Developer Moves Forward with Plans for Retail Center at 2nd/PCH

By Sean Belk

CenterCal, an El Segundo-based commercial real estate developer, is moving forward with plans to transform a 10-acre site at 2nd Street and Pacific Coast Highway (PCH) into a pedestrian-friendly, lifestyle-type retail shopping center with views of the Alamitos Bay Marina.

The Long Beach Planning Commission at its meeting on May 18 conducted a study session on the project, which includes demolishing the nearly 50-year-old SeaPort Marina Hotel that has been closed since earlier this year. An environmental impact report (EIR) on the project has been released for public review and will be up for approval later this year, according to city staff.

The project comes after numerous attempts by property owner Raymond Lin to develop the site have been shot down by the city council due to concerns about high density, building heights, increased traffic and potential impacts to the nearby Los Cerritos Wetlands. The most recent proposal nearly six years ago included plans for a 12-story residential high-rise and hotel.

The failed proposals prompted the city to embark on a three-year process to update zoning in the area that has remained unchanged since the 1970s. A new set of development guidelines called the Southeast Area Specific Plan (SEASP) is currently undergoing a separate approval process, with the planning commission expected to vote on a final EIR next month.

The new retail project, however, conforms to current zoning regulations, requires no variances and includes no residential components or hotel use, according to the developer and city staff.

Although the project is moving forward prior to the SEASP being finalized and approved, the developer has collaborated with city staff to include design and architectural features expressed by the community in the new zoning, said Christopher Koontz, the city’s advance planning officer.

“This project is consistent with the existing zoning, which is what’s on the books and legally what we have to evaluate the project under,” he said. “Nonetheless, part of the journey that we’ve been on with the applicant over the last year and a half is making sure we meet a lot of those design criteria that you find in the SEASP ... and the applicant was very accommodating in making changes to the way the project interacts with PCH as well as Marina [Drive].”

Koontz said that, while SEASP would allow the developer to build a larger mixed-use project, with the possibility of a residential component, the new zoning plan would also allow for an all-retail project as currently proposed. In terms of environmental analysis, city staff made sure any changes to traffic intersections were consistent with the new zoning as well, he said.

Still, Koontz said the project requires the city council to approve overriding considerations for a local coastal development permit and EIR, expected to come back to the planning commission for certification later this year. Approvals from the California Coastal Commission are also required for the project to move forward, he noted.

Steve Shaul, senior director of development for CenterCal, which has entered into a joint venture with the property owner and plans to eventually manage and operate the new retail center, said comments about the project from community members at various outreach meetings and open houses have been “overwhelmingly positive.”

The project, expected to cost more than $150 million to construct and be completed by 2019, calls for developing a three-level retail center with “an iconic design” and “outdoor living room” spaces, that would accentuate what is considered to be a premier gateway into the City of Long Beach, he said.

“We have an opportunity to have restaurants with marina views on the second level and we wanted to make sure we really articulated that through our design,” Shaul said. “Most of all, we wanted to make it a walkable experience, create a streetscape and make it very pedestrian friendly for 2nd Street, PCH and Marina Drive.”

The developer has already secured a lease with Whole Foods to take up 45,000 square feet, relocating from its current nearby location, while leases to take up nearly 100,000 square feet are being negotiated with nearly 40 tenants, he said. Shaul said the site has been “very well received” by top retailers, mid-tier retailers and restaurateurs.

City staff noted that the city is planning major improvements to Marina Drive, including new parking spaces, protected bike lanes and other pedestrian- and bike-friendly features.

While some residents raised concerns about possible demolition of the SeaPort Marina hotel occurring prior to city approval, city staff has confirmed that formal demolition has yet to commence.

Kevin Lee, spokesperson for Long Beach Development Services, told the Beachcomber that the roof of the building has recently undergone asbestos abatement, which is permitted through the South Coast Air Quality Management District [AQMD]. However, he said no formal demolition of the structure has occurred yet, as no permits have been issued by the city while the project goes through the EIR approval process.

As for the SEASP, which anticipates new development in the 1,500-acre southeast area through 2060, the planning commission is expected to vote on a final version of the new plan along with a final EIR at its meeting on June 1.

The new zoning plan aims to balance “physical, economic and environmental” aspects of the area by establishing the community vision, complying with state requirements for more “compact mixed-use development” and providing a broader range of mobility options, according to city staff.

The plan also establishes a new land-use category known as “coastal habitat wetlands and recreation,” allowing for wetlands restoration efforts and the creation of interpretive centers or visitor-serving coastal related uses.

Out of five alternatives being considered, city staff is recommending approval of a “reduced intensity” alternative that allows about 30 percent less development originally proposed under the circulated specific plan.

At full build-out, the alternative plan would allow for the development of about 2,500 new residential dwelling units (adding about 4,100 more residents), an additional 300,000 square feet of commercial space and 375 new hotel rooms in the area.

The reduced intensity alternative, however, would still include the same height, design, mobility, public benefit and other provisions as the originally circulated specific plan, according to city staff.

While existing zoning caps building heights at 35 feet and prohibits residential uses in most areas, the new plan would allow for mainly three- and five-story building heights. Any new development projects seeking the maximum seven-story height would be required to include hotel uses as well as community amenities, according to city staff.

sean@beachcomber.news