March 2, 2021 Long Beach City Council Meeting
Item No. R-22
Recommendation to request City Manager to study feasibility and explore support or
financing options in for the creation of a Latino cultural district and a mixed-use small
business economic development hub significantly similar to the El Mercado de Long
Beach proposal supported by Centro CHA, and suggest support from upcoming grants
and revenue including recovery investment funds, Measure US funds, and other grants
that support health and equity for our Latino communities.
Sponsors:
Councilwoman Zendejas
Councilwoman Mungo
Councilwoman Allen
Councilmember Uranga
Item Background:
The feasibility study will review the potential scale and scope of a project to find pilot project options as one of many solutions to food insecurity, housing, health care and the economic crisis caused by the pandemic and, in particular, to our disproportionately affected Latino communities.
The study will also help explore financing options to include tax-increment financing, bond financing, foundation support, and local, state, and federal funding opportunities.
To offset the sudden economic and health consequences of food insecurity, this feasibility study should be integrated as part of our equity-informed Food Security Recovery Plan to allow for micro business concepts like El Mercado de Long Beach to setup shop in a disproportionately impacted area.
El Mercado (Public Market) De Long Beach Talking Points
El Mercado (Public Market) de Long Beach concept is a comprehensive economic development hub and mixed-use project that would include but not be limited to restaurants, grocery stores, retail, commercial, housing, entertainment/art, and social services.
- El Mercado de Long Beach would serve as part of a growing Latino cultural district that will provide identity and recognition for the Latino community and can be integrated into the city’s downtown core and waterfront.
- This “creation of place” will showcase the vitality and spirit of the rich Long Beach Latino community and become a regional economic generator offering visitors and tourists an authentic cultural experience.
Latinos in Long Beach have been a driving economic force in the local community.
- Latinos are the single largest ethnic group representing 42.4% of the city’s population and 32.6% of the residential households.
- The economic performance of the Latino community is unmatched across Long Beach. More than 43% of Long Beach’s residential workforce are Latinos adding substantially to the critically needed working-age adults.
- Additionally, the labor force participation among Long Beach Latinos is 70%, seven percentage points higher than all other Long Beach working-age residents.
- More astounding is the total economic output (or GDP contribution) of Latinos in Long Beach was $34.3 billion in 2017, up from $33 billion in 2016.
- Latinos generate 38.1% of Long Beach’s total economic impact on the Los Angeles and Orange County Metropolitan Statistical Area (MSA).
- These contributions indirectly supported the creation of an additional 76,851 jobs in the region.
- At the same time, the Latino immigrant population generated an economic impact of $13.7 billion, representing 15.2% of the city’s economic impact, and that activity further helped the creation of an additional 32,021 jobs.
- Interestingly, Latino households and Latino immigrant households together generated 52% of all Federal, State, and Local tax revenue created by Long Beach households in 2017.
Since the COVID-19 pandemic, Latinos have disproportionately experienced the most significant economic and health impacts- leaving residents struggling to pay for necessities such as rent, food, transportation, and health care. Latinos have had unequally higher rates of infection and mortality compared to any other group in Long Beach.
- The highest concentrated Latino neighborhoods continue to be COVID-19 hotspots.
- Latinos represent 37% of all positive COVID-19 cases, 41% of all hospitalizations, and 40% of all COVID-19 related deaths in the city, which is the highest rate among all ethnic groups in Long Beach. All the while, 19% of Latinos aged 18 years and older have no health care coverage, and 12% of Long Beach Latino seniors aged 55 and older have no health insurance.
- The negative impacts of the pandemic have propagated beyond infection, contraction, and death. The disparities among Latinos persist beyond COVID-19 for other diseases and social outcomes and are worsened by social determinants of health and the effects of the virus. Social determinants include health inequities, safety and wellness, immigrant and legal services, education, financial literacy, and workforce development.
- Moreover, the COVID shutdowns impacted sectors heavily represented by Latino workers. Latinos are highly represented in the essential workforce.
- Arts, entertainment, and recreation and accommodations, and food services, occupied by 47% Latinos, experienced the most extensive employment loss during the peak with a 42% and 45.7% loss in employment, respectively.
- Latinos' jobs make them significantly more vulnerable to exposure to the virus, and many of these positions do not provide health insurance or offer little protection.
The economic development of El Mercado de Long Beach is consistent with the City’s Racial Equity and Reconciliation Initiative Report, the Blueprint for Economic Development, and the Economic Profile of the Latino Community Report, given that it addresses long-standing socioeconomic and environmental inequities affecting the city’s Latino community and promotes community empowerment, cultural recognition, entrepreneurship, and self-determination in the City of Long Beach.
- The persistence, hard work, and cultural values of Latinos in Long Beach have served as an economic engine in the labor force and now as a symbol of prosperity during an unprecedented year of economic recovery.
- Small businesses and culture are the cornerstones of an integrated and equitable city. The support and stabilization of Latinos will be vital to the cities future recovery and growth, as healthy individuals and households increase current and future economic activity.
- By helping new Latino businesses prosper and inspire Latino entrepreneurship, El Mercado de Long Beach will create long-lasting jobs in the City of Long Beach. As startups mature and grow, they create long-lasting jobs in our city. This benefits our communities and drives economic growth.
- Affordable retail spaces and shared spaces will allow more retail businesses to launch and grow by reducing entrepreneurship barriers.
- El Mercado de Long Beach will create and build community that celebrates the Latino heritage in arts, entertainment, social activities and opportunities for learning that celebrates and embraces our rich diversity in the City of Long Beach.
Recommendation: The City of Long Beach has prioritized equity and inclusion in celebration of its diversity and as a commitment to ensuring all residents have equal opportunity to thrive, regardless of who you are, what your background is, what neighborhood you live in, or your personal and cultural identity. The Community needs Business and the Business needs Community.
Contact:
City of Long Beach Councilwomen Mary Zendejas, District 7 (562-570-6919) Mary.Zendejas@longbeach.gov
Jessica Quintana, Centro CHA Executive Director (562-900-2409) Jessica@centrocha.org
