> ## Content Index > Fetch the complete content index at: https://www.smdp.com/llms.txt > Use this file to discover other available public pages before exploring further. # Uncertain about assessment - URL: https://www.smdp.com/uncertain-about-assessment/ - Published: 2008-02-14T16:00:00.000Z - Updated: 2026-10-24T18:29:15.000Z - Author: Kevin Herrera - Tags: Community, Downtown, #archive-import *Downtown residents, merchants air concerns regarding district plan* DOWNTOWN Everyone here seems to agree that Downtown’s continued success depends on making sure it is clean and safe, has ample parking and offers a unique shopping experience that favors the pedestrian. How to make sure that happens is where things get complicated. Residents and some business and property owners in Downtown are still unsure if they want to assess themselves to the tune of $3.7 million annually to pay for additional services that would make the area more attractive and secure. “I like what I’m seeing, but I can’t support it at this time until I see these suggestions included,” said Fourth Street resident Cosmo Bua, who was referring to comments made by residents who wanted some money collected to be set aside for the planting and maintenance of street trees. The assessment, which would be in addition to the roughly $1 million collected annually in the Bayside District that covers the Third Street Promenade and surrounding streets, would enhance maintenance with a focus on the alleys, boost marketing and special events, and create an ambassador program to guide visitors to hot spots, answer questions and possibly escort reside nts and employees to their cars at night. Progressive Urban Management Associates (PUMA), a consultant out of Denver, has for the last 18 months been working with the Bayside District Corp., a public-private company that manages and promotes Downtown, on formulating a new business improvement district. The district would cover the area bounded by Seventh Street to the east, Wilshire Boulevard to the north, Ocean Avenue to the west and the I- 10 Freeway to the south. Members of the Bayside board, which is comprised of residents, merchants and property owners appointed by the City Council, felt a study of the management structure and assessments in Downtown was necessary for the area to remain competitive with shopping districts in the region like The Grove, Old Town Pasadena, Rodeo Drive and Melrose. One assessment district was formed in the late 1960s, while the Bayside assessment was formed nearly 20 years ago when the promenade was created. “Downtown has changed,” PUMA President Brad Segal said.“(Bayside) has not.” Among the concerns expressed by a handful of residents and merchants during meetings held Tuesday with PUMA and Bayside officials were the make-up of the board overseeing the business improvement district, the weight given to votes cast by property owners with more square footage, and the cost some would have to pay per square foot. Jeff Segal of Segal Enterprises (no relation to Brad Segal), which owns and manages two office buildings in Downtown, said he didn’t see why he should have to pay an assessment that could be as high as $.81 per square foot — amounting to tens of thousands of dollars — each year since he already does a good job of keeping his properties clean and secure. “Don’t force it on my street,”Jeff Segal said. Residents wanted assurances that the board of the new assessment district, which would need to be approved by the City Council and by property owners and residents in the district, should be prescribed with a set number of residents who do not own property or businesses in the district so as to not be conflicted. So far the plan is to break the board up into two groups of seven, with one group comprised of council appointees and the other chosen by property owners. The tie-breaker seat would be left to the City Manager to fill, making a total of 15 seats on the board. Residents also had issues with weighted votes. Under state law, property owners who pay the most in assessments have a greater say in the process. Residents feared this would mean that a handful of property owners on the promenade, where the assessment would be the highest, would be able to unite and approve of the new business district even though they would not represent a majority of people to be affected. Under the current proposal being vetted by the public, the district would be broken up into three zones, one covering the promenade, another from Ocean to the middle of Fourth and a third that would cover the eastern portion of Downtown. Those in the second zone would most likely pay an assessment of $.40 a square foot. Those in the third zone, which is farthest from the Promenade, would pay $.20 a square foot. Jeff Segal suggested each zone be given the opportunity to vote on whether or not they want to be included in the district. If zone three or two decided they did not want to participate, that would not stop the others from moving forward. He added that would be the best way to go about it since it would not be an all or nothing. Brad Segal said he would bring that suggestion to a working group that will make a final recommendation to the council for approval. “If there’s anything kind of crazy, now’s the time to address it,” Brad Segal told property owners and merchants Tuesday. He said that breaking up the vote so that one zone could opt out of the district was “definitely worthy of discussion.” Dentist Glen Tistaert of Tistaert Dental on Seventh Street said he liked the idea of adding more services but was concerned about the amount he would have to pay and how he could remain competitive with other dental offices that would not have to pay the fee. Dental insurance companies pay a fixed fee for procedures regardless of the location of the office. “What’s to stop people from going to someone on 20th and Wilshire to do the same procedure for less?” Tistaert asked. How businesses will be able to sustain the new assessment was a topic of discussion, particularly how it would impact small, family-owned businesses. If the assessment becomes too burdensome, that could force small businesses to close, losing some of Downtown’s charm and unique character, some of which has been eroded by the arrival of chain stores on the promenade. Non-profits also weighed in. Representatives with the YMCA expressed some displeasure at having to pay the assessment, which would be lower for non-profits and residents since they would not be getting the full benefits of the assessment,mainly marketing and promotions. The current formula has non-profits paying $. 29 a square foot, meaning the Salvation Army on Fourth Street would have to pay $4,540 a year. Representatives with the YWCA told Brad Segal and Bayside to put a red light on the proposal and go back to the drawing board. Residents seemed to be in favor of the assessment and the realignment of the Bayside board because they felt it would set aside money for more trees in Downtown as well as parking. Bayside would also have more say as to what goes on in Downtown and could better intervene on behalf of residents. Jacquie Bailey, a resident living on Second Street at Santa Monica Boulevard, said she has a hard time finding parking and would love it if she could get a parking permit to park in one of the structures downtown in exchange for paying the assessment. As a renter, Bailey will have no vote in the process but will have to pay the assessment when it is passed down to her by her landlord. “If I’m a resident paying for this stuff, I would like (parking) taken care of,” Bailey said. Her neighbor, Jason Oliver is hoping that something can be done about street cleaning during the early morning hours. He understands that he lives in a busy business district with bars and restaurants open late at night, but he feels some consideration should be given to Downtown residents who are trying to get some sleep. Brad Segal said he would take the suggestions to the working group, which will refine the plan and present it to Bayside. If endorsed, a petition campaign would begin to secure property owner support. The City Council in the summer would then draft an ordinance to create the district and a mail ballot would be circulated. Brad Segal estimates the new assessment and business district would be in effect in January of 2009. *Originally published in the Santa Monica Daily Press print edition on February 14, 2008.* [Read the original PDF.](https://s3.us-east-1.amazonaws.com/smdp%5Fbackissues/021408.pdf?ref=smdp.com)