Greater Promenade Association wants more control of assessments for downtown
DOWNTOWN — Business leaders are saying some may have to pay more money if they want stepped-up services downtown.
Board members of the Bayside Business District Corp. — a nonprofit organization that manages downtown Santa Monica along with City Hall — are looking into ways of securing more money to increase services in and around the Third Street Promenade. In order to do that, Bayside might expand the district and change its fee structure by which businesses and property owners are assessed by City Hall.
Board members have set their sights on an extra $1 million to pay for improved street lighting and landscaping in the area. According to Bayside Board Chairman Bill Tucker, the money also would likely go toward the new ambassador program — hiring individuals to guide visitors and help manage the bustling downtown area, as well as serve as watchdogs for illegal activity.
How to pay for the new ambassador program, which is estimated to cost $500,000 annually, and other programs remains an issue.
Currently, businesses located within the district — between Wilshire Boulevard and Broadway, and Second and Fourth streets — pay City Hall $791,000 a year to maintain the Third Street Promenade, said Miriam Mack, city economic development manager. That breaks down to as much as $22,000 per year for some downtown businesses, Mack said.
Property owners who don’t provide on-site parking are collectively assessed $500,000 annually, which pays for facility operations, maintenance and improvements.
In addition, property owners also pay an assessment that goes toward the debt service on bonds issued to make improvements on the Promenade. Next year, that assessment will be about $1.1 million.
The central business district — comprised of businesses between Ocean Avenue and Seventh Street, from Wilshire Boulevard to the I-10 Freeway — pays $200,000 annually for Bayside’s promotional fees.
However, Bayside’s operational income has not changed significantly in the past few years, said Rob York, Bayside’s financial consultant. The budget averages approximately $900,000 per year, $608,000 of which comes from City Hall.
As a result, York said Bayside has been unable to provide the level of service it would like to for guests.
“The budget hasn’t moved much, so a lot of this is just trying to maintain the current level of services,” York said.
Tucker said one way Bayside is looking to increase its revenue is to invite businesses and property owners beyond the Third Street Promenade to join Bayside.
Additional assessments from those groups may help fund the ambassador program and other downtown projects.
Tucker said he is part of an informal group of commercial property owners based on or around the Promenade, called the Greater Promenade Association, which has hired a business consultant who specializes in the creation of business districts and assessments.
Tucker said some members of the GPA are frustrated by the way City Hall assesses fees. They would rather have more direct control of funding in order to prioritize how money is used downtown.
“Property owners are trying to unite in a group that will advocate assessments that will make sense and will be used for the district as a whole,” Tucker said.
Tucker said one group that might become interested in joining up with downtown business efforts is Macerich, Inc., which owns Santa Monica Place Mall.
As plans are expected to come forward to re-develop Santa Monica Place in coming months, Macerich might find it worthwhile to unite with downtown business leaders to support mutually-beneficial projects, Tucker said.
Another approach to increase revenue for downtown would be to increase the actual fees businesses are assessed, an option being explored by City Hall.
Mack said the idea is still in its formative stage. However, if it is to be successful, she said it would be imperative that money being raised would go toward programs in which those who stand to benefit most pay the most.
“Before anything is presented to (Bayside), we want to have a clear idea exactly how much they want to raise assessments, how businesses would benefit from them, and what their share would be,” Mack said.
“Before anything is presented to (Bayside), we want to have a clear idea exactly how much they want to raise assessments, how businesses would benefit from them, and what their share would be.” — MIRIAM MACK City economic development manager
Originally published in the Santa Monica Daily Press print edition on July 22, 2005. Read the original PDF.