Westminster City Council
SUBJECT
Title
Discussion of a Proposed Vacant Commercial Property Ordinance.
End
From: Steven Mendoza, Interim Community Development Director
Requested by: Council Member Carlos Manzo, District 2
Prepared by*: Steven Mendoza, Interim Community Development Director
*Staff reports prepared by staff on behalf of members of the City Council do not reflect the opinions of staff and are generated in collaboration with the requesting council member(s).
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RECOMMENDED ACTION
Recommendation
Consider the conceptual framework of a Vacant Commercial Property Ordinance and direct staff accordingly.
end
BACKGROUND
At the Regular City Council Meeting of August 28, 2024, Council Member Manzo received support from a majority of the council members to agendize an item for a future meeting date to discuss the conceptual framework of a vacant property ordinance. Council Member Manzo stated city beautification to improve residents’ quality of life is directly related to attracting businesses and developers.
Currently, vacant commercial properties and storefronts exist throughout Westminster. Although these properties vary in size, each represents a potential source of blight and may pose safety risks and contribute to increased crime and community neglect. Vacant and abandoned properties (residential, commercial, or industrial) can quickly become a source of blight if not properly maintained. Even a single unmaintained building may attract vandalism, unauthorized activity, and general deterioration, impacting the surrounding neighborhood and property values. To help preserve community safety, appearance, and economic vitality, the Community Development team has been researching ordinances that required vacant property registration.
Allowing properties to sit in a state of vacancy for prolonged periods without any action on the part of the property owner to improve the property is a detriment to the wellbeing of the City. The Code Enforcement team has discovered 17 vacant lots and 109 vacant commercial storefronts.
Analysis
Cities around Southern California have approved vacant property policies and programs to implement strategies to address this issue. Research identified several effective models currently in place in Alhambra, Santa Monica, Gardena, Whittier, La Mirada, Artesia, Norwalk, Pomona, Pasadena, Torrance, and Baldwin Park. Some of the programs are very complex and some are simplistic in their implementation.
Such programs are intended to maintain clean, safe, and visually appealing commercial areas, regardless of whether properties are occupied or temporarily vacant. Key components of these programs are as follows:
• Requires owners of vacant properties and storefronts to register their properties with the City annually, including a fee.
• Establishes clear standards for property maintenance and security.
• Requires appropriate fencing for larger vacant parcels (with size thresholds to be determined).
• Requires activation of vacant storefront windows to maintain an active and attractive streetscape.
• Provides Code Enforcement staff with reliable and up-to-date contact information for property owners to facilitate education and compliance with the City’s property maintenance standards.
• Supplies the City’s Economic Development team with contact information for property owners to support leasing, redevelopment, and investment opportunities.
Such a program can strengthen communication between property owners and the City, reduce the anonymity often associated with absentee ownership, and promote more responsive property management practices.
Components of Such a Program
Registration Requirements
• Vacant properties and storefronts will be investigated and, if they are deemed vacant, will be required to be registered with the City within 30 days.
• It would apply to non-residential vacant lots, properties, and storefronts.
• Vacant commercial property could be defined as an undeveloped parcel of land in a commercial or mixed used zone without any buildings on it or a building where less than thirty (30) percent of the floor area within the building has been: 1) rented to a lessee or sublessee and used by the lessee or sublessee to conduct its customary operations; 2) used by the building owner to conduct customary operations and/or unoccupied for over ninety consecutive days.
• There would be exemptions for properties under construction or seeking entitlements.
Maintenance Standards
Property owners will have to adhere to certain maintenance requirements to avoid having their vacant property contribute to blight and other issues in the community. These will include:
• Construction of fencing for vacant properties.
• Maintain landscaping and planting materials in good condition.
• Regular removal of all exterior trash, debris, and graffiti.
• Maintenance of the exterior of the building in good condition.
• Prevention of criminal activity on the premises and trespassing by unauthorized persons by ensuring that the vacant building is secured against unauthorized entry.
• Turning off utilities that are not necessary for the upkeep and maintenance of the building.
• Preserving the interior of the building from damage by the elements or plumbing leaks and keeping it free from accumulation of garbage and other debris, and from infestation by rodents, insects, or other pests.
Registration Fees
A registration fee (with an annual renewal) shall accompany the registration form. Funds derived from the fee would be used to offset the City’s cost of administration, enabling the City to recover costs associated with administering the Program, inspecting properties, and communicating information about the Program to the public.
Questions Regarding Such a Program
1. What is a Vacant Commercial Properties and Storefronts Registration Program?
The Program could address the impacts of long-term commercial vacancies. If adopted, the program would:
• Require owners of vacant non-residential properties to register with the City.
• Set minimum maintenance and safety standards, set standards for landscaping, fencing and signage. The concept is designed as a partnership: property owners would keep sites secure, maintained, and market-ready, while the City would provide resources, contacts, and guidance to help bring spaces back into productive use.
2. Why is the City considering this program?
Over the past few years, the City has made progress in blight abatement and beautification through its Strategic Plan. The City Council has identified the next step, as a Strategic Objective, to explore ways to beautify the City. Vacant buildings can lead to property decline, safety concerns, and lost economic opportunity. Programs in other California cities have reported reductions in blight, improved safety, increased leasing, and stronger business climates.
3. Why isn’t Code Enforcement enough to solve this problem?
Code Enforcement is an important tool to address violations after they occur. The proposed program would take a preventative approach by requiring regular maintenance, landscaping, fencing, signage and security measures, and communication with property owners to reduce the likelihood of issues developing. Vacant properties can generate more calls for service than occupied ones. They can generate repeated calls for services related to trespassing, vandalism, and property damage. The proposed program helps manage those demands more effectively by requiring registration which keeps contact information current and establishes a clear line of communication with property owners.
4. What impact could the proposed program have, positive or negative, on commercial real estate and business investment?
Some might wonder whether additional requirements could deter investment. The proposed program is intended to do the opposite, by helping maintain secure, well-kept, and market-ready commercial areas that appeal to investors and tenants. Investors often seek communities where commercial districts are vibrant, safe, and visually appealing. For property owners, the program would aim to help protect property value, reduce nuisance activity, and keep spaces in a condition that is easier to lease or sell. Well-maintained and secure properties may lease faster, achieve stronger lease rates, and attract higher-quality tenants. When neighboring properties are also well maintained, the entire area can become more appealing to customers, tenants, and investors, strengthening the overall business climate.
Based on City Council direction, staff will update the conceptual framework, draft a Vacant Commercial Property Ordinance, and place this item on an upcoming city council agenda which will require a public hearing.
FISCAL IMPACT
There is no fiscal impact for participating in a discussion regarding a Vacant Commercial Property Ordinance. If a Vacant Commercial Property Ordinance is adopted at a subsequent council meeting, the development of such a program will not have a direct fiscal impact if the City adopts a corresponding fee to offset costs.
LEGAL REVIEW
The City Attorney’s Office has reviewed as to form.
CONCLUSION
Vacant commercial storefronts are distributed throughout Westminster. Each vacant property represents a potential source of blight, potential safety risks, and can contribute to increased crime and vandalism. Vacancy ordinances have been adopted by cities around the southland to help alleviate these potential issues. Staff recommends that the City Council consider the conceptual framework of a Vacant Commercial Property Ordinance and provide direction to staff to bring forward a draft ordinance.
ATTACHMENTS
None.
REVIEWED BY
Erin Backs, Finance Director
City Attorney’s Office
Christine Cordon, City Manager