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Malibu businesses struggling in the aftermath of fire and PCH restrictions

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Malibu businesses struggling in the aftermath of fire and PCH restrictions

Two months after twin fires destroyed large swaths of two Southern California communities, many of the businesses left behind are struggling to revive sales in the face of displaced customers, road closures and a massive rebuilding effort that is projected to drag on for years.

The secondary crisis has hit hard in Malibu because of the ongoing closure of Pacific Coast Highway to most vehicle traffic — isolating the beachside community from customers coming from the Westside.

Some businesses have closed and others say they are struggling to stay open. Sales for some restaurants and shops have plummeted to less than half what they were before the Palisades fire roared through the east end of the city in early January.

A woman passes mostly closed stores in the Malibu Country Mart on Thursday.

(Etienne Laurent / For The Times)

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Leaders in the city government and business community have urged the state transportation agency, Caltrans, to expand access to PCH as soon as possible. But with the U.S. Army Corps of Engineers only about to begin clearing hundreds of destroyed homes along the highway, the crucial coastal route seems likely to remain as a choke point for months and possibly years.

In the meantime, Malibu’s government and business leaders are reminding outsiders that most of the town did not burn and that restaurants and shops are waiting for customers to return.

“The main thing we want people to know is, Malibu is open for business,” said Mayor Doug Stewart. “Yes, it’s hard to come in from the east [Santa Monica side] but there are lots of other ways to get here. Malibu is not destroyed. Our retail and restaurants are open for everyone.”

Wildfires and floods have beset the city of about 10,000 with striking regularity. But in recent years the onslaught has been particularly challenging. First came the 2018 Woolsey fire, which destroyed 465 homes, with fewer than 40% rebuilt by this year.

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Landslides closed PCH last year. The Franklin fire gutted 20 structures in central Malibu, also shutting down power for days. Then came January’s Palisades fire, which burned the vast majority of homes along the ocean from Topanga Canyon to Las Flores Canyon, just a part of the 798 total structures lost in Malibu, according to the Army Corps.

A line of firefighters stretches into a business signed "Duke's."

Fire crews from Mountain Home in Tulare County and Gabilan in Monterey County help clean up at Duke’s restaurant in Malibu on Feb. 14.

(Myung J. Chun / Los Angeles Times)

“If the businesses here were a boxer, at that point they might have called it a TKO [technical knockout],” Stewart said. “This has hit them really hard and they are struggling.”

Mitch Taylor, longtime manager of the Becker surf shop in central Malibu, agreed: “It’s a guarantee here in Malibu that something nasty happens every five to 10 years. But this isn’t just nasty, it’s devastating.”

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A man stands near a rack of surfboards.

Becker Surfboards manager Mitch Taylor, amid surfboards on sale in Malibu on Thursday.

(Etienne Laurent / For The Times)

Epitomizing the challenges for local business is John’s Garden, a beloved sandwich, salad and soup shop in the Malibu Country Mart. Though it survived the fire, the restaurant has seen its receipts drop by more than half, with many of its non-local customers unable to pass PCH checkpoints.

Even workers who have passes to get through the checkpoints find the drive painfully slow, with the highway reduced to one lane in each direction and the speed limit cut to 25 mph as work vehicles jam the roadway.

Many workers are forced to take the longer route, from the 101 Freeway to Las Virgenes/Malibu Canyon Road. The change has lengthened the one-way commute for some from perhaps 40 minutes to two hours, sometimes more.

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When they arrive at work in the Country Mart, its to a quaint shopping center hushed by the absence of visitors. On a bright, windy day Thursday, a patio that can be jammed with diners sat mostly empty.

Boyan Kinov, a Bulgarian immigrant who bought John’s Garden a dozen years ago, said he is straining to stay afloat. Already, a neighboring boutique and a gym have closed. Other high-end retailers are open shorter hours. He worries that, if other businesses fail, it could further reduce foot traffic at the Cross Creek Road shopping center.

A man stands inside a small shop.

Kalin Kinov, who operates John’s Garden with his brother Boyan, inside the Malibu lunch and snack shop on Thursday.

(Etienne Laurent / For The Times)

Kinov said his insurer is balking at paying on a portion of his policy for receipts lost to business interruption, saying it is only responsible for the days the business actually shut its doors, not deficits linked to the restricted highway access.

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“We’re one of the oldest businesses in Malibu. We celebrate our 50-year anniversary in July,” Kinov said. “We’re like a staple, an institution. And we have zero support from any kind of agencies or the government.

“I feel like defeat, you know? It’s unsustainable the way it is. It’s very sad, and even unbelievable, to have to consider closing the doors.”

A man looks at his phone in otherwise deserted patio area.

A man looks at his phone in the empty covered area of Malibu Country Mart, where businesses have suffered in the wake of the Palisades fire.

(Etienne Laurent / For The Times)

Others local mainstays, like Duke’s Malibu, Tramonto Bistro and Caffe Luxxe on PCH near Carbon Beach, have not yet reopened. Those businesses are even harder to reach, hemmed in by checkpoints on both the east and west.

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Like other businesses in Malibu, John’s Garden reminds customers from outside that they can still reach the city. The highway up the coast from the Country Mart remains open and traffic can also come over Kanan Dume Road and Malibu Canyon from the Valley.

But the bulk of visitors have always come from “town” — Pacific Palisades, Santa Monica and points beyond — making greater access to PCH critical.

At Paradise Cove Beach Cafe, where business is down more than 60%, owner Bob Morris called on political leaders up to the governor to focus on a quicker expansion of access to the highway, also known as State Route 1.

An empty playground.

A playground at the Malibu Country Mart shopping center stands deserted.

(Etienne Laurent / For the Times)

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Morris said leaders should consider offering the kind of incentive given to the freeway contractor who rebuilt the Santa Monica Freeway after the 1994 Northridge earthquake. That builder earned a $14.5-million bonus for restoring a collapsed section of the freeway 74 days ahead of schedule.

Glen Gerson, owner of Calamigos Beach Club restaurant on PCH, suggested Caltrans use reversible dividers on the highway to provide two lanes of traffic in the predominant commuting direction, and one lane in the other direction.

“Nobody needs to get hurt. We have to do it safely,” Morris said. “But we’ve got to get this highway open, and in the government somebody’s got to push to make it happen.”

The highway through most of Malibu consists of a total of five lanes — two for traffic in each direction and a center lane for left turns. There is also a lane on each side for parking along most of both sides of PCH.

Burned structures line the seaward side of a coastal highway.

Houses on Pacific Coast Highway in Malibu destroyed by the Palisades fire.

(Myung J. Chun / Los Angeles Times)

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Now orange traffic cones limit vehicles to one lane in each direction. And the highway will soon be crowded with trucks hauling debris to be removed by the Army Corps of Engineers and private contractors.

In the whole Palisades fire burn zone, it’s estimated it will take 90,000 truckloads to finish the job. The Corps has said the work will be complete in both the Palisades and Altadena burn areas “within a year,” without giving more precise estimates for PCH and other sections of the work.

Caltrans spokesperson Nathan Bass said the agency is moving “toward opening as soon as we possibly can,” adding that recovery workers remain busy in the area and that they must “work through” their tasks, including removal of hazards, before opening PCH for people other than first responders, healthcare workers, residents, contractors and essential employees.

A man in boots carrying equipment crosses a beach toward the sea.

A Los Angeles sanitation worker walks past fire debris last month to take a water sample at Topanga State Beach in Malibu.

(Christina House / Los Angeles Times)

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Locals and visitors who mostly now come from up the coast or from the San Fernando Valley are trying to fill in for the missing customers.

The city of Malibu is buying lunch at various local restaurants, every day, for roughly 100 city employees, Stewart said. On March 15, Morris plans to host a “Day of Hope” at the Paradise Cove restaurant, with free meals for first responders and those affected by the fire.

Service resumed recently on the Metro bus line traveling from Santa Monica to Trancas Canyon Road, near the far western end of the city. Some locals have wondered whether a ferry service could be launched, to deliver day trippers from Santa Monica Pier to Malibu Pier — an alternative that the city tried during a major landslide decades ago.

Kinov and other Malibu businesspeople said their spirits have been lifted by customers who made a special effort to buy extra meals or gifts.

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Lisa Barron, who lost her home above La Costa Beach, said she came to John’s Garden for a sandwich to help bolster a place she has come to love.

“We don’t want what’s still surviving to die before the rest of us can rebuild and get back,” said Barron, a former business professor at UC Irvine. “With these businesses and the people who are still living here, we’ve got to keep them alive and healthy and safe so the community doesn’t go downhill.”

A man eats at an outdoor table. A sign reads "John's Garden Lunch & Snack Shop."

A customer eats lunch at the Malibu Country Mart on Thursday.

(Etienne Laurent / For The Times)

With the same thought in mind, Vanessa Abbott, a film editor who lives in Calabasas, popped over the hill Thursday for lunch. “Everything is still here, and I want to do my part to support it,” Abbott said, “one sandwich at a time.”

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Lynn Schulz, general manager of Marmalade Cafe in the Country Mart, said the feeling of support operates in both directions.

“We feel our role in the community, even during this tragedy, is to be here, to be open, to be cranking out meals, or to do catering, whatever anyone needs,” Schulz said. “We’re doing everything we can to be here and be part of the community.”

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In a first for the country, voters in Monterey Park ban data centers

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In a first for the country, voters in Monterey Park ban data centers

Residents of Monterey Park voted overwhelmingly to ban data centers on election day, making the San Gabriel Valley city the first in the nation to do so by public vote.

As of Wednesday, 86% of votes were in favor of Measure NDC, the city ban, according to the Los Angeles County registrar-recorder/county clerk.

Other cities and towns have passed moratoriums on data centers, as a wave of opposition sweeps the country. But the Monterey Park vote can only be overturned by another ballot measure, making it the most permanent data center ban in a jurisdiction.

Monterey Park’s City Council had already banned data centers by ordinance, after a proposed 247,000-square-foot data center met an outpouring of public anger and concern. The developer withdrew that plan.

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That facility would have been less than 500 feet away from the nearest home, and would have used three times the electricity of the entire 60,000-person city. Residents said it would have caused noise and air pollution and driven up electricity rates.

“This ensures long-lasting protections for current and future generations,” Amy Wong, co-founder of the group San Gabriel Valley Progressive Action, said of the vote. “It means that future city councils cannot overturn a data center ban, even if data center developers wanted to spend money to fund pro-data center candidates.”

The measure had no formal opposition. The developer of the proposed facility, investment firm HMC StratCap, said it wouldn’t engage in the ballot fight when it withdrew in March.

The Data Center Coalition, an industry trade group, expressed disappointment in the vote.

“It sends a signal that the area is closed for business, both for data centers and for other significant economic development projects,” state policy director Khara Boender said.

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“It deprives local residents of the opportunity to compete for jobs and investment, while also causing the area to relinquish substantial long-term economic investment, high-wage jobs, and critical tax revenue to neighboring areas or other states.”

SGV Progressive Action worked with hyperlocal groups including No Data Center Monterey Park to rally support for the measure.

The group is now focused on stopping data center proposals in the City of Industry and fighting a move by City of Industry, Santa Fe Springs, Vernon and City of Commerce to welcome data centers and other industry with fast-tracked permitting and tax incentives.

City of Industry, in the San Gabriel Valley, and Vernon, south of downtown L.A., are primarily industrial areas, each with around 300 permanent residents. They are employment centers, and tens of thousands of workers commute in daily.

There has been little vocal opposition to data centers among the few residents of these cities. Wong said the protest is primarily coming from the surrounding neighborhoods.

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“If a data center gets built in City of Industry, residents across the region would bear the brunt of pollution and increased utility costs,” Wong said, noting that it is surrounded by 16 other cities and unincorporated communities.

Data center proposals have been limited in California compared to Virginia, Texas, Georgia, Illinois and Arizona, which sit at the center of a recent boom in hyperscaler facilities to power artificial intelligence.

California has the third-most data centers in the country, with 300, but high electricity rates, expensive land and regulatory hurdles mean that fewer, and smaller, facilities are currently planned than in other hotspots.

That doesn’t mean opposition hasn’t been fierce. In Coachella and Imperial County, residents are showing up in droves to protest local proposals.

In the San Gabriel Valley, Montebello, El Monte and Baldwin Park have all enacted temporary moratoriums, and Alhambra recently banned data centers as part of a zoning code update.

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Wong said she hoped the ballot measure vote would galvanize the opposition. “The vote is a testament to the people power of our region,” she said. “Our region is worth protecting, and we won’t let data centers determine our future.”

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Rent-hike ban to protect fire victims ends despite gouging concerns

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Rent-hike ban to protect fire victims ends despite gouging concerns

A rule intended to prevent rent gouging in the wake of the Eaton and Palisades fires has lapsed in Los Angeles County, possibly exposing some renters to hikes.

The executive order that blocked rent increases was issued by Gov. Gavin Newsom amid the devastating wildfires last year. Under the order, landlords couldn’t increase rents by more than 10% above their prefire levels.

The rule, which was supposed to be temporary and was repeatedly extended, ended Friday after a vote to extend it again failed to garner enough votes. Supervisor Lindsey Horvath, whose district includes Pacific Palisades, sounded the alarm in a motion to extend price protections that failed to pass at the Board of Supervisors’ May 19 meeting.

“These price gouging protections continue to be necessary as construction and rebuilding continue, and as thousands of people remain displaced,” the motion said. “Families which signed short-term leases could face drastic price increases of 50% or more without further price gouging protection.”

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Los Angeles County is home to more than 1 million rental properties, though not all of them needed protection from the new rule. There are already stricter rent increase caps for many residences, depending on the location, type and age of the building. Despite the rent control in the region, the people of Los Angeles pay among the highest rents in the country.

It is uncertain whether renters will face rapidly rising rents now that the protection has lapsed. But some real estate experts and policymakers said there was no need for the temporary rule that was part of the governor’s state of emergency.

Supervisors Kathryn Barger, Janice Hahn and Holly Mitchell abstained from voting on the motion to extend the protection, while Supervisors Hilda Solis and Horvath supported it.

“I abstained because I did not see sufficient evidence to justify extending this emergency ordinance, nor did I see evidence to eliminate it entirely,” Hahn said.

Barger’s office said she supported allowing the protections to sunset while waiting to see whether new information emerged.

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“Market data already shows countywide rents are only about 2% above pre-emergency levels and rental inventory has grown,” Barger representative Helen E. Chavez Garcia said. “The Supervisor is also mindful of the burden these ongoing protections place on small property owners throughout the county.”

Mitchell did not immediately respond to a request for comment.

There haven’t been steep rent hikes in neighborhoods within three miles of the Palisades fire, according to a Times analysis of data from Zillow, the property listing company.

In ZIP Codes within three miles of the Palisades fire, rent increased 4.8% from December 2024 to April 2025. In areas around the Eaton fire, which destroyed swaths of Altadena, rent jumped 5.2% in the same period.

In L.A. County, ZIP Codes farther from the fires saw only about a 2% increase.

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A landlords representative, Jesus Rojas of the Apartment Owners Assn. of Greater Los Angeles, told the supervisors during public comment at the meeting that the county’s rent-gouging rules have “long outlived the emergency they were intended to address” and are now being “wrongfully used to harm thousands of rental housing providers throughout the county.”

“There is no proof that multifamily rental housing providers are hugely increasing rents for impacted homeowners,” Rojas said.

Indeed, there are strong signs that the property market in the Los Angeles area has at last begun to cool.

L.A. metro-area rent prices recently fell to a four-year low, with the median rent slipping to $2,167 in December.

Meanwhile, condominium sales had their slowest start of the year in decades. Condo sales in Los Angeles have plummeted to a 20-year low, with fewer than 2,000 units sold in January and February — the worst start to the year since 2005.

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Newsom defended the price-gouging protections shortly after they went into effect.

“In the days following the Los Angeles firestorms, we worked quickly to protect Los Angeles survivors from any form of exploitation,” he said in February 2025. “The state has the tools in place to not only block price gouging during this emergency, but also to prosecute bad actors.”

The Los Angeles County Department of Consumer and Business Affairs said it received more than 2,000 complaints after the fires, alleging that retailers and landlords were taking advantage of people put in hardship by their losses, and sent out more than 2,000 cease-and-desist letters to businesses and landlords for alleged price gouging, said Morine Merritt, who oversees department investigations into consumer and real estate fraud.

“Close to 90% of the complaints that we received involved allegations of rent increases,” Merritt said in an interview. Now that the fire-related protections have expired, existing laws and “regular market conditions determine price increases for goods and services, including rents,” she said.

Crackdowns on fire-related rent gouging have been rare, said Chelsea Kirk of the activist organization the Rent Brigade, which analyzed L.A. County’s rental market in the year after the fires. It reported 18,360 potential examples of price gouging in listings but said that few lawsuits had been filed by authorities so far.

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Last week, Rent Brigade announced what it said was the first private civil lawsuit brought by a family that claimed to be rent-gouged in the aftermath of the wildfires. Plaintiffs Randall and Candy Renick, whose Altadena home was damaged, said they were charged nearly three times the maximum permitted rate for nearly 10 months. They seek restitution of $96,000 plus civil penalties and attorneys’ fees.

The rental market has probably stabilized since the fires, Kirk said, but other families may still be “locked into illegal rents” that they agreed to pay when they were in a rush to find housing after they were displaced.

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Read Nick Bilton’s Letter to Scott Pelley

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Read Nick Bilton’s Letter to Scott Pelley

Dear Mr. Pelley:

I meant what I said in my letter last week to the 60 Minutes team: joining 60 Minutes is the honor of my career and I am grateful to be working alongside the people who have contributed to the most important television journalism brand this country has ever produced. While I’m new to 60 Minutes, I’ve devoted my career to investigative journalism and storytelling. I started this job excited to collaborate and to benefit from the wisdom and experience of the 60 Minutes veterans, with you among them. For that reason, one of the first things I did in my new role was call you to talk and invite you to dinner. It is a profound disappointment that you rejected that overture and chose ambush instead. Yesterday, you hijacked my first meeting with staff to disparage me, my qualifications, and my intentions with remarkable incivility and contempt. I welcome a diversity of viewpoints and respectful debate among the team, but this was nothing of the sort. Yesterday’s performative display of hostility enacted in front of the staff instead of in a civil, private conversation-demonstrated that you have no interest in contributing to the future success of the show, or approaching my new tenure with a mind open to collaboration and progress. I am here to deliver first-in-class news programming, not to make headlines about newsroom drama. I am eager to work alongside those who share this goal.

Despite yesterday’s misconduct, I had hoped that in sitting down with you today we could find a path forward together. You made clear that you are not interested in such a path.

Your antipathy to the future of the show has come through loud and clear. And I have heard you. I therefore write on behalf of CBS News, Inc. (“CBS”) to inform you that your employment with CBS is terminated for cause effective immediately. Enclosed is your formal termination letter.

Sincerely,

Nick Bilton

Executive Producer, 60 Minutes

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