Long Beach, CA
File #: 22-1252    Version: 1 Name: CD8 - Vacant Commercial Property Fee
Type: Agenda Item Status: Approved
File created: 10/14/2022 In control: City Council
On agenda: 10/18/2022 Final action: 10/18/2022
Title: Recommendation to request City Manager to work with the all appropriate departments to review the recommendations provided in the feasibility study for a Vacant Commercial Property Fee or Tax Program and return to the City Council with a plan to implement a consequent policy in 90 days.
Sponsors: COUNCILMAN AL AUSTIN, EIGHTH DISTRICT
Attachments: 1. 101822-NB-36sr.pdf
TITLE
Recommendation to request City Manager to work with the all appropriate departments to review the recommendations provided in the feasibility study for a Vacant Commercial Property Fee or Tax Program and return to the City Council with a plan to implement a consequent policy in 90 days.

DISCUSSION
In 2019, Councilman Austin and several co-authors brought forward an item requesting a feasibility study on implementing a vacant commercial property fee to address long-time vacant commercial properties throughout the City. The study, which spanned over five months and included input from the Economic Development Department, Economic Development Commission, and Downtown Long Beach Alliance (DLBA), was released on December 30, 2019. Months later, the COVID-19 pandemic derailed the momentum of this initiative, as priorities shifted toward emergency response and recovery. At the time of the report, Long Beach’s economy had grown steadily and citywide commercial real estate vacancy was historically low. However, following the pandemic, commercial vacancies remain a significant issue and previously vacant properties remain unused. As the City continues recovering from the effects of COVID-19, activation of long vacant locations could revitalize corridors in low-income communities and lead to a more equitable distribution of quality businesses throughout Long Beach.

Mechanisms to track and penalize vacant property already exist within the City of Long Beach. The Code Enforcement Bureau (CE) currently administers a Vacant Building Monitoring Program, which was established in 2016 to address chronically vacant properties. Per CE staff, properties that are part of the program pay a monthly monitoring fee of $210, charged annually, and must maintain upkeep and code compliance to avoid further charges. While the number of vacant properties has increased since 2019, a total of four properties are currently tracked by Vacant Building Monitoring Program, none of which are c...

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