Plans to build homes, retail downtown get moving again.
By Don Jergler
Staff writer
LONG BEACH — One of the major components of downtown revitalization is finally taking shape.
Progress is being made at The Promenade, a pedestrian street bordered by First and Third streets, with alleys connecting it to Pine Avenue and Long Beach Boulevard.
It's a portion of downtown frequented by the homeless that serves as a reminder of what happened when the U.S. Navy pulled out of Long Beach in the early 1990s, leaving a hole in the economy.
Many businesses and residential buildings on The Promenade have since vacated. Aside from the Blue Cafe, the only signs of commercial life materialize at the Farmers Market on Fridays. That was moved to nearby CityPlace late last year to make way for development, but vendors selling hot food and crafts still use the Promenade area.
Now, the first signs that revitalization is about to touch the Promenade are rearing up. A residential/retail project is nearing completion, the first of three large developments on The Promenade is set to break ground in April, and two of the projects off the street are expected to win approval in March.
Work has begun on the Insurance Exchange Building project at 201 E. Broadway, with a sale of the last half of 12 units scheduled for March 21.
Developers of what has long been considered an eyesore said this week that they have signed an independent developer to build a conjoined ground-floor Cajun restaurant, Qunitens, and basement club, The Cellar.
"Our building was probably the most dilapidated building in the area," said Dan Peterson of Loft Developments Inc. in Gardena.
Thanks to development, half the units were reserved in October, with prices ranging from the high $500,000s to the mid-$700,000s for 1,450-square-foot New York-style lofts.
The 1925 building, which originally featured the Middough Men's Store, was placed on the National Register of Historic Places in 2003. Designed by Harvey Lockridge, the architect on several downtown Long Beach buildings, it cost more than $165,000 to build at the time.
Construction is set to begin in April on The Olson Co.'s two-building project at The Promenade and Broadway. The project has 18 unit plans that range from an 832-square-foot one-bedroom to a 2,441-square-foot loft.
There will be 97 residential units. Some lofts have space for residents who wish to operate street-level retail, and 8,000 square feet of ground-floor retail space for lease.
Unit prices should range from the mid-$300,000s to the $600,000s, said Ben Besley, director of development for The Olson Co., a Seal Beach developer.
"We consider Long Beach to be one of the best new housing communities in the Southern California area, and we believe this site is possibly the best site in Long Beach," Besley said.
Parking problems?
With completion expected in the first quarter of 2007, the project will include a two-level subterranean garage with 75 to 80 public parking spaces.
That's a contentious issue for some downtown business.
"I think we're going to go through two years of hell on Pine Avenue," said John Morris, owner of Smooth's Sports Grille, which has customers parking in The Promenade area due to the lack of parking on Pine.
Morris, a vocal City Hall critic, has argued that the city is breaking its promise to maintain public parking on The Promenade. He has estimated the area is being shorted 20 parking spaces because of The Olson project alone.
Already in operation, downtown projects The Pike at Rainbow Harbor and CityPlace combine for roughly 1 million square feet of dining, retail and entertainment space.
However, the projects have so far failed to draw a large number of retailers and have been labeled uninviting and hard to access by some designers and architects.
The Pike sits on the south side of a hill, separated from Pine Avenue and CityPlace by Ocean Boulevard, and CityPlace has come under attack by designers for its look.
But The Promenade projects underwent an extensive design review process from the newly created Redevelopment Agency Design Review Committee, and were scrutinized by the Long Beach Design Forum, a group of area architects who meet regularly to discuss downtown projects.
"That has helped the process," said Jonathan Glasgow of Belmont Shore architecture firm Interstices, a member of the forum and designer of both the Kress and Walker Building projects on Pine Avenue. "There's definitely a drastic improvement over the architecture of, say, CityPlace."
Glasgow likes the look of the The Promenade projects because of complementary elements, such as landscape, design and lighting.
"This creates a linkage between the north end of Promenade and CityPlace and the whole Promenade district and Pine Avenue," he said.
Lyon Realty Advisers Inc.'s three-structure project at Third Street and The Promenade is scheduled for civic approval in March. Yearlong construction is expected to begin by summer's end.
Developers say they expect to start leasing the 104 loft-style apartments in summer 2006. Units range from 724 to 1,255 square feet. Rents have not been set.
The project includes 12,000 feet of retail space — for one to three tenants — and a 390-stall parking garage.
"We're trying to incorporate the loft-style building into the exterior facade of the project," said Eric Donnelly, Lyon's vice president of construction.
Construction on Lennar Homes of California's project at Broadway and First is set to begin in November. Developers say they anticipate design approval by March.
"We're looking at between a 16- and 18-month build time," said Donna Kelly of Lennar.
The Promenade Condominiums will feature 62 town homes ranging in size from 717 to 2,169 square feet and flats in a new 5-story building, plus 5,100 square feet of ground floor retail space.
Prices have yet to be set for units in the contemporary architecture project, which includes 146 spaces of street-level and subterranean parking.
The hotel question
When? That's a question developers of the D'Orsay Embassy Suites are often asked.
The much talked-about hotel project promised to bring an 11-story executive-suite hotel plus retail space to The Promenade. Three fewer stories and several redesigns later, developers are taking what they hope will be the final plans for the hotel to the Redevelopment Board Agency meeting today.
The project was first proposed in 1998, but financial difficulties and design issues have sidetracked its approval.
Hotel developer D'Orsay International Partners persuaded Beverly Hills-based Hilton to plant an Embassy Suites banner on the project.
That was more than two years ago.
Now that development manager Hotel Financial Strategies has scaled down the project to lower costs to bring it in line with a typical Embassy Suites look, things are looking up, said Steve Gold of Hotel Financial.
The original architects drew up an "irregular infrastructure," which confused potential contractors and resulted in higher bids than estimates called for, Gold said.
"It blew up the project, basically," Gold said. "The cost of building that hotel got way out of kilter."
Bids rose to more than $8 million over initial projections, putting project costs near $50 million, Gold said.
A new architect redesigned a shorter project with fewer rooms, reducing costs by more than $7 million, Gold said.
The result calls for a grand lobby with 30-foot ceilings and larger suites in an 8-story, 210-room hotel with 6,000 square feet of ballroom and meeting spaces, a large restaurant, a health center and 3,500 square feet of retail.
From the time the RDA gives the nod to the D'Orsay Embassy Suites, it will take about six months to break ground and another 14 months to complete, Gold said.
The look of it
The final piece to The Promenade is being assembled this week when a group of stakeholders meets to discuss visual elements, such as landscape architecture, benches, walkways, signage and lighting to connect the projects, said Jae Von Klug, the city's downtown redevelopment project officer.
While The Promenade is the last of downtown's open spaces for development, Von Klug said the city regularly gets inquiries from developers looking to reshape existing downtown structures, particularly in the East Village Arts District.
"Right now, it appears that we're a hot market," Von Klug said. "We are getting a lot of people coming through asking for assembling and tearing down blocks from Cedar to Alamitos and from Ocean all the way up to Eighth Street.
"I think we will see a lot more changes in our landscape."