Council Update: Montana Turns to City to Cash in on Boom

By Teresa Rochester

As the Third Street Promenade, the Pier and Main Street flourish during the city's current economic boom, the hip strips' equally trendy northern sister, Montana Avenue, has floundered.

Armed with a possible answer, business owners went before the City Council Tuesday night for help.

In a unanimous decision, the council voted 7 to 0 to allow Montana Avenue's 26-year-old business improvement district to increase the assessments levied on business owners between 6th Court and 17 Street.

Members of the Montana Avenue Merchants Association said the extra cash - approximately $81,000 a year -- will go toward beefing up advertising and promotion of the street in the hopes of luring more tourists to the high-end shopping area.

According to numbers provided by the Santa Monica Convention and Visitor's Bureau, sales tax receipt revenue grew by 7.5 percent in the city, while Montana Avenue merchants only saw a 2.4 percent increase.

Shop owners said the advertising blitz -- which may include radio, television and newspaper advertisements and presence in several magazines available in hotels -- is aimed at luring tourists, who tend to stay close to their hotels south along the ocean. Shop owners also said they are looking at ways to provide transportation to the street for tourists.

Merchants said that with rents along the hip street skyrocketing, the extra foot traffic will help save the mom and pop feel of the street, which is mostly frequented by nearby residents, who also will be targeted in the campaign.

"We don't want to become 'Gapized,'" said Dr. Mike Groming, co-chair of the merchants association. "In terms of the tourist industry, that wasn't the focus of the fund. Most of our people do come from a fairly close radius. It isn't just a focus on tourism. It's more of a shotgun approach."

Under the new plan retail business owners will be assessed on a sliding scale with a maximum annual assessment of $1,000. Non-retail businesses would continue to be assessed $80 a year if they gross more than $20,000 a year and $40 a year if they make less. The formula mirrors the assessment schedule of the city's other business improvement business.

Not all business owners were happy with the new increased assessment. Several pharmacy owners said they would not benefit from the exposure. City and merchant association officials disagreed.