10A
Date: March 24, 2026
To: Honorable Mayor and Members of the City Council
From: Aram Chaparyan, City Manager
By: Fran Fulton, Economic Development Manager | [email protected] Subject: City Manager – Accept and File the Economic Development Update and Discuss and Provide Direction on Proposed Economic Development Initiatives.
Expenditure: None.
RECOMMENDATION
Recommendation of the City Manager that City Council:
1. Accept and file the Economic Development update; and
2. Discuss and provide direction on proposed Economic Development initiatives.
FUNDING
None required.
DISCUSSION
Overview
This report and accompanying presentation provide an update on economic indicators and program activity since the last report to City Council on September 23, 2025. The update highlights key initiatives led by the Office of Economic Development and the interdepartmental Economic Development Team focused on business development, retention, assistance, and attraction.
Major program areas include the Business Attraction Incentive to Torrance (BAIT) Program, the Commercial Rehabilitation Rebate Program, Downtown revitalization efforts and the proposed Business Improvement District (BID), retail and automotive sales activity, hospitality and tourism, special events and filming, and international relations.
Torrance continues to maintain a strong balance of industrial, commercial, and residential uses that contribute to the community’s high quality of life. Ongoing citywide initiatives, including signage and wayfinding improvements, streetscape enhancements, and downtown revitalization efforts—continue to strengthen Torrance’s identity and enhance the City’s appeal for both residents and visitors. These improvements also support the City’s ability to market Torrance as a desirable destination for tourism, retail activity, and business investment. 1 City Council
March 24, 2026
Key Industry Clusters in Torrance include Aerospace and Defense, Advanced Manufacturing, Automotive and Mobility, Healthcare/Medical Services and Biotech/Life Sciences, Retail, as well as Logistics and Distribution.
Business license numbers have remained steady over the past five years with the following being the numbers of licensed businesses based in Torrance:
Calendar Year Torrance Based
Businesses
Total Business
Licenses
Change in Total
Business Licenses
2025 9,627 14,052 65
2024 9,743 13,987 548
2023 9,478 13,439 -200
2022 9,693 13,639 -88
2021 9,847 13,727 5
Staff continue to identify and market available commercial and industrial space within the City and develop promotional material that has been used at industry conferences and speaker panel opportunities. Recent activity indicates a resurgence in aerospace and defense companies seeking locations in Torrance due to the City’s strong manufacturing ecosystem, skilled workforce, and proximity to aerospace supply chains. Many of these companies require large warehouse facilities combined with office space to accommodate research, development, headquarters operations, and production. Several examples of new companies to Torrance show that they have outgrown space in neighboring cities and are choosing to come to Torrance and then grow due to the responsive nature of the City.
At a recent business visit it was noted by the founding partners that the main reason they chose to come to Torrance and grow here is the long history of aerospace and defense companies in the region and the related access to talent with the needed skills and training.
Recent companies added to the list in Torrance include:
Castelion
Northwood Space
FlightWave
Heart Aerospace
AnySignal
Gitai
Antares
These complement existing companies such as Moog, Epirus, Intellisense, Mercury, Stellant, Honeywell, 3DEO, and Hadrian, who recently announced expansions within buildings that are mobilizing shortly in Sares-Regis’ 3rd phase of the former Toyota Campus redevelopment.
These companies develop defense systems, satellite and communications systems, drones, anti- drone devices, electric aircraft, robotics, 3D printing, machine-aided mass production, micro reactors, weather sensors, and many more advanced technologies. 2 City Council
March 24, 2026
Because of this growth there is an ever-increasing need for workforce housing. To address this concern, the Office of Economic Development held a breakfast meeting in December that included large employers such as both Torrance-based hospitals, Honda, Moog, Torrance Refinery, Robinson Helicopter, and the Los Angeles Airforce Base, as well as housing developers representing several of the projects being developed in the city, as well as the school district, El Camino College, and the South Bay Workforce Investment Board. A robust discussion was held, and the group appreciated the City convening the group and desire was expressed to keep the conversation going. To successfully support the recruitment and retention of the advanced workforce needed for the caliber of businesses we are attracting, participants stressed the need for additional housing options for their current and future workforces.
Business Attraction, Retention, and Expansion
The Business Attraction Incentive to Torrance (BAIT) Program continues to be an important tool for attracting high-value businesses to the City. The program was successfully utilized to attract Sony Honda Mobility of America’s (SHMA) AFEELA electric vehicle division to Torrance. As a result of that successful attraction the company received expedited permitting, next day and after- hours inspections and facilitation with Southern California Edison (SCE). Special thanks to the Community Development and Fire’s Community Risk Reduction staff for their responsiveness in supporting Afeela through the entitlement, plan check and inspection processes. As a result, AFEELA’s grand opening ceremony took place on March 21st. Leading up to the grand opening, City staff has held regular check-ins with the company to ensure their progress has been on track.
Additionally, the City team attended the Consumer Electronics Show (CES) in Las Vegas.
At CES there were nearly 4,100 exhibitors and an anticipated 142,000 visitors from over 150 countries, so it was a positive opportunity to have Torrance represented throughout the event.
City representatives attended the Sony Honda Mobility press conference, where the AFEELA Prototype 2026 was unveiled which is expected to go to market in 2028. City representatives later joined the SHMA team and their vendor partners for a valuable networking opportunity that included several of their vendors which are already located in Torrance and will be helping support SHMA’s vehicles, especially since they will not be operating a traditional dealership full-service center.
The SHMA team voiced their sincere appreciation of the City’s support, from the Mayor and Council all the way down to city staff. They repeatedly mentioned how helpful the speed, responsiveness, and attention to detail were in getting their Torrance office open and navigating the process.
In addition, at CES, staff made time to visit Torrance-based companies that were exhibiting, including My Arcade, Alpinestars Inc., Car Mate USA, and Logisteed Solutions. They were genuinely surprised and appreciative that the City stopped by their booths.
A visit to the International Expo also allowed connections with a number of companies from our Friendship Cities of Hwaseong, Tainan, and Changhua that were showcasing. We shared the City’s marketing trifold, and a few companies mentioned plans to take their businesses public and potentially expand into the U.S. market down the line.
3 City Council
March 24, 2026
Another successful way the BAIT program has worked to our advantage is in retaining Hadrian, an advanced manufacturing business that makes precision parts for the Aerospace and Defense industry. The company was considering other locations but made the decision to stay and expand in Torrance. They also secured a $48,750,000 California Competes tax credit from the State of California. The company’s plans include adding the two buildings that will face Western Avenue adjacent to their existing building where they occupy approximately 80,000 square feet at the Sares-Regis Torrance Commerce Center site totaling 260,000 additional square feet. Being that this is their headquarters, they will be adding more office space and increasing the depth of the building foundations to allow for larger Computer Numerical Control (CNC) machines that support their machine aided manufacturing process.
Also at the Torrance Commerce Center, a logistics company will be taking over the north half of the building at Gramercy Place and 195 th for their corporate headquarters and adding in their warehouse currently located in Harbor Gateway. There will be a few available spaces for marketing to advanced manufacturing and research and development companies interested in coming into Torrance.
The Commercial Rehabilitation Rebate Program has approved one project since the last update:
a $4,718 rebate for exterior painting and façade improvements at The Children’s Place School located at 1215 Crenshaw Boulevard.
Staff continue to evaluate this program to determine if it should continue, be modified or be sun- setted given previously expressed concerns with prevailing wage requirements. The current program consists of three tiers with a 50% match with thresholds of $1000, $20,000, or $40,000.
These efforts are supported by the Economic Assistance Fund that is supported by the General Fund.
Options to modify the program significantly would most likely require an infusion of much more funding and staff to manage. Possible improvements that could be considered include the following:
1. Modify the grant tiers to increase the funding cap for larger projects. This could allow for more substantial improvements that have a greater visual and economic impact while broadening business interest.
2. Transition the program to exclusively cover City permit fees and pre-development costs such as project design and planning expenses.
3. Provide vendor resources for applicants that have been vetted by the City such as design professionals and contractors that are familiar with the City permitting and design standards. Although the participating business would select and contract with their chosen vendor from this list directly for what type of work, some or all of the payment for said work would be covered by the City.
Direction is being sought from City Council on whether to continue the program, to make changes to the program or to bring back a separate Council item for further discussion and determination on the future of this program.
4 City Council
March 24, 2026
Business Engagement, Visitations, and Assistance
In addition to attraction efforts, ongoing business assistance remains a core function of the Office of Economic Development. Staff regularly conduct business outreach and site visits, assist with permitting and regulatory processes, coordinate ribbon cuttings and grand openings, and connect businesses with local, regional, and state partners. Assistance includes support with site selection, workforce recruitment and training, financing opportunities, tax credits, marketing, and other resources tailored to the needs of the individual businesses.
Since the last Council update, staff have assisted or met with a wide range of businesses across multiple sectors including advanced manufacturing, aerospace, retail, hospitality, and technology.
The aim is to visit at least two businesses a month. Visits since September include: JaZoo retail, Rexford Industrial new light industrial building, Netslyce security systems, Mom Said Yes Restaurant, Heart Aerospace, FlightWave, drone manufacturer, Grocery Outlet, Divergent 3D, Hadrian manufacturing, Celestron manufacturing, GKY Dental Arts, GL Events meeting, Fracht Group logistics, and NetPay payroll system company, among others.
As “ombudsman” to the business community, Economic Development provides assistance in coordinating with Community Development staff on permitting requirements, providing letters of support for program applications such as the California Competes tax credit, and referring to resources such as the SBDC and SCORE for small business support. In addition, the City team utilized the Placer AI tool to assist the ownership of Torrance Star Plaza with identifying visitation information to help them with their tenant mix, future uses, and when and where to make changes.
Another form of business assistance that took place during this last period was to provide a grant/loan for $5,000 to PEL spiral coil manufacturing company. This small amount was able to help them with updating their marketing efforts via their website to take advantage of an opportunity in the marketplace when their biggest competitor shuts down. The company anticipates being able to increase their workforce as they realize more business through improved marketing.
Several businesses have recently opened or are preparing to open in Torrance, including FlightWave drone manufacturing company, which held its grand opening on March 9, 2026, and Castelion defense systems, which staff visited on March 13, 2026. Additional visits and outreach efforts are planned with companies such as Northwood Space specializing in ground infrastructure, Heart Aerospace electric aircraft developer, and AnySignal satellite communications company.
Downtown Revitalization
Efforts to establish a Downtown Torrance Business Improvement District (BID) have not advanced at this time. In the interim, the Downtown Torrance Association (DTA) which has successfully established nonprofit status allowing for the pursuit of grant and foundation funding, continues to partner with the City to support programming and marketing initiatives such as upcoming efforts that include two World Cup watch parties planned to be held in Downtown Torrance on June 13 and July 11. The DTA will be instrumental in ensuring the success of the watch parties planned for the area. Additionally, the American Cancer Society’s Relay for Life will return in Downtown on May 9 th and the Historical Society’s Rock Around the Block is slated for July 16th.
5 City Council
March 24, 2026
Since the last update, a new Downtown banner program has been implemented. Currently a generic design is featured but soon there will be added banners in between those already hung that will feature a rotating design theme that highlights seasonal and community events. A version of the 250th birthday design will be next to be added.
Retail and Local Spending
Retail activity continues to evolve citywide. Del Amo Fashion Center’s newest tenants include Aritzia women’s fashion, Mumu Hot Pot, Origami Handroll, Bacio de Latte, BYLT Premium Basics men’s clothing, Pop Mart toys, ThirdLove lingerie, and several additional retailers and restaurants.
Although the retail sector remains dynamic nationwide, Torrance continues to attract high- performing retailers due to its strong regional demographics and central South Bay location. Staff continue to communicate with and support mall management and property owners to attract additional higher-end and specialty retail brands.
Automotive sales remain an important contributor to local revenue. For the period of September through February, the average monthly auto sales for 2024–2025 were approximately 1,271 vehicles, compared to approximately 1,189 vehicles for the same period in 2025–2026. While auto sales showed a slight increase in 2025 over 2024 there appears to be a slowing in sales and it is anticipated that these will drop more in 2026. Increased vehicle and unit prices are some commonly attributed indicators with auto sales.
Hospitality and Tourism
The California Welcome Center in Torrance continues to attract approximately 6,500 visitors annually. While hotel occupancy rates have slightly declined compared to the previous two years, key revenue indicators continue to improve.
Current hotel performance metrics are as follows:
Calendar
Year
Occupancy
Rate
Average Daily Rate Revenue Per Available Room
2026 80.7% $166.90 $134.76
2025 81.1% $163.34 $132.55
2024 81.3% $160.37 $130.35
Visitation to Torrance is holding steady. While we are now receiving monthly reports from Placer AI on travel and tourism, this only tracks national visitors, not international, which is something we have built momentum on. Discover Torrance does market to various regions in the country, so it is good to see the results of that. Phoenix and Las Vegas have been cities that have ranked high on visitation to Torrance. Staff will be monitoring the forecasted uptick in visitors to Retailers and Hospitality sectors as the World Cup approaches.
6 City Council
March 24, 2026
Special Events and Filming
Since the previous Council update, 26 film permits have been issued in Torrance. Productions included commercials for Nike, Buffalo Wild Wings, Jollibee, Wendy’s, and Aldi, as well as television and film productions such as Property Brothers, Storage Wars, and the Netflix film The Fifth Wheel. Revenues for the period totaled $110,246.00! Last period fees totaled $31,913.00.
The recent increase in revenues can be attributed to filming activity in general picking up in our region as well as the bump in City fees being charged, which include a student film fee which we did not have in the past. Torrance is a popular location for filming due to the diversity of location options and for our responsiveness in permit processing.
Upcoming and planned events include the American Cancer Society Relay for Life in Downtown Torrance on May 9th, and a Nike Half Marathon planned for October anticipated to include activity within the Riviera neighborhood. More information on the Nike event will be brought to Council as soon as the event organizers determine the run route and staff can assess the impacts on the community.
International Economic Partnerships and Global Sporting Events Opportunities International outreach continues to strengthen Torrance’s global business connections. Recent engagements included meetings and events with representatives from Japan, both a high school and business group, France – with attendance at the Consul General’s residence, Germany – for a holiday networking event, Australia – to welcome the Consul General to Torrance, and Taiwan for business group visitations and to show the Taiwan Olympic committee representatives what Torrance has to offer.
Notably, as approved by Council, a delegation of approximately 50 members of Taiwan’s National Olympic Committee is planning to stay in Torrance during the 2028 Olympic Games and utilize City facilities for training and preparation. We continue to engage with other countries to bring their delegations, athletes, and nation houses to Torrance.
Staff continue to participate in LA County 88 for 28 meetings to collaborate as a region on the opportunities presented by these large internation sporting events.
Staff have also participated in FIFA World Cup host city coordination meetings in preparation for the 2026 tournament and met with the FIFA Host City Director to introduce her to Torrance.
Torrance will be one of the locations where FIFA teams will stay for the matches being played at SoFi Stadium.
As a result of meeting with the Spanish Consul General last year and subsequent follow up, the possibility of adding a friendship city in Spain is being explored. 7 City Council
March 24, 2026
Regional Economic Development Partnerships
Economic Development staff continue to promote Torrance through industry events, presentations, and partnerships. Since the last update, staff have participated in numerous events and forums including:
A Placer.ai Southern California user group presentation highlighting Torrance retail analytics and attraction strategies
The Torrance Tech Committee meeting hosted at Zoller to explore innovative partnerships with Torrance Unified School District
The California State Treasurer’s Golden State Manufacturing Forum at California State University, Los Angeles where the Assistant City Manager participated on a leadership panel
Presentations to Leadership Torrance and the Management Aide, USC, and City County Management Fellowship networking event
Staff also participated in regional economic forums and community events including the Los Angeles Economic Development Corporation’s (LAEDC) Future Forum on Artificial Intelligence, the LAEDC Economic Forecast, and the South Bay Economic Forecast that was held at California State University Dominguez Hills.
Development Pipeline and Future Opportunities
Passport Program promoting local dining
FUSUS program with Police Department to partner with businesses with security camera systems
Vacant space inventory and target marketing to backfill Breakfast meetings focused on Aerospace and Defense, Sports/Martial Arts Los Angeles County Department of Economic Opportunity Small Business event Please accept and file the Economic Development Update and discuss and provide direction on proposed Economic Development initiatives.
8