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City of Santa Monica

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Circuit City, KB Toys - Closing All Stores. Foot Locker Stores Closing or Closed: 140 ... Rapidly decreasing new auto sales/leases (over 20% of City sales taxes) ... – PowerPoint PPT presentation

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Title: City of Santa Monica


1
City of Santa Monica
  • The state of the City

2
Fear vs. Optimism
3
National State EconomyEconomic Turmoil
3
4
Economic Outlook - National
  • National economy more than one year into a
    recession that is possibly the worst since World
    War II
  • National unemployment rate rising, weak retail
    sales, housing markets downturn entering fourth
    year, loss of wealth from stock market declines
  • Economy may remain in fragile state at least
    through the end of 2009 with unemployment
    continuing to rise into 2010

5
Unemployment
Source CNN 1/27/09
5
6
Retails Changing FaceMervyns, Sharper Image,
Linens n Things, Circuit City, KB Toys -
Closing All Stores
  • Foot Locker Stores Closing or Closed 140
  • Gap Inc. Stores Closing or Closed 85 Zales
    Stores Closing or Closed 105
  • Dell-Stores Closing or Closed 140
  • Home Depot Stores Closing 15
  • CompUSA Stores Closing or Closed 103 Pier 1
    Imports Stores Closing or Closed 25 Rite
    Aid-Stores Closing or Closed 28
  • Ann Taylor-Stores Closing or Closed 117
    Disney-Stores Closing or Closed 98 Sprint
    Nextel Corp. Stores Closing or Closed 125
  • Macys Closing or Closed 11 (one in So.
    California)

7
Economic Outlook State
  • Budget deficit at least 15 billion this year
    could be over 42 billion by end of FY 09-10
  • State Controller projects State will run out of
    cash by Feb. 2009 unless action taken
  • IOUs for tax refunds
  • Work stoppage on public works projects

8
Economic Outlook State
  • December unemployment rate of 9.3 is highest in
    15 yearsincrease to 10 or 11 possible and long
    slow recovery ahead
  • State shifted over 4 million from RDArising
    deficit could mean permanent/deeper shift, Prop
    1A borrowing from local jurisdictions and other
    takes

8
9
Economy Local Outlook
  • Local economy, while diversified, not immune to
    economic downturn
  • Sales taxes declining
  • Rapidly decreasing new auto sales/leases (over
    20 of City sales taxes)
  • Temporary closure of Santa Monica Place
  • Weakening tourism and falling hotel occupancy
    rates

10
Economy Local Outlook
  • Global recession fears weakness could last
    through 2009 in US and 2010 in CA
  • Property values up over 9 in FY2008-09, but
    lower increases in future years expected
  • Office vacancy rate increasing while lease rates
    are decreasing
  • Investment earnings are declining due to record
    low interest rates

10
11
Economy Local Outlook
  • Recession could also affect parking-related
    revenues
  • Measure "SM" passed on November 4
  • 8.2 million previously designated by Council to
    protect against loss of UUT will now be
    designated to help protect the City from impacts
    of the changing economy and any sudden loss in
    revenues

12
Local Unemployment is Increasing
  • City unemployment rates have historically
    remained well below the County of Los Angeles and
    the State of California but have increased

Comparative Unemployment Rates
December
Source State of California Employment
Development Department
13
Property Tax Revenue Growth Based on Strong
Assessed Value Growth
Source Los Angeles County Auditor-Controller
14
Property Transfers
Source County of Los Angeles Registrar Recorder
15
CSM Building Permits/Valuation
Source City of Santa Monica Building and Safety
Division
16
Diversified Tax Base
Source City of Santa Monica FY2008-09 Adopted
Budget
17
City Sales Tax Receipts Key Retail Sectors
Source HdL
18
Retail Sales WeaknessQ3 2008 Compared to Q3 2007
Source HdL
19
Santa Monica TourismLodging Rental/Occupancy
Rates
October
Source PKF Consulting
20
Average Room Rates-Various CitiesNovember 2008
21
High Demand for Office Space
  • Office vacancy rate has risen to 12 (average for
    the Los Angeles market area is 12.2)
  • Asking rents still highest in the region

Source Grubb Ellis Research
22
Budget Gaps
23
Symbiotic Relationships
  • Auto Dealers proposed use of Civic Center
    Parking Garage during high capacity periods
  • Solar Santa Monica
  • City Policy and Ocean Avenue Restaurant

24
Santa Monica Place
24
25
Santa Monica Place
26
Civic Center Development
  • Civic Center planning will focus on moving
    forward with a design and implementation plan for
    the public improvements including
  • New parks and open space, revitalization and
    reuse of the Civic Auditorium
  • Development of the planned early childhood
    education center with Santa Monica College
  • Refinement of the bridge, roadway and pathway
    plans that will connect the Civic Center to the
    downtown and surrounding neighborhoods
  • Plan would provide us with the opportunity to
    interface with Samohi Master Plan

27
Expo Line
  • Phase 2 - improve mobility between Culver City
    and Santa Monica by bringing light rail from
    Downtown to the beach
  • Exposition Light Rail Line is accelerating after
    passage of Measure R
  • Service on Phase 2 line is anticipated to begin
    by 2015

28
Annenberg Community Beach House
Sited on a 5-acre beachfront property, this
public beach club will have event, meeting and
recreation space to provide the ultimate day at
the beach experience. Construction is 80
complete, projected opening April 2009. More
information available at www.beachhouse.smgov.net

29
Measure V Update
  • The City has retained program managers to help
    expedite the delivery of Measure V Projects 
  • Measure V capital and financing plan to be
    presented to Council in February
  • Pier Storm Drain Improvement Project highest
    priority
  • Preliminary Design Work Complete
  • Bidding Process Complete
  • Construction Awarded on January 27

30
Other Long-Term Projects
  • Downtown parking enhancements
  • Complete Big Blue Bus campus expansion
  • Begin construction of new water treatment
    facility for Charnock Wells
  • Affordable Housing

31
Federal Economic Stimulus Package
  • Congress passed a 819 billion economic stimulus
    plan - goal to have it signed into law by
    mid-February
  • Working with Congressman Waxman, Senators
    Feinstein and Boxer
  • Access DC Trip March 9-12 Southern CA on the
    Hill

32
Federal Economic Stimulus Package
  • Key - needed Santa Monica Projects that are
    shovel ready
  • California Incline Replacement of bridge
  • Palisades Bluff stabilization Installation of
    water drainage pipes and other measures to
    stabilize the bluff
  • Pier Bridge Widening Infrastructure
    Improvements Replacement of bridge between
    Ocean Ave and Pier deck, structural upgrades and
    deck replacement
  • Street, Alley projects Resurfacing of various
    streets and alleys citywide

33
Light at End of Tunnel
  • Santa Monica should lead real estate recovery as
    one of the first cities to pull out of the
    recession
  • Tourism and hotel occupancies have also rebounded
    first

34
Summary
  • Seek symbiotic relationships that will benefit
    our community
  • Stimulate local economy by implementing Capital
    Projects
  • Seek ways to reduce City expenditures without
    negatively impacting services
  • Aggressively pursue federal funds allocation from
    the 819 billion stimulus package

35
When you are going through hell,
Keep Going!
Winston Churchill
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