Phillips 66 Refinery Transformation: A New Era for the South Bay
Refinery Shutdown and Redevelopment
Phillips 66 has announced its decision to shut down its sprawling refineries in Carson and Wilmington, covering 650 acres, by late 2024. The move is expected to create a massive transformation in the area, with potential uses including housing, last-mile distribution centers for e-commerce merchants, shops, restaurants, and sports and entertainment venues.
A Rare Opportunity
Real estate analyst Jesse Gundersheim described the situation as "a tremendous opportunity" due to the scarcity of developable land in Los Angeles and coastal California. The site’s proximity to the Port of Los Angeles, the busiest container port in the Western Hemisphere, makes it an attractive location for industrial and commercial development.
Phillips 66’s Decision
Phillips 66’s decision to shut down the refineries may be attributed to the site’s age and environmental concerns. The refinery in Wilmington, built in 1919, has been a source of community concern due to its impact on air quality and public health. Phillips 66 has engaged real estate companies Catellus Development Corp. and Deca Cos. to evaluate potential future uses for the site.
Potential Uses
The Carson site may be best suited for warehouses, which are in high demand around the nearby Port of Los Angeles. The facilities could be used by importers collecting goods from China or by e-commerce companies such as Amazon to store and quickly distribute goods to customers in the South Bay.
The Wilmington refinery site, connected to Carson’s plant by a pipeline, may lend itself to housing. The area is bordered by golf courses, Los Angeles Harbor College, federally owned land, and residential neighborhoods.
Model for Redevelopment
A similar redevelopment project can be found in Huntington Beach, where a former oil pumping and storage facility is being transformed into a mixed-use development with 250 residential units, a hotel, and retail space. The project, led by Shopoff Realty Investments, involved removing oil tanks and cleaning up the land.
Conclusion
The shutdown of Phillips 66’s refineries presents a unique opportunity for the South Bay to undergo a transformation. The potential uses for the site, including housing, warehouses, and entertainment venues, offer a chance to revitalize the area and create a new community.
FAQs
Q: Why is Phillips 66 shutting down its refineries?
A: The company is shutting down the refineries due to the site’s age and environmental concerns.
Q: What are the potential uses for the site?
A: The site may be used for housing, warehouses, shops, restaurants, sports and entertainment venues, and more.
Q: Will the site be redeveloped into a single-use project or a mixed-use development?
A: The site may be redeveloped into a mix of uses, including housing, warehouses, and entertainment venues.
Q: What is the timeline for the redevelopment of the site?
A: Phillips 66 has not set a timeline for the redevelopment of the site, as it is still in the preliminary stages.
