The City of Whittier, like many cities in Southern California and throughout the nation, has suffered from the slow economy. According to HdL, the City’s contracted property and sales tax analysis vendor, “most economists believe that the recession will not bottom out until late 2009 and significant recovery will not occur before 2011/2012.” Fortunately, the City has been prudent and was able to adopt a balanced budget for Fiscal Year 2009-2010 through budget cuts, the use of reserves, and revenue enhancements.

The City is committed to proactive economic development and has had many accomplishments related to economic development activities in recent years. However, the current local, state and national economies are negatively affecting our business community. The majority of small businesses are struggling to make ends meet and the larger businesses are experiencing a decline in sales. Earlier this year, the City Council directed staff to develop a Local Economic Stimulus and Business Assistance Plan (Plan) to help stimulate the local economy and help businesses survive during the recession.

The Plan includes nine economic development activities. Some of the activities are temporary for the 2009-2010 fiscal year only—July 1, 2009 through June 30, 2010—to immediately assist businesses save money. Some programs in the Plan are new and will be on-going such as the Storefront Glass Replacement Program within Uptown Whittier which will help storefront retail businesses as well the overall improvement and elimination of blight in Uptown. For complete details on the Local Stimulus and Business Assistance Plan, click here.

The City Council adopted a new specific plan for Uptown Whittier in the fall of 2008, and it is expected to bring new life to the business district with its updated zoning regulations and City infrastructure improvements such as a new “park once” plan. Despite the current economic down turn, there is an increased awareness of the potential for economic development as evidenced by the continued private investment in the area. Presbyterian Intercommunity Hospital recently purchased the building at the northwest corner of Greenleaf Avenue and Bailey and will relocate 150 to 200 administrative and clerical staff to Uptown by early next year. The PIH move into Uptown is the first major project since the adoption of the Uptown Specific Plan last fall.

The City is moving forward with the next steps to consider drilling for oil in the Whittier hills. An environmental impact report (EIR) will begin this summer and will analyze all potential impacts to the natural environment including noise, traffic, aesthetics, water issues, etc. The report is expected to be completed within a year (summer 2010). While oil prices tend to fluctuate, the Council recognizes oil as a commodity that may help secure a better future for Whittier. It is believed that significant quantities of oil may still be extracted and produce significant revenue for the City of Whittier and its residents. It is estimated that the income to the City might be between $2 million and $10 million per year for perhaps as long as 50 years.

Recently, the City received encouraging news with regard to the Fred C. Nelles site, the California youth correctional facility at 12000 Whittler Boulevard, which closed in 2004. The site, which has been under the control of a Federal Receiver, is no longer being considered for use as a prison hospital. Furthermore, the Department of Corrections and Rehabilitation has indicated they will release the site to the Department of General Services which is expected in turn to release a request for proposals for sale of the property to the public sometime this Fall (2009). The Nelles site is the last large piece of developable land in the City and would have a significant positive impact on the local economy. The City of Whittier will continue to stay involved through the process of the State releasing the Nelles property for redevelopment and community improvement.

Finally, the City of Whittier remains confident about the future of economic development activities and everyone can help. Residents who shop in Whittier can significantly impact the local economy since 1% of all sales taxes paid goes to the city to fund important services to residents including police protection and library services to name two. For more information on City initiatives and Economic Development in the City of Whittier, please call the Community Development Department at (562) 464-3380.