District might raise the fees paid by merchants
DOWNTOWN — Despite financial constraints, officials in the Bayside District have high hopes of making big changes in the coming years to attract more tourists to the area.
Board members of the Bayside District Corp., which manages a 30-block area downtown in conjunction with City Hall, recently approved next year’s proposed $961,900 budget, along with its operations and marketing plan.
It includes new parking and movie theaters, as well as programs that will bring more services to visitors and capital improvement projects that will clean up the area.
Many of the ideas have been batted around for years with no tangible results. However, it does appear that change will be inevitable once plans to redevelop the faltering Santa Monica Place Mall become a reality.
After three years of no increase, City Hall will give Bayside 2 percent more in its subsidy this year, or $620,900. Last year, Bayside received $610,418 from City Hall.
Bayside raised $336,000 on its own through filming and special events fees, as well as central business district assessments.
“It’s a healthy sign that a third of the budget is generated by Bayside,” said Kathleen Rawson, executive director of Bayside.
City Hall collects $2.3 million from four different fees assessed to property owners and tenants downtown, which is then transferred to the general fund and less than half is given to Bayside.
Some officials and merchants question where the rest of the money goes and think more of it should go into the Bayside District, especially since it’s the main economic engine that drives tourism.
That’s why Bayside hopes to continue adding to its revenue stream through its own means, such as special events and filming permits.
“The more we can generate the better,” said Bayside board member John Warfel.
But officials also recognize that new programs and services can’t be realized from current revenue streams. That’s why they are considering passing even more of the cost of doing business onto merchants and property owners through new assessments, as well as expanding the business district. If the estimated goal of $1 million a year can be raised, it will further Bayside’s goals.
“We need to find ways to create a downtown plan that is vital for the next 19 years,” Rawson told the board in June. She added that the Third Street Promenade has been largely successful over the past two decades because of the initial investments made to it. But now it’s time to re-invest.
City Hall already has committed to giving Bayside $3.4 million for capital improvements in the downtown area. A $91 million downtown parking plan also is in the works.
And even though it faces challenges, including limited financial resources in marketing in an increasingly competitive market, Rawson said she is excited about the possibilities.
“I don’t know what this organization looks like in 12 months, but it almost feels like a new job,” she said.
Originally published in the Santa Monica Daily Press print edition on August 1, 2005. Read the original PDF.