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'It's a tremendous opportunity.' Closure of Phillips 66 refinery in South Bay has developers salivating

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'It's a tremendous opportunity.' Closure of Phillips 66 refinery in South Bay has developers salivating

The South Bay is in for a large-scale transformation near the Port of Los Angeles as Phillips 66 shuts down its sprawling refineries and makes way for developers to reimagine the prime real estate.

Potential replacements for the century-old refinery complex covering 650 acres include housing and last-mile distribution centers for e-commerce merchants, both of which are in high demand. There may be shops, restaurants, and sports and entertainment venues.

“It’s a tremendous opportunity,” real estate analyst Jesse Gundersheim said. “Where else are you going to find hundreds of acres of developable land in L.A or coastal California?”

Oil giant Phillips 66 announced last month that late next year it will close the twin refineries in Carson and Wilmington that produce about 8% of the state’s gasoline. About 900 workers currently operate the refinery, which also produces diesel and jet fuel.

The Phillip 66 refinery in Wilmington was built in 1919 and produces produces gasoline, diesel and aviation fuels, which are distributed by pipeline and by truck to customers in California, Nevada, and Arizona. Wilmington has one of the highest ozone levels in the United States.

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(Carolyn Cole/Los Angeles Times)

The refinery’s massive fuel storage tanks, distillation towers and sprawling pipeline have been a long-standing source of community concern. In recent years, complaints of acrid odors, fiery accidents, soot and harmful emissions have gained new resonance as public officials become more sensitive to accusations of environmental damage.

“Phillips 66 in L.A. is an old refinery. It’s had a lot of problems with flaring and fires in recent years and high levels of pollution,” Julia May, senior scientist for Communities for a Better Environment told The Times. “It may have just been out-competed by the rest of the refineries.”

Asked if the site might be more valuable to Phillips 66 as developed real estate than as a refinery, company spokesman Al Ortiz said in an email, “We feel this is the best option for the future of our Los Angeles facilities.”

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Ortiz declined to comment further, saying Phillips 66 is in the preliminary stages of the project and hasn’t set a timeline on how long it might take to redevelop the land.

The oil company did say last month that it has has engaged real estate companies Catellus Development Corp. and Deca Cos. to evaluate potential future uses for the site. Both have taken on industrial land makeovers in the past.

Catellus redeveloped the 200-acre former Pacific Refinery Co. near San Francisco into a residential subdivision called Victoria by the Bay in 2003, a process that involved the removal of contaminants, real estate data provider CoStar said.

Deca has transformed outdated sites to accommodate new technologies. Its 800 Cesar Chavez project on San Francisco’s waterfront converted an aging warehouse into a large electronic vehicle charging and maintenance facility. It opened in 2018.

Deca didn’t respond to a request for comment about potential uses of the Phillips 66 site and Catullus referred inquiries to Phillips 66.

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“Right now, we are focused on running the facilities and collaborating with Catellus and Deca to get the necessary permits to redevelop the site,” said,” Ortiz said.

There is enough land for several uses, said Gundersheim, CoStar’s senior director of market analytics and a specialist in evaluating industrial real estate.

The Carson site may lend itself best to warehouses, which are always in demand around the nearby Port of Los Angeles, the busiest container port in the Western Hemisphere, Gundersheim said. The facilities may be used by importers collecting goods from China before distributing them across the West Coast or by e-commerce companies such as Amazon to store and quickly distribute goods to customers in the South Bay.

The Wilmington refinery site, which is connected to Carson’s plant by a pipeline, may lend itself to housing. It is bordered by golf courses, Los Angeles Harbor College, federally owned land and residential neighborhoods.

There is a model for such redevelopment not far away, Gundersheim said.

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Huntington Beach, which was once a booming oil industry center, has approved construction of 250 residential units alongside a hotel and retail space on the site of a former oil pumping and storage facility on Pacific Coast Highway. It will include single-family homes and apartments intended to be affordable.

Developer Shopoff Realty Investments bought the land in 2016, removed oil tanks and cleaned up the land known as the Magnolia Tank Farm.

The vastly larger Phillips 66 refinery sites may also be turned into a mix of uses that could include golf courses, athletic facilities, shopping centers and entertainment venues blended into new communities with houses and apartments, Gundersheim said.

“This kind of opportunity hasn’t been around for some time,” he said.

Phillips 66, which has operated the refineries since its 2012 spin off from ConocoPhillips, said it would replace their output with sources “inside and outside its refining network” and with renewable diesel and sustainable aviation fuels from its San Francisco Bay Area refinery.

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Fire-damaged Pacific Palisades shopping center sets reopening date

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Fire-damaged Pacific Palisades shopping center sets reopening date

The luxury shopping center in Pacific Palisades will reopen next month after more than $100 million in renovations forced by the January 2025 wildfire that devastated the Los Angeles neighborhood.

Palisades Village will reopen Aug. 15, owner Rick Caruso announced Wednesday. The outdoor center survived the blaze that destroyed homes and other businesses but needed refurbishment to eliminate contaminants that the fire could have spread.

Crews are putting finishing touches on mall buildings after tearing them down to the studs, treating the wood and rebuilding the walls, Caruso said.

“Everybody’s working, and stores are moving their products in,” he said. “It’s a really cool feeling that people have really locked arms and are working together.”

An electrician installs lighting for a restaurant at Rick Caruso’s Palisades Village on Thursday. The shopping center is scheduled to reopen mid-August.

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(Myung J. Chun / Los Angeles Times)

Pacific Palisades resident Allison Polhill, who is rebuilding the home of 30 years that her family lost in the blaze, said she is “thrilled” at the prospect of returning to the mall she used to frequent. Its comeback is a boost for the community, she said.

“Every single step that we make to reopen our commercial corridors is going to bring more people back into the Palisades,” said Polhill, who expects to move back into her home at the end of August.

A total of 6,822 structures were destroyed in the Palisades fire, including more than 5,500 residences and 100 commercial businesses, according to the California Department of Forestry and Fire Protection.

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Caruso previously attributed the mall’s survival to the hard work of private firefighters and the fire-resistant materials used in the mall’s construction.

The $200-million shopping and dining center opened in 2018 with a movie theater and a roster of upmarket tenants, including Erewhon, which may be the only grocer in the heart of the fire-ravaged neighborhood when it opens.

Caruso’s company was able to fill the mall with tenants despite the long shutdown.

Palisades Village is 99% leased, with the majority of tenants returning, said Jackie Levy, chief financial and revenue officer. Nearly one-third of the shops and restaurants are new to the property.

A firefighter carries a hose back to his rig while walking through a destroyed home in Pacific Palisades.

A firefighter carries a hose back to his rig while walking through a destroyed home from the Palisades fire in Pacific Palisades on Jan. 7, 2025.

(Genaro Molina / Los Angeles Times)

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Last year, Pacific Palisades-based fashion designer Elyse Walker said she would reopen her eponymous store in Palisades Village after losing her 25-year flagship location on Antioch Street to the inferno.

Other neighborhood shops destroyed in the fire that are reopening at the mall include K Bakery and Loomey’s Toys, which caters to children up to age 12 and used to be across the street from Palisades Elementary Charter School.

“It’s been a journey and I’m excited because I wasn’t sure that there was going to be a place to come back to,” said toy store owner Amanda Rastegar. “Hopefully we can bring some of that magic back.”

Rastegar’s home in the Palisades survived but was damaged by the fire. The family returned about eight weeks ago. Her last memory of the fire was a burning supermarket.

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“I just couldn’t wrap my brain around what was happening,” she said. “By the time I left, Gelson’s was on fire.”

Among the returning tenants is Angelini Ristorante & Bar. Well-known Los Angeles chef Gino Angelini said he will be in the kitchen next month for a return of the Italian restaurant.

“We won’t do a big celebrity open,” he said. “We want to have a very soft opening and see our customers come back.”

Construction takes place at Rick Caruso's Palisades Village

Construction takes place at Rick Caruso’s Palisades Village on Thursday. The shopping center is scheduled to reopen mid-August.

(Myung J. Chun / Los Angeles Times)

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An elaborate celebration would not feel “correct for me,” Angelini said, because the devastation has been “very sad” for so many.

Other new tenants include local chef Nancy Silverton, who has agreed to move in with a new Italian steakhouse called Spacca Tutto. Women’s activewear retailer LESET will open its first West Coast location.

Caruso said he is optimistic that customers will return to the center, even though many Pacific Palisades residents are still dispersed. One tracking system estimated that about 30% of the Village’s customer base was impacted by the fire, he said.

“That means 70% did not get impacted, so there’s a lot of customers still left out there,” Caruso said. Historically, the center drew customers from as far away as Beverly Hills and Calabasas, as well as Malibu, Brentwood and Santa Monica.

He also hopes many will be inspired to visit the revived mall.

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“I believe in the goodness of people and I believe that people are going to want to support the Palisades,” he said. “They’re going to want to be there and support the businesses that have had the courage and the heart to reopen.”

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Walmart’s EV chargers are coming to California with discounts for members

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Walmart’s EV chargers are coming to California with discounts for members

Walmart is rapidly expanding its network of electric vehicle chargers designed for customers to use while they shop.

The network could help fill gaps in EV infrastructure in states with greater need for chargers. Walmart, which has more than 5,000 locations in the U.S. and hundreds in California, says more than 90% of Americans live within 10 miles of one of its stores.

The chargers also offer an incentive for customers to choose Walmart — Walmart Plus members will receive a 10% discount off an average price of $0.46 per kilowatt-hour of energy at the company’s chargers.

Walmart chargers are already available at more than 75 locations in 17 states, with Texas boasting the most charging stations, followed by Florida and Arizona.

Matthew Nelson, Walmart’s director of energy policy, said last week on LinkedIn that the network will soon reach 29 states, including California.

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“We are delivering on the promise of affordable, reliable and convenient charging,” Nelson said in his post.

According to Walmart’s website, six charging stations are coming to California soon, though the company did not offer a specific timeline.

The chargers will be installed at stores in Antelope, Brea, Fresno, Stockton, Suisun City and Vallejo.

Most charging sites in California will include eight to 16 fast-charging stalls, said Walmart spokesperson Kelsey Bohl.

The company first announced plans in April 2023 to install its own EV chargers at Walmart and Sam’s Club stores, with a goal of installing thousands of chargers by 2030. Partnering with ABB E-Mobility and Alpitronic, it added 25 new charging sites this past May and six more in June.

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“Walmart is building a leading retail-integrated EV fast-charging network, focused on delivering an affordable, reliable and convenient charging experience where customers already shop,” Bohl said in an emailed statement. “Customers can charge while they shop, access stations through the Walmart app they already use, and benefit from affordable pricing.”

The charging stations already available include 612 individual charging stalls using 400-kilowatt chargers. Each stall has a dual charging cord with both Combined Charging System and North American Charging Standard connectors. The standard connectors, designed by Tesla, are smaller and lighter than the combined systems.

The primary way to pay for the chargers is through the Walmart app, but the company is also experimenting with built-in credit card readers to allow those without the app to use the stations.

Customers can check charger availability on the Walmart app. The company said the chargers will be available 24 hours a day.

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Waymo reports teen riders for bad behavior and delivers them to the police

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Waymo reports teen riders for bad behavior and delivers them to the police

Robotaxis could be turning into robocops.

A self-driving Waymo reported two teens to San Mateo, Calif., police on Monday after they were found drinking alcohol and shooting toy guns in the back of the vehicle.

According to a social media post from the San Mateo Police Department, officers detained two 15-year-olds after the Waymo they were riding in contacted the department and stopped in a parking lot until law enforcement arrived.

“Parents do you know where your teens are?” the San Mateo Police Department wrote on Facebook following the incident. “Waymo does!”

Officers removed both teens from the vehicle and determined they were using toy guns to shoot Orbeez out the windows. Orbeez are small, water-absorbing beads sold at toy stores.

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“Toy guns, water guns, and BB guns all pose real dangers, especially to an untrained eye,” the Police Department said. “The simple handling of them can cause fear in [passersby].” “

A video posted on Facebook shows at least five officers and a police dog responding to the scene and approaching the Waymo with their weapons raised.

Waymo did not immediately respond to a request for comment.

Waymo vehicles have internal cameras and microphones that may be used in an emergency or to “promote safety and security,” according to Waymo’s online support page.

The cameras are also used to ensure the vehicles are clean and to help find lost items, according to the support page.

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The company said it does not use facial recognition or other biometric identification technologies to identify individuals.

“In more urgent circumstances, support may access live video during a trip,” the Waymo page said.

The San Mateo Police Department’s Facebook post has garnered nearly 60 comments, with one user accusing Waymo of “snitching.”

“At least they got a designated driver?!” one user commented.

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