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Working Group Takes Major Steps in New Downtown Management Plan

By Jorge Casuso

February 19 -- It’s not often that a tearsheet from a public meeting is signed and hailed as a manifesto. But that’s what happened at a meeting last week of the working group hammering out a new management plan for the Downtown.

More than a year in the works, the plan seemed to come together at Wednesday’s meeting, as working group members unanimously agreed on a number of key points, including the makeup of the new board that will run the proposed assessment district.

“This was huge,” said Brad Segal the consultant helping Bayside officials put together the new plan. “Governance has probably been the number one issue in this deal.”

But if there was general agreement on key issues, several new concerns were raised after Bayside officials met with some of the major stakeholders who will help bankroll the $3.7 million in new assessments.

“These guys must be on board, otherwise, this goes nowhere,” said Segal who heads Progressive Urban Management Associates, Inc. “They are receptive. They want another meeting.”

The main concern aired by the stakeholders was the length of time the new assessment district would be in place -- 20 years.

Major property owners who would be levied the biggest assessments ideally wanted the new district to be in place for only five years, but would likely accept ten, Segal told the working group.

“This is an important issue to them,” Segal said.

After a short debate, the working group unanimously agreed to retain the proposed 20-year district, but to require a vote by the property owners after ten years to determine if the district should continue.

The working group also took up concerns by some hotel representatives who worry that competitors outside the district would benefit from the $1.3 million “ambassador program” to inform visitors and help keep the streets safe and $500,000 in additional marketing bankrolled by the assessments.

The group floated the possibility of structuring a new “business license tax mechanism” that would help them pay for the “tangible benefits.”

“Obviously, there’s a big benefit to the hotels,” said Bill Tucker, a Bayside Board member who sits on the working group.

But the biggest step taken by the group Wednesday was agreeing on the make-up of the new 11-member board, six of whose members would be appointed by the City Council, six by the property owners and one by the City Manager.

According to what Segal referred to as “the manifesto,” the board will be composed of a mix of Downtown property and businesses owners and Downtown and Santa Monica residents. The full board would make informal recommendations to the City Council and property owners on possible appointments.

Under the plan, there also would be representatives on the board from each of the three zones of the proposed district, which stretches from the east side of Ocean Avenue to the east side of 7th Street and from the north side of Wilshire Boulevard and the 10 Freeway.

The proposed district -- divided into a zone comprised by Third Street Promenade; a zone along 2nd and 4th streets and Ocean Avenue and one between 5th and 7th streets -- includes restaurants, hotels, offices and, perhaps, apartment buildings.

Under the proposed plan, assessments would be based on the property’s size, location and type of use.

A property on the thriving Third Street Promenade would pay the most at 88¢ a square foot, properties on neighboring 2nd and 4th streets and Ocean Avenue would pay 44¢, while those on 5th to 7th streets would pay 22¢.

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“This was huge.” Brad Segal

 

 

“Obviously, there’s a big benefit to the hotels.” Bill Tucker

 

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