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The Summer 2018 Cerritos Quarterly Economic Profile, an exhaustive study by Cerritos’ Advanced Planning Department, reports that the Cerritos economic engine slowed once again in the first quarter of 2018, reporting $5.890 million in sales tax a decrease of over $537,000 or 8.4%.

The decrease was attributed to a “slight reduction” in sales at the Cerritos Auto Square (CAS).

The statistical data behind the report is compiled from a wide variety of sources, including Cerritos’ Finance Division, the California Employment Development Department, and several real estate publications.

Overall from 2013 to 2017, total annual sales tax revenue has grown $5.1 million from $23 million to $28.1 million.

For the first quarter 2018, the CAS generated the greatest amount of sales tax at $3.2 million, compared to $3.6 million in 2017, a worrisome 11.7% decrease.

The City is able to secure second quarter results from the CAS, unlike some other sales tax categories in the report.

The decrease has continued, though only slightly, with second quarter 2018 sales at 14,188 cars , as compared to 15,025 in 2017, a decrease of 962 cars, or 10.7%.

It is a three-year downward trend for the CAS. In the first quarter of 2016, the CAS sold 15,563 cars; in 2017 Q-1, 15,025 cars; and in 2018 Q-1, 13,407 cars, a decrease of 2,156 from 2016-’18.

The Los Cerritos Center (LCC) was second in sales tax, but revenue dropped $249,000, a massive 25%, from $ 977,000 to $728,000. That drop is likely attributed to online shopping and the monster that is known as Amazon.

The Cerritos Industrial Park was the third highest sales tax generator, contributing over $519,000 in revenue, a 4.9% decrease over last year.

In the first two months of the second quarter of 2018, TOT, which is 12% of the room rate charged by a hotel operator in the City, generated over $196,000 versus $211,000 in 2017, a 7.3% increase from the same period last year.

Also, in a sign of future activity, the city issued 1,104 new and renewal business licenses generating over $320,000 in fees for the general fund, an increase of 6.6%.

Cerritos homeowners will be happy to know that the second quarter average for single-family three and four-bedroom dwellings in the City was over $743,000; three-bedroom average was $684,000; four-bedroom average was $774,000.

Comparing houses housing prices regionally, Cerritos homeowners enjoy a substantial positive gap from comparable cities such as Cypress, Glendora, Lakewood, and Downey.

Cypress values sit at $693,000, Glendora $623,000, Lakewood $582,000, Downey $575,000.

Similar to housing prices,  the City “continues to experience a significant increase in commercial development, with new businesses opening in the City and commercial property owners continuing to invest in the renovation of existing shopping centers, providing the City with future additional sales tax revenue.”

HomeGoods will take over the old Golfsmith building offering kitchen essentials, lighting, bedding, bath and other home furnishings. It is anticipated that construction will be completed soon, with a potential store opening in August 2018.

The Lincoln Station Shopping Center is entering Phase III, with Blooming Asian Fusion Cuisine and other in-line stores being upgraded to a more contemporary design. The final phases of construction are scheduled to be completed by November 2018.

The Penske Jaguar/Land Rover of Cerritos dealership, located at 10861 183rd Street will be renovated, including a minor expansion of the showroom . Construction is scheduled to begin in May 2018 and is anticipated to be completed by the first quarter of 2019.

The Sheraton Cerritos Hotel is under renovated. The current registration counter will be removed and new reception host stands will be erected. The bar and restaurant will feature a new configuration that extends to the exterior patio, which will house new steel shade structures.

The Chipotle Mexican Grill will soon replace Red Chile Mexican Restaurant at 10826 Alondra Boulevard, adjacent to Staples, in the College Square shopping center. It is anticipated that construction will be completed by August 2018.

Eureka American Restaurant will join Frida Mexican Cuisine in the former EI Torito Restaurant location, it is scheduled to open in September.

In July 2016, the Cerritos City Council approved a proposal to reuse an existing building located at 17900 Crusader Avenue for Great Value Storage and supplemental auto storage for new vehicles.

Phase III of the master plan of development for the Valley Christian School campus is underway which includes the addition of a new gymnasium building, two metal bus office and maintenance buildings, and modular restrooms.

Finally, Aria luxury apartments is reporting 185 of the 197 units under lease, amounting to a total occupancy of 94%. Sage luxury apartments is reporting occupancy of over 70%.

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