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# Coming to a consensus
- URL: https://www.smdp.com/coming-to-a-consensus/
- Published: 2008-02-26T16:00:00.000Z
- Updated: 2026-10-24T18:39:47.000Z
- Author: Kevin Herrera
- Tags: Business, Downtown, #archive-import

*New Downtown BID shapes up*

DOWNTOWN After roughly 18 months of work, it looks as if a new business improvement district for Downtown is taking shape and could go before the City Council for discussion in late March.

A working group comprised of residents, merchants and property owners has agreed on the make-up of the board that would oversee the proposed district, which would stretch from Seventh Street to Ocean Avenue, Wilshire Boulevard to Interstate 10.

The subject of much discussion, the board would include six members appointed by the City Council, another six selected by property owners paying assessments, and one seat to be held by the city manager or his or her designee, members of the working group said.

Members of the board would also have to come from each of the three assessment zones of the proposed district, which is expected to generate roughly $3.7 million a year for additional services that would make Downtown cleaner, more attractive and more secure.

That assessment would be in addition to the roughly $1 million collected annually in the Bayside District that covers the Third Street Promenade and surrounding streets.

“This was a big accomplishment,” said Kathleen Rawson, executive director of the Bayside District Corp., a public-private management company that advises City Hall on matters related to Downtown and a driving force behind the creation of a new business improvement district.

“There have been some legitimate concerns about the make up of the board on behalf of property owners, business owners and … residents … on what they want the City Council’s function to be,” Rawson said. “There was also some talk about having prescribed seats or not having them.”

Many merchants and property owners felt is was imperative that they have some representation on the board since they will be paying the majority of the assessment, while residents and elected officials expressed concern about giving to much power and control away given that Downtown is the city’s “living room.” Currently the council appoints all members of the Bayside board.

The working group as a whole did not recommend having prescribed seats, but instead adopted a philosophy when it comes to selection. The members said they want to ensure that all stakeholders are represented on the board, but realize that not everyone will be able to volunteer, so setting aside a certain number of seats for one constituency may not be practical, Rawson said.

The working group also agreed that the new district, if approved by a majority of those who are to be assessed, would be good for 20 years, but require a vote by the property owners after 10 years to determine if it should continue. The working group also discussed restructuring the business license tax so that hotels in other areas of the city would pay more to help fund an ambassador program since those hotels would see some benefit.

Under the proposed plan, assessments would be based on the property’s size and location. A property on the popular promenade would pay the most at 88 cents a square foot, while properties on neighboring Second and Fourth streets and Ocean Avenue would pay 44 cents, while those on Fifth to Seventh streets would pay 22 cents.

A series of community meetings to discuss the details of the proposed BID are scheduled for March 5, with hopes of bringing a final draft to the council for discussion on March 25, said Rawson, who admits there is still a lot of hard work ahead as she and other supporters try to convince property owners in the district to pay more.

“Typically when a district like this is proposed, it’s because the area is run down,” Rawson said. “This is a hard pitch because (property owners) can only go up. The challenge is that people can be content and happy with the way things are and our job is to help people focus on the future.”

*Originally published in the Santa Monica Daily Press print edition on February 26, 2008.* [Read the original PDF.](https://s3.us-east-1.amazonaws.com/smdp%5Fbackissues/022608.pdf?ref=smdp.com)