REAL ESTATE & BUSINESS
INSIDE SCOOP
REAL ESTATE 101
THE REAL DEAL POLANSKI LAWYER WINS STAY OF HEARING PAGE 3 WHO DOESN’T LIKE FREE STUFF? PAGE 7 WEDNESDAY, JANUARY 21, 2009
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Volume 7 Issue 370
Santa Monica Daily Press OBAMA’S L.A. ROOTS SEE PAGE 3
Since 2001: A news odyssey
THE NEW DAY ISSUE
City Hall expects tough times ahead BY MELODY HANATANI Daily Press Staff Writer
CITY HALL The recession is starting to catch up locally. A city government that for a long time was insulated from the economic downturn, shielded by a diversified tax base, is starting to see some alarming trends taking place, jeopardizing its once reliable revenue stream. The combination of declining sales tax, an increasing office vacancy rate and weakening tourism industry, is forcing city officials to take an even more proactive plan-
ning approach to the budget, which in just five years is projected to have an estimated $24.3 million deficit. The bleak financial forecast was recently presented to the City Council just as officials began developing the budget for the 2009-10 fiscal year, preparing for a challenging time in which hotel bed taxes and business license taxes will be expected to go down. The assumptions were based on officials’ best estimate of where revenues will end up given the current economy. The biggest culprit in the current predicament could be new auto sales, which account for more than 20 percent of city
occupancy taxes declining. “The economic downturn is global in nature and that means we aren’t seeing as many foreign visitors as we have in the past,” Swindell said. A modest recovery period is expected beginning in the second half of the next fiscal year, continuing thereafter as new hotels are expected to come online. Councilmember Bob Holbrook added that he had recently learned of an affordable hotel in Santa Monica that is now averaging an occupancy rate of roughly 50 percent,
sales taxes but is down 18 percent. “We anticipate this will continue to impact us this fiscal year and into the next,” Carol Swindell, the City Hall finance director, said. The closing of Santa Monica Place about a year ago continues to show its impact on city revenues, which is about $1 million less in sales taxes than if the mall remained open. Officials predict a jump of about $2 million in sales tax revenue after the mall reopens in fall 2009. “It will serve as a catalyst for other economic activity in the city,” Swindell said. Tourism is also taking a hit with hotel
SEE ECONOMY PAGE 8
New government affairs director joins chamber BY MELODY HANATANI Daily Press Staff Writer
DOWNTOWN When Brian Chase joins the Chamber of Commerce on Thursday as the new government affairs director, he will come at a time when the business organization is enjoying a relatively strong relationship with city officials. It’s for that reason why the chamber created the position more than two years ago when it hired Samantha O’Neil to improve the partnership between the two entities after it had gone sour due to political differences. She will be replaced with a new director who has a CHASE background in various levels of government, once serving as an intern to L.A. City Councilmember Greg Smith and Gov. Arnold Schwarzenegger. A 2005 graduate of USC where he received a bachelor’s degree in public policy management and planning, Chase has spent the past few years as a traveling water treatment consultant for Nalco Co. SEE CHAMBER PAGE 9
Byron Kennerly news@smdp.com
A HISTORIC MOMENT: Santa Monica City Hall staffers react to the inauguration of President Barack Obama on Tuesday morning.
Inaugural fever comes to Santa Monica BY ROB LAWRENCE Special to the Daily Press
MID-CITY Grace Millington and Esther Cameron couldn’t believe their eyes. With scenes of Barack Obama’s inauguration flickering on a giant screen at the Broad Stage, both women were “beyond thrilled” that the new president officially took office. “The only thing I remember similar to this is [John F.] Kennedy’s funeral,” Millington said. “It was a very solemn time, the nation was united, like it is now. I’m
Gary Limjap
almost in tears.” The audience — about 100 people — did not hold back their emotion as they constantly exclaimed in delight and displeasure at the characters coming into view. As the incoming and outgoing first ladies approached, Michelle Obama received a huge applause from the audience while someone remarked “poor Laura!” George W. Bush was booed and hissed at by the crowd. “No more Bush!” a man shouted at the screen. “Adios!” remarked another woman.
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SEE INAUGURATION PAGE 9
SMALL BUSINESS STARTUP? TAXES • BOOKKEEPING • CORPORATIONS
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As Dick Cheney was brought out in a wheelchair people laughed and mocked him. When Obama finally took the stage the audience gave him a standing ovation. After the 44th president took the oath of office the viewers embraced complete strangers, laughed, cried, and screamed with joy. People took out their cell phone’s and digital camera’s to photograph the event, perhaps to make sure it was actually happening. “That’s the new president,” a young
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