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1 ECONOMIC ANALYSIS AND LAND USE
STUDY FOR THREE OPPORTUNITY AREAS
Market Study Findings and Existing Conditions Analysis
Study Session | March 25, 2025
Agenda and Purpose
Provide an update on the OSA project Share findings from the Market Study Summary of Developer and Stakeholder Feedback Present land use opportunity and constraints analysis Gather input from decision makers
Review timeline and next steps 2
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2 Opportunity Study Areas Overview
3 opportunity study areas (OSA) Combined area of 210 Acres, making up 15% of the City’s land.
OSA 1: 56.33 acres
OSA 2: 93.46 acres
OSA 3: 60.31 acres
(City ~1,407 acres) 3 Purpose of the OSA Study To assess future land use opportunities that will allow the City to grow economically, create jobs, and diversify the City’s tax base. Identify an area to create a central place for the community. Explore the potential for additional residential land use within the OSAs (beyond housing element sites). Create incentives in the absence of redevelopment. 4 3 4
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3 Purpose of the Economic Analysis
To identify the potential market demand to
support redevelopment and the creation of
the central business district. This is the first step in the OSA Study; next steps include: Create a generalized plan for the OSAs Finalize the boundaries that will be included
Establish a zoning mechanism that will incentivize
development and lead to the realization of the
vision for a central business district Economic analysis focuses on identifying near-term opportunities and longer-term
potential. 5 Developer and Stakeholder Summary
6 Citywide Comments and Ideas
Excellent location- proximity to freeway and
airport City is a great opportunity for in-fill housing Residential developers see great market
potential in Signal Hill despite oil production
City is seen as business friendly and small
city will be/is attractive to families and
businesses
Population growth will help
commercial/retail growth
City is seen as being focused on the
community and creating viable uses
OSA Comments and Ideas
Housing in the OSAs could be concentrated
at intersections near Willow
Remediation and other clean-up can be
costly and take time, properties will be more
desirable for development if already
complete
The areas would benefit from bike and
pedestrian connections that also take
advantage of Willow Springs park
Consider targeting the following uses:
Hotel, Aerospace, Healthcare
Manufacturing, Research + Development,
Restaurants and Unique Community
Supporting Retail
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4 Economic Analysis
Central Place
A business district with vibrant
economic activity A gathering place with a robust and inviting public realm
Physical design that not only facilitates
but actually encourages walking and
meeting neighbors
Even though it is a business district, it
should be experience-oriented: it
should be a place to do things not just
buy things 7 Economic Analysis
Residential Retail and Commerce
Hotels
Offices
Industrial 8
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5 Market Study—Residential Why?
Retail follows rooftops
Feet on the street Paying for redevelopment Sales taxpayers Pent-up demand in Southern California
but challenge to find available land
Developers interviewed positive on the
prospects and feasibility For-sale townhomes near term; rentals and multifamily possible with lower
interest rates 9 Residential Ideas - Townhomes
10 River Street
Marketplace, San
Juan Capistrano
(Furniture + Restaurants)
Co-Working and
Incubator Space
El Segundo
Attached
10-24 Units per Acre
2-3 Stories 1-2–Car Garage Condominiums Includes Live-Work Housing Type 9 10
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6 Residential Ideas - Multifamily
11 Co-Working and
Incubator Space
El Segundo
24+ Units per Acre
3-7 Stories Building can include Ground Floor Retail/Other Uses Range of Parking Options – (Surface, Tuck-Under, Above/Below Ground Structure) Either Condominiums or Rental Common Open Space Market Study—Retail Driven by consumer spending
Retail leakage is the lowhanging fruit Creating a place to attract visitor spending from farther
away 12
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7 Market Study —Retail
13 —
Convenience Goods Trade Area (5-Minute Drive Time) —
Comparison Goods Trade Area
(10-Minute Drive-Time) —
15-Minute Drive Time Context Area Town Center —
City of Signal Hill
Market Study —Retail
14 Potential for Central Place (retail building space in sq. ft.) Specialty food stores 2,500
Health and personal care stores 16,000
Limited-service restaurants 16,000
Furniture stores 100,000
Home furnishings stores 40,000
Clothing stores 70,000
Shoe stores 12,000
Jewelry/luggage/ leather goods stores 20,000
Book stores and news dealers 2,000
Drinking places (alcohol) 12,000
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8 Market Study —Retail
15 Potential for Other OSA Sites (building space in sq. ft.) Beer, wine, and liquor stores 8,000
Health and personal care stores 16,000
Gasoline stations 5,000
Automotive parts, access. and tires 20,000
Build. material and supplies dealers 40,000
Lawn/garden equip. & supplies stores 30,000
Sport. goods/hobby/mus. instruments 40,000
Retail and Adaptive Reuse Ideas
16 River Street
Marketplace
San Juan
Capistrano
(Furniture + Restaurants)
The Camp, Lab, and
Nearby Breweries
SoCo Collection
Costa Mesa
Co-Working &
Incubator
Space
El Segundo
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9 Market Study—Hotels
Long recovery from pandemic
High interest rates
Long-term occupancy rate
above 70 percent
17 0
10 20
30 40
50 60
70 80
90 2017 2018 2019 2020 2021 2022 2023 2024
Hotel Ideas
18 River Street
Marketplace, San
Juan Capistrano
(Furniture + Restaurants)
Co
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10 Market Study—Office and Industrial Economic and employment growth drives demand for
other non-residential uses
Regional office vacancies are
very high
Regional industrial vacancies
are very low
Very low office and industrial
vacancies in the OSAs 19
0% 5% 10% 15% 20% 25% 30% 35% 40%
Local-Serving Sectors
Education and Health Sectors
Knowledge-Based Sectors
Base Services Sectors
Goods-Producing Sectors
Signal Hill Subregion County
Market Study—Office and Industrial Strong potential economic growth in retail and commercial services Strong potential growth in office, especially professional services and management But, a lot of vacant office space
Decline in manufacturing and warehousing, but growth in construction
20 Land Area
(acres)
Average
FAR
Gross
Floor Area,
(sq. ft.)
Average
Bldg. Sq.
Ft. per
Employee
Change in
Jobs Land Use
Commercial Services 715 350 250,338 0.25 23.0
Office 1,926 300 577,800 0.35 37.9
Industrial -216 700 -151,200 0.5 -6.9
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11 Economic Analysis—Conclusions
There is market demand to support a
central place and redevelopment
throughout the OSAs, especially retail
goods and services and housing
Additional considerations for the next
phases: Inform the overlays- how much of each
type of development, when, where, and
phasing
Opportunity at Spring and Atlantic
Economic incentives
Attracting desired businesses that may
have less market demand
21 ECONOMIC ANALYSIS
DISCUSSION AND QUESTIONS
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12 Land Use Analysis: Existing
Conditions
Existing Land Use
Zoning
General Plan & Housing Element Sites
Fault Zone 23 Existing Land Use
24 Primarily Industrial land use and
character. Commercial uses concentrated
along Atlantic Avenue, and along
Willow St near Costco Shopping
Center.
34%
7%
48%
7%
3%
1%
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13 Existing Zoning
25 Current zoning for the areas
reinforce existing uses. Several areas are designated with specific plans that are tailored to
housing, auto sales, industrial
uses and targeted commercial
and services uses.
Housing Element Sites & General Plan Land Use
26 3 Housing Element Sites are
located within OSA 2. Housing Element Sites are sites identified by the City as having
potential to provide housing to
help meet the City’s Regional
Housing Needs Allocation
requirements.
Site 1: Orange Bluff – 290 Potential
Dwelling Units
Site 2 Walnut Bluff – 90 Potential
Dwelling Units
Site 3 Town Center NW – 267
Potential Dwelling Units
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14 Fault and Liquefaction Zone
27 Physical consideration for
development standards. Newport-Inglewood-Rose
Canyon Fault Zone. City has a Local Hazard
Mitigation Plan and standards in
place for safe development.
Land Use Analysis: Development
Opportunity
Ownership
Improvement to Land Ratio
Vacant Parcels
Lot Size
Lot Coverage
Access
Presence of Oil Wells
Housing Element Sites
Results (near-term) 28
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15 Development Opportunity Analysis
29 • Eight criteria were used to determine
the development opportunity score for
each parcel within the study area. • If the parcel met the criteria, the parcel received points. • The development opportunity score is the sum of all development opportunity
criteria points the parcel received. • The maximum development opportunity score is 10. A parcel with a
score of 10 means it met all of the
development opportunity criteria and
has high development opportunity.
Development Opportunity Criteria Points
Is a contiguous parcel with the same owner or City owned 1 property
Ratio of assessed value of improvements to assessed value of 1 land is less than 1
Vacant Parcels 1
Parcel Size is greater than 1 acre 1
Building to lot coverage is less than 40% 1
2 1
Parcel is accessed or visible by Principal Arterial street Parcel is accessed or visible by Minor Arterial or Collector Street
2 1
0 0 Oil Wells on site
1-2 Oil Wells on site
3+ Oil Wells on site
Housing Element Sites and adjacent sites 1
Max Development Opportunity Score 10
(Sum of Development Opportunity Criteria Points )
Contiguous Ownership
30 • Contiguous parcels with the
same owner have a higher
chance of lot consolidation,
increasing development capacity
and the likelihood for
redevelopment. • OSA 1 includes a concentration
of City owned parcels at Spring
and California. • All study areas feature
contiguous parcels with same
owner.
NOTE: Contiguous parcels with same owner
may be adjacent with contiguous owned
parcels from a different owner.
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16 Improvement to Land Value
31 • Parcels where value of land
improvements is lower than the
value of the land should be
considered for redevelopment. • OSA 1 includes a concentration of parcels north of 29th Street.
Most of these parcels are owned
by the City and are occupied by
oil wells or vacant. • Highlighted parcels in OSA 2 and OSA 3 are primarily vacant lots.
Vacant and Underutilized Properties
32 • Vacant and underutilized
properties may include vacant
lots and lots with oil wells. • OSA 1 includes the highest concentration of vacant and
underutilized properties. • OSA 2 includes vacant parcels along Orange Avenue, and other
select parcels. • OSA 3 includes a small
concentration of vacant parcels
at Cherry Avenue and 27th Street.
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17 Large Lot Size
33 • Large parcels are desirable
yielding a higher development
capacity and reduce the need for
lot consolidation. • OSA 1 includes lots larger than 1
acre north of Spring Street, at
Spring and Atlantic, and south of
Patterson Street. • OSA 2 includes large lots along
Orange Avenue and Willow
Street. • OSA 3 includes a high
concentration of large lots east of
Juniper Avenue.
Lot Coverage
34 • Industrial uses typically require
large surface lots for truck
parking and maneuvering. • Due to the industrial nature of the area and presence of oil wells,
most parcels within OSA 1 and
OSA 2 have low lot coverages. • OSA 3 features larger parcels and larger warehouse structures that
occupy more lot area.
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18 Access
35 • Parcels with access to arterial
roads are more desirable for
redevelopment. • Principal arterials include Spring
St., Willow St., Orange Ave., and
Cherry Ave. • Minor Arterial and Collector
roads include 28th St., 27th St.,
California Ave, Walnut Ave.,
Junipero Ave., and Temple Ave. • OSA 2 includes large parcels that front onto multiple principal
arterial roadways and therefore
includes the most land area that
is accessible.
Presence of Oil Wells
36 • Presence of oil wells pose a
barrier to potential development. • The northeast corner of OSA 1 includes many small parcels that
have a high concertation of oil
wells. • Fewer oil wells are present
moving east towards OSA 3.
NOTE: map accounts for active and idle
wells.
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19 Housing Element Sites and Adjacent Parcels
37 • Housing Element Sites are sites
identified by the City as having
potential to provide housing to
help meet the City’s Regional
Housing Needs Allocation
requirements. • Adjacent parcels are included to
consider potential
redevelopment synergy adjacent
to new residential development • Site 1: Orange Bluff – 290 Potential Dwelling Units
• Site 2 Walnut Bluff – 90 Potential
Dwelling Units
• Site 3 Town Center NW – 267 Potential
Dwelling Units
Draft Opportunity Score
38 Development Opportunity Criteria Points
Is a contiguous parcel with the same 1 owner or City owned property Ratio of assessed value of improvements 1
to assessed value of land is less than 1 Vacant Parcels 1 Parcel Size is greater than 1 acre 1 Building to lot coverage is less than 40% 1 2 1 Parcel is accessed or visible by Principal Arterial street Parcel is accessed or visible by Minor Arterial or Collector Street 2 1 0
0 Oil Wells on site 1-2 Oil Wells on site 3+ Oil Wells on site Housing Element Sites and adjacent sites 1 Max Development Opportunity Score 10 (Sum of Development Opportunity Criteria
Points )
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20 Draft Development Opportunity Score
39 Areas with high development
potential include:
OSA 1
• City owned properties / underdeveloped oil well sites between Spring Street and 29th Street • Several parcels along Willow Street OSA 2
• Properties along Orange Avenue and
Willow Street
OSA 3
• Intersection of Cherry and 27th Street • Along Willow Street between Signal Parkway and Temple Avenue
LAND USE ANALYSIS
DISCUSSION AND QUESTIONS
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21 Recommended Actions
1. Receive a presentation from PlaceWorks summarizing the key findings of the Economic Study for the Opportunity Study Areas project.
2. Provide general direction to staff to advance the development of Overlay Zones, including updates to development standards within the Opportunity Study Areas.
3. Provide direction to staff regarding the solicitation of development proposals for a City-owned property located at the intersection of Spring Street and Atlantic Avenue.
4. Provide direction to staff regarding initiating a feasibility study to explore the potential implementation of financing tools to fund infrastructure improvements with the Opportunity Study Areas.
5. Authorize staff to issue a Request for Proposals for environmental studies related to the Opportunity Study Areas. 41
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