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BY BRIAN HEWS
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%.
Cerritos Auto Mall doesn’t have the cars the buyers want: Cadillacs, Mercedes, Tesla, BMW, Maserati, Astron Martin, or Rolls Royce.
Nordstrom is a disaster in the Los Cerritos mall, it’s like having two Sears, and that mall is always under construction. Bring in an old Bullock’s, Fry’s Electronics, Ikea, people will start shopping here.
Cerritos Towne Center is become a real dump. It’s become a homeless hang out for the RV campers, Plus the restaurants are not what people want. Maintenance is nothing, compared to the Long Beach Towne Center, which is clean. Bring back some steakhouses,chicken restaurants, mall will start to get busy. HomeGoods is not going to work in this city, residents are too frugal. Mall needs: Morton and Lawry Prime Rib and Steak houses.
The region is still boycotting Cerritos and they’re going shopping at South Coast Plaza.
Real estate sales are not strong in the Cerritos, e don’t have a diversified stock, and home prices are cheap here, compared to North Downey, Rossmoor, Lakewood Village, Seal Beach, El Dorado Park Estates, and Long Beach Park Estates / Naples. Bring in some good Builders to the area such as Toll Brothers, and start seeing more buyers return to Cerritos. The heartland of America is always going to boycott the ABCUSD, plus Cerritos housing stock is not clean anymore. Buyers are going to be scared off by a potential school bond, we already have two School Bonds in place on our property taxes, and they don’t want a third Bond. Buyers do not want to get involved with all that disaster tree trespassing stories throughout the city. Cerritos has turned their thumbs down on RVs, so people are going elsewhere, if they want to buy an RV lot, Cerritos does have RV lots, but the current Administration is not favorable for RV consumer. Most of the city staffers have RV’s and have moved to Huntington Beach- Yorba Linda, both RV friendly.
All court BK filing are rising across the nation. Houses are taking long to sale, so the inventory of vacant homes are increasing. Contractors are leaving the flipping market. Cerritos warehouse-industrial vacancy rate is rising.
Scott, Cerritos Chamber, we are better then the national numbers, but we can be better, if the city had more equal diversity and we as a city, need to clean up our act, we are not aging with maturity, compared to many residents which are fleeing to Huntington, Irvine and Yorba Linda.
https://www.loscerritosnews.net/2018/08/09/cerritos-economic-engine-sputters-auto-square-and-los-cerritos-center-sales-decline/
Cerritos Chamber of Commerce and the city council, has to remember, many businesses have been whitewashed out of Cerritos, because the lack of diversity. Cerritos is no longer about: Heartland of America, it’s more or less about Asia and the Pacific countries. Drive the residential streets, it is about atonement to their china.
Also, Los Angeles/ Orange County has always been split on sales tax, and it’s even more deeply divided today. Cerritos Regional shoppers, can drive five minutes into Orange County and save 1%-3% on sales tax, big chunk, especially high-end ticket items.
Yorba Linda Home Depot at Savia, has stolen most of the Cerritos Regional Buyers, better store, better inventory and couple of percentages cheaper sales tax.
Just look at many of our shopping malls, industrial parks to the north, businesses have been whitewashed away from Cerritos; because of the lack of equal diversity and burdened with above-average sales taxes. Many industrial parks to the north, are over seasoned and not weathering, they are just too over-seasoned, need of major tune-ups, and there needs to be a lot of gentrification by the city of Cerritos.