking area, parking lot, parking aisle, parking space, shared parking space, short-term parking space, turnaround area and turning radius.”
C. Subsection (D) of Section 11-1.66.05 ("General provisions”) of Article 66 (“OffStreet Parking, Storage and Loading”) of Title XI of the Lomita Municipal Code is hereby amended to read as follows:
“(D) Parking spaces within a mixed use complex commercial development shall not be designated for the exclusive use of any individual tenant, except as follows:
(1) Any commercial development with parking spaces in excess of the required parking may designate excess parking spaces for the exclusive use of a tenant(s).
(2) A commercial development that does not have parking spaces in excess of the required parking and is located on a parcel with over fifty thousand (50,000) square feet of property area may designate up to seven-and-a-half (7.5) percent of the total number of approved parking spaces for the exclusive use of a tenant(s).
(3) A commercial development that does not have parking spaces in excess of the required parking and is located on a parcel with no more than fifty thousand (50,000) square feet of property area may designate up to of the five (5) percent of the total number of approved parking spaces for the exclusive use of a tenant(s).”
D. Subsection (E) of Section 11-1.66.05 ("General provisions”) of Article 66 (“OffStreet Parking, Storage and Loading”) of Title XI of the Lomita Municipal Code is hereby amended to read as follows:
“(E) Neither patrons nor employees of an occupant of a building may be restricted from the use of any parking space (except handicapped) in a parking lot.
However, employees should be encouraged to park in the least utilized portion of the parking lot. Commercial developments may designate up to five (5) percent of the available parking spaces for short-term parking but no more Ordinance No. 847
than 8 spaces. Short-term parking shall not exceed thirty (30) minutes. The property owner may limit the timeframe that the parking spaces are available only for short-term parking.”
E. Section 11-1.67.02 (“Definitions”) of Article 67 (“Signs”) of Title XI of the Lomita Municipal Code is amended to add the following:
“(2.4) Beacon sign shall mean a type of directional sign providing information or directions for motorists to onsite parking or loading.” “(8.5) Designated space sign shall mean a sign identifying a specific parking space for a particular business use.”
“(26.5) Short-term parking sign shall mean a sign identifying a short-term parking space.”
F. Subsection (4)(c)(vi) of Section 11-1.67.04 (“Sign regulations for specific zones”) of Article 67 (“Signs”) of Title XI of the Lomita Municipal Code is hereby amended in its entirety to read as follows:
“(vi) Parking lot signs.
a. Entrance and exit signs, not to exceed five (5) square feet in area per face. b. Designated parking space signs, one (1) permitted per designated space.
1. Sign maximum size: six (6) square feet, of which up to four (4) square feet is allowed for branding or logos per face, with a maximum height of six (6) feet above the parking lot surface.
2. If present, exposed concrete bases shall be covered with decorative stone, stucco, brick, tile, or a natural veneer that matches the building’s facade.
c. Beacon parking signs may be installed to facilitate traffic circulation associated with designated parking, provided such signs comply with the following requirements:
1. No more than two (2) signs shall be permitted per property.
2. Sign maximum size: two (2) feet by two (2) feet in plan, with a maximum height of twelve (12) feet above the parking lot surface.
3. Up to three (3) square feet per face is permitted for branding or logos.
Ordinance No. 847
4. If present, exposed concrete bases shall be covered with decorative stone, brick, tile, stucco, or a natural veneer that matches the building’s facade.
5. May be illuminated provided the luminance is stationary and no more than 0.3 foot-candles above ambient light conditions, or the level recommended by the Illuminating Engineering Society of North America (IESNA) for the specific size and location of the sign, whichever is less.
d. Short-term parking space signs may be installed to facilitate parking space turnover. The sign shall have:
1. A maximum size of eighteen (18) inches by eighteen (18) inches, with no more than a one (1) inch thickness.
2. The maximum time within which a particular vehicle may occupy a particular parking space and, if applicable, any designated timeframe. e. All types of parking lot signs shall be installed outside of each parking space’s required minimum dimensions.”
Section 5.
If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this ordinance or any part hereof is for any reason held to be invalid, such invalidity shall not affect the validity of the remaining portions of this ordinance or any part thereof. The City Council of the City of Lomita hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof, irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases be declared invalid.
Ordinance No. 847
Section 6. Effective Date
This ordinance shall take effect thirty (30) days after the date of its passage; and prior to fifteen (15) days after its passage, the City Clerk shall cause a copy of this ordinance to be published in accordance with the provisions of the law. The City Clerk shall certify the adoption of this ordinance.
PASSED, APPROVED, AND ADOPTED this day of , 2023.
____________________________
Barry Waite, Mayor
ATTEST:
____________________________
Kathleen Horn Gregory, MMC, City Clerk
APPROVED AS TO FORM:
____________________________
Trevor Rusin, City Attorney
Attachment 2
1 TO: Planning Commission
FROM: Laura MacMorran, Associate Planner
MEETING DATE: March 13, 2023
SUBJECT: Discussion and Consideration of Zoning Text Amendment No. 2023-02, an Ordinance Amending Lomita Municipal Code Title XI (Planning and Zoning) to Modify Off-Street Parking Restrictions and Permit Additional Types of Parking Lot Signs, to Add Definitions and Finding the Action to be Exempt from the California Environmental Quality Act
RECOMMENDATION
Recommend approval of Zoning Text Amendment 2023-02 to the City Council, subject to the findings and conditions and finding the request exempt from the California Environment Quality Act (CEQA).
BACKGROUND
BRFI Lomita II, LLC, associated with Balboa Retail Partners, applied to modify the prohibition on designated parking spaces at a multi-tenant commercial property (Sec. 11-.66.05(D)) and to add new parking sign types to identify the designated spaces.
The applicant owns 2130 Pacific Coast Highway (proposed Target) and 2142-2154 Pacific Coast Highway and proposes the zoning text amendment to allow designated parking and to establish new sign types and standards for corresponding signage. Target proposes 12 drive-up spaces identified by individual parking space signs and two beacon signs identifying the pickup area.
Based on experience and research, staff proposes permitting short-term parking spaces in a multi-tenant commercial center. The applicant agreed to include this additional type of space with the other proposed amendments.
Staff discussed the proposed text amendment with both the City Council’s Economic Development Subcommittee and the Lomita Chamber of Commerce. There is input incorporated into this zone text amendment.
Item No. PH 5b
CITY OF LOMITA
PLANNING COMMISSION REPORT
Attachment 3
2 ANALYSIS
The proposed ordinance to amend Lomita Municipal Code (“LMC”) is in response to the societal changes in technology, consumer shopping, and the retail industry, especially in a post-pandemic society.
1) DESIGNATED PARKING
See Section 4, Parts A and B of the draft ordinance (Exhibit A) Historically, multi-tenant commercial properties have shared all provided parking spaces, meaning any business’ customers may park in any of the available parking spaces. To punctuate this parking arrangement, Lomita’s Code explicitly prohibits designating a parking space for an individual tenant’s exclusive use in a mixed-use commercial center.
In comparison to other jurisdictions, this parking restriction is an outlier. Staff spoke with planners in the City of Carson, the City of Torrance, and Skokie, Illinois, and researched several other South Bay municipalities’ codes. Almost none of the jurisdictions prohibit designated parking and have retailers which have successfully implemented designated parking spaces for a tenant’s exclusive use.
As technological changes have made it possible to purchase goods remotely, it is no longer necessary to physically enter a store to obtain the merchandise. To compete with online retailers, brick-and-motor retailers have augmented their sales with online shopping and provided a local pickup option through retailer-specific mobile applications.
This saves shipping costs for consumers and benefits the brick-and-mortar retailers, property owners, and commercial districts.
To facilitate a drive-up transaction, the customer parks in a numbered space and reports it on a mobile application. An employee walks the ordered goods to the customer’s vehicle. The designated spaces are not a loss of a required parking space, but instead a component of the retailer’s parking supply that is capturing what before online shopping would have been instore purchases.
Drive-up service benefits all people, but especially families with young children, the elderly, people with physical challenges, anyone who may be sick or fears getting sick, those in a hurry, and people who don’t have a secure place for package delivery when they are not home.
The drive-up option appears to be a permanent feature of brick-and-motor stores, projected demand is uncertain. Target requests 12 spaces out of 206 which calculates to
5.8% of the parking spaces. Staff conservatively recommends that commercial centers with 50,000 ft2 of property area be allowed to designate up to 7.5% of the total number of approved parking spaces for the exclusive use of a tenant. For slightly smaller commercial developments, staff recommends that up to 5% of the parking spaces may be eligible for designation.
3 2) SHORT-TERM PARKING
See Section 4, Part C of the draft ordinance (Exhibit A) As with online retailing, technology and the pandemic have impacted consumer behavior of ordering online through Uber Eats, Grubhub, Doordash, and similar mobile orders. In response, staff recommends allowing property owners to designate parking as short-term only and self-enforce. Short-term parking is intended for vehicle stays lasting only for a few minutes. Typically, a short-term parking space has greater turnover and can accommodate more instances of vehicle parking, thus generating more revenue for the business. It also provides a space instead the drive aisle for medical lab pickup vans and armored bank trucks which are subject to time restraints.
The provisions of the draft ordinance would allow customers and delivery services to more conveniently find parking, and the designated spaces are typically located near the retail building’s doors. Ease or difficulty in picking up online or over the phone orders, especially at a food establishment, are considerations in a customer’s selection process.
One way to support our local businesses is to prescribe parking requirements that respond to societal changes and are not overly restrictive.
The proposed amendment would allow up to 5% of the provided parking spaces to be marked for short-term parking. Any business with 30 or more parking spaces may park in a short-term parking space. Shared short-term parking spaces increase the pool of potential users and thus better optimizes the parking space(s).
As a parallel, the City of Lomita’s Public Works Department already considers short-term street parking requests, and may approve such for the reasons stated. As opposed to administrative review or lengthy discretionary review, the amendment allows the landlord to decide the best way to establish these spaces, as well as make allows the landlord to make changes as needed. Implementation will be enforced by code enforcement. 3) PARKING LOT SIGNS
See Section 4, Parts D and E of the draft ordinance (Exhibit A) and Sign Examples (Attachment C)
The draft ordinance provides for three new parking lot signs related to proposed designated and short-term parking. The signage is typical of signs allowed by other jurisdictions or already used in Lomita.
CEQA
The proposed code amendment has been assessed in accordance with Section 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) of the California Environmental Quality Act (CEQA) Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
Alternatively, the adoption of this Ordinance is exempt from CEQA because it can be seen 4 with certainty that there is no possibility that the activity in question may have a significant effect on the environment. (State CEQA Guidelines, § 15061(b)(3).)
PUBLIC NOTICE
Notices of this hearing dated March 2, 2023, were published in the Daily Breeze Newspaper, and posted at City Hall and Lomita Park.
OPTIONS
1. Recommend approval to the City Council as recommended by staff.
2. Recommend approval to the City Council with amendments.
3. Provide staff with further direction.
ATTACHMENTS
1. Resolution with Exhibit 1 Draft Ordinance
2. Sign Examples
3. Letter from the Applicant
4. Notice of Exemption
Prepared by: Reviewed by:
Laura MacMorran Brianna Rindge, AICP
Associate Planner Community & Economic Development
Director
ATTACHMENT 2 PROPOSED SIGNS
Example of
a Designated Parking Space Sign
Example of a Beacon Sign
Example of a Short-Term Parking Space Sign
BRFI LOMITA, LLC
BRFI LOMITA II, LLC
C/o Balboa Retail Advisors, LLC; 11611 San Vicente Boulevard, Suite 900; Los Angeles, CA 90049 (310) 496‐4135 (Telephone); (310) 496‐4131 (Facsimile); www.balboaretail.com
VIA ELECTRONIC MAIL
March 7, 2023
City of Lomita
City Hall Offices
24300 Narbonne Avenue
Lomita, CA 90717
City Council Planning Commission
Barry M. Waite – Mayor Steve Cammarata
William D. Uphoff – Mayor Pro‐Tem Monica Dever
James Gazeley Michael Graf
Cindy Segawa Joaquin Santos
Mark. A Woronek Bob Steinbach
Brenda Stephens
Henry Sanchez Jr.
Re: 2130 Pacific Coast Highway
Zoning Text Amendment requesting twelve (12) dedicated drive‐up parking spaces for Target Corporation
Dear City Council Members and Planning Commissioners:
We would like to thank you in advance for your time and consideration of our proposed zoning text amendment requesting twelve (12) dedicated drive‐up parking stalls for curbside services for Target Corporation at 2130 Pacific Coast Highway.
The pandemic significantly accelerated consumer adoption of online shopping. The pandemic also highlighted the role of the physical stores fulfilling those online orders. The use of dedicated drive‐up stalls for curbside delivery services became a staple during the pandemic. A majority of retailers from grocery and general merchandise down to quick serve restaurants enhanced and/or incorporated this service to better fulfill online orders while observing health and safety protocols. Consumers continue to utilize this fulfillment option today, value the convenience, and expect it to be an alternative going forward. It has also proved to be a viable fulfillment alternative for the retailer.
Curbside service is one channel of an omnichannelretailstrategy that a majority of retailers are embracing today. This strategy provides more channels or ways for customer purchases, whether it is on mobile, web, or in stores, and more channels or ways to fulfill those purchases, whether it is in store, curbside, or delivery. Retailers have been deploying significant resources to enhance this strategy to provide a seamless shopping experience whether in store or online.
Attachment 4
2130 Pacific Coast Highway
March 7, 2023
Target began its curbside service on a pilot basis, branded “Drive‐Up”, in 2017. The service was expanded in 2018, before beginning widespread rollout in Spring 2019. In 2022, Target started adding its in‐store Starbucks cafes for drive‐up ordering and currently have 250 locations providing that service.
Target now is enabling customers to make drive‐up product returns at its stores. The company plans to offer the service at all its nearly 2,000 U.S. stores by the end of summer 2023. Curbside service is a key component to Target’s omnichannel business plan going forward.
When the shopping center at 2130 Pacific Coast Highway was originally entitled in the late 1970s, no one could have imagined the evolution of retail forty years later, the impacts of digital (both web and mobile), logistics and acute events such as a pandemic. As retail continues to evolve and change, the centers retailers occupy also need to be nimble to adapt to the changing needs of the retailers and their customers. That ability to adapt and change will provide the best foundation to attract and maintain retailers and ensure its customers are benefitting from the full breadth of services offered by the retailer.
Curbside service with dedicated drive‐up parking spaces is one important example of the continuing evolution of retail and the changing needs of retailers and its customers at their physical locations.
Attached to this letter are two surveys prepared by The International Council of Shopping Centers and Big Red Rooster, a JLL Company, respectively. Both discuss the continued evolution of retail, the use of its physical real estate and customers’ experiences and expectations of retailers. Although both surveys are notspecific to curbside services with dedicated drive‐up parking spaces, both touch upon thatspecific use in the broader context of the retail landscape.
If you have any questions prior to our scheduled planning commission and city council meetings, please feel free to contact me at (310) 496‐4140 or via electronic mail at [email protected] or Megan Smith at (310) 496‐4130 or via electronic mail at [email protected]. Thank you again in advance for your consideration of this zoning text amendment.
Sincerely,
BRFI Lomita, LLC
BRFI Lomita II, LLC
Adam L. Miller
Vice President
CC: Laura MacMorran – Associate Planner, City of Lomita Brianna Rindge – Community and Economic Development Director, City of Lomita Megan Smith – Balboa Retail Advisors, LLC
The Impact of COVID-19 on the Evolving Use of Retail Real Estate 2 Introduction
American retailers and commercial real estate (CRE) companies express strong condence that shoppers will visit stores in greater numbers in 2021 – a sign of resilience in an industry beset by the COVID-19 pandemic. After a year in which nearly every aspect of the store and shopping center experience has been modied to adhere to social distancing and other health precautions, retail executives and shopping center operators assert that the crisis is driving a wave of innovation that positions the industry to absorb future shocks.
To handle the sudden surge in click-and-collect shopping as cities locked down in 2020, parking lots became hubs for curbside pickup. As the economy reopened, stores recongured their layouts to keep shoppers and employees safe. While the industry looks ahead to the future, retailers and CRE rms say they’ll make targeted investments in digital marketing and online storefronts to keep up with the convergence of online and physical retail.
Results from this survey of retail and CRE leaders illustrate how the adoption of technology, shifts in merchandising and operational strategies, and safety precautions put in place during the pandemic will evolve in 2021 and beyond. Our research arms that an aggressive omnichannel approach anchored by a store network helped retailers manage through the pandemic. It also arms that in order to remain relevant and keep customers coming back to stores and centers, retailers and center operators alike need to continue to innovate and give consumers a taste of the future.
Objective, Methodology and Respondent Prole
From October 29 to November 10, 2020, an ICSC survey conducted by OnResearch, a market and consumer insights rm, polled U.S. real estate industry leaders — comprising 277 executives retailer companies and 107 representatives from commercial real estate (CRE) companies. The survey examined the actions brick-andmortar locations were taking in response to the COVID-19 pandemic; assessed how retailers and CRE companies had adopted or changed technology, merchandising, and logistics in response to COVID-19; and explored how these businesses planned to operate in the post-pandemic period.
The online survey employed a quota sample to ensure a minimum number of respondents across various sizes and regions. Survey respondents comprised senior director-level roles and above among retail respondents, and property manager-level roles and above in the CRE sector.
Survey participants included independent retailers with annual revenue under $45 million (small retailers), retailers with revenue from $45 million to $3 billion (mid-sized retailers), and large chains with revenue over $3 billion (large retailers). Among CRE companies, participants included rms with gross leasable area (GLA) under 6 million square feet (small CRE) and CRE companies with GLA over 6 million square feet (large CRE).
The Impact of COVID-19 on the Evolving Use of Retail Real Estate 4 Store layouts allowing for social distancing will continue to predominate inside stores, though retailers of dierent sizes indicate they’ll take dierent approaches to creating space between shoppers. Independent retailers were more than three times as likely as larger chains to say they plan to continue using one-way movement in stores (47% vs. 13%). By contrast, two-thirds of the largest retailers intend to stick with redesigned oorplans, compared to only 37% of smaller independent retailers. Take a trip to the national grocery chain or pharmacy in your area and you will likely see this already in play.
The safety precautions put in place to allow for safer trips to shopping centers have required new expenditures and created a host of new operational challenges. Among CRE respondents, for instance, 72% saw increases in their operational costs due to the implementation of new cleaning procedures, new signage and other protective measures. The same share of CRE rms said COVID-19 had compelled them to eliminate touchpoints, while half of these companies made changes so shoppers could drop in and complete their purchases quickly.
Many of these changes are in response to consumers becoming more purposeful with each trip in an eort to reduce dwell time and potential exposure to the virus. However, many may be here to stay. Over the course of the pandemic, ICSC has conducted a regular survey of 1,000 consumers gauging their sentiment on topics such as the economy, spending, and shopping and dining habits. Consistently, an overwhelming number (most recently 70%) indicated they would like to see the current safety protocols extended beyond the pandemic.
Historically, cleaning equipment and crews remained behind the scenes, with clean up taking place when customers were gone for the day; but, today, many retailers and centers are putting cleaning eorts front and center to demonstrate that safety is a priority.
Continuing Safety Precautions Over the Next 12 Months
CRE Plexiglass shields
at checkout
82%
Constantly sanitizing
high-trac areas
77%
Truncated
hours
74%
Retail
66%
Temperature
screening
60%
Complimentary
hand sanitizer
59%
Complimentary
masks
The Impact of COVID-19 on the Evolving Use of Retail Real Estate 5 Section 2: Business Metrics — Resilience and Optimism
U.S. unemployment in 2020 hit a high of 14.7%, the highest rate in the history of the data. Visitors to retail real estate properties dipped from a high point in February — at the start of the crisis — to April when lockdowns were in full swing. Mandatory closures of nonessential businesses, as well as general safety concerns, kept many shoppers at home during the early days of the pandemic, and in certain areas of the country, throughout the year.
Survey respondents conrmed the drop, with many of the retailers reporting greater decreases than increases in daily visitors and in-store sales because of the crisis. Among CRE respondents, the picture is mixed: A larger share said sales per square foot were up compared to those that reported declines. While 42% of CRE operators saw increases in visitors, 43% said that shopping center visits were down because of COVID-19. These results are not surprising when factoring in the role of essential retailers, such as grocers and pharmacies, in the pandemic as well as basket-size increases due to less frequent consumer visits.
Even with the drop in visits, there remains optimism for the future. Shopping center operators anticipate that properties will deliver better results across several business metrics over the next 12 months. This forecast includes 77% of CRE rms that expect higher sales per square foot, compared to just 5% of CREs that anticipate sales gures to fall. Eight in ten CREs predict an increase in the number of shoppers per day, and three out of four CRE respondents predict longer dwell times by shoppers.
Expectations of Sales Metrics to Increase
Retail
in-store sales
CRE sales
per square foot
within 6 months
63%
82%
24+ months
63%
89%
62%
within 6-12 months
77%
within 12-24 months
60%
74%
The Impact of COVID-19 on the Evolving Use of Retail Real Estate 6 Additionally, 60% of respondents said they anticipate foot trac to return to pre-COVID levels at their shopping centers within 12 months of containment of the virus. About a quarter of respondents believe shoppers will return to pre-COVID levels even sooner — within six months. The positive outlook for the year ahead isn’t limited to landlords. According to our recent 2021 Consumer Outlook Survey, more than half of consumers (54%) expect to resume pre-pandemic behaviors once it is safe to do so.
Retailers were equally optimistic about shoppers returning to their stores in the next 12 months. Across all sizes in the segment, 55% of respondents expected their in-store trac to return within 12 months. In a less optimistic outlook than CRE rms, only 15% of retailers believe that the volume of shoppers will return to pre-COVID levels within six months. Bottom line, most of our survey respondents believe people are eager to get out of their houses; however, retailers are less optimistic than their CRE counterparts.
The Consumer Outlook Survey also found that 43% of respondents said that within a year they would resume visits to malls at the same pace as pre-COVID levels, and 42% said they would visit brick-and-mortar retailers on a regular basis again.
It is clear that even with fewer store visits in the future, retailers are counting on the trend of larger basket sizes to continue. Half of retailers anticipate that in-store revenue will account for more or signicantly more of their total sales revenue in the coming year. Smaller independent retailers were less optimistic about the short-term future, however. Sixty-ve percent of consumers indicated that, in 2021, they will try to make more purchases from small/local businesses, which could result in strong sales.
The Impact of COVID-19 on the Evolving Use of Retail Real Estate 8 fulllment operations. For retailers this often meant pulling inventory from a store to fulll click-and-collect orders from the 34% of consumers taking advantage of the option each month. The impact on CREs was dedicating space for consumers to pick up their purchases while observing health and safety protocols.
Our study found that two in three retailers (66%) across all sizes expanded the number of stores oering in-store fulllment of online purchases in response to COVID-19. The smallest retailers made the biggest adjustments — 73% added click-and-collect options at stores — as rising demand for e-commerce hit Main Street and provided a lifeline to struggling businesses. In looking ahead, a third of retailers recognize that a primary draw to physical locations will continue to be the ability of consumers to make online purchases they can then pick up at the store.
Executing the logistical challenges of getting orders out of warehouses or stores and into the hands and personal vehicles of shoppers has spurred other changes as well. Pickup locations stretched beyond the store and into the parking lot where curbside pickup became a staple. In fact, three in four CRE rms reported using their parking lots to accommodate online order fulllment and 56% said they are currently using at least half of their parking space for curbside pickup of online orders. The dedication of this space is unlikely to change in the future as consumers have not only come to expect this convenience, but 41% plan to continue using it post-pandemic.
As previously noted, nearly half (47%) of retailers have made technology and digital infrastructure investment their top priority since the onset of the pandemic. With those investments now underway, retailers of all sizes are looking to shift their focus to future marketing eorts.
More than half (56%) of retailers expect to prioritize digital over in-store investments as part of their marketing outlays in the year ahead. Among large retailers, 78% say their marketing campaigns will focus on their eorts to enhance the digital customer experience, as well as growing online sales, brand positioning and ensuring customers are aware of the health and safety protocols that have been implemented. While CRE rms are less focused on the online sales channel, their focus will also include health and safety measures as well as ways to help drive foot trac to pre-pandemic levels.
Online Order Fulfillment Will
Be Essential to Ensuring
Physical Stores Remain
Financially Viable Post-COVID
77%
CRE
71%
Retail
The Impact of COVID-19 on the Evolving Use of Retail Real Estate 9 Conclusion
As the cases of COVID-19 have risen and fallen across the country so too has the percentage of people who are comfortable following their typical daily routines. In our October 2020 consumer survey, 46% of respondents said they were engaging in a “normal” level of outside-of-home activity. That percentage is sure to rise as the virus subsides and consumers feel safe spending more time away from home. The extraordinary challenges that retailers and CRE companies have faced throughout the pandemic have placed tremendous strain on the teams that keep stores, shopping centers, and e-commerce operations running. We are wholeheartedly appreciative of the commitments to customer and employee safety as the emergency around the pandemic evolves.
The public should feel assured, whether they choose small, independent retailers or do their shopping at larger centers, that the eorts to keep people safe are being implemented in accordance with the most accurate public health guidance — from displaying signage promoting good safety practices and creating one-way movement through stores to designing oorplans to allow for social distancing The pandemic has accelerated the adoption of industry trends such as click-and-collect shopping, that were already underway before the crisis. Now, there’s even greater integration between digital and physical channels and more investment in infrastructure and operations that oer greater exibility and convenience to the customer. Our survey demonstrates that stores will continue to account for growth and remain essential to the shopping experience; however, that experience will likely look and feel quite dierent.
The long-term strength of the CRE industry is critical to communities across the country. Retailers have demonstrated throughout this crisis that they are capable of meeting demand, both online and in person. We are excited to see how the industry will continue to change and innovate during these challenging times.
ICSC is the preeminent membership organization serving retail and real estate professionals. Our members believe ICSC’s unparalleled programs and services are the most ecient and eective way to develop relationships, facilitate transactions, share insights and shape public policy and perception.
ICSC.com | #ICSC © 2021 ICSC
!"
#$ %%&
#'()
*#
&
'
'%
'
&
+
)
%
*
%#
,-,-./
0(1
&'
)
!
0 "$
'
&
(
"$
+
&
/()
/%)#(++
&
(&2#"34
%
& %#/2
% !
0(12+%
)%2
#
&%#&
#(1
/
*
)
/
(/+%(*
$52()06
#'()
#
2#
%2&
!/
%&% 1
(1 %%&
%
(#)2%/
#52()0
"
&)%'
(
"37 (#$(!
+
#
#(+!(
(#&6+
#"&
('
#"
++$
(!
&%+(%% )2#*(&
+()062+$
&%! (8(%'
('
!%6%#"#
2#
&
('
# %%& #%/
0"3
7+
#(%&% )%(2%2$2+#
)
&
&)
1
*#%21!((2+
#
&
%++%#2((
%(%'
$
& %%&
#'()
*#
&
'
++
&2+!(
%
#
)%#
'
(
&%
'%
'
39
#
6 2
(
/
& #()(%
)%'
(
)
'
#
(
&
:+
#(
)
*
#$
&(;(/
%##
(
#%
(
2+3
<=>?@=A?B=>?CDEFG@?HIJK
<LBAM@N>=A>>OPB=MQ>>O
<L@E?@=>BPLBAR>AD>AL>
SCDMDAT?I>GC=PB==>?CDE
UV
WX
!
"
#!
$!%
&'()*+,$+%-./!
--0
!01!02/+
!2!-
!
+"+
+-#!$
03
!
0 3!
-
-!0
0%
!01!
%!0
-
#0-
45-#!$
03
!
0 367!
%"-
+
!-
0
-!33
0
!30
1!3%0
+8$0
!"+
+,"++2-9
0##0
!3:,++
8!0
:7!0.
:-#+
%""++2-:
+/!2;$+
:+
+/!
/#
+1!/!%
0/+%"
+
!
-<
-#!
$!%
0"!
-2
1!%.#:
%30
"!
#0
:7=!%>0%2?
33!%%
03-4@()+,
8+/-0
!
2!-
!
+1
-
-#!$
03
!
0 3!
-0-7!!%.#-+,0
%ABAA<
C%2$+%-./!
-0
!#.
%"
!
/+%!
8!
!
!
/+.
-0
!<C$$+
2 %"
+-
+
!
0,,
$0%03-
-,
+/D30$!
<0
:/+%
31
-
-
+0##0
!3-
+
!-0$
+--
!EF
%$
!0-!2
03/+-
GH)4-+/!'I/
33 +%/+
!1
-
-4
7!
8!!%J!$!/7!
ABAB0%2J!$!/7!
ABAG:!K$!!2
%"!1!%#
! #0%2!/
$3!1!3-
-!!%
%
!-0/!#!
+2
%ABGH<
LMNOPQRMOPSMNOTUMVMWXMOYZYZ[UMVMWXMOYZY\
]Q^OVM_`aNVMObcQ
d
"e!2e++-
!
!-!0
$$+%2.$
!20
!
-0/!
/!
%ABAG$+%,
/!203+%"-
0%2
%"
.
9
%-
0%
"
0 ,
$0
+%
-+%!+,
!
+#
!0-+%-$+%-./!
-$++-!
+"+
+7
$f
0%2 /+
0 -
+
!-<d.
0-7.+%3
%!g#
$f
.#
% -
+
!&dhDiF*:$.
7-
2!#
$f .#:0%2
+8%!2+
2 #0
2!3
1!
01!
$+%
%.!2
+
%$
!0-!
%#+#.30
:
-
#!
$!%
0"!0-#3.//!
!2<j0
027!!%
k@)+,$+%-./!
-
-%+8l.-
I')8+-0
"!
%"
!
#
+2.$
-
//!2
0 !3
-0f!
2 1!
+
!7
$f 0%2 /+
0 -
+
!<
]QWMmnNop]oOQqraSsrOMMtTqu\TZZv
w
f!3:
-20
0
-
%2
$0
1!+,
!,+
$!2
!03
x0
+%
0
$+%-./!
-$0%"!
/+-
+,
!
%!!2-/!
%!0
%-
0%
3+%3
%!&0%2
y-
%+3+%"!
l.-
C/0x+%$0#073!+,-0/! 20
2!3
1!
<*i,
-
!%2$+%
%.!-
-2!$3
%!
0%2
%-
0%
"
0 ,
$0
+%
-%+3+%"!
0
2 ,,!
!%
0 +
2
1 %"$+%-./!
-
+7
$f 0%2
/+
0 :
!
0 3!
-0
!3!,
+$+/#!
!+%
!
2 /!%-
+%-+,!K#!
!%$!0%2-!
1 $!03+%!<
d.
:-
%$!+1!
03,+,$+%-./!
-0
!1
-
%"
7 $f 0%2 /+
0 -
+
!-,+
%-
0%
"
0 ,
$0
+%
+20:
0
#2
1!
--
33
!K
!/!3
/#+
0%
z0%2
!%!!2,+
!
0 3!
-
+
%1!-
%/!!
%"
0
2!-
!
!K#!2
+.-30%2$+%1!%
!%
3
-$
$03<
F#!!20-0380-7!!%0033/0
f+,{.
$f
-!
1!g,0-
,++2!K#!
!%$!-:0%2
!0
!
!+%!--!
%"%!87!%$/0
f-,+
80
y-
#+--
73!
%
!#-
$03-#0$!<i
-!
!
0
!
0 3!
--+.32-!
!
-
"
-<
!"
#
$%
&
'
!
()!
"
*
+$$#"
'&
#!"
', $
!
"
$
-
'
"
$&
$'$!#".
#/"*$'
0
*
1 %
2 $"!1
'"3 '&
0"#$'#
'
+!-+
--1
/.
"
.'
1 !1(4"
5+$$#
%'#"-
6 7*
65+
-58*&
!..
#
*
$
2*
3".$""
%-
'$""$
*
'%'
65#51$'
'
9. '
"/#
"*$2"
$"!1
'"3
"
"+
$2
*"
$'
"(:-,;<=",
*
,
'
9 '
1 -,"
"+
#2
**$2+"
*
,2
'
%-
$+
#
1"$
*
'-"
".
-
,'
-
'
./#$-,;>='
9 '
1 -,"
"+
#2
*
*
".
#$+
*
'-"
*
6$!
(?+
/-1$"
*-+$+ $"!1
'"$&
'
-,"
*
,2
"*'
-
2""+"
"+"
+$$#(
@ABCDEDFGHIBJKLJDMNOPQROSST
@ABCDEDFGHIBJKLJDMNOOUVWXVAOPQROSST
'*."%
0+"
$1
"2
*
*
''
$',/
%!
*
9.
$'$!#".
#
"$
9 -!"
&
$+"
+$$#(:" -
+'$1<
$Y/
2*
'
<
"Z?2
$%
#$!
"+"
"
.$""
%-
[#Y
"Z?1$6,
$2
\"
,
2*
-
[/ $"!1
'"*&
"
1 -'
9.
$"
'$!#
'
"
$'"$+'
-(]*
,2
'
.-
"*1
0$'
""! *"#'!0"
$'
"/
0'$
',"
$'
"/#%
!
,"
$'
"
$$++
'
^!
6
5#5$!
"*$..
0
9. '
(]*
,
'
$6,
$" '
+
".
##
6
*
'
1
$
*
'-
"!'
0$'
""! *"*$1
#_ $'/..'
-/#+$$
2 '(
`DIPHWDDMaIBJPbOPQROSST
7*
65+
-58
"+"
5+$$#0$-#"
#'#
*
2,$+".
#(;c=",
*
%'#
9 #
#
*
'
9.
$"'$!#".
#$
*
'-"
'
.d1$'
*,$
*
'%'#
"
##
*
*
0*
"
.$""
%-
1
"!'
e]$.)$9f(:-,
g;=$+h'$0
'"*$..
'"#g;=$+i
.*$'
"*$..
'"/
2$
0$'
"
2*
* $"!1
'"
9.
*
!
1$"
".
#/"
#
*
"1
(
jklmnopqrstpusvukqwmpkxllyz{y|yuuk{yz}~~qwzlpxmoy zp{ysmozzpxywrokzlmmozko|owmmoy
zwx
qwuulpmltwqysmkstwqykzyzpxllmyqwzlk{ymozko m|pqywltwlmwlwmzwpmpkxwuzp{ysmozlywryz
k
!"#!$%&
'($
&
)
"!
'!&#!*
+
#
,($-'
.$(.,+$/+)0
1%--'+$+$!--'
$(&
2#!*
+
#
3-'
.
!%4 5*
$#+
6.
($()!,
'
(
#!*
+
-$-!
&+)'-5*
!
+#4!$
7!8+&+-.
+-'"4
8+
4 '!%$09!*
+
#
#%4-%
-! (.+$!
!"
($.,$
(&4
$$
87 +
#
$-'(-
:%+
#!$%&
$-!
(
4.
4+"-("+)
;%4
$$-'
.
(--!0
<=>?@A?B=?C=?D=E>FC?GH?IJHKKL
M+/
-'
+
87 #-(-+!$(!% $7
,#
-(+
74 +$'&
-#(-
)!+
$$%#'($ %)(
(%-.(
87 #-
-!!""
-'
%-&!$-+
#!*
+
#
(
($
0N($#(4
!"O-!P,
'
O+$2Q
($+#(44.
(--'+$
87 +
#
-!
#!&
-!&
3( P+$2Q(&!/(.)!+)!%-!"
&.
(."!+-3,-'
$
$
#-!$$+-
(
$-!%
"($-R"!!
#'&(/0M
+$%
$'!77+)
#(-
)!+
$;'!&
S#!,(77(
4,(
"!!-
(,"!
8(&74
;(
!-'
!77!$+-
!"-'+$#!*
+
#
$7
#-%&0
'%)
#!&7!
-!"#!*
+
#
-! (.,
.! -'
($
!"$'!77+)+R$-!
,+$-'
!7-+!"!$
(&4
$$!
"%4"+44&
-0
T'!%)'-'
+$!77!-%+-.-!+&7!*
-'
$
+"!! $
*+#
-!!,$(-+$"(#-+!+$$4+)'-4.
'+)'
+-'-'
7+#/R%7(
4+*
.!""!! 0
UVFW=X=YZ[>FC\]C=^_H?IJHKKL
UVFW=X=YZ[>FC\]C=^_H?IJHKKL
`'
($/
(
!%--'
+4($--+7-!
-(+4,
!4.'(4""
4+-
4+*
!-'
+
87 #-(-+!$(!% #!*
+
#
0N-'
!-'
'( ,
(4.a!%-!"bO$(.-'
$(&
(
!%-"($-"!! 0c
-(+4
$
-!
&+ "%4
!"-'+$dOR7!+- +""
#
+(-+)$(
+*
$-+
(.$-!#4!$
-'
)(70
$
$+)
8-R)
7+#/R%7(
4+*
.
87 +
#
$"!
-(+4,
$-R+R#4($$"($-R"!!
87 +
#
$#($
*
%7+$7+(-+!0Q
($
4+/
7
R7!7%4(-
"+--+)!!&$
($
!
#!$%&
$5!4+
#(-$!$
#%
,deR'!%
7+#/R%74!#/
$#!%4
-'
($
"!$!&
0
(--'
!"-'
(.,+( +-+!-!
!7-+&+f+)7+#/R%7(
4+*
.,
-(+4
$
$'!%4 #!$+
%7 (-
$-!-'
++R$-!
(."+ +)( #!&&%+#(-+!$
+-'
$!4%-+!$$%#'($&!
+4
#!-
-
$+)
"!
+R$-!
!
$+)( $
4 #-+!0.-'+)-'(-
&(/
$$'!77+)
($.( $
(&4
$$0
!
"#$%&
%'%()%*)
*
'
**%!
%*+
',",
*'# *(%%'#
! )
)%##$
-%
'+$
#&
.
*
*
"
'
)%*#/.
0&
)
%*#1*' 2# .
(%
#&
)
"
#%
3 *%
4% #3(/$
(
*5,
$ *'
#
'
# *
0&
*)
'
# 5*1
#-
)%*)
!
%(-$
2#*
0(%#&
)
"
+ *,%$
0&
*)
'
# 5*
*'(%.
#
5 #+-
#$%/
')%*# '
'
#$
$
!
,
*)$
.& %*
'
*'&%&/
6
',"789#1
:%*#/.
#
#&
)
"%&
*% '
#$
!
&
*&% *#
%/*'$
,%-# *5+
&/)$
# *5+
*'& )3;/&&$
#
#%($
<%/*
"1
=
#&
$
)/
*#&
'
*')%*!
*
*)
5 &,
-
*
*'(
#(%%'+$
#%.
#%/$
)
*5
*! %*.
*#
$
.
$
#
0&
)
%*#1>$
#+%(
)%/#
+
.
3 *5$
#
5 ))$% )
%
)%.&
%*#
! )
*'?%
0&
*)
1
@ABACDEFGHAAIAJKLMDNOPDQLJRSLTTU
!"
#$ %&$"
"'! %(%
!"&)%*+#"%
#!'*,"'-./0.-0%!
'"!
1 ",
%2+)334356787790"$ %!!"
:+% ;%1&!<=
=>=.?!&#@
),"'3688A
;
#+*'$+(()#
*#
!
%"+"@
B9C9+&("!+
!3D+% (
#9
EFGHIJHKLGMNOPGHHQL
RSTUROLVOQMI
QFGHHQLWKGMLQXLYYZOQL[\YF ]]][KGMLQXLYYZOQL[\YF
NOTICE OF EXEMPTION
Project Title: Zone Text Amendment No. 2023-02
Project Description: A request to amend Title XI Chapter 1 Sections 11-1.15(D) and 11-
1.15(S) (Definitions), Section 11-1.66.05 to modify off-street parking regulations and Article 67 to modify sign regulations, which would allow for designated commercial parking spaces and short-term commercial parking spaces and related signage. Filed by BRFI LOMITA II, LLC, 11611 San Vincente Boulevard, Suite 900, Los Angeles, CA 90049 (Applicant) Finding:
The City Council of the City of Lomita has reviewed the above proposed project and found it to be exempt from the provisions of the California Environmental Quality Act (CEQA).
Ministerial Project
Categorical Exemption
Statutory Exemption
Emergency Project
Quick Disapproval [CEQA Guidelines, Section 15270]
No Possibility of Significant Effect [CEQA Guidelines, Section 15061(b)(3)] Supporting Reasons: The zoning text amendment would allow only minor physical changes in the form of new small identification and informational signs. In accordance with Section 15061(b)(3) the adoption of this Ordinance is exempt from CEQA because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. (Date) Laura MacMorran
Associate Planner
Community Development Department
Planning Division
24300 Narbonne Avenue
Lomita, CA 90717
310/325-7110
FAX 310/325-4024
Attachment 5