Norwalk: A model for California cities
Norwalk’s long-term multi-node Economic Development Plan is a model other cities in California have come to embrace.
The bold plan was initially developed in 2017, during the mayoral tenure of Luigi Vernola. Like Norwalk, these cities are experiencing early success. However, Norwalk, like few others has greater potential as a function of their location and transportation advantage by being served by four freeways in addition to being home to Metrolink and Metro Green Line Stations. In addition, Norwalk is situated at the midpoint between Orange and Los Angeles counties. A timely effort by Norwalk’s policy makers.
The county is expected to add about 48,400 payroll jobs this year. according to the forecast. Although this represents positive news for the region, there are some indicators that show a possible slow down, both due to the rising cost of housing and population decreases. The median housing price in Los Angeles County is expected to rise from $658,339 this year and $674,463 in 2021, leaving many in the area unable to afford to continue to live here. As stated by Tyler LaFerriere, associate economist at LAEDC, “There is enough momentum in the economy to maintain moderate growth in 2020, as there was in 2019…However, there are ... headwinds in the local economy to prevent a significant increase in growth, such as housing prices and population decline.”
Given this news it has become even more important for local government to find ways to continue to attract business and development in their city. It has become quite competitive for many cities who struggle to gain interest from developers. Some cities have resorted to cohorts with other cities to try and find solutions. This has spread to a variety of cities across state lines – all trying to find ways to continue development and job growth in their city.
In Norwalk, there has been a strategic method to develop previously vacant land in order to attract these businesses to ensure a robust local economy and job creation. In 2017, the Norwalk city council in a united effort approved the Fitness Village that includes a 37,000 square foot gym (LA Fitness) and two drive through food establishments (Chick-Fil-A and Panera Bread), along with other shops coming in. The City is also preparing for private development at the 51-acre Tank Farm. Norwalk has plans to purchase the property and has set aside $3 million from a 2005 former redevelopment agency bond that could be used as a nonrefundable deposit or to help with the planning processes. Not to mention the 35-acres that is in the process of being transferred from the state to the city. These efforts ensure that cities like Norwalk remain competitive and ensure job creation for the local population.
Housing shortage is becoming a big issue in Los Angeles county. The shortage is driving high costs and should be grounds for grave concern regarding sustainable economic growth. It is primarily for this reason that municipalities in the county need aggressive strategies to ensure the sustainability of their tax base to ensure city services are not affected. Norwalk may be the model to pursue when it comes to maintaining a robust local economy.
Dr. David Gonzalez, Jr. is Assistant Professor of Public Administration and Organizational Leadership at Brandman University