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# Economy on rebound
- URL: https://www.smdp.com/economy-on-rebound/
- Published: 2004-08-17T15:00:00.000Z
- Updated: 2026-10-23T04:52:07.000Z
- Author: Carolyn Sackariason
- Tags: Business, Santa Monica, #archive-import

*Santa Monica Place holds steady in sales tax revenue*

If the first quarter of 2004 is any indication, the Santa Monica economy appears to be on an upswing.

Sales tax figures recently released by City Hall show that sales tax receipts for the months of January through March 2004 were up an estimated 7.5 percent over last year, said Steve Stark, city finance director.

The figures should make City Hall officials breath a sigh of relief. Previously facing a $4 million budget shortfall for this fiscal year, City Hall financiers planned for a 3.5 percent increase in sales tax revenue for this year. Though the first quarter figures exceeded projections, officials aren’t ready to spend the extra money.

“We’re pleased that sales tax is up but we certainly don’t make adjustments yet,” Stark said.

“The local economy appears to be recovering based on recent sales tax revenues and the gradually improving economy at state and national levels,” Stark added. “However, uncertainty still exists regarding the overall strength of the economic recovery, reflecting the city’s cautious optimism that the sales taxes will continue to increase at a moderate rate. In addition, there are still serious discussions ongoing in the state legislature to reduce local governments’ ability to generate sales tax revenues that could impact Santa Monica.”

The first quarter sales tax figures compares to a statewide adjusted increase of 6 percent and a countywide adjusted increase of 4.9 percent, city officials said.

In Santa Monica, business along Colorado Avenue was up the most — by 29 percent. The second highest generator was the Third Street Promenade, which had a 23.9 percent increase. The Bayside District, which encompasses most of downtown Santa Monica, came in third with a 22.9 percent increase. Ocean Avenue and Wilshire Boulevard also fared well with a 21.8 increase and 21.7 percent increase, respectively. The increases primarily relate to increased economic activity as well as the opening of new businesses, city officials said.

Business districts that saw decreases over the last year were Pico Boulevard with a 1.2 percent drop and businesses around the Santa Monica Airport, which saw a drop of 1.1 percent.

Santa Monica Place, which remains in limbo pending a massive renovation, has-n’t fared as well as it has in the past. Although the mall’s contribution of sales tax revenue to City Hall rose 6 percent this past quarter over the same period from last year, it remains steady from a historical perspective. That’s because when comparing the first quarters of 2002 and 2003, the mall was down 6 percent.

“It’s nearly back to the 2001 level,” Stark said. Santa Monica Place Mall has experienced a decrease for seven consecutive quarters up until earlier this year, according city documents.

For the first quarter this year, general consumer retail goods in Santa Monica were the strongest business group with significant increases from women’s apparel, 17.2 percent; family apparel, 16.8 percent; and specialty stores, 9.8 percent due to increased demand and new businesses opening within the last four quarters, city officials said.

Restaurant and hotels increased 12.3 percent from the first quarter of 2003, due in large part to new businesses, officials said. New vehicle sales decreased by 1.2 percent from first quarter 2003 and auto leasing decreased 14.8 percent. Service stations increased by 32.8 percent. While some of that increase can be attributed to higher gasoline prices, most relates to the receipt of late payments from the prior quarter.

*Originally published in the Santa Monica Daily Press print edition on August 17, 2004.* [Read the original PDF.](https://s3.us-east-1.amazonaws.com/smdp%5Fbackissues/081704.pdf?ref=smdp.com)