City officials working with property owner to revitalize Bixby Knolls Shopping Center 1


Sean Belk/Signal Tribune A building once occupied by Orchard Supply Hardware sits empty after the business closed its doors last summer. For years, the store has been a major retail anchor for the Bixby Knolls Shopping Center on Atlantic Avenue just north of San Antonio Drive, however the property owner is now working with city staff on a plan to redevelop the center and bring in new tenants.

Sean Belk/Signal Tribune

A building once occupied by Orchard Supply Hardware sits empty after the business closed its doors last summer. For years, the store has been a major retail anchor for the Bixby Knolls Shopping Center on Atlantic Avenue just north of San Antonio Drive, however the property owner is now working with city staff on a plan to redevelop the center and bring in new tenants.


Sean Belk
Staff Writer

Following the closure of longtime tenant Orchard Supply Hardware (OSH) at the Bixby Knolls Shopping Center last summer, city officials say they are now working closely with the property owner to assist in attracting new businesses and redeveloping the center located off of Atlantic Avenue, just north of San Antonio Drive.
Glendale-based GASKA Inc. is planning a $1-million façade improvement to the shopping center this year after OSH closed its doors during a company restructuring that was announced in June. The closure has added to the center’s vacancies, which also include an empty storefront between OSH and Marshalls department store, and smaller spaces that have been vacant for nearly a decade.
The hope is that the improvements will help draw the “right” retail establishments, said 8th District Long Beach Councilmember Al Austin, who lives within walking distance of the shopping center.
“The right retail establishment could transform this entire shopping center and make it more appealing for other tenants to come in here and really make it competitive,” he said. “OSH was a big loss for us, but I’m optimistic that we’ll be able to find some new tenants here in working with the GASKA owners, because they’re motivated as well.”

Sean Belk/Signal Tribune A strip of retail storefronts on the northeast portion of the Bixby Knolls Shopping Center has a number of vacancies, however the property owner hopes to turn it around by upgrading the center with $1 million in façade improvements, including resurfacing the parking lot.

Sean Belk/Signal Tribune

A strip of retail storefronts on the northeast portion of the Bixby Knolls Shopping Center has a number of vacancies, however the property owner hopes to turn it around by upgrading the center with $1 million in façade improvements, including resurfacing the parking lot.


Half of the façade-improvement project is being funded by a $500,000 matching grant the property owner received from the City’s former redevelopment agency (RDA) in a 50/50 partnership with the City, according to Seyed Jalali, project officer for the Long Beach Development Services Department.
He said the City has been working with the property owner for more than 10 years to attract new “quality tenants,” and provide financial assistance to enhance the aesthetics of the center as part of a larger strategic plan to revitalize the north Long Beach community, including the Bixby Knolls neighborhood.
GASKA entered into a financial agreement with the City’s former RDA in 2008 to receive a $3.7-million loan, amortized over 25 years at a 2-percent interest rate, in redevelopment funds. The loan, Jalali said, was used to accommodate the demolition of the former Robert’s Department Store, which had been vacant for more than 11 years, and to construct a new 43,355-square-foot retail store for the Marshalls store.
Jalali said major anchor tenants at the shopping center have also received financial incentives, including OSH, which was given a total of $372,302 in retail sales-tax incentives over a nearly 15-year period, and Vons, which has received a total of $129,834 through a similar sales-tax sharing program that sunsets on Dec. 1, 2014.
Regarding the proposed façade improvement, Jalali said city staff have been working with the property owner and their architect on finalizing the design and subsequent submittal for plan check. On Sept. 12, staff had sent correspondence to GASKA, outlining outstanding plan-check corrections, but the City has yet to receive a response, he said, adding that city staff attempted to contact the property owner’s architect this week but their office was closed for the holidays. ­
“At this time, we are awaiting GASKA’s architect/representative response to the plan-check corrections,” Jalali said. “We cannot proceed until GASKA comes back to the City with a revised plan, addressing these issues. Further, when plans are submitted, they will be checked to verify all corrections have been fully resolved.”
GASKA representatives were unable to be reached for comment before the Signal Tribune’s deadline.
Austin said he met with GASKA representatives about three weeks ago and they expressed “challenges” the center has faced throughout the years, such as the configuration of its location off of Atlantic Avenue and the lack of sufficient signage and front access for customers.
Sean Belk/Signal Tribune A vacant storefront with a "for lease" sign remains empty between Marshalls department store and the building once occupied by Orchard Supply Hardware at the Bixby Knolls Shopping Center located off of Atlantic Avenue. Property owner GASKA Inc. is moving forward with $1 million in façade improvements in hopes of drawing new tenants to fill in the empty spaces.

Sean Belk/Signal Tribune

A vacant storefront with a “for lease” sign remains empty between Marshalls department store and the building once occupied by Orchard Supply Hardware at the Bixby Knolls Shopping Center located off of Atlantic Avenue. Property owner GASKA Inc. is moving forward with $1 million in façade improvements in hopes of drawing new tenants to fill in the empty spaces.


“These are challenges that they face, and they hear from potential tenants all the time,” he said. “So we talked about some ways in which we can help possibly mitigate that.”
Austin said that redeveloping the shopping center is part of a larger plan to continue economic development in Bixby Knolls and Uptown, which is getting a new public library farther north down Atlantic Avenue. He said renderings for the proposed improvement project should be released in the next few months.
“It’s critical for the economic development to continue,” Austin said. “This center is really in the middle of it all. We have to experience a turnaround here. We’re making progress in the north, and we’re making progress in Bixby Knolls– the bookends. The GASKA property is sitting stagnant. This has to be part of that grander plan.”
Jalali noted that financial incentives are sparse after the dissolution of redevelopment agencies across the state, but city staff still have plans to find ways to continue economic development efforts.
“Obviously, there are limited financial resources due to dissolution of the agency,” he said. “However, we continue utilizing other economic development tools, namely business loans and federal grant funds, to continue the City’s commitment to business development and neighborhood revitalization efforts.” ­­


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One thought on “City officials working with property owner to revitalize Bixby Knolls Shopping Center

  • Gary Tarbell

    Crony capitalism right in your own back yard.

    You see, what happens here is that the local government taxes and regulates business like this property owner so much that they have trouble keeping full occupancy for decades.

    Then, the same local busy bodies, city council people, and other bureaucrats get worked up about the vacant storefronts. So they eventually work these deals, including giving taxpayer money to the property owner and even its tenants ostensibly to make aesthetic improvements that would draw in more business investment.

    But the problem is that the same interference that caused the lack of private investment to begin with, is what discourages shrewd investors from getting muddied up dealing with moving into areas like these. They know local government will be meddling with their businesses, so they go elsewhere.

    And you end up with only those businesses that either have the clout to move in without being pushed around, and/or the ones willing to “play ball” with local government bullies and misguided residents who think EVERYTHING is their business.

    How about a new idea proven to promote prosperity?

    How about freedom and people minding their own business?

    How about reducing the regulatory burdens and tax loads on ordinary people trying to start new businesses?

    How about NOT playing power games that only big chains can navigate?

    If you like a homogenized world where mom and pop businesses are forced out of the market in favor of national chains and franchises with less long term opportunities for their employees, then keep up what you’re already doing.

    It may not seem obvious, but small, independent businesses account for the majority of growth and wealth creation in this country.

    But when you try to micromanage every aspect of the economy and control who, what, where, and how businesses are run, you end up with perverse incentives and increased disadvantage for local investment.

    Look at the results. Look at how many storefronts are already empty on the property mentioned in the article. And they have been working these perverse deals with businesses there for many years. Yet OSH closed, even with the extra money. This is not in spite of local government meddling and tax subsidy, it is BECAUSE of local government meddling and subsidy.

    Leave people alone and let them pursue their dreams the way they want. Lose your naive belief that attempts to control people result in the vision you desire.

    Embrace freedom and we all benefit.