Malibu Economic Study Raises Issues

• Look at Shopping Patterns Has No Surprises

BY BILL KOENEKER

The adage that Malibu is unique was made clear at this week’s Malibu City Council meeting when a high-priced consultant, who contends he has probed local shopping preferences and handed in a nearly 100-page report offering “solutions,” was queried by council members.

One of his conclusions was that for the city to provide the community service retailers sought by shoppers, local government would have to provide an incentive to commercial real estate developers,.including a .60 floor area ratio in exchange for lower rents to such businesses.

“It is a bonus for developers. It is a common approach in the housing sector,” said Doug Svensson, the president of Applied Development Economics, Inc., a Bay Area economics consulting firm.

Councilmember Sharon Barovsky explained her reaction when she read that recommendation. “I got your survey. If we go to a .60 FAR, I’m going back to Hawaii. They will run me out of town. You did not ask the question if people were willing to make that trade off for local businesses. We tend to stop development at a .15 FAR,” she said.

Councilmember Pamela Conley Ulich asked Svensson about why the study did not include one of Malibu’s burgeoning industries, drug rehabilitation facilities.

“What about rehabs?” asked Conley Ulich. “Do you mean remodeling?” answered Svensson.

“That’s my point,” retorted a laughing Conley Ulich who had begun questioning the veracity of the study, which claimed that respondents listed brand names on their shopping lists, which resulted in the conclusion there was no local animus towards retail formula stores.

Laura Rosenthal, who is on the economic advisory committee charged with overseeing the study, said the panel never saw the final report. She asked the report be sent back to the committee. The council agreed. Rosenthal said it was necessary to go over the report to “localize” some of the conclusions and recommendations. “Some of the results would not work in Malibu,” she added.

Point Dume activist John Mazza, who said he has a degree in economics, took issue with the consulting firm, which reported that Malibu households spend $246 million annually on retail purchases, but of that amount spend $189 million out of the area. The firm claims that an additional 618,000 square feet of retail space could be built in Malibu to try to stop that leakage.

Mazza said the report states that $147 million of the total $234 million in retail sales generated in Malibu comes from outsiders. “We already capture the leakage,” he noted.

Steve Urich went so far as to say he believed there were fabrications in the report. “It starts with people making up stuff. What you have here is factual and a little fiction here,” he said.

However, Mayor Jeff Jennings said he thought the report spelled out the economic facts of Malibu. “There is room for disagreement for many of the details, but you brought home some of the realities that do exist. We can quibble about what residents want, but the economic factors that drive it are here,” he noted

Councilmember Andy Stern said the problem of losing local stores is endemic to all of the Westside, including Beverly Hills. “The problem is everywhere,” he added.

Barovsky reminded her colleagues and the audience that the goals that prompted the study were actually set by a previous council.

The study is described as building upon the 2000 economic plan. That was set into motion several years ago for the city to implement an Economic Element to the General Plan.

Barovsky said that policy was set by former Councilmember Tom Hasse with the concurrence of the council at that time and the current council has continued to honor that commitment.

The results of the survey suggested residents are unhappy with the current mix of retail shopping and expressed concern that retailers cater primarily to visitors and very high-income households.

The survey purported to show that residents would like to see a hardware/home improvement store, a general merchandise store selling household goods and a specialty food store.