By Ed Moosbrugger
September 17, 2009 -- It may be hard to believe today, but there was much skepticism about whether the transformation of the troubled outdoor Santa Monica Mall into the Third Street Promenade would be successful.
It took people with vision, including some pioneering property owners and businesses, to get things moving.
While some people saw only a troubled shopping street that was virtually dead at night, others saw the potential for revitalization of an area just blocks from the beach in an attractive community on the affluent Westside.
To someone who has covered Downtown’s Third Street from the opening of the three-block Santa Monica Mall in 1965, to the grand opening of the revitalized, renamed Third Street Promenade in September 1989, to the ups and downs of the past 20 years, it’s clear that several ingredients have been key to the economic success of the Promenade.
One of the most important steps was the City’s creation of the Third Street Development Corp. (predecessor of the Bayside District Corp.) 25 years ago to guide the development, operation and promotion of the Promenade.
No such ongoing direction existed for the Santa Monica Mall, which contributed to its decline.
The Bayside District Corp. has been vital because actions have been necessary over the past 20 years to keep the area competitive and help spread the success to surrounding streets.
Following are some of the other factors that, in combination with an attractive design, have helped the Promenade succeed.
• The Santa Monica City Council decided to limit new movie theater development to the Third Street Promenade. The three new multi-screen theaters that opened in 1989 and 1990 brought large crowds Downtown, setting the stage for new restaurants and retailers.
• The development of a plan for the Promenade and the City’s commitment to the revitalization helped give businesses and property owners confidence to invest.
• A little bit of luck helped, including the decline of Westwood Village in the late 1980s because of crime concerns. Santa Monica became a hot new venue for people seeking a better alternative.
• The Promenade benefited from, and contributed to, the expansion of Santa Monica's visitor industry.
• Outdoor dining and street performers added to the atmosphere.
The Promenade also owes part of its success to steps taken many years earlier, including construction of the City parking structures on 2nd and 4th streets.
It has been somewhat of a balancing act on the Promenade from the beginning.
Although the City in 1987 concentrated new movie theater development Downtown it set limits to avoid repeating Westwood’s experience. After the three new theaters were announced, Thomas H. Carroll, then executive director of the Third Street Development Corp., said the City didn’t want any more.
For a while there was concern that there weren't enough quality retail stores to provide a balance to the restaurants and entertainment venues. But later, after retailing took off, there was concern that many restaurants would be forced off the Promenade by high rents. The City stepped in with restrictions on conversions of restaurants to stores.
One thing that is out of balance now is the mix of chain and independent stores. Chains dominate the Promenade. Few independents remain, although some have relocated to surrounding streets.
Among restaurants, the balance is much better in favor of independent operators, providing a much-needed unique flavor on the Promenade.
Looking forward, the Promenade will continue to face challenges, including new competition.
About the only certainty is that things will change. Very few of today’s tenants were on the Promenade when it was dedicated 20 years ago.
