Developer Says 2nd & PCH Project Will 'Activate' Marina

By Sean Belk

With the SeaPort Marina Hotel at 2nd Street and Pacific Coast Highway (PCH) toppled into rubble, construction will soon begin on a two-level retail shopping center expected to “activate” the marina with new upscale dining and shopping options along with streetscape improvements, according to the developer.

In a presentation to the Rotary Club of Long Beach during a luncheon at the Queen Mary on Nov. 29, Steve Shaul, director of development for El Segundo-based CenterCal Properties provided an overview of the project that he said is expected to be completed by summer 2019.

In the first public presentation since the Long Beach Planning Commission unanimously granted approvals in September, Shaul said the development, which is being financed through a partnership between CenterCal and the site’s longtime owner Raymond Lin of Taki-Sun, Inc., will bring “best-in-class” local and national retail tenants to Southeast Long Beach.

The 2nd & PCH project, being built under current zoning, is finally becoming a reality after many failed attempts by previous developers over the past two decades, he noted. Two opponents of the current proposal eventually retracted their appeals, allowing demolition of the more than 50-year-old hotel to commence in October.

“This has been a long time coming,” Shaul said. “Other developers have tried and failed. What made us different is we stuck to the rules. We didn’t ask for any rules to be changed. The current zoning allows for the project that we’re building and so we’re providing that.”

Expected to rival retail destinations in Orange County and the South Bay, the 245,000-square-foot shopping center will include 95,000 square feet of retail space and 70,000 square feet of restaurants, along with a 25,000-square-foot fitness club and a new 45,000-square-foot Whole Foods Market, relocating from its smaller location at the Marina Shores Shopping Center.

The key to moving through the city’s approval process smoothly, as opposed to previous high-density proposals, Shaul said, was sticking to the city’s existing zoning, which caps building heights at 35 feet and prohibits residential uses at the site. The city has since moved forward with a newly revised zoning ordinance, known as the Southeast Area Specific Plan (SEASP), which currently awaits state approvals.

CenterCal is also partnering with the city and CalTrans on various streetscape improvements that will eventually help improve traffic, pedestrian connectivity and bike mobility in the area while enabling the project to better embrace the Alamitos Bay Marina, with storefronts facing the waterfront, he said.

Improvements include a new traffic signal on PCH as well as protected bike lanes in both directions along Marina Drive, which will receive a “road diet,” with diagonal public parking spaces similar to those on Ocean Boulevard in Belmont Shore.

On some days, part of Marina Drive could be blocked off to traffic to make it even more pedestrian friendly, he said, adding that the complex will provide more than 1,000 parking stalls, some of which will be located on the roof and connected structures.

Aside from Whole Foods, which has already signed a lease, Shaul said he couldn’t officially announce any other retailers interested in taking up space. However, he said the developer is hoping the project will attract national retailers (the likes of Apple or Urban Outfitters) while drawing upscale chains and local restaurants.

“I can say that we’ve had a ton of activity and we’ve got a lot of letters of intent in lease negotiation right now,” he said, adding that the developer hopes to solidify lease contracts in the next few months.

Shaul said the center’s waterfront location and inviting “warm coastal contemporary” design, which includes public gathering places for art walks and ceremonies as well as LED screens for movies and advertising, could be the solution retailers are looking for to compete against online shopping.

“You hear a lot about how the Internet is going to crush retail,” he said. “I think that’s true for some categories of retail, but, at the end of the day, people want a place to go to mingle, to meet with friends, to eat and, also, to shop and that’s where we feel our centers are different and what we’re going to bring to Long Beach.”

The retail complex, which the developer estimates will eventually provide the city with nearly $2.8 million annually in new retail sales tax revenue and bring nearly 1,000 new temporary and full-time jobs, will become an iconic gateway into Long Beach, Shaul said.

He said the development once completed will also help boost other shopping centers in the surrounding area, such as the Marketplace across PCH that is also planning investments for new development and upgrades.

“I think it’s going to lift other centers,” Shaul said. “I think you’re going to see Long Beach Marketplace across the street invest quite a few dollars to make that relevant and it’s just going to lift from there.”

sean@beachcomber.news