Monday night the City Council was forced to directly confront the battle for the heart and soul of Malibu.
Malibu is a world-famous brand. You mention Malibu anywhere and the immediate reaction of most listeners is to smile. Karen and I just got back from Bozeman, Montana, where we were fly-fishing, and when you said, “Malibu,” people told us a story of visiting here, or seeing it in a movie or knowing someone who lived here.
That reputation is not accidental.
Malibu is a brand and it means beaches, mountains, beautiful weather, surf movies, movie stars and uncluttered spaces that we all enjoy. One of the things that makes us so attractive is that we have one of the lowest densities in Los Angeles County, and the population of Malibu today isn’t much different then it was 40 years ago when I first got here. Almost no other small California beach city has been able to hold back the tide of development and humanity that could quickly overrun us and ultimately destroy the very reason that people come here.
We’ve had to beat back nuclear power plants, mountaintop freeways, bay causeways and early county plans for several hundred thousand people living in Malibu. To date, we have been reasonably successful as a community, but now we face a new, much more insidious threat: the world of commercialism.
The very reputation that we have fought so painstakingly to protect has made the city a very attractive takeover target. Let me give you an example. The Malibu Village is an L-shaped center that goes from the movie theater, past Chipotle to the Banana Republic and then turns to the other part of the “L” past Levis, past Marmalade to the Wells Fargo Bank. It just sold for a reported $120 million. It wasn’t too many years ago when it sold for roughly $30 million. The difference is that in those days, the rents were $3 per square foot and today it’s roughly four times that at about $12 per square foot. On top of that, add on a common area maintenance (CAM) fee of $2 or $3 per square foot, and you’re up to $15 per square foot.
So what does that tell you? It tells you that even at $15 per square foot, the rents are still cheaper than New York City. So if you have a bunch of national brands, the rents are going to rise, probably significantly, over the next few years. It also tells you that the movie theater is toast. I’ve heard that they’re paying about $3 per square foot with a couple of years to go on the lease. It also means that no local business can afford those rents. It’s not that the owners are bad guys. They’re not. They have made a perfectly rational business decision, but the problem is that we locals have to live in that business decision.
So, back to the City Council. Last night they voted to put the Reiner Initiative on the November ballot to be voted up or down. It’s a good thing, frankly because we should decide it, and the sooner the better. Besides, there is always a larger voter turnout in November, which will involve more of Malibu in this decision. At the same time, the council, which has done everything possible not to make a decision on a chain store ordinance, suddenly was able to all agree and passed its own ordinance. I guess when the wolf is at the door, it sort of clears the mind.
Both the Reiner Initiative and the City Council ordinance have their own unique problems. The Reiner Initiative, once circulated, signed and passed, has to be put on the ballot exactly as written. No chance to fix it or change it. On the other hand, the City Council ordinance can be changed, which is both its strength and its biggest weakness. Can the Council resist the political and financial pressures that invariably will follow?
Frankly, I don’t know. This is a good Council with some very conscientious and smart people. The problem is that a city with a $20-million plus annual budget is going to be making decisions that impact about $1 billion worth of commercial real estate in the Civic Center.
Over the next few months this is going to be an ongoing battle that affects everyone in Malibu, particularly those who live in the vicinity of the Civic Center. I expect to be writing about it, and also the Civic Center sewer, frequently. There are no easy answers on this one, so stay tuned.