The City of Signal Hill is considering a new zoning overlay to stimulate redevelopment of the "oil patch" along its northern border. 

The proposed boundaries of the overlay district would encompass approximately 263 acres of land, located to the south of the I-405 Freeway and the north of Willow Street between Atlantic Avenue to the West and Temple Avenue to the east. The area was largely developed between the 1920s and the 1960s for oil drilling purposes, and remains home to most of the remaining active oil wells in Signal Hill.

Past redevelopment efforts have brought street and utility infrastructure to the area, leading to the construction of roughly 2 million square feet of light industrial space, as well as commercial centers that are home to card dealerships and large retailers such as Home Depot and Costco. Oil extraction still accounts for the lion's share of real estate in this area, with the City estimating that such uses take up nearly half of its real estate, mostly concentrated in the central and eastern portions. Just 45 residential units housing a total of 109 residents exist today, versus approximately 2.3 million square feet of non-residential buildings employing 4,484 people.

The proposed new zoning would expand the uses allowed within the oil patch, including the construction of housing in some areas. 

Three specific overlay zones are proposed, including: 

  • Community Core Zone, which would include multifamily housing, retail uses, professional services, and live/work spaces; 
  • Innovation and Enterprise Zone, which would accommodate incubators, aerospace research and development, light industrial, creative office, technology, and medical office uses; and 
  • Workshop and Entertainment Zone, which would accommodate light industrial, restaurant, brewery, fitness center, gym, office, and other recreational uses.

The lower-intensity Community Core uses would be distributed mostly along the southern edge of the area, fronting Willow Street, with a smaller component in the northwest corner. Workshop and Entertainment would be distributed toward the northeast corner of the area, while Innovation and Enterprise would sit toward the center and western areas.

A full buildout of the capacity included int he overlay zone could result in 216,000 square feet of new commercial space in the place of industrial and warehouse uses, approximately 63,000 square feet of new offices, more than 300,000 square feet of hotel uses, and up to 1,033 new homes. The resulting changes are only projected to increase employment in the area by approximately 259, while adding up to 2,500 new residents.

Those improvements could complement planned upgrades to Willow Springs Park in the City of Long Beach, which is bounded to the east and west by overlay zone areas in Signal Hill.

Adoption of the new zoning rules will require approval by the Signal Hill City Council and completion of an environmental review process.

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