Local Economy Turns Corner, Officials Say

By Jorge Casuso

Jan. 8 - Santa Monica cash registers rang more often during the third quarter of last year than during any other quarter since 2000, a signal City officials believe marks a turning point in the slumping local economy.

According to the latest figures released this week, third quarter sales last year showed a 1.3 percent increase over the same period in 2001, a trend City officials hope will continue despite a 3.2 percent drop if the first two quarters of last year are factored in.

"I think we've turned the corner," said Gwen Pentecost, senior economic analyst for the City's Economic Development Division. "In total dollars, more goods were sold across the city than in any quarter since 2000.

"We expect this to continue," Pentecost said. "I see some good, solid strength."

The sales hike was evident nearly everywhere but Colorado Avenue, where sales plummeted 19.7 percent; Olympic Boulevard, where it dropped by 4.1 percent, and Downtown, which saw a miniscule .1 percent drop in the third quarter.

At Santa Monica Place sales dropped 3.4 percent in the quarter, while the Third Street Promenade saw a 3.1 percent drop. The sales dip Downtown, especially along the Promenade, was likely due to vacancies, some of which have been filled, Pentecost said.

The larger sales drops along the Olympic and Colorado high tech corridors may have been due the closure of a business or two or companies paying their taxes late.

The areas, Pentecost said, "are small enough that it takes only a small number of businesses paying late to throw it off."

The city's Business Improvement Districts saw a marked hike in sales, which rose 16.1 percent on Montana Avenue, 8.2 percent on Main Street and 7.1 percent on Pico, the City's newest BID.

"The BIDs are showing some really nice figures," Pentecost said. "They're holding steady. They're showing some improvement, and they're doing a good job."

Sales along Ocean Avenue -- including the pier and hotels -- were up 2.8 percent and 5 percent along Broadway. Sales on Santa Monica Boulevard, which have been rising due to special bargains at auto dealerships, rose by 1.1 percent.

In the industrial corridor on the south side of town sales also increased, with a 3.7 percent hike in the Airport area and a 1.7 percent increase along Ocean Park Boulevard.

Sales spiked 17.9 percent on Lincoln Boulevard and 16.8 percent on Wilshire, in part due to a resurgence in the sale of electronics, Pentecost said. The trend may be due to business to business sales, as companies that weathered the economic downturn invest for the long haul.

"I see businesses starting to invest," Pentecost said. "I think this (the downturn) has been going long enough that those who are going to stay know they are going to stay.

"They're hanging in there, working hard, and they're succeeding," she added. "This will get better."