Signal Hill has a rich and colorful history. Encompassing a mere 2.2 square miles, the city was once most famous for the discovery of oil in 1921 and was commonly known as an "oil town." Signal Hill is now a diverse, vibrant, dynamic community with an "oil history" and a bright future as a shining city on a hill.
Rising 365 feet above sea level, Signal Hill offers a beautiful panoramic view of the California coastline, its ports and harbors, Catalina Island, the sprawling Los Angeles and Orange County basins, and the majestic Santa Monica, San Gabriel and Santa Ana mountains. In the 1500's, local native tribes used the hilltop to signal other tribes on Santa Catalina Island, 26 miles offshore. Because of its use as a signaling point, Spanish settlers called the hill "Loma Sental" which translates to "Signal Hill."
Signal Hill's first owner of record was Manuel Nieto who received the land in 1784 as a part of a land grant from King Carlos III of Spain. Nieto later divided his land into six cattle and horse ranchos, two of which encompassed Signal Hill (Rancho Los Alamitos and Rancho Los Cerritos). Later purchased by New Englanders, the ranchos were used mostly for grazing and agriculture in the 1800's. A harsh winter in 1862, drought and other financial hardships resulted in the sale of the ranchos to the Bixby clan, who used the land to raise sheep.
By the turn of the 20th Century, stately mansions had begun to dot the hilltop, as the value of the panoramic view became evident. However, by 1917, the prospect of striking oil on the hilltop surpassed the value of the view and the Union Oil Company drilled the first oil well in the area. The well failed to produce any oil and it was abandoned with further exploration suspended. The Royal Dutch Shell Oil Company resumed exploration and hit pay dirt on June 23, 1921 with a 114 foot "gusher" at Alamitos Well #1, marking a turning point in Signal Hill's history. By the fall of 1923, 259,000 barrels of crude oil were being produced every day from nearly 300 wells. By the 1940’s, the number of wells on “Porcupine Hill” had grown to 20,000. Ultimately one of the richest oil fields in the world, Signal Hill produced over 1 billion barrels of oil by 1984. The field is still active and produced over 1.5 million barrels of oil in 2002 alone.
Signal Hill, completely surrounded by the City of Long Beach, had been located in unincorporated territory. In 1924, in order to avoid Long Beach's per-barrel tax on oil, Signal Hill's founding fathers voted for incorporation. Right from the beginning, Signal Hill proved to be a progressive city, electing Jessie Nelson as California's first female mayor.
Oil production continued to be Signal Hill's mainstay until declining oil prices reduced production in the 1970's. In 1974 the Signal Hill Redevelopment Agency was formed and the city focused on economic development and diversity from oil. The oil rigs that once heavily dotted the hillside now give way to lots with picturesque views for upscale single-family residences, high-quality retail commercial developments, and modern, clean industrial parks. The City has invested millions of dollars in infrastructure improvements, such as new water reservoirs, installation of synchronized traffic signals along the major traffic corridors, and street-widening projects, to service properly planned growth. In the early 1990’s, the city began to experience a residential resurgence with construction of luxury homes and the first few years of the 21st century has made Signal Hill a “boom town” for the second time with the construction of hundreds of such homes.
Today, Signal Hill is a well balanced, financially sound and economically diverse community of over 11,000 people. It has become an excellent place to live, work and do business with outstanding community services, an extremely low crime rate, a business-friendly climate, endless opportunities, and a bright future as a shining city on a hill.
