Melissa Giaimo
Assistant Perspectives Editor
The unpretentiousness of Malibu surprises visitors anticipating glamour and sophistication. It’s no accident that Malibu is not another glitzy Laguna Beach. Since the first celebrities moved in during the 1930s, the city of Malibu has striven to be a refuge from intense, fashionable Los Angeles. But almost 80 years later, it may be impossible for Malibu to preserve its feel of small-town life while satisfying the consumer demands of its wealthy residents.
“[Malibu is] caught in a time warp of people who want to think of it as a beach retreat,” said Steve Wahlstrom, author of the economic growth plan for Malibu, according to the Los Angeles Business Journal in October of 2002.
Slow-growth-or-no-growth zealots committed to preserving the community’s small-town feel and developers committed to expansion by building and selling real-estate divide Malibu.
“[The two groups] clash constantly in the city council meetings and their enmity is as acrid as the loathing that liberal Democrats feel for southern Dixiecrats,” wrote Malibu local Charles Marowitz in an essay.
Malibu’s resistance to development began in the early 1900s when the owners of the Rancho Malibu Spanish land grant refused to permit Southern Pacific Railroad from extending its coastal line through Malibu. During the WWII era, the city blocked the county from building a freeway through Malibu and later a nuclear power plant. From 1970-1990, Malibutes’ resistance to growth became even stronger as citizens worked for environmental preservation. Most recently, Malibu has opposed development by protesting the building of a liquified natural gas station.
Exclusivity with a small-town feel has been the battle cry of Malibu residents.
But slow-growth can be problematic. Sky-rocketing housing costs, traffic and an exodus of local businesses are only some of the negative consequences ushered in by Malibu’s commitment to slow-growth.
Already high housing prices are rising radically, according to a February, 2006 article in The Malibu Times. The median-price for homes has risen from $1 million in 2000 to $2.5 million by the end of 2005. In addition to the steep price tag, houses are also scarce. Malibu grants 50 building permits each year, much fewer than in the 1980s when more than 80 homes were built per year.
Lack of affordable housing and public transportation forces Malibu’s 6,311 commuter work force, an unusually high number for a city of its size, to congest the Pacific Coast Highway and other thoroughfares, according to data collected by non-profit group Malibu Coastal Vision.
The cost of commercial rents is also increasing.
“Commercial rents have increased substantially during the past two years as a result of the lack of supply and substantial demand for commercial space,” according to the March 2000 Malibu Economic Plan.
Although Malibu controls supply through slow-growth regulations, demand for commercial space remains high. Office space now costs up to $4 per square foot in Malibu, the same price as Beverly Hills, according to Malibu Coastal Vision. Higher rents place financial pressure on retailers, pushes up the prices of goods and services and pushes out some local businesses.
The city’s isolated location, limited access to low-wage retail workers, high housing prices and poor public transportation directly affect the operation of local businesses. Combined with the rise in rents, these obstacles squelch local entrepreneurship and dissuade outside businesses from coming to Malibu.
“The real concern is that Malibu will lose its unique character, and that locally owned businesses will close and be replaced by national chain retailers,” according to the Malibu Economic plan.
Ironically, Malibu’s tradition of slow-growth may be the reason the city loses its small-town feel, if there is no economic plan to support local businesses.
That fear is already being confirmed. Multiple buildings along the Pacific Coast Highway have been placed on the market for millions. PC Greens building was listed at $14.5 million and sold to Kimco Realty Corporation and Dan Bercue for an undisclosed sum. Kimco is one of the nation’s largest owners of shopping centers. Malibu Vista, which houses Kentucky Fried Chicken, is listed for $18 million. And Malibu Plaza, home to Malibu Health Club, is has an asking price of $17 million.
High commercial rent prices hurt local business. Malibu Lumber and the Dume Room have already closed, making room for chains like Starbucks and Banana Republic.
Apparently only billionares can afford to go into business in Malibu. Oracle CEO Larry Ellison, ranked by Forbes as the 10th richest American, recently purchased Casa Malibu Inn, PierView Café, the Windsail site, in addition to 5 contiguous lots on Carbon Beach and David Foster’s house in Serra Retreat. He requested a permit to demolish the PierView and Windsail sites and rebuild two restaurants last month, according to an article in the Malibu Times in January, 2007.
“Malibu economic life is anything but stable,” notes a report prepared by the Malibu Coastal Vision. “The past years have been marked by the closing of Malibu Lumber … and the sale of the two largest shopping centers and the closing of numerous community serving businesses.”
In a recent survey conducted by Malibu Coastal Vision, residents placed “small town/rural feel” as the third most important strength of Malibu, just behind “scenic beauty” and “reputation.”
But if maintaining Malibu’s image means expelling local businesses and pushing the cost of living sky high, then the small-town feel is as fake as the facelifts of its residents. New approaches and policies for moderate, controlled growth are the way to protect Malibu’s small-town identity for years to come.
02-15-2007