With a high concentration of people living in dense and bustling urban centers like New York and San Francisco, it’s no wonder those parts of the country lead the way in establishing areas of mixed-use development as a way to stimulate the local economy.

Such developments aim to combine commercial space with residential living quarters as a way of attracting privately owned businesses into town while accommodating more residents who wish to live in the heart of a city.

In being a dense and small town already, Hermosa Beach lends itself to the kind of unique atmosphere common in places like San Francisco, New York or Boston.

City officials would like to take advantage of Hermosa’s distinctive environment by attempting to recreate a diverse mix of use thanks to a recent City Council vote. The vote would allow property owners within a specific area of town to renovate businesses on their land where they could build two-story structures. The newly upgraded structure would entail commercial space on the ground level while the top floor would consist of residential where they could rent out apartment space or sell new condominiums.

Mayor Michael Keegan is a strong proponent of mixed use and believes the city’s tiny commercial zones would promote it.

“It gives incentive to people by allowing them to mix the use instead of trying to build a three-story commercial building, which is between $200 and $300 per square foot compared to residential space, which goes for about between $400 and $500 per square foot,” he said. “It won’t really benefit single lots in this zone because a single lot has to provide adequate parking and the city doesn’t allow tandem parking. It’s really for someone who wants to tie three lots together because you can build a subterranean parking garage to accommodate the entire development.”

By evaluating certain segments on Hermosa and Pier avenues, Pacific Coast Highway and Aviation Boulevard, city officials hope this vote is a series of steps to determine whether the city would be an ideal place for such developments.

“I would like see some activity on Aviation Boulevard,” said City Councilman Peter Tucker. “I think some of those areas need to be revamped and I think it will enhance the appearance of the city. It’s an endeavor we’ll have to take slow and kind of see what happens.”

At its Dec. 9 meeting, the Hermosa Beach City Council voted to introduce an ordinance that will provide new standards for mixed use that have been a part of the city’s zoning laws. It will allow property owners who are a part of the C-1 zone in town to build condominiums above commercial buildings if they decided to redevelop those commercial buildings. The city hopes the change in the zoning laws will provide incentive to developers who will have the opportunity to generate profits by selling residential spaces in town.

For the past 30 years, the city has permitted the building of apartments above commercial buildings in what it defines as the C-1 zone, which comprises about 12 to 18 lots. However, the city hasn’t reviewed any applications for new mixed-use projects with the exception of a newly approved proposal at 44 Hermosa Ave. The Planning Commission reviewed the project in 2002.

Most businesses in the C-1 zone are located along Hermosa Avenue on the fringes of the downtown.

“It provides an incentive to people who want to renovate their existing commercial buildings by allowing them to put homes above businesses,” added Tucker. “It’s like dangling the carrot in front of the horse.”

City officials are hoping to review one part of town at a time as a way to attract new businesses to Hermosa Beach while providing more housing to satisfy state regulations and improving the aesthetics of rundown business districts.

In August, the Hermosa Beach Planning Commission agreed to take a closer look at possibly altering city zoning laws related to the mixed use, and voted to seek permission from the City Council before moving ahead with the proposal.

The Planning Commission claims if the city allows mixed use, it will give developers an opportunity to build housing units, which would then provide an added incentive to attract new commercial tenants.

A community volunteer group known as the Economic Development Committee prompted discussion on the matter, which was only one in a series of ideas the group reviewed over a one-year period as a way of attracting new businesses to Hermosa Beach. The committee developed a proposal and made its recommendations to City Council members who expressed an interest.

“I think this kind of mixed use will help in several ways. I think it will expand the city’s commercial base, help the city conform with the state housing act and property will be assessed at a higher value,” added Keegan. “I think right now the city is treading water to see how it all goes on one or more projects. Some feel condos above downtown businesses won’t sell but in my experience I think they will because people like being close to the beach and to a city’s downtown.”