Confronting Hardship in Santa Ana: Establishing an East-West Redevelopment Corridor
Written with Ellen Chen, for City & Regional Planning 113A, Economic Analysis for Planning, August 2006
We are proposing one possible solution to curtail crushing hardship in Santa Ana. Our policy is intended to provide the structural means that would allow residents to participate in making Santa Ana economically sustainable; in many ways, we contest that only be investing in the current population can we achieve this end.
Our plan is to keep the community intact by limiting structure demolition, human displacement, and the unnecessary infusion of incompatible communities into the existing socioeconomic fabric.
This is not revitalization: we are not resurrecting a lifeless community;
This is not rehabilitation or renovation: the fix is meant to be permanent and not simply a facelift;
This is a rejuvenation campaign: to breathe life in those communities which have been neglected.
Current Policies
Much of the landscape in Santa Ana is the work of a phase of rapid development from the 1940s up until the 1980s. At that point, the city underwent an unforeseen, accelerated population growth that produced a scenario whereby the number of workers in the city far exceeded the number of jobs available; more than anything, an intense period of immigration from Latin America and Asia introduced new populations that exhausted lands as well as employment opportunities in the city.
By the early 1990s, policies were implemented in an effort to curb economic stagnation as the rest of Orange County outpaced Santa Ana. This did not go unnoticed by state and federal officials, each contributing efforts towards stimulating Santa Ana’s economy. In 1993, 7,100 acres of industrial and commercial lands in Santa Ana were designated as Enterprise Zones (EZ) by the State of California. In 1999, the federal government stepped in and initiated the start of a 10-year agreement, whereby 3.9 square miles in Santa Ana- across four communities- were designated as Federal Empowerment Zones (SAEZ). These policies allocated for businesses located, or expanding into, the region to receive aid through government funding, tax and other monetary incentives.
While the EZ blanketed a sizeable portion of the city with economic incentives for businesses, it did so primarily along city zoning ordinances. The selection of the four federal empowerment zones, meanwhile, took into account socioeconomic conditions by targeting areas with extreme poverty and higher than usual minority populations. The latter’s consideration is a particularly important topic for discussion, as 1997 figures show that only 1/3 of firms in Santa Ana were owned by minorities in spite of Hispanics, Asians, and Blacks constituting 88% of the overall population. The SAEZ, itself, is inhabited by 55,000 residents, of whom 96% are Latino and 98% are minorities. The institution of this zoning was influential in that it was an indicator of increased awareness by outside agencies that the situation in Santa Ana was not purely along economic lines, but social ones as well. However, upon analyzing city zoning ordinances, most of these neighborhoods had already been zoned for housing. While there were opportunities for business start-ups when the SAEZ was first implemented, there are virtually no vacant lots left, nowhere to build except by tearing down existing structures. Eight years into the proposal, the plan has become outdated. Conceptually, the SAEZ opened a new chapter in Santa Ana planning policy. In practice, the proposal fell short of its promise of sustainability.
What is unfortunate is that Santa Ana’s planning department, specifically the Community Redevelopment Agency (CRA), has failed to carry on the standards espoused by the SAEZ. Working with private investors, CRA has sited most of its redevelopment projects along more exposed communities (located in close proximity to freeways) on the northern, eastern, and southern peripheries of the city, regions where direct economic impact least affects low-income residents concentrated in West and Central Santa Ana. (Image 1) This accessibility makes these lands attractive to potential inhabitants (and employers) who work (and employ workers from) elsewhere, but find the location convenient. The nature of these developments corroborates with this assessment. The language of literature released by the CRA suggests intent to attract middle-to-upper income populations to the city and outside major corporations, effectively pricing out city residents on the possibility of benefiting directly from the developments. (Image 2) In an effort to build a stronger tax base, per city policy, the impoverished have been left to languish in select quarters of severe hardship.
Mapping Hardship in Santa Ana
Santa Ana is situated at the heart of Orange County. It is the physical, administrative, and judicial center of the 9th largest county in the nation. Five highways are directly accessible, Santa Ana is home to a major Amtrak station, city residents are the biggest users of county bus transit lines, and John Wayne Airport is located two miles to the southeast of the city. The city limits of Santa Ana are unique in that it is bound on each side by physical markers: the I-405 freeway to the south, the 55 freeway to the east, the I-5 and 22 freeways to the north, and the Santa Ana River to the west.
In the city itself, there is a significant degree of internal, spatial separation between economic classes in Santa Ana. In looking at the geography of Santa Ana and 2000 census data, it is possible to generalize conditions in specific regions with relative accuracy. As alluded to earlier, exposed communities (heretofore impacted periphery) are more affluent, have higher education attainment, and more likely to be White (as compared to other communities in Santa Ana). Concentrations of poverty and hardship (heretofore impacted core) are situated in the western half of the city and confined to a central core region. (Image 3) Although these regions are not defined by physical indicators as the city boundaries, the differences are striking, evident at the ground level.
Additional analysis into the impacted core is worth mentioning. These communities constitute a majority of land in Santa Ana, and the significant majority of the population.
Table 1.1 illustrates some key points. The Latino population and adults with high school diplomas are noticeably higher and lower, respectively, than city averages. This is representative of the fact that some communities are especially concentrated with certain populations, shown as a wider, weighted range of percentages. The last two entries in Table 1.1 are indicative of statistics that, though higher than city averages, are indicative of more citywide problems but not necessarily applicable to all communities. For example, given that the national average for individuals living in poverty is 12.4%, the majority of census tracts in the impacted periphery are actually faring better than the nation- and exhibits trends closer to affluent Irvine- than the impacted core, where 32 of 36 census tracts have rates between 16.0%-38.5% and, therefore, more representative of Santa Ana as a whole. In working towards public policy, it is vital to understand that in addressing the issue of hardship, we must do so with recognition that these problems do not reflect the entire city.
Opportunities Abroad, Potential from Within
Santa Ana is an international city that fails to be a major regional economic power. It has a diverse population which comes from other nations to settle in the city but opt to work elsewhere. It is home to the most connected network of highways and transportation in Orange County, but is nothing more than a transit point in the regional economy. The use of the term “abroad” for this section is quite intentional. Santa Ana’s identity owes greatly immigrants from foreign lands, but these residents participate in economies outside of the city and in neighboring cities and region where the social atmosphere is a world’s apart from home in Santa Ana, and home in Mexico, Vietnam, El Salvador, etc.
Orange County’s development is operated on the suburbia model, where the automobile is the unofficial means of traveling for work and recreational purposes. This places Santa Ana’s prime location in to perspective, as it the city is located at the intersection of three major interchanges, and yet the city has failed to capitalize on its geographical advantage. (Image 4) The highways are less a means of getting into Santa Ana than a mode of passing through the city and, for residents, a means of commuting to work outside of the city. The average commute for Santa Ana residents is 27.1 minutes, with the travel time being longest in the center of the city (up to 34.1 minutes), and progressively shorter as one moves to the outer fringe neighborhoods (as low as 22 minutes). In both instances, a commute by car or public transit effectively places the location of work outside of Santa Ana. (Image 5) A survey of the location of a primary wage earner’s places of employment corroborates this hypothesis: only 27.5% of Santa Ana residents work inside of Santa Ana. (Image 6) Data indicates that 85% of workers traveled to work by car, truck, or van, while only 8.5% used public transportation. As such, the ability to travel by personal vehicles provides for the possible mobility to potentially work outside of the county; as presented in the graphic, over 30% of residents work outside of the Orange County.
This tolerance for commuting and wherewithal for traveling great distances also drives capital out from Santa Ana, including in the retail market. Using the same figures as indicators for distance thresholds, we locate potential markets for retail consumption. In particular, we will be looking at the location of shopping centers throughout Orange County, the top 25 shopping centers constituting nearly 1/6 of total retail taxable sales per annum in the county ($6 billion). There was never a doubt that these shopping centers would be located near the highways or major boulevards; as often was the case, these centers were located at major streets and directly accessible to the highway. To take this a step further, we did not dismiss the potential spending power of public transit users and, in doing so, we came up with surprising results.
First, we decided to locate regions where it would be most sensible to use public transit in Santa Ana. Our criterion was simple: owners of automobiles would not drive to their destination if it takes fifteen minutes simply to get to the nearest highway. Using this formula, we triangulated coordinates off the 22, 55, and I-405 freeway to a point in the west-central section of Santa Ana. We then predicted regions where traveling time would be comparable by bus versus an automobile that intends to access a highway, in addition to regions where money saved by using public transit would be a sizeable incentive. (Image 7)
Having diagrammed our predictions, we overlaid the six busiest bus routes in the Orange County Transportation Authority system; our predictions were confirmed. We charted the shopping centers with the greatest amount of taxable sales in the region, and found that seven out of twelve were serviced directly by the five bus lines that run through Santa Ana. (Image 8) If there was a means of capital flowing out of the city for retail spending, our analysis shows one formal way per public policy that facilitates this activity.
Our discussion on retail centers was not coincidental; it was greatly influenced by a landmark study conducted by the Washington-based, non-profit organization Social Compact, Inc. The group examined downtown Santa Ana along with neighborhoods immediately to the west and east of the Civic Center. Utilizing the DRILLDOWN methodology, the group attempts to calculate economic data by identifying hidden populations and economies through adaptive techniques that takes into consideration the unique geography and demographic of inner city neighborhoods. Their findings were significant. The study area had a population 10,000 greater than census data (to 100,000), the average household income was $62,084 ($15,000 higher than 2004 census projections), and the group estimates the informal economy of the region to be valued at $183,000,000. Notably, it is estimated that these neighborhoods spend $341 million on retail purchases, of which, $247 million are spent outside of these neighborhoods; the findings did not specify the details as to where these transactions took place. All things considered, this study serves two important functions: (1) it can be used by the Chamber of Commerce to attract business ventures; and (2) it serves as a yardstick for evaluating potential economic opportunities hitherto un-quantified in other regions of Santa Ana. “This validates what we have known for some time. Using the information in the DRILLDOWN report, I hope we will attract even more retail businesses and investment within Santa Ana,” remarks Mayor Miguel Pulido.
Santa Ana as an Investment Opportunity
Looks can be deceiving. Social Compact’s report brought light on the issue of undocumented residents by showing a discrepancy in the census data and, in the process, measured the sum of theirs and neighborhood residents to the tune of a $183 million informal economy. Likewise, we can look at the housing and employment picture as having potential, brushing aside the unseemly topics of overcrowding and impacts of global economic restructuring on local residents for just one second.
There is a high demand for housing. With a 2% city vacancy rate, new housing developments would prove to be a lucrative proposition. From the city’s viewpoint, policy allowing for new housing is a worthy and just proposition, in the continued efforts to alleviate overcrowding. However, the disappearance of open lands and nonexistent new housing structures are indicative of the high barriers of investment in Santa Ana. The difficulty also lies in the precarious nature of Santa Ana’s social climate: new housing should be inclusive, it should not significantly raise land values (rent), and it should be mindful of current populations. Recent proposals approved by CRA have re-opened a new phase of housing developments in Santa Ana. Unfortunately, these proposals have progressed unimpeded, for they have effectively sidled issues mentioned above by situating themselves in more accepting communities, almost exclusively in the impacted periphery; meanwhile, the housing situation in the impacted core remains at a standstill. Given a conscientious team of affordable housing (re)developers, there is enormous investment potential.
A study by joint scholars from the University of California, Irvine and the University of California, Los Angeles sought to quantify employment patterns for four categories of women in Orange County: undocumented Latina immigrants (ULI), legal Latina immigrants, Latina citizens, and non-Hispanic Whites. They found that nearly 16% of ULI were unemployed, significantly greater than male counterparts and far above the city unemployment rate. In searching for occupations, ULI were employed in only eight job categories, much fewer than documented Latinas and Anglo women. The majority of ULIs hold service jobs (58%), most often working as waitresses, hotel maids, and kitchen workers. Other significant sectors of work include sales (10%), clerical work (9%), and precision production work (9%). Assuming that the proportion of ULI to overall Latina at 20% is representative of the population in Santa Ana, there are as many as 4,000 ULI residents currently seeking jobs. By categorizing demand for employment along key populations in the process of creating new spaces zoned for commercial and industrial activities, Santa Ana can recalibrate its employment opportunities to better reflect the demands of its population. By doing so, it helps alleviate the pressures associated with occupation stability and is an effective means of combating the notion of making ends meet- a central tenet in the discourse on hardship. In terms of business economics, 4,000 and 23,000 available workers are very attractive figures.
Among other things, job creation will cause a geographical shift of resident employment outside of the city, and circulating this labor (while creating new ones) back inside Santa Ana. The shift will allow for capital flow presently lost to outside regions to be redistributed within the city: investment recapitulates investment. However, by concentrating business activities back into Santa Ana, there is the strong likelihood that traffic congestion will deepen. From the city planner’s perspective, the biggest challenge here is negotiating space that is able to handle excess populations while maintaining the integrity of current neighborhoods; in short, it is creating a corridor that will facilitate movement (capital and physical) into the terminal point Santa Ana.
Opening a Second Front
Our proposal calls for the establishment of an East-West redevelopment corridor. A second look at our impacted periphery model shows that the term is loosely phrased- it is less a periphery than a North-South neighborhood concentration. In chronicling development projects outlined by the CRA, this orientation prevails once again. A newly-minted $1 billion light rail line project has been approved that will run from Santa Ana College to John Wayne Airport; in essence, it is the creation of a line that will run down Bristol Street southbound down the eastern heart of the city and reinforces the current pattern of development. In achieving our aims, we seek to diffuse specific regions centralizing economic activities and place them in areas of disinvestment. This matter does not concern shifting supremacy of one location within Santa Ana to the next; rather, it focuses on making Santa Ana, itself, the primary location, as a viable destination capable of supporting populations of consumption and employment. In order to accomplish these goals, it is necessary to look beyond exposed communities and to expose neglected communities to the regional economy.
Our search was operated on the goal of creating anchor communities. We hope that these redevelopment projects will serve as case-studies as indicators for potential growth in these regions. Both sites, Project Proposal Site A (corresponds to SAEZ 3, or Census Tract 744.03) and Project Proposal Site B (SAEZ 4, or Census Tract 748.02), fall under the federal empowerment zones. (Images 9, 10, 11) As empowerment zone neighborhoods, there are business incentives in place that makes these areas attractive for investors; there is no need for new economic zoning policies. In addition, these sites serve a secondary purpose: it establishes an inroad to spur investment in communities with demonstrated need for aid. PPSA and PPSB were selected with regards to establishment of the corridor; the other two SAEZ sites are entrenched in the downtown district and, as such, would be inadequate indicator regions for predicting and measuring project success.
PPSA is our case-study anchor community for the west corridor. It is bordered by two major roads: Fifth Street, which leads into the downtown area, and Fairview Street, which runs north-south along the city’s western boundary. Of particular interest is PPSA’s geographical relationship to nearby cities, all of which are located on the opposite side of the Santa Ana River. The site is located outside the range of major retail centers. Supporting commercial ventures and tracking the outcome of these investments will offer an important gauge by metering the strength of the region’s retail market. We are equally interested in the retail demand by local populations, as well as that population outside of the city. As the area is not directly accessibly by highway, we will examine the feasibility of transit-oriented developments in Santa Ana.
PPSB is our anchor community for the east corridor. While much of eastern Santa Ana has undergone recent development, economic activity in this tract has lagged behind, making this the lone eastern tract that qualifies under our impact core definition. Much of the lands has apparently benefited from the SAEZ designation and can be seen across an industrial landscape; the site, however, consists of an unusually low concentration of housing units. One large plot of land remains. It is located one block to the west of one of the city’s five public high schools, and should prove to be a worthwhile case-study. Our intent is to have mixed-used lands that combine retail stores and affordable housing. Housing is essential in order for this community to become self-supporting. We believe this neighborhood should not fall victim to CRA interests and we consider our design to be a bastion against the disturbing trend of high end housing for populations not indigenous to Santa Ana. In creating this corridor, low-income residents will have access to markets south of the city such as Tustin and Irvine. Conversely, outside residents will have access to businesses in this community, as it is easily accessible from the highway. Given this important geography, success in this tract will be gauged by how well the developments are integrated in the existing community, and to what extent commercial activities attract consumers from areas in surrounding neighborhoods.
Underlying these discussions is a conscious attempt at confronting social issues. We have refrained from delving into sociological concerns, seeing how this is an economics course in the city planning department, but it is important in our estimation to create a platform that takes into consideration the short term, as well as the long term social and economic ramifications. The provision of affordable housing units to be built is essential in allowing residents from all income brackets to have access to good housing. Not only are we advocating for affordable housing, but we are explicitly seeking the building of condominiums, in an effort to increase homeownership rates in Santa Ana, homeownership being an avenue of getting out of poverty. Also, the SAEZ is unique in that the demographics of these districts more closely resemble those residents who rely on city public services. As a whole, the SAEZ is home to 98% of minority residents and given the creation of new retail and office spaces in the neighborhood, the threshold is lowered for minority residents to create new businesses and work towards decreased dependence on unresponsive employment and greater control in personal finances. In essence, it’s the creation of a more stable population that is self-supporting, independent, and provides a better opportunity towards creating a sustainable economy.
Towards a Sustainable Future
We submit our proposal not as a solution to end all problems in Santa Ana, but as a set of alternatives that will serve as indicators for future success. It must be on these terms, as it follows a set of discourse specific to Santa Ana, and the reality of what is being confronted in Santa Ana is unique to this city. Our proposal is not particularly innovative, but offers a different approach towards addressing the social and economic issues that dominates the political climate in Santa Ana. We are cautiously optimistic in our outlook for Santa Ana. There is no reason why the city cannot be a major economic center. The infrastructure is in place, it’s simply a matter matching population potential with economic potential. Investing in high-end, high rise condominiums is not necessary; investing in the low-income population is essential. The city will never become economically sustainable if it has to continually support an underproductive, majority population.