Whither Whole Foods?

As recently as 10 years ago, the neighborhoods of Hollywood weren't desirable, with some of the most blighted and crime-infested streets in the entire city. Parts of East Hollywood were affected during the 1992 riots when several buildings burned to the ground. The decline had been disastrous for the area, once considered a fashionable suburb and the former home of numerous broadcast facilities and a business district that rivaled Downtown's.
Fortunately, there was hope for Hollywood. The City established two redevelopment areas in greater Hollywood and the Los Angeles County Metropolitan Transportation Authority (Metro) built the Red Line subway through the heart of the district. Sadly, Metro initially did more harm than good, as shoddy construction practices created a sink hole on Hollywood Boulevard near Barnsdall Park and caused the stars along the "Walk of Fame" to buckle.
Redevelopment efforts were tied to the new subway stations, creating the city's first truly transit-oriented districts. The most expensive and bally-hooed project, the massive Hollywood & Highland, is a retail/entertainment complex that includes a Renaissance Hotel and the Kodak Theatre (home to the Academy Awards). The center stumbled by initially orienting itself to tourists exclusively but is slowly bouncing back by offering stores for local residents such as the recently-opened Virgin Megastore.
Further east in the central district, Sunset & Vine includes a Borders Books, other shops and restaurants, and dozens of apartments. Nearby are The Dome, a retail and entertainment center built around the iconic Cinerama Dome, and the Amoeba Music superstore.
In East Hollywood, the Hollywest Promenade at Hollywood and Western includes Ralphs, Ross, several stores and restaurants, and a tower of senior apartments. Across the street, the Metro Hollywood Apartments lies atop the subway station and includes street-level retail. A few blocks away, the Views at 270 project brought affordable apartments and a Walgreens to a run-down property that included a porno movie theatre.
Regretably, this revitalization has entailed a degree of gentrification. The "new" Hollywood has attracted a large number of young professionals who favor walkable, transit-accessible neighborhoods (including yours truly). Rents have risen rapidly, a volatile situation evidenced by the crowds of people waiting in line to apply for the affordable units at Views at 270 last spring. While many neighborhoods are still "rough around the edges," the talk about Whole Foods speaks of a new era in Hollywood, proof to many residents that area has finally "arrived."
While the interest from chains like Whole Foods, Borders, Ralphs, and Virgin Megastore is somewhat flattering, the influx of new retailers threatens many locally-owned small businesses; to wit, the demise of Aron's Records. Urban redevelopment and "revitalization" creates negative externalities for existing residents and business owners that must be recognized and mitigated.
Having tried to explain the "why," I will move on to the question of "where." Last month I reported on the "Save the Derby" effort, which is fighting to prevent the redevelopment of the former Brown Derby restaurant at Los Feliz and Hillhurst. The following rendering of Adler Realty's proposal for the site clearly shows Whole Foods as an anchor:

Rumor has it that Whole Foods was scared away from the site after witnessing vehement opposition at a town hall meeting. If Whole Foods wants to be in Hollywood, there's a good chance the company will find another (less controversial) location.
Curbed LA reports that Whole Foods may land near Hollywood and Vine. A Red Line stop, the Pantages Theatre, Sunset & Vine, and The Dome are all nearby, and a major transit-oriented development featuring an upscale W Hotel is in the works. While this location is in a thriving area, it is not as near affluent neighborhoods as the Los Feliz site.
The second location mentioned by Curbed LA is a "hot tip" from "the guy behind the seafood counter at the Whole Foods at 3rd & Fairfax": Hollywood and Western. I happen to live very near this intersection, one of the new transit-oriented nodes developed within greater Hollywood. I doubt that the grocer will open in my neighborhood.
The only possible site for the store is the northwest corner of Hollywood and Western, which is targeted for redevelopment by the City's Community Redevelopment Agency (CRA). Here's a photo I took in June:
While the property could contain a higher-density mixed-use project with some retail, it seems too small to accomodate the parking and loading areas necessary for a large grocery store. There's already a Ralphs across the street and two other supermarkets (Food 4 Less and Farm Fresh Ranch Market) are a few blocks away. Within a mile are also a Mayfair Market and a Jons Marketplace. While each of these stores is oriented to a different clientle, economics dictate that the local market would be over-saturated if served by so many grocers.
A store at Hollywood and Western would be easily accessible to the region's wealthier residents in Los Feliz and the Hollywood Hills, an advantage over a location near Hollywood and Vine. I could be wrong on this one; it should be interesting to see how the Whole Foods saga plays out.





7 Comments:
Whole Foods is such a staple of gentrified upscale neighborhoods that it would take a completely unfixable situation to keep them out of a neighborhood they want to locate in.
The grand ave committee is, according to the last public meeting I attended, negotiating with Whole Foods to occupy the bottom of the building to be built at the corner of Olive and First. Part of phase one of the project. They mentioned Gelson's also but it seems like Whole Foods is a better fit. That means it would be open by the end of 2009.
Regarding 'gentrification', redevelopment naturally happens where the housing stock is oldest and in worst shape, neighborhoods in decline. When new housing is built it has to be at the top of the market because of the costs associated. I don't think there is any way around this right now. The affordable housing that is being included in such projects is artificially created and supported by the builders, who pass the cost on to their other customers. The housing in this category has to be 'protected' in some way to keep it from becoming 'market-rate'. How is this accomplished? How is an ongoing financial sink hole within the project going to be paid for? Can it possibly make up for the housing that is lost to begin with?
Maybe gentrification is not such a bad thing. It is seen as a bad thing right now because we are all watching the beginning of a big re-adjustment of the city plan and many people will be displaced. But where are they going? Just up from these neighborhoods being rebuilt is the aging housing stock filling the valleys and other suburbs with the ranch styles most of us grew up in. This is the affordable housing of the future. Small homes on small lots built between 40 and 80 years ago. The question, then, is how will these homes be occupied? Will we see multiple families sharing? Will we see 'gramma' additions to garages and houses. Will we see zoning changed to allow backyards to be made into apartments?
You can't build high-density affordable housing and maintain health and safety that we, rightly, demand. So where are the millions of people who don't make upwards of $100,000 a year going to live? In housing that already exists, or under the bridge? It is an interesting question
Mike at Franklin Avenue discussed the Whole Foods question in a post early this morning:
L.A. Bits
Mike has heard that Whole Foods is considering a vacant site at Hollywood and Garfield, one block west of Western (and the property I discussed in my post).
Happy Thanksgiving Mitch!
Hey Mitch -- thanks for the mention of Franklin Avenue. I re-wrote the section of that post in order to make it more clear, and also link to your post. Indeed, I think the Panorama building site was the original spot -- but that Whole Foods decided that part of Hollywood wasn't gentrified enough. I still think there's a real possibility they could take over that aging Albertsons on Hillhurst -- it's literally steps away from the Derby location. And that Albertsons is horrible; perhaps they'd be willing to cut it loose.
I remember not being too impressed with Hollywood when I visited there almost 6 years ago. Perhaps I was let down because the media always portrays it as a glamourous place to live, and it seemed anything but to me.
I really do like upscale grocery stores... in the Twin Cities we have Byerly's and Lund's, and for some reason it's really fun to do grocery shopping in a store with carpetted floors, wooden shelving, chandeliers, and the like. It makes doing mundane chores likeable.
I really don't know much about the Hollywood Area, but I've done some reading about a big complex called Hollywood & Highland and how it is struggling. Is it a mall with regular anchor positions? A classy grocery store might be what they should consider. Again, I don't know much, and perhaps it wouldn't fit with the way they are trying to position the complex. Just a thought.
Hollywood and Highland is in the prime tourist area of Hollywood. In fact, Grauman's Chinese Theatre, probably the number tourist attraction in Hollywood proper, is part of it. (The mall was built around it.) While there are many upscale residents nearby in the Hollywood hills, and plenty of parking, Hollywood and Highland really doesn't feel like a mall for locals, but one for tourists. THere are standard mall stores in it, (Victoria's Secret, Brookstone, a food court) plus some higher-end places like jewelry stores,Bebe and Ann Taylor, (and restaurants) but their customer base is overwhelmingly tourists, with probably a few locals mixed in. Certainly not enough space for a grocery store. The only larger space was recently taken over by Virgin Megastore. The mall has been not exactly fully occupied since it opened, probably about 75% full, with a few stubbornly empty spots. But it seems to be doing somewhat okay following a recent change in ownership, with a recent small remodeling (new escalators) and some new tenants like the culty "Beard Papa" cream puff store.
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