redevelopment reality

Culver City makes the news again. If you build it, they will come but some will be forced to go.

Businesses pinched as commercial rents soar in Southland
Roger Vincent, LA Times, 3/10/07

Higher rents also are the result of economic redevelopment that is transforming some neighborhoods into more upscale shopping and entertainment venues. The waves of change that swept through Santa Monica and Old Pasadena years ago are now being felt in other older districts such as Hollywood, Culver City, Alhambra and downtown Los Angeles.

Shopkeepers in many of these changing retail districts are feeling pinched.

Even though the family-style Italian fare at Jay Handal's San Gennaro Cafe made it one of the most popular restaurants in Culver City, Handal shut down the eatery a few months ago when his landlord nearly tripled the rent as his lease expired.

"I couldn't afford it," he said.

Moving into San Gennaro's space will be a more upscale, all-organic restaurant run by celebrity caterer Akasha Richmond.

There is going to be an attrition factor," said Handal, who also operates a restaurant in Brentwood. "Small business today is being squeezed out of the market. You're not going to have many family-friendly community restaurants — only big guys with deep pockets.

In Culver City, the city spent more than $60 million over the last decade on public improvements largely intended to attract new restaurants and businesses, said Kellee Fritzal, economic development administrator.

The plan appears to have worked. Demand among merchants is high enough that average store rents have jumped from $1.85 per square foot per month to $4.50 in the last three years.