10A
Date: September 1, 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 Economic Development Update. Expenditure: None.
RECOMMENDATION
Recommendation of the City Manager that City Council accept and file the Economic Development Update.
FUNDING
None required.
DISCUSSION
From January through June 2026, the Economic Development Office focused on supporting existing businesses, attracting new investment, advancing City Council priorities, and strengthening partnerships with local, regional, and international organizations. Activities included business retention and expansion efforts, development of incentive programs, support for manufacturing and technology companies, tourism initiatives, downtown revitalization, grant opportunities, special events, and preparations for major international activities.
The Office of Economic Development places an emphasis on proactive outreach, collaboration with other City departments, and positioning Torrance as a competitive location for business investment while improving the City's quality of life.
Business Attraction & Retention/The Economic Development Team • Conducted numerous meetings with prospective businesses considering Torrance. Visited local employers and manufacturers to better understand expansion needs. • Assisted companies with site selection, permitting, incentives, and City resources. • Supported companies in advanced manufacturing, aerospace, medical technology, and other high-value industries.
While we are seeing a resurgence in Aerospace and Defense companies, the difference in these businesses as opposed to the “more traditional” or those that suffered during the economic downturn of the 1990’s, these companies are more diversified, incorporating commercial uses in their products and connections with Biotech and local Policing.
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Meetings, visits, and ribbon cuttings attended during this period include the following companies:
• ANA Trading (division of All Nippon Airways)
• Any Signal - satellite communications
• Axiom Medical - Medical Tubing Manufacturer
• Bettolino Kitchen - restaurant
• Castelion - Aerospace and Defense
• Celestron - Telescope Manufacturer
• China Yi – restaurant
• Double Tree- Hospitality
• Decibel Studios - Audio Visual system design
• FlightWave - Drone Developer
• Genesis - Auto Dealership
• Ike's Sandwiches - restaurant
• NetPay – Payroll Services
• Navitas – Semiconductor Developer
• Partner Engineering – Consulting for Commercial Real Estate • PEL Manufacturing – Spiral Binding and Printing
• Polypeptide – Biotech
• Sony Honda Mobility of America – Electric Vehicle
• Southwestern National Bank
• The Melt - restaurant
• The Hoyt Organization – Public Relations and Marketing • Toyota (Hydrogen Headquarters, Gardena)
• Torrance Bakery - restaurant
• Verustruct – Robotic 3D Printed Housing
Updates from the Sares Regis Group indicate tremendous interest in Phase 3 of the Torrance Commerce Center development.
• Hadrian is expanding and adding the two buildings to the north of their current site expanding all the way to 190th Street to the north.
• Castelion has contacted them about the need for additional space and may consider the space Alpine plans to vacate after May of next year.
• K2 Space has also contacted them (they are currently in the Harbor Gateway area on Sepulveda) as they are in expansion mode.
• Both Castelion and K2 Space are considering the space that will be available on the north side of 190th Street.
• Duty Free America is taking over Duty Free Shops in August so that lease will transition over. Will be the same use and still service LAX & SFO. • Arc Boats is doing well and is in the tugboat market now (out of a Washington state plant) finding that more lucrative than the personal watercraft. They had initially signaled interest in additional space at the Torrance site, but holding for now. • Wash Laundry is also doing well.
• While not in the Commerce Center development but right next door, Epirus has plans to take over an adjacent approximately 40,000 square foot building.
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Torrance Passport
The Torrance Passport Pilot Program, which was an effort to support our Dining and Restaurant industry, took place March 26 – April 26, 2026.
Program Highlights
• Outreach materials and program information were e-mailed to 463 dining establishments in Torrance
• Nearly 400 promotional window decals were distributed to participating restaurants and businesses throughout the city.
• A total of 2,000 Passport booklets were printed through Central Services and made available at Torrance City Hall, all Torrance Library branches, and the California Welcome Center. Fewer than 200 passports remained unclaimed at the conclusion of the program. • Over 100 completed passports were turned into the Welcome Center. • Thanks to the partnership with Discover Torrance, 35 prizes were awarded totaling more than $1,000 in gift certificates and giveaways.
• More than a dozen local restaurants and businesses contributed prizes to support the program.
Social Media & Community Engagement
To further increase awareness and participation, a targeted social media advertising campaign was implemented. A total of $560 was invested to boost campaign visibility within a 30-mile radius of Torrance, reaching audiences throughout Los Angeles and Orange Count ies. The campaign ran for nearly two weeks, with an average daily spend of approximately $45 per day. The campaign generated strong community participation and visibility across Meta • 59,191 total views
• 36,188 total reach
• 1,521 website visits
• 688 likes and reactions
• 232 shares
• 116 saves
• 42 community member posts across Facebook and Instagram Program Costs
• Printing & promotional materials: $12,559.14
• Drawing event refreshments (Torrance Bakery cookies & coffee): $406.75 • Social media campaign: $560.00
• Total Program Cost: $13,525.89
Follow-Up & Continued Engagement Opportunities
Positive business feedback was received from participating businesses, highlighting the value of the program in driving visibility and engagement As part of the post-program follow-up, staff will continue supporting participating businesses and maintaining momentum generated through the Torrance Passport Program by:
• Highlighting participating restaurants and businesses across the City’s social media platforms, including businesses from all areas of Torrance and those who contributed prizes as a way to thank and continue supporting Torrance’s local dining community. 3 City Council
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• Aggregating and monitoring community sentiment through the ZenCity platform to better understand how residents and visitors are discussing and engaging about the Torrance Passport Program online.
• Exploring opportunities and ways to improve in the event Council requests the program to return.
Del Amo Fashion Center
The following businesses are open now at Del Amo Fashion Center:
Aritzia – women’s apparel Origami Handroll Bar
Bacio de Latte – gelato & coffee Rowan – ear piercing
BYLT Premium Basics – apparel The Melt - restaurant
Mumu Hot Pot - restaurant Torrid (relocation) – plus size fashion
The following are under construction and scheduled to open at Del Amo Fashion Center in 2026:
Caitlyn Minimalist - jewelry Yu Cake – Asian bakery
N. Cat – Korean accessory brand Onigilly – Japanese food Pop Mart - toys Third Love - lingerie
Olive Young, an extremely popular Korean-based cosmetics, health, and beauty product retailer, is in construction mode and hopes to open at Del Amo before the end of the year as well.
Torrance Auto Dealers
The average weekend sales for the 6-month period (January through June) is 1,130 vehicles per month. May was notably the highest month at 1,451, while January was the lowest at 975, indicating a strong lift leading into late spring.
The automotive sector remains a significant contributor to local sales, with consistent activity across dealerships and supply stores.
Fluctuations in quarterly sales highlight seasonal or market-driven factors.
Sales tax remittance for new motor vehicles sales for the first quarter of 2026 are relatively flat compared to the same quarter last year, both at approximately $2.0 million. • Quarter-to-date change from Q1 2026 to Q1 2025 was flat for new auto dealers, auto lease entities, and used car dealerships
• Quarter-over-quarter change from Q1 2025 to Q1 2026 is generally trending down from Q2 2025 for new auto dealers
• The latest quarter change from Q4 2025 to Q1 2026 sees a decrease in new auto dealers and an increase in used auto dealers
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Monthly Auto Sales from January – June Comparison
Month 2026 2025 2024
January 975 982 1419
February 1185 1003 1199
March 1132 1518 1146
April 1001 1226 1141
May 1451 1230 968
June 1036 1009 1197
Totals 6780 6968 7070
Business Assistance
• Worked with businesses experiencing permitting, operational, or expansion challenges and coordinated across City departments to resolve issues impacting local businesses. • Continued development and implementation of business incentive and assistance programs.
The Business Attraction Incentive program, or BAIT, was successful in retaining Hadrian, an advanced manufacturing company which has chosen to maintain their headquarters in Torrance and is expanding into two additional buildings at the Torrance Commerce Center. • The Children’s Place school at 1215 Crenshaw Boulevard participated in the Commercial Façade Improvement Program with work completed in February for a rebate amount of $4,718.
• Staff are continuing to promote this program which provides an incentive for commercial property owners to beautify the exterior of their properties. To more actively engage participants, the team will provide assistance to qualified applicants for permitting costs for exterior improvements and/or assist with costs for the acquisition of certain exterior features such as flags, signage, or awnings.
Economic Development Planning
The Office of Economic Development prepares reports and presentations for City Council, City Departments and external organizations ensuring implementation of Council-directed economic development initiatives. The team also coordinates Torrance Pitch and Branding materials, long- term economic development strategies and policy recommendations.
The Office of Economic Development partnered with a Torrance -based production company to develop a new #WhyTorrance video campaign showcasing the many diverse facets of the City.
The team also supported and facilitated the Samurai of the Diamond mural, coordinating with City Council, Discover Torrance and Double Tree by Hilton key partners to bring the project to life. Its success has generated continued interest in additional murals and creative placemaking opportunities throughout Torrance.
Building on this work, the OED has also been invited to participate in the American Planning Association’s October 6 conference, themed “Crafting Our Narrative: Planning as Storytelling.” 5 City Council
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During the panel session, “Your City Has Entered the Chat: Using Social Media and Short-Form Video to Tell Your Story,” the City will highlight its creative approach to showcasing Torrance. The Communications team is assisting with preparations for this opportunity.
In addition, the City has joined Team California, a statewide marketing effort to attract and retain businesses. Beyond the opportunity to participate or be represented at business investment trade conferences, some of the benefits include a site selection feature on the Team California website which highlights available commercial and industrial space in the city. Also, the Economic Development Team will soon take advantage of working with Team California on a one-minute audio ad and a 20-minute interview-style podcast that we will be able to promote.
Downtown & Community Development
Downtown revitalization efforts continue to advance with the aid of the Downtown Torrance Association and multiple City departments.
• Coordinated with Community Development on beautification and placemaking projects which included the inception of a seasonal banner program , new lighting in the parking structure, with security cameras coming soon, and interior painting when budget allows. • In preparation for the World Cup watch parties, Community Services spearheaded a refresh of the Centennial Plaza with painting of the benches and signage. • The Public Works Department has continued to improve the area with planter updates and sidewalk repairs and replacement.
The Office of Economic Development participated with the City team to carry out the first of two Metro-funded community watch parties for the World Cup held in the Downtown Torrance area.
Lessons were learned from the first event that were able to provide for improvements for the second. The July 11th analysis demonstrate d strong performance for the more concentrated event footprint at El Prado Park. The event generated approximately 1,600 visits and 1,600 unique visitors, with an average dwell time of 155 minutes (2 hours and 35 minutes). The report also indicated that attendees visited nearby restaurants and retail establishments, suggesting the event generated economic activity beyond the park itself.
Additionally, staff is finalizing strategic bollard design placements to more easily support Downtown Street Closures for future street activations and community programming.
Regional Partnerships
• Participated in meetings with:
o Los Angeles County Economic Development organizations o South Bay partners
o Chambers of Commerce
o Industry organizations
o Regional business groups
The Office of Economic Development hosted it quarterly Torrance Tech Committee meeting at Brews Hall on May 28 th where a highlight included information shared with the group from the Police Department on the Business Watch program and how technology is advancing and aiding police work in the city. The next meeting is scheduled to take place on October 7, 2026, at Partner Engineering.
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International Relations
• Coordinated activities related to international partnerships and Friendship Cities. • Assisted with planning international delegations and cultural exchanges. • Supported Taiwan-related events and other international relationship -building efforts. A formal signing ceremony was held in April for the Memorandum of Understanding between the City of Torrance and the Chinese Taipei Olympic Committee for the group to make use of City facilities for the 2028 Olympics and staying at Torrance hotels. • A business roundtable was held with the Latvian American Chamber of Commerce and the Latvian Investment and Development Agency as a result of the team’s participation in the Los Angeles County Economic Development Corporation’s annual Select LA Investment Summit.
• Staff also participated in the Smart Air and Mobility Exchange featuring the State of California and the Dutch government that El Camino College hosted.
Tourism & Hospitality
• Worked with hotels, tourism organizations, and hospitality stakeholders. • Participated in regional tourism discussions.
• Promoted Torrance as a visitor destination.
Transient Occupancy Tax paid for hotel rooms for January – June 2026 is estimated at $9.3 million which represents a +7% increase from the prior year. The occupancy rate to date for 2026 is averaging 79.2%, down slightly from 80.6% in 2025 and 80.7% in 2024 for this time period. Average Daily Rate is $174.04 as of June, was $164.14 in 2025 at this time, and $162.38 in 2024. Revenue Per Available Room is $137.84 as of June and was $132.27 in 2025 and $130.99 in 2024.
While occupancy rates are staying about the same, revenues generated are increasing. July is typically a strong, if not the strongest month for Torrance hotels, so we’re interested to see if there was an impact based on World Cup activity.
Year over year activity for June:
Calendar Year Occupancy Rate Average Daily Rate Revenue Per Available Room
2026 79.2% 174.04 137.84
2025 80.6% 164.14 132.27
2024 80.7% 162.38 130.99
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Occupancy Percentage Rate for January – June 2026
January 73.7%
February 79.6%
March 78.3%
April 79.3%
May 80.6%
June 83.8%
Average Daily Rates in Dollars for January – June 2026
January $163.33
February $173.10
March $169.48
April $170.20
May $170.88
June $195.76
Revenue Per Available Room in Dollars for January – June 2026 January $120.41
February $137.76
March $132.69
April $135.05
May $137.78
June $164.11
The total number of visitors to the California Welcome Center operated at Del Amo Fashion Center in partnership with Simon Property Group, the City of Torrance, and Discover Torrance was 34,548 for the period January through June of this year. The monthly average was 5,758.
The breakdown for the months was:
California Welcome Center Visits
January – 5434 April - 5174 February – 4664 May - 6313 March - 5743 June - 7220 Additionally, metrics are able to be captured via the augmented reality QR code that viewers use to engage with the Robert Vargas Dodgers mural “Samurai of the Diamond”. Data to date shows the following: Total Views 22,201
Countries of Visitors:
United States 14,410
Japan 7,230
Hong Kong 156
Singapore 140
Taiwan 126
United Kingdom 71
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Cities of Visitors:
Los Angeles 6,074
Torrance 2,036
San Jose 1,426
Seattle 1,228
Chicago 320
New York 241
Dallas 234
Special Events and Filming Office
The processing of special events continues to transition and improve with the distribution of the permitting process across relevant departments. Staff also have plans to make updates to our municipal code to more accurately address concerns related to special events From January through June of this year there were 5 special events permits handled by the Office of Economic Development/City Manager’s Office which generated $767.00 in fee revenue. This does not include events at the Cultural Arts Center or events taking place at City parks that are now processed by the Community Services Department.
For this period there were 24 film permits issued for $83,061 amount of revenue which included television commercials for Aldi and Wendy’s as well as the Netflix film “The Fifth Wheel” which is expected to be released in early 2027
Special Projects
The Economic Development team attended Metro Board meetings to encourage the support of use of the Metro right of way for the Metro C Line extension into Torrance rather than construct a route down the center of Hawthorne Boulevard, the major commercial corridor in the city.
Instituted “office hours” meeting with commercial property owners to share Placer AI data on shopping center visitation and tenant mix possibilities. One property examined was Star Plaza at Crenshaw and Sepulveda and the other was a center on the west side of Hawthorne at 186th Street. The analysis and report on findings were extremely well received by these property owners and the Office of Economic Development plans to promote more of this service.
Several priorities appear consistently throughout the six-month period:
• Proactive engagement with existing businesses
• Attraction of new employers and investment
• Cross-department collaboration
• Support for advanced manufacturing and technology sectors • Strengthening regional partnerships
• Downtown revitalization
• International economic relationships
Overall Assessment
Activity for the 6-month period reflects a highly active Economic Development program centered on relationship -building, problem -solving, and strategic project management. Rather than focusing on a single initiative, the Office balanced immediate business assistance with longer - 9 City Council
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term economic development planning. The work demonstrates a comprehensive approach to fostering business growth, enhancing community vitality, and supporting City Council priorities through coordinated economic development efforts.
Looking Forward
Continuous evaluation and incorporation of Council priorities and strategic initiatives to focus on business attraction and retention.
Hosting Los Angeles County Department of Economic Opportunity workshop August 20, 2026, on contracting with the County for the upcoming Olympics and Paralympics.
Applying for the Los Angeles County Economic Development Corporation’s Most Business - Friendly City award with awards to be announced at the organization’s major fundraiser event the EDDY’s in November.
Continuing to coordinate the Tech Committee. The group recently visited the Police Department’s Real Time Response Center, and some business representatives were able to see how the work that they do is incorporated into this important community asset.
Plans are underway to refresh City Economic Development marketing material and the Economic Development page on the City website that continues with the most recent #WhyTorrance design.
Additionally, staff will be creating new business welcome packets and further customizing material for business visitations.
The City Council is requested to accept and file this economic development update. 10