SR-106-013
........,.
-'" . . /1- A
.
"I
10(;, - Of3 SfP 2 3 1'86
C/ED:JJ:LCB:Pc:wp
council Meeting: Sept. 23, 1986 Santa Monica, california
TO: Mayor and City Council
FROM: city Staff
SUBJECT: Recommendations Regarding the Creation of an Economic
Development Working Group
INTRODUCTION
This report responds to certain recommendations made by the
Chamber of Commerce Economic Development Task Force. It
recommends that a Working Group on Economic Development be formed
to enhance and regularize communication between the City Manager
and the business community on a wide range of issues which impact
economic development in the City of Santa Monica.
BACKGROUND
On January 9, 1986, the Chamber of Commerce issued the report of
its Economic Development Task Force. The Task Force was created
by the Chamber in January of 1985 to examine economic development
issues in the City. The creation of the Task Force was initially
motivated by GTE's announcement that it would be relocating its
corp~rate headquarters outside of the city, but the Task Force
considered broader issues during its yearlong existence. While
the Task Force included representation of both the public and
private sectors, only the private sector representatives took
action on the group's findings and recommendations, as the public
sector members would eventually be requested to act upon them in
their official capacities.
II~-A
- 1 -
SEP 2 3 1986
~
1'"
.
.
...
Task Force Report
The Task Force agreed upon goals for Santa Monica, which were
stated in the report as follows:
...Santa Monica's overriding economic development goal
should be to provide reasonable growth, opportunities
for jobs, and revenues to support City services in an
environment that will continue to make Santa Monica a
desirable place to live and work.
In analyzing how to achieve these goals I the Task Force made
several recommendations for the City's consideration. The
recommendations of the Task Force were divided into two
categories:
those for joint city/Chamber implementation, and
those for Chamber action.
The recommendations for joint action
incl uded outreach to maj or Santa Monica companies to encourage
them to remain in the City, and the development of a marketing
strategy to promote Santa Monica as a location for businesses.
The Land Use pOlicies of the city were the subject of several
specific recommendations including a City commitment to the Land
Use Element; the adoption of the zoning Ordinance, the Local
Coastal Plan and various specific plans; a permit streamlining
process; a vested rights ordinance; the revision of the Housing
1
Element; and preparation of an updated "Guide for Property
Development" .
Further recommendations included formulation of an economic
development strategy for the City, with a focus on tourism; the
furtherance of specific development proj ects such as the Mall,
- 2 -
.
.
the Airport, the Civic Center, the Pier; and transportation
improvement proj ects such as freeway ramps.
The report
recommended that all city policies and practices regarding
development be periodically re-evaluated.
One significant recommendation of the report was the creation of
a Santa Monica Economic Development Council, an advisory body of
public and private sector representatives which would be jointly
appointed by the Chamber and the City Council. The role of this
body would be to enhance communication and to facilitate the
fulfillment of many of the recommendations outlined in the
report.
RESPONSE TO RECOMMENDATIONS
Many of the recommendations of the report are already underway in
the public arena through the efforts of the ci ty and
City-sponsored corporations.
The revitalization of the Pier,
Mall, and civic Center areas are proceeding through the PRe, the
TSDC, and City staff. The Airport residual land is being readied
for development on schedule.
Tourism is already accepted as a
major economic focus for the City, as evidenced by the City's and
Chamber's support for the Convention and Visitor's Bureau. The
Planning
1
Commission
is
currently
reviewing
the
draft
Comprehensive Zoning Ordinance, as well as considering revisions
to several key components of the Housing Element. city staff is
currently analyzing potential improvements to the city permit
processing procedures, and plan to publish a revised Guide to
Property Development as part of this process.
- 3 -
.
e
Thus, staff believes many of the areas of concern to the Chamber
Task Force are already established as priorities for the City,
and do not require additional emphasis. However, staff does
believe that there are other, equally as important functions
which an Economic Development council would serve.
Working Group on Economic Development
Staff believes the creation of a Working Group on Economic
Development would accomplish the goals set forth in the Task
Force report as well as greatly assist the city staff by
establishing a forum for discussion and advice on a wide range of
topics. The working group model has been successful in the past
on the issues of the Airport, Main street zoning and the problem
of the homeless. The Working Group would be established by the
city Manager and meet on a quarterly basis.
The purpose and
characteristics of the Group are defined as follows:
1. purpose
The primary purpose of the Working Group would be to foster
communication between City residents, the business community and
representatives of City government, which, in turn, increases
community-wide understanding of economic development decisions
made:in the City and insures that adequate input is received by
all concerned. The Group will be advisory in nature, working
with staff and the City Manager to discuss economic development
issues of interest.
In addition, the city is fortunate to have a wide diversity of
talented resources in its residents, organizations and businesses
- 4 -
~
.
.
~
who could be drawn together to formalize a strategic planning
effort for the city. Such a group, comprised of representatives
from business, development, residential and City interests could
assist staff in developing an overall economic development
strategy for the City which is responsive to a balance of the
needs expressed.
Finally, formation of the Working Group could enable the city to
capitalize on the knowledge of the local business community and
others regarding factors affecting the economic climate in Santa
Monica and sound methods for improving that climate.
Specific areas of involvement may be:
- Cooperative problem-solving using private sector expertise in
technical areas of City activity:
- Advice and information to city Manager and staff regarding
current economic indicators on the westside:
- Development of approaches to attract/target/retain desirable
types of businesses for the community:
- Fostering dialogue and consensus building among
representatives of various segments of the community
regarding economic development needs and objectives.
2. Composition
In order to achieve a balance of perspectives on economic
development questions, the working Group would be comprised of
individuals representing both business and community interests.
The City Manager would designate approximately fifteen people to
serve on the Group, representing the Chamber of Commerce and
- 5 -
.
.
other business and neighborhood groups.
proposed list of organizations to be
circulated to the Council for information.
At the outset, the
represented would be
To facilitate communication and avoid duplication of effort, one
representative from each of the existing City corporations, the
pier Restoration corporation, the Third street Development
Corporation and the Convention and Visitor I s Bureau would be
asked to serve. The Group would meet on a quarterly basis,
unless more frequent meetings are warranted.
3. staffing
It is not recommended that significant staff resources be
dedicated to serving the needs of the Group. Rather, since the
purpose of the Group is advisory in nature, the intent is to tap
the knowledge and expertise of Group members to achieve its
goals.
4. Duplication of Effort
It is important that the Working Group be structured so as not to
conflict with or duplicate the efforts of existing organizations.
Therefore, the Group will not work on issues involving the Mall,
the Pier, tourism, etc., individually, although it may broach
issuds that include these concerns as part of broader economic
development considerations. The presence of representatives from
each of these bodies on the Group will ensure that efforts are
not duplicated and that the perspectives of these other bodies
will be taken into consideration by the Working Group.
- 6 -
In addition, it lItrecommended that the wor~g Group not focus
on planning issues, such as the draft zoning code now under
consideration by the Planning Commission. However, there may be
specific development issues, such as permit processing or in-lieu
fees that would be appropriate for Working Group consideration.
BUDGET/FINANCIAL IMPACT
It is not anticipated that a budget is necessary for the
functioning of the Working Group. Modest levels of staff support
will be provided by the Department of Community and Economic
Development.
RECOMMENDATION
It is respectfully recommended that the City Council authorize
the city Manager to establish a Working Group on Economic
Development to meet on a regular basis to advise the City and
staff on matters relating to economic development.
Prepared by: John Jalili, City Manager
Lynne C. Barrette, Assistant City Manager
Peggy Curran, Director
Department of Community and Economic Development
Julia Griffin, Senior Management Analyst
Attachments: Report of the Economic Development Task Force of
the Chamber of Commerce.
(ecodevo)
- 7 -
.. ,
E, .
., ,
(
(
(
(
l-.
(
'-
I
~
.
.
REPORT OF THE SANTA MONICA AREA
CHAMBER OF COMMERCE
ECONOMIC DEVELOPMENT TASK FORCE
January 9, 1986
For further informatlon, contact:
CHRISTOPHER M. HARDING
Chair
Economic Development Task Force
(213) 393-1007
f.
.. .
(
{
(
(
....
(
(
(.
'-
.
.
TABLE OF CONTENTS
I.
INTRODUCTION .................................
II.
WORK PLAN .............................. III .. . . . . . . ... .. .
III.
TASK FORCE FINDINGS AND RECOMMENDATIONS ......
A.
Find i ng s ...................................
B.
Recommendations for City or Joint
City/Chamber of Commerce Action .........
C.
Recommendations for Chamber Act~on ......
IV.
CONCLUSION ...................................
Appendix "An - Membersh~p Roster
Appendix "Bn - Implementation of Work, Plan
r
CMH1/60~06
pag-e
1
4
4
5
10
17
18
Co
.. ,
(
r
\
(
,
t
r'
(
\.
L
.
.
I.
INTRODUCTION
In January, 1985, Santa Mon~ca Area Chamber of Commerce
President, Martin Gottlieb, appointed a blue ribbon task force to
examine economic development issues in Santa Monica.
Although
appointment of the task force was initially motivated by GTE's
announcement
that it would be relocating
its corporate
headquarters, the task force has focused broadly upon the diverse
economic development issues facing Santa Monica.
The task
force's work plan included identifying the problems affecting
economic development in Santa Monica, identifying opportunities
for
development,
develop~ng
a
series
of
economic
and
recommendations concerning how Santa Mon~ca can better address
the problems and opportunities of the future.
The task force membersh:Lp included representatives of
both the publ~c and private sectors with substantial experience
in economic development matters. A task force membersh~p roster
is attached to this report as Appendix A.
The findings and
recommendations, however, were adopted by the private sector
1
representatives only because the public sector representatives
will eventually be requested to consider and act upon this report
in the~r official capacities.
~
f,'
.' .
(
(
(
(
(
(
(
L
'--
.
.
During its initial meeting, the task force agreed that
Santa Monica's overriding economic development goal should be to
provide reasonable growth, opportunities for Jobs, and revenues
to support City services in an environment that will continue to
make Santa Monica a desirable place to live and work. The task
force agreed that this overriding goal should be pursued in a
manner consistent with the C~ty's land use policies as set forth
in the Land Use and Circulation Elements (ftLUCEft).
The task force also agreed on the importance of the
following subsidiary goals:
1. Establ ish a consensus on economic development
issues. We should take a positive approach whenever possible and
avoid polit~cal rhetoric.
2.
OVercome the City's lmage as an unattractive place
to engage in business.
3.
Develop an overall econom~c development strategy.
,
4.
Establish long-term consistency and predictability
1n City r s economic development policy.
Th~s r equi res stabl e
rules for development
and City officials who encourage
development withln those rules.
CMHl/60005
- 2 -
~
c;
.
. .
(
(
l\\
Si
Q
@
~
..:t'-
.
.
5.
Foster cooperation
between publ ic and private
sector leaders to address major public development issues,
including the Santa Monica Pier, the Third Street Mall, the Santa
Monica Airport and the Santa Monica civic Center.
6. Identify the economic development opt1ons
available in the marketplace, and decide which options should be
encouraged by public policy.
7.
Develop specific strategies to:
(a) Take better advantage of the City's greatest
asset -- the beach-front;
(b) Emphasize downtown rehabI11tat1on and
rev itallzation;
(c) Retain maJor Santa Monica bUSInesses (e.g.,
Rand, Lear Siegler, etc.>, and encourage other maJor companies to
locate here.
1
The task force then developed a work program to explore
these concerns further.
CMHl/60005
- 3 -
~
1:. .
. ,
(
(
(
(
(
r
....
,-
'"-
.
.
II.
WORK PLA..T'\f
The task force work plan for addressing these issues
cons1sted of five components.
These were:
(1) a series of
presentations at task force meetings by speakers k.nowledgeable
about specific economic development issues; (2) a coni identl.al
survey of top executives of current (and former) major businesses
in Santa Monica; (3) a written survey of small Santa Monica
businesses; (4) a questionnaire/survey identifying the economic
development programs in other California communi ties; and (5)
1nformation gathered from task force members.
Attached as Appendix B is a summary of the informat1on
gathered by the economic development task force. Based upon thl.s
information, and the discussions and deliberatl.ons of the task
force itself,
the task force adopted 1. ts findings and
recommendations.
III.
r
TASK FORCE FINDINGS ~~ RECOMMENDATIONS
The task force submits the followlng flndings and
recommendations for consideratlon by the Santa Monlca City
CMHl/60005
- 4 -
~
c.:
.' .
(
(
(
(
(
<'
....
.
.
Council and the Board of Di rectors of the Santa Monica Area
Chamber of Commerce:
A. Findings:
1. Generally, Santa Monica is an attractive location
for both existing and new busLnesses.
Santa Monica has the
natural advantages of a good climate and close proximity to the
ocean.
It also has the economic advantages of a strong retail
market, excellent schools and hospitals, many cultural amenities,
a good public transportation system, good freeway access, a large
and well-educated labor pool,
population.
and an affluent westside
2. Bowever, Santa Monica has suffered in recent years
from a poor business image.
This is largely due to the
adverserial role often assumed by the City vis-a-vis the business
c?mmunity. More specifically, Santa Monicals business lmage has
suffered from enactment of rent control in 1979, retroactive
application of the 1981 building moratorium and the interim
development guidelines which followed, and the adverse publicity
,~
generated by these events.
This problem was accentuated by
adoption of the Housing Element in January, 1983. Thus, Santa
Monlca developed the unfortunate reputation of a very difficult
place to conduct business, and has been referred to as lithe
People's Republic of Santa Monica.ft
CMHl/6000S
- 5 -
~
~
. , .
(
(
c
(
.
.
3. Since 1983, the Clty has made substantial progress
in addressing its business image problem. With the support and
leadership of former Mayor Ken Edwards, former City Manager John
Alschuler and many other leaders In the publ1C and private
sectors, a more cooperative relationship developed between the
Ci ty and the business community.
This lead to adoption of the
Land Use and CIrculation Elements (WLUCE~) 1n October, 1984 with
widespread community support, Including the Chamber of Commerce.
4.
In addition, this developing spirIt of cooperation
between the City and the business communIty is eVldenced by the
format1on and success of the Santa MonIca Convention and Visitors
Bureau, a joint City/Chamber project lntended to promote tourism
in Santa Monica,
and formatlon of the Pier Restorat1on
CorporatIon ("PRC") and the Thlrd Street Development Corporation
cnTSDC~). The PRe and the TSDC, wh~ch have slgnificant business
representat10n on their respectIve boards of directors, were
created by the City to address the protracted economlC
development problems of the Thlrd Street Mall and the Santa
Monlca Pier.
p
"
s.
The City has approprLately deterrnlned that tourism
is a key element of the City' s emerging econom~c development
strategy.
The City's comm1tment to tourism was recently
CMHl/6000S
- 6 -
r
1 .
.
.
confirmed by the City Council's approval of a major new hotel on
Ocean Avenue.
6. Notwithstanding this recent progress, however,
Santa Monica is still suffering from its Wanti-business" image.
Thus, it is important that the City and business community work
cooperatively to address the economic development problems and
opportunities of the future, and avoid the acrimony of the past.
7.
Santa Monica's agenda of economic development
problems and opportunities include the follow1ng:
(a)
Private Develo~ment.
Santa Monica needs to
devise methods to retain existing businesses and encourage new
businesses to locate here consistent with the City t S land use
policies.
This should include use of incent1ves where
appropriate (e.g., Third Street Mall).
(b)
Land Use.
This includes adherence to the
LUCB, adoption of a comprehensive zoning ordinance, adoption of a
local coastal plan, revlsion of the Housing Element, and adoption
r
of a specif1c plan for the Third Street Mall;
(c)
Public Develooment.
.
Revltal~zatlon of the
Th1rd street Mall, development of the Santa Monica Airport
CM.1:Jl/60005
- 7 -
~
.
.
residual
land,
redevelopment
of
the Civic Center,
and
redevelopment and restoration of the Santa Monica Pier are key
items on the City's economic development agenda;
(d) Transportation. Santa Monica needs to insure
its linkage with any rapid transit network that is developed in
the Los Angeles region.
Santa Monica also needs to obtain its
fair share of federal and state funding for the freeway
improvements contemplated by the Circulation Element; and
(e) Vagrancy. Santa Monica businesses generally
believe that vagrancy represents a maJor problem, especially in
the Downtown area.
Concern about the vagrancy problem and its
impact on our community's quality of life is shared by the
residential community as well.
This prOblem also seriously
inhibits the City's ability to implement ~ts strategy of
promoting tourism as a key element of its economic development
strategy.
8. Santa Monlca needs to foster better communication
between top leaders of the public and prlvate sectors in order to
..
,-
maintain and improve the splrit of cooperation between the City
and the business community.
This spirit of cooperation is
essential
for
successful
lrnplementatlon
of
an
economlC
development program in Santa ~onica.
CMHl/600DS
- 8 -
..
f
.
.
9. Santa Monica also needs to improve the avenues of
(
communication
and
cooperation
between
the
business
and
residential communities.
(
10.
Santa Monica needs to adopt a clear economic
development strategy, including the following general elements:
(
(a)
A balanced program of office, retail and
visitor-serving
development
which
respects
the
private
(
marketplace. Tourism and convention activity should be a central
focus of thi$ strategy, with an emphasis on beach-related
development and activities;
(
(b) Revitalization of the Third Street Mall, the
Civic Center and the Santa Monica Pier should be key goals;
r
-
Cc)
The strategy should include a program for
retention of existing major Santa Monica businesses, and the
attract~on of new major bus~nesses to Santa Monica;
'-
Cd) The strategy should include predictability in
.
City land use rules and regulatlons, and a streamllned project
L
approval process.
'-
CMHl/6000S
- 9 -
"
.
.
B. Recommendations for City orJ'oint City/Chamber of Commerce
Action:
1. Business Retention and Attraction.
I . ., ~
(a) The City should develop a program to
facilitate the retent.ion of existing major Santa Monica
businesses, and encourage the location of new major businesses in
Santa Monica.
This should include an outreach program to major
Santa Monica companies. This outreach program should be designed
- -
to determine the needs of major Santa Monica businesses.
This
program should also identify what the City may do to assist them
in meeting their needs without leaving Santa Monica.
(b) A marketing strategy for Santa Monica as a
location for private economic development should be developed.
This should be a function of the Santa Monica Economic
Development Council (see recommendation B.4 below).
(c)
The City and Chamber should develop an
..
ongoing program to inform small businesses of various City
/
...lance
requirements 'and programs affecting small
)fficials with responsibility for enforcing
Idministerinq such programs, should be
business. .Key City .Jelopment
such requirements, ~ t "5
..evelopmen ....
avail able to C' h uld
~ the rules s 0
uestions on a regular bas~s at meetings jointly sponsor'
i ty and Chamber.
!1/60005
- 10 -
.
.
2. Land Use.
(a) Santa Monica needs to develop clear and
predictable land use rules and regulations. Although adoption of
the LueE was an important step in the right direction, the task
of adopting clear and predictable land use rules and procedures
is not complete. Santa Monica needs a clear and unequivocal City
commitment to adhere to the LOCE, a permanent zoning ordinance,
an adopted and certified local coastal plan, and adoption of
several specific plans (including the Third Street Mall plan).
(b) Permit processing procedures should be
streamlined to the extent possible. These procedures should be
incorporated in a local .permit streamlining act,. which requires
expeditious City decision-making on all land use applications.
As with the State Streamlining Act, projects should be deemed
approved if the City fails to meet the local streaml~ning
requirements.
(c) The City should adopt a clear policy against
changing the development rules win the middle of the game.w This
cati be accomplished by adopting a vested rights ordinance
providing that the rules applicable to a particular development
are those in effect at the time an appllcation for development is
filed w~th the City. Any subsequent changes ln the rules should
CMHl/6000S
- 11 -
.'
.
.
f
(
not apply if the applicant diligently pursues their proJect
without undue delay.
(d) The City~ in cooperation w~th the business
{
community, should review and thoroughly revise the Housing
Element and other City policies affecting private housing
<.
development in Santa Monica. CUrrent housing policies, ~ncluding
the combined impact of the inclusionary housing program in the
Houslng Element and the density restrictions in the LUCE, unduly
~ restrict the development of new housing in Santa Monica.
(
(
(e) The c~ ty ~ in cooperation wlth the business
community I should reV1.ew per iodically its development pol iei es
and practices to ensure they will facilitate responsible private
sector development.
(
......
( f)
Upon adoptlng a new zoning ordinance, the
l
City should update its IIGuide for Property Development," WhlCh
explains the Ci ty' s development approval process to property
owners and the general public.
::
CMHl/60005
- 12 -
~
.
.
3. Economic Development Strategy.
(a) The City, in cooperation with the bus~ness
community, should establish a clea~ economic development strategy
for Santa Monica.
(b) The City's economic development strategy
should include a balanced program of office, reta~l and visitor-
serving development.
Tourism should be a central focus of thlS
strategy.
(e) Speclfic publiC development proJects,
including the santa Monica Airport residual land, the Santa
Monica Pier and related beach-front development, the Ocean Park
beach-front improvements, the Civic Center, and the Th~rd Street
Mall should be cons~dered in terms of this overall strategy.
(d) The City, in cooperatl.on with the buslness
communi ty, should review perlodically its development pol icies
and practices (see recommendation B.2 (d) above) to ensure they
are consistent with this overall economlC development strategy.
4.
santa Monica EcononllC Develooment Council.
.
The
City and the Chamber of Commerce should Jointly form a Santa
Monica Economic Development Councll constituted as follows:
CMHl/60005
- 13 -
..
f.
.
.
(a)
Retlresentation.
The governing body should
(
include leaders from the public and private sectors appointed
partly by the City Council and partly by the Chamber of Commerce.
(
In terms of public sector representation, consideration should be
given to participation by the City Manager, the Director of
Community and Economic Development, the Planning Director, the
Mayor and one addi tional member of the City Council, and the
(
Chair of the Planning Commisslon.
In terms of prlvate sector
representation, cons~deration should be given to chief executive
officers of major companies, persons with real estate development
(
experience and the Chamber of Commerce Presldent. Consideratlon
should be given to including representatives of the Santa Monica
(
Convention and Visitors Bureau, the Third Street Development
Corporation and the pier Restoration Corporation. The governing
board should include leaders of the res~dential communlty.
'-
(b)
Goals and Purposes.
"
(i) Facilitate communication between publlC
,
...
and private sector leaders;
t
(ii) Develop an economlC development strategy
for the City and monitor its implementat~on;
CMBl/6000S
- 14 -
~
. .
. .
.
.
(iii)
Review City pol icies and practices
affecting economic development ln light of an adopted
economic development strategy and make recommendations for
change in City pollcies and practices.
Areas of interest
should include land use and zoning policies:
C1V) Develop and implement an economic
development marketing strategy for Santa Monlca.
ec)
Formal Authorlty.
Generally, the Santa
Monica Economic Development Council should be an advisory body.
It should not be given any formal decislon-making authOtlty. The
City may wish to contract wlth the Santa Monlca Economic
Development Council for the performance of speclfic tasks, but
only if this does not lnterfere with its other responslbillties.
Cd)
Funding.
The Santa Monica Economic
Development Council should be authorized to accept funding from
both publ ic and private sources to fund specific proj ects or
programs.
Its general budget, which should be modest, would be
provided jointly by the City and the Chamber.
1
ee)
Prohibited Activities.
The Santa Monica
Economic Development Councll would be prohiblted from engaging ~n
certa~n activitles, lncluding;
CMH1/60005
- 15 -
. .
(i) Political activ~ties; and
(ii) Advocacy of specific private development
proJects.
5. PubllC Devel,oflnent. The City should expedite the
following publ~c development proj ects as part of its overall
economic development strategy:
(a) The CiV1C Center. Although the Civic Center
appears to have taken a "back seat. to other City proj ects,
redevelopment of the Civic Center 1S crucial to the l'Itourist-
orientat~on" of the City' s emerglng economic development
strategy. Thus, redevelopment of the Civic Center should rece~ve
greater emphasis.
(b) Third Street Mall and Santa Monica Pier.
Both the Mall and the Pier require substantial public investment
to address the severe economic stagnat~on that exists. Both are
important components of a successful "tourist-orlented" economlC
development strategy.
1
(c) Santa Mon1ca A1 rport. Development of the 43
acres of residual land at the A~ rport will greatly improve the
City1s fiscal position.
CMH1/60005
- 16 -
. .
. .
.
.
Cd)
Transportation.
The LUCE focuses future
office development in the Special Office District.
Successful
implementation of this strategy will require significant freeway
improvements, as contemplated in the LUCE.
See Policies 4.3.3
and 4.3.4. The City needs to develop a program for expediting
these transportation improvements.
C. Recommendations for Chamber Action:
,
1.
The Chamber should develop a public service
information program for the local media (i.e., Evenin9 Outlook,
Los Anseles Times/West Side Section and possibly KSRF). The
messages should be focused in two general areas:
(a) Explaining the contributions of the business
community to the quality of life in Santa Monica.
(b) Stating "thoughtful" positions on important
issues facing Santa Monica.
2. At the beginning of each year, the Chamber should
establish clear priorities in its relationship with the City, and
then pursue vigorously its most important priorities. This
should be accomplished, among other ways, through regular monthly
meetings with the City Manager, the Mayor and other City leaders.
CMHl/60005
- 17 -
~
.
.
3. The Chamber should create a standing committee (or
task force) on land use and economic development matters
reporting directly to the Chamber Executive Committee and Board
of Directors. This committee should be responsible for advising
the Chamber on all land use and zoning matters (e.g., the
comprehensive zoning ordinance, revisions to the Housing Element,
etc.) and the City's economic development program. This
committee should be a strong advocate for business community
concerns on land use and economic development issues.
4. The Chamber should develop a program for
encouraging business leaders to serve on Santa Monica boards,
commissions and task forces.
,
...
IV.
CONCLUSION
,
..
The foregoing findings and recommendations have been
adopted by the Economic Development Task Force. We look forward
( to your response.
r
Respectfully submitted,
SANTA MONICA AREA CHAMBER OF
COMMERCE ECONOMIC DEVELOPMENT
TASK FORCE
By C~~~\,.~~
Chrlstopher M. Harding, Cha~r
CMHl/6000S
- 18 -
~
f. ,
.
.
APPENDIX -A-
~CONOMIC DEVELOPMENT TASK FORCE
(
Pete Barrett
Barrett's Refrigeration
r
Bob Gabriel
Bob Gabriel Company, Insurance
John V. German
Lier Siegler, Inc.
or
'"
Martin Gottlieb
First Federal Savings Bank
Mary Lee Gray,
Senior Deputy Supervisor
-Deane Dana1s Office
(
Christopher M. Harding
Lawrence & Harding
(
Laurie B. Heyman
Muselli & Heyman
John Jalili
City Manager
City of santa Monica
(
Oscar Katz
ParKS ide Medical Center
Dave Lederer
Rand Corporation
Ted Lennon
l Telekew productions, Inc.
Willi~m S. Mortensen
Presiaent
First Federal Savings Bank
The Honorable Christine Reed
Mayor
Nathaniel Trives
Former Mayor, City of Santa Monica
CMHl/60006
Tom Wafer
Santa Monica Evening Outlook
Ernie White
White & Company
c-
.
.
APPENDIX liB II
(
IMPLEMENTATION OF WORK PLAN
A.
Soecial Presentations:
,
[
Below is a summary of the key points made by guest
speakers during special presentations to the task force:
(
1.
Peggy CUrran:
On February 15th, the task force was
addressed by Ms. Peggy Curran, Director of the Department of
(
Community and Economic Development for the City of Santa Monica.
The highlights of Ms. Curran's presentation were as follows:
(
(a) The Land Use and Circulation Elements (ltLUCEtt) are
the key policy documents establishing the framework for economic
development in the City.
L
(b) The current focus of the Department of Community
c.
and Economic Development is public deve~opment proJects (i.e.,
the Pier, the Third Street Mall, the Airport and the Civic
Cenier), not negotiations with private developers.
l
(c) Generally, the Department believes there is no
need for City financial subsidies to stimulate economic growth.
However, the City can help in other ways. Ms. Curran referenced
1.
50944/2030
.
.
the Convention and Visitors Bureau efforts to encourage tourism,
thereby indirectly benefitting the business community.
(d) Ms. Curran listed the medium term
seven-year goals) of her Department as follows:
( five to
(i) Development of the Santa Monica Airport
residual land;
(i1) Redevelopment of the Third Street Mall;
(iii) Redevelopment of the Santa Monica Pier;
(iv) Redevelopment of the Civic Auditorium (which
may be redeveloped in concert with the Rand site);
(v) Development of a grocery store in the Pico
neighborhood.
(e) Ms. Curran listed the following long-term goals
currently being explored by her Department:
(1) A strategy for industrial retention as part
of an economic development program;
(ii) Stimulating hetel and visitor uses; and
2.
50944/2030
r.
", .
r
l
r
r
'-
(
,
....
l
(
L
.
.
(iii) Stimulating employment opportunities.
Ms. Curran stressed the importance of cooperation
between the public and private sectors in developing and
implementing a successful economic development program for Santa
Monica.
2.
Craig Ruth and Jim
Tooley
& Companv:
, I
Bill Tooley,
Williams (former City Manager of Santa Monica) addressed the task
- force at its March 8th meeting. During their presentation, they
emphasized the following points:
la) Bill Tooley stressed that Santa Monica needs to
establish economic priorities.
He recommended the following
priorities:
(i) Hotels;
(ii) Offices; and
J
(iii) Retail.
Mr. Tooley stressed that these three uses are
complimentary and consistent with Santa Monica's present economic
development.
They are also likely to generate the hiqhest
revenue for the City and the hiqhest employment.
3.
50944/2030
..
r.
,
.
.
(b) Mr. Tooley stressed that growth should be well
,.
focused in terms of location. Growth should occur in those areas
causing the least disruption to residents of the City.
(c) Mr. Tooley stressed the need to build consensus on
economic development issues in order to achieve progress.
(
...
(d) Craig Ruth, who manages the First Federal building
and the Wilshire Palisades Building for Tooley & Company,
stressed the following points:
,.
...
(i) Major tenants
locating
in Santa Monica
emphasize its qualify of life, proximity to LAX, and its
r
"-
labor poo 1.
Available labor is especially attractive for
attorneys, accountants and other professional firms;
c.
(ii) Prestigious
tenants
are
generally
not
attracted by low-rise office development. Most desire to be
l
located in attractive, high-rise bui~dings;
,
(iii) Santa Monica's significant vagrant population
has an adverse impact on the leasing of commercial office
space;
(hT) Some prospecthre tenants are um"illing to
locate in Santa Monica because its negative business image
4.
50944/2D30
~
[.
...... .
(
r
(
r
....
(
(
l
,
'-
.
.
may reflect adversely on the company. Mr. Ruth is concerned
that businesses may quietly leave Santa Monica because of
this.
Notwithstanding this problem, however, Santa Monica
has a low vacancy rate for office space, lower than the
regional average.
(e) Mr. Tooley and Mr. Williams indicated that Santa
Monica needs to focus its growth on the large parcels available,
including the Rand site, the Santa Monica Airport, the Civic
Center and the privately-owned properties in the eastern end of
the industrial corridor.
The community needs to decide where
deve lopmen t should go and where it should not go.
Mr. Tooley
stressed we can concentrate development on a very small
percentage of our land area where it will have the least adverse
traffic or other environmental impact.
3.
Tim Kuhn:
Tim Kuhn, President of the Matlow-Kennedy
Development Company, addressed the task fdrce on April 5th
concerning his company I s experience in a.ttempting to develop a
hotel/office complex in Santa Monica.
T
following points in his presentation:
Mr. Kuhn stressed the
(a) He believes Santa Monica is a good place, in the
long-term, for economic development and would like to develop a
project here, notwithstanding his prior experience.
5.
50944/2030
~
(-
.
.
(b) Matlow-Kennedy experienced great problems in the
(
permit processing area. Serious delays were incurred because of
the City.
r
(c) Most of the problems were the result of a lack of
clear development guidelines, including guidelines for the
payment of "in lieu" development fees.
f"
..
(dl Mr. Kuhn
emphasized
the
adverse
impact
of
- -City-imposed delays, especially in an economic environment of
r
...
volatile interest rates and shorter business cycles. He believes
it is imperative that the approval process be shortened.
r
....
4.
Beverly Moore:
Beverly Moore, Executive Director of
the Santa Monica Convention and Visitors Bureau, addressed the
task force on April 19th.
During her presentation, Ms. Moore
(
emphasized the following points:
ta) Tourism
is
California's
largest
industry,
(
involving $27 billion of expenditures each year.
We need to
begfn thinking of tourism as an export with a positive impact on
our balance of trade.
f
...
(b) In recent years, Santa Monica has begun to
appreciate the positive social and economic impact tourisr.t may
have on our community. Tourism is a top generator of new jobs,
6.
50944/2030
(-
. .
r
r
(
(
('
'.
(
(.
I
'-
.
.
and employs a disproportionately high number of teen-agers,
minorities and women heads of households. Thus, tourist activity
will assist the City in meeting its employment goals.
(c) Presently, a large percentage of our tourists are
"day trippers." They come to Santa Monica during the day, but do
not stay here overnight. Santa Monica needs to focus its tourist
promotional efforts on increasing the number of overnight guests.
Day trippers (presently 70% of our tourists) spend substantially
less money in Santa Monica than those who stay in hotels (only
11% of our tourism) .
(d)
\n
is
substantially
"underbuilt"
Santa
Monica
terms of hotels. We need a variety of new hotels at all price
ranges.
(e) Santa Monica also needs to develop sufficient
meeting space and conference space to attract convention-type
tourist trade.
1 (f) Palisades Park is a crucial tourist attraction.
Santa Monica needs to ensure its availability for tourism by
making tourists and others feel safe in the park.
(g) The LOCE is generally adeauate to accommodate
additional hotel development.
7.
50944/2D30
r.
,
... ......
c
r
,
l
r
-,
.
.
5. Third Street Development Corporation: On May 31st, the
task force was addressed by Tom Carroll, Director of the Third
Street Development Corporation ("TSDC"), planning consultant
Woody Tescher, and economist David Wilcox concerning revitaliza-
tion of the Santa Monica Mall.
They emphasized the follo,,"Ting
points during their presentation:
(a) Mr. Carroll perceives the TSDC' s overall role as
facilitating joint efforts by the City and the private sector to
- revitalize the Mall.
(b) The TSDC, in concert with the Ci ty , is in the
process of developing a specific plan for the Third Street Mall.
The basic concepts guiding their efforts are:
(i) Substantially improve the open space area for
pedestrian acti vi ty,
including new furniture,
pa ,ring,
landscaping, lighting and security improvements;
(ii) Establish anchor uses in each block of the
1 Mall. The south end should include one or two department
stores, and the north end should include a hotel. The
middle block should include a mixed use center emphasizing
design and entertainment uses. This mixed use center should
be the central focus of the Mall;
8.
50944/2030
(-
.. ~
("
c
[
(
r
...
r
...
r
'-
.
.
(iii) Office uses should not be permitted at the
street level.
Ground floor uses should be pedestrian
oriented~
iiv} Passageways between the parking structures
and the Mall need to be established.
(c) Preliminary cost estimates
for the proposed
revitalization proqram are $65 million, with $52 million of
- private investment and $13 million of public investment.
Mr. Wilcox believes that of the $13 million of public investment,
at least one-half should come from an assessment district. This
would pay for the additional parking made necessary by the
increased private development.
The balance should come from
public sources which may include:
(i) use of tax increment
monies from Santa Monica Place, (ii) a new redevelopment area for
the Santa Monica Mall to finance improvements, and (iii) the
possible use of general fund monies. Mr. Wilcox also mentioned
that the public space in the Mall has some leasing potential. He
believes that approximately 27,000 square feet of the Mall can be
leased for outdoor activity, thus providing the City with
additional income.
(d) Of the
$52 million of private invest!nent,
approximately $13 million is proJected for private rehabilitation
9 .
50944/2D30
~
(-
. ~ .
(
r
(
(
(
,-
"
.
.
of existing properties, and $39 million for creation of the
"anchor" uses and new space.
(e) Mr. Carroll acknowledged the problems experienced
with the Farmer's Market by Mall merchants, and said the TSDC is
trying to address these problems.
6.
Oceanside Economic Development Council: On July 26th,
the task force received a presentation from representatives of
the Oceanside Economic Development Council ("OEDe").
This
included Mr. Richard Carbo, executive director of the OEDC, Ray
Maloy, a real estate developer and chair of the OEDe, and Walter
Gilbert, a member of the Oceanside City Council and the Council
liaison to the OEDe.
They described their organization and
program as follows:
(a) The OEDe is a joint program of the City of
Oceanside and the Oceanside Chamber of Commerce. It is governed
by a ten -per son exeeuti ve committee, ine 1 uding bo th pub lie and
private sector representatives,
and a 3S-member board of
dir~ctors. The OEDC also has a public sector advisory eo~mittee
consisting of the City Manager, the Development Director, the
City Attorney, the Public Services Director, the Harbor Superin-
tendent, and the Water and Sewer Superintendent.
10.
50944/2D30
L
(.
.
.
(b) The OEDe's overriding goal is to improve the
(
quality of life in Oceanside by pursuing five obJectives:
(i) Retention/attraction of quality businesses
,
.
,
and industry;
(iil Creation of additional Jobs for an expanding
(
population;
(iii) Broadening of the City's tax base;
c
(iv) Expanding sales tax revenues; and
r
'\.
(v) Improving the image and business climate of
Oceanside.
,
\.
(c) The OEDC's program consists of the following
elements:
(i) Encourage existing Oceanside businesses to
~ remain and expand in Oceans ide.
This is acco1'1.plished bv
monthly meetings between businesses and OEDC leadership
(public and private sectors):
(ii) Attract quality new employers through an
aggressive and selective marketing strategy.
Mr. Darbo
11.
50944/2D30
.
-.
. ....
~
regularly contacts prospective businesses and explains the
benefits of relocating in Oceanside;
(iii) Improve Oceanside's image in the business
community. This is accomplished by regularly presenting to
governmental leaders the viewpoints of the private sector
regarding City policies and procedures affecting the
business community.
fd) The OEDC's budget for fiscal year 1985-1986 is
$113,500.00. 585,000.00 is supplied by the City of Oceanside and
$25,000.00 represents membership dues (one-third of which is paid
to the Chamber of Commerce).
(e) All three speakers generally agreed that the OEDC
has assisted Oceanside qreatly in improving its business climate.
It was apparent that City Councilmember Gilbert had changed
significantly in his attitude toward business development because
of his participation on the OEDC executive committee.
p (f) OEDC avoided taking positions on specific private
development projects being considered by the City of Oceanside.
The benefits produced by the OEDC are more indirect. It has
affected the overall climate within which decisions are made,
rather than directly intervening in the proiect approval process.
12..
50944/2D30
~
.
.
7. William Brantley: On September 13th, local architect
Bill Brantley addressed the task force concerning housing
development issues in Santa l-ronica. Mr. Brantley stressed the
following themes during his presentation:
(a) A review of City housing policies and programs,
including the City'S housing element, indicates a lack of
coherence and coordination of City housing policies. It is
apparent the City has not carefully considered the cumulative
impact of its housing policies on the private housing development
market.
(b) As a result, Santa Monica has reached a
"stalemate" on housing development issues. Virtually no private
housing development is occurring in Santa Monica.
(c) We need a thorough review of Santa Monica's
policies and practices affecting private housing development.
This review should be conducted by a broad-based task force or
committee representing all segments of the community. The goal
shoUJld be to develop a consensus set of housing policies that
will accommodate a reasonable amount of private housing
development.
13.
50944/2D30
r.
.
.
B. Large Business Survey:
During the past eight months, private sector members of
the task force conducted interviews of the chief executive
officers of major businesses located (or formerly located) in
Santa Monica.
In order to encourage frank discussion and
comments, we agreed to keep the identity of the companies and
individuals confidential.
.:
The common themes emerging from this interview process
were as follows:
1. A high quality of lite is the most important
ingredient in maintaining and attracting businesses to Santa
Monica. Santa Monica generally rates high in terms of quality of
life.
Top level executives are attracted to Westside housing
because of the climate and other cultural amenities.
However,
lack of affordable housing for middle to high-level management
and employees represents a significant problem.
,.
"
2.
There is an urgent need for consl.stent, predict-
ahle City requirements concerning zoning and land use.
3.
Improved
communl.cation
would
greatly
assist
economic development in Santa Monica. Communication needs to be
improved between the business and residential com."llunities, and
14.
50944/2D30
~.
.
.
between the business community and public officials.
Santa
Monica needs to establish regular, ongoing forums for this
communication.
r
.
4.
An economic development strategy for Santa Monica
should emphasize hotels and tourism, beach front improvement and
improvement of the downtown business district.
s. Attitudes towards the general business climate
range from hostile to fairly positive. It was generally agreed
that "outsiders" feel more negative and fearful about the Santa
Monica business climate than businesses already established in
the City..
Other, more specific comments made during the interview
process included:
1. Adoption of a new comprehensive zoning ordinance
implementing the LUCE should be a top Cit~ priority.
It
2.
City staff should be allowed to approve normal
development applications if they are proceeding within the zoning
rules established by elected officials.
3. One defect with the LUCE exaction formula is that
it is not comprehensive. It does not include parking, traffic or
15.
50944/2D30
) .
(:
(
(
(
(
(
(
(
,
~
.
.
~
.
anything else other than housing and recreation. This should be
corrected.
4. Santa Monica has enormous natural assets, but
unfortunately its image is poor due to the retroactive imposition
of the building moratorium in 1981 and the City's general anti-
business image. It would be helpful to have newspaper articles
published concerning Santa Monicals improving business and
development climate.
5.
We need more and better public meeting facilities
in Santa Monica.
c. Small Business Survey:
In April, 1985, the task force conducted a written
survey of a random sample of Chamber members. The questionnaire
received a good response from a cross-section of Chamber members.
The results of the survey may be summarized as follows:
r
1. The most important factors in deciding to locate
their businesses in Santa Monica were, in order, {il proximity to
the ocean/good climate:
schools
(il) qood
and hospitals:
(iii) ample office space, and (iv) a strong retail market.
16.
50944/2D30
(-
(
r
\.
(
(
(
...
(.
r
....
. .
~
.
.
.
2. Acrimony between the City and the business
community ranks as the primary reason why those surveyed believe
business would decide not to locate in Santa Monica.
Other
reasons ranked prominently included the high expense of rental
space, high fees and taxes, insufficient customer base and the
limited number of employees available.
3.
In response to an .open-endedll question concerning
what the City should do to attract more business, the following
responses ranked highly:
(i) More effectively address the vagrant problem;
(ii) Improve relationships between the City and
business community;
(iii) Make housing available for employees of new
businesses locating in Santa Monica;
liv) Adopt predictable land use and development
r policies;
(v) Encourage business representation on City
,
boards and commissions.
17.
50944/2D30
(-
(
(
(
(
(
(
f
\.
."
.
.
Perhaps the most representative comment was this:
"Major investment will depend on stability.
The political
climate in Santa Monica so far has failed to create the stability
and confidence which will encourage this. Investors in general
are still shunning our City.
We feel great damage has been
inflicted on our town and it is going to take a long time to
recreate the lost confidence."
D. Economic Development Proqrams in Other Communities:
In April and May, 1985, the task force conducted a
written survey concerning economic development programs in other
communities. The results of this survey may be summarized as
follows:
1. Although the responses to this survey were
diverse, the common thread in every successful program is that it
consists of a City/Chamber partnership.
Purely private sector
programs are not as successful as ;oint public/private sector
programs.
2.
The budgets range from $0 to $113,500.00.
The
average budget was $45,000.00.
18.
50944/2D30
(.
(
(
(
(
(
(
,
I..
It
!T
.
.
. .
3. The overwhelming majority of the individuals
serving on the committees were from the private sector.
All
committees had some representatives from the pUblic sector.
4.
Most cities funded their progr~~s on a )oint
public/private basis. The Oceanside program, which appears to be
one of the more extensive programs, receives 80% public funding.
5.
The responses were split evenly on whether the
committee participated in decision-making on particular develop-
ment projects.
6.
Most committees performed marketing and public
relations functions with the local media, and many disseminated a
newsletter to potential developers and businesses on a regular
basis.
7. Most respondents believed their programs had a
positive impact on public policy, were moderately successful in
attracting new business, and had a positive impact on public
1
attitudes towards economic development. The economic development
programs were generally seen as facilitating better communication
between public and private decision-makers.
19.
50944/2D30