I n the book Fahrenheit 451, the protagonist is a fireman whose job it is to burn books. The science fiction story is a commentary on the damage done to society by an oppressive government — the annihilation of the human spirit caused by a government more concerned with staying in power than changing lives.
The bookstore Midnight Special has announced that it is closing permanently. This is yet another death that is directly attributable to local government. It would be unfair to say that the bureaucracy is the sole source of the destruction of yet another local business. But city officials certainly have their role in the mix.
The problems involved in moving a business are gigantic. The logistics of moving a retail store go far beyond finding a new location, calling the movers and opening up shop.
In a city as encrusted with rules and regulations as Santa Monica is, moving a business is just like opening a new one. And opening a new business in Santa Monica is a task of monumental proportions these days.
There are many reasons why a slow moving government is a killer to a business owner. In order to secure a new location, one will usually have to sign a lease. Landlords are curious creatures — they actually expect a tenant to pay rent, even if they are not yet allowed to operate a business.
It is the rare landlord who would allow a new tenant to move into a space, begin to make tenant improvements, such as bookshelves or a new kitchen, and not expect rent to be paid. A landlord might be willing to give a 30-day and possibly a 60-day hold on rent while construction is in process, but that is unlikely and very rare. For a business owner who is ether starting anew or moving, this drain on his cash supplies before he has any income is frequently fatal. The longer this drain goes on, the more likely it is that the business will open in an undercapitalized manner, which effects how much inventory it can have on hand for sales. A store without any inventory is not likely to last long.
In a city like Santa Monica, where it can easily take a year to do anything, that is a long time to be paying rent on a space that you are not doing business in. This is why businesses like Joe Pipersky’s donut shop eventually die. The city takes so long to issue their building permits that all the funds which would normally be used to buy marketing and advertising, carry inventory, and pay staff, end up going to the landlord for rent. That is not the landlord’s fault, it is City Hall’s.
To make this personal, let me share that my partner and I just purchased a home in the Pico district. We are intending to add on to the back of the house and put on a second story. This is completely within the general makeup of the neighborhood. There are apartments, single family dwellings, and reportedly some condos being built on our street. This should be a simple process.
I had heard horror stories from people about building in Santa Monica, and trying to get permits, but I figured they were exaggerating, as everyone is likely to embellish a story a little. So I walked into City Hall, sat down with the building and safety person and asked what my likely timeline for a building permit would be. To say I was flabbergasted is an understatement. I was told that it will be about two months for their office to review the plans. Then, because we are zoned R-2, the plan has to go to the Architectural Review Board, which takes three months. If that wasn’t enough, we then go to plan check for them to review the plans, which takes between two and three months.
So at the earliest, it is a six-to eight-month process and that is assuming that no one makes any changes that have to be reviewed by anyone else.
Here’s the ironic part. City Hall delays the process so as to delay development and slow the growth of the city. A laudable aim. However, since the law of unintended consequences applies to all things, in this case, the only people who would be willing and able to afford and survive this process, are people like my partner and me, who have no kids, don’t want kids, and are a double income family. Or a real estate developer who would build condominiums on the lot — precisely the people that the city is trying to stop.
In their efforts to restrict growth, the City Council has created a system that is pricing out people of modest means, and is building a city that is going to be precisely the opposite of what it wants. I have no doubt that had we not bought this property, it would become condominiums. It is a prime target for that type of dense development.
Oppressive governments don’t all look like Iraq, Cuba and the former Soviet Union. They can look like an open, free flowing, love everyone, anti-growth, group of do-gooders who don’t understand basic economics. Like the impending war in Fahrenheit 451 that was ignored by the population until it was too late, this city is in trouble, big trouble.
Businesses are dying, refuse to open here, or are leaving for safer pastures. The good news is that the City Council probably has an outside contractor looking into the problem, and they should have some solutions for us, but not until after the next election. (David Pisarra is a lawyer in the law firm of Pisarra & Grist. He (310) 664-9969 or by e-mail at He welcomes your comments and questions).
Originally published in the Santa Monica Daily Press print edition on May 11, 2004. Read the original PDF.