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# City leaders talk money
- URL: https://www.smdp.com/city-leaders-talk-money/
- Published: 2008-01-16T16:00:00.000Z
- Updated: 2026-10-24T17:59:08.000Z
- Author: Melody Hanatani
- Tags: Business, Downtown, #archive-import

*Sen. Feinstein highlights State of the City address*

DOWNTOWN National economic trends have trickled down to Santa Monica, a city experiencing less than fruitful times with sales tax revenues declining and the tourism industry seeing warning flags pop up, possibly a sign of harder times to come.

Such concerns were mentioned during a panel discussion at the first ever State of the City address, a Santa Monica Chamber of Commerce-sponsored event held at the Fairmont Miramar Hotel on Tuesday afternoon.

The discussion on the economic matters of the city brought together local business and city leaders, with a panel including Mayor Herb Katz, Chamber President Laurel Rosen and board Chairman Tom Larmore, Bayside District Corp.’s Executive Director Kathleen Rawson, who manages downtown Santa Monica, and Misti Kerns, the chief executive officer of the Santa Monica Convention and Visitors Bureau.

“We know the economy is precarious,” Katz said.“We live in a vibrant city that is diverse... and with any kind of coop-eration, we should be able to weather (the recession).”

Sen. Dianne Feinstein, D-Calif., rounded out the list of speakers by discussing national issues and how they affect Santa Monica locally. Approximately 300 business owners, civic leaders and residents attended the event, Rosen said on Tuesday. A follow-up event is expected in July.

“The original concept was to talk about the economic outlook in 2008, to have the city there, the Convention and Visitors Bureau, the Bayside District Corp. and the chamber and mayor, all coming together to discuss the future,” she said.

Former Santa Monica Mayor Nat Trives asked each panelist to speak on issues related to their sector of the city, touching on initiatives that Santa Monicans can expect to see in the future.

Sales tax revenues in the city have declined the past few quarters, most notably auto sales taxes, which normally account for about 22 percent of the total sales tax pool, according to City Manager Lamont Ewell.

“Santa Monica is really fortunate community because we have a diversified tax (base),” Ewell said. “We don’t have all of our eggs in one basket.”

Leaders in the local tourism sector have seen a departure in trends of the past several years — spending by domestic tourists exceeded that of their international counterparts by 11 percent in the past year, Kerns said.

It’s not a welcoming change. International tourists are more likely than out-of-state American travelers to spend more money, stay longer in the hotels and use public transportation, Kerns said.

While the shift toward domestic tourism is a concern, the hospitality industry saw the highest hotel occupancy rate — 83 percent — last year, bringing in an estimated $32 million in transient occupancy taxes. But the average stay of tourists declined last year, from three to 1.5 nights, Kerns said. The ongoing issue of retaining the local workforce was raised by Larmore, who said one of the goals of the chamber would be to work closely with City Hall’s drafting of the Land Use and Circulation Element (LUCE), the update of the general plan that will outline the developmental future of Santa Monica for the next 20 years. The chamber has particular interest in the development of workforce housing and public transportation, Larmore said.

“As problems persists, it leads to ill-conceived initiatives,” Larmore said, referring to a proposed measure by the Santa Monica Coalition for a Livable City to place limitations on commercial development.

The keynote address came from Feinstein, who contacted the chamber recently about speaking at the event, Rosen said. The three-time senator spoke mainly on national issues and legislative bills making its way through the chambers, including environmental measures, an interest of many Santa Monicans.

“What happens if global warming hits this beach city?” Feinstein asked.“Eventually it’s a wipe-out.”

*Originally published in the Santa Monica Daily Press print edition on January 16, 2008.* [Read the original PDF.](https://s3.us-east-1.amazonaws.com/smdp%5Fbackissues/011608.pdf?ref=smdp.com)