Susan Tellem’s most recent letter, headlined “Sharks Attacking Malibu,” is a perfect example of how little she understands significant local issues. She complains about commercial property owners “biting at the heels of long time merchants.” She attacks them for not reducing rents, which would help small local merchants. It reveals a total lack of understanding as to why commercial rents are high in Malibu, and why they’ll probably go higher still.
It’s mainly because the people of Malibu, at the time of incorporation in 1991, told the City Council then to control commercial development by implementing a restrictive Floor Area Ratio (FAR) of .15 on all commercially-zoned property. What this means, and what Susan Tellem apparently doesn’t understand, is that only 15 percent of a commercial site can be built upon, while the other 85 percent must be open space and landscaping, etc.
The rents for the buildable 15 percent will be high in order for a property owner to recoup the costs of the property. When existing leases end, rents will inevitably increase. It’s supply and demand. The city recently commissioned a detailed economic study from outside consultants. After extensive polling of local residents, the consultants commented that in order to accommodate wishes to keep rents low and keep Mom and Pop stores, it would require the city to implement a .60 FAR! This will never happen.We all want to shop at smaller local stores, but the economic realities will not allow this to happen. Susan Tellem’s attacks on local commercial property owners notwithstanding, only very few lower-rent opportunities will be available, and there are no guarantees of that. As long as the majority of residents want to restrict commercial development, rents will stay high. It’s a shame, but it’s a fact of Malibu life.
Leslie Moss