BAYSIDE BUSINESS: Steady Trends

By Ed Moosbrugger

This monthly column was launched almost two years ago with the headline “Change, Change, Change” to reflect the rapidly shifting scene in Downtown Santa Monica. Well, it appears that the more things change the more they stay the same.

Most of the hot topics then are still in evidence.

In May 2001, it was noted that clothing stores were proliferating on the Third Street Promenade, while some restaurants were being forced out by high rents.

Apparel stores continue to dominate among new stores opening on the popular shopping strip, with American Eagle Outfitters, Victoria’s Secret, United Colors of Benetton and Levi’s being among the latest to open or sign leases.

Meanwhile, restaurants continued to depart the Promenade, prompting the City to slap a moratorium on conversions of restaurants to retail space while a taskforce studies how to balance uses.

Several restaurants have opened on streets surrounding the Promenade, however, which was another trend noted in 2001.

Two years ago, many independent businesses were leaving the Promenade as demand from chains helped push up rents. Nothing has changed in that regard, as evidenced by the Promenade’s loss of two independent bookstores that are known throughout Los Angeles.

However, both intend to remain Downtown. Hennessey & Ingalls will move around the corner to Wilshire Boulevard this summer, while Midnight Special Bookstore is said to be close to signing a lease around the block from the Promenade storefront it occupied for a decade.

While some independent merchants forced off the Promenade have been able to relocate nearby, others have been less fortunate.

City officials have expressed concern for some time about the loss of independent businesses from the Promenade, but the situation hasn¹t gotten any better because Promenade rents have stayed high.

Two years ago, Downtown was suffering some of the consequences of growth, including traffic and parking problems. That¹s still the case, but the City is acting to deal with the parking situation by pursuing a $92.5 million plan to expand some of the existing parking structures and build new ones.

That Downtown parking improvement program, which would provide a net increase of about 1,712 parking spaces, is going through the Environmental Impact Report (EIR) process. In addition to City reviews, the parking project will need California Coastal Commission approval.

In the past two years, Downtown has undergone inconveniences that go with almost nonstop construction activity. Things have calmed down a bit recently, especially with completion of the Transit Mall, but that doesn’t mean everything is quiet.

Work is still underway on new buildings and remodeling projects, and activity should step up over the next few years with construction of the new Main Library, work on parking structures and plans for a major redevelopment of Santa Monica Place.

Revitalization of the 1980s era Santa Monica Place building should take center stage soon among important Downtown developments to keep an eye on over the next few years.

THE AMERICAN FILM MARKET (AFM) boosted its attendance by about 1 percent at this year’s eight-day trade show in Santa Monica. Attendance increased to 6,827 people this year from 6,738 in 2002.

The February event, which was held in Santa Monica for the 13th consecutive year, draws buyers and exhibitors from the AFMA, a trade group for the independent film industry.

A total of 593 buying companies registered for AFM this year, up from 588 in 2002, although the number of individuals registered as buyers fell 1.5 percent to 1,302.

Countries with big increases over last year included Switzerland (up 42 percent), Mexico (up 20 percent) and Spain (up 19 percent). Major countries showing declines from 2002 were the United Kingdom (down 20 percent) and Germany (down 13 percent).

In what should be considered good news for Santa Monica¹s image, AFM reported that this year’s market made a strong media impact with 480 registered journalists from more than two dozen countries.

In addition to the nearly 7,000 who attended AFM, more than 3,000 people registered for the Premiere Screenings series, offered free to industry members and Santa Monica residents.

SANTA MONICA HOTELS started out 2003 on a mixed note, with the hotel occupancy percentage staying flat, but the average room rate rising.